##### Table of Contents



UNITED
STATESSECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 20-F
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF
1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended March 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number: 333-13896
 Nihon Densan Kabushiki Kaisha
 (Exact name of registrant as specified in its charter)
 NIDEC CORPORATION
 (Translation of Registrants name into English)
 Japan
(Jurisdiction of incorporation or organization)
    
    338 Kuzetonoshiro-cho,
Minami-ku, Kyoto 601-8205 Japan
(Address of principal executive offices)
 Masahiro
Nagayasu, +81-75-935-6140, ir@jp.nidec.com, address is same as
above
 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
 Securities registered or to be registered pursuant to Section 12(b) of the Act:
 Title of Each Class
    
    Name of Each Exchange On Which RegisteredCommon Stock*American Depositary
Shares each representingone-fourth of one share ofcommon stock
    
    New York Stock
ExchangeNew York Stock Exchange
 Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuers classes of capital or common
stock as of the close of the period covered by the annual report.
  þ o
 o þ
  þ o
 o o
  Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company o  U.S. GAAP þ
    
    International Financial Reporting Standards as issuedby the International Accounting Standards Board o
    
    Other o
 o o
 o þ
 
 *
    
    Not for trading, but only in connection with the listing of the American Depositary Shares.




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##### 



TABLE OF CONTENTS
 PagePART IItem 1.
    
    Identity of Directors, Senior Management and Advisers
    
    
    4Item 2.
    
    Offer Statistics and Expected Timetable
    
    
    4Item 3.
    
    Key Information
    
    
    5Item 4.
    
    Information on the Company
    
    
    21Item 4A.
    
    Unresolved Staff Comments
    
    
    38Item 5.
    
    Operating and Financial Review and Prospects
    
    
    39Item 6.
    
    Directors, Senior Management and Employees
    
    
    74Item 7.
    
    Major Shareholders and Related Party Transactions
    
    
    82Item 8.
    
    Financial Information
    
    
    85Item 9.
    
    The Offer and Listing
    
    
    87Item 10.
    
    Additional Information
    
    
    89Item 11.
    
    Quantitative and Qualitative Disclosure About Market Risk
    
    
    106Item 12.
    
    Description of Securities Other Than Equity Securities
    
    
    108PART IIItem 13.
    
    Defaults, Dividend Arrearages and Delinquencies
    
    
    108Item 14.
    
    Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    108Item 15.
    
    Controls and Procedures
    
    
    109Item 16A.
    
    Audit Committee Financial Expert
    
    
    111Item 16B.
    
    Code of Ethics
    
    
    111Item 16C.
    
    Principal Accountant Fees and Services
    
    
    111Item 16D.
    
    Exemptions from the Listing Standards for Audit Committees
    
    
    112Item 16E.
    
    Purchases of Equity Securities by the Issuer and Affiliated Purchases
    
    
    113Item 16G.
    
    Corporate Governance
    
    
    114PART IIIItem 17.
    
    Financial Statements
    
    
    116Item 18.
    
    Financial Statements
    
    
    116Item 19.
    
    Exhibits
    
    
    116Index to Consolidated Financial Statements and Information
    
    
    F-1EX-1.1 Articles of Incorporation of Nidec Corporation (English translation)EX-1.2 Share Handling Regulations of Nidec Corporation (English translation)EX-4.1 Loan Agreement, dated December 3, 2008, between Nidec Corporation and S.N.Kohsan (English Translation)EX-8.1 Subsidiaries of Nidec CorporationEX-11.1 Code of Ethics (English translation)EX-12.1 Certification of the Chief Executive Officer required by Rule 13a-14(a)EX-12.2 Certification of the Chief Financial Officer required by Rule 13a-14(a)EX-13.1 Certification of the Chief Executive Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States CodeEX-13.2 Certification of the Chief Financial Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code
  As used in this annual report, unless otherwise specified, references to Nidec are to Nidec
Corporation, and references to we, our and us are to Nidec Corporation and, except as the
context otherwise requires, its consolidated subsidiaries.
 As used in this annual report, U.S. dollar or $ means the lawful currency of the United
States of America, and yen or ¥ means the lawful currency of Japan.
 As used in this annual report, U.S. GAAP means accounting principles generally accepted in
the United States, and Japanese GAAP means accounting principles generally accepted in Japan.
 As used in this annual report, ADS means an American Depositary Share, and ADR means an
American Depositary Receipt.
 In tables appearing in this annual report, figures may not add up to totals due to rounding.
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Special Note Regarding Forward-looking Statements
  
    
    general economic conditions in the information technology, consumer electronics and
related product markets, particularly levels of consumer spending;
    
    our ability to design, develop, mass produce and win acceptance of our products,
particularly those that use the hard disk spindle motor technology, which are offered
in highly competitive markets characterized by continual new product introductions and
rapid technological development;
    
    abrupt changes in our customers market position, particularly as a result of
mergers and acquisitions;
    
    general economic conditions in the information technology, consumer electronics and
related product markets, particularly levels of consumer spending;
    
    exchange rate fluctuations, particularly between the Japanese yen and the U.S.
dollar and other currencies in which we make significant sales or in which our assets
and liabilities are denominated;
    
    our ability to acquire and successfully integrate companies with complementary
technologies and product lines;
    
    adverse changes in laws, regulations or economic policies in any of the countries
where we have manufacturing operations; and
    
    any negative impacts on our businesses from outbreaks of diseases in the countries
where we have production plants, such as a new type of influenza virus.
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PART I
 
 Item 1. Identity of Directors, Senior Management and Advisers.
  
 Item 2. Offer Statistics and Expected Timetable.
  4




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Item 3. Key Information.
 A. Selected Financial Data.
  Selected Financial Data
 Year ended March 31,2005(2)
    
    
    2006(2)
    
    
    2007(2)
    
    
    2008(2)
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands,except number of shares outstanding and per share amounts)Income statement data:Net sales
    
    ¥
    462,274
    
    
    ¥
    511,589
    
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119Cost of products sold
    
    
    348,426
    
    
    
    389,446
    
    
    
    471,325
    
    
    
    571,337
    
    
    
    482,893
    
    
    
    4,915,942Selling, general and
administrative expenses
    
    
    33,143
    
    
    
    38,336
    
    
    
    45,409
    
    
    
    50,168
    
    
    
    51,795
    
    
    
    527,283Operating income
    
    
    55,598
    
    
    
    55,505
    
    
    
    65,936
    
    
    
    77,542
    
    
    
    51,806
    
    
    
    527,395Income from continuing
operations before income taxes
    
    
    59,079
    
    
    
    66,155
    
    
    
    67,614
    
    
    
    64,255
    
    
    
    47,029
    
    
    
    478,764Net income
    
    
    33,455
    
    
    
    40,949
    
    
    
    39,932
    
    
    
    41,156
    
    
    
    28,353
    
    
    
    288,639Balance sheet data (period end):Total assets
    
    ¥
    484,173
    
    
    ¥
    565,970
    
    
    ¥
    662,623
    
    
    ¥
    671,714
    
    
    ¥
    702,884
    
    
    $
    7,155,492Short-term borrowings
    
    
    28,478
    
    
    
    43,621
    
    
    
    78,848
    
    
    
    68,854
    
    
    
    221,342
    
    
    
    2,253,303Current portion of long-term debt
    
    
    8,493
    
    
    
    4,647
    
    
    
    3,216
    
    
    
    29,196
    
    
    
    1,883
    
    
    
    19,169Long-term debt
    
    
    37,833
    
    
    
    32,134
    
    
    
    31,560
    
    
    
    3,430
    
    
    
    2,578
    
    
    
    26,245Total shareholders equity
    
    
    207,040
    
    
    
    263,659
    
    
    
    305,016
    
    
    
    319,584
    
    
    
    297,148
    
    
    
    3,025,023Common stock
    
    
    61,180
    
    
    
    65,649
    
    
    
    65,868
    
    
    
    66,248
    
    
    
    66,551
    
    
    
    677,502Number of shares outstanding (1)
    
    
    142,504,926
    
    
    
    144,661,292
    
    
    
    144,780,492
    
    
    
