Nidec: Fiscal 2Q12 Financial Results

In the six months ended September 30, 2011, supply chains in Japan recovered from the disruptions caused by the earthquake in northern Japan in March 2011 recovered at a faster pace than expected, alleviating the concerns prevalent in the first quarter ended June 30, 2011.

The global economy, however, was adversely affected by the resurgence of concern over Greece’s financial situation, which rapidly led to a financial crisis in Europe generally, although. Moreover, the serious economic downturn in developed countries began to have a negative impact on newly emerging economies in the second quarter ended September 30, 2011.

Operating Results for Small Precision Motors
for This Fiscal First Half
Compared to the Same Period of the Prior Year
Net sales of small precision motors decreased approximately ¥11,900 million, or 7%, to ¥159,247 million for this fiscal first half compared to the same period of the prior year. This was mainly due to a decrease in sales of our small precision motors for HDDs. The appreciation of the Japanese yen and other Asian currencies against the U.S. dollar had a negative effect on our sales of small precision motors of approximately ¥16,500 million for this fiscal first half compared to the same period of the prior year.

Although the number of units sold of small precision motors for HDDs increased approximately 2%, sales of small precision motors for HDDs decreased approximately 11%, for this fiscal first half compared to the same period of the prior year. Average unit prices of spindle motors decreased approximately 2% on a U.S. dollar basis and 12% on a Japanese yen basis for this fiscal first half compared to the same period of the prior year. The number of units sold of spindle motors for 2.5-inch HDDs increased approximately 8% for this fiscal first half compared to the same period of the prior year, although the number of units sold of spindle motors for 3.5-inch HDDs decreased approximately 5% for this fiscal first half compared to the same period of the prior year. Sales of spindle motors for 2.5-inch and 3.5-inch HDDs decreased approximately 6% and 15%, respectively, for this fiscal first half compared to the same period of the prior year mainly reflecting the negative impact of the appreciation of the Japanese yen against the U.S. dollar.

Operating Results for Small Precision Motors
for This 2Q compared to this 1Q
Net sales of small precision motors increased approximately ¥7,400 million, or 10%, to ¥83,325 million for this 2Q compared to this 1Q. The number of units sold and sales of spindle motors for hard disk drives increased approximately 5% and 0.2%, respectively, for this 2Q compared to this 1Q. Average unit prices of spindle motors decreased approximately 4% on a Japanese yen basis, and increased slightly on a U.S. dollar basis, for this 2Q compared to this 1Q.

The number of units sold of spindle motors for 2.5-inch HDDs increased approximately 11%, although the number of units sold of spindle motors for 3.5-inch HDDs decreased approximately 3%, for this 2Q compared to this 1Q.

Forecasts of consolidated results
for the fiscal year ending March 31, 2012
Net sales ¥760,000 million (up 10.4% from the previous fiscal year)