Nidec : Presentation materials

TSE: 6594 OTC US: NJDCY https://www.nidec.com/en/

Nidec Corporation

Fiscal 2023 Financial Results

Fiscal Year Ended March 31, 2024

A coolant distribution unit, CDU installed in AI servers cools

the heat generated by GPU (graphics processing unit).

Disclaimer Regarding Forward-looking Statements

These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.

The first slide features the coolant distribution unit (CDU), that are mass-produced in Thailand. We plan to increase our production capacity to 2,000 units per month by June 2024 as our products have been adopted by Supermicro, an American AI server manufacturer. The jointly developed products with Supermicro of 100 to 250 kW are manufactured at our Ayutthaya Plant in Thailand.

2

Consolidated Profit/Loss		This slide includes forward-looking statements. See Disclaimer on Page 2.
					FY2024
	Millions of Yen, except for		FY2022	FY2023	Change
	percentages, EPS, and FX rates		Forecast
	Net sales		2,242,824	2,348,202	+4.7%	2,400,000
	Operating profit		100,028	163,106	+63.1%	230,000
	Operating profit ratio		4.5%	6.9%	-	9.6%
	Profit before		120,540	202,919	+68.3%	220,000
	income taxes
	Profit attributable to		44,964	125,387	+178.9%	165,000
	owners of the parent
	EPS (Yen)		78.12	218.22	+179.3%	287.16
	Dividends (Yen)		70.0	75.0	-	80.0
	FX rate (Yen/US$)
	Average:		135.47	144.62	+6.8%	Yen/US$: 145
	Term end:		133.53	151.41	+13.4%	Yen/Euro: 155

Note: Based on the current forecast of sales volume, every one yen appreciation or depreciation against the U.S. dollar and the euro for FY2024 is estimated to have an annualized impact of 10.0 billion yen and 1.9 billion yen on net sales, respectively, and 1.1 billion yen and 0.4 billion yen on operating profit, respectively.

Summary FY2023

• FY23 consolidated net sales and profit before income taxes stood at record highs.
• FY23 operating profit was 163.1 billion yen, as a result of 59.8 billion yen of structural reform expenses recorded due to strategic shift to improve the financial soundness and profitability of Battery EV related business.
• We project 40 yen of interim dividend and 80 yen of aggregate annual dividend for the year ending March 31, 2025.

3

4

Product Group Overview

*Please refer to Notes on Page 35.

Numbers inside parentheses refer to operating profit.

		Small Precision Motors					Automotive Products
(Billions of Yen)					Sales	Operating profit	(Billions of Yen)				Sales	Operating profit
(11.7%)	(9.6%)					(11.6%)							Operating profit after
13.0				(9.9%)
				13.0							structural reform expenses
	11.0
			(6.3%)	11.0		(7.7%)
										144.6	152.0	146.7
				6.0			7.5		140.9	140.4	125.1	137.6
						113.3
	115.2										(8.0%)		(4.0%)	(4.2%)
111.1	107.5	91.6		111.3	112.0						(3.7%)
	95.8	96.6							6.1
						(-0.0%)	5.5 (3.9%)			11.0	5.3	6.1
		4.9						(-5.7%)
							0.0
		(4.5%)	-2.2
Q1/FY22	Q2	Q3	Q4	Q1/FY23	Q2	Q3	Q4	Q1/FY22	Q2	Q3	Q4	Q1/FY23	Q2	Q3	Q4
		-8.0	-39.7 (-31.7%)		(-36.6%)-53.7
			(-2.4%)
	Appliance, Commercial and Industrial Products					Machinery
					Sales	Operating profit	(Billions of Yen)	(18.2%)				Sales	Operating profit
(Billions of Yen)								(18.3%)						(15.8%)
			238.9	240.8	237.5	248.9	14.6				(16.3%)
				13.4	(15.2%)		(15.6%)		12.9
	230.7	227.9	232.7	30.9						12.3
222.7
27.7	27.4	28.9			10.6	(9.4%)	11.0	(11.4%)
									6.9
	20.4	20.6		(12.9%)			(11.6%)						8.2
17.9		(11.5%)	(11.5%)
						80.3						81.3
	(8.8%)	(9.1%)	11.9					73.1	69.6		70.8	75.7	71.7
(8.0%)											73.6
			(5.1%)
Q1/FY22	Q2	Q3	Q4	Q1/FY23	Q2	Q3	Q4	Q1/FY22	Q2	Q3	Q4	Q1/FY23	Q2	Q3	Q4
							5

