UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of July 2014.
Commission File Number: 333-13896
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): _
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: July 23, 2014 | ||||
NIDEC CORPORATION | ||||
By: /S/ Masahiro Nagayasu | ||||
General Manager, Investor Relations |
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NEWS RELEASE
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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@nidec.com |
UNAUDITED INTERIM FINANCIAL STATEMENTS (U.S. GAAP)
(English Translation)
RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2014
FROM APRIL 1, 2014 TO JUNE 30, 2014
CONSOLIDATED
Released on July 23, 2014
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NIDEC CORPORATION
Stock Listings: Tokyo Stock Exchange, New York Stock Exchange
Head Office: Kyoto, Japan
Date of Filing of Japanese Quarterly Securities Report (Plan): August 11, 2014
1. Selected Consolidated Financial Performance Information for the Three Months Ended June 30, 2014 (U.S. GAAP) (unaudited)
(1) Consolidated Results of Operations
Yen in millions (except for per share amounts) | ||
Three months ended June 30 | ||
2014 | 2013 | |
Net sales | ¥240,188 | ¥211,276 |
Ratio of change from the same period of previous fiscal year | 13.7% | 18.0% |
Operating income | 25,552 | 18,047 |
Ratio of change from the same period of previous fiscal year | 41.6% | (18.6)% |
Income before income taxes | 24,971 | 17,366 |
Ratio of change from the same period of previous fiscal year | 43.8% | (5.3)% |
Net income attributable to Nidec Corporation | 17,917 | 13,346 |
Ratio of change from the same period of previous fiscal year | 34.2% | 0.5% |
Net income attributable to Nidec Corporation per share-basic | ¥64.96 | ¥49.73 |
Net income attributable to Nidec Corporation per share-diluted | ¥60.93 | ¥46.42 |
Notes:
1. Comprehensive income attributable to Nidec Corporation:
¥10,265 million of comprehensive income attributable to Nidec Corporation for the three months ended June 30, 2014 (69.1% decrease compared to the three months ended June 30, 2013)
¥33,251 million of comprehensive income attributable to Nidec Corporation for the three months ended June 30, 2013
2. We implemented a two-for-one stock split of our common stock effective April 1, 2014. The previously reported net income attributable to Nidec Corporation per share-basic and net income attributable to Nidec Corporation per share-diluted have been retroactively adjusted to reflect the stock split.
(2) Consolidated Financial Position
Yen in millions (except for per share amounts) | ||
June 30, 2014 | March 31, 2014 | |
Total assets | ¥1,170,838 | ¥1,165,918 |
Total equity | 543,780 | 540,905 |
Nidec Corporation shareholders’ equity | 520,758 | 518,101 |
Nidec Corporation shareholders’ equity to total assets | 44.5% | 44.4% |
Nidec Corporation shareholders’ equity per share | ¥1,888.16 | ¥1,878.50 |
Note: We implemented a two-for-one stock split of our common stock effective April 1, 2014. The previously reported Nidec Corporation shareholders’ equity per share has been retroactively adjusted to reflect the stock split.
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2. Dividends (unaudited)
Yen | ||
Year ending March 31, 2015 (target) | Year ended March 31, 2014 (actual) | |
Interim dividend per share | ¥30.00 | ¥45.00 |
Year-end dividend per share | 30.00 | 55.00 |
Annual dividend per share | ¥60.00 | ¥100.00 |
Notes:
1. Revision of previously announced dividend targets during this reporting period: Yes
2. We implemented a two-for-one stock split of our common stock effective April 1, 2014. However, the actual amounts of dividends for the year ended March 31, 2014 have not been retroactively adjusted and are shown on a pre-stock split basis.
3. Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2015)
Yen in millions (except for per share amounts) | ||
Six months ending September 30, 2014 | Year ending March 31, 2015 | |
Net sales | ¥460,000 | ¥960,000 |
Operating income | 50,000 | 105,000 |
Income before income taxes | 49,000 | 103,000 |
Net income attributable to Nidec Corporation | 33,500 | 69,000 |
Net income attributable to Nidec Corporation per share-basic | ¥121.46 | ¥250.18 |
Note:
Revision of the previously announced financial performance forecast during this reporting period: Yes
4. Others
(1) Changes in significant subsidiaries (changes in “specified subsidiaries” (tokutei kogaisha) accompanying changes in the scope of consolidation) during this period: None
(2) Adoption of simplified accounting methods and accounting methods used specifically for quarterly consolidated financial statements: Yes (See “2. Others” on page 16 for detailed information.)
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(3) Changes in accounting policies, procedures and presentation rules applied in the preparation of the interim consolidated financial statements
1. Changes due to revisions to accounting standards: Yes (See “2. Others” on page 16 for detailed information.)
2. Changes due to other reasons: None
(4) Number of shares issued (common stock)*
1. Number of shares issued and outstanding at the end of each period (including treasury stock):
290,150,160 shares at June 30, 2014
290,150,160 shares at March 31, 2014
2. Number of treasury stock at the end of each period:
14,347,768 shares at June 30, 2014
14,343,952 shares at March 31, 2014
3. Weighted-average number of shares issued and outstanding at the beginning and end of each period:
275,802,720 shares for the three months ended June 30, 2014
268,361,914 shares for the three months ended June 30, 2013
*Note: We implemented a two-for-one stock split of our common stock effective April 1, 2014. The previously reported share numbers have been retroactively adjusted to reflect the stock split.
Investor presentation materials relating to our financial results for the three months ended June 30, 2014, are expected to be published on our corporate website on July 23, 2014.
Pursuant to ASC 805 “Business Combinations,” the previous year’s consolidated financial statements have been retrospectively adjusted to reflect our valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition of SCD Co., Ltd. (“SCD”) and Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd. (“Nidec Kaiyu”) in the fiscal year ended March 31, 2013. During the three months ended September 30, 2013, we completed our valuation of such assets and liabilities of SCD and Nidec Kaiyu.
