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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
2
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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
4
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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
5
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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
★★ ★★★ ★★★ ★★★ ★
6
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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
8
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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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