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Nidec Revises Consolidated Financial Forecast and Year-End Dividend Projection for the Year Ending March 31, 2020

KYOTO, Japan, Oct. 23, 2019 (GLOBE NEWSWIRE) — Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company”) today announced downward revision to its IFRS-based consolidated financial forecast and upward revision to its year-end dividend projection for the year ending March 31, 2020, previously announced on July 24, 2019.
The details are as follows:Revised consolidated financial forecast (IFRS) for the year ending March 31, 2020
From April 1, 2019 to March 31, 2020 (Millions of yen, except for per share amounts and percentages)
Reasons for the revision for the financial forecastThe Company has revised downward its full-year consolidated financial forecast for the following
reasons.
1.  Increased start-up costs for automotive related products (approx. 30 billion yen impact on operating profit)The Company estimates additional start-up costs for R&D and production of traction motors which are expected to remain in high demand in the second half of the year ending March 31, 2020.2.  Completion of sale of Secop refrigeration compressor business (approx. 20 billion yen impact on the profit attributable to owners of the parent)As condition for approval of Embraco acquisition, the European Commission ordered the Company to sell its compressor business of Secop. Accordingly, the Company transferred effective operational control over the business to a Hold Separate Manager and Monitoring Trustee in April 2019. Since then, the Company has excluded the business of Secop from its scope of consolidation and classified the loss on the transfer of Secop in discontinued operations. The Company completed the sale of Secop in September 2019 and incurred the total loss of 19,955 million yen due to the sale for the six months ended September 30, 2019.Notes:The provided financial forecast assumes the exchange rates of 105 yen against the U.S. dollar and 125 yen against the euro. The same exchange rates were used for the preparation of the previously announced forecast.
 
During the six months ended September 30, 2019, the Company completed the provisional accounting treatment for business combination. As a result, figures for the year ended March 31, 2019 reflect the revision of the initially allocated amounts of acquisition price.
 
Since the three months ended June 30, 2019, the Company has classified the refrigeration compressor business of Secop as discontinued operations. As a result, the Company’s net sales, operating profit and profit before income taxes no longer include the financial results of discontinued operations.
Revised year-end dividend projection for the year ending March 31, 2020
Dividends per share (yen) for the year ending March 31, 2020
Reasons for the revision for dividend projectionThe Company upholds shareholder-oriented management and places importance on regular dividend payments, seeking to increase its dividend payout to around 30% of the consolidated
net profit. Based on this policy and in view of the current financial condition, profit level, and dividend payout ratio, the Company decided to revise upward its year-end dividend projection for the year ending March 31, 2020 from 55.00 yen per share to 60.00 yen per share, making the projected aggregate annual dividend 115.00 yen per share.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements including expectations, estimates, projections, plans, and strategies. Such forward-looking statements are based on management’s assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group’s ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the Japanese security report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.
NIDEC CORPORATION CORPORATE OFFICE: 338 KUZETONOSHIRO-CHO, MINAMI-KU, KYOTO 601-8205 JAPAN PHONE: KYOTO +81-75-935-6140 FAX: +81-75-935-6141 URL: https://www.nidec.com/en/
Masahiro Nagayasu
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
 

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