151022nidecengauto2-151109053531-lva1-app6892

8/18/2019 151022nidecengauto2-151109053531-lva1-app6892

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Aiming to achieve overwhelming growth by taking advantage ofrapidly advancing electrification

Automotive Business Vision

Contributing torealization of safe,

comfortable andenvironmentally

conscious societythrough

electrification inwhich motors play a

key role

Creating additionalvalue in

collaboration byadapting to changes

in market andcustomer requests

promptly andflexibly

Taking the technological innovations in automotivefield as a growth opportunity, and pursuing future

technologies by unifying the group’s capabilities

Automotive Business Vision

Customerorientation

Globalenvironment Technological

innovation

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Numerous players exceeding one trillion yen sales

Business Environment : Global Mega Supplier

0

1

2

3

4

5

R o b e r t B o s c h

M a g n

a I n t e r n a t i o n a l

Z F F r i e d r i c h s h a f e n

D e n s o

C o n t i n e n t a l

H y u n d a i M o b i s

A i s i n S e i k i

F a u r e c i a

J o h n s o n C o n t r o l s

L e a r D e l p h

i A u t o m o t i v e

V a l e o S u m i t

o m o E l e c t r i c I n d u s t r i e s

Y a z a k i

T h y s s e n K r u p p

S c h a e f f l e r

H u a y u A u t o m o t i v e S y s t e m

s

A u t o m o t i v e & I n d u s t r i a l S y s t e m s C o m p a

n y

T o y o t a B o s h o k u

M a h l e

J T E K T

T o y o t a I n d u s t r i e s

A u t o l i v

C a l s o n i c K a n s e i

M a g n

e t i M a r e l l i

T e n n e c o

G e s t a m p A u t o m o c i o n

W e i c h

a i P o w e r

B e n t e l e r I n t e r n a t i o n a l

N i d e c ( T a r g e t f o r 2 0 2 0 )

N i d e c ( A c t u a l R e s u l t f o r 2 0 1 4 )

Targeting 1 trillion yen sales in 2020(Target)

(Organic growth and M&A growth)

(Sales per annum in Trillions of Yen)

( Nidec estimates based on various sources) 3This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.


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0 25,000 50,000

Lear

Johnson Controls

Faurecia

Aisin Seiki

Hyundai Mobis

Continental

Denso

ZF

Magna International

Robert Bosch

Investments are accelerating in powertrain/safety technologieswhich lead to future autonomous driving

(ZF’s acquisition of TRW followed by Magna’s acquisition of Getrag)

Business Environment: Changing Competitive Landscape

0 25,000 50,000

ZF

TRW

Delphi Automotive

Faurecia

Magna International

Johnson Controls

Continental

Aisin Seiki

Robert Bosch

Denso

( Nidec estimates based on various sources)

(Millions of US Dollars) (Millions of US Dollars)

* Acquired Getrag

** Acquired TRW

Changes insales rankingdue to largeacquisitions

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Auto parts clearly being polarizedon the back of the electrification trend

Automotive Business Trend (1)

High-valueadded

products

1) Motors, Actuators2) ECUs3) Sensors incl. cameras4) Batteries5) Materials

1) Hydraulic parts2) Mechanical parts, etc.

Electrification of

automotive parts

Environment

Safety

System reforms boosted through enhancedenvironmental regulations across the world

Improvement of safety functions withelectronic control

Electrification of general equipment, improvementof information and communication equipment

Comfort,Convenience

Expected to

integrate withelectric

components tosurvive

Accelerated marketconsolidation

Commoditized products

(hard to survive)

on this side

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Customers accelerating to switch over to supplierswith global supply capabilities

Automotive Business Trend (2)

CompetitorA

CompetitorB

CompetitorC

CompetitorD

CompetitorE

CompetitorF

CompetitorG

Brushless motorcomprehensive

strength★★★ ★★★ ★★★ ★★ ★★★ ★★★ ★ ★

Global supplycapability

★★★ ★★★ ★★★ ★★ ★ ★★ ★ ★

Scale ★★★ ★★ ★★★ ★★ ★★★ ★★★ ★★ ★★★

Quality ★★★ ★★★ ★★★ ★★★ ★★★ ★★★ ★ ★

Costcompetitiveness

★★ ★★ ★ ★ ★ ★★ ★★★ ★★★

Power-packdevelopment

capabilities

★★ ★★★ ★★★ ★★★ ★

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Targeting 1 trillion yen sales anddouble-digit operating income ratio in FY2020

Mid-Term Business Plan

0

250

500

750

1,000

1,250

FY14 FY15 FY16 FY17 FY18 FY19 FY20

0

25

50

75

100

125 New M&A (LHS)

Organic Sales (LHS)

Operating Income (RHS)

(Sales in Billions of Yen) (Operating Incomein Billions of Yen)

(Forecast) (Target) (Target) (Target) (Target) (Target) 7This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.


