FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 333-13896
Supplement For the month of April 2009.
Total number of pages: 58
The exhibit index is located on page 1
NIDEC CORPORATION
(Translation of registrant’s name into English)
338 KuzeTonoshiro-Cho,
Minami-Ku,Kyoto 601-8205 Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F X Form 40-F __
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes __ No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____
Information furnished on this form:
EXHIBITS
Exhibit Number
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: April 24, 2009 | ||||
NIDEC CORPORATION | ||||
By: /S/ Masahiro Nagayasu | ||||
General Manager, Investor Relations |
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NEWS RELEASE
NIDEC CORPORATION
New York Stock Exchange symbol: NJ
Stock exchange code (Tokyo, Osaka): 6594
FOR IMMEDIATE RELEASE
Contact: | |
Masahiro Nagayasu | |
General Manager | |
Investor Relations | |
+81-75-935-6140 | |
ir@jp.nidec.com |
UNAUDITED FINANCIAL STATEMENTS (U.S. GAAP)
RESULTS FOR THE YEAR ENDED MARCH 31, 2009
FROM APRIL 1, 2008 TO MARCH 31, 2009
CONSOLIDATED
Released on April 24, 2009
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NIDEC CORPORATION
Date of Directors’ meeting for financial results: April 24, 2009
Stock Listings: Tokyo Stock Exchange, Osaka Securities Exchange, the New York Stock Exchange
Head Office: Kyoto, Japan
1. Unaudited Consolidated Financial Performance (U.S. GAAP)
(1) Consolidated Results of Operations
Yen in millions (except for per share amounts) | ||
Year ended March 31 | ||
2009 | 2008 | |
Net sales | ¥613,458 | ¥728,756 |
Ratio of change from the previous period | (15.8)% | 18.6% |
Operating income | 51,806 | 77,542 |
Ratio of change from the previous period | (33.2)% | 17.6% |
Income from continuing operations before income taxes | 47,029 | 64,255 |
Ratio of change from the previous period | (26.8)% | (5.0)% |
Net income | 28,353 | 41,156 |
Ratio of change from the previous period | (31.1)% | 3.1% |
Net income per share- basic | ¥197.42 | ¥284.00 |
Net income per share- diluted | ¥194.12 | ¥276.29 |
Ratio of net income to shareholders’ equity | 9.2% | 13.2% |
Ratio of income from continuing operations before income taxes to gross asset | 6.8% | 9.6% |
Ratio of operating income to net sales | 8.4% | 10.6% |
Note:1. Equity in net income (loss) of affiliated companies:
¥(48) million for the year ended March 31, 2009
¥39 million for the year ended March 31, 2008
2. NIDEC discontinued its optical pickup unit business, which was one of Nidec Sankyo's businesses, as of December 31, 2008, and as a result, the results of the optical pickup unit business for the year ended March 31, 2009 were recorded as “Income from discontinued operations“ in accordance with the Statement of Financial Accounting Standards No.144, “Accounting for the impairment or disposal of Long-Lived Assets.” Figures for the year ended March 31, 2008 were retrospectively reclassified.
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(2) Consolidated Financial Position
Yen in millions (except for per share amounts) | ||
March 31 | ||
2009 | 2008 | |
Total assets | ¥702,884 | ¥671,714 |
Shareholders’ equity | 297,148 | 319,584 |
Shareholders’ equity to total assets | 42.3% | 47.6% |
Shareholders’ equity per share | ¥2,133.27 | ¥2,204.94 |
(3) Unaudited Consolidated Results of Cash Flows
Yen in millions | ||
Year ended March 31 | ||
2009 | 2008 | |
Net cash provided by operating activities | ¥66,231 | ¥94,816 |
Net cash used in investing activities | (52,659) | (43,724) |
Net cash provided by (used in) financing activities | 91,160 | (27,280) |
Cash and cash equivalents at the end of year | ¥200,966 | ¥100,809 |
2. Dividend Condition
Yen | |||
Year ending | Year ended | ||
March 31, 2010 (estimate) | March 31, 2009 | March 31, 2008 | |
Interim dividend per share | ¥25.00 | ¥30.00 | ¥25.00 |
Year-end dividend per share | 25.00 | 30.00 | 30.00 |
Annual dividend per share | 50.00 | 60.00 | 55.00 |
Dividend declared | - | ¥8,530 million | ¥7,972 million |
Dividend payout ratio | 25.8% | 30.4% | 19.4% |
Dividend to shareholders’ equity | - | 2.8% | 2.6% |
3. Forecast of Consolidated Financial Performance (for the year ending March 31, 2010)
Yen in millions (except for per share amounts) | ||
Six months ending September 30, 2009 | Year ending March 31, 2010 | |
Net sales | ¥250,000 | ¥550,000 |
Operating income | 15,000 | 45,000 |
Income from continuing operations before income taxes | 14,000 | 43,000 |
Net income | 9,000 | 27,000 |
Net income- basic | ¥64.61 | ¥193.84 |
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4. Others
(1) Change in number of material subsidiaries during fiscal year
(due to change in the scope of consolidation): Not applicable
(2) Change of the accounting principles, procedures and presentation in the preparation ofconsolidated financial statements
1. Changed by new accounting standard: Yes
2. Changed by others: Not applicable
Note: See “Change of Important Items Regarding the Basis of Preparation of Consolidated Financial Statements” mentioned above for detail.
(3) Number of shares issued (Common stock)
1. Number of shares issued and outstanding at the end of the respective period:(including treasury stock)
145,075,080 shares at March 31, 2009
144,987,492 shares at March 31, 2008
2. Number of treasury stock at the end of the respective period:
5,782,871 shares at March 31, 2009
47,495 shares at March 31, 2008
3. Weighted-average number of shares issued and outstanding at the beginning and end of the period:
143,616,309 shares for the year ended March 31, 2009
144,914,321 shares for the year ended March 31, 2008
Note: See “Earnings per share” regarding the number of shares used to compute net income per share (on the consolidated basis).
(4) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: | 131 |
Number of affiliated companies accounted for under the equity method: | 3 |
(5) Change in Scope of Consolidation and Application of Equity Method
Number of companies newly consolidated: | 6 |
Number of companies excluded from consolidation: | 3 |
Number of companies newly accounted for under the equity method: | - |
Number of companies excluded from accounting under the equity method: | 2 |
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NON-CONSOLIDATED FINANCIAL STATEMENTS
Parent Company Non-Consolidated Financial Performance
(1) Non-Consolidated Results of Operations (Japanese GAAP)
Yen in millions (except for per share amounts) | ||
Year ended March 31 | ||
2009 | 2008 | |
Net sales | ¥134,324 | ¥189,253 |
Ratio of change from the previous period | (29.0)% | 4.8% |
Operating income | 7,315 | 13,980 |
Ratio of change from the previous period | (47.7)% | 24.4% |
Recurring profit | 25,119 | 21,307 |
Ratio of change from the previous period | 17.9% | (15.5)% |
Net income
| 21,669 | 21,519 |
Ratio of change from the previous period | 0.7% | 41.9% |
Net income per share- basic | ¥150.88 | ¥148.50 |
Net income per share- diluted | ¥148.27 | ¥144.46 |
(2) Non-Consolidated Financial Position (Japanese GAAP)
Yen in millions (except for per share amounts) | ||
March 31 | ||
2009 | 2008 | |
Total assets | ¥466,817 | ¥365,713 |
Shareholders’ equity | 212,584 | 223,357 |
Shareholders’ equity to total assets | 45.5% | 61.1% |
Shareholders’ equity per share | ¥1,526.17 | ¥1,541.03 |
Shareholders’ equity:
¥212,584 million for the year ended March 31, 2009
¥223,357 million for the year ended March 31, 2008
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1. Operating and Financial Review and Prospects
(1) Analysis of Business Results
1. Overview of Business Conditions in Fiscal 2008
During the fiscal year ended March 31, 2009 ("this fiscal year"), the world economy further deteriorated as a result of the sub-prime loan-caused chaos in the financial and capital markets and sustained an extremely negative impact that affected the real economy at an unprecedented speed and scale. This phenomenon was beyond the definition of a depression and should be referred to as a “crash.” Financial concerns and a significant demand decrease caused several industries to suffer an extraordinary utilization reduction, while the capital shortfalls of large corporations accelerated the financial chaos.
Under these economic circumstances, our company’s business performance, which had kept a good momentum during the first half of this fiscal year, slowed down rapidly in the second half of this fiscal year. Nevertheless, we quickly launched a group-wide work-sharing program to maintain employment and fight the recession in preparation for an upcoming age of half economy. In addition, regarding this economic recession as a very good chance to increase the sales profit ratio when our sales returns to a normal level, we launched the “WPR™ project (Double profit ratio™ project)”(*) to seek a radical profitability reform as part of our efforts to launch anti-recession measures as sustainable actions to improve our profit structure. This effort has enabled us to secure sales profit even in the fourth quarter of this fiscal year, when the consolidated sales of the entire Nidec Group decreased by 50% and minimi ze the extent of the profit loss of this fiscal year.
*note:WPR™ project (Double profit ratio™ project) In January 2009, we launched the "WPR™ project", a breakthrough management model to reform our group-wide profit structure. The project guidelines are as follows: 1. Operating profit margin ("OPM") positive even in a worst-case scenario, where monthly sales have decreased 50% from the peak level. 2. OPM returns to normal level with a 75% recovery in sales. 3. OPM doubled with a 100% recovery in sales. |
2. Consolidated Business Results for the year ended March 31, 2009
Consolidated net sales decreased by approximately ¥115,300 million, or 15.8%, to ¥613,458 million for the fiscal year ended March 31, 2009 (" this fiscal year") compared to the previous fiscal year ended March 31, 2008 ("the previous fiscal year"). Operating income decreased by approximately ¥25,700 million, or 33.2%, to ¥51,806 million. Income from continuing operations before income taxes decreased by approximately ¥17,200 million, or 26.8%, to ¥47,029 million. This smaller decrease, compared to the decrease in operating income, was due to ¥9,500 million of decrease in foreign exchange losses compared to the previous fiscal year. Net income from continuing operations decreased by approximately ¥11,100 million, or 26.6%, to ¥30,740 million. Net income was ¥28,353 million for this fiscal year, which included ¥2,387 million loss on discontinued operations.
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Net sales and operating income decreased approximately ¥16,500 million and ¥3,200 million, respectively, short of our revised forecast released on December 19, 2008. The main reasons for the shortage were as follows:
1. Demand for machinery and related parts decreased largely due to the fact that our customers asked us for extensions of the acceptance date for our products.
2. Demand for motors and parts for office equipment, optical equipment, home appliances and automotive also decreased more than our forecasts.
3. The contribution of the "WPR™ project" for the fourth quarter of this fiscal year was limited due to the fact that the project started in January 2009 and contributed from March 2009.
(Operating results by product segments for the year ended March 31, 2009)
Small precision motors-
Net sales of small precision motors decreased by approximately ¥71,600 million, or 18.6%, to ¥314,073 million for this fiscal year compared to the previous fiscal year. Sales of spindle motors for hard disk drives ("HDDs") decreased by approximately ¥41,800 million, or 18.7%, while unit shipments of the spindle motors decreased by 4.7%. Sales decreased largely due to a 12% yen appreciation against the U.S. dollar. There were similar trends in other products of small precision motors. Unit shipments of our spindle motors for 2.5-inch HDDs increased over 20% for this fiscal year compared to the previous fiscal year. Sales mix of spindle motors for 2.5-inch HDDs increased 10% to account for 46% of our total sales of spindle motors for HDDs, closing on to 51% represented by the spindle motors for 3.5-inch HDDs. Sales of other small precision brushless DC motors also decreased approximately ¥19,200 million, or 2 0.8%. Sales of the brushless DC motors by Nidec Corporation and its direct-line subsidiaries decreased by approximately ¥12,400 million, or 22.7%, while the unit shipment decreased by 13%. Sales of brushless DC fans decreased by approximately ¥9,200 million, or 19.7%. Sales of brushless DC fans by Nidec Corporation and its direct-line subsidiaries decreased by 20.5%, while the unit shipments decreased by approximately 2.2%.
Operating income of small precision motors decreased by approximately ¥14,800 million, or 29.1%, to ¥36,117 million for this fiscal year. Operating profit ratio of small precision motors decreased to 11.5%, but the ratio remained over 10%.
Mid-size motors-
Net sales of mid-size motors decreased approximately ¥19,200 million, or 19.9%, to ¥77,156 million for this fiscal year. Sales of motors for automobiles decreased approximately 25% due mainly to the yen appreciation against the Euro, while sales of motors for home appliances and industrial use decreased approximately 15% compared to the previous fiscal year.
Operating loss of mid-size motors was ¥538 million for this fiscal year. The operating loss was due mainly to the sales decrease in the 2nd half of this fiscal year, yen appreciation against the Euro, and an increase in research and development ("R&D") expenses of mid-size motors for automobiles resulting from an increasing in the orders of our new products for electric vehicles ("EV") and hybrid electric vehicles ("HEV"). Mid-size motors for home appliances and industrial use had an operating income for this fiscal year.
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Machinery-
Net sales of machinery decreased approximately ¥1,200 million, or 1.6%, to ¥72,090 million for this fiscal year. This was mainly due to sales decreases of Nidec-Shimpo and Nidec Nidec Tosok. The sales of Nidec Sankyo, Nidec Copal, Nidec-Read increased for this fiscal year. In particular, the sales of Nidec Sankyo increased over 20%.
Operating income of machinery decreased approximately ¥3,200 million, or 27.8 %, to ¥8,441 million for this fiscal year. Operating income margin of machinery remained over 10% for this fiscal year. This was due to that operating income of machinery in Nidec-Shimpo and Nidec Tosok had significantly decreased but remained as income.
Electronic and optical components-
As of December 31, 2008, we discontinued our optical pickup unit ("OPU") business which had been included within the "electronic and optical components" product segment. Net sales and operating income of electronic and optical components mentioned below do not include the results of the OPU business. The results were included in "Loss on discontinued operations" in our consolidated income statements.
