Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	875,109	709,270	23.4	-Greater sales at the Automotive, Appliance, Commercial and Industrial Products Division, which is the Company’s strategic area, boosted profitability
Operating income	85,068	17,598	383.4
Nidec Corporation
Sales	27,599	23,748	16.2	-The Company realigned and expanded its business portfolio.
Operating income	4,865	(4,856)	-
Nidec Sankyo Corporation
Sales	98,564	73,201	34.6	-
Operating income	10,392	4,181	148.6
Nidec Tosok Corporation
Sales	36,854	31,090	18.5	-The subsidiary began mass-producing automotive components for new customers. Weaker yen against Chinese yuan.
Operating income	3,186	1,715	85.8
Nidec Motor Corporation
Sales	175,854	119,093	47.7	-
Operating income	9,314	723	1188.2	-Greater sales, Addition of new company to consolidated financial statements
Nidec Motors & Actuators
Sales	64,420	44,707	44.1	-The subsidiary began mass-producing new motors for electric power steering system. Weaker yen against the US dollar and the euro.
Operating income	5,334	3,447	54.7

Business Policy

Tripling sales at automotive division
-In May 2013, the Company is poised to enhance modularization in the area of in-vehicle motors. The Company is developing value-added motor solutions integrated with electronic control units (ECUs) or electric oil pumps. In order to improve the revenue base, the Company has positioned the in-vehicle motor division as its core business line. Sales target of the division is set at JPY 300 billion, a more than threefold rise from the current level. By accelerating new product releases and promoting mergers and acquisitions, the Company aims to gain new customers, while increasing business with existing customers. The Company is going to tap into new areas, which include starters and alternators for vehicles equipped with automatic engine start-stop systems as well as wiper products. In order to obtain more business in the global market, it is intending to deliver high value-added products in this area, too, by offering not only motors alone but also motors with ECUs and motor modules. (From an article in the Nikkan Jidosha Shimbun on May. 1, 2013)

Acquisitions

Acquiring Honda Elesys
-In Oct. 2013, Honda Motor Co., Ltd. announced that it will transfer its entire shareholding in Honda Elesys Co., Ltd. to Nidec Corporation by March 2014. Honda Elesys is Honda's subsidiary, which produces and develops electronic control units. In the area of automotive control technology, it is becoming increasingly vital to integrate electronic components with mechanical components. By becoming a part of the Nidec Group, Honda elesys is expected to be able to develop such highly-functional products at a low cost, increasing its competitiveness. There will be no change in the location of Honda elesys' headquarters or plants, and all 742 employees will maintain their current positions.

Acquiring Mitsubishi Materials C.M.I.
-Nidec Sankyo Corporation announced that it has agreed to acquire full ownership of Mitsubishi Materials C.M.I. Corporation, a consolidated subsidiary of Mitsubishi Materials Corporation. This transaction is expected to close by the end of 2013. CMI manufactures and sells medium-diameter stepping motors and relays for automobiles, while Nidec Sankyo focuses on small-diameter stepping motors for optical disk drives, digital cameras, gaming consoles and others. Through this acquisition, Nidec Sankyo will enter the in-vehicle motor business, including valve motors. (From an article in the Nikkan Jidosha Shimbun on September 27, 2013)

Contracts

-In September 2013, Nidec Tosok Corporation announced that it has started supplying its new control valves for continuously variable transmissions (CVTs) to Honda Motor Co., Ltd. This will be the first time that the Company's products are used in Honda vehicles. Production is being carried out at the supplier's subsidiary in Vietnam. These control valves are installed on the "new Fit".

-Nidec Tosok Corporation announced that its electric oil pumps are featured on Fuji Heavy Industries' Subaru "XV Hybrid." The electric oil pump, which has been jointly developed with Nidec Corporation, uses brushless motors to improve durability and reduce size. Nidec Tosok also developed the whole pump system including an inverter that controls the electric oil pump. (From an article in the Nikkan Jidosha Shimbun on July 27, 2013)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	37,808	34,278
-Nidec Corporation	19,896	18,340
-Nidec Sankyo Corporation	3,919	4,297
-Nidec Tosok Corporation	831	1,065
-Nidec Motor Corporation	4,689	3,324
-Nidec Motors & Actuators	1,491	1,118

R&D Structure

<Nidec Corporation>
-Nidec Research and Development Center in Japan, Nidec Research and Development Center in Singapore, and Nidec Research and Development Center in Taiwan conduct research on basic technologies related to motors in general that are expected to become a core part of the Company's global R&D strategy. Shiga Technical Center engages in research and development activities aimed at new product development, mass production of new models, and improvement of product quality related to small precision DC motors and fan motors, excluding those used for HDDs. Nidec's technical development center in Dalian, China is capable of performing reliability testing and product assessment of brushless and brush motors. The facility is expected to serve the needs of Chinese OEMs and Tier 1 suppliers in an efficient manner.

