Acquisition of Honda Elesys: Enhancing Automotive

Acquisition of Honda Elesys:
Enhancing Automotive Motor Business
30 October 2013
1
Cautionary Statement
Concerning Forward-Looking Information
This presentation material and related discussions contain forward-looking
statements regarding the intent, belief, strategy, plans or expectations of the Nidec
Group or other parties. Such forward-looking statements are not guarantees of
future performance or events and involve risks and uncertainties. Actual results
may differ materially from those described in such forward
forward-looking
looking statements as a
result of various factors, including, but not limited to, the failure to successfully
complete the planned transactions, the anticipated benefits of the planned
transactions not being realized, changes in general economic conditions particularly
in the automobile, information technology, home appliance, industrial and
commercial machinery and equipment, computer and related product markets, shifts
in technology or user preferences for particular technologies, and changes in
business and regulatory environments. For additional information regarding such
factors, risks and uncertainties, please refer to the annual report on Form 20-F,
20 F,
Japanese securities report and other current disclosures that the Nidec Group
companies have publicly released. The Nidec Group does not undertake any
obligation to update the forward-looking statements contained herein or the reasons
why actual results could differ from those projected in the forward-looking
statements except as required by law.
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1
Product Lineup of Honda Elesys
Adaptive Cruise Control
Collision Mitigation System
Camera
ACC & CMS
EPT
Lane Keeping Assist
Seatbelt
Pretensioner
Millimeter wave rader
ODS
Advanced
safety system
capabilities
Occupant Detection System
Occupant Position Detection System
Electronic control unit
EPS
Electric Power Steering
ABS
ESC
Anti-lock Brake System Electronic Stability Control
ESB
Electric Servo Brake
3
I. Our Strategy for Automotive
Motor Business and
P.Eagle
Objectives of the Transaction
M&A諮問委員会用資料
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Nidec’s Automotive Motor Business
Automotive motor business is one of the key growth areas
Single Focus
4 Pillars
FY2015 Sales: 1.2 Trillion
Yen (Target)
(Sales in billions of Yen)
FY2012 Sales: 709.3 Billion Yen
400
400
300
Key Growth Areas
300
100
200
400
319.7
200
300
300
Small
Precision
M t
Motors
161 8
161.8
86.7
Automotive
Appliance,
Commercial
and
Industrial
141.1
Other
Product
Groups
200
Small
Precision Automotive
Motors
100
Appliance,
Commercial
and
Industrial
Other
Product
Groups
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Growth Strategy for Automotive Motor Business
Combining ECU with three product lines, we aim to become
global No.1 automotive motor system manufacturer
Electric Power Steering Motors
Seeking No
1 market share
No.1
in electric power steering
Brushless Motors
Brushed Motors
More effective marketing of
small, light, and thin motors
Wider application of
small and efficient motors
ＥＣＵ
Entry into
EV/HEV drive motor
market
Higher value via modularization
Electronic Control Unit
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3
Expansion Strategy for Automotive Motor Business
From discrete motors to systemized and modularized motor units:
Aiming to accelerate shift in focus to higher value products
Fan module for
engine cooler
Module for
window lifter/sunroof
Expected
order intake
from FY2013
Ongoing effort for order
intake in FY2013
Module for engine
oil pump
Mass production
started in March 2013
Electric power steering
powerpack
Expected
order intake
from FY2013
Traction motor + inverter
Prototype delivered in FY2012
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Integration with Honda Elesys
We endeavor to bring together the strengths of the Nidec Group companies,
aiming to become a leading automotive electronics manufacturer
Competing
p
g with the world’s
leading automotive
electronics manufacturers
Entry into advanced
safety system market
Strength of global
operation platform
Our Automotive Motor Business
Dedicated manufacturer of motors and
actuators with strong customer base in
Europe, Americas and Japan
＋
Honda Elesys
Automotive ECU manufacturer with
advanced safety system capabilities
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4