Net sales of electronic and optical components decreased approximately ¥23,300 million, or 16.0 %, to ¥122,552 million for this fiscal year. The sales of Nidec Copal (such as shutters and lens unit for digital cameras and mobile phones) and Nidec Copal Electronics (such as sensors, electronic circuit components) decreased approximately 20% and 15%, respectively. Sales of control device units for home appliances in Nidec Sankyo were flat compared to the previous fiscal year, while sales of Nidec Nissin and Nidec Pigeon, which were part of Nidec Sankyo group, decreased.
Operating income of electronic and optical components decreased approximately ¥4,500 million, or 32.7 %, to ¥9,250 million for this fiscal year.
Other products-
Net sales of other products increased slightly by approximately ¥39 million, to ¥27,587 million for this fiscal year. Sales of automotive parts in Nidec Tosok remained at the same level to the previous fiscal year and sales of pivot assemblies in Nidec Singapore slightly decreased slightly.
Operating income of other products decreased approximately ¥100 million to ¥1,941 million for this fiscal year.
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3. Consolidated Business Results for the three months ended March 31, 2009
Our consolidated results for the three months ended March 31, 2009 ("this fourth quarter") is as follows: Net sales and operating income for this fourth quarter fluctuated at the level of the initial guideline of the WPR™ project launched in January 2009 (i.e. the level where “we can secure profit even with sales 50% down from its peak level”), with the net sales almost half (approximately 56%) of net sales for the three months ended September 30, 2008 ("this second quarter"), when the sales peaked. Even though our operating income did not reach the corresponding guideline described in the WPR™ project, we successfully secured operating income after a drastic profitability reform by reducing fixed cost and lowering profit-loss breakeven point steadily progressed in and after February.
Consolidated net sales decreased by approximately ¥72,500 million, or 40.4%, to ¥107,052 million for this fourth quarter compared to the three months ended March 31, 2008 ("the previous fourth quarter"), and decreased by approximately ¥34,100 million, or 24.2%, compared to the three months ended December 31, 2008 ("this third quarter"). Operating income decreased by approximately ¥19,000 million, or 95.1%, to ¥990 million for this fourth quarter compared to the previous fourth quarter, and decreased by approximately ¥9,000 million, or 90.1%, compared to this third quarter. This decrease in operating income was due to a sharp decline in customers' demand in all of our products, which caused not only sales decreases but also a large cutting of factory operation ratio.
(Operating results by product segments for the three months ended March 31, 2009)
Small precision motors-
Net sales of small precision motors decreased approximately ¥34,900 million, or 38.6%, to ¥55,497 million for this fourth quarter. Sales and unit shipment of spindle motors for hard disk drives ("HDDs") decreased approximately 35 % and 20% compared to the previous fourth quarter, respectively. The average unit price of the motors for HDDs in the U.S. dollar basis decreased approximately 7%, while the average unit price in yen basis decreased approximately 18% due to a 11% yen appreciation against the U.S. dollar compared to the previous fourth quarter. The reason for the 7% decrease of the average unit price in the U.S. dollar basis was due to the fact that the unit prices in the motors for 2.5-inch HDDs decreased 16%, while the unit prices in the motors for 3.5-inch HDDs decreased 6% compared to the previous fourth quarter. Sales of other small precision brushless DC motors for this fourth quarter decreased approxim ately ¥10,700 million, or 48.1%, compared to the previous fourth quarter. Sales and unit shipment of the brushless DC motors in Nidec Corporation and its direct-line subsidiaries decreased 47% and 32%, respectively. Sales of brushless DC fans decreased approximately ¥3,800 million, or 39%, compared to the previous fourth quarter.
Operating income of small precision motors decreased approximately ¥10,900 million, or 83%, to ¥2,233 million for this fourth quarter. This was mainly due to inventory adjustments resulting from a decrease in our customers' needs. We believe that we could reduce the negative impact by operating income margin improvements resulting from the self-manufacturing of internal parts for HDD, DC motors and fan motors, etc.
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Mid-size motors-
Net sales of mid-size motors decreased approximately ¥11,800 million, or 46.3%, to ¥13,656 million for this fourth quarter. Sales in Nidec Motors & Actuators decreased approximately ¥5,200 million. Sales of power steering motors decreased approximately ¥1,000 million, or 33.2%, compared to the previous fourth quarter. Sales of motors for home appliances and industrial use decreased approximately ¥5,600 million.
Operating loss of mid-size motors was ¥895 million for this fourth quarter. Nidec Motors & Actuators had operating loss due to amortizations of intangible assets, while Nidec Shibaura and Nidec Power Motor had operating income.
Machinery-
Net sales of machinery decreased approximately ¥8,400 million, or 42 %, to ¥11,769 million for this fourth quarter. The world wide depression has brought a deterioration in the business investments. Therefore, Nidec Sankyo, Nidec-Kyori, Nidec-Shimpo, Nidec-Read and Nidec Copal were negatively affected and the each company's sales decrease impacts were more than ¥1,000 million compared to the previous fourth quarter.
Operating income of machinery decreased approximately ¥2,800 million, or 91.9 %, to ¥250 million for this fourth quarter. Nidec Sankyo, Nidec-Shimpo, Nidec Tosok, Nidec-Read and Nidec-Kyori showed a decrease in operating income, compared to the previous fourth quarter.
Electronic and optical components-
Net sales of electronic and optical components decreased approximately ¥14,600 million, or 41 %, to ¥21,254 million for this fourth quarter. The sales in Nidec Copal, Nidec Copal Electronics and Nidec Sankyo decreased approximately ¥9,000 million, or 50.6%, ¥2,600 million, or 32.4%, and ¥2,600 million, or 27.6%, compared to the previous fourth quarter.
Operating loss of electronic and optical components was ¥135 million for this fourth quarter. This was mainly due to the fall of net sales in electronic and optical components mentioned above.
Other products-
Net sales of other products decreased approximately ¥2,900 million, or 37.3%, to ¥4,876 million for this fourth quarter. Sales of automotive parts in Nidec Tosok decreased approximately ¥1,900 million, or 38 %, and sales of pivot assemblies decreased as well.
Operating income of other products decreased approximately ¥300 million to ¥175 million for this fourth quarter. This decrease was primarily due to a sales decrease of Nidec Tosok's automotive parts.
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(2) Financial position
As for the changes in the balance sheet, total assets at March 31, 2009 increased by approximately ¥31,200 million, compared to March 31, 2008. Shareholders' equity decreased by approximately ¥22,400 million due mainly to the purchase of treasury stock of approximately ¥23,800 million and the decrease in foreign currency translation adjustments of approximately ¥16,100 million, while retained earnings at March 31, 2009 increased by approximately ¥19,500 million. Total liabilities at March 31, 2009 increased by approximately ¥61,300 million due mainly to an increase in short-term borrowings. Shareholders’ equity to total assets decreased to 42.3% at March 31, 2009, compared to 47.6% at March 31, 2008. This decrease was due to an approximately ¥1,000 million increase in cash and cash equivalents resulting from increased short-term borrowings. The short-term borrowings were intended to mitigate finan cial risks possibly deriving from continued economic crisis. Therefore, without the ¥1,000 million increase, the share holders' equity to total assets would be 49.3% at March 31, 2009.
Cashflows-
The balance of cash and cash equivalents as of March 31, 2009 was ¥200,966 million, an increase of ¥100,157 million from March 31, 2008.
“Cash flow from operating activities” produced cash inflow of ¥66,231 million. Compared to the previous period, the cash flow decreased by approximately ¥28,585 million mainly due to a ¥12,803 million decrease in net income and a ¥4,187 million decrease in depreciation and a ¥6,214 million decrease in foreign currency adjustments.
“Cash flow from investing activities” produced cash outflow of ¥52,659 million. The outflow was mainly due to ¥3,378 million purchase of marketable securities, ¥2,841 million of addition to property, plant and equipment, and a ¥1,243 million payment for additional investments in subsidiaries.
“Cash flow from financing activities” produced cash inflow of ¥91,160 million. The inflow resulting from an increase of short-term borrowings was approximately ¥153,934 million which was offset by ¥26,412 million of redemption of corporate bonds, ¥23,775 million of purchase of treasury stock and ¥8,699 million of dividend payments.
As of March 31, 2008 | As of March 31, 2009 | As of March 31, 2009 (*4) (reference) | |
Shareholders’ equity to total assets | 47.6% | 42.3% | 49.3% |
Total market value of Nidec's shares (*1) to total assets | 132.3% | 87.2% | 101.7% |
Interest-bearing liabilities (*2) to net cash provided by operating activities | 1.1 | 3.4 | 1.9 |
Interest coverage ratio (*3) | 40.0 | 47.2 | 47.2 |
Notes:
*1. Total market value: closing stock price at fiscal year end multiplied by a number of shares issued and outstanding at fiscal year end (excluding treasury stock).
*2. Interest-bearing liabilities: total amount of "short-term borrowings", "current portion of long-term debt" and "long-term debt" in the consolidated balance sheet.
*3. Interest coverage ratio: net cash provided by operating activities divided by "interest expenses" in the consolidated income statements.
*4. Cash and cash equivalents increased approximately ¥1,000 million resulted from an increase of short-term borrowings. The short-term borrowings were intended to mitigate financial risks possibly deriving from continued economic crisis. We showed the data without the ¥1,000 million impact from "total assets" and "Interest-bearing liabilities" for your reference.
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(3) Dividend Policy
From the viewpoint that “shareholders own the company”, Nidec intends to become an ideal company for shareholders by maximizing shareholder value with its ability to respond to a more challenging business environment and its high levels of performance to generate high share prices. Nidec is poised to increase its dividend payment subject to improvements in consolidated net earnings, while securing stable dividend levels.
Reserves are continually used to strengthen management structure and expand business in view of profitability enhancement.
<Notification of an increase in dividends>
We decided that the year-end dividend would be ¥30.0 per share. This resulted in a full-year dividend of ¥60.0 per share and the dividend was increased by ¥5.0 per share compared to the full-year dividend for the previous fiscal year ended March 31, 2008. The dividend payout ratio was 30.4%.
(4) Risk factors
The risk factors that we are recognizing as of March 31, 2009 are as follows.
(1) Our customer base is highly concentrated, and our sales would suffer if one or more of our significant customers substantially reduce or cancel orders for our products.
(2) We depend on the computer industry and digital consumer electronics industry for sales of our products, and our business may be adversely affected by a decline in the computer market and digital consumer electronics market.
(3) We are facing downward pricing pressure in our main product markets, and price declines could reduce our revenues and gross margins.
(4) If our third party suppliers experience capacity constraints or production failures, our production could be significantly harmed.
(5) We face aggressive competition both in the spindle motor market and in the markets into which we are attempting to expand our business, which could have a material adverse effect on our business and results of operations.
(6) We may be unable to commercialize customized products that satisfy customers’ needs in a timely manner and in sufficient quantities, which could damage our reputation and reduce sales.
(7) We could experience losses or damage to our reputation if any of the end-products in which our motors or other products are incorporated malfunction, causing damage to persons, property or data.
(8) Our operating results may fluctuate significantly because of a number of factors, many of which are beyond our control.
(9) Our recent growth has been based in part on acquisitions, and our future growth could be adversely affected if we make acquisitions that turn out to be incompatible with our existing business or unsuccessful, or if we are unable to find suitable acquisition targets.
(10) Our growth places strains on our managerial, operational and financial resources.
(11) We could be harmed by litigation involving patents and other intellectual property rights.
(12) Because our sales to overseas customers are denominated predominantly in U.S. dollars, we are exposed to exchange rate risks that could harm our results of operations.
(13) We rely on monthly financial data from operating segments that are not prepared on a U.S. GAAP basis and are not comparable between segments, which potentially reduces the usefulness of this data to us in making management decisions.
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(14) We rely on production in developing countries which may become politically or economically unstable and face risks affecting international operations.
(15) We may become subject to more stringent environmental regulations in the future.
(16) We rely on our founder, President and CEO, Mr. Shigenobu Nagamori, the loss of whom could have a material adverse effect on our business.
(17) For our business to continue effectively, we will need to attract and retain qualified personnel.
We are identifying the Risk Factor based on information available at the time of this announcement on April 24, 2009. The factors listed above are not all-inclusive and further information is contained in our annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.
(5) Business forecasts for the year ending March 31, 2010
With the basic cause of the current economic situation, i.e. the world's financial and capital markets, still unstable, the unprecedented economic crash, which is occurring beyond the level of economic fluctuation, is yet to be replaced by stability. Further, a uniform approach to environmental and resource problems affecting the overall global economy has not been formed yet. Risks exist that a situation may change significantly based on each country's political, financial, and economic measures, making the future quite uncertain. Though ascertaining a future forecast is very difficult, business management requires future directions and guidelines assuming an economic recovery.
The Nidec Group is determined to continue to monitor its business goals based on the WPR™ project, and take the current economic downturn as a great opportunity for improvement and launch improvement measures, based on which notion our business forecast was made, which fluctuates based on the sales recovery ratio. The following figures are based on the currently forecast consolidated sales recovery ratio, which will be reviewed every quarter. The numbers are simplified because forecasts of individual business segments will be difficult to explain in detail:
1. In the consumer product-related component business, where demand for products whose inventory has already been adjusted, is already recovering, and sales may recover to approximately 70% of the pre-sales reduction level.
2. On the other hand, the business of facility and equipment investment-related machinery and facility-related components will continue to struggle for the time being and its recovery will likely come late.
Thus, though predictions are difficult to make, we hereby present our business forecast based on the above circumstances and on the consideration that the first half of the fiscal year ending March 31, 2010 will see the overall business, except for some segments, still in a struggle and barely capable of securing profit, and that the recovery will last for awhile from the second half of the fiscal year ending March 31, 2010.
