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 October 2015.
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: October 21, 2015 | ||||
NIDEC CORPORATION | ||||
By: /S/ Masahiro Nagayasu | ||||
General Manager, Investor Relations |
2
NEWS RELEASE
NIDEC CORPORATION
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 SIX MONTHS ENDED SEPTEMBER 30, 2015
FROM APRIL 1, 2015 TO SEPTEMBER 30, 2015
CONSOLIDATED
Released on October 21, 2015
NIDEC CORPORATION
Stock Listings:Tokyo Stock Exchange, New York Stock Exchange
Head Office: Kyoto, Japan
Date of Filing of Japanese Quarterly Securities Report (Plan): November 13, 2015
Date of Commencement of Dividend Payment (Plan):November 30, 2015
1. Selected Consolidated Financial Performance Information for the Six Months Ended
September 30, 2015 (U.S. GAAP) (unaudited)
(1) Consolidated Results of Operations
Yen in millions (except for per share amounts) | ||
Six months ended September 30 | ||
2015 | 2014 | |
Net sales | ¥587,352 | ¥489,511 |
Ratio of change from the same period of previous fiscal year | 20.0% | 13.9% |
Operating income | 61,850 | 51,923 |
Ratio of change from the same period of previous fiscal year | 19.1% | 32.0% |
Income before income taxes | 63,409 | 51,538 |
Ratio of change from the same period of previous fiscal year | 23.0% | 34.1% |
Net income attributable to Nidec Corporation | 47,622 | 36,713 |
Ratio of change from the same period of previous fiscal year | 29.7% | 35.5% |
Net income attributable to Nidec Corporation per share-basic | ¥160.75 | ¥133.11 |
Net income attributable to Nidec Corporation per share-diluted | ¥159.57 | ¥124.85 |
Note:
Comprehensive income attributable to Nidec Corporation:
¥30,522 million of comprehensive income attributable to Nidec Corporation for the six months ended September 30, 2015 (55.8 % decrease compared to the six months ended September 30, 2014)
¥69,007 million of comprehensive income attributable to Nidec Corporation for the six months ended September 30, 2014 (51.4% increase compared to the six months ended September 30, 2013)
(2) Consolidated Financial Position
Yen in millions (except for per share amounts) | ||
September 30, 2015 | March 31, 2015 | |
Total assets | ¥1,421,653 | ¥1,357,340 |
Total equity | 793,175 | 753,099 |
Nidec Corporation shareholders’ equity | 785,116 | 744,972 |
Nidec Corporation shareholders’ equity to total assets | 55.2% | 54.9% |
Nidec Corporation shareholders’ equity per share | ¥2,633.45 | ¥2,533.07 |
2. Dividends (unaudited)
Yen | ||
Year ending March 31, 2016 (target) | Year ended March 31, 2015 (actual) | |
Interim dividend per share | ¥40.00 | ¥30.00 |
Year-end dividend per share | 40.00 | 40.00 |
Annual dividend per share | ¥80.00 | ¥70.00 |
Note:
Revision of previously announced dividend targets during this reporting period: None
3. Forecast of Consolidated Financial Performance (for the fiscal year ending March 31, 2016)
Yen in millions (except for per share amounts) | Inc./Dec. ratio of change from the previous fiscal year | |
Net sales | ¥1,150,000 | 11.8% |
Operating income | 130,000 | 17.2% |
Income before income taxes | 126,000 | 17.7% |
Net income attributable to Nidec Corporation | 90,000 | 18.4% |
Net income attributable to Nidec Corporation per share-basic | ¥302.84 |
Note:
Revision of the previously announced financial performance forecast during this reporting period: None
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.)
(3) Changes in accounting policies:
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 at the end of each period (including treasury stock):
298,142,234 shares at September 30, 2015
294,108,416 shares at March 31, 2015
2. Number of treasury stock at the end of each period:
9,811 shares at September 30, 2015
9,636 shares at March 31, 2015
3. Weighted-average number of shares issued at the beginning and end of each period:
296,249,477 shares for the six months ended September 30, 2015
275,802,255 shares for the six months ended September 30, 2014
Note:
Pursuant to ASC 805 “Business Combinations,” previous year’s consolidated financial statements have been retrospectively adjusted to reflect the valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation in the fiscal year ended March 31, 2014, as well as the acquisitions of Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt (Currently, Nidec GPM GmbH) in the fiscal year ended March 31, 2015. Nidec completed its valuation of such assets and liabilities of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation during the three months ended December 31, 2014 and of Nidec GPM GmbH during the three months ended September 30, 2015.
Investor presentation materials relating to our financial results for the six months ended September 30, 2015 are expected to be published on our corporate website on October 22, 2015.
1. Operating and Financial Review and Prospects
(1) Analysis of Operating Results
1. Overview of Business Environment for Six months Ended September 30, 2015
Regarding the global economy during the six months ended September 30, 2015, uncertainty regarding China could not be fully eradicated in spite of various monetary policy and economic stimulus measures, and some concerns regarding the recovery trend in Japanese corporate earnings began to arise due to the effects of the Chinese economy on the Japanese economy. The United States, which continued its steady economic growth, continued to contemplate the timing of an increase in interest rates while considering the slowdown in employment growth and the negative effects that such increase may have on the global economy. While some signs of an economic recovery were observed in Europe, uncertainty lingered over some of its regions. As a result, the global economy as a whole showed only a mild recovery.
Under such a business environment, we continued to pursue our sales and profit growth strategies with a view to achieve our target for the fiscal year ending March 31, 2021 of consolidated net sales of ¥2 trillion based on our mid-term strategic goal “Vision 2020,” and we achieved in the six months ended September 30, 2015 the highest first half consolidated net sales, operating income, income before income taxes and net income in our history. In addition, regarding the three months ended September 30, 2015, we achieved increases in consolidated net sales for the seventh consecutive quarter, exceeding ¥300 billion for the first time. We also achieved increases in operating income for the tenth consecutive quarter and achieved the highest quarterly operating income in our history.
2. Consolidated Operating Results
Consolidated Operating Results for the Six Months Ended September 30, 2015 (“this six-month period”), Compared to the Six Months Ended September 30, 2014 (“the same period of the prior year”)
Yen in millions | ||||
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales | 587,352 | 489,511 | 97,841 | 20.0% |
Operating income | 61,850 | 51,923 | 9,927 | 19.1% |
Operating income ratio | 10.5% | 10.6% | - | - |
Income before income taxes | 63,409 | 51,538 | 11,871 | 23.0% |
Net income attributable to Nidec Corporation | 47,622 | 36,713 | 10,909 | 29.7% |
Note: Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
Consolidated net sales increased 20.0% to ¥587,352 million for this six-month period compared to the same period of the prior year, recording the highest net sales for any first half-year period in our history. Operating income increased 19.1% to ¥61,850 million for this six-month period compared to the same period of the prior year, recording the highest operating income for any first half-year period in our history. In all of our five product categories, operating income increased compared to the same period of the prior year. The average exchange rate between the Japanese yen and the U.S. dollar for this six-month period was ¥121.80 to the U.S. dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of approximately 18% compared to the same period of the prior year. The average exchange rate between the Japanese yen and the Euro for this six-month period was ¥135.07 to the Euro, which reflected an appreciation of the Japanese yen against the Euro of approximately 3% 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 of approximately ¥61,300 million and our operating income of approximately ¥8,400 million for this six-month period compared to the same period of the prior year.