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1. Operating and Financial Review and Prospects
(1) Analysis of Operating Results
1. Overview of Business Environment for the Three Months Ended June 30, 2014
During the three months ended June 30, 2014, the global economy continued to maintain a cautious trend, including optimism being limited in the United States in light of the anticipated further tapering of the FRB’s quantitative monetary easing program, and growing concerns over worsening deflation in Europe that led to the introduction of negative interest rates. In addition, in China and other developing countries, concerns over the monetary and financial markets grew while domestic consumption weakened and foreign investments declined. In Japan, the economic recovery generally remained weak although the adverse effect on consumption of the consumption tax rate increase in April 2014 began to attenuate slowly.
In such business environment, we continued to pursue our “second growth phase” strategy with a goal to improve profitability while accelerating growth. As a result, our consolidated net sales for the three months ended June 30, 2014 increased 5% compared to the three months ended March 31, 2014, achieving the largest quarterly net sales in our history for a second consecutive quarter. Operating income increased for a fifth consecutive quarter. In addition, we recorded approximately ¥9.0 billion in operating income from the automotive, appliance, commercial and industrial product businesses, which are our two strategic focus business areas.
In light of the operating results for the three months ended June 30, 2014 that exceeded our previously announced forecast, we have decided to revise upward our previously announced financial performance forecast and interim and year-end dividend targets for the six months ending September 30, 2014 and the fiscal year ending March 31, 2015, respectively, as described elsewhere in this report.
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2. Consolidated Operating Results
Consolidated Operating Results for the Three Months Ended June 30, 2014 (“this three-month period”), Compared to the Three Months Ended June 30, 2013 (“the same period of the prior year”)
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | |
Net sales | 240,188 | 211,276 | 28,912 | 13.7% |
Operating income | 25,552 | 18,047 | 7,505 | 41.6% |
Income before income taxes | 24,971 | 17,366 | 7,605 | 43.8% |
Net income attributable to Nidec Corporation | 17,917 | 13,346 | 4,571 | 34.2% |
Consolidated net sales increased 13.7% to ¥240,188 million for this three-month period compared to the same period of the prior year, recording the largest three-month net sales in our history. Operating income increased 41.6% to ¥25,552 million for this three-month period compared to the same period of the prior year. The ratio of operating income to net sales, or operating income ratio, for this three-month period was 10.6%. The average exchange rate between the Japanese yen and the U.S. dollar for this three-month period was ¥102.16 to the dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of ¥3.40, or approximately 3%, compared to the same period of the prior year. The average exchange rate between the Japanese yen and the Euro for this three-month period was ¥140.07 to the Euro, which reflected a depreciation of the Japanese yen against the Euro of ¥11.12, or approximately 9%, compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales and operating income of approximately ¥7,400 million and ¥1,400 million, respectively, for this three-month period compared to the same period of the prior year.
Income before income taxes increased 43.8% to ¥24,971 million for this three-month period compared to the same period of the prior year. Net income attributable to Nidec Corporation increased 34.2% to ¥17,917 million for this three-month period compared to the same period of the prior year.
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Operating Results by Product Category for This Three-Month Period Compared to the Same Period of the Prior Year
Small precision motors-
Yen in millions | |||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 89,889 | 87,815 | 2,074 | 2.4% | |
Hard disk drives spindle motors | 45,840 | 46,598 | (758) | (1.6)% | |
Other small precision motors | 44,049 | 41,217 | 2,832 | 6.9% | |
Operating income of small precision motors | 15,062 | 12,013 | 3,049 | 25.4% |
Net sales of small precision motors increased 2.4% to ¥89,889 million for this three-month period compared to the same period of the prior year. The depreciation of the Japanese yen against the U.S. dollar had a positive effect on our sales of small precision motors of approximately ¥3,000 million for this three-month period compared to the same period of the prior year.
Net sales of spindle motors for hard disk drives, or HDDs, decreased 1.6% to ¥45,840 million for this three-month period compared to the same period of the prior year. The number of units sold of spindle motors for HDDs decreased approximately 3% compared to the same period of the prior year. Net sales of other small precision motors increased 6.9% to ¥44,049 million for this three-month period compared to the same period of the prior year. This increase was mainly due to increases in sales of brushless DC motors, brushless DC fans and other small motors.
Operating income of small precision motors increased 25.4% to ¥15,062 million for this three-month period compared to the same period of the prior year. This increase was mainly due to our efforts to improve the profitability of our small precision motor business, as well as the positive effect of the 3% depreciation of the Japanese yen against the U.S. dollar, which depreciation resulted in an approximately ¥700 million increase in operating income of small precision motors for this three-month period compared to the same period of the prior year.
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Automotive, appliance, commercial and industrial products-
Yen in millions | |||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 110,244 | 84,064 | 26,180 | 31.1% | |
Appliance, commercial and industrial products | 63,384 | 57,186 | 6,198 | 10.8% | |
Automotive products | 46,860 | 26,878 | 19,982 | 74.3% | |
Operating income of automotive, appliance, commercial and industrial products | 8,973 | 4,515 | 4,458 | 98.7% |
Note: Starting in this three-month period, a portion of the products that was previously included in the “Appliance, commercial and industrial products” category has been reclassified to the “Automotive products” category. To enable comparisons between periods, previously reported amounts have been retroactively reclassified.
Net sales of automotive, appliance, commercial and industrial products increased 31.1% to ¥110,244 million for this three-month period compared to the same period of the prior year.
Net sales of appliance, commercial and industrial products for this three-month period increased 10.8% compared to the same period of the prior year. This increase was primarily due to larger sales of motors for air conditioning equipment, increases in orders for new products and orders from new customers, and the positive effect of the foreign currency exchange rate fluctuations.
Net sales of automotive products for this three-month period increased 74.3% compared to the same period of the prior year. This primarily reflected the contribution of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation, both of which became newly consolidated subsidiaries in the fiscal year ended March, 31, 2014, and the commencement of mass-production of new product models, as well as the positive effect of the foreign currency exchange rate fluctuations. The depreciation of the Japanese yen against the U.S. dollar and the Euro had a positive effect on net sales of automotive, appliance, commercial and industrial products of approximately ¥3,500 million for this three-month period compared to the same period of the prior year.
Operating income of automotive, appliance, commercial and industrial products increased 98.7% to ¥8,973 million for this three-month period compared to the same period of the prior year mainly due to the increase in sales, our efforts to improve profitability, and the positive effect of the foreign currency exchange rate fluctuations, which fluctuations resulted in an approximately ¥500 million increase in operating income of automotive, appliance, commercial and industrial products for this three-month period compared to the same period of the prior year.