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Forecast of consolidated results for the full year ending March 31, 2010
Net sales | ¥550,000 million | (Down 10.3% from the previous fiscal year) |
Operating income | ¥45,000 million | (Down 13.1% from the previous fiscal year) |
Income from continuing operations before income taxes | ¥43,000 million | (Down 8.6% from the previous fiscal year) |
Net income | ¥27,000 million | (Down 4.8% from the previous fiscal year) |
(Forecast of the consolidated results for the interim fiscal period ending September 30, 2009)
Net sales | ¥250,000 million | (Down 31.5% from the previous fiscal year) |
Operating income | ¥15,000 million | (Down 63.2% from the previous fiscal year) |
Income from continuing operations before income taxes | ¥14,000 million | (Down 67.7% from the previous fiscal year) |
Net income | ¥9,000 million | (Down 67.7% from the previous fiscal year) |
Notes:
About Forecast of Business Results
1) Consolidated accounting figures were prepared based on U.S. GAAP.
2) Exchange rate was set at 1 US$ = ¥95 for the fiscal year. Exchange rates of Asian currencies were also set in conjunction with this.
Disclaimer Regarding Forward-Looking Statements This press release contains forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Nidec and its group companies (the "Nidec Group"). These forward-looking statements are based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to them. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “plan” or similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of the Nidec Group's financial conditio n, or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. The Nidec Group cannot promise that the expectations expressed in these forward-looking statements will turn out to be correct. Actual results could be materially different from and worse than our expectations as a result of certain factors, including, but not limited to (i) the Nidec Group's ability to design, develop, mass produce and win acceptance of their products, (ii) general economic conditions in the computer, information technology and related product markets, particularly levels of consumer spending, (iii) exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar and other currencies in which the Nidec Group makes significant sales or in which the Nidec Group's assets and liabilities are denominated, (iv) the Nidec Group's ability to acquire and successfully inte grate companies with complementary technologies and product lines, and (v) adverse changes in laws, regulations or economic policies in any of the countries where the Nidec Group has manufacturing operations, especially China. |
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2. The Nidec Group
The Nidec Group is comprised of Nidec Corporation (“Nidec”), 131 consolidated subsidiaries and 3 affiliated companies. The Nidec group continues to expand its operations based on a special management style that focuses on the production of core rotational products centered on revolutionary drive technology with operations in the following segments:Small precision motors, Mid-size motors, Machinery, Electronic and Optical components andAutomobiles components. The principal business activities in each of these segments are carried out in the areas of product development, manufacturing and sales, and distribution networks as well as other services established for each business both in Japan and overseas.
The business activities of Nidec and the Nidec Group’s principal consolidated subsidiaries are as follows:
Business segment | Production or Sales | Principal Companies | |
Spindle motors for HDDs | Production | Nidec Corporation, Nidec Electronics (Thailand) Co., Ltd., Nidec Philippines Corporation, Nidec Subic Philippines Corporation, Nidec (Zhejiang) Corporation | |
Small precision DC motors | Production | Nidec (Dalian) Limited, Nidec (Dong Guan) Limited, Nidec Sankyo Corporation, Nidec Sankyo Singapore Pte. Ltd., Nidec Sankyo (H.K.) Co., Ltd., Nidec Servo Corporation (Note 1) | |
Small precision fans | Production | Nidec (Dalian) Limited, Nidec (Dong Guan) Limited, Nidec Vietnam Corporation, Nidec Servo Corporation (Note 1) | |
Parts and materials | Production | Nidec Electronics (Thailand) Co., Ltd., Nidec Philippines Corporation, Nidec Subic Philippines Corporation, Nidec (Zhejiang) Corporation, Nidec Precision (Thailand) Co., Ltd., Nidec Precision Philippines Corporation, P.T. Nidec Indonesia, Nidec Brilliant Co., Ltd., Nidec Brilliant Precision (Thailand) Co., Ltd. | |
Small precision motors | Sales | Nidec Corporation, Nidec Singapore Pte. Ltd., Nidec (H.K.) Co., Ltd., Nidec Taiwan Corporation, Nidec (Shanghai) International Trading Co., Ltd., Nidec Electronics (Thailand) Co., Ltd., Nidec Philippines Corporation, Nidec (Dalian) Limited, Nidec (Dong Guan) Limited, Nidec Copal Corporation, Nidec Sankyo Corporation, Nidec Sankyo Singapore Pte. Ltd., Nidec Sankyo (H.K.) Co., Ltd., Nidec Brilliant Co., Ltd., Nidec Servo Corporation (Note 1), Japan Servo Motors Singapore Pte. Ltd. |
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For office automation equipment and home electric appliances OA | Production | Nidec Shibaura Corporation, Nidec Power Motor Corporation, Nidec Shibaura (Zhejiang) Corporation, Nidec Shibaura Electronics (Thailand) Co., Ltd. | |
For automobiles | Production | Nidec Corporation, Nidec Automotive Motor (Zhejiang) Corporation, Nidec Motors & Actuators (Germany), Nidec Motors & Actuators (Mexico) | |
Mid-size Motors | Sales | Nidec Corporation, Nidec Electronics GmbH, Nidec Shibaura Corporation, Nidec Power Motor Corporation, Nidec Shibaura (Zhejiang) Corporation (Note 2), Nidec Shibaura Electronics (Thailand) Co., Ltd., Nidec Motors & Actuators (Germany), Nidec Motors & Actuators (Mexico) | |
Power transmission drives | Production | Nidec-Shimpo Corporation, Nidec-Shimpo (Zhejiang) Corporation | |
Factory automation - related equipment | Production | Nidec Sankyo Corporation, Nidec Copal Corporation, Nidec-Shimpo Corporation, Nidec Tosok Corporation, Nidec-Kyori Corporation, Nidec-Read Corporation, Nidec Machinery Corporation, Nidec-Shimpo (Zhejiang) Corporation, Nidec System Engineering (Zhejiang) Corporation | |
Machinery | Sales | Nidec Sankyo Corporation, Nidec Copal Corporation, Nidec-Shimpo Corporation, Nidec Tosok Corporation, Nidec-Kyori Corporation, Nidec-Read Corporation, Nidec Sankyo (H.K.) Co., Ltd. | |
Electronic components | Production | Nidec Copal Corporation, Nidec Copal Electronics Corporation, Nidec Copal (Zhejiang) Corporation, Fujisoku Corporation | |
Optical components | Production | Nidec Copal Corporation, Nidec Sankyo Corporation, Nidec Nissin Corporation, Nidec Copal Precision Parts Corporation, Nidec Copal (Thailand) Co., Ltd., Nidec Copal (Zhejiang) Corporation |
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Electronic and Optical components | Sales | Nidec Copal Corporation, Nidec Sankyo Corporation, Nidec Copal Electronics Corporation, Nidec Nissin Corporation, Nidec Copal (Thailand) Co., Ltd., Nidec Copal (Zhejiang) Corporation, Nidec Copal Hong Kong Co., Ltd., Copal Optical & Electronic Machinery (Shanghai) Co., Ltd., Fujisoku Corporation | |
Pivot assemblies | Production and Sales | Nidec Singapore Pte. Ltd., P.T. Nidec Indonesia | |
Musical Movements | Production and Sales | Nidec Sankyo Shoji Corporation | |
Automobile parts | Production | Nidec Tosok Corporation, Nidec Tosok (Vietnam) Co., Ltd. | |
Sales | Nidec Tosok Corporation | ||
Services, etc. | Nidec Total Service Corporation, Nidec Logistics Corporation |
Notes:
1. Japan Servo Co., Ltd. changed its name to Nidec Servo Corporation as of October 1, 2008. Its subsidiaries also changed their names as of the date of the change.
2. Nidec Power Motor (Zhejiang) Co., Ltd. consolidated in Nidec Shibaura (Zhejiang) Corporation as of October 1, 2008.
Nidec prepared consolidated financial statements conforming to U.S. GAAP from the fiscal year ended March 31, 2005. Scope of consolidation is also based on U.S. GAAP. Business segments comprise a total of 16 segments conforming to the Statement of Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and Related Information”. Operating Segments are the classifications, our chief operating decision-maker utilizes for business decision-making and performance evaluation. Reportable segments consist of one or more operating segments aggregated on the basis of economic similarity and materiality.
The business segments are as follows.
TheNCJsegment comprises Nidec Corporation in Japan, which primarily produces and sells hard disk drive motors, DC motors, fans and mid-size motors.
TheNETsegment comprises Nidec Electronics (Thailand) Co., Ltd. and Nidec Precision (Thailand) Co., Ltd., subsidiaries in Thailand, which primarily produce and sell hard disk drive motors.
The NCCsegment comprises Nidec (Zhejiang) Corporation, a subsidiary in China, which primarily produces and sells hard disk drive motors.
TheNCD segment comprises Nidec (Dalian) Limited, a subsidiary in China, which primarily produces and sells DC motors and fans.
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TheNCS segment comprises Nidec Singapore Pte. Ltd., a subsidiary in Singapore, which primarily produces and sells hard disk drive motors and pivot assemblies, and primarily sells DC motors and fans.
TheNCHsegment comprises Nidec (H.K.) Co., Ltd., a subsidiary in Hong Kong, which primarily sells hard disk drive motors, DC motors and fans.
TheNCF segment comprises Nidec Philippines Corporation and Nidec Precision Philippines Corporation, subsidiaries in the Philippines, which primarily produce and sell hard disk drive motors.
TheNSNK segment comprises Nidec Sankyo Corporation., a subsidiary in Japan, which primarily produces and sells DC motors, machinery, and electronic and optical components.
The NCPL segment comprises Nidec Copal Corporation, a subsidiary in Japan, which primarily produces and sells electronic and optical components, and machinery.
TheNTSC segment comprises Nidec Tosok Corporation, a subsidiary in Japan, which primarily produces and sells automobile parts and machinery.
The NCEL segment comprises Nidec Copal Electronics Corporation, a subsidiary in Japan, which primarily produces and sells electronic components.
TheNSRV segment comprises Nidec Servo Corporation, a subsidiary in Japan, which primarily produces and sells DC motors, fans and other small precision motors. (Note 1)
TheNSBC segment comprises Nidec Shibaura Corporation, a subsidiary in Japan, which primarily produces and sells mid-size motors.
TheNSCJsegment comprises Nidec-Shimpo Corporation, a subsidiary in Japan, which primarily produces and sells power transmission drives, measuring machines and electric potter’s wheels.
TheNMA segment comprises Nidec Motors & Actuators (Germany) and other subsidiaries of Europe and
North America, which primarily produce and sell motors for automobiles.
TheNNSN segment comprises Nidec Nissin Corporation, a subsidiary in Japan, which primarily produces and sells optical components.
Notes:
1. Japan Servo Co., Ltd. changed its name to Nidec Servo Corporation as of October 1, 2008. Its subsidiaries also changed their names as of the date with the change.
2. The All Others segment comprises subsidiaries that are operating segments but not designated as reportable segments due to materiality.
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3. Management Policies
1) Fundamental policies
Nidec Corporation and its group companies continue to expand their operations closely focused on the manufacturing and sale of products that “spin and move”, centering on the field of drive technology.
We are determined to achieve high growth, high share prices, and high profit over the long-term to maximize shareholder value and meet the expectations of shareholders.
Nidec Corporation and its subsidiary companies uphold the following three management creeds:
1. Stable employment based on healthy business growth.
2. Exploitation of universally desired, indispensable products for the common good.
3. Pursuit of the No.1 position in each of our chosen paths.
2) Target
Nidec has the firm belief that growth must generate high profitability, and is now working to achieve a 15% return on equity.
In January 2009, we established a "WPR™ project (project to double profit margin)" which is a breakthrough management model to reform the group-wide profit structure. Please see more details in the following "4) Challenges and issues, item B."
3) Mid-to-long-term management strategy
A. Nidec will continue to focus its efforts on its core motor business, leveraging its cutting edge technology to create new markets and new products, while expanding its existing product lineup ranging from micro motors to mid-size motors for home appliances, industrial use and automobiles. Especially in the motors for automobiles, which we believe one of our future core businesses, we will expand operations worldwide through M&A activities and any other efforts.
B. Regarding HDD motors, by increasing its ability to mass-produce fluid dynamic bearing (“FDB”) motors and propelling technical innovation in response to expansion in HDD applications, Nidec will further sharpen its competitive edge in the market of next generation products.
C. While maintaining a leading share of the markets for electronic and optical parts, production equipment for semiconductors and electronic parts, and for measuring machines, Nidec and its group companies are determined to achieve the world’s top technological standards in each of these areas. Through the integration of technologies in wide-ranging areas, Nidec intends to create new markets and continue to develop high growth businesses.
D. Nidec assesses possible country risk attributable to overconcentration of production capabilities in particular regions or countries and diversifies investment in multiple countries to ensure an appropriate balance in its international production activities. Nidec's present focus in this context is on securing the Nidec Group's future overseas manufacturing base in Vietnam as a means to lessen the Company's increased dependence on China.
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4) Challenges and issues
A. Promotion of a sustainable growth strategy based on a healthy financial status
To counter the latest economic crash radically changing the economic and industrial structures, promoting a strategy for a post-recovery period growth is important. Under four slogans, (”Save energy”, “Be eco-friendly,” Make light, thin, short, and small products,” and “Halve the prices), Nidec Corporation has been actively implementing its strategy to create and develop new markets, new customers, and new products, which are all the basis of the Company’s growth strategy. Additionally, five cases, including ones overseas, of M&A, the foundation of our accelerated growth, were successfully executed by Corporate Strategy Office, which was created in July 2006 to enhance Nidec’s M&A strategies. The Office, an organization dedicated for M&A, has been acting very vigorously in handling new cases.
B. In January 2009, we established a "WPR™ project" which is a breakthrough management model to reform our group-wide profit structure.
The project guidelines are:
1. Operating profit margin ("OPM") positive even in a worst-case scenario, where monthly sales have declined 50% from their peak level.
2. OPM returns to normal levels with a 75% recovery in sales.
3. OPM doubled with a 100% recovery in sales.
We believe that the contribution of the WPR™ project is still continuing to gradually increase from March 2009.