<Nidec Tosok Corporation>

• Head Office / Technical Center (Kanagawa Pref., Japan)
• Nidec Tosok (Vietnam) Co., Ltd. (Ho Chi Minh CIty, Vietnam)
• Suzhou, China (Under planning)

R&D Activities

<Nidec Corporation>
-Nidec Corporation is strengthening its development of new products targeting emerging markets such as China, India and Brazil as well as developed markets.

-The Company is developing next-generation of;

• small and high-performance power steering motors,
• motors for applications other than power steering such as seats, brakes and sunroofs, and ancillary electronic control units (ECUs),
• brushless motors used for hydraulic and electric power systems
• package products that combine motors with sensors and control units

<Nidec Sankyo Corporation>
-With respect to stepping motors, in an effort to expand the range of their applications to automobiles, Nidec Sankyo has been downsizing products, enhancing product performance and improving cost-performance.

<Nidec Tosok Corporation>
-R&D activities are focused on developing new technologies and products in the following three sectors.

• Existing products: further raising the functions and performance of control-valve assemblies for automatic transmissions and CVTs.
• Applied technology for electromagnetic values: developing environmentally friendly and energy-saving automotive products such as diesel-engine fuel control valves.
• Products compatible with automotive electrification: developing products for hybrid and electric vehicles such as electric oil pumps, in line with the advances taking place in technology on electric control units, motors, and inverters.

<Nidec Motors & Actuators>
-The Nidec Motors & Actuators segment conducts research and development on automotive motors mainly in Germany and Spain.

• In Germany, Nidec Motors & Actuators aims to commercialize lighter weight and rare earth-free small motors for use in automobile seats and sunroof. In cooperation with Nidec Corporation, Nidec Motors & Actuators develops ABS motors that are more durable and downsized compared to the existing products.
• In Spain, Nidec Motors & Actuators develops small and lightweight brush fan motors for engine cooling systems. In addition, starting in the fiscal year ended March 31, 2014, Nidec Motors & Actuators began developing high value-added products equipped with ECUs and inverters.

<Others>
-Nidec Copal Corporation plans to step up the development of automotive lenses. With respect to vehicle driving motors, Nidec Motor engages in modularization of motors with encoders based upon its rare earth-free SR motor technology, and in development activities aimed at hybridization and electrification of large-sized vehicles such as construction and agricultural machinery.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	40,297	61,368
-Nidec Corporation	1,884	1,991
-Nidec Sankyo Corporation	3,712	4,777
-Nidec Tosok Corporation	9,432	5,814
-Nidec Motor Corporation	4,134	3,594
-Nidec Motors & Actuators	3,019	1,845

Investment Outside Japan

<Mexico>
-In July 2014, Nidec Tosok Corporation will enter into the Mexican market. It will establish a plant to produce control valve assemblies for CVTs and automatic transmissions. The new operations are scheduled to begin in 2016. The Company expects that demand for control valves will grow significantly in Mexico, where its customers are stepping up local production of CVTs. These customers include Jatco Ltd., the Company's major customer, and Honda Motor, which will begin making CVTs in Mexico in the second half of 2015. CVTs made at Honda's Mexican facility will be mounted on the Fit, which will be the first Honda model that uses Nidec Tosok's products. Currently, control valve assemblies for the Mexican market are made at Nidec Tosok (Vietnam) and are delivered to each CVT plant via customers' Asian facilities. Nidec Tosok hopes to meet the needs of both existing and new potential customers in Mexico by supplying its products directly from its planned new factory.

<USA>
-In Mar. 2013, Nidec Corporation announced that it will establish a wholly-owned subsidiary, Nidec Automotive Motor Americas Corporation, in Michigan, U.S.A. on April 5, 2013. The new company, which will be capitalized at about USD 41 million (approximately JPY 3.8 billion), will oversee Nidec's in-vehicle motor business in the American market. By setting up the new subsidiary, Nidec is poised to enhance its production, sales, and development operations to win more orders in the North American market, where automakers are expanding their production volumes. (From an article in the Nikkan Jidosha Shimbun on Mar. 29, 2013)

Planned Capital Investments

(As of Mar. 31, 2014)

Name	Location	Type of facility and activities	Planned investing amount (in millions of JPY)	Start	Finish
Nidec India Private Limited	Rajasthan, India	Facilities to produce small precision motors, components for home electronics and commercial/industrial equipment, and automotive components	4,090	May 2014	Mar. 2015