    144,987,492
    
    
    
    145,075,080
    
    
    
    145,075,080Per share data:Income from continuing
operations per share-basic
    
    ¥
    244.53
    
    
    ¥
    290.89
    
    
    ¥
    281.89
    
    
    ¥
    288.99
    
    
    ¥
    214.04
    
    
    $
    2.18Loss on discontinued operations
per share-basic
    
    
    (4.66
    )
    
    
    (5.42
    )
    
    
    (5.86
    )
    
    
    (4.99
    )
    
    
    (16.62
    )
    
    
    (0.17
    )Net income per share-basic
    
    
    239.87
    
    
    
    285.47
    
    
    
    276.03
    
    
    
    284.00
    
    
    
    197.42
    
    
    
    2.01Income from continuing
operations per share-diluted
    
    
    232.71
    
    
    
    280.28
    
    
    
    273.95
    
    
    
    281.14
    
    
    
    210.49
    
    
    
    2.14Loss on discontinued operations
per share-diluted
    
    
    (4.4
    )
    
    
    (5.23
    )
    
    
    (5.70
    )
    
    
    (4.85
    )
    
    
    (16.37
    )
    
    
    (0.16
    )Net income per share-diluted
    
    
    228.29
    
    
    
    275.05
    
    
    
    268.25
    
    
    
    276.29
    
    
    
    194.12
    
    
    
    1.98Cash dividends paid per share
    
    
    17.50
    
    
    
    25.00
    
    
    
    40.00
    
    
    
    50.00
    
    
    
    60.00
    
    
    
    0.61
  (1)
    
    Calculated using the average number of shares outstanding for the period (excluding treasury
shares held by Nidec). Number of shares outstanding and all per share amounts have been
restated to reflect the retroactive effect of the 2 for 1 stock split that took effect on
November 18, 2005.Detailed information regarding diluted shares outstanding is included in Note 20 in our
consolidated financial statements included in this annual report.(2)
    
    As of December 31, 2008, we discontinued our optical pickup unit, or OPU, business which had
been included within electronic and optical components. Amounts in the above table, except
for balance sheet data, for the fiscal year ended March 31, 2009
reflects the amounts of
OPU business as discontinued operations pursuant to the Statement of Financial Accounting Standards No.144, Accounting
for the impairment or disposal of Long-Lived Assets. All prior period OPU amounts in the
above table, except for balance sheet data, have also been so
reclassified as to enable
comparisons between the relevant amounts for the fiscal year ended March 31, 2005 through
2008. 5




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High
    
    Low
    
    Average
    
    Period-endYear ended March 31,2005
    
    ¥
    114.30
    
    
    ¥
    102.26
    
    
    ¥
    107.49
    
    
    ¥
    107.222006
    
    
    120.93
    
    
    
    104.41
    
    
    
    113.15
    
    
    
    117.482007
    
    
    121.81
    
    
    
    110.07
    
    
    
    116.92
    
    
    
    117.562008
    
    
    124.09
    
    
    
    96.88
    
    
    
    114.31
    
    
    
    99.852009
    
    
    110.48
    
    
    
    87.80
    
    
    
    100.62
    
    
    
    99.15Calendar periodDecember 2008
    
    
    93.71
    
    
    
    87.84
    
    
    
    91.28
    
    
    
    90.79January 2009
    
    
    94.20
    
    
    
    87.80
    
    
    
    90.12
    
    
    
    89.83February 2009
    
    
    98.55
    
    
    
    89.09
    
    
    
    92.92
    
    
    
    97.74March 2009
    
    
    99.34
    
    
    
    93.85
    
    
    
    97.86
    
    
    
    99.15April 2009
    
    
    100.71
    
    
    
    96.49
    
    
    
    98.98
    
    
    
    98.76May 2009
    
    ¥
    99.24
    
    
    ¥
    94.45
    
    
    ¥
    96.64
    
    
    ¥
    95.55
   B. Capitalization and Indebtedness.
  C. Reasons for the Offer and Use of Proceeds.
  6




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D. Risk Factors.
 If any of the risks described below actually occurs, our business, financial condition or
results of operations could be adversely affected.
 Our customer base is highly concentrated, and our sales would suffer if one or more of our
significant customers substantially reduce or cancel orders for our products
  
    
    a significant reduction, delay or cancellation of orders from one or more of our
significant customers;
    
    a decision by one or more of our significant customers to select products
manufactured or technologies developed by a competitor, or its own internally developed
components, for inclusion in future product generations; or
    
    financial difficulties affecting one or more of our significant customers.
   We mainly depend on the computer industry for sales of our products, and our business may be
adversely affected by a decline in the computer market
  
    
    rapid technological change;
    
    frequent new product introductions and short product life cycles;
 
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
    
    significant price competition and price erosion;
    
    fluctuating inventory levels;
    
    alternating periods of over-capacity and capacity constraints due, in part, to
cyclical and seasonal market patterns;
    
    variations in manufacturing costs and yields; and
    
    significant expenditures for manufacturing equipment and product development.
    We are facing downward pricing pressure in our main product markets, and price declines could
reduce our revenues and gross margins
  8




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If our third party suppliers experience capacity constraints or production failures, our production
could be significantly harmed
  We face aggressive competition both in the spindle motor market and in the markets into which we
are attempting to expand our business, which could have a material adverse effect on our business
and results of operations
   We may be unable to commercialize customized products that satisfy customers needs, or our
customers may be unable to commercialize products that incorporate our products, in a timely manner
and in sufficient quantities, which could damage our reputation and reduce sales
  9




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We could experience losses or damage to our reputation if any of the end-products in which our
motors or other products are incorporated malfunctions, causing damage to persons, property or data
  We rely on production in developing countries which may become politically or economically unstable
and face risks affecting international operations
  
    
    economic slowdown or downturn in the relevant industries in foreign markets;
    
    international currency fluctuations;
    
    general strikes or other disruptions in working conditions;
    
    political instability;
    
    changes in tariffs;
    
    the difficulties associated with staffing and managing international operations;
    
    generally longer receivables collection periods;
    
    unexpected changes in or imposition of new legislative or regulatory requirements;
    
    relatively limited protection for intellectual property rights in some countries;
    
    potentially adverse taxes;
 
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
    
    cultural and religious differences;
    
    difficulty in entering local business communities and markets, including finding
suitable subcontractors or parts suppliers, due to differences commercial and business
customs;
    
    additional cost of products exported overseas, including tariffs, shipping costs
may, and other duties and impositions, which may make our products less competitive in
terms of price; and
    
    significant time and capital required for expanding overseas businesses before
achieving capital return.
  Our operating results may fluctuate significantly because of a number of factors, many of which are
beyond our control
  
    
    fluctuations in product demand as a result of the cyclical and seasonal nature of
the industries in which our motor and drive technology products are sold and used,
including the computer industry;
    
    translation effect of exchange rate fluctuations on the results of our overseas
subsidiaries and monetary assets and liabilities denominated in foreign currencies;
    
    the availability and extent of utilization of our manufacturing capacity;
    
    changes in our product or customer mix;
    
    entry of new competitors;
    
    cancellation or rescheduling of significant orders, which can occur on short notice;
    
    deferrals of customer orders in anticipation of new products or enhancements;
    
    component and raw material costs and availability, particularly with respect to
components obtained from sole or limited sources;
    
    natural and man-made disasters, including earthquakes, warfare and acts of
terrorism, or unknown epidemics including a new type of influenza virus that
significantly exceeds any level expected in Japan or elsewhere; and
    
    system failures, caused, for example, by power outages or computer viruses.
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Because our production and inventory are planned in advance of anticipated customer demand, and our
operating expenses are relatively fixed, we may be unable to respond quickly if actual demand is
significantly smaller than projected.
   Our growth has been based in part on acquisitions, of or investments in other companies, and our
future growth could be adversely affected if we make acquisitions or investments that fail to
achieve their intended benefits, or if we are unable to find suitable acquisition or investment
targets
   
    
    our ability to manufacture and sell the products of the businesses acquired;
    
    continued demand for these acquired products by our customers;
    
    our ability to integrate the acquired businesses operations, products and
personnel;
    
    our ability to retain key personnel of the acquired businesses;
    
    our ability to extend our financial and management controls and reporting systems
and procedures to acquired businesses; and
    
    accuracy of financial due diligence.
 