C. We, unified as a group, will promote to enhance our technological development system to accommodate the rapidly changing market needs and to actively provide new technologies and products. This effort involves Nidec's Central Technical Center and Motor Engineering Research Laboratory, Nidec's main facilities, as well as the construction of new buildings at Nagano Technical Center (completed in March 2009) and Shiga Technical Center (to be completed in August 2009) for capacity expansion and function enhancement. The construction of a technical center was also completed at Nidec Copal Electronic Corporation in February 2007.
D. Nidec Corporation, as a global company, will further improve its entire group's accounting management system, accounting standards, financial performance, and business information disclosure systems. Nidec's Internal Audit & Management Advisory Department, established in 2004, supervises the entire Nidec Group's business management system with an adequate number of members and based on the know-how and experiences accumulated through efforts to study the U.S. Sarbanes-Oxley Act. Collaboration between an information disclosure-related committee and individual departments dedicated to information disclosure will improve our information disclosure system.
In addition to the mentioned efforts, we established the CSR Promotion Office in April 2008. This Office will engage in various activities as a dedicated group just like the existing Compliance Office, Risk Management Office and IR Dept. Thus, Nidec Corporation, while engaging in business activities as a public organ, will contribute to society by creating employment and launching new social contribution activities.
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5) Others
For transactions with our Directors and related parties, obtaining attorneys’ and other experts’ advice has been made part of our internal system, while we added a rule of obtaining an approval at a Meeting of the Board of Directors, which a majority of external Corporate Auditors must attend, in order to prevent the occurrence of problems. Furthermore, we have been actively working to raise our awareness of compliance by holding a lecture by an attorney or other experts to the Company’s Members to the Board of Directors, Vice Presidents, and Auditors among other personnel at least annually.
WPR™ : a. WPR was named by Mr. Shigenobu Nagamori of NIDEC CORPORATION based on his unique business management method in 2008. b. WPR™ is a trademark of NIDEC CORPORATION in Japan. c. WPR© Shigenobu Nagamori NIDEC CORPORATION 2008. |
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4. Unaudited Consolidated Financial Statements (U.S. GAAP)
(1) Consolidated Balance Sheets
Assets
Yen in millions | ||||||
March 31 | Increase or | |||||
2009 | 2008 | decrease | ||||
Amount | % | Amount | % | Amount | ||
Current assets: | ||||||
Cash and cash equivalents | ¥200,966 | ¥100,809 | ¥100,157 | |||
Trade notes receivable | 11,663 | 17,205 | (5,542) | |||
Trade accounts receivable | 111,548 | 148,928 | (37,380) | |||
Inventories: | ||||||
Finished goods | 26,521 | 32,735 | (6,214) | |||
Raw materials | 13,004 | 17,849 | (4,845) | |||
Work in progress | 14,567 | 16,164 | (1,597) | |||
Project in progress | 1,124 | 816 | 308 | |||
Supplies and other | 2,259 | 2,254 | 5 | |||
Other current assets | 20,364 | 20,238 | 126 | |||
Total current assets | 402,016 | 57.2 | 356,998 | 53.1 | 45,018 | |
Investments and advances: | ||||||
Marketable securities, other securities investments and other investments | 13,344 | 15,273 | (1,929) | |||
Investments in and advances to affiliated companies | 1,549 | 2,102 | (553) | |||
Total investments and advances | 14,893 | 2.1 | 17,375 | 2.6 | (2,482) | |
Property, plant and equipment: | ||||||
Land | 39,386 | 39,389 | (3) | |||
Buildings | 112,934 | 110,258 | 2,676 | |||
Machinery and equipment | 255,887 | 264,019 | (8,132) | |||
Construction in progress | 11,835 | 11,309 | 526 | |||
Sub-total | 420,042 | 59.8 | 424,975 | 63.3 | (4,933) | |
Less - Accumulated depreciation | (230,357) | (32.8) | (226,146) | (33.7) | (4,211) | |
Total property, plant and equipment | 189,685 | 27.0 | 198,829 | 29.6 | (9,144) | |
Goodwill | 71,060 | 10.1 | 71,223 | 10.6 | (163) | |
Other non-current assets | 25,230 | 3.6 | 27,289 | 4.1 | (2,059) | |
Total assets | ¥702,884 | 100.0 | ¥671,714 | 100.0 | ¥31,170 |
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Liabilities and Shareholders’ Equity
Yen in millions | ||||||
March 31 | Increase or | |||||
2009 | 2008 | decrease | ||||
Amount | % | Amount | % | Amount | ||
Current liabilities: | ||||||
Short-term borrowings | ¥221,342 | ¥68,854 | ¥152,488 | |||
Current portion of long-term debt | 1,883 | 29,196 | (27,313) | |||
Trade notes and accounts payable | 70,398 | 121,698 | (51,300) | |||
Other current liabilities | 24,120 | 33,351 | (9,231) | |||
Total current liabilities | 317,743 | 45.2 | 253,099 | 37.7 | 64,644 | |
Long-term liabilities: | ||||||
Long-term debt | 2,578 | 3,430 | (852) | |||
Accrued pension and severance costs | 15,684 | 14,953 | 731 | |||
Other long-term liabilities | 9,192 | 12,462 | (3,270) | |||
Total long-term liabilities | 27,454 | 3.9 | 30,845 | 4.6 | (3,391) | |
Total liabilities | 345,197 | 49.1 | 283,944 | 42.3 | 61,253 | |
Minority interest in consolidated subsidiaries | 60,539 | 8.6 | 68,186 | 10.1 | (7,647) | |
Shareholders’ equity: | ||||||
Common stock | 66,551 | 9.5 | 66,248 | 9.9 | 303 | |
Additional paid-in capital | 69,162 | 9.8 | 68,859 | 10.3 | 303 | |
Retained earnings | 212,955 | 30.3 | 193,407 | 28.8 | 19,548 | |
Accumulated other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | (26,324) | (10,233) | (16,091) | |||
Unrealized gains (losses) from securities, net of reclassification adjustments | (417) | 1,016 | (1,433) | |||
Pension liability adjustments | (723) | 568 | (1,291) | |||
Total accumulated other comprehensive income (loss) | (27,464) | (3.9) | (8,649) | (1.4) | (18,815) | |
Treasury stock, at cost | (24,056) | (3.4) | (281) | (0.0) | (23,775) | |
Total shareholders’ equity | 297,148 | 42.3 | 319,584 | 47.6 | (22,436) | |
Total liabilities and shareholders’ equity | ¥702,884 | 100.0 | ¥671,714 | 100.0 | ¥31,170 |
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(2) Unaudited Consolidated Statements of Income
Yen in millions | ||||||
Year ended March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | % | |
Net sales | ¥613,458 | 100.0 | ¥728,756 | 100.0 | ¥(115,298) | (15.8) |
Cost of products sold | 482,893 | 78.7 | 571,337 | 78.4 | (88,444) | (15.5) |
Selling, general and administrative expenses | 51,795 | 8.5 | 50,168 | 6.9 | 1,627 | 3.2 |
Research and development expenses | 26,964 | 4.4 | 29,709 | 4.1 | (2,745) | (9.2) |
Operating expenses | 561,652 | 91.6 | 651,214 | 89.4 | (89,562) | (13.8) |
Operating income | 51,806 | 8.4 | 77,542 | 10.6 | (25,736) | (33.2) |
Other income (expenses): | ||||||
Interest and dividend income | 2,543 | 2,869 | (326) | |||
Interest expenses | (1,404) | (2,369) | 965 | |||
Foreign exchange gain (loss), net | (3,688) | (13,218) | 9,530 | |||
Gain (loss) from marketable securities, net | (1,305) | 454 | (1,759) | |||
Other, net | (923) | (1,023) | 100 | |||
Total | (4,777) | (0.7) | (13,287) | (1.8) | 8,510 | - |
Income from continuing operations before income taxes | 47,029 | 7.7 | 64,255 | 8.8 | (17,226) | (26.8) |
Income taxes | (12,464) | (2.1) | (15,930) | (2.2) | 3,466 | - |
Income from continuing operations before | 34,565 | 5.6 | 48,325 | 6.6 | (13,760) | (28.5) |
Minority interest in income (loss) of consolidated subsidiaries | 3,777 | 0.6 | 6,485 | 0.9 | (2,708) | (41.8) |
Equity in net (income) loss of affiliated companies | 48 | 0.0 | (39) | (0.0) | 87 | - |
Income from continuing operations | 30,740 | 5.0 | 41,879 | 5.7 | (11,139) | (26.6) |
Loss on discontinued operations | (2,387) | (0.4) | (723) | (0.1) | (1,664) | - |
Net income | ¥28,353 | 4.6 | ¥41,156 | 5.6 | ¥(12,803) | (31.1) |
Note: NIDEC discontinued its optical pickup unit business, which was one of Nidec Sankyo's business, as of December 31, 2008 and, as a result, the results of the optical pickup unit business for the year ended March 31, 2009 were recorded as “Income from discontinued operations“ in accordance with the Statement of Financial Accounting Standards No.144, “Accounting for the impairment or disposal of Long-Lived Assets.” Figures for the year ended March 31, 2008 was retrospectively reclassified.
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(3) Unaudited Consolidated Statements of Shareholders’ Equity and Comprehensive Income (Loss)
Yen in millions (except for number of shares of common stock) | |||||||||||||||
Year ended March 31, 2009 | Common stock | Additional | Retained | Accumulated | Treasury stock, at cost | Loan | |||||||||
Shares | Amount | Total | |||||||||||||
Balance at March 31, 2008 | 144, 987,492 | ¥66,248 | ¥68,859 | ¥193,407 | ¥(8,649) | ¥(281) | ¥- | ¥319,584 | |||||||
Effects of changing pension plan No. 158, net of tax * | (106) | (5) | (111) | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | 28,353 | 28,353 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | (16,091) | (16,091) | |||||||||||||
Unrealized losses on securities, net of reclassification adjustments | (1,433) | (1,433) | |||||||||||||
Pension liability adjustments | (1,286) | (1,286) | |||||||||||||
Total comprehensive income | 9,543 | ||||||||||||||
Dividends paid | (8,699) | (8,699) | |||||||||||||
Conversion of convertible debt | 87,588 | 303 | 303 | 606 | |||||||||||
Purchase of treasury stock | (23,775) | (23,775) | |||||||||||||
Payment for loan to shareholder | (14,500) | (14,500) | |||||||||||||
Collection of loan to shareholder | 14,500 | 14,500 | |||||||||||||
Balance at March 31, 2009 | 145,075,080 | ¥66,551 | ¥69,162 | ¥212,955 | ¥(27,464) | ¥(24,056) | ¥- | ¥297,148 |
Note: * As of April 1, 2008, NIDEC adopted the measurement date provision of SFAS No. 158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans-an amendment of FASB Statement No. 87, 88, 106, and 132(R)”. As a result, at the beginning of this fiscal year, retained earnings, net of tax decreased by ¥106 million and accumulated other comprehensive income, net of tax decreased ¥5 million.
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Yen in millions (except for number of shares of common stock) | |||||||||||||
Year ended March 31, 2008 | Common stock | Additional | Retained | Accumulated | Treasury stock, at cost | ||||||||
Shares | Amount | Total | |||||||||||
Balance at March 31, 2007 | 144,780,492 | ¥65,868 | ¥68,469 | ¥160,480 | ¥10,461 | ¥(262) | ¥305,016 | ||||||
Cumulative effect resulting from the adoption of FIN No. 48 * | (987) | (987) | |||||||||||
Comprehensive income: | |||||||||||||
Net income | 41,156 | 41,156 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | (17,107) | (17,107) | |||||||||||
Unrealized gains (losses) from securities, net of reclassification adjustments | (2,308) | (2,308) | |||||||||||
Pension liability adjustments | 305 | 305 | |||||||||||
Total comprehensive income | 22,046 | ||||||||||||
Dividends paid | (7,242) | (7,242) | |||||||||||
Exercise of stock option | 207,000 | 380 | 390 | 770 | |||||||||
Purchase of treasury stock | (19) | (19) | |||||||||||
Balance at March 31, 2008 | 144,987,492 | ¥66,248 | ¥68,859 | ¥193,407 | ¥(8,649) | ¥(281) | ¥319,584 |
Note: * Due to the adoption of FIN No.48 “Accounting for Uncertainty in Income Taxes” during this period, our retained earnings as of March 31, 2007 decreased by ¥987 million.
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(4) Unaudited Consolidated Statements of Cash Flows
Yen in millions | |||
Year ended March 31 | Increase | ||
2009 | 2008 | ||
Cash flows from operating activities: | |||
Net income | ¥28,353 | ¥41,156 | ¥(12,803) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 32,147 | 36,334 | (4,187) |
Amortization | 1,933 | 1,638 | 295 |
Loss (gain) on marketable securities, net | 1,305 | (454) | 1,759 |
Loss on sales, disposal or impairment of property, plant and equipment | 1,282 | 1,636 | (354) |
Deferred income taxes | 1,085 | 2,065 | (980) |
Minority interest in income of consolidated subsidiaries | 2,882 | 6,082 | (3,200) |
Equity in net losses (income) of affiliated companies | 48 | (39) | 87 |
Foreign currency adjustments | 2,091 | 8,305 | (6,214) |
Accrual for pension and severance costs, net payments . | 366 | (1,551) | 1,917 |
Changes in operating assets and liabilities: | |||
Decrease in notes and accounts receivable | 38,041 | 26 | 38,015 |
Decrease (increase) in inventories | 11,238 | (5,575) | 16,813 |
(Decrease) increase in notes and accounts payable | (46,469) | 5,949 | (52,418) |
Decrease in accrued income taxes | (3,631) | (3,601) | (30) |
Other | (4,440) | 2,845 | (7,285) |
Net cash provided by operating activities | 66,231 | 94,816 | (28,585) |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (38,501) | (35,660) | (2,841) |
Proceeds from sales of property, plant and equipment | 865 | 2,010 | (1,145) |
Purchases of marketable securities | (3,609) | (231) | (3,378) |
Proceeds from sales of marketable securities | 76 | 2,761 | (2,685) |
Acquisitions of consolidated subsidiaries, net of cash acquired | (756) | (2,619) | 1,863 |
Payments for additional investments in subsidiaries | (9,286) | (8,043) | (1,243) |
Other | (1,448) | (1,942) | 494 |
Net cash used in investing activities | (52,659) | (43,724) | (8,935) |
Cash flows from financing activities: | |||
Increase (decrease) in short-term borrowings | 153,934 | (15,123) | 169,057 |
Proceeds from issuance of long-term debt | 384 | 137 | 247 |
Repayments of long-term debt | (2,067) | (3,966) | 1,899 |
Redemption of corporate bonds | (26,412) | - | (26,412) |
Proceeds from issuance of new shares | - | 761 | (761) |
Purchases of treasury stock | (23,775) | (19) | (23,756) |
Payment for loan to shareholder | (14,500) | - | (14,500) |
Collection of loan to shareholder | 14,500 | - | 14,500 |
Dividends paid | (8,699) | (7,242) | (1,457) |
Other | (2,205) | (1,828) | (377) |
Net cash provided by (used in) financing activities | 91,160 | (27,280) | 118,440 |
Effect of exchange rate changes on cash and cash equivalents | (4,575) | (11,787) | 7,212 |
Net increase in cash and cash equivalents | 100,157 | 12,025 | 88,132 |
Cash and cash equivalents at beginning of year | 100,809 | 88,784 | 12,025 |
Cash and cash equivalents at end of year | ¥200,966 | ¥100,809 | ¥100,157 |
30
Notes regarding Going Concern Assumption
Not applicable.
