My name is Chiharu Abe, General Manager, Institutional Sales Department of Mitsubishi UFJ Securities. As we start this conference, I would like to ask you to make sure all of materials are ready in front of you. If not, please download the files on Nidec's website right now. Please note this call is being recorded, and the conference materials will be posted on Nidec's website for the coming week for investors and analysts who are not able to join today's call. Now, I'd like to introduce today's attendees from Nidec Corporation. Mr. Akinobu Samura, Senior Vice President and Chief Financial Officer, and Mr. Masahiro Nagayasu, General Manager, Investor Relations. First, Mr. Samura will make a presentation. After his presentation, we will move on to Q&A session, and then Mr. Samura will answer your questions. Mr. Samura now presents Nidec's first quarter fiscal 2023 results, future outlook, and then management strategy. Mr. Samura, please go ahead.
Okay. Good day, everyone. I'm Akinobu Samura, Chief Financial Officer of Nidec. Please see slide three and four for our first quarter's results. As shown on slide four, you can see that the operating profit in each segment has recovered quite sharply in Q1. Please see slide seven. As quarterly operating cash flow keeps improving, we are targeting record high free cash flow in fiscal year 2023. In summary, on slide eight, net sales increased 4.8% year-on-year to JPY 566.1 billion. Operating profit increased 34.7% year-on-year to JPY 60.2 billion, marking a record high on quarterly basis.
Profit before income taxes increased 51% year-on-year to JPY 86.1 billion, after foreign currency gain of JPY 24.3 billion posted, marked a record high on a quarterly basis. Profit attributable to owners of parents increased 55% year-on-year to JPY 64 billion, marking a record high on quarterly basis. A quarterly operating profit of Appliance, Commercial, and Industrial, or ACI segment, which is one of our midterm growth drivers, marked a record high. Please see slide 12. We are going to realize high growth by capturing a green innovation demand created by the placement with high-efficiency motors.
As midterm growth drivers in the home appliance area, we offer brushless DC motors for air conditioners, washing machines, dryers, dishwashers, and compressors for refrigerators to meet the increasing demand for replacement with high-efficiency motors. In the commercial area, we continue to supply motors used for commercial air conditioners and robot modules used for e-commerce. In industrial area, we are focusing on battery energy storage solutions, essential systems in the renewable energy industry, and the joint venture business with FREYR, a semi-solid lithium-ion battery manufacturer. Please see slide 13. MOEN stands for motion and energy that handles medium to large-size motors, generators, drive and controls, elevators, robotics, infrastructure within ACI. MOEN business is expected to contribute to increase in sales and the profit of ACI in fiscal year 2023. Please see slide 14.
This slide illustrates 4 examples of solution business within MOEN. Please see Slide 15. The BESS business I just explained on the previous slide is expected to grow sharply against the backdrop of energy crisis caused by Russian invasion of Ukraine. Under the current circumstances, we have a 7.4 GW hour of BESS installed or in excursion in over 135 projects or 27 countries. We also completed establishment of a joint venture with Norwegian FREYR Battery last December. Thus paving the way for our further growth of BESS business. Now, please see Slide 16. Nidec has made inroads to a new business of aerospace electrification within ACI.
As you see, on the left, we have announced an agreement to establish a joint venture company called Nidec Aerospace to develop electric propulsion systems for the aerospace sector. The JV will develop and manufacture the electric propulsion system for electric vertical takeoff landing, or, we call, vehicles, to enter the urban air mobility market. Also, on the right, Nidec and the Japanese company SoftBank have jointly developed a lightweight, high efficiency and high reliability axial brace-type motor for high altitude platforms stations, or HAPS. This newly developed motor also meets the SaaS specifications required for Sunglider, the unmanned aircraft system developed by HAPSMobile Inc, a subsidiary of SoftBank.