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Machinery-
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | |
Net sales of machinery | 22,279 | 19,929 | 2,350 | 11.8% |
Operating income of machinery | 2,812 | 3,281 | (469) | (14.3)% |
Net sales of machinery increased 11.8% to ¥22,279 million for this three-month period compared to the same period of the prior year mainly due to increases in sales of power transmission drives at Nidec-Shimpo Corporation and card readers at Nidec Sankyo Corporation.
Operating income of machinery decreased 14.3% to ¥2,812 million for this three-month period compared to the same period of the prior year mainly due to changes in the product mix.
Electronic and optical components-
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 16,169 | 17,511 | (1,342) | (7.7)% |
Operating income (loss) of electronic and optical components | 1,105 | (281) | 1,386 | - |
Net sales of electronic and optical components decreased 7.7% to ¥16,169 million for this three-month period compared to the same period of the prior year. This decrease was primarily attributable to a decrease in sales of components for compact digital cameras.
Operating income of electronic and optical components for this three-month period was ¥1,105 million compared to operating loss of ¥281 million for the same period of the prior year. This was mainly as a result of our efforts to improve manufacturing efficiency, reduce cost of goods sold and lower fixed costs, in spite of the decrease in sales.
Other products-
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended June 30, 2013 | Increase or decrease | Increase or decrease ratio | |
Net sales of other products | 1,607 | 1,957 | (350) | (17.9)% |
Operating income of other products | 125 | 175 | (50) | (28.6)% |
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Net sales of other products decreased 17.9% to ¥1,607 million for this three-month period compared to the same period of the prior year.
Operating income of other products decreased 28.6% to ¥125 million for this three-month period compared to the same period of the prior year.
Consolidated Operating Results for the Three Months Ended June 30, 2014 (“this 1Q”), Compared to the Three Months Ended March 31, 2014 (“the previous 4Q”)
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales | 240,188 | 228,384 | 11,804 | 5.2% |
Operating income | 25,552 | 23,202 | 2,350 | 10.1% |
Income before income taxes | 24,971 | 22,139 | 2,832 | 12.8% |
Net income attributable to Nidec Corporation | 17,917 | 13,351 | 4,566 | 34.2% |
Consolidated net sales increased 5.2% to ¥240,188 million for this 1Q compared to the previous 4Q, recording the largest three-month net sales in our history for a second consecutive quarter. Operating income increased for a fifth consecutive quarter to ¥25,552 million for this 1Q, up by 10.1% compared to the previous 4Q. Operating income ratio for this 1Q was 10.6%. The average exchange rate between the Japanese yen and the U.S. dollar for this 1Q was ¥102.16 to the U.S. dollar, which reflected an appreciation of the Japanese yen against the U.S. dollar of ¥0.62, or approximately 1%, compared to the previous 4Q. The average exchange rate between the Japanese yen and the Euro for this 1Q was ¥140.07 to the Euro, which reflected an appreciation of the Japanese yen against the Euro of ¥0.72, or approximately 1%, compared to the previous 4Q. The fluctuations of the foreign currency exchange rates had a negative effect on our net sales of approximately ¥1,300 million and a slight negative effect on our operating income for this 1Q compared to the previous 4Q.
Income before income taxes increased 12.8% to ¥24,971 million for this 1Q compared to the previous 4Q. Net income attributable to Nidec Corporation increased 34.2% to ¥17,917 million for this 1Q compared to the previous 4Q.
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Operating Results by Product Category for This 1Q Compared to the Previous 4Q
Small precision motors-
Yen in millions | |||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 89,889 | 89,289 | 600 | 0.7% | |
Hard disk drives spindle motors | 45,840 | 46,253 | (413) | (0.9)% | |
Other small precision motors | 44,049 | 43,036 | 1,013 | 2.4% | |
Operating income of small precision motors | 15,062 | 15,728 | (666) | (4.2)% |
Net sales of small precision motors increased 0.7% to ¥89,889 million for this 1Q compared to the previous 4Q. The appreciation of the Japanese yen against the U.S. dollar had a negative impact of approximately ¥400 million on the net sales of small precision motors for this 4Q compared to the previous 4Q.
Net sales of spindle motors for HDDs decreased 0.9% to ¥45,840 million for this 1Q compared to the previous 4Q. The number of units sold of spindle motors for HDDs for this 1Q slightly increased compared to the previous 4Q. Net sales of other small precision motors increased 2.4% to ¥44,049 million for this 1Q compared to the previous 4Q. While sales of brushless DC fans for this 1Q remained at the same level as the previous 4Q, sales of brushless DC motors and other small motors for this 1Q increased compared to the previous 4Q.
Operating income of small precision motors decreased 4.2% to ¥15,062 million for this 1Q compared to the previous 4Q primarily due to changes in our product mix and the appreciation of the Japanese yen against the U.S. dollar had a negative effect on operating income of small precision motors of ¥100 million for this 1Q compared to the previous 4Q.
Automotive, appliance, commercial and industrial products-
Yen in millions | |||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 110,244 | 98,162 | 12,082 | 12.3% | |
Appliance, commercial and industrial products | 63,384 | 62,601 | 783 | 1.3% | |
Automotive products | 46,860 | 35,561 | 11,299 | 31.8% | |
Operating income of automotive, appliance, commercial and industrial products | 8,973 | 7,561 | 1,412 | 18.7% |
Note: Starting in this 1Q, a portion of the products that was previously included in the “Appliance, commercial and industrial products” category has been reclassified to the “Automotive products” category. To enable comparisons between periods, previously reported amounts have been retroactively reclassified.
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Net sales of automotive, appliance, commercial and industrial products increased 12.3% to ¥110,244 million for this 1Q compared to the previous 4Q. Net sales of appliance, commercial and industrial products for this 1Q increased 1.3% compared to the previous 4Q mainly due to sales of new products and increased orders for motors for pump products. Net sales of automotive products for this 1Q increased 31.8% compared to the previous 4Q mainly due to the contribution of the newly consolidated Nidec Elesys.
