Takayuki Naito's questions to Nidec Corp (NJDCY) leadership • Q1 2025
Question
Takayuki Naito of Citigroup Securities questioned the specifics of the upward revision to the full-year forecast, asking for a breakdown of the JPY 15 billion first-half increase and the rationale for a seemingly conservative second half. He also asked if the cooling business forecast was intentionally conservative. His second question focused on the long-term strategy, inquiring about the operating profit margin targets for the five new business pillars by 2030 and whether a 15% margin was considered achievable across all of them.
Answer
Executive Akinobu Samura explained that the Q1 operating profit of JPY 60 billion significantly beat the JPY 45 billion target, with JPY 10.1 billion from a one-time accounting gain on the NPe consolidation. This outperformance drove the upward revision. CEO Mitsuya Kishida added that the forecast for the developing cooling business is indeed cautious. On long-term profitability, Kishida stated that a 15% operating profit ratio is the minimum target for all successful business areas, emphasizing it is part of Nidec's 'D&A' and the company will not pursue business lines that cannot achieve this level of profitability.