As the world's leading comprehensive motor manufacturer, Nidec stays committed to developing products based on next technologies to develop a light, thin, short, small, high efficiency and highly controllable products, and to offering at an overwhelming speed, revolutionary solutions that contribute to the lives of people around the world. Now, please see Slide 17. We have acquired full ownership of Houma Armature Works, a privately owned U.S. company, from its founding family through our subsidiary, NMC. Houma has been a service partner that manufacturers motors and generators, and provides field service to oil and gas producers operating out of Louisiana and Texas.
The end users of their services, on and off shore during mining and wind renewable energy power generators and manufacturers, including Kato Engineering, Leroy-Somer, and U.S. Motors, all of which are under the Nidec umbrella. Through this acquisition, NMC will be able to enhance its service offering, including expanding its share within its own U.S. installed bases. Houma will be able to provide services to NMC's customers. Please see Slide 19. We are aiming to become number one automotive system company by anticipating the strong electrification demand boosted by CASE, or connected autonomous, sharing electronic mobility trends.
In the EV area, the EV traction motor-related business is expected to become profitable in fiscal year 2023 through introduction of Gen2 whose targeted replacement ratio is over 18%, and by reducing the cost and the shipment volumes of Gen1. In addition, the market areas will be shifted from China centric to global, including Europe and North America. The growth of sales and profits will be promoted strongly through focus on traction motors only, and other components in addition to E-Axles. In the organic auto area, Nidec will capture increasing demand for electrification and gain further market share for motors for electric power steering and electric brake despite slower growth in the global auto sales. Please see Slide 20.
With the battery EV-related business made profitable for the first time in the June quarter of fiscal year 2023, we will strengthen the business foundation by prioritizing profitability. Please see Slide 21. We are targeting battery EV-related business, as sales of JPY 500 billion in fiscal year 2025, by supplying traction motors only and other components in addition to E-Axles. Please see Slide 22. Nidec and Renesas Electronics Corporation have agreed to joining forces on the development of semiconductor solutions for next generation E-Axle, called X-in-1 system, that integrates EV drive motor and the power electronic for EVs.
Today's EVs are increasing, adopting the three-in-one unit called E-Axle, which integrates motor, inverter, and the gearbox to realize high performance and efficiency, as well as smaller size, lightweight, and lower cost, to accelerate vehicle development. EVs are also integrating power electronics controls, such as DC-DC converters and onboard charger. EV manufacturers in advanced markets, such as China, have developed an X-in-1 platform that integrates multiple functions, accelerating the adoption in many vehicle models. As X-in-1 integrates multiple functions and increases in complexity, maintaining a high level of quality in vehicles become challenging. Thus, developing preventive safety technologies such as diagnostic functions and failure predictions in crucial for ensuring safety and security in vehicles.
To address this challenge, the two companies agreed to combine Nidec's motor technology and Renesas, the semiconductor technology, to jointly develop a highly reliable and high-performance proof of concept, or POC, for the X-in-1 system. The POC is designed to support the industry's highest performance and efficiency, as well as smaller size, lightweight, and lower cost for the X-in-1 system. Building on the POC developed through this collaboration, Nidec plans to rapidly increase, create E-Axle systems to add to its portfolio and ramp up to mass production to lead the E-Axle market. Please see slide 23. We are targeting a V-shaped recovery in fiscal year 2023, after posting large structural reform expenses in the second half of financial fiscal year 2022. Please see slide 24.
We have started to mass produce small automotive motors in addition to capturing demand for energy efficiency and thermal management. As mid-term growth drivers, we are going to transform the portfolio, firstly, by actively working on small automotive motors, such as electric two-wheeled vehicles, and small EV motors that are less than 30 kilowatt. Secondly, by thermal solutions, such as cooling fans and our group company, CCI's products. Thirdly, by digital home appliance motors. In HDD, we continue to focus on data centers and servers to improve the product mix for higher profitability. Please see slide 28. Our newly created business unit called Machinery and Automation, is up and running from fiscal year 2023.
