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Nidec is a growth-oriented company striving for "three highs" to maximize shareholder value: high growth, high profitability, and high share value.
Based on our shareholder-oriented management philosophy, we pursue a ceaseless business improvement beneficial to shareholder value enhancement and continue to present our future vision embracing changes. Setting a target dividend ratio at 30%, we focus on maintaining stable dividend payouts and aim to increase dividends in line with growth in consolidated net income. Internal reserves are used to reinforce our management structure and business expansion, without compromising profitability.
Consistent with the above policy we announced the yearend dividend of ¥40 per share for FY2009, an increase of ¥10 from a year ago, making the annual dividend ¥65 per share, an increase of ¥5 from a year ago. Our current annual dividend forecast for FY2010 is ¥80 per share, an increase of ¥15 per share compared to the FY2009 level.
Nidec Marked Record High Operating Income in FY2009;
Now Eyes a 100 Billion Yen Target for FY2010.
FY2009 Financial Results
Strong emerging markets that brought an upswing to our core operations (e.g. small precision motors; electronic and optical components) in the first six months of FY2009 carried the momentum into the rest of our operations (e.g. machinery, mid-size motors, and other businesses) in the second of the fiscal year.
In the meantime, our continued initiatives for doubling profitability (WPR™) proved increasingly effective, driving our annual profits to record levels on sales barely touching 80% of the FY2007 peak (approx. 724 billion yen).
* FY2008 amounts have been retrospectively restated to reflect the discontinuation of the semiconductor production equipment business.
Progress in WPR™ initiatives
Much of the credit for the profit advance during FY2009 belongs to a remarkable progress in our WPR™ initiatives. In tandem with an uptick in demand, our extensive WPR™ efforts helped us to meet our operating margin targets for three consecutive quarters (1Q-3Q), pushing operating income to a new record high on an annual basis.
FY2010 Forecast and Progress toward Mid-term Business Targets
We anticipate that the markets will continue to revolve around four key design concepts: energy-saving, eco-friendly, light and compact, and half-price. Meanwhile, long-stalled corporate capital investment has started giving an indication of phased recovery.
We have set our sales target for FY2010 at 660 billion yen (up 12% y/y) and operating income target at 100 billion yen (up 28% y/y). Looking further ahead, we eye FY2012 sales at one trillion yen and FY2012 sales at two trillion yen. Actions being taken to attain these targets are twofold: to give a fresh boost to our core growth, and to reinforce business acquisitions that enable a full-fledged rollout of our brushless DC motor technology.
June 2010
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