Operating income of automotive, appliance, commercial and industrial products increased 18.7% to ¥8,973 million for this 1Q compared to the previous 4Q, recording the largest three-month operating income in our history for a fifth consecutive quarter. This was mainly due to our efforts to improve profitability through reduction of costs of goods sold and other enhancements to our manufacturing efficiency.
Machinery-
Yen in millions | |||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of machinery | 22,279 | 23,534 | (1,255) | (5.3)% | |
Operating income of machinery | 2,812 | 3,066 | (254) | (8.3)% |
Net sales of machinery decreased 5.3% to ¥22,279 million for this 1Q compared to the previous 4Q mainly due to a decrease in sales of LCD panel handling robots.
Operating income of machinery decreased 8.3% to ¥2,812 million for this 1Q compared to the previous 4Q due to the decrease in sales.
Electronic and optical components-
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 16,169 | 15,619 | 550 | 3.5% |
Operating income (loss) of electronic and optical components | 1,105 | (776) | 1,881 | - |
Net sales of electronic and optical components increased 3.5% to ¥16,169 million for this 1Q compared to the previous 4Q. This increase was primarily attributable to an increase in sales of components for household equipment.
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Operating income of electronic and optical components for this 1Q was ¥1,105 million compared to operating loss of ¥776 million for the previous 4Q primarily due to the positive effect of the measures to improve our fixed cost structure and our efforts to reduce costs of goods sold, in addition to the increase in sales.
Other products-
Yen in millions | ||||
Three months ended June 30, 2014 | Three months ended March 31, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of other products | 1,607 | 1,780 | (173) | (9.7)% |
Operating income of other products | 125 | 19 | 106 | 557.9% |
Net sales of other products decreased 9.7% to ¥1,607 million for this 1Q compared to the previous 4Q.
Operating income of other products increased to ¥125 million for this 1Q from ¥19 million for the previous 4Q.
(2) Financial Position
As of June 30, 2014 | As of March 31, 2014 | Increase or decrease | ||
Total assets (million) | ¥1,170,838 | ¥1,165,918 | ¥4,920 | |
Total liabilities (million) | 627,058 | 625,013 | 2,045 | |
Nidec Corporation shareholders’ equity (million) | 520,758 | 518,101 | 2,657 | |
Interest-bearing debt (million) *1 | 355,018 | 351,256 | 3,762 | |
Net interest-bearing debt (million) *2 | ¥105,183 | ¥103,516 | ¥1,667 | |
Debt ratio (%) *3 | 30.3 | 30.1 | 0.2 | |
Debt to equity ratio (“D/E ratio”) (times) *4 | 0.68 | 0.68 | 0.00 | |
Net D/E ratio (times) *5 | 0.20 | 0.20 | 0.00 | |
Nidec Corporation shareholders' equity to total assets (%) | 44.5 | 44.4 | 0.1 | |
Notes: *1: The sum of “short-term borrowings,” “current portion of long-term debt” and “long-term debt” in our consolidated balance sheet, including convertible bonds *2: “Interest-bearing debt” less “cash and cash equivalents” *3: “Interest-bearing debt” divided by “total assets” *4: “Interest-bearing debt” divided by “Nidec Corporation shareholders' equity” *5: “Net interest-bearing debt” divided by “Nidec Corporation shareholders' equity” |
Total assets increased approximately ¥4,900 million to ¥1,170,838 million as of June 30, 2014 compared to March 31, 2014. The increase was mainly due to an increase of approximately ¥6,800 million in trade accounts receivable and an increase of approximately ¥4,000 million in inventories, partially offset by a decrease of approximately ¥5,800 million in property, plant and equipment.
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Total liabilities increased approximately ¥2,000 million to ¥627,058 million as of June 30, 2014 compared to March 31, 2014. Our short-term borrowings increased approximately ¥13,800 million to approximately ¥36,400 million as of June 30, 2014 compared to March 31, 2014. On the other hand, our current portion of long-term debt decreased approximately ¥800 million to approximately ¥28,400 million as of June 30, 2014 compared to March 31, 2014, and our long-term debt decreased approximately ¥9,200 million to approximately ¥290,200 million as of June 30, 2014 compared to March 31, 2014.
Our net interest-bearing debt increased approximately ¥1,700 million to approximately ¥105,200 million as of June 30, 2014 compared to March 31, 2014. Our debt ratio increased to 30.3% as of June 30, 2014 from 30.1% as of March 31, 2014. Our debt to equity ratio was 0.68 as of March 31, 2014 and June 30, 2014. Our net debt to equity ratio was 0.20 as of March 31, 2014 and June 30, 2014.
Nidec Corporation shareholders’ equity increased approximately ¥2,700 million to ¥520,758 million as of June 30, 2014 compared to March 31, 2014. The increase in Nidec Corporation shareholders’ equity was mainly due to an increase in retained earnings of approximately ¥10,300 million as of June 30, 2014 compared to March 31, 2014, which was partially offset by a decrease in positive foreign currency translation adjustments of approximately ¥8,500 million as of June 30, 2014 compared to March 31, 2014. Nidec Corporation shareholders’ equity to total assets increased to 44.5% as of June 30, 2014 from 44.4% as of March 31, 2014.
Overview of Cash Flow-
Yen in millions | |||
For the three months ended June 30 | Increase or decrease | ||
2014 | 2013 | ||
Net cash provided by operating activities | ¥22,023 | ¥18,072 | ¥3,951 |
Net cash used in investing activities | (13,227) | (8,804) | (4,423) |
Free cash flow *1 | 8,796 | 9,268 | (472) |
Net cash (used in) provided by financing activities | ¥(3,196) | ¥1,714 | ¥(4,910) |
Note: *1: To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows to analyze cash flows generated from our operations. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Our free cash flow is the sum of “net cash flow from operating activities” and “net cash flow from investing activities.” |
Cash flows from operating activities for the three months ended June 30, 2014 (“this three-month period”) were a net cash inflow of ¥22,023 million. Compared to the three months ended June 30, 2013 (“the same period of the previous year”), our net cash inflows from operating activities for this three-month period increased approximately ¥4,000 million. The increase was due to an increase of approximately ¥4,900 million in consolidated net income and the impact of other adjustments. Our cash inflows from operating activities were partially offset by the negative impact of approximately ¥7,500 million of net changes in operating assets and liabilities, which consisted of an increase of approximately ¥100 million in operating assets and a decrease of approximately ¥7,600 million in operating liabilities.