With Nidec Drive Technology at the core company, this business unit handles reducers, press machines, and machine tools, and is going to drive a high growth of machinery business, and aiming for the net sales of JPY 500 billion in fiscal year 2025, and JPY 1 trillion in fiscal year 2030. As mid-term growth drivers, we are aiming to gain bigger global market share of strain wave gears for collaborative robots. As for planetary gears, we set a new production base in Europe by utilizing unused facilities of Nidec Motors & Actuators in Spain. In press machines, we are focusing on anti-plastic demands and EV demands against the backdrop of a shift from plastic to canned body.
A growing demand for EVs, and launching full product lineups from small and high speed to large machines, and introducing related equipment. In machine tools, we are going to expand the product lineups and market areas with a focus on the Chinese market to seek high growth. In addition to these, we announced commencement of tender offer for Takisawa Machine Tool. Lastly, on behalf of the entire management team, we would like to thank our customers, partners, suppliers for their support and commitment, as well as our shareholders. At this time, we would like to open up the call for questions.
Thank you very much, Mr. Samura. We will move to the Q&A session. Mr. Samura and Mr. Nagayasu will be pleased to answer your questions. Today's Q&A session will be conducted electronically. If you have any questions, please press the star key and then one on your touchtone phone. Again, please press star key and then one if you have any questions. If you would like to cancel your request, please press star key and two. We will now pause for questions from the participants. The first question is from the Mr. James Pulsford, Alma Capital. James, please go ahead.
Great. Thank you. Can you hear me?
Yes. Thank you very much.
Wonderful. Great. Thank you very much for your time. Can I ask a question first of all about your E-Axle business? I'm interested. I think that when you started the year, you were forecasting volumes of about 949,000. You've made, if that's correct, you've made a dramatic cut to 545. I'm aware of your strategy, so it's a much bigger cut than I would've thought likely, but I understand why it could have gone down. I'm interested, if that's gone down because you've terminated some contracts with clients, perhaps, I'm interested for next year, you're expecting still very dramatic growth.
I'm just wondering, I find it surprising you've cut this year so much without next year being apparently very much impacted. I wonder if you'd comment on that. Also, you mentioned the business is shifting to a more global basis. I'd be interested to know, for example, for next year, when sales go up a lot, how much of that is expected to be China next year?
First of all, I'd like to cover the first question. There are three reasons as to the significant decline in the volume. The first reason is regarding the transition from Gen 1 to Gen2, and due to the several timing issues, we have expressed a series of troubles, and our startup process of this Gen2 wasn't really as smooth as it should have been. The second reason is concerning China, where there is a clear line emerging between winners and losers within the Chinese customers that we have. The models to which our, you know, our E-Axle units are installed weren't really selling as much as they should.
The third reason is about the market shift from the large models such as 100 kW and 150 kW to a smaller, more compact models such as 70 kW and a 50 kW. We were rather slow in keeping up with this attraction, that's the third reason for this significant decline.
こ こ の 小 型 化 の と こ ろ の タ イ ミ ン グ を 少 し 見 誤 っ た と い う と こ ろ が あ り ま し て 。 こ れ を 今 急 ぎ 今 年 今 年 度 の 後 半 に 現 状 の Gen2 の 70 kW バ ー ジ ョ ン を 出 す と い う こ と を 考 え て い ま す 。
We were not really absolutely correct in coming up with the right timing to debut our compact models towards the second half of this fiscal year, we were urgently tried to debut a new Gen2 models of 70 kW.
「 で 、 さ ら に で す ね 、 ま あ 、 来 年 に は で す ね 、 こ の Gen3 と し て で す ね 、 え 、 70 kW 、 50 kW 、 ま あ 、 こ の 辺 の 中 心 、 い 、 の 、 ま あ 、 ボ リ ュ ー ム ゾ ー ン 、 ま あ 、 さ ら に で す ね 、 40 、 30 、 20 と 、 ま あ 、 こ う い う ゾ ー ン も 含 め た 、 ま あ 、 ボ リ ュ ー ム ゾ ー ン に 向 け た 、 商 品 を 投 入 し て い く と い う 計 画 を 持 っ て お り ま す 。」
in addition to that, towards the next... During the next fiscal year, we are going to introduce to the market a Gen3 products within a volume zone of 70 kW and 50 kW. Plus, we are going to also target another zone of 40kW, 30kW, and 20 kW in next fiscal year.