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Our growth places strains on our managerial, operational and financial resources
  We rely on our founder, President and CEO, Mr. Shigenobu Nagamori, the loss of whom could have a
material adverse effect on our business
  Any material failure to successfully achieve our corporate objectives or business strategies due to
changes in the economic environment or otherwise may have an adverse impact on our reputation and
business
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We rely on monthly financial data from operating segments that are not prepared on a U.S. GAAP
basis and are not comparable between segments, which potentially reduces the usefulness of this
data to us in making management decisions.
  We are subject to various laws and regulations, and our failure to comply may harm our business.
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We have experienced and may in the future experience difficulties implementing effective internal
controls over financial reporting.
    We could be harmed by litigation involving patents and other intellectual property rights
  
    
    we could incur substantial costs in defending against claims of infringement of the
intellectual property of others and such claims could result in damage awards against
us, in orders to pay for the use of previously unrecognized third-party intellectual
property or in injunctions preventing us from continuing aspects of our business, which
could in turn have a material adverse effect on our business, financial condition and
results of operations;
    
    our protective measures may not be adequate to protect our proprietary rights;
 
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
    
    other parties, including competitors with substantially greater resources, may
independently develop or otherwise acquire equivalent or superior technology, and we
may be required to pay royalties to license the intellectual property of those parties;
    
    patents may not be issued pursuant to our current or future patent applications, and
patents issued pursuant to such applications, or any patents we own or have licenses to
use, may be invalidated, circumvented or challenged;
    
    the rights granted under any such patents may not provide competitive advantages to
us or adequately safeguard and maintain our technology;
    
    we could incur substantial costs in seeking enforcement of our patents against
infringement or the unauthorized use of our trade secrets, proprietary know how or
other intellectual property by others; and
    
    the laws of foreign countries in which our products are manufactured and sold may
not protect our products and intellectual property rights to the same extent as the
laws of Japan and the United States, and such laws may not be enforced in an effective
manner.
  Leaks of confidential information may adversely affect our business
   For our business to continue effectively, we will need to attract and retain qualified personnel
  Losses relating to our pension plans and a decline in returns on our plan assets may negatively
affect our results of operations and financial condition
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If our goodwill and long-lived assets become impaired, we may be required to record impairment
charges, which may adversely affect our financial results
  Our results of operations will be negatively affected if we are required to reduce our deferred tax
assets
  Because our sales to overseas customers are denominated predominantly in U.S. dollars, we are
exposed to exchange rate risks that could harm our results of operations
  Interest rate fluctuations may adversely affect our financial condition
  17




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An unexpected drastic decline in the global economies may result in reduced demand for our products
  Our ability to collect on our accounts receivable may be adversely affected by our customers
worsening conditions
  Decreases in the value of Japanese or foreign stocks may adversely affect our financial results
  If our access to liquidity and capital is restricted, our business could be harmed.
  A substantial number of our shares of common stock are eligible for future sale, and the sale of
these shares may cause our stock price to decline, even if our business is doing well
  18




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Japans unit share system imposes restrictions in holdings of our common stock that do not
constitute whole units
  Rights of shareholders under Japanese law may be more limited than under the laws of other
jurisdictions
  A holder of our ADSs will have fewer rights than a shareholder has and will have to act through the
depositary to exercise those rights
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Because of daily price range limitations under Japanese stock exchange rules, you may not be able
to sell your shares of our common stock at a particular price on any particular trading day, or at
all
  Foreign exchange fluctuations may affect the dollar value of our ADSs and dividends payable to
holders of our ADSs
  It may not be possible for investors to effect service of process within the United States upon us
or our Directors or Corporate Auditors or to enforce against us or these persons judgments obtained
in United States courts predicated upon the civil liability provisions of the federal securities
laws of the United States
  20




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Item 4. Information on the Company.
 A. History and Development of the Company.
      21




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Small Precision Motors, Machinery and Other Products
 DuringFiscalYearEndedMarch 31,
    
    Event1989
    
    
    We acquired Shinano Tokki Co., Ltd.,
a major manufacturer of spindle
motors for hard disk drives, from
Teac Corporation, a then major
manufacturer of audio equipment and
magnetic recording devices for PCs.
As a result, we gained the largest
market share of spindle motors in
the world.1995
    
    
    We acquired 38.5% of Kyoritsu
Machinery Co., Ltd. and changed its
name to Nidec Machinery Corporation.
We subsequently increased our
ownership to the current level of
60.0%. This company manufactures
factory automation equipment for
small precision motor assemblies and
automated measuring instruments.1995/
2003
    
    
    We acquired newly-issued shares of
Shimpo Industries Co., Ltd.,
currently Nidec-Shimpo Corporation,
constituting 36.7% of its then
outstanding shares. We subsequently
increased our ownership to 51% and
have consolidated its results since
February 2002. Nidec-Shimpo became a
wholly-owned subsidiary of Nidec by
way of a share exchange, effective
as of October 1, 2003. Nidec-Shimpo
is a major manufacturer of stepless
automatic transmission mechanisms.1997/
2002
    
    
    At the time when Shimpo Industries
became our consolidated subsidiary
in February 2007. Shimpo Industries
held 90.0% of the outstanding shares
of Read Corporation, currently
Nidec-Read Corporation, which Shimpo
Industries acquired from Nippon
Steel Chemical Co., Ltd in 1997.
Nidec-Read manufactures engineering
inspection equipment for electronics
components, including printed
circuit boards, ceramics,
semiconductors and automotive parts.
Nidec-Read became our majority-owned
subsidiary in February 2002 as a
result of Nidec-Shimpo becoming our
consolidated subsidiary.1998/
2004
    
    
    We acquired 17.7% of the outstanding
shares of Copal Co., Ltd. in 1998,
currently Nidec Copal Corporation,
from Fujitsu Limited. Later in 1998,
we increased our ownership of Nidec
Copal to 42.8%. We further increased
our ownership of Nidec Copal to
51.3% in February 2004. Nidec Copal
is a leading manufacturer of camera
shutters and other optical and
electronics instruments. Nidec Copal
also manufactures information
terminals, laboratory system
instruments and automated
manufacturing systems. In connection
with our acquisition of Copals
shares, we acquired from Copal 32.3%
of the outstanding shares of Copal
Electronics Corporation, currently
Nidec Copal Electronics Corporation.
Nidec Copal Electronics is a
manufacturer of small electronic
precision instruments, including
semi-fixed gas registers, trimmer
capacitators, small precision motors
and gas and liquid pressure sensors.
We subsequently increased our
ownership of Nidec Copal Electronics
to 40.0% in 1998 and then to 51.0%
in January 2004.
 22




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##### Table of Contents



DuringFiscalYearEndedMarch 31,
    
    Event1998
    
    
    We acquired the assets relating to
the motor division of Shibaura
Engineering Works Co., Ltd. and
established a joint venture, Nidec
Shibaura Corporation, with Toshiba
Corporation and Shibaura
Engineering. We initially owned
40.0% of the joint venture. We
subsequently dissolved the joint
venture and purchased the remaining
60.0% interest from our former joint
venture partners, and Nidec Shibaura
became our wholly-owned subsidiary
in September 2000. Nidec Shibaura
develops and manufactures precision
motors for electric appliances and
automobiles. Nidec Shibaura focuses
on developing new motors for
household appliances and
automobiles.1999
    
    
    In October 1999, we acquired 71.0%
of the outstanding shares of Nemicon
Corporation, currently Nidec Nemicon
Corporation. Later that year we
acquired an additional 2.1%. Nidec
Nemicon produces optical rotary
encoders, proximity sensors and
other electronic equipment.2000
    
    
    We acquired 67.0% of the outstanding
shares of Y-E Drive Corporation,
currently Nidec Power Motor
Corporation, from Yasukawa Electric
Corporation. Nidec Power Motor
designs, develops, manufactures and
services mid-size motors for
industrial equipment and home
electrical appliances. Through this
acquisition, we expanded our
business in the field of mid-size
motors.2004
    