Year-on-Year Changes (Twelve Months Ended Mar. 31, 2024)

	+121.4		+29.7
(Billions of Yen)
					▲5.4	▲3.4
			▲30.5		▲6.5
2,242.8									2,348.2
FY22	Exchange	Small Precision	Automotive	Appliance,	Machinery	Electronic	FY23
	Rate		Motors	Products	Commercial		and Optical
					and Industrial		Components
				Products		and Others
(Billions of Yen)					+25.7
				+16.5		▲3.8	▲1.9	▲1.8
		+15.9	+3.7
	+8.7								163.1
100.0
FY22	Exchange	Structural	Small Precision	Automotive	Appliance,	Machinery	Electronic	Eliminations/	FY23
	Rate	Reform	Motors	Products	Commercial	and Optical	Corporate
		Expenses			and Industrial	Components
					Products		and Others		6

Quarter-on-Quarter Changes (Three Months Ended Mar. 31, 2024)

(Billions of Yen)	+12.9			+4.9	+8.8
		▲17.9	▲8.2			▲1.0
594.0							593.5
Q3/FY23	Exchange	Small Precision	Automotive	Appliance,	Machinery	Electronic	Q4/FY23
	Rate	Motors	Products	Commercial		and Optical
				and Industrial		Components
				Products		and Others
+1.2
(Billions of Yen)

																	602
		53.5															▲243
													+4.6		+0.4	536
												+0.7
					▲59.8							▲1.0			▲6.2
						▲5.7		▲0.1
		Q3/FY23	Exchange	Structural		Small Precision	Automotive	Appliance,	Machinery	Electronic	Eliminations/	Q4/FY23
			and Optical
				Rate	Reform		Motors	Products	Commercial		Corporate
						Components
					Expenses					and Industrial
									and Others			7
												Products
Promoting Cash Flow Management
				Aiming to enhance cash generating ability
	through improving operating profit ratio and optimizing working capital
										FY23 operating CF	(Billions of yen)
(Billions of yen)		Operating CF	Investment CF		Free CF		reaching our highest level		Investment CF (Excluding M&A)
				Investment CF (M&A)
												117.2		Operating CF
													Free CF
								81.7				92.5				321.5
										59.6	63.0
								49.3
									49.3
		28.2	26.5		31.9	37.8								143.5
23.0		24.5											167.9
17.2
													95.0
								10.0		12.4	13.7
1.0			4.5
(6.1)		(2.8)		(6.8)
	(17.0)			(21.8)
(22.0)			(22.0)			(27.9)	(32.4)			(24.7)		(17.6)	(21.5)
	(34.3)	(34.3)			(34.6)
				(46.3)			(56.1)		(47.2)		(49.3)
														(112.6)
Q1	Q2	Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2		Q3	Q4			(164.9)	(153.6)
		FY21	FY22	FY23
	FY21				FY22				FY23
																	8

Capital Expenditure, Depreciation and R&D

This slide includes forward-looking statements.

See Disclaimer on Page 2.

Capital expenditure	Depreciation	R&D
(Billions of Yen)
137.8	131.6
130.0	130.0
112.0	119.5
		81.3	81.1

95.0 Continue active capital investment and R&D to

support mid to-long-term

growth

FY22	FY23	FY24	FY22	FY23	FY24	FY22	FY23	FY24
		(Forecast)			(Forecast)			(Forecast)

9

FY2024 Forecast		This slide includes forward-looking statements. See Disclaimer on Page 2.
	Millions of Yen, except for		1H/FY2024		2H/FY2024		Full-Year
	EPS, dividends and FX rate
	Net sales		1,140,000		1,260,000		2,400,000
	Operating profit		100,000		130,000		230,000
	Operating profit ratio		8.8%		10.3%		9.6%
	Profit before income taxes		95,000		125,000		220,000
	Profit attributable to		74,000		91,000		165,000
	owners of the parent
	EPS (Yen)		128.79		158.37		287.16
	Dividends (Yen)		40.00		40.00		80.00
	FX Rate (Yen/US$)		145		145		145
	FX Rate (Yen/Euro)		155		155		155

10

Restart in Battery EV Related Business in FY2024

This slide includes forward-looking statements. See Disclaimer on Page 2.