Income before income taxes increased 23.0% to ¥63,409 million for this six-month period compared to the same period of the prior year, and net income attributable to Nidec Corporation increased 29.7% to ¥47,622 million for this six-month period compared to the same period of the prior year, recording the highest income before income taxes and net income attributable to Nidec Corporation for any first half-year period in our history.
Operating Results by Product Category for This Six-Month Period Compared to the Same Period of the Prior Year
Small precision motors-
Yen in millions | |||||
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 222,513 | 190,308 | 32,205 | 16.9% | |
Hard disk drives spindle motors | 106,806 | 93,433 | 13,373 | 14.3% | |
Other small precision motors | 115,707 | 96,875 | 18,832 | 19.4% | |
Operating income of small precision motors | 35,782 | 30,653 | 5,129 | 16.7% | |
Operating income ratio | 16.1% | 16.1% | - | - |
Net sales of small precision motors increased 16.9% to ¥222,513 million for this six-month period compared to the same period of the prior year. The decrease in sales for spindle motors for hard disk drives (HDDs) resulting from the decrease in the number of units sold, excluding the effect of the foreign currency fluctuation, was more than offset by the increase in sales of other small precision motors. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of small precision motors of approximately ¥30,300 million for this six-month period compared to the same period of the prior year.
Net sales of spindle motors for HDDs for this six-month period increased 14.3% to ¥106,806 million compared to the same period of the prior year, although the number of units sold of spindle motors for HDDs decreased approximately 6% compared to the same period of the prior year.
Net sales of other small precision motors for this six-month period increased 19.4% to ¥115,707 million compared to the same period of the prior year. This increase was mainly due to increases in sales of fan motors and other small motors.
Operating income of small precision motors increased 16.7% to ¥35,782 million for this six-month period compared to the same period of the prior year. The fluctuations of the foreign currency exchange rates had a positive effect on operating income of small precision motors of approximately ¥8,000 million for this six-month period compared to the same period of the prior year.
Automotive, appliance, commercial and industrial products-
Yen in millions | ||||||
| Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 276,185 | 218,378 | 57,807 | 26.5% | ||
Appliance, commercial and industrial products | 140,029 | 125,322 | 14,707 | 11.7% | ||
Automotive products | 136,156 | 93,056 | 43,100 | 46.3% | ||
Operating income of automotive, appliance, commercial and industrial products | 21,405 | 17,224 | 4,181 | 24.3% | ||
Operating income ratio | 7.8% | 7.9% | - | - |
Note: Starting from the three months ended December 31, 2014, basic research and development expenses that were previously included in “Automotive, appliance, commercial and industrial products” category have been reclassified to “Eliminations/ Corporate” category. Accordingly, previous period amounts have been retrospectively adjusted.
Net sales of automotive, appliance, commercial and industrial products increased 26.5% to ¥276,185 million for this six-month period 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 of automotive, appliance, commercial and industrial products of approximately ¥23,400 million for this six-month period compared to the same period of the prior year.
Net sales of appliance, commercial and industrial products for this six-month period increased 11.7% compared to the same period of the prior year. This increase was primarily due to the increase in sales through our “Three-new Strategy” (new products, new markets and new clients) and the positive effect of the foreign currency exchange rate fluctuations.
Net sales of automotive products for this six-month period increased 46.3% compared to the same period of the prior year. This increase was primarily due to the contribution of Nidec GPM GmbH which was newly consolidated in February, 2015 and the positive effect of the foreign currency exchange rate fluctuations, in addition to the increase in sales for automotive motors such as electric power steering motors and products relating to advanced driver assistance systems (ADAS) at Nidec Elesys Corporation.
Operating income of automotive, appliance, commercial and industrial products increased 24.3% to ¥21,405 million for this six-month period compared to the same period of the prior year mainly due to the increase in sales and our efforts to reduce cost of products sold.
Machinery-
Yen in millions | ||||
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of machinery | 53,582 | 45,022 | 8,560 | 19.0% |
Operating income of machinery | 8,170 | 6,626 | 1,544 | 23.3% |
Operating income ratio | 15.2% | 14.7% | - | - |
Net sales of machinery increased 19.0% to ¥53,582 million for this six-month period compared to the same period of the prior year mainly due to increases in sales of LCD panel handling robots at Nidec Sankyo Corporation.
Operating income of machinery increased 23.3% to ¥8,170 million for this six-month period compared to the same period of the prior year mainly due to the sales increase.
Electronic and optical components-
Yen in millions | ||||
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 32,528 | 32,499 | 29 | 0.1% |
Operating income of electronic and optical components | 3,617 | 2,355 | 1,262 | 53.6% |
Operating income ratio | 11.1% | 7.2% | - | - |
Net sales of electronic and optical components slightly increased to ¥32,528 million for this six-month period compared to the same period of the prior year.
Operating income of electronic and optical components increased 53.6% to ¥3,617 million for this six-month period mainly as a result of our efforts to improve manufacturing efficiency, reduce cost of products sold and lower fixed costs.
Other products-
Yen in millions | ||||
Six months ended September 30, 2015 | Six months ended September 30, 2014 | Increase or decrease | Increase or decrease ratio | |
Net sales of other products | 2,544 | 3,304 | (760) | (23.0)% |
Operating income of other products | 480 | 302 | 178 | 58.9% |
Operating income ratio | 18.9% | 9.1% | - | - |
Net sales of other products decreased 23.0% to ¥2,544 million, and operating income of other products increased 58.9% to ¥480 million, for this six-month period compared to the same period of the previous year.
Consolidated Operating Results for the Three Months Ended September 30, 2015 (“this 2Q”), Compared to the Three Months Ended June 30, 2015 (“this 1Q”)
Yen in millions | ||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales | 302,311 | 285,041 | 17,270 | 6.1% |
Operating income | 31,105 | 30,745 | 360 | 1.2% |
Operating income ratio | 10.3% | 10.8% | - | - |
Income before income taxes | 31,054 | 32,355 | (1,301) | (4.0)% |
Net income attributable to Nidec Corporation | 23,827 | 23,795 | 32 | 0.1% |
Note: Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
Consolidated net sales increased 6.1% to ¥302,311 million for this 2Q compared to this 1Q, recording the highest three-month net sales in our history for the seventh consecutive quarter. Operating income increased for the tenth consecutive quarter to ¥31,105 million for this 2Q, up by 1.2% compared to this 1Q, recording the highest three-month operating income in our history for the fourth consecutive quarter. The average exchange rate between the Japanese yen and the U.S. dollar for this 2Q was ¥122.23 to the U.S. dollar, which reflected a depreciation of the Japanese yen against the U.S. dollar of approximately 1% compared to this 1Q. The average exchange rate between the Japanese yen and the Euro for this 2Q was ¥135.98 to the Euro, which reflected a depreciation of the Japanese yen against the Euro of approximately 1% compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on our net sales of approximately ¥1,000 million as well as on our operating income of approximately ¥400 million for this 2Q compared to this 1Q.
