Execution and profitability risks of business portfolio transformation
First written in FY2017. 10 of 18 entries say "Materialised", first in FY2020-Q1. Latest entry: 2026-09-30.
Nidec moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Following an impairment test of goodwill related to ACIM, the carrying amounts of the related goodwill, machinery and equipment and other assets were reduced to their recoverable amounts because the recoverable amount of the cash-generating unit group fell below its carrying amount due to deteriorating profitability caused by declining competitiveness amid excessive competition in China's household-appliance motor market.」
The risks associated with portfolio transformation and profitability materialised as excessive competition in China, slower EV growth, deteriorating profitability in North America and Asia, and a large-scale impairment loss. - FY2026-H1MaterialisedAnnual report
「Operating profit or loss was a loss of ¥82,849 million, down ¥102,421 million year on year, due to the recognition of a provision for contract losses of ¥36,471 million, impairment losses on non-financial assets of ¥31,674 million, and liabilities of ¥19,495 million arising from the settlement of recourse claims by suppliers during the interim consolidated accounting period.」
The risks associated with business portfolio transformation and profitability materialised in the automotive business as a provision for contract losses, impairment losses and other items, resulting in an operating loss of ¥82,849 million. - FY2025-H1MitigatedAnnual report
「The company rigorously restricted orders for unprofitable models and implemented cost reductions and significant fixed-cost cuts in connection with the strategic shift in the EV traction motor business.」
In the EV traction motor business, it restricted orders for unprofitable models and implemented cost reductions and fixed-cost cuts, continuing to prioritise profitability. - FY2024-Q3MitigatedAnnual report
「In the EV traction motor business, the company shifted its strategy to prioritise profitability by implementing further significant fixed-cost reductions and rigorously restricting orders for unprofitable models.」
It states that the EV traction motor business shifted its strategy to prioritise profitability through restrictions on orders for unprofitable models, fixed-cost reductions, and organisational and personnel reviews. - FY2023MaterialisedAnnual report
「Reflecting these changes in the business environment, the company proceeded to recognise structural reform costs and revise its earnings forecast for FY2022.」
The risks associated with business portfolio transformation and profitability have actually materialised as structural reform costs and a revision of the earnings forecast. - FY2023-Q3MaterialisedAnnual report
「Reflecting these changes in the business environment, the company proceeded to recognise structural reform costs and revise its earnings forecast for FY2022.」
The risks associated with business portfolio transformation and profitability have materialised as specific responses and impacts, namely the recognition of structural reform costs and the revision of the earnings forecast. - FY2022WorsenedAnnual report
「Going forward, the company will focus on HDD motors for servers, driven by the expansion of the cloud market, to secure a certain level of earnings, while reallocating resources previously devoted to developing and producing HDD motors for end devices to new products, including mobility solutions, to accelerate the transformation of its business portfolio.」
As declining HDD demand becomes evident in operating results, it states that resources for end-device products need to be reallocated to new products and portfolio transformation accelerated. - FY2021RestatedAnnual report
「Furthermore, as NIDEC CORPORATION targets sales of ¥10 trillion in FY2030, its business model is expected to shift from selling standalone motors to modules and systems.」
It has reaffirmed the uncertainty associated with shifting the business model from standalone motors to modules and systems as part of portfolio transformation, and acquiring the necessary technologies through M&A. - FY2021-Q3WorsenedAnnual report
「The parties failed to reach an agreement with Orlando Management AG and the transferee's related parties regarding price adjustments to the sale price and other matters in this transaction. The company filed for arbitration with the German Institution for Dispute Resolution on 12 January 2021 and completed registration with the institution on the same day. The arbitration is expected to take 18 to 24 months to conclude.」
The parties failed to reach an agreement on price adjustments to the sale price and other matters following the Secop sale, and arbitration proceedings were initiated. It states that concluding the arbitration is expected to take 18 to 24 months. - FY2020MaterialisedAnnual report
「Profit for the period attributable to owners of the parent, including profit or loss from discontinued operations, fell 45.4% year on year to ¥60,084 million due to the recognition of a ¥15,707 million loss from the transfer and other transactions involving the company's compressor business for refrigerators held by Secop.」
The portfolio transformation risk associated with the Secop sale materialised in the full-year results as a ¥15,707 million loss from discontinued operations and a 45.4% decline in profit attributable to owners of the parent. - FY2020-Q3MaterialisedAnnual report
「The company completed the transfer of Secop shares in September and recognised a quarterly loss from discontinued operations of ¥19,131 million for the cumulative third quarter.」
The loss from discontinued operations following completion of the Secop sale totalled ¥19,131 million for the cumulative third quarter, with the risks associated with portfolio transformation continuing to materialise as losses. - FY2020-Q2MaterialisedAnnual report
「The company completed the transfer of Secop shares in September and recognised a quarterly loss from discontinued operations of ¥19,955 million in the first half.」
The sale of Secop was completed, and the risks associated with M&A and portfolio transformation materialised as a loss from discontinued operations of ¥19,955 million, including a loss on sale of ¥18,381 million. - FY2020-Q1MaterialisedAnnual report
「On 12 April 2019, the company submitted to the European Commission a commitment to appoint an independent manager and monitoring trustee for Secop, and lost effective control of Secop upon transferring effective control to that independent manager and monitoring trustee.」
Following the conditional approval of the Embraco acquisition, control of the Secop business was lost and a loss on the planned sale of ¥18,348 million was recognised. The uncertainty surrounding the outcomes of M&A and portfolio transformation materialised as a specific business restructuring. - FY2019RestatedAnnual report
「However, it may not always be possible to secure the necessary information, management resources, customer relationships, business expertise and brand recognition in a timely manner. For example, M&A activities, which have a significant impact on the success of NIDEC CORPORATION's business portfolio expansion, are always subject to uncertainty regarding their outcomes.」
It has reaffirmed the need to secure the management resources required for portfolio transformation and the uncertainty surrounding M&A outcomes. - FY2018RestatedAnnual report
「However, it may not always be possible to secure the necessary information, management resources, customer relationships, business expertise and brand recognition in a timely manner.」
It has reaffirmed the risk of being unable to secure the management resources, customer relationships and other requirements for portfolio transformation, and the risk of a lower operating margin due to an increased mix of low-profitability products. - FY2017First statedAnnual report
「However, it may not always be possible to secure the necessary information, management resources, customer relationships, business expertise and brand recognition in a timely manner. In addition, if the product mix changes during the portfolio transformation process in a way that increases the proportion of sales from relatively less profitable products or businesses, this could adversely affect the operating margin.」
It has newly identified the risk of being unable to secure the management resources and other requirements for portfolio transformation, and the risk of a lower operating margin due to changes in the product mix.