Scope of consolidation and application of the equity method
1. Scope of consolidation
As of | |
March 31, 2009 | |
Number of consolidated subsidiaries | 131 |
2. Application of equity method
As of | |
March 31, 2009 | |
Number of affiliated companies accounted for by the equity method | 3 |
3. Change in the scope of consolidation from March 31, 2008
Increase of consolidated subsidiaries | 6 |
Decrease of consolidated subsidiaries | 3 |
4. Change in the application of equity method from March 31, 2008
Increase of affiliated companies accounted for by the equity method | - |
Decrease of consolidated subsidiaries | 2 |
Critical Accounting Policies
The Company and its subsidiaries in Japan maintain their records and prepare their accounts and records in accordance with accounting principles generally accepted in Japan, and its foreign subsidiaries in conformity with those of their countries of domicile. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform with accounting principles generally accepted in the United States (“U.S. GAAP”).
1) Presentation of income (loss) from discontinued operations
Under U.S. GAAP, the result of operations including disposal losses of the discontinued operations are presented by net of tax separately from continuing operations in the Consolidated Statements of Income according to the SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets“. Under Japanese GAAP, there are no provisions for the presentation for discontinued operations. The results of operations are not presented separately from continuing operations and are not reclassified retroactively.
31
2) Presentation regarding Shareholders' equity
Under U.S. GAAP, the Loan to the Shareholder is deducted from Shareholders' equity.
We have not changed significant accounting policies reported in our annual report to Chief of the Kanto Local Finance Bureau on June 25, 2008 except for the “Presentation of income (loss) from discontinued operations” and “Presentation regarding Shareholders' equity”.
Change of Important Items Regarding the Basis of Preparation of Consolidated Financial Statements
As of April 1, 2008, NIDEC adopted SFAS No. 157. SFAS No. 157 clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The adoption of SFAS No. 157 did not have a material impact on our consolidated financial position, results of operation or liquidity.
As of April 1, 2008, NIDEC adopted the measurement date provision of SFAS No. 158. In accordance with this provision, the measurement dates of some of the defined benefit pension plans were changed to the date of the employer's fiscal year-end from within the three months prior to the year-end. As a result, at the beginning of this fiscal year, accrued pension and severance costs increased by ¥225 million. Furthermore, retained earnings, net of tax decreased ¥106 million and accumulated other comprehensive income, net of tax decreased ¥5 million.
As of April 1, 2008, NIDEC adopted SFAS No. 159. SFAS 159 enables entities to choose to measure eligible financial assets and financial liabilities at fair value, with changes in value recognized in earnings. As NIDEC did not elect the fair value option, the adoption of SFAS No. 159 did not have an impact on our consolidated financial position, results of operation or liquidity.
32
Operating Segment Information
Yen in millions | ||||||
Year ended March 31, 2009 | Year ended March 31, 2008 | Increase or decrease | ||||
Net sales: | ||||||
Nidec Corporation | ¥134,324 | 13.7% | ¥189,253 | 15.6% | ¥(54,929) | (29.0)% |
Nidec Electronics (Thailand) Co., Ltd. | 111,372 | 11.4 | 128,193 | 10.6 | (16,821) | (13.1) |
Nidec (Zhejiang) Corporation | 20,929 | 2.1 | 24,937 | 2.1 | (4,008) | (16.1) |
Nidec (Dalian) Limited | 35,086 | 3.6 | 48,039 | 4.0 | (12,953) | (27.0) |
Nidec Singapore Pte. Ltd. | 27,323 | 2.8 | 45,699 | 3.8 | (18,376) | (40.2) |
Nidec (H.K.) Co., Ltd. | 42,866 | 4.4 | 43,657 | 3.6 | (791) | (1.8) |
Nidec Philippines Corporation | 30,186 | 3.1 | 46,482 | 3.8 | (16,296) | (35.1) |
Nidec Sankyo Corporation | 62,036 | 6.3 | 58,351 | 4.8 | 3,685 | 6.3 |
Nidec Copal Corporation | 59,817 | 6.1 | 70,373 | 5.8 | (10,556) | (15.0) |
Nidec Tosok Corporation | 22,855 | 2.3 | 26,062 | 2.1 | (3,207) | (12.3) |
Nidec Copal Electronics Corporation | 25,509 | 2.6 | 26,569 | 2.2 | (1,060) | (4.0) |
Nidec Servo Corporation | 24,537 | 2.5 | 28,927 | 2.4 | (4,390) | (15.2) |
Nidec Shibaura Corporation | 17,653 | 1.8 | 20,919 | 1.7 | (3,266) | (15.6) |
Nidec-Shimpo Corporation | 11,135 | 1.1 | 13,618 | 1.1 | (2,483) | (18.2) |
Nidec Motors & Actuators | 24,744 | 2.5 | 36,636 | 3.0 | (11,892) | (32.5) |
Nidec Nissin Corporation | 10,331 | 1.1 | 11,673 | 1.0 | (1,342) | (11.5) |
All others | 318,943 | 32.6 | 393,750 | 32.4 | (74,807) | (19.0) |
Sub-total | 979,646 | 100.0% | 1,213,138 | 100.0% | (233,492) | (19.2) |
Adjustments and eliminations | (366,188) | - | (484,382) | - | 118,194 | - |
Consolidated total | ¥613,458 | - | ¥728,756 | - | ¥(115,298) | (15.8)% |
33
Yen in millions | ||||||
Year ended March 31, 2009 | Year ended March 31, 2008 | Increase or decrease | ||||
Operating income (loss): | ||||||
Nidec Corporation | ¥7,315 | 14.4% | ¥13,980 | 18.2% | ¥(6,665) | (47.7)% |
Nidec Electronics (Thailand) Co., Ltd. | 15,629 | 30.9 | 12,606 | 16.4 | 3,023 | 24.0 |
Nidec (Zhejiang) Corporation | (324) | (0.6) | 1,040 | 1.4 | (1,364) | (131.2) |
Nidec (Dalian) Limited | 2,855 | 5.6 | 4,720 | 6.1 | (1,865) | (39.5) |
Nidec Singapore Pte. Ltd. | 182 | 0.4 | 1,231 | 1.6 | (1,049) | (85.2) |
Nidec (H.K.) Co., Ltd. | 554 | 1.1 | 576 | 0.7 | (22) | (3.8) |
Nidec Philippines Corporation | 2,321 | 4.6 | 4,129 | 5.4 | (1,808) | (43.8) |
Nidec Sankyo Corporation | 4,473 | 8.8 | 4,608 | 6.0 | (135) | (2.9) |
Nidec Copal Corporation | 2,102 | 4.2 | 3,415 | 4.4 | (1,313) | (38.4) |
Nidec Tosok Corporation | 745 | 1.5 | 1,643 | 2.1 | (898) | (54.7) |
Nidec Copal Electronics Corporation | 2,046 | 4.0 | 3,631 | 4.7 | (1,585) | (43.7) |
Nidec Servo Corporation. | (225) | (0.4) | 372 | 0.5 | (597) | - |
Nidec Shibaura Corporation | (281) | (0.6) | (97) | (0.1) | (184) | - |
Nidec-Shimpo Corporation | 201 | 0.4 | 1,182 | 1.5 | (981) | (83.0) |
Nidec Motors & Actuators | (728) | (1.4) | 555 | 0.7 | (1,283) | - |
Nidec Nissin Corporation | 298 | 0.6 | 610 | 0.8 | (312) | (51.1) |
All others | 13,463 | 26.5 | 22,663 | 29.6 | (9,200) | (40.6) |
Sub-total | 50,626 | 100.0% | 76,864 | 100.0% | (26,238) | (34.1) |
Adjustments and eliminations | 1,180 | - | 678 | - | 502 | - |
Consolidated total | ¥51,806 | - | ¥77,542 | - | ¥(25,736) | (33.2)% |
Notes:
1. The operating segments are the segments of Nidec for which separate financial information is available and for which operating profit or loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance.
2. Segmental profit or loss is determined using the accounting principles in the segment’s country of domicile.
3. Japan Servo Co., Ltd. changed its name to Nidec Servo Corporation as of October 1, 2008. Its subsidiaries
also changed their names as of the date of the change.
34
Marketable securities and other securities investments
Marketable securities and other securities investments include debt and equity securities of which the aggregate fair value, gross unrealized gains and losses and cost are as follows:
Yen in millions | ||||
March 31, 2009 | ||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |
Available-for-sale | ||||
Equity securities | ¥9,285 | ¥3,502 | ¥656 | ¥12,131 |
Debt securities | - | - | - | - |
Held-to-maturity | 201 | - | - | 201 |
Total | ¥9,486 | ¥3,502 | ¥656 | ¥12,332 |
Securities not practicable to fair value | ||||
Equity securities | ¥1,012 |
Yen in millions | ||||
March 31, 2008 | ||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |
Available-for-sale | ||||
Equity securities | ¥6,239 | ¥7,663 | ¥291 | ¥13,611 |
Debt securities | - | - | - | - |
Held-to-maturity | 100 | - | - | 100 |
Total | ¥6,339 | ¥7,663 | ¥291 | ¥13,711 |
Securities not practicable to fair value | ||||
Equity securities | ¥1,562 |
35
Earnings per share
The Earnings per share information are as follows:
For the year ended March 31, 2009
Yen in millions | Thousands of shares | Yen | |
Net income (loss) | Weighted- average shares | Net income per share | |
Basic net income per share | |||
Income from continuing operations | ¥30,740 | 143,616 | ¥214.04 |
Income (loss) from discontinued operations | ¥(2,387) | 143,616 | ¥(16.62) |
Net income | ¥28,353 | 143,616 | ¥197.42 |
Dilutive securities | |||
Stock option | ¥(47) | 2,200 | |
Diluted net income per share | |||
Income from continuing operations | ¥30,693 | 145,816 | ¥210.49 |
Income (loss) from discontinued operations | ¥(2,387) | 145,816 | ¥(16.37) |
Net income | ¥28,306 | 145,816 | ¥194.12 |
For the year ended March 31, 2008
Yen in millions | Thousands of shares | Yen | ||
Net income (loss) | Weighted- average shares | Net income per share | ||
Basic net income per share | ||||
Income from continuing operations | ¥41,879 | 144,914 | ¥288.99 | |
Income (loss) from discontinued operations | ¥(723) | 144,914 | ¥(4.99) | |
Net income | ¥41,156 | 144,914 | ¥284.00 | |
Dilutive securities | ||||
Stock option | - | 4,048 | ||
Diluted net income per share | ||||
Income from continuing operations | ¥41,879 | 148,962 | ¥281.14 | |
Income (loss) from discontinued operations | ¥(723) | 148,962 | ¥(4.85) | |
Net income | ¥41,156 | 148,962 | ¥276.29 |
Subsequent events
Not applicable
36
Supplemental Information (Year ended March 31, 2009)
(1) Quarterly Consolidated Statements of Income
Yen in millions | ||||||
Three months ended March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | % | |
Net sales | ¥107,052 | 100.0 | ¥179,535 | 100.0 | ¥(72,483) | (40.4) |
Cost of products sold | 89,082 | 83.2 | 140,393 | 78.2 | (51,311) | (36.5) |
Selling, general and administrative expenses | 11,525 | 10.8 | 11,772 | 6.6 | (247) | (2.1) |
Research and development expenses | 5,455 | 5.1 | 7,365 | 4.1 | (1,910) | (25.9) |
Operating expenses | 106,062 | 99.1 | 159,530 | 88.9 | (53,468) | (33.5) |
Operating income | 990 | 0.9 | 20,005 | 11.1 | (19,015) | (95.1) |
Other income (expenses): | ||||||
Interest and dividend income | 504 | 807 | (303) | |||
Interest expenses | (350) | (490) | 140 | |||
Foreign exchange gain (loss), net | 6,467 | (10,573) | 17,040 | |||
Gain (loss) from marketable securities, net | (1,375) | 337 | (1,712) | |||
Other, net | (510) | 54 | (564) | |||
Total | 4,736 | 4.4 | (9,865) | (5.5) | 14,601 | - |
Income from continuing operations before income taxes | 5,726 | 5.3 | 10,140 | 5.6 | (4,414) | (43.5) |
Income taxes | (1,127) | (1.0) | (1,787) | (0.9) | 660 | - |
Income from continuing operations before minority interest | 4,599 | 4.3 | 8,353 | 4.7 | (3,754) | (44.9) |
Minority interest in income (loss) of consolidated subsidiaries | (493) | (0.5) | 1,099 | 0.6 | (1,592) | - |
Equity in net loss of affiliated companies | (30) | (0.0) | (46) | (0.0) | 16 | - |
Income from continuing operations | 5,122 | 4.8 | 7,300 | 4.1 | (2,178) | (29.8) |
Income (loss) from discontinued operations | 168 | 0.1 | (447) | (0.3) | 615 | - |
Net income | ¥5,290 | 4.9 | ¥6,853 | 3.8 | ¥(1,563) | (22.8) |
Yen in millions | ||||||
Three months ended | ||||||
June 30, 2008 | September 30, 2008 | December 31, 2008 | ||||
Amount | % | Amount | % | Amount | % | |
Net sales | ¥174,947 | 100.0 | ¥190,273 | 100.0 | ¥141,186 | 100.0 |
Operating income | 18,392 | 10.5 | 22,386 | 11.8 | 10,038 | 7.1 |
Income (loss) from continuing operations before income taxes | 23,083 | 13.2 | 20,298 | 10.7 | (2,078) | (1.5) |
Income (loss) from continuing operations | 15,054 | 8.6 | 12,992 | 6.8 | (2,428) | (1.7) |
