President’s Message

Business Strategies for FY2023

In FY2022, Nidec’s consolidated net sales stood at a record high of ¥2,242.8 billion, 17% higher Y/Y. On the other hand, operating profit decreased 41% Y/Y to ¥100.1 billion due to posting of large-scale structural reform expenses. We have renewed our resolve to achieve a V-shaped recovery in FY2023.
　In FY2023, we will shift directions to a policy that emphasizes profitability. We will focus management efforts even more on achieving the plans set at the beginning of the fiscal year and ensuring financial soundness, and we will begin building a solid foundation for growth over the next 50 years. In our day-to-day operations, we will continue to make the most of our business execution capabilities, which are backed by our strengths of speedy management and the spirit of “Do it until completed.”
　In the automotive products segment, which is considered one of the two major growth fields in our business portfolio, we place sales expansion of the new generation model of the electric vehicle (EV) drive motor E-Axle at the center of our strategy. Meanwhile, in the appliance, commercial and industrial businesses, which are also growth fields, we focus on capturing replacement demand for high-efficiency motors and green innovation-related demand. In the precision small motor business, we will continue to meet IT-related demand while focusing on developing new fields such as electric motorcycle motors and small EV motors with an output of 30 kW or less. In other product groups, we will aim to further expand the scale of our business by proactively utilizing M&A in product fields such as reducers, press machines, and machine tools handled by the Machinery and Automation Business Unit, which has started operations this fiscal year. In the field of machine tools in particular, we believe that enriching our product portfolio with a view to developing new markets will hold the key to our future.

Aiming to Continue to Be a Socially Indispensable Top-rated Global Company for the Next 50 Years

Our mission is to contribute through our business to the resolution of important issues common to humanity and the advancement and spread of new technologies that will be essential in the future.
　Climate change is one of the important issues common to all humankind. It may be still fresh in your memory that UN Secretary-General António Guterres sounded the alarm, describing this ever-increasing problem with the phrase “era of global boiling.” We hope to help solve climate change by promoting decarbonization of society through the development of highly efficient and low-cost EV motors and renewable energy-related solution businesses, such as battery energy storage systems (BESS).
　Meanwhile, we announced in June 2023 that we have entered the business of Flying Cars (eVTOLs), one of the new technologies that will support future society. It is an urgent issue to establish technology to efficiently and sustainably transport people and goods in urban areas with concentrated populations. As a solution to this problem, eVTOL is attracting attention, and the market is expected to expand in the near future. Nidec has signed an agreement with Embraer, a global aircraft manufacturer headquartered in Brazil, to establish a joint venture related to electric drive systems for the aviation industry. By combining the technologies of both companies, we will work together to increase the possibilities of a new means of transportation for society in the near future.
　Our company intends to contribute to the resolution of various issues related to the environment and society, and we dare to jump into the world of technological innovation under a management system underpinned by thorough governance. As a result of continuing these business activities, we believe that Nidec will be a top-rated global company needed by society even 50 or 100 years from now.

September 2023

Hiroshi Kobe
Representative Director and President
(Chief Operating Officer)