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    Manabu Akizuki • Nomura Securities Co., Ltd.

    Manabu Akizuki's questions to Nidec Corp (NJDCY) leadership

    Manabu Akizuki's questions to Nidec Corp (NJDCY) leadership • Q4 2025

    Question

    Manabu Akizuki asked about the cash allocation for M&A in the mid-term plan, the assumptions for customer demand and inventory, and the outlook for the power generation and BESS business, including pricing power.

    Answer

    An unnamed executive detailed that operating cash flow is targeted to exceed JPY 500 billion in the final year, with a portion allocated for growth investments like M&A. He noted strong demand for servers and in India, which helps offset uncertainty elsewhere. For the BESS and power generation business, he confirmed strong demand, significant backlogs, and an environment conducive to aggressive pricing to improve profitability, calling it a "great business opportunity."

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    Manabu Akizuki's questions to Nidec Corp (NJDCY) leadership • Q1 2025

    Question

    Manabu Akizuki from Nomura Securities asked about the drivers of Q1 profitability upside, specifically if in-house component manufacturing for water-cooling systems was a key factor. He also requested an outlook for the ACIM and MOEN businesses, questioning the progress of restructuring and the reasons for a quarter-on-quarter profit decline. Lastly, he inquired about the new CEO's M&A strategy, particularly the potential size and focus area for future deals.

    Answer

    An executive clarified that while the water-cooling business exceeded profitability targets due to a rapid and efficient vertical startup, the contribution from in-house manufacturing was minimal in Q1 and is expected to increase in the second half. Executive Akinobu Samura addressed the ACIM and MOEN businesses, stating that the Q1 restructuring charge was about JPY 1 billion, with a focus on Europe. The slight QoQ profit decline was attributed to one-off factors, including increased loss estimates from a prior warehouse incident and pricing corrections. Regarding M&A, CEO Mitsuya Kishida noted a focus on industrial and mechanical targets and emphasized that building a strong M&A pipeline is a key priority for the new management team.

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    Manabu Akizuki's questions to Nidec Corp (NJDCY) leadership • Q4 2024

    Question

    Manabu Akizuki of Nomura Securities questioned the conservative nature of the fiscal 2024 sales forecast, inquired about long-term M&A strategy, and asked about pricing for the thermal module business.

    Answer

    Executive Mitsuya Kishida described the sales plan as a minimum commitment that incorporates known risks, stating confidence in exceeding it while focusing on profitability through efficiency and cost optimization. Executive Shigenobu Nagamori detailed the 10-year M&A strategy, which involves acquiring profitable companies in growing motor application areas to supplement organic growth, noting their expanded ability to execute large or even hostile takeovers. An executive also confirmed that for thermal modules, unit prices are expected to increase in line with higher kilowatt specifications due to the advanced, high-precision technology involved.

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