Income before income taxes decreased 4.0% to ¥31,054 million for this 2Q compared to this 1Q. Net income attributable to Nidec Corporation increased 0.1% to ¥23,827 million for this 2Q compared to this 1Q, recording the highest three-month net income attributable to Nidec Corporation in our history.
Operating Results by Product Category for This 2Q Compared to This 1Q
Small precision motors-
Yen in millions | |||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | ||
Net sales of small precision motors | 118,455 | 104,058 | 14,397 | 13.8% | |
Hard disk drives spindle motors | 56,866 | 49,940 | 6,926 | 13.9% | |
Other small precision motors | 61,589 | 54,118 | 7,471 | 13.8% | |
Operating income of small precision motors | 18,094 | 17,688 | 406 | 2.3% | |
Operating income ratio | 15.3% | 17.0% | - | - |
Net sales of small precision motors increased 13.8% to ¥118,455 million for this 2Q compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive impact of approximately ¥400 million on the net sales of small precision motors for this 2Q compared to this 1Q.
Net sales of spindle motors for HDDs for this 2Q increased 13.9% to ¥56,866 million, compared to this 1Q. The number of units sold of spindle motors for HDDs for this 2Q increased approximately 14% compared to this 1Q.
Net sales of other small precision motors for this 2Q increased 13.8% to ¥61,589 million compared to this 1Q. This increase was mainly due to increases in sales of brushless motors, fan motors and other small motors.
Operating income of small precision motors increased 2.3% to ¥18,094 million for this 2Q compared to this 1Q. The fluctuations of the foreign currency exchange rates had a positive effect on operating income of small precision motors of ¥300 million for this 2Q compared to this 1Q.
Automotive, appliance, commercial and industrial products-
Yen in millions | |||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | ||
Net sales of automotive, appliance, commercial and industrial products | 138,868 | 137,317 | 1,551 | 1.1% | |
Appliance, commercial and industrial products | 68,729 | 71,300 | (2,571) | (3.6)% | |
Automotive products | 70,139 | 66,017 | 4,122 | 6.2% | |
Operating income of automotive, appliance, commercial and industrial products | 10,641 | 10,764 | (123) | (1.1)% | |
Operating income ratio | (7.7%) | (7.8%) | - | - |
Net sales of automotive, appliance, commercial and industrial products increased 1.1% to ¥138,868 million for this 2Q compared to this 1Q.
Net sales of appliance, commercial and industrial products for this 2Q decreased 3.6% compared to this 1Q. This decrease was mainly due to the slowdown in China and seasonality effects.
Net sales of automotive products for this 2Q increased 6.2% compared to this 1Q. This increase was mainly due to the increase in sales for products relating to ADAS at Nidec Elesys Corporation as well as the positive effect of the foreign currency exchange rate fluctuations.
Operating income of automotive, appliance, commercial and industrial products decreased 1.1% to ¥10,641 million for this 2Q compared to this 1Q mainly due to the increase in market development costs.
Machinery-
Yen in millions | ||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales of machinery | 26,930 | 26,652 | 278 | 1.0% |
Operating income of machinery | 4,111 | 4,059 | 52 | 1.3% |
Operating income ratio | 15.3% | 15.2% | - | - |
Net sales of machinery increased 1.0% to ¥26,930 million for this 2Q compared to this 1Q mainly due to increases in sales of LCD panel handling robots at Nidec Sankyo Corporation.
Operating income of machinery increased 1.3% to ¥4,111 million for this 2Q compared to this 1Q mainly due to the increase in sales.
Electronic and optical components-
Yen in millions | ||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales of electronic and optical components | 16,705 | 15,823 | 882 | 5.6% |
Operating income of electronic and optical components | 2,005 | 1,612 | 393 | 24.4% |
Operating income ratio | 12.0% | 10.2% | - | - |
Net sales of electronic and optical components increased 5.6% to ¥16,705 million for this 2Q compared to this 1Q.
Operating income of electronic and optical components increased 24.4% to ¥2,005 million for this 2Q. This mainly reflected an improvement in product mix.
Other products-
Yen in millions | ||||
Three months ended September 30, 2015 | Three months ended June 30, 2015 | Increase or decrease | Increase or decrease ratio | |
Net sales of other products | 1,353 | 1,191 | 162 | 13.6% |
Operating income of other products | 284 | 196 | 88 | 44.9% |
Operating income ratio | 21.0% | 16.5% | - | - |
Net sales of other products increased 13.6% to ¥1,353 million and operating income of other products increased 44.9% to ¥284 million for this 2Q compared to this 1Q.
(2) Financial Position
As of September 30, 2015 | As of March 31, 2015 | Increase or decrease | ||
Total assets (million) | ¥1,421,653 | ¥1,357,340 | ¥64,313 | |
Total liabilities (million) | 628,478 | 604,241 | 24,237 | |
Nidec Corporation shareholders’ equity (million) | 785,116 | 744,972 | 40,144 | |
Interest-bearing debt (million) *1 | 288,140 | 282,498 | 5,642 | |
Net interest-bearing debt (million) *2 | 1,534 | 12,596 | (11,062) | |
Debt ratio (%) *3 | 20.3 | 20.8 | (0.5) | |
Debt to equity ratio (“D/E ratio”) (times) *4 | 0.37 | 0.38 | (0.01) | |
Net D/E ratio (times) *5 | 0.00 | 0.02 | (0.02) | |
Nidec Corporation shareholders’ equity to total assets (%) | 55.2 | 54.9 | 0.3 | |
Notes: *1: The sum of “short-term borrowings,” “current portion of long-term debt” and “long-term debt” (including convertible bonds) in our consolidated balance sheet *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 ¥64,300 million to ¥1,421,653 million as of September 30, 2015 compared to March 31, 2015. This increase was mainly due to an increase of approximately ¥18,800 million in property, plant and equipment, an increase of approximately ¥16,700 million in cash and cash equivalents, an increase of approximately ¥13,000 million in inventories and an increase of approximately ¥11,300 million in trade accounts receivable.