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Cash flows from investing activities for this three-month period were a net cash outflow of ¥13,227 million. Compared to the same period of the previous year, our net cash outflow to investing activities for this three-month period increased approximately ¥4,400 million mainly due to a decrease in insurance proceeds related to property, plant and equipment damaged in flood to nil from approximately ¥2,300 million and an approximately ¥2,100 million increase in additional purchases of property, plant and equipment.
As a result, we had a positive free cash flow of ¥8,796 million for this three-month period compared to ¥9,268 million for the same period of the previous year.
Cash flows from financing activities for this three-month period were a net cash outflow of ¥3,196 million. Compared to the same period of previous year, our net cash outflow to financing activities for this three-month period increased approximately ¥4,900 million mainly due to the negative impact of approximately ¥4,300 million of net changes in short term borrowings.
As a result of the foregoing and the impact of foreign exchange fluctuations, the balance of cash and cash equivalents as of June 30, 2014 was ¥249,835 million, an increase of approximately ¥2,100 million from March 31, 2014.
(3) Business Performance Forecast for the Fiscal Year ending March 31, 2015
As our operating results for the three months ended June 30, 2014, including our net sales and profit figures, exceeded our expectations, we have revised upward our previously announced business performance forecast for the six months ending September 30, 2013 and the fiscal year ending March 31, 2015, generally reflecting the net sales and profit amounts recorded for the three months ended June 30, 2014 in excess of those previously forecasted, as discussed below.
In addition, considering these upward revisions of our business performance forecast, and taking into account our financial condition, profit level, dividend ratio and other factors collectively, we have also decided to revise upward our interim dividend target for the six months ending September 30, 2014 from the previously announced target of ¥27.5 per share to ¥30.0 per share and our year-end dividend target for the fiscal year ending March 31, 2015 from the previous announced target of ¥27.5 per share to ¥30.0 per share, resulting in a revised annual dividend target of ¥60.0 per share.
Forecast of consolidated results for the fiscal year ending March 31, 2015
Net sales | ¥960,000 million | (Up 9.7% from the previous fiscal year) |
Operating income | ¥105,000 million | (Up 23.4% from the previous fiscal year) |
Income before income taxes | ¥103,000 million | (Up 21.7% from the previous fiscal year) |
Net income attributable to Nidec Corporation | ¥69,000 million | (Up 22.3% from the previous fiscal year) |
17
Forecast of consolidated results for the six months ending September 30, 2014
Net sales | ¥460,000 million | (Up 7.1% from the same period of the previous fiscal year) |
Operating income | ¥50,000 million | (Up 27.1% from the same period of the previous fiscal year) |
Income before income taxes | ¥49,000 million | (Up 27.5% from the same period of the previous fiscal year) |
Net income attributable to Nidec Corporation | ¥33,500 million | (Up 23.6% from the same period of the previous fiscal year) |
Note:
The exchange rates assumed for the preparation of the foregoing forecast are US$1 = ¥100 and €1 = ¥135. The exchange rates between the relevant Asian currencies and the Japanese yen used for the preparation of the foregoing forecast were determined assuming these exchange rates.
2. Others
(1) Changes in significant subsidiaries during this period
None.
(2) Adoption of simplified accounting methods and accounting methods used specifically for quarterly consolidated financial statements
(Accounting method relating to corporate income tax and other taxes)
Corporate income tax are recognized for the quarterly reporting period based on a worldwide estimated annual effective tax rate
(3) Changes in accounting method in this period
As of April 1, 2014, NIDEC adopted FASB Accounting Standards Codification™ (ASC) Topic 740 “Income Taxes” updated by Accounting Standards Update (ASU) No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed by the taxing authority. In situations where a net operating loss carry forward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the applicable jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This standard is provision for disclosure. The adoption of this standard did not have any impact on NIDEC’s consolidated financial position, results of operations or liquidity.
18
Cautionary Note Regarding Forward-Looking Statements
This report 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 Corporation 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 it. 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,” “intend,” “plan,” “forecast” or similar words. These statements discuss future expectations, identify strategies, contain projections of the results of operations or financial condition of the Nidec Group, 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 make any assurances that the expectations expressed in these forward-looking statements will prove to be correct. Actual results could be materially different from and worse than the Nidec Group’s expectations as a result of various factors, including, but not limited to, (i) general economic conditions, particularly levels of consumer spending, in the computer, information technology, home appliance, industrial and commercial machinery and equipment, automobile and related product markets, (ii) the effectiveness of our measures designed to reduce costs and improve profitability, (iii) the Nidec Group’s ability to design, develop, mass produce and win acceptance of its products, (iv) exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar, the Euro and other currencies in which the Nidec Group makes significant sales or in which the Nidec Group’s assets and liabilities are denominated, (v) the Nidec Group’s ability to successfully integrate its recently acquired companies with complementary technologies and product lines, including Mitsubishi Materials C.M.I. Corporation and Honda Elesys Co., Ltd., and (vi) adverse changes in laws, regulations or economic policies in any of the jurisdictions where the Nidec Group has manufacturing or other operations.