「 で 、 え ー と 、 ま あ 、 以 上 が 一 点 目 の 回 答 で ご ざ い ま し て 、 次 、 二 点 目 で す け ど も 。」
That was my answer to your first question, and here's my answer to your second question.
ま ず 、 こ れ ス ラ イ ド の 二 十 ペ ー ジ を ご 覧 い た だ き た い と 思 い ま す 。
please kindly take a look at slide 20.
こ の 中 の オ レ ン ジ 色 、 こ れ が で す ね 、 基 本 的 に ス ト ネ 、 Stellantis 向 け を 表 し て い ま す 。
The orange portion indicates our models for the Stellantis.
This Stellantis portion, the orange portion, is for the Europe and United States. Green portion, as you can see, is the portion for the Chinese market.
Okay, thank you very much. That's very clear. Can I ask for your Gen3, when next year would you expect to be able to launch that? Will it initially be just one or two models, or will it in terms of Gen3 becoming a significant portion of the volume, when will that be?
「 あ の 、 あ り が と う ご ざ い ま す 。Gen-3 に 関 す る 質 問 な ん で す け ど も 、 あ の 、 来 年 度 の で す ね 、 あ の 、 い つ 頃 、 こ う 、 こ の 立 ち 上 げ て 導 入 さ れ る と か で す ね 、 あ の 、 ボ リ ュ ー ム 等 に 関 し ま す 、 あ の 、 情 報 を い た だ き た く 思 う ん で す が 。」
一 応 、 導 入 予 定 は 二 十 四 年 の 六 月 を 考 え て い ま す 。
Our planned target for the debuting our Gen3 product is scheduled for June of 2024.
も と も と は 25 年 を 考 え て ま し た の で, 1 年 間 の 前 倒 し に な り ま す.
Our initial target, fiscal year was 2025, therefore, we are advancing our schedule by one year.
こ の Gen3 の 数 量 っ て い う の は 、 こ れ か ら ま だ 、 OEM と 議 論 し て い か な い と い け な い と 思 い ま す が 、 2024 年 度 全 体 で 、 中 国 で 955,000 台 と い う の を 、 出 荷 す る と い う 計 画 に し て お り ま す 。
When it comes to the volume of our Gen3 models, this is something that we need to discuss with our OEM customers. When it comes to 2024, our plan for the Chinese market is to ship 955,000 units.
Okay, thanks. Of Gen3, yeah? Okay, thank you very much. In Q1 this year, the Gen2 is that still quite a small percentage in Q1, or what was that?
「 あ の 、 あ り が と う ご ざ い ま す 。Gen-3 に 関 す る 答 え で い た だ い て ま し た け ど も 、 二 千 二 十 三 年 、 今 年 度 の Q1 な ん で す け ど も 、Gen-2 に つ き ま し て は 、Gen-3 よ り 数 字 は 小 さ い ん で す け ど 。」
Yes, yes. In Q1, what percentage is Gen2?
Gen-2 は で す ね 、Q1 で は 何 パ ー セ ン ト ぐ ら い で し ょ う か ？
え 、Gen-2 は 、 ま あ 、Gen-3 は ま だ あ り ま せ ん の で 、Gen-2 が で す ね 、 え 、Gen-1 と 今 半 々、 約 五 十 パ ー セ ン ト が Gen-2 に な っ て ま す 。
When it comes to Q1, the ratio between Gen2 and Gen1 is approximately 50/50.
Okay, thank you. Great. Sorry, one last question, if I may. The transition to Gen3 is likely to do what to costs compared to Gen2, please?
あの, Gen3 に 関 し て は, さ ら に 質 問 な ん で す け ど も, Gen2 と 比 べ て コ ス ト は です ね, Gen3 は ど れ く ら い 異 な っ て ま い り ま す で し ょ う か?