Total liabilities increased approximately ¥24,200 million to ¥628,478 million as of September 30, 2015 compared to March 31, 2015. This increase was mainly due to an increase of approximately ¥8,200 million in trade notes and accounts payable and an increase of approximately ¥5,600 million in interest-bearing debt. Specifically, our short-term borrowings increased approximately ¥39,400 million to approximately ¥91,800 million as of September 30, 2015 compared to March 31, 2015, our current portion of long-term debt decreased approximately ¥32,800 million to approximately ¥12,700 million as of September 30, 2015 compared to March 31, 2015, and our long-term debt decreased approximately ¥1,000 million to approximately ¥183,600 million as of September 30, 2015 compared to March 31, 2015.
As a result, our net interest-bearing debt decreased approximately ¥11,100 million to approximately ¥1,500 million as of September 30, 2015 compared to March 31, 2015. Our debt ratio decreased to 20.3% as of September 30, 2015 from 20.8% as of March 31, 2015. Our D/E ratio was 0.37 as of September 30, 2015 compared to 0.38 as of March 31, 2015. Our net D/E ratio was 0.00 as of September 30, 2015 compared to 0.02 as of March 31, 2015.
Nidec Corporation shareholders’ equity increased approximately ¥40,100 million to ¥785,116 million as of September 30, 2015 compared to March 31, 2015. Nidec Corporation shareholders’ equity to total assets increased to 55.2% as of September 30, 2015 from 54.9% as of March 31, 2015. This increase was mainly due to an increase in retained earnings of approximately ¥35,900 million as of September 30, 2015 compared to March 31, 2015.
Overview of Cash Flow-
(Yen in millions) | ||||
For the six months ended September 30 | Increase or decrease | |||
2015 | 2014 | |||
Net cash provided by operating activities | 69,620 | 41,552 | 28,068 | |
Net cash used in investing activities | (59,238) | (23,131) | (36,107) | |
Free cash flow *1 | 10,382 | 18,421 | (8,039) | |
Net cash provided by (used in) financing activities | 13,474 | (3,487) | 16,961 | |
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 six months ended September 30, 2015 (“this six-month period”) were a net cash inflow of ¥69,620 million. Compared to the six months ended September 30, 2014 (“the same period of the previous year”), our cash inflow from operating activities for this six-month period increased approximately ¥28,100 million. This increase was mainly due to an increase of approximately ¥9,800 million in consolidated net income and an increase of approximately ¥9,700 million of net changes in operating assets and liabilities which consisted of a decrease of approximately ¥4,600 million in operating assets and an increase of approximately ¥5,100 million in operating liabilities.
Cash flows from investing activities for this six-month period were a net cash outflow of ¥59,238 million. Compared to the same period of the previous year, our net cash outflow from investing activities for this six-month period increased approximately ¥36,100 million mainly due to an increase in additional purchases of property, plant and equipment of approximately ¥23,300 million and an increase in acquisitions of businesses, net of cash acquired, of approximately ¥9,700 million.
As a result, we had a positive free cash flow of ¥10,382 million for this six-month period compared to ¥18,421 million for the same period of the previous year.
Cash flows from financing activities for this six-month period were a net cash inflow of ¥13,474 million. Compared to the same period of the previous year, our net cash inflow from financing activities for this six-month period increased approximately ¥17,000 million. This increase was mainly due to an increase of net changes in short-term borrowings of approximately ¥15,200 million and a decrease of repayment of long-term debt of approximately ¥5,500 million, which was partially offset by an increase in dividends paid to shareholders of Nidec Corporation of approximately ¥4,200 million.
As a result of the foregoing and the impact of foreign exchange fluctuations, the balance of cash and cash equivalents as of September 30, 2015 was ¥286,606 million, an increase of approximately ¥16,700 million from March 31, 2015.
(3) Business Forecasts for the Fiscal Year ending March 31, 2016
Regarding global economic trends, we expect that, while an economic recovery mainly in the United States is anticipated, uncertainties relating to the impact of a rise in U.S. interest rates on developing economies, the slowdown in Chinese economic growth and the uncertainty of the European economy will continue to require close monitoring.
Our business forecasts for the fiscal year ending March 31, 2016 remain unchanged as of the date of this report from those which were announced on April 22, 2015.
Forecast of consolidated results for the fiscal year ending March 31, 2016
Net sales | ¥1,150,000 million | (Up 11.8% from the previous fiscal year) |
Operating income | ¥130,000 million | (Up 17.2% from the previous fiscal year) |
Income before income taxes | ¥126,000 million | (Up 17.7% from the previous fiscal year) |
Net income attributable to Nidec Corporation | ¥90,000 million | (Up 18.4% from the previous fiscal year) |
Notes:
1. The exchange rates used for the preparation of the foregoing forecasts are US$1 = ¥115 and €1 = ¥125. The exchange rates between the relevant Asian currencies and the Japanese yen used for the preparation of the foregoing forecasts were determined assuming these exchange rates.
2. Pursuant to ASC 805 “Business Combinations,” the growth rates are calculated based on retrospectively adjusted previous period amounts.
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 taxes)
Corporate income taxes 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, 2015, NIDEC adopted FASB Accounting Standards Codification™ (ASC) 205 “Presentation of Financial Statements” and ASC 360 “Property, Plant, and Equipment” updated by Accounting Standards Update (ASU) No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 requires that a disposal of a component or a group of components of an entity should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. ASU 2014-08 also requires additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The adoption of this standard did not have any impact on NIDEC’s consolidated financial position, results of operations or liquidity.
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 in the computer, information storage and communication technology, home appliance, industrial and commercial machinery and equipment, automobile and related product markets, particularly levels of consumer spending and capital expenditures by companies, (ii) the Nidec Group’s ability to expand its business portfolio into new business areas in the highly competitive automotive, appliance, commercial and industrial product markets, (iii) the Nidec Group’s ability to design, develop, mass produce and win acceptance of its products, (iv) alleged or actual product defects and malfunctions of any end-product in which our products are incorporated, (v) the effectiveness of measures designed to reduce costs and improve profitability, (vi) the Nidec Group’s ability to acquire and successfully integrate companies with complementary technologies, product lines and marketing and sales networks, (vii) the Nidec Group’s ability to match production and inventory levels with actual demand, (viii) natural and human-caused disasters and other incidents, (ix) the ability to procure raw materials and attract and retain qualified personnel at satisfactory cost levels, (x) 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 and (xi) adverse changes in laws, regulations or economic policies in any of the jurisdictions where the Nidec Group has manufacturing or other operations.