Profitability bottoms out in Q4 FY2023. FY2024 is expected to see improved profitability.

(Sales: Billions of Yen)
		*			**
80	AMEC (LHS)			NPe (LHS)
Operating profit (RHS)
			Plan for FY24	43.2
			remains unchanged
40
				29.4
10.5				18.4
9.1	10.0
	3.0			0.3
	0.4
0
Q1	Q2	Q3	Q4	Q1	Q2	Q3
	-4.2	FY23	-5.1		-3.1FY24
	-6.1
			-6.5

(Operating profit: Billions of Yen)

6

4.5

46.1

3

0

Q4

	M4	FY23Q4- (210kW) for C-segment
				New!
	Peugeot e-3008 Peugeot e-5008
M3	FY22Q4- (125kW) for B-segment
DS3 E-Tense Jeep Avenger	Fiat 600e	Peugeot e-2008 Peugeot e-208 Opel Mokka-e
			M2	FY24Q1- (80kW) for A-segment

	One-off expenses due to
-64.9	revaluation of assets

*AMEC: Automotive Motor & Electronic Control Business Unit

**NPe: Nidec PSA emotors (Joint venture of Nidec and Stellantis)

C3 elec

Fiat panda

C3 Aircross elec

Opel Crossland

11

Automotive (Existing Business): Increasing Demand for Automotive Motors with a Tailwind from Drive-By-Wire Technology

Drive-by-wire technology develops with autonomous driving.

Nidec's products contribute to evolution of automobiles

Increasing demand for motors that contribute to safety and reliability

of next-generation mobility

Feedback actuator

When the steering system is converted to a by-wire system, the driver's "steering" of the steering wheel and the vehicle's "turning" of the tires are mechanically separated. In this case, feed back actuator gives reaction force to the steering wheel and assists the driver's movements.

Electric power steering motor (rack type)

This motor works in conjunction with steering and is responsible for the actuation of the tire's turning motion. Compared to conventional power steering systems, steer-by-wire systems require a higher level of safety (redundancy).

Electric brake booster

This motor generates hydraulic amplification force when the brake is applied. It not only ensures safety during emergency braking but also contributes to improved fuel efficiency by integrating with regenerative braking in electric vehicles.

Column adjuster

This motor is used for the system that moves the steering column itself, with the aim of enhanced comfort and safety such as the driver's car entry or steering wheel retraction during autonomous driving

Electro-mechanical brake

The next-generation motor for oil-free mechanical brake systems. It is directly integrated next to the brake caliper, enabling compact design and ensuring high responsiveness, especially for automatic emergency braking.

12

Automotive (Existing Business): Aiming to Receive Orders for the Whole Body through Integration with ECU*

Vehicle architectures will change from current distributed/integrated control to zone control

Distributed/integrated control	Zone control
				Information platform	Door zone
Integrated	ECU	Integrated	ECU		Vehicle computer
ECU	ECU
			Center
						Front
				Zone A	Zone B	zone	zone
				Zone C
							Door zone
	Sensor		Sensor & actuator

Whole car seat strategy (center zone)

Rear zone

Motor for seat massagers that enables massage inside cars

Haptics device that gives drivers heads-up by vibrating seats

*ECU: Electronic Control Unit	Power seat switch for
controlling seat position

Fan motor that blows out warm/cold air from seats

Seat memory controller that automatically adjusts seat to registered position

Seat slide motor that enables seat slide

13

Machinery and Others: Precision Gears

We cover all types of gears needed for the axis of industrial robots

from SCARA* to large-sized6-axis articulated robots

Strain wave reducers

SCARA COBOT**

"World's first" built-inMulti-sensor

Smart-FLEXWAVE

Three sensors seamlessly integratedTorque sensor: Detects output torque Temperature sensor:

Detects internal temperature of the Angle sensor: Detects input angle

Realizing super space saving, light weight and reasonable price by integrating sensors into reducer's existing space