Post Integration Business Structure
Nidec’s Automotive
Motor Business
Integration
Collaboration
Nidec Copal
Nidec Sankyo
Nidec Tosok
Nidec Kaiyu
Auto Electric
Collaboration under
common strategy
Honda Elesys
y
Seeking to maximize
synergies through efficient
integration effort
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Strength ＆ Weakness (Nidec/Elesys)
Nidec’s automotive motor business
S
Ｔ
Ｒ
Ｅ
Ｎ
Ｇ
Ｔ
Ｈ
W
Ｅ
Ａ
Ｋ
Ｎ
Ｅ
Ｓ
Ｓ
1. Experience/achievement in
Motors & Actuators
2. Global customers ((30+ customers))
(global sales network and customer
base)
3. Competitive speed and cost
4. Many team members with OEM/part
manufacturer background
Honda Elesys
1. Capabilities of systematization,
productization and advanced
elemental technology
gy
2. Know-how for R&D, production
and quality management of ECU
3. Appropriate scale of operations
to give a flexible response
4. Experienced Engineers
Mutually and
Complementarily combined
1. Limited capability of systematization
and control technology
1. Business model tailored for
specific customer base
2. Limited R&D and production
capacity for ECU
2. Limited sales networks
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5
Expected Synergy Goals:
Expansion of Automotive Motor Business
With a sales target of Y300 bil in FY2015, Nidec aims to transform from a component
manufacturer to a module systems manufacturer through integration with Honda Elesys
1. Introduce EPS Powerpack by combining
y ECUs and Nidec’s
Honda Elesys’
EPS motors
2. Introduce motor module systems by adding
Honda Elesys’ ECU capabilities to Nidec’s
non-EPS discrete motor business
3. Introduce advanced safety systems by
combining
bi i Honda
H d Elesys’
El
’ safety
f t ECUs
ECU and
d
Nidec group’s sensors / motors
under OEM partnership
4. Develop new systems for EV/HEV drive
motors
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Expected Synergy Goals：Synergy in Sales
¾Nidec is developing business with automakers around the world
through more than 30 customers globally
¾Honda Elesys is expected to be in a position to expand its
business through Nidec’s sales network
Main customers by region (based on FY2013 sales plan)
12
companies
4
companies
14
companies
4
companies
Nidec
Main Customers in Europe
欧州
Main Customers in America
北米
日本
Main Customers in Japan
p
アジア
Main Customers in Asia
その他
Others
Main Customers
ホ…
in Japan
そ
そ…
Others
Honda Elesys
12
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Expected Synergy Goals：Sales/R&D synergies
Nidec’s R&D base
Nidec’s sales branch
Elesys’ R&D base
Elesys’ sales branch
NCHS (China)
Sales branch
NAMA (North America)
Sales branch/R&D base
NCEU (Germany)
Sales
S l branch
b
h
NCKS (Korea)
Sales branch
Honda Elesys
R&D base
(Yokohama &
Utsunomiya)
Honda Elesys
Sales branch (Yokohama)
Honda Elesys
R&D base
(Ohio)
Japan Sales branch
(Tokyo & Shiga)
NMA Germany
R&D
& base
NIND (India)
Sales branch
Shiga
R&D base
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Expected Global Manufacturing Network of Integrated
Automotive Motor Business
ECU manufacturing facilities to enhance our global production capabilities
Elesys
production base
Nidec
production base
NMA (Germany)
Nidec Automobile
Motor
(Zhejiang)
NMA (Poland)
Nidec (Dalian)
Asia
Europe
NMA (J
(Juarez))
America
Honda Elesys
ECU mother
factory
Elesys North America Inc.
(US)
NMA (Spain)
Elesys Asian Co., Ltd.
(Thailand)
Nidec India
Automotive/home
appliance motors
production in preparation
Nidec Kaiyu
Factory for EPS
products
(brushed motors)
Zhongshan Elesys
(China)
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II. Honda Elesys
and Nidec’s Integrated
P.Eagle
Strategies in Advanced Safety System Areas
M&A諮問委員会用資料
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Areas of Potential Collaboration Between Nidec and
Honda Elesys (Advanced Safety Systems)
Comfort
Active safety
systems
Adaptive
cruise
control
collision
mitigation
systems
Lane
keeping
systems
Present
Motion
adaptive
EPS
Future
Traffic sign
recognition
High beam
support
Advanced
full-time
four-wheel
drive
Driving
support
Electronic
stability
control
Warning
Collision
avoidance
Collisionavoidance
emergencysteering
Existing
technologies
Lane mark
Passive safety
systems
Frontal
collision
Seatbelt
pretensioner
Key product areas
for Nidec and
Honda Elesys
Passenger recognition
system / Passenger
posture recognition sensor
Future
technologies
Collision
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