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Nidec Corporation
Third Quarter Fiscal 2022 Results
Three and Nine Months Ended December 31, 2022
January 24, 2023
Disclaimer Regarding Forward-looking Statements
These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.
The first slide features NATS-1000 launched by Nidec-Read.NATS-1000 is a fully automatic inline semiconductor inspection equipment to test the functions of automotive IGBT (insulated gate bipolar transistor) /SiC (silicon carbide) modules. Nidec uses NATS-1000 to inspect semiconductors supplied to Nidec Group, including those for its traction motor system E-Axle.
Please refer to Nidec's website for more information. https://www.nidec.com/en/product/news/2022/news1223-01/
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Consolidated Profit/Loss | This slide includes forward-looking statements. See Disclaimer on Page 2. | ||||
Millions of Yen, except | Q3/FY2021 | Q3/FY2022 | FY2022 | ||
for percentages, EPS, | Change | ||||
(Apr-Dec) | (Apr-Dec) | Forecast | |||
and FX rates | |||||
Net sales | 1,407,210 | 1,699,747 | +20.8% | 2,200,000 | |
Operating profit | 133,487 | 124,404 | -6.8% | 110,000 | |
Operating profit ratio | 9.5% | 7.3% | - | 5.0% | |
Profit before | 129,410 | 141,944 | +9.7% | 120,000 | |
income taxes | |||||
Profit attributable to | 99,312 | 104,077 | +4.8% | 60,000 | |
owners of the parent | |||||
EPS (Yen) | 169.73 | 180.72 | +6.5% | 104.24 | |
FX rate (Yen/US$) | Assumed for Q4: | ||||
Average: | 111.10 | 136.51 | +22.9% | Yen/US$: 110 | |
Term end: | 115.02 | 132.70 | +15.4% | Yen/Euro: 125 | |
Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY2022 is estimated to have | |
an annualized impact of 10.0 billion yen and 1.9 billion yen on net sales, respectively, and 1.1 billion yen and 0.4 billion yen on operating profit, respectively. | 3 |
Summary of Q3/FY2022
- Nine months net sales stood at record high of ¥1,699.7 billion, 20.8% higher Y/Y.
- Nine months operating profit decreased 6.8% Y/Y to ¥124.4 billion.
- Nine months profit before income taxes and profit attributable to owners of the parent increased 9.7% Y/Y to ¥141.9 billion, 4.8% Y/Y to ¥104.1 billion, respectively. Both stood at record high.
- Implementing WPR-X, the drastic reform on profitability, to tackle recent deteriorations of market environments with aims to reduce the fixed cost significantly and to make a V-shapedrecovery in FY2023.
4
Revision to FY2022 Annual Forecasts
This slide includes forward-looking statements. See Disclaimer on Page 2.
Revision to FY2022 annual forecasts based on Q3 results and Q4 demand outlook
Millions of Yen, | FY22 Forecasts |
except for | |
(As of Apr. 21, | |
percentages, EPS and | |
2022) | |
FX rates | |
Net sales | 2,100,000 |
Operating profit | 210,000 |
Operating profit ratio | 10.0% |
Profit before | 206,000 |
income taxes | |
Profit attributable to | 165,000 |
owners of the parent | |
EPS (Yen) | 286.65 |
FX rate (Yen/US$) | 110.00 |
(Assumed for full-year) | |
FY22 Forecasts
(As of Jan. 24,
2023)
2,200,000
110,000
5.0%
120,000
60,000
104.24
110.00
(Assumed for Q4)
1H/FY22
1,130,767
96,368
8.5%
118,375
86,649
150.31
133.97
(Average rate)
Q3/FY22
(Oct.-Dec. 2022)
568,980
28,036
4.9%
23,569
17,428
30.32
141.59
(Average rate)
Q4/FY22
(Jan.-Mar. 2023)
(Forecast)
500,253
-14,404
-2.9%
-21,944
-44,077
-76.39
110.00
(Assumed for Q4)
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Year-on-Year Changes (Nine Months Ended Dec. 2022)
(Billions of Yen)
+221.3 | +56.7 | +56.1 | +8.5 | ||||||||
-41.3 | -8.8 | ||||||||||
1,407.2 | 1,699.7 | ||||||||||
Apr-Dec/FY21 | Exchange | Small Precision | Automotive | Appliance, | Machinery | Electronic | Apr-Dec/FY22 | ||||
Rate | Motors | Products | Commercial | and Optical | |||||||
and Industrial | Components | ||||||||||
Products | and Others | ||||||||||
(Billions of Yen)
+20.7
-14.5 | +7.5 | +4.9 |
-11.2 | -3.1 | -1.9 |
-11.6 |
133.5
124.4
Apr-Dec/FY21 Exchange | Structural | Small Precision | Automotive | Appliance, | Machinery | Electronic | Eliminations/ | Apr-Dec/FY22 |
Commercial | and Optical | |||||||
Rate | Reform | Motors | Products | Corporate | ||||
and Industrial | Components | 6 | ||||||
Expenses | ||||||||
Products | and Others | |||||||
Quarter-on-Quarter Changes (Three Months Ended Dec. 2022) | |||||||||||
(Billions of Yen) | +16.2 | ||||||||||