え 、Gen, Gen-3 は で す ね 、Gen-2 に 対 し て さ ら に 三 十 パ ー セ ン ト と い う こ と を 考 え て い ま し て 、 え 、Gen-1 対 比 で い き ま す と 、 約 半 分 と 、 ま あ 、 い う の が 、 ま あ 、 現 在 の タ ー ゲ ッ ト と し て す - 進 め て る コ ス ト で す 。
Our target cost for Gen3 compared with Gen2 is minus 30%. When it comes to the comparison with Gen 1, Gen3 products, our target is minus 50%.
Great. Okay. Thank you very much indeed.
Yes, thanks.
James , thank you very much. Next question is from Ramsai Neelam from State Street Global Advisors.
Hey, thank you for taking my question. I'm trying to understand about the profit margin on E-Axle business or EV motor business. With the reduced target now, are we still aiming to achieve operating profit margin for the rest of the three quarters? I mean, positive operating.
Yeah, e-motor ...” I would like to mention one big improvement when it comes to cost between Gen 1 and the Gen2. When it comes to Q1, as I've explained already, our Gen2's cost is, well, our ratio for the Gen2 models is now up to 50% against Gen 1's 50%. When it comes to Gen 1 products, cost has been reduced significantly. That's one area of major improvement when it comes to our products.
The second area that second element that I'd like to mention here is that the last fiscal year, so the raw material costs increased significantly, but these increased portion of the raw material costs has been able to be absorbed to the increase in selling cost price, excuse me. Thirdly, I'd like to mention that last year, we launched the structural reform. Because of that, we were able to reduce our fixed costs significantly. When it comes to Q1 this fiscal year, we were able to further reduce the fixed cost, including our research and development cost. These are the three elements that I'd like to mention that contributed to our improvement in our cost structure.
When it comes to whether we will be able to maintain our operating profit despite the reduction in volume, the reduction in the volume of Gen2 will cause a negative impact on us. On the other hand, the reduction in the not so successfully performing Gen 1 models will be able to make a positive impact on our financial performance. That way, we will be able to maintain the level of, current level of operating profits despite reduction in the volume.
Yeah, thank you. That's helpful. Just to follow up on that question, can you give us some color on pricing of E-Axles or EV traction motors in the market? You also mentioned that some of your customers are facing intense competition. In general, the market dynamics and the competition that your customers are facing, is that giving you some pricing pressure?
Yeah, one thing that I'd like to say about this E-Axle market is that it's not mainly for... It's not really about the price, but it's about the reduction in the size of these models. We were originally required to make more and more compact models, and the car prices are going down, therefore, these are making impact on us. Many, many these manufacturers are required to make a growingly compact, more and more compact models. In the meantime, the price competition is becoming growingly intense, which is a fact, I believe. Among these circumstances, there are some companies that are going to survive, but there are some other companies that are going to be disappearing from this market.
As I've mentioned, we were slow in capturing the very good timing when it comes to this size reduction of the EV vehicles. Our area of expertise is to have the technology that enable us to make light, thin, short, and small products. Therefore, in this area, we believe that we will be able to gain competitiveness, and I believe this circumstance is something that we can turn into a chance for us.
Yeah, that's really helpful. My last question from me on HDD motor segment. Since the Seagate left us, back in 2021 or 2020, HDD have been declining in double digits. Of course, I understand the market conditions are not great. Is it also indicating that we are losing some market share, even after Seagate incident?
Here is the answer to your question regarding the HDD motor market. We stopped supplying to Seagate our motors after September, three years ago, therefore, currently, MinebeaMitsumi is the single source supplier of motors to the Seagate of HDD motors. Nidec is the single source supplier of HDD motors to Western Digital and Toshiba. Therefore, there is no competition over market share between us and MinebeaMitsumi when it comes to HDD motors. The main issue here is the size and the volume of HDD motor market. In calendar years of 2020 and 2021, the shipment volume was approximately 260 million units for these consecutive two calendar years.
When it comes to calendar year of 2022, this volume was down to 172 million units. When it comes to calendar year of 2023, it is forecast that this number is further down to approximately 126 million units or so. Please understand that the current HDD market is that it is shrinking more than 50% over the past two years.