19
3. Consolidated Financial Statements (U.S. GAAP) (unaudited)
(1) Consolidated Balance Sheets
Assets
Yen in millions | |||||
June 30, 2014 | March 31, 2014 | Increase or decrease | |||
Amount | % | Amount | % | Amount | |
Current assets: | |||||
Cash and cash equivalents | ¥249,835 | ¥247,740 | ¥2,095 | ||
Trade notes receivable | 14,547 | 12,188 | 2,359 | ||
Trade accounts receivable | 190,873 | 184,096 | 6,777 | ||
Inventories: | |||||
Finished goods | 52,396 | 51,293 | 1,103 | ||
Raw materials | 42,384 | 39,993 | 2,391 | ||
Work in process | 29,679 | 28,926 | 753 | ||
Supplies and other | 3,390 | 3,669 | (279) | ||
Other current assets | 45,651 | 48,063 | (2,412) | ||
Total current assets | 628,755 | 53.7 | 615,968 | 52.8 | 12,787 |
Investments and advances: | |||||
Marketable securities and other securities investments | 17,488 | 16,437 | 1,051 | ||
Investments in and advances to affiliated companies | 1,994 | 2,018 | (24) | ||
Total investments and advances | 19,482 | 1.7 | 18,455 | 1.6 | 1,027 |
Property, plant and equipment: | |||||
Land | 47,030 | 47,137 | (107) | ||
Buildings | 175,912 | 177,617 | (1,705) | ||
Machinery and equipment | 361,734 | 363,806 | (2,072) | ||
Construction in progress | 18,050 | 18,372 | (322) | ||
Sub-total | 602,726 | 51.4 | 606,932 | 52.0 | (4,206) |
Less - Accumulated depreciation | (309,664) | (26.4) | (308,051) | (26.4) | (1,613) |
Total property, plant and equipment | 293,062 | 25.0 | 298,881 | 25.6 | (5,819) |
Goodwill | 153,342 | 13.1 | 154,927 | 13.3 | (1,585) |
Other non-current assets | 76,197 | 6.5 | 77,687 | 6.7 | (1,490) |
Total assets | ¥1,170,838 | 100.0 | ¥1,165,918 | 100.0 | ¥4,920 |
20
Liabilities and Equity
Yen in millions | |||||
June 30, 2014 | March 31, 2014 | Increase or decrease | |||
Amount | % | Amount | % | Amount | |
Current liabilities: | |||||
Short-term borrowings | ¥36,439 | ¥22,600 | ¥13,839 | ||
Current portion of long-term debt | 28,400 | 29,245 | (845) | ||
Trade notes and accounts payable | 167,485 | 166,383 | 1,102 | ||
Accrued expenses | 32,834 | 31,045 | 1,789 | ||
Other current liabilities | 29,580 | 33,142 | (3,562) | ||
Total current liabilities | 294,738 | 25.2 | 282,415 | 24.2 | 12,323 |
Long-term liabilities: | |||||
Long-term debt | 290,179 | 299,411 | (9,232) | ||
Accrued pension and severance costs | 17,224 | 17,943 | (719) | ||
Other long-term liabilities | 24,917 | 25,244 | (327) | ||
Total long-term liabilities | 332,320 | 28.4 | 342,598 | 29.4 | (10,278) |
Total liabilities | 627,058 | 53.6 | 625,013 | 53.6 | 2,045 |
Equity: | |||||
Common stock | 66,551 | 5.7 | 66,551 | 5.7 | - |
Additional paid-in capital | 65,197 | 5.6 | 65,197 | 5.6 | - |
Retained earnings | 377,949 | 32.3 | 367,617 | 31.5 | 10,332 |
Accumulated other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 46,045 | 54,539 | (8,494) | ||
Net unrealized gains and losses on securities | 4,853 | 4,185 | 668 | ||
Net gains and losses on derivative instruments | 168 | (24) | 192 | ||
Pension liability adjustments | (342) | (324) | (18) | ||
Total accumulated other comprehensive income (loss) | 50,724 | 4.3 | 58,376 | 5.0 | (7,652) |
Treasury stock, at cost | (39,663) | (3.4) | (39,640) | (3.4) | (23) |
Total Nidec Corporation shareholders’ equity | 520,758 | 44.5 | 518,101 | 44.4 | 2,657 |
Noncontrolling interests | 23,022 | 1.9 | 22,804 | 2.0 | 218 |
Total equity | 543,780 | 46.4 | 540,905 | 46.4 | 2,875 |
Total liabilities and equity | ¥1,170,838 | 100.0 | ¥1,165,918 | 100.0 | ¥4,920 |
Note: Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
21
(2) Condensed Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Yen in millions | ||||||||
Three months ended June 30 | Increase or decrease | Year ended March 31, 2014 | ||||||
2014 | 2013 | |||||||
Amount | % | Amount | % | Amount | % | Amount | % | |
Net sales | ¥240,188 | 100.0 | ¥211,276 | 100.0 | ¥28,912 | 13.7 | ¥875,109 | 100.0 |
Cost of products sold | 183,301 | 76.3 | 164,678 | 77.9 | 18,623 | 11.3 | 674,699 | 77.1 |
Selling, general and administrative expenses | 20,560 | 8.6 | 19,251 | 9.2 | 1,309 | 6.8 | 77,534 | 8.9 |
Research and development expenses | 10,775 | 4.5 | 9,300 | 4.4 | 1,475 | 15.9 | 37,808 | 4.3 |
Operating expenses | 214,636 | 89.4 | 193,229 | 91.5 | 21,407 | 11.1 | 790,041 | 90.3 |
Operating income | 25,552 | 10.6 | 18,047 | 8.5 | 7,505 | 41.6 | 85,068 | 9.7 |
Other income (expenses): | ||||||||
Interest and dividend income | 561 | 537 | 24 | 2,376 | ||||
Interest expenses | (397) | (434) | 37 | (1,526) | ||||
Foreign exchange gain (loss), net | (326) | (400) | 74 | (56) | ||||
Gain (loss) from marketable securities, net | 0 | 243 | (243) | 245 | ||||
Other, net | (419) | (627) | 208 | (1,443) | ||||
Total | (581) | (0.2) | (681) | (0.3) | 100 | - | (404) | (0.0) |
Income before income taxes | 24,971 | 10.4 | 17,366 | 8.2 | 7,605 | 43.8 | 84,664 | 9.7 |
Income taxes | (6,342) | (2.6) | (3,664) | (1.7) | (2,678) | - | (25,729) | (3.0) |
Equity in net income (loss) of affiliated companies | 4 | 0.0 | 7 | 0.0 | (3) | (42.9) | (25) | (0.0) |
Consolidated net income | 18,633 | 7.8 | 13,709 | 6.5 | 4,924 | 35.9 | 58,910 | 6.7 |
Less: Net (income) loss attributable to noncontrolling interests | (716) | (0.3) | (363) | (0.2) | (353) | - | (2,506) | (0.3) |