3. Consolidated Financial Statements (U.S. GAAP) (unaudited)
(1) Consolidated Balance Sheets
Assets
Yen in millions | |||||
September 30, 2015 | March 31, 2015 | Increase or decrease | |||
Amount | % | Amount | % | Amount | |
Current assets: | |||||
Cash and cash equivalents | ¥286,606 | ¥269,902 | ¥16,704 | ||
Trade notes receivable | 19,226 | 15,221 | 4,005 | ||
Trade accounts receivable | 233,661 | 222,396 | 11,265 | ||
Inventories: | |||||
Finished goods | 82,028 | 75,398 | 6,630 | ||
Raw materials | 56,254 | 51,182 | 5,072 | ||
Work in process | 40,816 | 39,187 | 1,629 | ||
Supplies and other | 4,770 | 5,107 | (337) | ||
Other current assets | 49,869 | 50,622 | (753) | ||
Total current assets | 773,230 | 54.4 | 729,015 | 53.7 | 44,215 |
Investments and advances: | |||||
Marketable securities and other securities investments | 18,003 | 21,516 | (3,513) | ||
Investments in and advances to affiliated companies | 1,937 | 2,167 | (230) | ||
Total investments and advances | 19,940 | 1.4 | 23,683 | 1.8 | (3,743) |
Property, plant and equipment: | |||||
Land | 47,908 | 47,427 | 481 | ||
Buildings | 193,455 | 189,742 | 3,713 | ||
Machinery and equipment | 446,923 | 430,019 | 16,904 | ||
Construction in progress | 40,863 | 33,831 | 7,032 | ||
Sub-total | 729,149 | 51.3 | 701,019 | 51.6 | 28,130 |
Less - Accumulated depreciation | (368,263) | (25.9) | (358,897) | (26.4) | (9,366) |
Total property, plant and equipment | 360,886 | 25.4 | 342,122 | 25.2 | 18,764 |
Goodwill | 169,479 | 11.9 | 162,959 | 12.0 | 6,520 |
Other non-current assets | 98,118 | 6.9 | 99,561 | 7.3 | (1,443) |
Total assets | ¥1,421,653 | 100.0 | ¥1,357,340 | 100.0 | ¥64,313 |
Liabilities and Equity
Yen in millions | |||||
September 30, 2015 | March 31, 2015 | Increase or decrease | |||
Amount | % | Amount | % | Amount | |
Current liabilities: | |||||
Short-term borrowings | ¥91,830 | ¥52,401 | ¥39,429 | ||
Current portion of long-term debt | 12,704 | 45,485 | (32,781) | ||
Trade notes and accounts payable | 203,186 | 194,998 | 8,188 | ||
Accrued expenses | 36,604 | 33,375 | 3,229 | ||
Other current liabilities | 43,622 | 36,689 | 6,933 | ||
Total current liabilities | 387,946 | 27.3 | 362,948 | 26.7 | 24,998 |
Long-term liabilities: | |||||
Long-term debt | 183,606 | 184,612 | (1,006) | ||
Accrued pension and severance costs | 19,501 |
| 19,576 |
| (75) |
Other long-term liabilities | 37,425 | 37,105 | 320 | ||
Total long-term liabilities | 240,532 | 16.9 | 241,293 | 17.8 | (761) |
Total liabilities | 628,478 | 44.2 | 604,241 | 44.5 | 24,237 |
Equity: | |||||
Common stock | 87,784 | 6.2 | 77,071 | 5.7 | 10,713 |
Additional paid-in capital | 116,134 | 8.2 | 105,459 | 7.8 | 10,675 |
Retained earnings | 463,499 | 32.6 | 427,641 | 31.5 | 35,858 |
Accumulated other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 117,268 | 131,332 | (14,064) | ||
Net unrealized gains and losses on securities | 5,028 | 7,412 | (2,384) | ||
Net gains and losses on derivative instruments | (1,713) | (1,072) | (641) | ||
Pension liability adjustments | (2,855) | (2,844) | (11) | ||
Total accumulated other comprehensive income (loss) | 117,728 | 8.2 | 134,828 | 9.9 | (17,100) |
Treasury stock, at cost | (29) | (0.0) | (27) | (0.0) | (2) |
Total Nidec Corporation shareholders’ equity | 785,116 | 55.2 | 744,972 | 54.9 | 40,144 |
Noncontrolling interests | 8,059 | 0.6 | 8,127 | 0.6 | (68) |
Total equity | 793,175 | 55.8 | 753,099 | 55.5 | 40,076 |
Total liabilities and equity | ¥1,421,653 | 100.0 | ¥1,357,340 | 100.0 | ¥64,313 |
(2) Condensed Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Result for the six months ended September 30
Consolidated Statements of Income
Yen in millions | ||||||||
Six months ended September 30 | Increase or decrease | Year ended March 31, 2015 | ||||||
2015 | 2014 | |||||||
Amount | % | Amount | % | Amount | % | Amount | % | |
Net sales | ¥587,352 | 100.0 | ¥489,511 | 100.0 | ¥97,841 | 20.0 | ¥1,028,385 | 100.0 |
Cost of products sold | 453,056 | 77.2 | 373,077 | 76.2 | 79,979 | 21.4 | 786,486 | 76.5 |
Selling, general and administrative expenses | 47,025 | 8.0 | 42,334 | 8.7 | 4,691 | 11.1 | 85,781 | 8.3 |
Research and development expenses | 25,421 | 4.3 | 22,177 | 4.5 | 3,244 | 14.6 | 45,179 | 4.4 |
Operating expenses | 525,502 | 89.5 | 437,588 | 89.4 | 87,914 | 20.1 | 917,446 | 89.2 |
Operating income | 61,850 | 10.5 | 51,923 | 10.6 | 9,927 | 19.1 | 110,939 | 10.8 |
Other income (expenses): | ||||||||
Interest and dividend income | 896 | 1,120 | (224) | 2,359 | ||||
Interest expenses | (790) | (741) | (49) | (1,487) | ||||
Foreign exchange gain (loss), net | 2,422 | 435 | 1,987 | 804 | ||||
Gain (loss) from marketable securities, net | 920 | 6 | 914 | 70 | ||||
Other, net | (1,889) | (1,205) | (684) | (5,593) | ||||
Total | 1,559 | 0.3 | (385) | (0.1) | 1,944 | - | (3,847) | (0.4) |
Income before income taxes | 63,409 | 10.8 | 51,538 | 10.5 | 11,871 | 23.0 | 107,092 | 10.4 |
Income taxes | (15,218) | (2.6) | (13,188) | (2.7) | (2,030) | - | (29,033) | (2.8) |
Equity in net income (loss) of affiliated companies | 5 | 0.0 | 17 | 0.0 | (12) | (70.6) | 29 | 0.0 |
Consolidated net income | 48,196 | 8.2 | 38,367 | 7.8 | 9,829 | 25.6 | 78,088 | 7.6 |
Less: Net (income) loss attributable to noncontrolling interests | (574) | (0.1) | (1,654) | (0.3) | 1,080 | - | (2,073) | (0.2) |
Net income attributable to Nidec Corporation | ¥47,622 | 8.1 | ¥36,713 | 7.5 | ¥10,909 | 29.7 | ¥76,015 | 7.4 |
Consolidated Statements of Comprehensive Income
Yen in millions | |||||
Six months ended September 30 | Increase or | Year ended | |||
2015 | 2014 | decrease | March 31, 2015 | ||
Amount | Amount | Amount | % | Amount | |
Consolidated net income | ¥48,196 | ¥38,367 | ¥9,829 | 25.6 | ¥78,088 |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustments | (14,541) | 31,461 | (46,002) | - | 77,753 |
Net unrealized gains and losses on securities | (2,384) | 1,364 | (3,748) | - | 3,243 |
