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    Daiki Takayama • Goldman Sachs

    Daiki Takayama's questions to Nidec Corp (NJDCY) leadership

    Daiki Takayama's questions to Nidec Corp (NJDCY) leadership • Q4 2025

    Question

    Daiki Takayama inquired about the phasing of the JPY 150 billion cost reduction plan over three years, asking about the balance and timing between fixed and variable cost cuts.

    Answer

    An unnamed executive explained that the company will prioritize fixed cost reductions first, aiming to realize the benefits starting in the current fiscal year. The reduction of variable costs, which involves discontinuing non-core businesses and requires customer negotiations, is expected to have a more significant impact later in the plan, closer to fiscal year 2027.

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    Daiki Takayama's questions to Nidec Corp (NJDCY) leadership • Q1 2025

    Question

    Daiki Takayama of Goldman Sachs inquired about the water-cooling module business, seeking an updated sales and profit forecast, details on customer concentration with SUPER MICRO, and plans for in-house component production. He also asked for the rationale behind the confident profit outlook for the traction motor business in China and Europe, and questioned the visibility of the 2030 organic growth and M&A targets under the new long-term strategy.

    Answer

    Executive Shigenobu Nagamori and an executive explained that the water-cooling business is performing well ahead of plan, with Q1 sales around JPY 7 billion and the full-year forecast more than doubled. They emphasized a focus on their primary customer, SUPER MICRO, to ensure quality, stating that in-house production of critical components like quick couplings is ramping up. Regarding traction motors, an executive detailed that profitability in China is expected from the smooth launch of Gen 3 products and completed fixed cost handling, while in Europe, close JV partner collaboration is reducing costs toward Q3 profitability. The long-term JPY 7 trillion organic growth target is a bottom-up calculation from business units, with the JPY 3 trillion M&A plan designed to fill strategic gaps.

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