Nidec Automotive Motors

Strategy and Prospects

Automotive Business Vision

Aiming to achieve overwhelming growth by taking advantage of

rapidly advancing electrification
Automotive Business Vision
Contributing to
realization of safe,
comfortable and
environmentally
conscious society
through
electrification in
which motors play a
key role

Customer
orientation

Global
environment

Technological
innovation

Creating additional
value in
collaboration by
adapting to changes
in market and
customer requests
promptly and
flexibly

Taking the technological innovations in automotive

field as a growth opportunity, and pursuing future
technologies by unifying the groups capabilities

Business Environment : Global Mega Supplier

Numerous players exceeding one trillion yen sales

(Sales per annum in Trillions of Yen)

Targeting 1 trillion yen sales in 2020

(Target)
(Organic growth and M&A growth)
5

4)
2 01
or
lt f
esu
al R 20 )
ctu
20
r
(A
ec
t f o al
rge
n
Nid
(Ta natio
ec
er
Nid
Int
ler
n te ower
on
Be
o ci
ai P
ich
to m
Au
We
mp
sta
Ge
co
lli
nn e
ar e
Te
ti M sei
gn e
n
Ma ic Ka
n
ls o
Ca
iv
es
t ol
stri
Au
nd u
aI
y
y ot
p an
To
om
KT
sC
JTE
t em
Sys
hle
o ku strial
Ma
o sh
u
aB
In d stem s
&
y ot
y
To
iv e iv e S
t
o
t
t om
mo
Au Au to
ay u
Hu
r
fle
aef
p
ru p
s
Sch
rie
en K
u st
y ss
In d
Th
i
tric
lec
zak
Ya
oE
om
mit
Su
tive
leo
mo
Va
uto
iA
lph
De
s
rol
ar
o nt
Le
nC
n so
Jo h
ia
rec
ki
Fau
Sei is
in
ob
Ais
ai M
u nd l
a
Hy
ent
ntin
Co
fen
ns o ch sh a
i
De
al
ed r at ion
Fri
ern
ZF
Int
gn a ch
os
rt B
Ma

be
Ro

3
(Nidec estimates based on various sources)
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.

Business Environment: Changing Competitive Landscape

Investments are accelerating in powertrain/safety technologies
which lead to future autonomous driving
(ZFs acquisition of TRW followed by Magnas acquisition of Getrag)
<Tier 1 Top 10 Sales in 2009>

<Tier 1 Top 10 Sales in 2014>

Denso

Robert Bosch

Robert Bosch

Magna International

Aisin Seiki

ZF

Changes in
sales ranking
due to large
acquisitions

Continental
Johnson Controls

Faurecia

Aisin Seiki

Delphi Automotive

Faurecia

TRW

Johnson Controls

25,000

50,000

** Acquired TRW

Continental

Hyundai Mobis

(Millions of US Dollars)

Denso

Magna International

ZF

* Acquired Getrag

Lear

(Millions of US Dollars)

25,000

50,000

(Nidec estimates based on various sources)

Automotive Business Trend (1)

Auto parts clearly being polarized

on the back of the electrification trend

on this side
Commoditized
products
(hard to survive)

1) Hydraulic parts
2) Mechanical parts, etc.
Accelerated market
consolidation

Electrification of
automotive parts

Expected to
integrate with
electric
components to
survive

Environment

Safety
Comfort,
Convenience

High-value
added
products

1) Motors, Actuators
2) ECUs
3) Sensors incl. cameras
4) Batteries
5) Materials

System reforms boosted through enhanced

environmental regulations across the world
Improvement of safety functions with
electronic control

Electrification of general equipment, improvement

of information and communication equipment

Automotive Business Trend (2)

Customers accelerating to switch over to suppliers

with global supply capabilities
Competitor
A

Competitor
B

Competitor
C

Competitor
D

Competitor
E

Competitor
F

Competitor
G

Brushless motor
comprehensive
strength

Global supply
capability

Scale

Quality

Cost
competitiveness

Power-pack
development
capabilities

Mid-Term Business Plan

Targeting 1 trillion yen sales and

double-digit operating income ratio in FY2020
(Operating Income
in Billions of Yen)
125

(Sales in Billions of Yen)

1,250

New M&A (LHS)

Organic Sales (LHS)
Operating Income (RHS)

1,000

100

750

75

500

50

250

25

0
FY14

FY15

FY16

FY17

(Forecast)
(Target)
(Target)
This slide includes forward-looking statements. See disclaimer on page 2 of this presentation.

FY18

FY19

FY20

(Target)

(Target)

(Target)

Automotive Products

Nidec steadily building its product lineups since the mid-1990s

Chassis

Lane keep
Millimeter
Surround view
assistant system wave radar Camera module
camera lens units
for
sensing
camera
(LKAS) unit
unit

Electric power steering motors & ECU

Rearview
camera
module

ADAS
(Advanced Driving
Assistance Systems)

ABS/EPS motors

Body

ADAS (Advanced Driving Assistance Systems)

ABS ECU

Suspension oil valve control

stepping motors

Powertrain

Occupant
detection system
(ODS) unit

Head-up display (HUD)