Net gains and losses on derivative instruments | (641) | (191) | (450) | - | (1,048) |
Pension liability adjustments | (23) | 109 | (132) | - | (2,534) |
Total | (17,589) | 32,743 | (50,332) | - | 77,414 |
Total comprehensive income (loss) | 30,607 | 71,110 | (40,503) | (57.0) | 155,502 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (85) | (2,103) | 2,018 | - | (3,037) |
Comprehensive income (loss) attributable to Nidec Corporation | ¥30,522 | ¥69,007 | ¥(38,485) | (55.8) | ¥152,465 |
Result for the three months ended September 30
Consolidated Statements of Income
Yen in millions | |||||||
Three months ended September 30 | Increase or decrease | ||||||
2015 | 2014 | ||||||
Amount | % | Amount | % | Amount | % | ||
Net sales | ¥302,311 | 100.0 | ¥249,323 | 100.0 | ¥52,988 | 21.3 | |
Cost of products sold | 232,205 | 76.8 | 189,343 | 75.9 | 42,862 | 22.6 | |
Selling, general and administrative expenses | 25,234 | 8.3 | 21,690 | 8.7 | 3,544 | 16.3 | |
Research and development expenses | 13,767 | 4.6 | 11,402 | 4.6 | 2,365 | 20.7 | |
Operating expenses | 271,206 | 89.7 | 222,435 | 89.2 | 48,771 | 21.9 | |
Operating income | 31,105 | 10.3 | 26,888 | 10.8 | 4,217 | 15.7 | |
Other income (expenses): | |||||||
Interest and dividend income | 411 | 559 | (148) | ||||
Interest expenses | (445) | (344) | (101) | ||||
Foreign exchange gain (loss), net | 865 | 761 | 104 | ||||
Gain (loss) from marketable securities, net | 184 | 6 | 178 | ||||
Other, net | (1,066) | (786) | (280) | ||||
Total | (51) | (0.0) | 196 | 0.1 | (247) | - | |
Income before income taxes | 31,054 | 10.3 | 27,084 | 10.9 | 3,970 | 14.7 | |
Income taxes | (7,057) | (2.4) | (7,015) | (2.8) | (42) | - | |
Equity in net income (loss) of affiliated companies | (0) | (0.0) | 13 | 0.0 | (13) | - | |
Consolidated net income | 23,997 | 7.9 | 20,082 | 8.1 | 3,915 | 19.5 | |
Less: Net (income) loss attributable to noncontrolling interests | (170) | (0.0) | (942) | (0.4) | 772 | - | |
Net income attributable to Nidec Corporation | ¥23,827 | 7.9 | ¥19,140 | 7.7 | ¥4,687 | 24.5 |
Consolidated Statements of Comprehensive Income
Yen in millions | |||||
Three months ended September 30 | Increase or | ||||
2015 | 2014 | decrease | |||
Amount | Amount | Amount | % | ||
Consolidated net income | ¥23,997 | ¥20,082 | ¥3,915 | 19.5 | |
Other comprehensive income (loss), net of tax | |||||
Foreign currency translation adjustments | (25,957) | 40,151 | (66,108) | - | |
Net unrealized gains and losses on securities | (2,001) | 683 | (2,684) | - | |
Net gains and losses on derivative instruments | (642) | (383) | (259) | - | |
Pension liability adjustments | 100 | 127 | (27) | (21.3) | |
Total | (28,500) | 40,578 | (69,078) | - | |
Total comprehensive income (loss) | (4,503) | 60,660 | (65,163) | - | |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 293 | (1,572) | 1,865 | - | |
Comprehensive income (loss) attributable to Nidec Corporation | ¥ (4,210) | ¥59,088 | ¥(63,298) | - |
(3) Consolidated Statements of Cash Flows
Yen in millions | ||||
Six months ended September 30 | Increase or decrease | Year ended March 31, 2015 | ||
2015 | 2014 | |||
Consolidated net income | ¥48,196 | ¥38,367 | ¥9,829 | ¥78,088 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 30,373 | 25,373 | 5,000 | 53,404 |
Gain from marketable securities, net | (920) | (6) | (914) | (70) |
Gain from sales, disposal or impairment of property, plant and equipment | (78) | (264) | 186 | (275) |
Deferred income taxes | 2,345 | 2,849 | (504) | 6,523 |
Equity in net income of affiliated companies | (5) | (17) | 12 | (29) |
Foreign currency adjustments | (596) | 441 | (1,037) | 1,634 |
Changes in operating assets and liabilities: | ||||
Increase in notes and accounts receivable | (13,367) | (13,213) | (154) | (20,109) |
Increase in inventories | (11,859) | (16,649) | 4,790 | (29,565) |
Increase in notes and accounts payable | 9,960 | 5,963 | 3,997 | 10,054 |
Increase in accrued income taxes | 1,895 | 837 | 1,058 | 220 |
Other | 3,676 | (2,129) | 5,805 | (8,000) |
Net cash provided by operating activities | 69,620 | 41,552 | 28,068 | 91,875 |
Cash flows from investing activities: | ||||
Additions to property, plant and equipment | (47,814) | (24,522) | (23,292) | (58,042) |
Proceeds from sales of property, plant and equipment | 805 | 1,644 | (839) | 3,110 |
Purchases of marketable securities | (504) | (3) | (501) | (6) |
Proceeds from sales or redemption of marketable securities | 1,276 | 14 | 1,262 | 68 |
Acquisitions of business, net of cash acquired | (9,721) | - | (9,721) | (27,343) |
Other | (3,280) | (264) | (3,016) | 983 |
Net cash used in investing activities | (59,238) | (23,131) | (36,107) | (81,230) |
Cash flows from financing activities: | ||||
Increase in short-term borrowings | 38,324 | 23,126 | 15,198 | 29,592 |
Proceeds from issuance of long-term debt | 258 | 73 | 185 | 78 |
Repayments of long-term debt | (12,977) | (18,510) | 5,533 | (30,104) |
Purchases of treasury stock | (25) | (30) | 5 | (2,159) |
Payments for additional investments in subsidiaries | (36) | (110) | 74 | (292) |
Dividends paid to shareholders of Nidec Corporation | (11,764) | (7,585) | (4,179) | (15,859) |
Other | (306) | (451) | 145 | (764) |
Net cash provided by (used in) financing activities | 13,474 | (3,487) | 16,961 | (19,508) |
Effect of exchange rate changes on cash and cash equivalents | (7,152) | 14,604 | (21,756) | 31,025 |
Net increase in cash and cash equivalents | 16,704 | 29,538 | (12,834) | 22,162 |
Cash and cash equivalents at beginning of period | 269,902 | 247,740 | 22,162 | 247,740 |
Cash and cash equivalents at end of period | ¥286,606 | ¥277,278 | ¥9,328 | ¥269,902 |
(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 its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation in the fiscal year ended March 31, 2014. During the three months ended December 31, 2014, NIDEC completed its valuation of such assets and liabilities of Nidec Sankyo CMI Corporation and Nidec Elesys Corporation.