    
    In October 2003, we acquired
approximately 40% of the outstanding
shares of Sankyo Seiki Mfg. Co.,
Ltd., currently Nidec Sankyo
Corporation. We subsequently
increased our ownership of Nidec
Sankyo to approximately 51% in
February 2004.2006
    
    
    In November 2006, we acquired 98.9%
of the outstanding shares of
Fujisoku Corporation, which
manufactures and sells industrial
switches, memory cards, panel
switches and electronic measuring
instruments.2006
    
    
    In December 2006, we acquired all of
the voting shares of the Motors &
Actuators business of Valeo S.A.,
France. As a result, we have
included the results of the Nidec
Motor & Actuators group (consisting
of seven companies) wholly-owned
subsidiaries in our consolidated
financial statements. These
companies manufacture motors and
actuators for automobiles such as
air flow systems, body closure
systems, occupant positioning
systems and brake systems.2007
    
    
    In February 2007, we acquired 87.1%
of the outstanding shares of
Brilliant Manufacturing Limited,
currently Nidec Brilliant Co., Ltd.
Nidec Brilliant Co., Ltd is engaged
in manufacturing and sales of base
plate die-casting and top covers
used in hard disk drives.2008
    
    
    In April 2007, we acquired 51.7% of
the common stock of Japan Servo Co.,
Ltd., currently Nidec Servo
Corporation, manufactures and sells
motors and motor-applied products.
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##### Table of Contents



DuringFiscalYearEndedMarch 31,
    
    Event2009
    
    
    In June 2008, we acquired all of the
shares of Shanghai Nidec Automotive
Electric Motors Limited. Shanghai
Nidec Automotive Electric Motors
manufactures DC motors for
automobiles such as those used in
window lift systems and anti-locked
braking systems.In August 2008, we acquired 68.4%
of newly issued shares of Copal
Yamada, which manufactures and
designs precision molds.
     24




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##### Table of Contents



B. Business Overview
  
    
    Small Precision Motors:Hard disk drives spindle motors, other small
precision brushless DC motors (for optical disk drives, laser
printers, copiers, polygon scanners), brushless DC fans (for game
machine consoles, microprocessor units, servers, personal computers,
communication devices, automobiles), and other small precision motors
(for refrigerator ice makers, mobile phones, CD players, DVD players,
and other products);
    
    Mid-size Motors:Automotive motors (for power steering systems,
engine/fuel cell cooling systems, seat adjusters, window lifts, door
lock actuators, and other products), home appliances motors (for air
conditioners, air purification systems, washing machines,
refrigerators, and other products), and industrial motors (for machine
tools, heat pump/water heater systems, elevators, barrier-free
facilities, electric tools, and other products);
    
    Machinery:Transfer robots (for liquid-crystal-display panels,
semiconductor wafers, and other products), card readers, semiconductor
manufacturing/testing/measuring equipment, high-speed pressing
machines, and power transmission systems;
    
    Electronic and Optical Components:Shutters and lens units (for
digital still cameras and mobile phones), encoders, switches, trimmer
potentiometers, actuators, precision plastic moldings and plastic
metal casings, and
    
    Others:Pivot assemblies (for hard disk drives), control valves (for
automotive transmissions), music boxes and logistics services
 25




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Sales by Product Category
  Business group sales
 (Yen in millions, except percentage data)For the year ended March 312007
    
    2008
    
    2009(%)
    
    
    
    
    
    (%)
    
    
    
    
    
    (%)Net sales:Small precision motors:Hard disk drives spindle motors
    
    ¥
    198,196
    
    
    
    32.3
    
    
    ¥
    223,068
    
    
    
    30.6
    
    
    ¥
    181,255
    
    
    
    29.5Other small precision brushless DC
motors
    
    
    74,445
    
    
    
    12.1
    
    
    
    92,359
    
    
    
    12.7
    
    
    
    73,187
    
    
    
    11.9Brushless DC fans
    
    
    38,656
    
    
    
    6.3
    
    
    
    46,525
    
    
    
    6.4
    
    
    
    37,345
    
    
    
    6.1Other small precision motors
    
    
    6,684
    
    
    
    1.1
    
    
    
    23,730
    
    
    
    3.3
    
    
    
    22,286
    
    
    
    3.6Sub-total
    
    
    317,981
    
    
    
    51.8
    
    
    
    385,682
    
    
    
    53.0
    
    
    
    314,073
    
    
    
    51.1Mid-size motors
    
    
    57,389
    
    
    
    9.3
    
    
    
    96,377
    
    
    
    13.2
    
    
    
    77,156
    
    
    
    12.6Machinery
    
    
    82,944
    
    
    
    13.5
    
    
    
    73,253
    
    
    
    10.0
    
    
    
    72,090
    
    
    
    11.8Electronic and optical components (Note 2)
    
    
    129,635
    
    
    
    21.1
    
    
    
    145,896
    
    
    
    20.0
    
    
    
    122,552
    
    
    
    20.0Others
    
    
    26,702
    
    
    
    4.3
    
    
    
    27,548
    
    
    
    3.8
    
    
    
    27,587
    
    
    
    4.5Consolidated total
    
    ¥
    614,651
    
    
    
    100.0
    
    
    ¥
    728,756
    
    
    
    100.0
    
    
    ¥
    613,458
    
    
    
    100.0
 
 Notes:(1)
    
    Inter-group transactions have been eliminated in consolidation.(2)
    
    Operations of the optical pickup business, formerly classified in the
Optical and Electronic Components business group, were reclassified
as discontinued operations as of December 31, 2008 in accordance with
SFAS No.144. Prior-year amounts in the table are retrospectively
restated to reflect this reclassification.   Small Precision Motors
 Small Precision Motors
  26




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##### Table of Contents



(1) Hard disk drives spindle motors
 Small Precision Motors
  a) 3.5-inch form factorfor desktop PCs, enterprise servers, personal video
recorders or PVRs, digital flat TVs, and external hard disk drives;b) 2.5-inch form factorfor notebook PCs (including ultra mobile PCs), PVRs, game
machine consoles, digital flat TVs, and external hard disk drives, andc) Sub-1.8-inch form factorfor handheld digital devices
     
    
    Emerging markets have expanded to account for an increasingly substantial portion of
the increase in PC sales worldwide, offering new demand opportunities to the PC
components manufacturers. Meanwhile, the PC industrys growing dependence on the
emerging regions is expected to result in lower PC prices. The resulting shift toward
low-cost configuration may further propel PC commoditization and thereby increase price
pressure on the upstream components suppliers.
 27




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##### Table of Contents




    
    Low-cost, ultra mobile PCs, which are also referred to as Netbooks, have emerged as
the fastest-growing PC category, representing the increasingly price-driven,
mobility-conscious market. The ultra mobile PC was initially intended to operate only
on the flash memory-based, solid-state disk drive, or SSD. Presently, however, most of
the new models incorporate 2.5-inch hard disk drives as their main storage devices in
response to strong consumer demand for larger storage capacity not materially inferior
to that of average notebook PCs. Based on our leadership position in the overall hard
disk drives spindle motor market, most notably in the 2.5-inch form factor, we intend
to take advantage of the growth in this PC category so as to ensure that our spindle
motor business will also continue to grow going forward. In the meantime, competition
with the SSD manufacturers in this field remains an issue of significance for the hard
disk drive industry. SSDs may not be an immediate threat to the hard disk drive supply
chain primarily due to extremely high price per gigabyte that substantially diminishes
SSDs comparative advantages over hard disk drives. However, the hard disk drive
industry continues to perceive SSDs as a medium- to long-term potential contender under
the assumption that SSD manufacturers would eventually overcome existing technical and
financial impediments to gain certain cost-competitiveness in the traditional low-end
storage market.
    
    Perpendicular magnetic recording, or PMR, has prevailed as the industrys mainstream
data recording technology. We believe PMR and follow-on data recording technologies,
which are expected to increase hard disk drive capacity at an annual pace of over 50%,
will further broaden applicability of hard disk drives beyond PC into non-compute
applications as consumers demand for storing high definition moving images increases.
    