Car
Seat haptic
audio/Navigation
motor
system cooling fans

Body

Chassis

Seat air
conditioning fans

Seat adjuster motors

Switches
AT/CVT control Solenoid
valve

Dual cluch
transmission
actuators

Spool

Transmission oil
pump

Conventional Switchable water

pump
water pump

Engine cooling
fan motors

Geared motors
for engine
mount

Transmission oil pumps / Pump motors

Variable water pump

Idle speed control Base bracket for Heat-Resistant

oil cooler
Products
stepping motors

Powertrain

Automotive door mirror

parts, Audio panel, Switch
parts

Module

Geared motor
for active
grille shutters

Motors for
headlight
levelizer

Window lift
motors

Sunroof
motors

Rivet contacts for

automotive relays

Door lock
module

Rivet contacts for

automotive relays

Trunk open
motors

Product Strategy

Launching products based on our technologies nurtured through IT

experiences to make things light, thin, short and compact

Example 2

Example 1
Power-packs for electric power steering

Superior cost
competitiveness of brushless
motors to brushed motors
Worlds
smallest

Millimeter wave radar/camera integrated

sensor fusion

Technology to
make motors
light, thin,
short and
compact

Enabling millimeter
wave radar to fit in
vehicle interior
Worlds
smallest

Example 3
Electric water pump modules

Developed worlds smallest and

lightest product with our unique
technologies: power-packs
combining motors+pumps+ECUs

Worlds
smallest

Strategy (1): Power-Packs for Electric Power Steering

Introducing new products for Column Type EPS

expected to grow significantly
Aiming to replace brushed motors with our strategic
brushless motors in Column Type and to expand
brushless business further to dominate the market

<EPS* market estimate (by type)>

(Millions of Units)
80

Electrically powered hydraulic steering

70

Rack Type

70

Pinion Type
60

61

64

67

57

Column Type

52
47

50

40

42

40
30
20
10
0
CY12

CY13

CY14

CY15

CY16

CY17

CY18

CY19

*EPS: Electric Power Steering

CY20
(Nidec estimates based on various sources)

10

Strategy (2): Next-Generation Braking System

The market expected to grow fast in response to demand for safety

10 OEMs agreed to make automatic emergency braking
(AEB) a standard feature on new vehicles in the U.S.
A motor serves as the key component for the nextgeneration braking system to which Nidec can apply its
EPS motor technologies.
<ADAS market estimate>
(Millions of Units)
20

20
Millimeter wave radar/camera
integrated sensor fusion

16
15

12
10

6
5

Motors for nextgeneration braking

system

2
0
CY16

CY17

CY18

CY19

CY20

(Nidec estimates based on various sources)

11

Strategy (3): Electric Water Pump Modules

Providing environmentally conscious solution: significant

improvement in energy efficiency of cooling water circulation
Integrating Nidecs motors with Nidec GPMs
pumps and Nidec Elesyss ECUs. Introducing
EWP* modules created through putting group
companies technologies together.

Environmental contribution (1):

Improvement of fuel efficiency

Mechanical
pump

<EWP* market estimate>

From belt drive to motor drive

(Millions of Units)
40

34
28

30

31

Environmental contribution (2):

More parts requiring cooling as
electrification advances

25
21

20

18

10

0
CY15

Electric pump

CY16

*EWP: Electric Water Pump

CY17

CY18

CY19

CY20

Cooling for
HEV/EV inverters
HEV/EV motors
Turbo chargers
(Nidec estimates based on various sources)

12

Strategy (4): Electric Oil Pump Modules

Providing environmentally conscious solution: significant improvement

on energy efficiency of transmission oil pumps
Combined energy efficient motor of Nidec, low
noised pump and high functional inverter of Nidec
Tosok.
Introducing electric oil pump modules created
through unifying superior Nidec group technologies.

Mechanical
pump

<EOP* market estimate>

21

20

16

15

11
10

5
1.3

0
CY16
*EOP: Electric Oil Pump

Electric pump

Switching the power source from

engines to electric motors

(Millions of Units)
25

Environmental contribution:
Improvement of fuel efficiency

CY17

CY18

CY19

IS & CS & SS**:

Intentionally stopping engines to save
energy
Shifting gears in DCT***:
Reducing energy loss by switching from
mechanical pumps to electric pumps
Cooling down driving motors in
HEV/EV:
By keeping traction motors temperature
stable, will assist its energy efficiency

CY20

**IS: Idling Stops, CS: Coasting Stops, SS:Sailing Stops

***DCT: Dual Clutch Transmission

(Nidec estimates based on various sources)

13

Advancing In-House Production

Large orders from Mega-Platform provide great opportunities to

enhance in-house production, critical for improving profitability
<

*
NMA Poland

Global Network>

Nidec (Dalian)

Nidec Elesys

Nidec (Zhejiang)

Nidec Sankyo CMI

*
NMA Germany

*
NMA Spain

Nidec GPM (Suzhou)

Nidec GPM
(Germany)

Nidec Automobile Motor (Zhejiang)

Nidec Elesys (Zhongshan)

Example of
in-house products

Nidec Automotive Motor (Juarez)

Nidec Tosok (San Luis Potosi)

(1)

(1) Die cast

(2)
(Flange
Shaft
(3) housing)
(2) Shaft
(3) Core
(4) Busbar
(4)
Brush card
(1)
Resin mold

Nidec India

Nidec Elesys (Thailand)

Nidec Elesys Americas

Nidec GPM (Brazil)

Nidec Tosok (Vietnam) (Die casting)

Nidec Tosok (Vietnam) (Auto Parts)
*NMA: Nidec Motors & Actuators

14

Nidec logo is a registered trademark or a trademark of Nidec Corporation in Japan, the United States and/or certain other countries.
All for dreams logo is a registered trademark of Nidec Corporation in Japan, and a trademark in the United States and/or certain other
countries.

15