Consolidated financial statements for the previous year and the three months ended June 30, 2015 also have been retrospectively adjusted to reflect its valuation of the fair values of the assets acquired and the liabilities assumed upon the acquisitions of Nidec GPM GmbH (formerly Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt) in the fiscal year ended March 31, 2015. During the three months ended September 30, 2015, NIDEC completed its valuation of such assets and liabilities of Nidec GPM GmbH.
In addition, NIDEC is currently evaluating the fair values of the assets acquired and the liabilities assumed upon the acquisitions of companies executed in the fiscal year ending March 31, 2016. These assets and liabilities have been recorded on its consolidated balance sheet based on preliminary management estimation as of September 30, 2015. These evaluations do not have material impacts on NIDEC’s consolidated financial position, results of operations or liquidity.
Subsequent Events
Not applicable.
4. Supplementary Information (Six months ended September 30, 2015) (unaudited)
(1) Quarterly Financial Data for the three months ended September 30, 2015 and June 30, 2015
Yen in millions | ||||
Three months ended | ||||
June 30, 2015 | September 30, 2015 | |||
Amount | % | Amount | % | |
Net sales | ¥285,041 | 100.0 | ¥302,311 | 100.0 |
Operating income | 30,745 | 10.8 | 31,105 | 10.3 |
Income before income taxes | 32,355 | 11.4 | 31,054 | 10.3 |
Consolidated net income | 24,199 | 8.5 | 23,997 | 7.9 |
Net income attributable to Nidec Corporation | ¥23,795 | 8.3 | ¥23,827 | 7.9 |
Note: Pursuant to ASC 805 “Business Combinations,” the results of operations for the three months ended June 30, 2015 have been retrospectively adjusted.
(2) Information by Product Category
Yen in millions | ||||||||||||||||
Six months ended September 30, 2015 | ||||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥222,513 | ¥276,185 | ¥53,582 | ¥32,528 | ¥2,544 | ¥587,352 | ¥- | ¥587,352 | ||||||||
Intersegment | 1,256 | 2,378 | 7,076 | 2,514 | 960 | 14,184 | (14,184) | - | ||||||||
Total | 223,769 | 278,563 | 60,658 | 35,042 | 3,504 | 601,536 | (14,184) | 587,352 | ||||||||
Operating expenses | 187,987 | 257,158 | 52,488 | 31,425 | 3,024 | 532,082 | (6,580) | 525,502 | ||||||||
Operating income | ¥35,782 | ¥21,405 | ¥8,170 | ¥3,617 | ¥480 | ¥69,454 | ¥(7,604) | ¥61,850 |
Yen in millions | ||||||||||||||||
Six months ended September 30, 2014 | ||||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥190,308 | ¥218,378 | ¥45,022 | ¥32,499 | ¥3,304 | ¥489,511 | ¥- | ¥489,511 | ||||||||
Intersegment | 500 | 186 | 2,538 | 221 | 3,495 | 6,940 | (6,940) | - | ||||||||
Total | 190,808 | 218,564 | 47,560 | 32,720 | 6,799 | 496,451 | (6,940) | 489,511 | ||||||||
Operating expenses | 160,155 | 201,340 | 40,934 | 30,365 | 6,497 | 439,291 | (1,703) | 437,588 | ||||||||
Operating income | ¥30,653 | ¥17,224 | ¥6,626 | ¥2,355 | ¥302 | ¥57,160 | ¥(5,237) | ¥51,923 |
Yen in millions | ||||||||||||||||
Three months ended September 30, 2015 | ||||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥118,455 | ¥138,868 | ¥26,930 | ¥16,705 | ¥1,353 | ¥302,311 | ¥- | ¥302,311 | ||||||||
Intersegment | 592 | 2,242 | 3,894 | 1,226 | 475 | 8,429 | (8,429) | - | ||||||||
Total | 119,047 | 141,110 | 30,824 | 17,931 | 1,828 | 310,740 | (8,429) | 302,311 | ||||||||
Operating expenses | 100,953 | 130,469 | 26,713 | 15,926 | 1,544 | 275,605 | (4,399) | 271,206 | ||||||||
Operating income | ¥18,094 | ¥10,641 | ¥4,111 | ¥2,005 | ¥284 | ¥35,135 | ¥(4,030) | ¥31,105 |
Yen in millions | ||||||||||||||||
Three months ended September 30, 2014 | ||||||||||||||||
Small precision motors | Automotive, appliance, commercial and industrial products | Machinery | Electronic and optical components | Others | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥100,419 | ¥108,134 | ¥22,743 | ¥16,330 | ¥1,697 | ¥249,323 | ¥- | ¥249,323 | ||||||||
Intersegment | 173 | 54 | 1,481 | 102 | 1,770 | 3,580 | (3,580) | - | ||||||||
Total | 100,592 | 108,188 | 24,224 | 16,432 | 3,467 | 252,903 | (3,580) | 249,323 | ||||||||
Operating expenses | 85,001 | 99,547 | 20,410 | 15,182 | 3,290 | 223,430 | (995) | 222,435 | ||||||||
Operating income | ¥15,591 | ¥8,641 | ¥3,814 | ¥1,250 | ¥177 | ¥29,473 | ¥(2,585) | ¥26,888 |
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: Spindle motors for HDDs, brushless motors, fan motors, vibration motors, brush motors and motor applications, etc.
(2) Automotive, appliance, commercial and industrial products: Automotive motors and components, home appliance, commercial and industrial motors and related products.
(3) Machinery: Industrial robots, card readers, test systems, pressing machines and power transmission drives, etc.
(4) Electronic and optical components: Switches, trimmer potentiometers, lens units and camera shutters, etc.
(5) Others: Services, etc.
3. Pursuant to ASC 805 “Business Combinations,” previous period amounts have been retrospectively adjusted.
4. Basic research and development expenses that were previously included in “Automotive, appliance, commercial and industrial products” category have been reclassified to “Eliminations/ Corporate” category since the three months ended December 31, 2014. Accordingly, the basic research and development expenses for the six months ended September 30, 2014 have been retrospectively reclassified.