    Horizontal and vertical consolidations in the hard disk drive industry have
accelerated in recent years, influencing the competitive positions of the upstream
component suppliers.
 (2) Other small precision brushless DC motors
   (3) Brushless DC Fans
  28




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(4) Other Small Precision Motors
 Small Precision Motors
  Mid-size Motors
 Mid-size Motors
     29




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Machinery
 Machinery
  Electronic and Optical Components
 Electronic and Optical Components
    Others
 Others
 30




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Sales by Geographic Market
  (Yen in millions, except percentage data)For the year ended March 312007
    
    2008
    
    2009(%)
    
    
    
    
    
    (%)
    
    
    
    
    
    (%)Sales and operating revenue:Japan
    
    ¥
    329,096
    
    
    
    53.6
    
    
    ¥
    359,489
    
    
    
    49.3
    
    
    ¥
    306,971
    
    
    
    50.0U.S.A.
    
    
    10,747
    
    
    
    1.7
    
    
    
    19,513
    
    
    
    2.7
    
    
    
    12,864
    
    
    
    2.1Singapore
    
    
    57,373
    
    
    
    9.3
    
    
    
    56,626
    
    
    
    7.8
    
    
    
    37,811
    
    
    
    6.2Thailand
    
    
    80,579
    
    
    
    13.1
    
    
    
    109,994
    
    
    
    15.1
    
    
    
    93,306
    
    
    
    15.2The Philippines
    
    
    12,929
    
    
    
    2.1
    
    
    
    13,374
    
    
    
    1.8
    
    
    
    12,394
    
    
    
    2.0China
    
    
    36,588
    
    
    
    6.0
    
    
    
    45,398
    
    
    
    6.2
    
    
    
    48,555
    
    
    
    7.9Other
    
    
    87,339
    
    
    
    14.2
    
    
    
    124,362
    
    
    
    17.1
    
    
    
    101,557
    
    
    
    16.6Consolidated total
    
    ¥
    614,651
    
    
    
    100.0
    
    
    ¥
    728,756
    
    
    
    100.0
    
    
    ¥
    613,458
    
    
    
    100.0
 
 Notes:(1)
    
    Inter-group transactions have been eliminated in consolidation.(2)
    
    Operations of the optical pickup business, formerly classified in the
Optical and Electronic Components business group, were reclassified
as discontinued operations as of December 31, 2008 in accordance with
the SFAS No.144. Prior-year amounts in the table have been
retrospectively restated to reflect this reclassification.  (Yen in millions, except percentage data)For the year ended March 312007
    
    2008
    
    2009(%)
    
    
    
    
    
    (%)
    
    
    
    
    
    (%)Sales by Region:North America
    
    ¥
    21,110
    
    
    
    3.5
    
    
    ¥
    31,086
    
    
    
    4.3
    
    
    ¥
    20,196
    
    
    
    3.3Asia
    
    
    370,750
    
    
    
    60.3
    
    
    
    429,206
    
    
    
    58.9
    
    
    
    358,112
    
    
    
    58.4Other
    
    
    28,399
    
    
    
    4.6
    
    
    
    53,635
    
    
    
    7.3
    
    
    
    41,258
    
    
    
    6.7Overseas sales total
    
    
    420,259
    
    
    
    68.4
    
    
    
    513,927
    
    
    
    70.5
    
    
    
    419,566
    
    
    
    68.4Japan
    
    
    194,392
    
    
    
    31.6
    
    
    
    214,829
    
    
    
    29.5
    
    
    
    193,892
    
    
    
    31.6Consolidated total
    
    ¥
    614,651
    
    
    
    100.0
    
    
    ¥
    728,756
    
    
    
    100.0
    
    
    ¥
    613,458
    
    
    
    100.0
 
 Notes:(1)
    
    Inter-group transactions have been eliminated in consolidation.(2)
    
    Operations of the optical pickup business, formerly classified in the Optical and Electronic Components business group, were
reclassified as discontinued operations as of December 31, 2008 in accordance with the SFAS No.144. Prior-year amounts in the table have
been retrospectively restated to reflect this reclassification. 31




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Competitors
  Product Development and Engineering
  Manufacturing and Operations
  Government Regulation and Environmental Standards
   32




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Intellectual Property
  Legal Proceedings
      33




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C. Organizational Structure.
  Percentageowned by usas of March 31,Name
    
    Country
    
    Principal business
    
    2009(%)Consolidated subsidiariesNidec Automobile Motor (Zhejiang)
Corporation
    
    China
    
    Manufacture of motors for automobiles
    
    
    100.0
    %Nidec America Corporation
    
    U.S.A
    
    Sales of fans and precision motors
    
    
    100.0
    %Nidec (Zhejiang) Corporation
    
    China
    
    Manufacture of spindle motors for hard disk drives
    
    
    100.0
    %Nidec (Dalian) Limited
    
    China
    
    Manufacture of small brushless DC motors and fan
motors
    
    
    100.0
    %Nidec (Dongguan) Limited
    
    China
    
    Manufacture of small brushless DC motors
    
    
    100.0
    %Shanghai Nidec Automotive Electric 
Motors Limited
    
    China
    
    Manufacture of motors for automobiles
    
    
    100.0
    %Nidec Electronics GmbH
    
    Germany
    
    Sales of spindle motors for hard disk drives and fans
    
    
    100.0
    %Nidec Philippines Corporation
    
    Philippines
    
    Manufacture of spindle motors for hard disk drives
    
    
    99.9
    %Nidec (H.K.) Co., Ltd.
    
    Hong Kong
    
    Sales of parts for our products and sales of spindle
motors
    
    
    99.9
    %Nidec Singapore Pte. Ltd.
    
    Singapore
    
    Manufacture and sales of pivot assemblies
    
    
    100.0
    %Nidec Taiwan Corporation
    
    Taiwan
    
    Sales of small brushless DC motors and fans
    
    
    100.0
    %Nidec Vietnam Corporation
    
    Vietnam
    
    Manufacture of fan motors
    
    
    100.0
    %Nidec Electronics (Thailand) Co.,
Ltd.
    
    Thailand
    
    Manufacture and sales of spindle motors for hard
disk drives
    
    
    99.9
    %Nidec Subic Philippines Corporation
    
    Philippines
    
    Manufacture of spindle motors for hard disk drives
    
    
    100.0
    %Nidec (Shanghai) International
Trading Co., Ltd.
    
    China
    
    Sales of small brushless DC motors
    
    
    100.0
    %Nidec Power Motor Corporation
    
    Japan
    
    Manufacture and sales of mid-size motors and small
AC motors
    
    
    92.3
    %Nidec Shibaura Corporation
    
    Japan
    
    Manufacture and sales of small AC motors
    
    
    100.0
    %
 34




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##### Table of Contents



Percentageowned by usas of MarchName
    
    Country
    
    Principal business
    
    31, 2009Nidec Copal Electronics
Corporation *1
    
    Japan
    
    Manufacture and sales of electronic circuit
components, pressure sensors, actuators and
potentiometers
    
    
    63.7
    %Nidec Copal Corporation *1
    
    Japan
    
    Manufacture and sales of optical, electronic and
information equipment, photo laboratory system and
factory automation equipment
    
    
    59.1
    %Nidec-Kyori Corporation
    
    Japan
    
    Manufacture and sales of high speed automatic
presses, feed devices and other industrial machinery
    
    
    100.0
    %Nidec System Engineering
(Zhejiang) Corporation
    
    China
    
    Manufacture of factory automation equipment
    
    
    100.0
    %Nidec Logistics Corporation
    
    Japan
    
    Transportation, warehousing, import and export
business, packing, environment business,
distribution processing and physical distribution
    
    
    100.0
    %Nidec Machinery Corporation
    
    Japan
    
    Manufacture and sales of automatic assembly line
machinery, testers and equipment for automotive
motor
    
    
    60.0
    %Nidec-Shimpo Corporation
    
    Japan
    
    Manufacture and sales of power transmission drives,
control devices, measuring and factory automation
equipment, ceramic and wood art equipment, and
others
    
    
    100.0
    %Nidec Tosok Corporation *1
    
    Japan
    
    Manufacture and sales of precision automotive parts,
automatic measuring equipment, semiconductor
manufacturing machinery, air/electronic gauges,
precision ball screws and other precision measuring
devices
    
    
    66.2
    %Nidec Total Service Corporation
    
    Japan
    
    Insurance agency, real estate business,
merchandising, building maintenance and others
    
    
    100.0
    %Nidec Sankyo Corporation *1
    
    Japan
    
    Manufacture and sales of motors, automated teller
machines, home appliance components and factory
automation equipment
    
    
    72.6
    %Nidec Motors & Actuators
    
    France
    
    Manufacture and sales of air flow system, seat
positioning system, body closure system, braking,
drive-line and steering system
    
    
    100.0
    %Nidec Brilliant Co., Ltd.
    