Net income attributable to Nidec Corporation | ¥17,917 | 7.5 | ¥13,346 | 6.3 | ¥4,571 | 34.2 | ¥56,404 | 6.4 |
Consolidated Statements of Comprehensive Income
Yen in millions | |||||
Three months ended June 30 | Increase or | Year ended | |||
2014 | 2013 | decrease | March 31, 2014 | ||
Amount | Amount | Amount | % | Amount | |
Consolidated net income | ¥18,633 | ¥13,709 | ¥4,924 | 35.9 | ¥58,910 |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustments | (8,688) | 20,395 | (29,083) | - | 43,429 |
Net unrealized gains and losses on securities | 681 | 470 | 211 | 44.9 | 2,980 |
Net gains and losses on derivative instruments | 192 | (332) | 524 | - | (266) |
Pension liability adjustments | (18) | 88 | (106) | - | 737 |
Total | (7,833) | 20,621 | (28,454) | - | 46,880 |
Total comprehensive income (loss) | 10,800 | 34,330 | (23,530) | (68.5) | 105,790 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (535) | (1,079) | 544 | - | (3,963) |
Comprehensive income (loss) attributable to Nidec Corporation | ¥10,265 | ¥33,251 | ¥(22,986) | (69.1) | ¥101,827 |
Note: Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
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(3) Consolidated Statements of Cash Flows
Cash flows from operating activities:Yen in millions | ||||
Three months ended June 30 | Increase or decrease | Year ended March 31, 2014 | ||
2014 | 2013 | |||
Consolidated net income | ¥18,633 | ¥13,709 | ¥4,924 | ¥58,910 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 12,366 | 11,399 | 967 | 46,282 |
Loss (gain) on marketable securities, net | 0 | (243) | 243 | (245) |
(Gain) loss from sales, disposal or impairment of property, plant and equipment | (282) | 84 | (366) | 534 |
Deferred income taxes | 1,430 | 200 | 1,230 | 9,217 |
Equity in net (income) loss of affiliated companies | (4) | (7) | 3 | 25 |
Foreign currency adjustments | 327 | (1,262) | 1,589 | (3,498) |
Changes in operating assets and liabilities: | ||||
Increase in notes and accounts receivable | (11,045) | (11,761) | 716 | (19,957) |
Increase in inventories | (5,616) | (5,069) | (547) | (10,244) |
Increase in notes and accounts payable | 3,137 | 12,071 | (8,934) | 14,299 |
Increase (decrease) in accrued income taxes | 60 | (1,234) | 1,294 | 3,899 |
Other | 3,017 | 185 | 2,832 | (12,003) |
Net cash provided by operating activities | 22,023 | 18,072 | 3,951 | 87,219 |
Cash flows from investing activities: | ||||
Additions to property, plant and equipment | (13,424) | (11,294) | (2,130) | (40,297) |
Proceeds from sales of property, plant and equipment | 1,106 | 554 | 552 | 2,601 |
Insurance proceeds related to property, plant and equipment damaged in flood | - | 2,312 | (2,312) | 2,772 |
Proceeds from sales and redemption of marketable securities | - | 545 | (545) | 1,059 |
Acquisitions of business, net of cash acquired | - | - | - | (23,350) |
Other | (909) | (921) | 12 | (5,963) |
Net cash used in investing activities | (13,227) | (8,804) | (4,423) | (63,178) |
23
Yen in millions | ||||
Three months ended June 30 | Increase or decrease | Year ended March 31, 2014 | ||
2014 | 2013 | |||
Increase (decrease) in short-term borrowings | 13,863 | 18,202 | (4,339) | (11,821) |
Proceeds from issuance of long-term debt | - | - | - | 30,000 |
Repayments of long-term debt | (9,021) | (7,967) | (1,054) | (34,323) |
Proceeds from issuance of corporate bonds | - | - | - | 50,000 |
Purchases of treasury stock | (23) | (2,701) | 2,678 | (2,838) |
Dividends paid to shareholders of Nidec Corporation | (7,585) | (5,387) | (2,198) | (11,425) |
Dividends paid to noncontrolling interests | (292) | (432) | 140 | (894) |
Other | (138) | (1) | (137) | (5,228) |
Net cash (used in) provided by financing activities | (3,196) | 1,714 | (4,910) | 13,471 |
Effect of exchange rate changes on cash and cash equivalents | (3,505) | 9,737 | (13,242) | 16,808 |
Net increase in cash and cash equivalents | 2,095 | 20,719 | (18,624) | 54,320 |
Cash and cash equivalents at beginning of period | 247,740 | 193,420 | 54,320 | 193,420 |
Cash and cash equivalents at end of period | ¥249,835 | ¥214,139 | ¥35,696 | ¥247,740 |
Note: Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
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(4) Notes to our consolidated financial statements
Business Combinations
Pursuant to ASC 805 “Business Combinations,” previous year’s consolidated financial statements have been retrospectively adjusted to reflect our valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisition of SCD Co., Ltd. and Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd. in the fiscal year ended March 31, 2013. During the three months ended September 30, 2013, we completed our valuation of such assets and liabilities of SCD Co., Ltd. and Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd.
In addition, we are currently evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec Sankyo CMI Corporation (formerly Mitsubishi Materials C.M.I. Corporation) and Nidec Elesys Corporation (formerly Honda Elesys Co., Ltd.). These assets and liabilities have been recorded on our consolidated balance sheet based on preliminary management estimation as of June 30, 2014.
Subsequent events
Not applicable.