Yeah. Thanks for the very quick follow-up. What is the margin of HDD segment in Q1 2023?
You mean Nidec's margin in the market?
Yeah, the operating margin.
Roughly 17%.
Okay, 17% Okay, thank you.
No, no, not 27%, but 17.7% to say exact.
Yeah. Got it. Thank you.
Okay.
Thank you, Mr. Neelam. Next question is from Takashi, Mr. Takashi Ito, from ARGA Investment.
Yes. thank you very much. I just have two quick questions. I'll ask in English and Japanese. The first question is regarding working capital. Is it normal now, or is there still room for improvement? First question. The other question is of your PPE in your balance sheet, how much of this is related to the E-Axle? one more last question.
When you have, say, a customer in China who is not selling their EVs, is it easy to find another customer who can use your E-Axle as long as it is the same, it is the correct size, 100 kW or 70 kW or, it's not easy to just sell the same E-Axle to a different customer?
When it comes to first answer to your first question, which is regarding working capital, it has increased significantly over the past two years. This is partially due to the effect of the currency exchange, but also is due to the significant increase in the length of lead time to obtain raw materials. This the level of the lead time is now finally starting to decrease because of that, partially because of that, we have been able to achieve a record high free cash flow during this Q1, this past Q1.
When it comes to the E-Axle's percentage among, in the entire PPE, I'm not currently having any exactly accurate numbers in my hand, but it is approximately JPY 30 billion-JPY40 billion. When it comes to the flexibility or versatility of our E-Axle models for the customers that do not necessarily have our models in the first place, there are some areas or elements in our models that are basically the same throughout the entire product catalogs, but there are some other components that can be customized for individual customers' requirements or requests.
one thing that I can do, that we can do at Nidec is that we could sell our models that partially have the same elements or components, the entire model throughout the entire models, but that can be partially customized based on that can partially modified or customized based on individual customers' requirements.
は い 、 あ の で す ね 、 今 で す ね 、 か な り こ の 2年間 で 増 加 し た と 認 識 し て お り ま し て 、 あ の 、 今 後 3年間 で 、 い わ ゆ る cash conversion cycle ベ ー ス で -...
Yeah, well, the, over the past two years, this, working capital has improved significantly, and our, plan is to make sure that for the next three years, we elect to make an improvement of 10% on the cash conversion cycle basis per year.
When it comes to a normal level, in our definition, our normal level was the level back in 2020, which is three years ago.
あ り が と う ご ざ い ま す 。
Ito-san, Thank you very much. Next question is Mr. James Pulsford from the Alma Capital.
Great. Thank you very much. I wonder, could you notice in the results is the very dramatic improvement in profitability in ACI. For it to get a bit better is not surprising, but the degree that it's improved is surprising to me at least. I wonder, could you comment on specific factors behind that? Did restructuring play a large part in that? Is there any temporary element to that improvement? Can you provide a bit more color?
い や 、 あ の 、 こ の で す ね 、 あ の ACI と い い ま す か 、 そ の 営 業 利 益 の か な り の 、 あ の 、 改 善 が 見 ら れ て い る ん で す け れ ど も 、 あ の 、 そ の レ ベ ル と し て は そ れ ほ ど 大 き く な い か も し れ ま せ ん が 、 こ の 改 善 の 度 合 い が 非 常 に 、 あ の 、 大 き く と い う よ う に 感 じ る ん で す け れ ど も 、 そ の こ の で す ね 、 あ の 、 要 因 に つ き ま し て 、 コ メ ン ト い た だ き た い と 思 い ま す 。 そ の 構 造 改 革 が こ の 功 を 奏 し た と い う こ と な ん で し ょ う か 、 そ れ と も 何 か 一 過 性 の 一 時 的 な 要 素 も 他 に 存 在 す る の で し ょ う か ？ と い う と こ ろ で す 。 お 願 い い た し ま す 。 は い 、 こ の ACI の 中 で で す ね 、 特 に あ の 、 家 電 分 野 っ て い う の は 、 ま あ 引 き 続 き マ ー ケ ッ ト が 非 常 に 苦 し い 状 態 に あ り ま し て 、 で 、 構 造 改 革 で は 、 ま 、 こ の 辺 を で す ね 、 相 当 手 を 入 れ て き た と い う こ と で 、 ま 、 こ の 辺 の 改 善 が ま ず 一 つ あ り ま す 。
When it comes to this ACI segment, our home appliance market continues to be in struggle, but we took actions for that kind of situation, and we have made improvement significantly in that regard.