    Singapore
    
    Manufacture and sales of hard disk drives base
plate, brackets and top covers
    
    
    98.9
    %Nidec Servo Corporation *1
    
    Japan
    
    Manufacture and sales of motors for brushless
motors, stepping motors, fans motors, blowers
motors, sensors and motor applications
    
    
    62.6
    %
 
 Note:*1
    
     Listed on one or more stock exchanges in Japan Joint Venture with NTN Corporation
   35




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D. Property, Plants and Equipment.
   Facility name
    
    Location
    
    Floor space (square meters)
    
    Principal products and functionIn JapanCorporate Headquarters and Central Technical Laboratories (1)
    
    Japan
    
    36,119
    
    Basic research and development of fluid dynamic bearing technology developmentNidec Servo Corporation (1)
    
    Japan
    
    34,128
    
    Manufacture of mid-size motorsNidec-Shimpo Corporation (1)
    
    Japan
    
    29,322
    
    Manufacture of power transmission equipments and measuring equipmentNidec Power Motor Corporation (1)
    
    Japan
    
    27,459
    
    Manufacture and sales of mid-size motorsNidec Shibaura Corporation (2)
    
    Japan
    
    24,600
    
    Manufacture and sales of mid-size motorsNidec Tosok Corporation Head Office and Technical Center (1)
    
    Japan
    
    23,471
    
    Manufacture of measuring equipment and semiconductor equipmentNidec Copal Corporation Koriyama Technical Center (1)
    
    Japan
    
    22,884
    
    Development design and material procurementShiga Technical Center (1)
    
    Japan
    
    20,596
    
    Development and manufacture of small high-precision motors and mid-size motors. Production engineering.Nidec Sankyo Corporation Ina Facility (1)
    
    Japan
    
    19,953
    
    Manufacture of transfer robotsNidec Copal Corporation Shiojiri Factory (1)
    
    Japan
    
    16,452
    
    Manufacture of industrial automation and labor-saving equipmentsNidec Tosok Corporation Yamanashi Factory (1)
    
    Japan
    
    16,320
    
    Manufacture of automotive componentsNidec Copal Precision Parts Corporation Koriyama Factory (1)
    
    Japan
    
    14,372
    
    Manufacture of precision dies; press stamping components; injection molding components and surface treatment of componentsNidec Sankyo Corporation Komagane Facility (1)
    
    Japan
    
    14,347
    
    Manufacture of time switches; AC motors; stepping motor units; and related parts and componentsNidec Copal Electronics Corporation Sano Factory (1)
    
    Japan
    
    14,188
    
    Manufacture and sales of precision automotive parts
 36




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##### Table of Contents



Facility name
    
    Location
    
    Floor space (square meters)
    
    Principal products and functionOutside JapanNidec Philippines Corporation (3)
    
    Philippines
    
    76,658
    
    Manufacture of spindle motors for hard disk drivesNidec Sankyo (H.K.) Co., Limited Shilong Factory (4)
    
    China
    
    68,800
    
    Machining of small motors, stepping motors, stepping motor units, and related partsNidec (Dalian) Limited
    
    China
    
    50,784
    
    Manufacture of spindle motors for hard disk drives, DC motors for PC peripheral devices, fans and components for precision motorsNidec Motors & Actuators Mexico S. de R.L. de C.V (1)
    
    Mexico
    
    46,769
    
    Manufacture of motors for automotive and industrial applicationsNidec Shibaura (Zhejiang) Co., Ltd.
    
    China
    
    42,994
    
    Manufacture of mid-size motorsNidec Electronics (Thailand) Co., Ltd. Rojana Factory (1)
    
    Thailand
    
    42,280
    
    Manufacture of spindle motors for hard disk drivesNidec Tosok (Vietnam) Co., Ltd. (2)
    
    Vietnam
    
    41,972
    
    Manufacture of fans and components for automobilesNidec Electronics (Thailand) Co., Ltd. Rangsit Factory (1)
    
    Thailand
    
    41,650
    
    Manufacture of spindle motors for hard disk drivesNidec (Zhejiang) Corporation
    
    China
    
    41,000
    
    Manufacture of spindle motors for hard disk drives. Assembling of motors and accessoriesNidec (Dong Guan) Limited (4)
    
    China
    
    39,880
    
    Manufacture of small brushless DC motors for PC peripheral devices and office automation equipmentNidec Precision (Thailand) Co., Ltd. Rojana Factory (1)
    
    Thailand
    
    37,630
    
    Manufacture of components for precision motorsNidec Subic Philippines Corporation (2)
    
    Philippines
    
    35,627
    
    Manufacture of spindle motors for hard disk drivesNidec Motors & Actuators (Germany) GmbH (1)
    
    Germany
    
    31,120
    
    Manufacture of motors for automotive and industrial applicationsNidec Copal (Zhejiang) Co., Ltd.
    
    China
    
    28,949
    
    Manufacture of components and lens cones for digital still cameras and mini-laboratory systemsNidec Shibaura Electronics (Thailand) Co., Ltd.(1)
    
    Thailand
    
    28,476
    
    Manufacture of mid-size motorsNidec Copal (Thailand) Co., Ltd. (1)
    
    Thailand
    
    28,306
    
    Manufacture of camera components and micro motorsNidec Copal Electronics (Zhejiang) Co., Ltd.
    
    China
    
    26,000
    
    Manufacture of actuatorsNidec Vietnam Corporation (2)
    
    Vietnam
    
    21,740
    
    Manufacture of fan motorsNidec Sankyo Vietnam Corporation (2)
    
    Vietnam
    
    20,824
    
    Manufacture of stepping motorsNidec Sankyo (Fuzhou) Corporation (4)
    
    China
    
    20,540
    
    Manufacture of lens actuatorsNidec-Shimpo (Zhejiang) Corporation
    
    China
    
    20,310
    
    Manufacture of power transmission drivesNidec Precision (Thailand) Co., Ltd. Ayutthaya Factory (1)
    
    Thailand
    
    19,560
    
    Manufacture of components for precision motorsNidec Sankyo Electronics (Shaoguan) Co., Ltd. (2)
    
    China
    
    19,548
    
    Manufacture of actuator unitsNidec Servo Vietnam Corporation (2)
    
    Vietnam
    
    18,000
    
    Manufacture of brushless DC motors for office automation equipment and industrial instrumentNidec System Engineering (Zhejiang) Corporation
    
    China
    
    17,390
    
    Manufacture of various system equipmentNidec Sankyo (H.K.) Co., Limited Shanghan Electric Plant (4)
    
    China
    
    16,000
    
    Manufacture of DC motorsPT. Japan Servo Batam (1)
    
    Indonesia
    
    14,700
    
    Manufacture of mid-size motorsNidec Pigeon (H.K.) Co., Ltd.
Dong Bao Precision Factory (4)
    
    China
    
    14,254
    
    Manufacture and sales of audio equipment mechanism
 37




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##### Table of Contents



Facility name
    
    Location
    
    Floor space (square meters)
    
    Principal products and functionNidec Servo (Changzhou) Corporation (1)
    
    China
    
    14,220
    
    Manufacture of mid-size motorsNidec Automobile Motor (Zhejiang) Corporation (4)
    