Income (loss) from discontinued operations | 55 | 0.0 | (261) | (0.1) | (2,349) | (1.7) |
Net income (loss) | ¥15,109 | 8.6 | ¥12,731 | 6.7 | ¥(4,777) | (3.4) |
37
(2) Business Segment Information
Yen in millions | |||||||||||||||
Year ended March 31, 2009 | |||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and | Other | Total | Eliminations/ Corporate | Consolidated | ||||||||
Net sales: | |||||||||||||||
Customers | ¥314,073 | ¥77,156 | ¥72,090 | ¥122,552 | ¥27,587 | ¥613,458 | ¥- | ¥613,458 | |||||||
Intersegment | 1,654 | 298 | 6,898 | 322 | 4,946 | 14,118 | (14,118) | - | |||||||
Total | 315,727 | 77,454 | 78,988 | 122,874 | 32,533 | 627,576 | (14,118) | 613,458 | |||||||
Operating expenses | 279,610 | 77,992 | 70,547 | 113,624 | 30,592 | 572,365 | (10,713) | 561,652 | |||||||
Operating income (loss) | ¥36,117 | ¥(538) | ¥8,441 | ¥9,250 | ¥1,941 | ¥55,211 | ¥(3,405) | ¥51,806 |
Yen in millions | |||||||||||||||
Year ended March 31, 2008 | |||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and | Other | Total | Eliminations/ Corporate | Consolidated | ||||||||
Net sales: | |||||||||||||||
Customers | ¥385,682 | ¥96,377 | ¥73,253 | ¥145,896 | ¥27,548 | ¥728,756 | ¥- | ¥728,756 | |||||||
Intersegment | 1,260 | 435 | 9,836 | 493 | 4,563 | 16,587 | (16,587) | - | |||||||
Total | 386,942 | 96,812 | 83,089 | 146,389 | 32,111 | 745,343 | (16,587) | 728,756 | |||||||
Operating expenses | 336,011 | 94,174 | 71,401 | 132,648 | 30,067 | 664,301 | (13,087) | 651,214 | |||||||
Operating income | ¥50,931 | ¥2,638 | ¥11,688 | ¥13,741 | ¥2,044 | ¥81,042 | ¥(3,500) | ¥77,542 |
38
Yen in millions | |||||||||||||||
Three months ended March 31, 2009 | |||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and | Other | Total | Eliminations/ Corporate | Consolidated | ||||||||
Net sales: | |||||||||||||||
Customers | ¥55,497 | ¥13,656 | ¥11,769 | ¥21,254 | ¥4,876 | ¥107,052 | ¥- | ¥107,052 | |||||||
Intersegment | 174 | 60 | 569 | 39 | 970 | 1,812 | (1,812) | - | |||||||
Total | 55,671 | 13,716 | 12,338 | 21,293 | 5,846 | 108,864 | (1,812) | 107,052 | |||||||
Operating expenses | 53,438 | 14,611 | 12,088 | 21,428 | 5,671 | 107,236 | (1,174) | 106,062 | |||||||
Operating income (loss) | ¥2,233 | ¥(895) | ¥250 | ¥(135) | ¥175 | ¥1,628 | ¥(638) | ¥990 |
Yen in millions | |||||||||||||||
Three months ended March 31, 2008 | |||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and | Other | Total | Eliminations/ Corporate | Consolidated | ||||||||
Net sales: | |||||||||||||||
Customers | ¥90,356 | ¥25,436 | ¥20,123 | ¥35,841 | ¥7,779 | ¥179,535 | ¥- | ¥179,535 | |||||||
Intersegment | 397 | 196 | 2,529 | 152 | 1,084 | 4,358 | (4,358) | - | |||||||
Total | 90,753 | 25,632 | 22,652 | 35,993 | 8,863 | 183,893 | (4,358) | 179,535 | |||||||
Operating expenses | 77,621 | 24,729 | 19,564 | 32,547 | 8,425 | 162,886 | (3,356) | 159,530 | |||||||
Operating Income | ¥13,132 | ¥903 | ¥3,088 | ¥3,446 | ¥438 | ¥21,007 | ¥(1,002) | ¥20,005 |
39
Notes:
1. Segments are classified based on similarities in product type, product attributes, and production and sales methods.
2. Major products of each business segment:
(1) Small precision motors: Small precision DC motors (including spindle motors for HDDs), small precision fans, brush motors, vibration motors
(2) Mid-size motors: Motors for home electric appliances, automobiles, industrial use
(3) Machinery: Power transmission drives, semiconductor production equipment, precision equipment, factory automation-related equipment
(4) Electronic and Optical components: Electronic components, optical components
(5) Other: Automobile components, pivot assemblies, other components, service etc
(3) Sales by Geographic Segment
Yen in millions | ||||||
Year ended March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | % | |
Japan | ¥306,971 | 50.0 | ¥359,489 | 49.3 | ¥(52,518) | (14.6) |
U.S.A | 12,864 | 2.1 | 19,513 | 2.7 | (6,649) | (34.1) |
Singapore | 37,811 | 6.2 | 56,626 | 7.8 | (18,815) | (33.2) |
Thailand | 93,306 | 15.2 | 109,994 | 15.1 | (16,688) | (15.2) |
Philippines | 12,394 | 2.0 | 13,374 | 1.8 | (980) | (7.3) |
China | 48,555 | 7.9 | 45,398 | 6.2 | 3,157 | 7.0 |
Others | 101,557 | 16.6 | 124,362 | 17.1 | (22,805) | (18.3) |
Total | ¥613,458 | 100.0 | ¥728,756 | 100.0 | ¥(115,298) | (15.8) |
Yen in millions | ||||||
Three months ended March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | % | |
Japan | ¥55,267 | 51.6 | ¥87,124 | 48.5 | ¥(31,857) | (36.6) |
U.S.A | 2,260 | 2.1 | 4,269 | 2.4 | (2,009) | (47.1) |
Singapore | 6,064 | 5.7 | 14,282 | 8.0 | (8,218) | (57.5) |
Thailand | 16,478 | 15.4 | 27,481 | 15.3 | (11,003) | (40.0) |
Philippines | 1,840 | 1.7 | 3,219 | 1.8 | (1,379) | (42.8) |
China | 8,369 | 7.8 | 12,715 | 7.1 | (4,346) | (34.2) |
Others | 16,774 | 15.7 | 30,445 | 16.9 | (13,671) | (44.9) |
Total | ¥107,052 | 100.0 | ¥179,535 | 100.0 | ¥(72,483) | (40.4) |
Note: The sales are classified by geographic areas of the seller and the figures exclude intra-segment transactions.
40
(4) Sales by Region
Yen in millions | ||||||||||
Year ended March 31 | Increase or decrease | |||||||||
2009 | 2008 | |||||||||
Amount | % | Amount | % | Amount | % | |||||
North America | ¥20,196 | 3.3 | ¥31,086 | 4.3 | ¥(10,890) | (35.0) | ||||
Asia | 358,112 | 58.4 | 429,206 | 58.9 | (71,094) | (16.6) | ||||
Other | 41,258 | 6.7 | 53,635 | 7.3 | (12,377) | (23.1) | ||||
Overseas sales total | 419,566 | 68.4 | 513,927 | 70.5 | (94,361) | (18.4) | ||||
Japan | 193,892 | 31.6 | 214,829 | 29.5 | (20,937) | (9.7) | ||||
Consolidated total | ¥613,458 | 100.0 | ¥728,756 | 100.0 | ¥(115,298) | (15.8) | ||||
Yen in millions | ||||||||||
Three months ended March 31 | Increase or decrease | |||||||||
2009 | 2008 | |||||||||
Amount | % | Amount | % | Amount | % | |||||
North America | ¥3,248 | 3.0 | ¥6,775 | 3.8 | ¥(3,527) | (52.1) | ||||
Asia | 60,983 | 57.0 | 103,652 | 57.7 | (42,669) | (41.2) | ||||
Other | 7,200 | 6.7 | 13,306 | 7.4 | (6,106) | (45.9) | ||||
Overseas sales total | 71,431 | 66.7 | 123,733 | 68.9 | (52,302) | (42.3) | ||||
Japan | 35,621 | 33.3 | 55,802 | 31.1 | (20,181) | (36.2) | ||||
Consolidated total | ¥107,052 | 100.0 | ¥179,535 | 100.0 | ¥(72,483) | (40.4) | ||||
Note: The sales are classified by geographic areas of the buyer and the figures exclude intra-segment transactions.
41
5. PARENT COMPANY NON-CONSOLIDATED FINANCIAL STATEMENTS (JAPANESE GAAP)
(1) Non-Consolidated Balance Sheets
Assets | ||||||
Yen in millions | ||||||
March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | ||
Current assets: | ||||||
Cash and bank deposits | ¥45,607 | ¥25,348 | ¥20,259 | |||
Notes receivable | 207 | 612 | (405) | |||
Accounts receivable | 25,880 | 38,937 | (13,057) | |||
Short-term investment securities | 83,900 | - | 83,900 | |||
Finished products | 3,425 | 5,102 | (1,677) | |||
Work in process | 437 | 551 | (114) | |||
Raw materials and supplies | 143 | 206 | (63) | |||
Advance payments-trade | 95 | - | 95 | |||
Prepaid expenses | 265 | 508 | (243) | |||
Deferred income taxes | 1,272 | 1,894 | (622) | |||
Short-term loans to affiliated companies | 40,236 | 40,813 | (577) | |||
Other receivables | 3,969 | 5,023 | (1,054) | |||
Income taxes receivable | 805 | - | 805 | |||
Other current assets | 107 | 98 | 9 | |||
Allowance for doubtful accounts | (787) | (644) | (143) | |||
Total current assets | 205,561 | 44.0 | 118,448 | 32.4 | 87,113 | |
Fixed assets: | ||||||
Tangible assets | 24,768 | 5.3 | 21,795 | 6.0 | 2,973 | |
Buildings | 9,146 | 9,173 | (27) | |||
Structures | 195 | 208 | (13) | |||
Machinery and equipment | 820 | 999 | (179) | |||
Vehicles and delivery equipment | 3 | 4 | (1) | |||
Tools, furniture and fixtures | 1,507 | 1,413 | 94 | |||
Land | 9,572 | 9,484 | 88 | |||
Lease assets | 353 | - | 353 | |||
Construction in process | 3,172 | 514 | 2,658 | |||
Intangible assets | 1,259 | 0.3 | 799 | 0.2 | 460 | |
Patents | 2 | 3 | (1) | |||
Software | 1,195 | 94 | 1,101 | |||
Software in process | 13 | 652 | (639) | |||
Other intangible assets | 49 | 50 | (1) | |||
Investments and other assets | 235,229 | 50.4 | 224,671 | 61.4 | 10,558 | |
Investment securities | 6,930 | 4,609 | 2,321 | |||
Investment securities of affiliated companies | 194,789 | 186,412 | 8,377 | |||
Investments other than securities | 3 | 3 | - | |||
Investment in affiliated companies | 30,196 | 30,225 | (29) | |||
Long-term loans to affiliated companies | 236 | 340 | (104) | |||
Bankruptcy and other claims | 445 | 445 | - | |||
Long-term prepaid expenses | 145 | 106 | 39 | |||
Deferred income taxes | 2,518 | 2,565 | (47) | |||
Other investments | 414 | 413 | 1 | |||
Allowance for doubtful accounts | (447) | (447) | - | |||
Total fixed assets | 261,256 | 56.0 | 247,265 | 67.6 | 13,991 | |
Total assets | ¥466,817 | 100.0 | ¥365,713 | 100.0 | ¥101,104 |
42
Liabilities and Net Assets | ||||||
Yen in millions | ||||||
March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | ||
Current liabilities: | ||||||
Notes payable | ¥62 | ¥111 | ¥(49) | |||
Accounts payable | 13,632 | 23,249 | (9,617) | |||
Short-term borrowings | 213,422 | 64,110 | 149,312 | |||
Current portion of bonds | - | 27,089 | (27,089) | |||
Lease obligations | 130 | - | 130 | |||
Accrued liabilities | 2,584 | 4,612 | (2,028) | |||
Accrued expenses | 491 | 650 | (159) | |||
Income taxes payable | - | 341 | (341) | |||
Advances received | 30 | 1 | 29 | |||
Deposits received | 19,930 | 17,136 | 2,794 | |||
Deferred credit | 576 | 773 | (197) | |||
Accrued bonuses to employees | 867 | 1,604 | (737) | |||
Notes payable for construction | 0 | 4 | (4) | |||
Other current liabilities | 7 | 29 | (22) | |||
Total current liabilities | 251,731 | 54.0 | 139,709 | 38.2 | 112,022 | |
Non-current liabilities: | ||||||
Lease obligations | 226 | - | 226 | |||
Accrued severance and benefit costs | 1,377 | 1,205 | 172 | |||
Other non-current liabilities | 899 | 1,442 | (543) | |||
Total non-current liabilities | 2,502 | 0.5 | 2,647 | 0.7 | (145) | |
Total liabilities | 254,233 | 54.5 | 142,356 | 38.9 | 111,877 | |
Shareholders’ equity: | ||||||
Common stock | 66,551 | 14.3 | 66,248 | 18.1 | 303 | |
Additional paid-in capital | 70,772 | 15.2 | 70,469 | 19.3 | 303 | |
Capital reserve | 70,772 | 70,469 | 303 | |||
Retained earnings | 99,484 | 21.4 | 86,697 | 23.7 | 12,787 | |
Legal reserve | 721 | 721 | - | |||
General reserve | 75,650 | 63,650 | 12,000 | |||
Earned surplus carried forward | 23,113 | 22,326 | 787 | |||
Treasury stock | (24,056) | (5.3) | (281) | (0.1) | (23,775) | |
Total shareholders’ equity | 212,751 | 45.6 | 223,133 | 61.0 | (10,382) | |
Valuation and translation adjustments: | ||||||
Net unrealized loss on securities | 288 | 0.0 | 863 | 0.3 | (575) | |
Land revaluation reserve | (455) | (0.1) | (639) | (0.2) | 184 | |
Total valuation and translation adjustments | (167) | (0.1) | 224 | 0.1 | (391) | |
Total net assets | 212,584 | 45.5 | 223,357 | 61.1 | (10,773) | |
Total liabilities and net assets | ¥466,817 | 100.0 | ¥365,713 | 100.0 | ¥101,104 |
43
(2) Non-Consolidated Statements of Income
Yen in millions | ||||||
Year ended March 31 | Increase or decrease | |||||
2009 | 2008 | |||||
Amount | % | Amount | % | Amount | % | |
Net sales | ¥134,324 | 100.0 | ¥189,253 | 100.0 | ¥(54,929) | (29.0) |
Cost of sales | 112,815 | 84.0 | 160,356 | 84.7 | (47,541) | (29.6) |
Gross profit | 21,509 | 16.0 | 28,897 | 15.3 | (7,388) | (25.6) |
Selling, general and administrative expenses | 14,194 | 10.6 | 14,917 | 7.9 | (723) | (4.8) |
Operating income | 7,315 | 5.4 | 13,980 | 7.4 | (6,665) | (47.7) |
Other income | 20,682 | 15.4 | 18,024 | 9.6 | 2,658 | 14.7 |
Interest income | 1,632 | 2,414 | (782) | |||
Dividend income | 17,954 | 14,550 | 3,404 | |||
Other | 1,096 | 1,060 | 36 | |||