+0.2 | |||||||||||
-9.2 | -9.8 | -7.7 | -11.2 | ||||||||
590.4 | 569.0 | ||||||||||
Jul-Sep/FY22 | Exchange | Small Precision | Automotive | Appliance, | Machinery | Electronic | Oct-Dec/FY22 | ||||
Rate | Motors | Products | Commercial | and Optical | |||||||
and Industrial | Components | ||||||||||
Products | and Others | ||||||||||
(Billions of Yen) | +0.9 | ||||||||||
-11.0 | +0.3 | +0.2 | |||||||||
51.7 | -5.6 | ||||||||||
-3.8 | -4.1 | ||||||||||
Q2 Q3 | -0.5 | ||||||||||
28.0 | |||||||||||
Jul-Sep/FY22 | Exchange | Structural | Small Precision | Automotive | Appliance, | Machinery | Electronic | Eliminations/ | Oct-Dec/FY22 | ||
Commercial | and Optical | ||||||||||
Rate | Reform | Motors | Products | Corporate | |||||||
and Industrial | Components | 7 | |||||||||
Expenses | |||||||||||
Products | and Others | ||||||||||
Starting WPR-X | This slide includes forward-looking statements. See Disclaimer on Page 2. |
Started WPR-X, the drastic reform on profitability amid adverse market conditions in the second half of FY2022
Current market situation | |
HDD Motors: | |
(1) HDD market (TAM*) is shrinking rapidly. | |
CY21:259M units→CY22:172M units | |
Small | (decrease by 34% Y/Y) |
(2) Rapid inventory adjustment, especially | |
Precision | |
for nearline HDD in Q3, pressurized | |
Motors | |
profitability in the short term | |
Other Small Precision Motors: | |
Rapid inventory adjustment in IT area, | |
especially data center related. | |
Impact of customers' factories shutdown due | |
to China's zero-corona policy. | |
Automotive | Due to spread of infections caused by |
relaxation of the policy, the utilization rate of | |
our factories have also decreased. | |
Appliance, | Loss of COVID-19 special demand mainly in |
the appliance area throughout the world. | |
Commercial | |
The European market is affected by the | |
& | |
impact of prolonged Russian invasion of | |
Industrial | |
Ukraine. | |
(Sales: Billions of Yen) | (Operating profit ratio: %) |
800 | 20% |
Net sales (LHS)
Operating profit (RHS) | |||||||||||
600 | 590.4 | 569.0 | 15% | ||||||||
540.4 | |||||||||||
511.0 | |||||||||||
496.5 | 500.3 | ||||||||||
463.2 | |||||||||||
433.2 | 433.1 | 447.5 | |||||||||
400 | WPR-X | 10% | |||||||||
10.7% | 10.3% | 10.0% | |||||||||
9.6% | |||||||||||
8.9% | 7.2% | ||||||||||
8.3% | 8.8% | ||||||||||
(Full potential) | |||||||||||
7.2% | |||||||||||
200 | 5% | ||||||||||
4.9% | |||||||||||
0 | 0% | ||||||||||
Q3/FY20 | Q4 | Q1/FY21 | Q2 | Q3 | Q4 | Q1/FY22 | Q2 | Q3 | Q4 | Q1/FY23 | |
(Forecast) |
*TAM: Total Addressable Market | 8 | |
What is WPR-X? | This slide includes forward-looking statements. See Disclaimer on Page 2. |
Tackling the polarization caused by technological innovations in addition to recent tough market conditions
WPR-X :
The drastic reform on profitability
- Economic downturn caused by re-expansion of COVID-19 in China and economic shrink in Europe through prolonged Russian invasion of Ukraine
- Polarization caused by technological innovation exists at the bottom
(Labor)
Human labor | ||
1800 | Present | |
(Industrial | ・Future jobs that will remain or disappear | |
Revolution) | ・Future markets that will remain or disappear | |
(Timeline)
2045
(Singularity**)
Turning point when AI overcomes human levels of intelligence
Technological strength = Cost competitiveness (Technology creates cost competitiveness)
- Expedite development of products that can overwhelm competitors with our technology
- Implement structural reform to reduce fixed costs through automation with our technologies and streamlining operations
Collaboration between 3 bases
Modern | Technology | Skills | |
science | |||
Highly competitive | (Product | (Manufacturing | |
(Product research) | Development) | research) | |
with 20% reduced | |||
weight compared | |||
with 1st generation |
Nidec Research And Development | Nidec Shiga | Nidec Center for Industrial | |
*AI : Artificial Intelligence | Center (Shin-Kawasaki) | Technical Center (Shiga) | Science (Keihanna) 9 |
**Singularity : Technological singularity. Future point when technological evolution breaks conventional social rules. |
Mid-Term Strategic Goal
Vision2025
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Nidec Corporation published this content on 24 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2023 06:36:06 UTC.