    China
    
    13,745
    
    Manufacture of motors for automobilesNidec Sankyo (Zhejiang) Corporation (4)
    
    China
    
    13,383
    
    Manufacture of actuator unitsNidec Nissin (Dalian) Corporation (4)
    
    China
    
    13,260
    
    Manufacture of engineering plastic dies and moldingsNidec Sankyo Singapore Pte. Ltd. Batam Factory (4)
    
    Indonesia
    
    13,213
    
    Manufacture of stepping motors and actuator unitsNidec Nissin (Dongguan) Corporation (4)
    
    China
    
    13,010
    
    Manufacture of plastic moldings
  (1)
    
    We own both the property and the facilities.(2)
    
    We lease the property and own the facilities.(3)
    
    Nidec Philippines Corporation leases the property from Nidec Development Philippines
Corporation, a joint venture company with Prudential BK established for the purpose of
purchasing land in the Philippines. We own the facilities.(4)
    
    We lease both the property and the facilities.    
 Item 4A. Unresolved Staff Comments
  38




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##### Table of Contents



Item 5. Operating and Financial Review and Prospects
 A. Operating Results.
 You should read the following discussion of our financial condition and results of operations
together with our consolidated financial statements and related notes and other information
included in this annual report. This discussion and analysis contains forward-looking statements
that involve risks, uncertainties and assumptions. Our actual results may differ materially from
those anticipated in these forward-looking statements as a result of certain factors, including,
but not limited to, those set forth under Item 3.D Key Information-Risk Factors and elsewhere in
this annual report.
 Overview
  Principal Items in Our Statement of Operations
 Net sales-
  Cost of products sold-
  Selling, general and administrative expenses-
  Research and development expenses-
  Other income (expense)-
  39




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##### Table of Contents



Effects of Our Recent Acquisition Activities on Our Financial Statements
    
    
    Nidec Motors & Actuators
    
    Nidec Motors & Actuators (Germany) GmbH
    
    NMA Property Verwaltungsgesellschaft mbH
    
    Nidec Motors & Actuators (Poland) Sp.Z o.o.
    
    Nidec Motors & Actuators (Spain) S.A.
    
    Nidec Motors & Actuators (USA) INC.
    
    Nidec Motors & Actuators (Mexico) S. de R.L. de C.V.
      Effects of Foreign Currency Fluctuations
  40




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41




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Results of Operations  Year Ended March 31, 2009 Compared to Year Ended March 31, 2008
  U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119Operating expenses:Cost of products sold
    
    
    471,325
    
    
    
    571,337
    
    
    
    482,893
    
    
    
    4,915,942Selling, general and administrative expenses
    
    
    45,409
    
    
    
    50,168
    
    
    
    51,795
    
    
    
    527,283Research and development expenses
    
    
    31,981
    
    
    
    29,709
    
    
    
    26,964
    
    
    
    274,499548,715
    
    
    
    651,214
    
    
    
    561,652
    
    
    
    5,717,724Operating income
    
    
    65,936
    
    
    
    77,542
    
    
    
    51,806
    
    
    
    527,395Other income (expense):Interest and dividend income
    
    
    2,501
    
    
    
    2,869
    
    
    
    2,543
    
    
    
    25,888Interest expense
    
    
    (1,976
    )
    
    
    (2,369
    )
    
    
    (1,404
    )
    
    
    (14,293
    )Foreign exchange gain (loss), net
    
    
    1,815
    
    
    
    (13,218
    )
    
    
    (3,688
    )
    
    
    (37,545
    )Gain (loss) from marketable securities, net
    
    
    943
    
    
    
    454
    
    
    
    (1,305
    )
    
    
    (13,285
    )Other, net
    
    
    (1,605
    )
    
    
    (1,023
    )
    
    
    (923
    )
    
    
    (9,396
    )1,678
    
    
    
    (13,287
    )
    
    
    (4,777
    )
    
    
    (48,631
    )Income from continuing operations before
income taxes
    
    
    67,614
    
    
    
    64,255
    
    
    
    47,029
    
    
    
    478,764Income taxes
    
    
    (17,945
    )
    
    
    (15,930
    )
    
    
    (12,464
    )
    
    
    (126,886
    )Income from continuing operations before
minority interest and equity in earnings of
affiliated companies
    
    
    49,669
    
    
    
    48,325
    
    
    
    34,565
    
    
    
    351,878Minority interest in income of consolidated
subsidiaries
    
    
    8,816
    
    
    
    6,485
    
    
    
    3,777
    
    
    
    38,450Equity in net losses (income) of affiliated
companies
    
    
    73
    
    
    
    (39
    )
    
    
    48
    
    
    
    489Net income from continuing operations
    
    
    40,780
    
    
    
    41,879
    
    
    
    30,740
    
    
    
    312,939Net loss on discontinued operations
    
    
    (848
    )
    
    
    (723
    )
    
    
    (2,387
    )
    
    
    (24,300
    )Net income
    
    ¥
    39,932
    
    
    ¥
    41,156
    
    
    ¥
    28,353
    
    
    $
    288,639
 42




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Results of Operations  Year Ended March 31, 2009 Compared to Year Ended March 31, 2008
  Net Sales
  (Yen in millions)2008
    
    2009
    
    Inc/Dec
    
    %Net sales:Small precision motors:Hard disk drives spindle motors
    
    ¥
    223,068
    
    
    ¥
    181,255
    
    
    ¥
    (41,813
    )
    
    
    (18.7
    )%Other small
precision brushless DC motors
    
    
    92,359
    
    
    
    73,187
    
    
    
    (19,172
    )
    
    
    (20.8
    )%Brushless DC fans
    
    
    46,525
    
    
    
    37,345
    
    
    
    (9,180
    )
    
    
    (19.7
    )%Other small precision motors
    
    
    23,730
    
    
    
    22,286
    
    
    
    (1,444
    )
    
    
    (6.1
    )%Sub-total
    
    
    385,682
    
    
    
    314,073
    
    
    
    (71,609
    )
    
    
    (18.6
    )%Mid-size motors
    
    
    96,377
    
    
    
    77,156
    
    
    
    (19,221
    )
    
    
    (19.9
    )%Machinery
    
    
    73,253
    
    
    
    72,090
    
    
    
    (1,163
    )
    
    
    (1.6
    )%Electronic and optical components
    
    
    145,896
    
    
    
    122,552
    
    
    
    (23,344
    )
    
    
    (16.0
    )%Others
    
    
    27,548
    
    
    
    27,587
    
    
    
    39
    
    
    
    0.1
    %Consolidated total
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    ¥
    (115,298
    )
    
    
    (15.8
    )%
  (Small precision motors)
  Hard disk drives spindle motors
   43




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Other small precision brushless DC motors
   Brushless DC fans
   Other small precision motors
   (Mid-size motors)
   (Machinery)
  44




---



##### Table of Contents



(Electronic and optical components)
   (Others)
   Cost of Products Sold
   Selling, General and Administrative Expenses
   Research and Development Expenses
  45




---



##### Table of Contents



Operating Income
   Other Income (Expense)
    Income from continuing operations before Income Taxes
  Income Taxes
    46




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##### Table of Contents



Minority Interest in Income of Consolidated Subsidiaries
  Equity in Net Loss (Income) of Affiliated Companies
  Income from continuing operations
   Loss on discontinued operations
   Net Income
   47




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Results of Operations  Year Ended March 31, 2008 Compared to Year Ended March 31, 2007
 Net Sales
 (Yen in millions)2007
    
    
    2008
    
    
    Inc/Dec
    
    
    %Net sales:Small precision motors:Hard disk drives spindle motors
    
    ¥
    198,196
    
    
    ¥
    223,068
    
    
    ¥
    24,872
    
    
    
    12.5
    %Other small
precision brushless DC motors
    
    
    74,445
    
    
    
    92,359
    
    
    
    17,914
    
    
    
    24.1Brushless DC fans
    
    
    38,656
    
    
    
    46,525
    
    
    
    7,869
    
    
    
    20.4Other small precision motors
    
    
    6,684
    
    
    