Other expenses | 2,878 | 2.1 | 10,697 | 5.7 | (7,819) | (73.1) |
Interest expenses | 937 | 1,596 | (659) | |||
Sales discount | 100 | 168 | (68) | |||
Provision of allowance for doubtful accounts | 320 | - | 320 | |||
Foreign exchange loss, net | 878 | 8,453 | (7,575) | |||
Other | 643 | 480 | 163 | |||
Recurring profit | 25,119 | 18.7 | 21,307 | 11.3 | 3,812 | 17.9 |
Extraordinary gains | 560 | 0.4 | 4,716 | 2.5 | (4,156) | (88.1) |
Gain from sale of fixed assets | 3 | 5 | (2) | |||
Gain from sale of marketable securities | 1 | 2 | (1) | |||
Gain from reversal of allowance for doubtful accounts | 66 | 969 | (903) | |||
Technical income | - | 3,247 | (3,247) | |||
Gain on sale of investment securities of affiliated companies | 399 | 493 | (94) | |||
Gain on sale of investment in affiliated companies | 91 179 | - 434 | 91 (255) | |||
Extraordinary losses | 0.1 | 0.3 | (58.8) | |||
Loss on disposal of property, plant and equipment | 28 | 30 | (2) | |||
Loss on write-down of investment securities | 143 | 281 | (138) | |||
Loss on sale of investment securities of affiliated companies | - | 120 | (120) | |||
Loss on impairment | 6 2 | 3 - | 3 2 | |||
Other | ||||||
Income before income taxes | 25,500 | 19.0 | 25,589 | 13.5 | (89) | (0.3) |
Income taxes (Current) | 2,762 | 2.1 | 4,140 | 2.1 | (1,378) | |
Income taxes (Deferred) | 1,069 | 0.8 | (70) | (0.0) | 1,139 | |
Net income | ¥21,669 | 16.1 | ¥21,519 | 11.4 | ¥150 | 0.7 |
Note: Certain reclassifications in the income statement for the year ended March 31, 2008 have been made to conform to the presentation used for the year ended March 31, 2009.
44
(3) Non-Consolidated Statements of Shareholders' Equity
For the fiscal year ended March 31, 2009
Yen in millions | ||||||||||||||
Shareholders' equity | ||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Total | ||||||||||
Capital reserve | Legal reserve | Other retained earnings | ||||||||||||
General reserve | Earned surplus carried forward | |||||||||||||
Balance at March 31, 2008 | ¥66,248 | ¥70,469 | ¥721 | ¥63,650 | ¥22,326 | ¥(281) | ¥223,133 | |||||||
Issuance of new shares | 303 | 303 | 606 | |||||||||||
Cash dividends | (8,699) | (8,699) | ||||||||||||
General reserve | 12,000 | (12,000) | - | |||||||||||
Net income | 21,669 | 21,669 | ||||||||||||
Purchase of treasury stock | (23,775) | (23,775) | ||||||||||||
Net increase / decrease during the term under review except in shareholders' equity | (183) | (183) | ||||||||||||
Total increase / decrease during the term under review | 303 | 303 | - | 12,000 | 787 | (23,775) | (10,382) | |||||||
Balance at March 31, 2009 | ¥66,551 | ¥70,772 | ¥721 | ¥75,650 | ¥23,113 | ¥(24,056) | ¥212,751 |
Yen in millions | ||||||
Valuation and translation adjustments | ||||||
Net unrealized loss on securities | Land revaluation reserve | Total net assets | ||||
Balance at March 31, 2008 | ¥863 | ¥(639) | ¥223,357 | |||
Issuance of new shares | 606 | |||||
Cash dividends | (8,699) | |||||
General reserve | - | |||||
Net income | 21,669 | |||||
Purchase of treasury stock | (23,775) | |||||
Net increase / decrease during the term under review except in shareholders' equity | (575) | 183 | (575) | |||
Total increase / decrease during the term under review | (575) | 183 | (10,773) | |||
Balance at March 31, 2009 | ¥288 | ¥(455) | ¥212,584 |
45
For the fiscal year ended March 31, 2008
Yen in millions | ||||||||||||||
Shareholders' equity | ||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Total | ||||||||||
Capital reserve | Legal reserve | Other retained earnings | ||||||||||||
General reserve | Earned surplus carried forward | |||||||||||||
Balance at March 31, 2007 | ¥65,868 | ¥70,089 | ¥721 | ¥56,150 | ¥15,549 | ¥(262) | ¥208,115 | |||||||
Issuance of new shares | 380 | 380 | 760 | |||||||||||
Cash dividends | (7,242) | (7,242) | ||||||||||||
General reserve | 7,500 | (7,500) | - | |||||||||||
Net income | 21,519 | 21,519 | ||||||||||||
Purchase of treasury stock | (19) | (19) | ||||||||||||
Net increase / decrease during the term under review except in shareholders' equity | - | |||||||||||||
Total increase / decrease during the term under review | 380 | 380 | - | 7,500 | 6,777 | (19) | 15,018 | |||||||
Balance at March 31, 2008 | ¥66,248 | ¥70,469 | ¥721 | ¥63,650 | ¥22,326 | ¥(281) | ¥223,133 |
Yen in millions | ||||||
Valuation and translation adjustments | ||||||
Net unrealized loss on securities | Land revaluation reserve | Total net assets | ||||
Balance at March 31, 2007 | ¥1,529 | ¥(639) | ¥209,005 | |||
Issuance of new shares | 760 | |||||
Cash dividends | (7,242) | |||||
General reserve | - | |||||
Net income | 21,519 | |||||
Purchase of treasury stock | (19) | |||||
Net increase / decrease during the term under review except in shareholders' equity | (666) | (666) | ||||
Total increase / decrease during the term under review | (666) | - | 14,352 | |||
Balance at March 31, 2008 | ¥863 | ¥(639) | ¥223,357 |
46
Notes regarding Going Concern Assumption
Not applicable.
Critical accounting policies
1. Securities:
(1) Investments in subsidiaries and affiliated companies:
Valuation at cost, with cost determined using the moving average method
(2) Other securities with fair value:
Stated at fair value based on market price as of March 31, 2009 (Both unrealized gains and losses are reported as net unrealized loss on securities. The cost of other securities sold is computed using the moving average method.)
(3) Other securities not practicable to fair value:
Stated at cost determined using the moving average method.
2. Derivatives:
Stated at fair value
3. Inventories:
(1) Finished products, raw materials, work in process:
Cost method using the moving average method
(Method of devaluation of book values based on the reduction of profitability for values on the balance sheets )
(2) Supplies:
Cost method using the last purchase price method
(Method of devaluation of book values based on the reduction of profitability for values on the balance sheets )
Change in accounting policy
Accounting standard for Measurement of Inventories (ASBJ Statement No.9, 5 July 2006) are adopted from this fiscal period ended March 31, 2009.
As a result of the adoption of the new standard, the evaluation standards for finished products, raw materials and work in process were changed from stated at the lower of cost or market method with cost determined using the moving average method to cost method using the moving average method (method of devaluation of book values based on the reduction of profitability for values on the balance sheets). The standards for supplies were changed from stated at the lower of cost or market method with cost determined using the last purchase price method to cost method with cost determined using the last purchase price method (method of devaluation of book values based on the reduction of profitability for values on the balance sheets ).
There was no effect on profit or loss from above changes.
Change of representation of accounts in the non-consolidated financial statement
The non-consolidated financial statements are prepared based on the revised Rules for Financial statements in accordance with the provision of Item 5, paragraph 1, Article 2 of the supplementary rules of the “Cabinet Order for Partial Revision of Regulation for Terminology, Forms and Preparation of Financial Statement “(Cabinet Order No. 50 of 7 August 2008).
47
4. Method of depreciation of fixed assets:
(1) Tangible fixed assets: Declining balance method (The lease asset is excluded.)
Stated based on the declining-balance method except for
(a)Buildings purchased after April 1, 1998, for which the straight-line method is applied. Major economic lives of tangible fixed assets are as follows:
Buildings and structures 3 to 50 years
Machinery and equipment 2 to 9 years
(b)Tangible fixed assets purchased on or before March 31, 2007 are depreciated in five years based on the straight line method from the fiscal year after the assets are depreciated to their depreciation limits.
(2) Intangible fixed assets: (The lease asset is excluded.)
Straight-line method
With respect to software for internal use, amortization is computed on the straight-line method over the expected useful life (mainly 5 years).
(3)Lease assets:
Straight-line method
The Lease period is considered as useful lives of lease assets, straight-line method utilizes the residual value of zero.
5. Accounting for deferred assets:
Recognized as expenses
6. Translation of foreign currencies:
Assets and liabilities denominated in foreign currencies are translated at the exchange rate on March 31, 2009, with the resulting difference included in gains or losses.
7. Accounting for allowances:
(1) Allowances for doubtful accounts:
Appropriate allowances are made for general receivables based on the historical rate of credit loss experienced. Specific doubtful accounts are investigated on an individual basis, and the amounts of estimated losses are provided.
(2) Accrued bonuses to employees:
Estimated amount for payment to employees
(3) Accrued severance and benefit costs:
Provision of employee retirement and severance benefits are stated on the projected benefit obligation less pension plan assets at the end of the fiscal year.
Unrecognized actuarial gain or loss is being recognized over average remaining years of service (within 5 years) from the next fiscal year of its accrual.
48
Change in accounting policy
The Company adopted “Amendment of Accounting Standards for Retirement Benefits” “Part 3” (Accounting Standard No.19, which was issued on July 31, 2008) from the fiscal year ended March 31, 2009 voluntarily. Actuarial losses (gains) are recognized as incurred from the next fiscal year of its accrual. The changes in this accounting policy treatment did not have a material impact on the statements of income. Resulting from the adoption of these standards, our outstanding balance for retirement benefits is ¥395 million as of March 31, 2009.
8. Leases:
Lessee: Financial leases other than those that are deemed to transfer the ownership of the leased assets to the lessees are accounted for by a method applied to normal sales transactions.
Change of Important Items Regarding the Basis of Preparation of Financial Statements:
Accounting standards for lease transactions and guidance on accounting standards for lease transactions are adopted from this fiscal year ended March 31, 2009. The accounting treatment for financial lease transactions that do not transfer ownership were changed from by a method similar to ordinary rental transactions to by a method applied to ordinary sales and purchase transactions.
The accounting treatment for financial lease transactions that do not transfer ownership before this new rule were changed to the method applied to that do not transfer ownership. As a result, income before income taxes was decrease by ¥2 million.
9. Hedge activities:
(1) Hedge accounting policy:
Assets and liabilities denominated in foreign currencies with foreign currency forward contracts are translated at forward contract rates.
(2) Method and object of hedge:
(a) Method of hedge: Forward exchange contracts
(b) Object of hedge: Exposure to fluctuations in fair value and the fixed cash flow, such as foreign currency receivables.
(3) Hedge policy:
In order to reduce market risk exposures from fluctuations in foreign exchange rate and interest rates, Nidec has a comprehensive and flexible stance towards hedging.
(4) Evaluating effectiveness of hedging activities:
With regard to forward exchange contracts, Nidec omitted evaluating the effectiveness if the denominated currency, the notional amount, and the contract period are the same.