そ れ と も う 一 つ は で す ね 、 一 番 こ れ は ポ イ ン ト で す け れ ど も 、 ま 、 今 回 の あ の 、 説 明 ス ラ イ ド の 中 で も か な り 詳 し く 説 明 し ま し た 、 い わ ゆ る 萌 芽 事 業 で す ね 。 こ れ 、 特 に 産 業 分 野 、 ま 、 こ こ で 新 し い 分 野 が 今 ど ん ど ん 出 て き て い る と 。 ま 、 こ こ の 収 益 性 が 一 定 程 度 の 利 益 を 生 み 出 し て い る と 、 ま 、 い う こ と で す 。 Secondly, which is most important point of all, is about the MOEN segment, the Motion Energy segment.
This is something that I've that we have explained in detail in in our slide or presentation materials that were explained today. Within this MOEN segment, especially industrial segment, there are new business emerging, and those emerging businesses or segments made a significant, a very good contribution to our operating profit.
Thank you. Looking at page 13, obviously, you've got a number of products there. The growth within the division that you're expecting for this MOEN area is very strong. Which products in particular are seeing very strong growth this year? If you look at Q1, which were the products that caused this very sharp improvement?
今 、 スライド 13 を 見 て いる ん です け ど も 、 こ の 中 で 、 結 構 こ う 、 萌 芽 の で す ね 、 動 き が あ る ん で す け ど も 、 そ の 中 で ど う い っ た セ グ メ ン ト が で す ね 、 特 に 、 成 長 ど う い っ た 商 品 で し ょ う ? pardon me?
Which products rather than segment, yeah? Which products?
そ の 製 品 が 、 そ の 製 品 の 中 、 製 品 の 中 で は ど の 製 品 が で す ね？ は い.
著 し い と い う こ と が 言 え る か に つ い て 、 コ メ ン ト い た だ き た い ん で す け ど 。 は い 、 あ の 、 こ れ 、 ま 、 特 に で す ね 、 ま 、 こ の 中 で い く と 、 ま 、 発 電 機 と か エ レ ベ ー タ ー と か で す ね 、 こ の ロ ボ ッ ト 関 連 、 ま 、 こ の 辺 が 中 心 で す け ど も 、 ま 、 さ ら に で す ね 、 こ の イ ン フ ラ 関 連 で す ね 、 ま 、 こ の 辺 が 次 々 と 新 し い 分 野 が 今 広 が っ て い る と 、 ま 、 こ う い う 状 況 で す 。
I'd like to mention particularly, the power generation business, elevator business, and robotics business.
In addition to these successfully doing markets, I would like to mention infrastructure related to business, which is also very good, promising, and newly emerging business for us.
Of those, the demand growth, I mean, areas like elevators, generators, are they going to be show sustained growth beyond this year?
で 、 あ の 、 こ の 中 で も で す ね 、 エ レ ベ ー タ ー と か 発 電 機 な ど は で す ね 、 今 年 度 以 降 も 、 あ の 、 け 、 持 続 的 に 、 あ の 、 成 長 し て い く と い う こ と が 見 込 ま れ る 事 業 と お 考 え で し ょ う か ？ あ の 、 そ う で す ね 。 特 に 、 ま 、 発 電 機 な ん か は で す ね 、 ま あ い ろ い ろ 鉱 物 資 源 な ん か を 掘 り 出 す 、 ま 、 こ う い う 特 に 、 あ の 、 ま 、 キ ャ タ ピ ラ ー さ ん と か で す ね 、 我 々 loyal customer で す け ど も 、 ま 、 こ の 辺 が 、 ま 、 引 き 続 き 好 調 を 維 持 す る と 、 ま 、 い う ふ う に 考 え て い ま す 。
Yeah, I would like to say yes.