Cycloidal reducers

Turret heads Welding robots

	*SCARA: Selective Compliance Assembly Robot Arms
Application example:	**COBOT: Collaborative Robot
14
Middle-sized 6 axis robot

Machinery and Others: Press Machines

With more M&As in sight, we aim to become the world's No.1 press machine manufacturer by

completing comprehensive product lineups

Press machine for	Servo press
can manufacturing

Beverage cans

High speed precision press for

motor core

Products lineups from Japanese,

US and Spanish press machine manufacturers

We offer customers full-support from manufacturing, sales, maintenance from our global three footprints

High-speed servo roll

feeder

Motor core

Battery

10t-4,500t press machines to peripheral equipment	Servo feeder
One of the widest product lineups in the world
			Servo roll feeds
Home appliances,	Electronic Parts,	Semiconductors
Car parts	Auto parts,	（Lead frame）	15
Connectors

Machinery and Others: Machine Tools

This slide includes forward-looking statements. See Disclaimer on Page 2.

We aim to expand product lineups to become global comprehensive machine tool manufacturer

Large general

purpose machines

	Others	Machining
	17%
1%	center
Grinding
	machines 7% Approx.	40%
	10 Trillion

Aim to become the world's No.1 global comprehensive machine tool manufacturer by FY30

1. Provide functions and services that are really needed by end users (avoid excessive specification and quality for reasonable pricing)
2. Local production for local customers and speedy management (provide products within relatively short delivery time)
3. Complement product lineups and business areas with M&As to expand business scale

Gear cutting		yen / year
machines	2%
	Lathe
		33%

High-endSo farproducts

Mid-range

products

Products with

limited functions

	High-end	In the future
	products
Mid-range	Mid-range products
products A
with higher price

Mid-range	Just enough functions with
products B	low-end range price

Products with

limited functions

16

Small Precision Motors: Water-Cooling Modules (1)

This slide includes forward-looking statements. See Disclaimer on Page 2.

We plan to increase production capacity to address the increasing demand for water-cooling modules

for GPUs* and CPUs** for AI servers generating significant heat

(Unit/Quarter)	water-cooling modules and related products>
			LCM: Liquid Cooling Module		Quick Coupling
					CDM:	Cold Plate
					Coolant
					Distribution
					Manifold
						Radiator	Pump
				CDU: Coolant Distribution Unit
					Nidec can provide every type of
					water-cooling modules and related
						products (systems and
					components), utilizing technologies
					and production facilities of Fluid
Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4				Dynamic Bearings.
FY23	FY24	FY25	*GPU: Graphics Processing Unit			17
**CPU: Central Processing Unit

Small Precision Motors: Water-Cooling Modules (2)

Aiming to receive more orders by capitalizing on the business track record for different tiers

we cultivated through fan motor business

Semiconductor manufacturers

CPU/GPU

Manufacturerofwatercooling	Delivery	ODMs/OEMs (Taiwanesecompanies)	Delivery	Servermanufacturers	Delivery
module		Delivery			Delivery

HPC/AI servers

Owners/operators of data centers

AI server

HPC* system	Communications system
*HPC: High Performance Computing

18

Appliance, Commercial and Industrial: Products by Sub-segment

Nidec

Techno

Motor

ACIM*

Brushless	Brushless	Three-phase induction motors
DC motors	DC motors

-sized motors>
MOEN**
*ACIM: Appliance, Commercial and Industrial Motors. Sub-segment of Appliance, Commercial and Industrial as a main segment.		19
**MOEN: Motion & Energy

Appliance, Commercial and Industrial: Growth Area of MOEN Business (1)

This slide includes forward-looking statements. See Disclaimer on Page 2.

Expanding production capacity to respond to increasing demand

from North American data center manufacturer

(Sales: Billions of yen)

CAGR 12%

Starting sales expansion to the U.S. and Chinese markets from European market where Nidec has a strong presence

(Sales: Billions of yen)

CAGR 28%

240.7

216.1

183.6 193.6

152.8

41.6

26.9

72.3

60.1

45.5

		Grid Connection
		Solar Power
		Wind Power
	Generators for
Data center	auxiliary power	BESS(Battery Energy Storage System)	20
supply unit