(3) Sales by Geographic Segment
Yen in millions | ||||||
Six months ended September 30 | Increase or decrease | |||||
2015 | 2014 | |||||
Amount | % | Amount | % | Amount | % | |
Japan | ¥140,069 | 23.9% | ¥134,513 | 27.5% | ¥5,556 | 4.1% |
U.S.A | 103,646 | 17.6% | 82,506 | 16.9% | 21,140 | 25.6% |
Singapore | 37,625 | 6.4% | 32,292 | 6.6% | 5,333 | 16.5% |
Thailand | 52,163 | 8.9% | 39,785 | 8.1% | 12,378 | 31.1% |
Philippines | 13,016 | 2.2% | 13,183 | 2.7% | (167) | (1.3)% |
China | 139,713 | 23.8% | 112,825 | 23.0% | 26,888 | 23.8% |
Others | 101,120 | 17.2% | 74,407 | 15.2% | 26,713 | 35.9% |
Total | ¥587,352 | 100.0% | ¥489,511 | 100.0% | ¥97,841 | 20.0% |
Yen in millions | ||||||
Three months ended September 30 | Increase or decrease | |||||
2015 | 2014 | |||||
Amount | % | Amount | % | Amount | % | |
Japan | ¥70,461 | 23.3% | ¥68,869 | 27.6% | ¥1,592 | 2.3% |
U.S.A | 51,306 | 17.0% | 41,766 | 16.8% | 9,540 | 22.8% |
Singapore | 20,553 | 6.8% | 16,085 | 6.5% | 4,468 | 27.8% |
Thailand | 27,658 | 9.1% | 20,296 | 8.1% | 7,362 | 36.3% |
Philippines | 5,316 | 1.8% | 6,660 | 2.7% | (1,344) | (20.2)% |
China | 74,072 | 24.5% | 56,722 | 22.7% | 17,350 | 30.6% |
Others | 52,945 | 17.5% | 38,925 | 15.6% | 14,020 | 36.0% |
Total | ¥302,311 | 100.0% | ¥249,323 | 100.0% | ¥52,988 | 21.3% |
Note: The sales are classified by domicile of the seller, and the figures exclude intra-segment transactions.
(4) Sales by Region
Yen in millions | ||||||
Six months ended September 30 | Increase or decrease | |||||
2015 | 2014 | |||||
Amount | % | Amount | % | Amount | % | |
North America | ¥117,726 | 20.1% | ¥92,862 | 19.0% | ¥24,864 | 26.8% |
Asia | 297,050 | 50.6% | 249,413 | 50.9% | 47,637 | 19.1% |
Europe | 74,149 | 12.6% | 49,798 | 10.2% | 24,351 | 48.9% |
Others | 6,067 | 1.0% | 4,683 | 1.0% | 1,384 | 29.6% |
Overseas sales total | 494,992 | 84.3% | 396,756 | 81.1% | 98,236 | 24.8% |
Japan | 92,360 | 15.7% | 92,755 | 18.9% | (395) | (0.4)% |
Consolidated total | ¥587,352 | 100.0% | ¥489,511 | 100.0% | ¥97,841 | 20.0% |
Yen in millions | ||||||
Three months ended September 30 | Increase or decrease | |||||
2015 | 2014 | |||||
Amount | % | Amount | % | Amount | % | |
North America | ¥59,687 | 19.7% | ¥47,325 | 19.0% | ¥12,362 | 26.1% |
Asia | 153,830 | 50.9% | 128,107 | 51.4% | 25,723 | 20.1% |
Europe | 38,974 | 12.9% | 24,370 | 9.7% | 14,604 | 59.9% |
Others | 3,107 | 1.0% | 2,231 | 0.9% | 876 | 39.3% |
Overseas sales total | 255,598 | 84.5% | 202,033 | 81.0% | 53,565 | 26.5% |
Japan | 46,713 | 15.5% | 47,290 | 19.0% | (577) | (1.2)% |
Consolidated total | ¥302,311 | 100.0% | ¥249,323 | 100.0% | ¥52,988 | 21.3% |
Note: The sales are classified by domicile of the buyer, and the figures exclude intra-segment transactions.
5. Other information (unaudited)
(1) Summary of Consolidated Financial Performance
Yen in millions (except for per share amounts) | |||||||
Six months ended September 30 | Increase or decrease | Three months ended September 30 | Increase or decrease | Year ended March 31, 2015 | |||
2015 | 2014 | 2015 | 2014 | ||||
Net sales | ¥587,352 | ¥489,511 | 20.0% | ¥302,311 | ¥249,323 | 21.3% | |
Operating income | 61,850 | 51,923 | 19.1% | 31,105 | 26,888 | 15.7% | |
Ratio of operating income to net sales | 10.5% | 10.6% | 10.3% | 10.8% | |||
Income before income taxes | 63,409 | 51,538 | 23.0% | 31,054 | 27,084 | 14.7% | |
Ratio of income before income taxes to net sales | 10.8% | 10.5% | 10.3% | 10.9% | |||
Net income attributable to Nidec Corporation | 47,622 | 36,713 | 29.7% | 23,827 | 19,140 | 24.5% | |
Ratio of net income attributable to Nidec Corporation to net sales | 8.1% | 7.5% | 7.9% | 7.7% | |||
Net income attributable to Nidec Corporation per share-basic | ¥160.75 | ¥133.11 | ¥80.12 | ¥69.40 | |||
Net income attributable to Nidec Corporation per share-diluted | ¥159.57 | ¥124.85 | ¥79.84 | ¥65.09 | |||
Total assets | ¥1,421,653 | ¥1,249,209 | ¥1,357,340 | ||||
Nidec Corporation shareholders’ equity | 785,116 | 579,156 | 744,972 | ||||
Nidec Corporation shareholders’ equity to total assets | 55.2% | 46.4% | 54.9% | ||||
Nidec Corporation shareholders’ equity per share | ¥2,633.45 | ¥2,099.90 | ¥2,533.07 | ||||
Net cash provided by operating activities | ¥69,620 | ¥41,552 | ¥91,875 | ||||
Net cash used in investing activities | (59,238) | (23,131) | (81,230) | ||||
Net cash provided by (used in) financing activities | 13,474 | (3,487) | (19,508) | ||||
Cash and cash equivalents at end of period | ¥286,606 | ¥277,278 | ¥269,902 |
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.
(2) Scope of Consolidation and Application of the Equity Method
Number of consolidated subsidiaries: | 239 |
Number of affiliated companies accounted for under the equity method: | 4 |
(3) Change in Scope of Consolidation and Application of the Equity Method
Change from March 31, 2015 | Change from September 30, 2014 | |
Number of companies newly consolidated: | 10 | 14 |
Number of companies excluded from consolidation: | 3 | 6 |
Number of companies newly accounted for by the equity method: | 1 | 1 |
Number of companies excluded from accounting by the equity method: | 2 | 2 |