When it comes to power generator, business, we believe the momentum will continue, especially among our customers, such as Caterpillar, which is one of our loyal customers, and I believe they will be especially continue to maintain the current momentum.
Yeah, sorry, で す ね 。 や っ ぱ こ う い う イ ン フ ラ 関 連 と い う と こ ろ は 、 ま あ 、 あ の 、 ま あ 各 国 と も で す ね 、 ど ん ど ん 今 や っ ぱ 更 新 す る 時 期 に 、 今 入 っ て い る と 。 あ あ い う 中 で で す ね 、 あ の 、 こ の 辺 の 需 要 と い う の は 、 こ れ か ら ど ん ど ん ど ん ど ん 膨 ら ん で い く 、 ま あ 、 そ う い う タ イ ミ ン グ に あ る と い う ふ う に 考 え て い ま す 。
When it comes to infrastructure, business, I believe actions are being taken in individual countries.
Therefore, I believe demand will continue to expand or grow in infrastructure business.
Okay, good. Okay, thank you very much.
James, thank you very much. next question is from Mr. Ken Su, from Value Asset Management.
Hello, good afternoon. Sorry, good evening, Samura-san and Nagayasu-san. I just have one question. Q1 was very strong on the OP side. Was there any one-off cost or benefit that was embedded in the Q1 result that may or may not repeat in Q2 or the fiscal year? Thank you.
一 点 質 問 な ん で す が 、Q1 は 非 常 に 営 業 利 益 が 非 常 に 好 調 だ っ た と 思 う ん で す け れ ど も 、Q2 と か Q2 以 降 で す と か 、 そ の Q1 以 降 の そ の 今 年 度 の 中 で Q1 し か 効 果 が な か っ た と い う よ う な 要 素 は あ り ま す で し ょ う か ？ 各 セ グ メ ン ト ご と に そ う い う 若 干 一 過 性 的 な 要 素 が ゼ ロ で は あ り ま せ ん 。 た だ し 、 ま た 、Q2 も そ う い う 要 素 少 な か ら ず あ り ま す の で 、Q1 と そ れ 以 降 を 比 べ て 大 き な 損 失 が 出 る と い う ふ う に は 考 え て お り ま せ ん 。
When it comes to individual segments, there are some, there were some one-timers. In Q2 as well, there are some one-timers that will exist.
In comparison with Q1, we will not believe there is any significant gap to be drawn between Q1 and Q2 or thereafter.
I got it. Any way to, if we aggregate those number in Q1, do you know roughly how much of one time impact? Was it a positive impact or negative impact on the OP? Thank you.
OP に です ね 、 あの 、 プラス の 影響 、 マイナス の 影響 を 与 え た 、 あ 、 一 過 性 の も の と い う の は 、 ど れ く ら い の 率 で 存 在 し ま す で し ょ う か 。 あの 、 そ れ は です ね 、 そ ん な に 大 き く 、 あの 、 あ り ま せ ん 。 ま あ 、 数 パーセント の 範囲 内 と い う イメージ で す 。
The number is not really big percentage, but it's only several percent.
Several percent of the OP. Was it a positive impact or negative impact on those one-timer?
OP の 中 で の 数 パ ー セ ン ト と い う 。 OP の 中 で の 数 パ ー セ ン ト の ポ ジ テ ィ ブ イ ン パ ク ト が あ っ た と い う こ と で す 。
It's a, it's a positive impact, and it accounts for several percent of the OP.
Got it. Great. Thank you very much.
Yes, thank you very much. Any question, please? Now, there seems no further question, and then we would like to conclude this conference call. I would like to appreciate for your participation today. Should you have any further questions, please do not hesitate to contact Nidec Corporation or your sales representatives at Mitsubishi UFJ Morgan Stanley Securities. Thank you very much for joining this call.