10. Other important items regarding the basis of preparation of financial statements:
(1) Accounting for consumption taxes:
Computed by the net of tax method
(2) Application of consolidated taxation system:
Consolidated taxation system
49
Notes to Non-Consolidated Balance Sheets
1. Depreciation amount deducted from acquisition cost of tangible fixed assets
Yen in millions | ||
As of March 31, 2009 | As of March 31, 2008 | |
Buildings | ¥26 | ¥26 |
2. Accumulated depreciation of tangible fixed assets
Yen in millions | ||
As of March 31, 2009 | As of March 31, 2008 | |
Accumulated depreciation of tangible fixed assets | ¥15,474 | ¥14,989 |
3. Deposits received included in the Cash Management System (CMS)
Yen in millions | ||
As of March 31, 2009 | As of March 31, 2008 | |
Deposits received | ¥19,771 | ¥16,998 |
4. Loan commitment agreements
The company concluded master agreements for CMS that have set out the availability granted among companies. The remaining portion of credit line which has not been loaned to the company under these agreements is as follows:
Yen in millions | ||
As of March 31, 2009 | As of March 31, 2008 | |
Total availability granted by CMS | ¥29,047 | ¥37,252 |
Used portion of credit line | 18,467 | 18,676 |
Remaining portion of credit line | ¥10,580 | ¥18,576 |
Number of subsidiaries | 14 companies | 15 companies |
5. Contingent liabilities
As of March 31, 2009
Nidec guarantees the debt of Nidec Motors & Actuators (Spain),S.A. and Nidec Singapore Pte. Ltd. such as through keepwell agreement.
Affiliated company | Amount | Contents |
Nidec Motors & Actuators(Spain),S.A. | ¥242 million (1,866 thousand EUR) | Bank loan payable |
Nidec Singapore Pte. Ltd. | ¥443 million (6,851 thousand SGD) | Tax debt |
As of March 31, 2008
Nidec guarantees the debt of Nidec Motors & Actuators (Spain),S.A. such as through keepwell agreement.
Affiliated company | Amount | Contents |
Nidec Motors & Actuators(Spain),S.A. | ¥295 million (1,866 thousand EUR) | Bank loan payable |
50
Note to Non-Consolidated Statements of Income
1. Research and development expenses
Yen in millions | |||
Year ended March, 31 | |||
2009 | 2008 | ||
Research and development expenses included in SG&A expenses and cost of sales | ¥13,937 | ¥15,604 |
Note to Statement of Shareholders' Equity
For the year ended March 31, 2009
1. Type and number of issued and outstanding
(Unit: shares) | |||||||
Number of shares as of March 31, 2008 | Increase during the fiscal year | Decrease during the fiscal year | Number of shares as of March 31, 2009 | ||||
Common stock (Note) | 144,987,492 | 87,588 | - | 145,075,080 |
Note: Increase in the number of 87,588 shares of common stock is due to conversions of convertible bonds.
2. Type and number of treasury stock
(Unit: shares) | |||||||
Number of shares as of March 31, 2008 | Increase during the fiscal year | Decrease during the fiscal year | Number of shares as of March 31, 2009 | ||||
Common stock (Note) | 47,495 | 5,735,376 | - | 5,782,871 |
Note: Increase in the number of 2,776 shares of common stock held in treasury is due to repurchase of odd-lot shares.
Increase in the number of 5,732,600 shares of common stock is based on the resolution of the board of directors.
3. New share and treasury stock acquisition rights
Breakdown of new share acquisition rights | Purpose of new share acquisition rights and stock category | New share acquisition rights by purpose (Number of shares) | Value as of March 31, 2009 (Yen in millions) | |||
March 31, 2008 | Increase during the fiscal year | Decrease during the fiscal year | March 31, 2009 | |||
The yen-denominated convertible bonds with stock acquisition rights due 2008 | Common stock | 4,022,040 | - | 4,022,040 | - | - |
Note: Decrease in the number of 4,022,040 shares, "The yen-denominated convertible bonds with stock acquisition rights due 2008" in treasury is due to the decrease of 87,588 shares due to conversion and 3,934,452 shares due to the redemption on October 17, 2008.
51
4. Dividends
(1) Cash dividends paid
Date of resolution | Type of shares | Amount of dividend payment | Dividends per share | Record date | Effective date | ||||
Board of Directors Meeting on May 26, 2008 | Common stock | ¥4,348 million | ¥30.00 | March 31, 2008 | June 10, 2008 | ||||
Board of Directors Meeting on October 27, 2008 | Common stock | ¥4,351 million | ¥30.00 | September 30, 2008 | December 5, 2008 |
(2) Dividends which have effective date is the next fiscal year
The declaration of dividends are as follows:
Date of resolution | Type of shares | Amount of dividend payment | Source of dividends | Dividends per share | Record date | Effective date | |||||
Board of Directors Meeting on May 21, 2009 | Common stock | ¥4,179 million | Retained earnings | ¥30.00 | March 31, 2009 | June 8, 2009 |
For the year ended March 31, 2008
1. Type and number of issued and outstanding
(Unit: shares) | |||||||
Number of shares as of March 31, 2007 | Increase during the fiscal year | Decrease during the fiscal year | Number of shares as of March 31, 2008 | ||||
Common stock (Note) | 144,780,492 | 207,000 | - | 144,987,492 |
Note: Increase in the number of 207,000 shares of common stock is due to exercise of stock options.
2. Type and number of treasury stock
(Unit: shares) | |||||||
Number of shares as of March 31, 2007 | Increase during the fiscal year | Decrease during the fiscal year | Number of shares as of March 31, 2008 | ||||
Common stock (Note) | 44,966 | 2,529 | - | 47,495 |
Note: Increase in the number of 2,529 shares of common stock held in treasury is due to repurchase of odd-lot shares.
3. New share and treasury stock acquisition rights
Breakdown of new share acquisition rights | Purpose of new share acquisition rights and stock category | New share acquisition rights by purpose (Number of shares) | Value as of March 31, 2008 (Yen in millions) | |||
March 31, 2007 | Increase during the fiscal year | Decrease during the fiscal year | March 31, 2008 | |||
Stock option (Note) | Common stock | 232,000 | - | 232,000 | - | - |
The yen denominated convertible bonds with stock acquisition rights due 2008 | Common stock | 4,022,040 | - | - | 4,022,040 | 27,000 |
Note: Decrease in the number of 232,000 shares of stock option is due to the execution and invalid of the rights.
52
4. Dividends
(1) Cash dividends paid
Date of resolution | Type of shares | Amount of dividend payment | Dividends per share | Record date | Effective date | ||||
Board of Directors Meeting on May 26, 2007 | Common stock | ¥3,618 million | ¥25.00 | March 31, 2007 | June 8, 2007 | ||||
Board of Directors Meeting on October 26, 2007 | Common stock | ¥3,624 million | ¥25.00 | September 30, 2007 | December 7, 2007 |
(2) Dividends which have effective date is the next fiscal year
Date of resolution | Type of shares | Amount of dividend payment | Source of dividends | Dividends per share | Record date | Effective date | |||||
Board of Directors Meeting on May 26, 2008 | Common stock | ¥4,348 million | Retained earnings | ¥30.00 | March 31, 2008 | June 10, 2008 |
Notes to Marketable Securities
As of March 31, 2009
Investments in subsidiaries and affiliated companies available for fair value
Yen in millions | |||||
Carrying amount | Fair value | Difference | |||
Investment in subsidiaries | ¥137,136 | ¥114,985 | ¥(22,151) |
As of March 31, 2008
Investments in subsidiaries and affiliated companies available for fair value
Yen in millions | |||||
Carrying amount | Fair value | Difference | |||
Investment in subsidiaries | ¥128,037 | ¥197,474 | ¥69,437 |
53
Notes to Accounting for income tax
1. Details for deferred tax assets and liabilities
Yen in millions | ||
Year ended March 31 | ||
2009 | 2008 | |
Deferred tax assets (current): | ||
Disallowed provisions for bad debts | ¥319 | ¥261 |
Disallowed provisions for accrued bonus | 355 | 730 |
Disallowed unpaid business tax | 226 | 327 |
Write-down of inventories | 45 | 153 |
Disallowed accrued expense | 85 | 115 |
Allowed deferred credit | 220 | 302 |
Others | 29 | 32 |
Subtotal | 1,279 | 1,920 |
Valuation allowance | (7) | (26) |
Total | 1,272 | 1,894 |
Deferred tax assets, net (current) | 1,272 | 1,894 |
Deferred tax assets (non-current): | ||
Valuation loss on investment securities | 86 | 87 |
Disallowed depreciation | 110 | 211 |
Disallowed loss on retirement of fixed assets | 322 | 318 |
Accrued severance and benefit costs | 593 | 514 |
Accrued retirement benefit to directors | 9 | 9 |
Foreign tax credit to be unused | 1,018 | 1,034 |
Allowed long-term deferred credit | 336 | 559 |
Impairment loss of fixed assets | 162 | 167 |
Loss on write-down of investments in subsidiaries | 458 | 458 |
Disallowed advances paid | 162 | 345 |
Others | 9 | 9 |
Subtotal | 3,265 | 3,711 |
Valuation allowance | (547) | (547) |
Total | 2,718 | 3,164 |
Deferred tax liabilities (non-current): | ||
Net unrealized loss on securities | 200 | 599 |
Total | 200 | 599 |
Deferred tax assets, net (non-current) | ¥2,518 | ¥2,565 |
54
2. Details for the difference between statutory rate of taxation and obligation rate based on the tax effect accounting
Year ended March 31 | ||
2009 | 2008 | |
Statutory rate of taxation | 41.0% | 41.0% |
(Adjustments) | ||
Disallowed expenses such as entertainment | 0.2 | 0.5 |
Disallowed profit such as dividend income | (5.4) | (5.2) |
Foreign tax credit | (20.2) | (16.7) |
Inhabitant tax per capita levy | 0.1 | 0.1 |
Valuation allowance | (0.1) | (0.8) |
Others | (0.6) | (3.0) |
Obligation rate based on the tax effect accounting | 15.0% | 15.9% |
Subsequent event
Not applicable
6. Change in Director
1. Proposed change in Representative Director
Not applicable
2. Proposed changes in other Members of the Board of Directors and Corporate Auditors
(1) Change in a position
Name | New position | Currently position |
Yasunobu Toriyama | Member of the Board, Executive Vice President | Member of the Board, Executive Vice President and Chief Financial Officer |
Tadaaki Hamada | Member of the Board, First Senior Vice President | Member of the Board, Senior Vice President |
Masuo Yoshimatsu | Member of the Board, Senior Vice President and Chief Financial Officer | Member of the Board, Vice President |
(2) New Full-time Corporate Auditor
Name | Currently position |
Takashi Iwata | Vice President |
(3) Retiring Corporate Auditor
Name | Currently position |
Ryoji Takahashi | full-time Corporate Auditor |
Ryoji Takahashi will be appointed as Non Full-time Corporate Auditor and Full-time Corporate Auditor of Nidec Sankyo Corporation on June 15, 2009.
55
3. Proposed changes in Executive Officers
(1) New Executive Officers
Name | Currently position |
Tatsuya Nishimoto | Executive Officer ,Sumitomo Mitsui Banking Corporation |
Mitsuru Tsuyoshi | Representative Director and President, Nidec (H.K.) Co., Ltd., Representative Director and Chairman, Nidec Taiwan Corporation, Representative Director and Chairman, Nidec (Shanghai) International Trading Co., Ltd., Member of the Board and President, Nidec (New Territories) Co., Ltd. |
Chiaki Sano | Senior General Manager Finance Dept. |
(2) Change in position
Name | New position | Currently position |
Tsuyoshi Takahashi | Senior Vice President | Vice President |
(3) Retiring Executive Officers
Name | Currently position |
Takashi Iwata | Vice President |
Akira Kagata | Vice President |
Takashi Iwata will be appointed as Full-time Corporate Auditor on June 23, 2009.
Akira Kagata will be appointed as Full-time Corporate Advisor on June 23, 2009.
Election of new directors will be submitted for, and subject to, approval at the Company's Ordinary General Meeting of Shareholders to be held on June 23, 2009.
56
Special Mentions
(1) Summary of Consolidated Financial Performance for the year ended March 31, 2009
Yen in millions (except for per share amounts) | ||||||
Year ended March 31 | Increase or decrease | Three months ended March 31 | Increase or decrease | |||
2009 | 2008 | 2009 | 2008 | |||
Net sales | ¥613,458 | ¥728,756 | (15.8)% | ¥107,052 | ¥179,535 | (40.4)% |
Operating income | 51,806 | 77,542 | (33.2)% | 990 | 20,005 | (95.1)% |
Ratio of operating income to net sales | 8.4% | 10.6% | 0.9% | 11.1% | ||
Income from continuing operations before income taxes | 47,029 | 64,255 | (26.8)% | 5,726 | 10,140 | (43.5)% |
Ratio of income before income taxes to net sales | 7.7% | 8.8% | 5.3% | 5.6% | ||
Net income | 28,353 | 41,156 | (31.1)% | 5,290 | 6,853 | (22.8)% |
Ratio of net income to net sales | 4.6% | 5.6% | 4.9% | 3.8% | ||
Net income per share -basic | ¥197.42 | ¥284.00 | ¥37.67 | ¥47.28 | ||
Net income per share -diluted | ¥194.12 | ¥276.29 | ¥- | ¥46.01 | ||
Total assets | ¥702,884 | ¥671,714 | ||||
Shareholders’ equity | 297,148 | 319,584 | ||||
Shareholders’ equity to total assets | 42.3% | 47.6% | ||||
Shareholders’ equity per share | ¥2,133.27 | ¥2,204.94 | ||||
Net cash provided by operating activities | ¥66,231 | ¥94,816 | ||||
Net cash used in investing activities | (52,659) | (43,724) | ||||
Net cash provided by (used in) financing activities | 91,160 | (27,280) | ||||
Cash and cash equivalents at end of period | ¥200,966 | ¥100,809 |
Note: Some items colored in the above table are omitted, because we also omit them in the report in Japanese language.
(2) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: | 131 |
Number of affiliated companies accounted for under the equity method: | 3 |
(3) Change in Scope of Consolidation and Application of Equity Method
Change from March 31, 2008 | |
Number of companies newly consolidated: | 6 |
Number of companies excluded from consolidation: | 3 |
Number of companies newly accounted for by the equity method: | - |
Number of companies excluded from accounting by the equity method: | 2 |
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