25
4. Supplementary Information (Three months ended June 30, 2014) (unaudited)
(1) Information by Product Category
Yen in millions | ||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥89,889 | ¥110,244 | ¥22,279 | ¥16,169 | ¥1,607 | ¥240,188 | ¥- | ¥240,188 | ||||||||
Intersegment | 327 | 132 | 1,057 | 119 | 1,725 | 3,360 | (3,360) | - | ||||||||
Total | 90,216 | 110,376 | 23,336 | 16,288 | 3,332 | 243,548 | (3,360) | 240,188 | ||||||||
Operating expenses | 75,154 | 101,403 | 20,524 | 15,183 | 3,207 | 215,471 | (835) | 214,636 | ||||||||
Operating income | ¥15,062 | ¥8,973 | ¥2,812 | ¥1,105 | ¥125 | ¥28,077 | ¥(2,525) | ¥25,552 |
Yen in millions | |||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | ||||||||
Net sales: | |||||||||||||||
Customers | ¥87,815 | ¥84,064 | ¥19,929 | ¥17,511 | ¥1,957 | ¥211,276 | ¥- | ¥211,276 | |||||||
Intersegment | 238 | 114 | 1,593 | 55 | 1,326 | 3,326 | (3,326) | - | |||||||
Total | 88,053 | 84,178 | 21,522 | 17,566 | 3,283 | 214,602 | (3,326) | 211,276 | |||||||
Operating expenses | 76,040 | 79,663 | 18,241 | 17,847 | 3,108 | 194,899 | (1,670) | 193,229 | |||||||
Operating income (loss) | ¥12,013 | ¥4,515 | ¥3,281 | ¥(281) | ¥175 | ¥19,703 | ¥(1,656) | ¥18,047 |
Notes:
1. Product categories are classified based on similarities in product type, product attributes, and production and sales methods.
2. Major products of each product category:
(1) Small precision motors: Small precision DC motors (including spindle motors for HDDs), brushless DC fans,
brush motors, vibration motors and motor applications
(2) Automotive, appliance, commercial and industrial products: Home appliances, commercial and industrial motors and related products, automotive motors, and automotive components
(3) Machinery: Power transmission drives, precision equipment and factory automation-related equipment
(4) Electronic and optical components: Electronic components and optical components
(5) Others: Service etc
3. Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
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(2) Sales by Geographic Segment
Yen in millions | ||||||
Three months ended June 30 | Increase or decrease | |||||
2014 | 2013 | |||||
Amount | % | Amount | % | Amount | % | |
Japan | ¥65,644 | 27.3 | ¥53,751 | 25.4 | ¥11,893 | 22.1 |
U.S.A | 40,740 | 17.0 | 38,482 | 18.2 | 2,258 | 5.9 |
Singapore | 16,207 | 6.7 | 15,600 | 7.4 | 607 | 3.9 |
Thailand | 19,489 | 8.1 | 22,994 | 10.9 | (3,505) | (15.2) |
Philippines | 6,523 | 2.7 | 5,380 | 2.6 | 1,143 | 21.2 |
China | 56,103 | 23.4 | 46,347 | 21.9 | 9,756 | 21.0 |
Others | 35,482 | 14.8 | 28,722 | 13.6 | 6,760 | 23.5 |
Total | ¥240,188 | 100.0 | ¥211,276 | 100.0 | ¥28,912 | 13.7 |
Note: The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.
(3) Sales by Region
Yen in millions | ||||||
Three months ended June 30 | Increase or decrease | |||||
2014 | 2013 | |||||
Amount | % | Amount | % | Amount | % | |
North America | ¥45,537 | 19.0 | ¥38,761 | 18.3 | ¥6,776 | 17.5 |
Asia | 121,306 | 50.5 | 108,803 | 51.5 | 12,503 | 11.5 |
Europe | 25,428 | 10.6 | 24,204 | 11.5 | 1,224 | 5.1 |
Others | 2,452 | 1.0 | 2,566 | 1.2 | (114) | (4.4) |
Overseas sales total | 194,723 | 81.1 | 174,334 | 82.5 | 20,389 | 11.7 |
Japan | 45,465 | 18.9 | 36,942 | 17.5 | 8,523 | 23.1 |
Consolidated total | ¥240,188 | 100.0 | ¥211,276 | 100.0 | ¥28,912 | 13.7 |
Note: The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.
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5. Other information (unaudited)
(1) Summary of Consolidated Financial Performance
Yen in millions (except for per share amounts) | ||||
Three months ended June 30 | Increase or decrease | Year ended March 31, 2014 | ||
2014 | 2013 | |||
Net sales | ¥240,188 | ¥211,276 | 13.7% | |
Operating income | 25,552 | 18,047 | 41.6% | |
Ratio of operating income to net sales | 10.6% | 8.5% | ||
Income before income taxes | 24,971 | 17,366 | 43.8% | |
Ratio of income before income taxes to net sales | 10.4% | 8.2% | ||
Net income attributable to Nidec Corporation | 17,917 | 13,346 | 34.2% | |
Ratio of net income attributable to Nidec Corporation to net sales | 7.5% | 6.3% | ||
Net income attributable to Nidec Corporation per share-basic | ¥64.96 | ¥49.73 | ||
Net income attributable to Nidec Corporation per share-diluted | ¥60.93 | ¥46.42 | ||
Total assets | ¥1,170,838 | ¥1,066,461 | ¥1,165,918 | |
Nidec Corporation shareholders’ equity | 520,758 | 440,929 | 518,101 | |
Nidec Corporation shareholders’ equity to total assets | 44.5% | 41.3% | 44.4% | |
Nidec Corporation shareholders’ equity per share | ¥1,888.16 | ¥1,643.04 | ¥1,878.50 | |
Net cash provided by operating activities | ¥22,023 | ¥18,072 | ¥87,219 | |
Net cash used in investing activities | (13,227) | (8,804) | (63,178) | |
Net cash (used in) provided by financing activities | (3,196) | 1,714 | 13,471 | |
Cash and cash equivalents at end of period | ¥249,835 | ¥214,139 | ¥247,740 |
Notes:
1. Some items colored in the above table are omitted, because we also omit them in the report in Japanese language.
2. Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
3. We implemented a two-for-one stock split on our common stock effective April 1, 2014. Therefore, we adjusted net income attributable to Nidec Corporation per share-basic, net income attributable to Nidec Corporation per share-diluted and Nidec Corporation shareholders’ equity per share accordingly to reflect the effect of the stock split. On the other hand, we described actual amount of Dividends before the stock split.
(2) Scope of Consolidation and Application of the Equity Method
Number of consolidated subsidiaries: | 229 |
Number of affiliated companies accounted for under the equity method: | 5 |
(3) Change in Scope of Consolidation and Application of the Equity Method
Change from March 31, 2014 | Change from June 30, 2013 | |
Number of companies newly consolidated: | 1 | 10 |
Number of companies excluded from consolidation: | 1 | 13 |
Number of companies newly accounted for by the equity method: | - | 1 |
Number of companies excluded from accounting by the equity method: | - | 1 |
28