Bracing for Rebound and Rise in Demand
FY2019 (fiscal year ended March 2020) saw the Nidec Group’s revenue increase and profit decrease compared to the previous fiscal year. The transformation of the novel coronavirus outbreak into a global pandemic during the fourth quarter in the fiscal year urged us to take unconventional measures. Though we have successfully dispersed production-related risks by utilizing our factories scattered in more than 40 countries across the world, the insufficient dispersion of our component suppliers greatly affected our company’s financial results. Fully reflecting on this fact, we are poised to build a system that can handle similar future events.
Although it may take long before an economic recovery, the demand will be high for our company’s products in the post-COVID-19 business scene. Especially promising is the demand for motors for electric vehicles (EVs), for which demand is expected to grow larger as individual countries in the world impose environmental restrictions. OMRON Automotive Electronics Co., Ltd. (current Nidec Mobility Corporation), which joined the Nidec Group in October 2019, will make significant contributions as we develop and start producing components for EV motors.
The demand for our company’s products is expected to grow in robotization, development of energy-efficient appliances, automatization of logistics, and data digitalization stemming from 5G communications as well. Ensuring to acquire market shares after demand recovers, we will revise and enhance our production systems in individual areas of business.
Aiming to achieve a lofty consolidated net sales target of 10 trillion yen in FY2030 (fiscal year ending March 2031), Nidec, the company that casts dreams into shape, will continue to grow to be the world’s leading company. Working closely with Mr. Seki, our new president, I will lead Nidec toward that target.
Founder, Representative Director, Chairman and Chief Executive Officer Shigenobu Nagamori
Determined to Play My roles
I was elected to serve as Nidec Corporation’s President and COO (Chief Operating Officer) in June 2020. At my previous employment, I have worked mainly in the area of automobile production technology, and in a wide variety of areas including commodity and management planning and businesses via a joint venture company in China. I am poised to utilize these experiences to promote Nidec’s further growth, starting with the company’s automotive business.
Cars have essential functions of “run,” “curve,” and “stop.” Nidec already enjoys large market shares with its motors that make cars “curve” and “stop.” Now, the products whose demand is anticipated to grow the most are the motors that make electric vehicles (EVs) “run.” Though we are already building a certain level of status in this EV motor market, growing further requires us to secure firm production capabilities. As demand is expected to surge at once in the EV market, we will expand our production capabilities to accommodate such a demand growth, while securing competitive performance, quality, and cost performance.
Nidec values speed. It was Mr. Nagamori’s speed-oriented management that has grown Nidec this big. I myself have confidence in my decision-making ability, but still, Mr. Nagamori’s quick and precise decision-making amazes me, and teaches me a lot.
In my opinion, growth is essential for a company to develop permanently. As our company aims to achieve consolidated net sales of 10 trillion yen in FY2030 (fiscal year ending March 2031), I am determined to always take things simply and fairly, and play my roles properly while working with Mr. Nagamori, so that Nidec grows sustainably thereafter.
Representative Director, President and Chief Operating Officer Jun Seki