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Nidec steadily building its product lineups since the mid-1990s

Automotive Products

Head-up display (HUD) Caraudio/Navigationsystem cooling fans

Seat hapticmotor

Seat airconditioning fans

Seat adjuster motors

Switches

Automotive door mirror parts, Audio panel, Switch parts

Rivet contacts forautomotive relays

Rivet contacts forautomotive relays

Geared motorfor activegrille shutters

Motors forheadlightlevelizer

Window lift

motors

Sunroof

motors

Door lock

module

Trunk open

motors

Body

AT/CVT controlvalve

Solenoid Dual cluchtransmission

actuators

Transmission oil pumps / Pump motors

Spool Transmission oil pump

Conventionalwater pump

Switchable water pump Variable water pump

Module

Engine cooling

fan motors

Geared motors

for enginemount

Idle speed control

stepping motors

Base bracket for

oil cooler

Heat-Resistant

ProductsPowertrain

ABS/EPS motors ABS ECU Suspension oil valve controlstepping motors

Chassis

Electric power steering motors & ECU

Rearviewcameramodule

Occupantdetection system(ODS) unit

Surround viewcamera lens units

ADAS (Advanced Driving Assistance Systems)

Millimeterwave radarunit

Lane keepassistant system(LKAS) unit

Camera modulefor sensing camera

Chassis

BodyADAS(Advanced Driving

Assistance Systems)

Powertrain

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Launching products based on our technologies nurtured through ITexperiences to make things light, thin, short and compact

Product Strategy

Technology tomake motors

light, thin,short andcompact

Example 1Power-packs for electric power steering

Example 2Millimeter wave radar/camera integratedsensor fusion

Example 3Electric water pump modules

Superior costcompetitiveness of brushless

motors to brushed motors

Enabling millimeterwave radar to fit invehicle interior

World’ssmallest

World’ssmallest

Developed world’s smallest andlightest product with our uniquetechnologies: power-packscombining motors+pumps+ECUs 9

World’ssmallest


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Introducing new products for Column Type EPSexpected to grow significantly

Strategy (1): Power-Packs for Electric Power Steering

0

10

20

30

40

50

60

70

80

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20

Electrically powered hydraulic steeringRack Type

Pinion Type

Column Type

40 4247

5257

6164 67

70

Aiming to replace brushed motors with our strategic brushless motors in Column Type and to expand

brushless business further to dominate the market

(Millions of Units)

*EPS: Electric Power Steering10

( Nidec estimates based on various sources)


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The market expected to grow fast in response to demand for safety

Strategy (2): Next-Generation Braking System

0

5

10

15

20

CY16 CY17 CY18 CY19 CY20

2

6

12

16

20

10 OEMs agreed to make automatic emergency braking(AEB) a standard feature on new vehicles in the U.S.

A motor serves as the key component for the next-generation braking system to which Nidec can apply its

EPS motor technologies.

(Millions of Units)

11( Nidec estimates based on various sources)

Millimeter wave radar/cameraintegrated sensor fusion

Motors for next-generation braking

system


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Providing environmentally conscious solution: significantimprovement in energy efficiency of cooling water circulation

Strategy (3): Electric Water Pump Modules

0

10

20

30

40

CY15 CY16 CY17 CY18 CY19 CY20

1821

2528

31

34

Integrating Nidec’s motors with Nidec GPM’s pumps and Nidec Elesys’s ECUs. IntroducingEWP* modules created through putting group

companies’ technologies together .

Environmental contribution (1):Improvement of fuel efficiency

Environmental contribution (2):

More parts requiring cooling aselectrification advances

From belt drive to motor drive

Cooling forHEV/EV invertersHEV/EV motorsTurbo chargers

Mechanical pump Electric pump

(Millions of Units)

*EWP: Electric Water Pump 12( Nidec estimates based on various sources)


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Providing environmentally conscious solution: significant improvementon energy efficiency of transmission oil pumps

Strategy (4): Electric Oil Pump Modules

0

5

10

15

20

25

CY16 CY17 CY18 CY19 CY20

1.3

5

11

16

21

Combined energy efficient motor of Nidec, lownoised pump and high functional inverter of NidecTosok.Introducing electric oil pump modules createdthrough unifying superior Nidec group technologies.

(Millions of Units)

Environmental contribution:Improvement of fuel efficiency

Switching the power source fromengines to electric motors

Mechanical pump Electric pump

IS & CS & SS**:Intentionally stopping engines to saveenergyShifting gears in DCT***:Reducing energy loss by switching frommechanical pumps to electric pumpsCooling down driving motors inHEV/EV:By keeping traction motor’s temperaturestable, will assist its energy efficiency

**IS: Idling Stops, CS: Coasting Stops, SS:Sailing Stops***DCT: Dual Clutch Transmission*EOP: Electric Oil Pump 13( Nidec estimates based on various sources)


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Large orders from Mega-Platform provide great opportunities toenhance in-house production, critical for improving profitability

Advancing In-House Production

Nidec Tosok (Vietnam) (Auto Parts)

Nidec Tosok (Vietnam) (Die casting)

Nidec Elesys Americas

NMA Spain

Nidec Elesys (Thailand)

Nidec Elesys

Nidec GPM(Germany)

Nidec Automobile Motor (Zhejiang)

Nidec Elesys (Zhongshan)

Nidec (Zhejiang) Nidec Sankyo CMI NMA Germany

NMA Poland Nidec (Dalian)

Nidec Tosok (San Luis Potosi)

Nidec GPM (Suzhou)

Nidec GPM (Brazil)

Nidec India

< Global Network>

Nidec Automotive Motor (Juarez) Example ofin-house products

Shaft

14

(2)

(1)

(1)

(4)

(3)

(1) Die cast(Flange

housing)(2) Shaft(3) Core(4) Busbar

Brush cardResin mold

*NMA: Nidec Motors & Actuators

*

*

*


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151022nidecengauto2-151109053531-lva1-app6892