    23,730
    
    
    
    17,046
    
    
    
    255.0Sub-total
    
    
    317,981
    
    
    
    385,682
    
    
    
    67,701
    
    
    
    21.3Mid-size motors
    
    
    57,389
    
    
    
    96,377
    
    
    
    38,988
    
    
    
    67.9Machinery
    
    
    82,944
    
    
    
    73,253
    
    
    
    (9,691
    )
    
    
    (11.7
    )Electronic and optical components *1
    
    
    129,635
    
    
    
    145,896
    
    
    
    16,261
    
    
    
    12.5Others
    
    
    26,702
    
    
    
    27,548
    
    
    
    846
    
    
    
    3.2Consolidated total
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    114,105
    
    
    
    18.6
    %
 
 *1
    
    As of December 31, 2008, we discontinued OPU business which had been
included within electronic and optical components. Net sales of electronic
and optical components for the fiscal year ended March 31, 2009 do not include
the sales amounts of OPU business pursuant to the Statement of Financial
Accounting Standards No.144, Accounting for the impairment or disposal of
Long-Lived Assets. All prior period OPU amounts have also been excluded as to
enable comparisons between the relevant net sales amount for the fiscal years
ended March 31, 2007, 2008 and 2009.   (Small precision motors)
  Hard disk drives spindle motors
  48




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Other small precision brushless DC motors
   Brushless DC fans
   Other small precision motors
   (Mid-size motors)
  49




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##### Table of Contents



(Machinery)
   (Electronic and optical components)
   (Others)
  Cost of Products Sold
   50




---



##### Table of Contents



Selling, General and Administrative Expenses
   Research and Development Expenses
   Operating Income
   Other Income (Expense)
    51




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##### Table of Contents



Income from continuing operations before Income Taxes
  Income Taxes
   Minority Interest in Income of Consolidated Subsidiaries
  Equity in Net Loss (Income) of Affiliated Companies
  Income from continuing operations
   Loss on discontinued operations
  Net Income
  52




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Segment Information
                53




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##### Table of Contents



Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)NCJNet sales to external customers
    
    ¥
    89,466
    
    
    ¥
    88,954
    
    
    ¥
    62,260
    
    
    $
    633,819Net sales to other operating segments
    
    
    91,130
    
    
    
    100,299
    
    
    
    72,064
    
    
    
    733,625Sub total
    
    
    180,596
    
    
    
    189,253
    
    
    
    134,324
    
    
    
    1,367,444NETNet sales to external customers
    
    
    67,754
    
    
    
    95,859
    
    
    
    80,247
    
    
    
    816,930Net sales to other operating segments
    
    
    21,486
    
    
    
    32,334
    
    
    
    31,125
    
    
    
    316,858Sub total
    
    
    89,240
    
    
    
    128,193
    
    
    
    111,372
    
    
    
    1,133,788NCCNet sales to external customers
    
    
    14,802
    
    
    
    14,161
    
    
    
    18,305
    
    
    
    186,348Net sales to other operating segments
    
    
    5,371
    
    
    
    10,776
    
    
    
    2,624
    
    
    
    26,713Sub total
    
    
    20,173
    
    
    
    24,937
    
    
    
    20,929
    
    
    
    213,061NCDNet sales to external customers
    
    
    3,637
    
    
    
    4,190
    
    
    
    7,776
    
    
    
    79,161
 54




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##### Table of Contents



Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)Net sales to other operating segments
    
    
    46,828
    
    
    
    43,849
    
    
    
    27,310
    
    
    
    278,021Sub total
    
    
    50,465
    
    
    
    48,039
    
    
    
    35,086
    
    
    
    357,182NCSNet sales to external customers
    
    
    49,877
    
    
    
    45,472
    
    
    
    27,118
    
    
    
    276,066Net sales to other operating segments
    
    
    347
    
    
    
    227
    
    
    
    205
    
    
    
    2,087Sub total
    
    
    50,224
    
    
    
    45,699
    
    
    
    27,323
    
    
    
    278,153NCHNet sales to external customers
    
    
    34,738
    
    
    
    39,359
    
    
    
    37,761
    
    
    
    384,414Net sales to other operating segments
    
    
    4,344
    
    
    
    4,298
    
    
    
    5,105
    
    
    
    51,970Sub total
    
    
    39,082
    
    
    
    43,657
    
    
    
    42,866
    
    
    
    436,384NCFNet sales to external customers
    
    
    5,382
    
    
    
    5,833
    
    
    
    7,517
    
    
    
    76,524Net sales to other operating segments
    
    
    42,845
    
    
    
    40,649
    
    
    
    22,669
    
    
    
    230,775Sub total
    
    
    48,227
    
    
    
    46,482
    
    
    
    30,186
    
    
    
    307,299NSNKNet sales to external customers
    
    
    52,361
    
    
    
    46,259
    
    
    
    51,035
    
    
    
    519,546Net sales to other operating segments
    
    
    10,600
    
    
    
    12,092
    
    
    
    11,001
    
    
    
    111,992Sub total
    
    
    62,961
    
    
    
    58,351
    
    
    
    62,036
    
    
    
    631,538NCPLNet sales to external customers
    
    
    63,008
    
    
    
    63,779
    
    
    
    53,090
    
    
    
    540,466Net sales to other operating segments
    
    
    8,460
    
    
    
    6,594
    
    
    
    6,727
    
    
    
    68,482Sub total
    
    
    71,468
    
    
    
    70,373
    
    
    
    59,817
    
    
    
    608,948NTSCNet sales to external customers
    
    
    22,310
    
    
    
    25,769
    
    
    
    22,644
    
    
    
    230,520Net sales to other operating segments
    
    
    357
    
    
    
    293
    
    
    
    211
    
    
    
    2,148Sub total
    
    
    22,667
    
    
    
    26,062
    
    
    
    22,855
    
    
    
    232,668NCELNet sales to external customers
    
    
    19,849
    
    
    
    22,392
    
    
    
    19,666
    
    
    
    200,204Net sales to other operating segments
    
    
    3,133
    
    
    
    4,177
    
    
    
    5,843
    
    
    
    59,483Sub total
    
    
    22,982
    
    
    
    26,569
    
    
    
    25,509
    
    
    
    259,687NSRVNet sales to external customers
    
    
    
    
    
    
    25,378
    
    
    
    20,029
    
    
    
    203,899Net sales to other operating segments
    
    
    
    
    
    
    3,549
    
    
    
    4,508
    
    
    
    45,892Sub total
    
    
    
    
    
    
    28,927
    
    
    
    24,537
    
    
    
    249,791NSBCNet sales to external customers
    
    
    16,146
    
    
    
    17,286
    
    
    
    14,600
    
    
    
    148,631Net sales to other operating segments
    
    
    3,439
    
    
    
    3,633
    
    
    
    3,053
    
    
    
    31,080Sub total
    
    
    19,585
    
    
    
    20,919
    
    
    
    17,653
    
    
    
    179,711NSCJNet sales to external customers
    
    
    10,748
    
    
    
    11,163
    
    
    
    9,389
    
    
    
    95,582Net sales to other operating segments
    
    
    2,448
    
    
    
    2,455
    
    
    
    1,746
    
    
    
    17,775Sub total
    
    
    13,196
    
    
    
    13,618
    
    
    
    11,135
    
    
    
    113,357NMANet sales to external customers
    
    
    9,079
    
    
    
    36,352
    
    
    
    24,729
    
    
    
    251,746Net sales to other operating segments
    
    
    
    
    
    
    284
    
    
    
    15
    
    
    
    153Sub total
    
    
    9,079
    
    
    
    36,636
    
    
    
    24,744
    
    
    
    251,899NNSN
 55




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##### Table of Contents



Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)Net sales to external customers
    
    
    10,895
    
    
    
    10,847
    
    
    
    9,738
    
    
    
    99,135Net sales to other operating segments
    
    
    762
    
    
    
    826
    
    
    
    593
    
    
    
    6,037Sub total
    
    
    11,657
    
    
    
    11,673
    
    
    
    10,331
    
    
    
    105,172All OthersNet sales to external customers
    
    
    136,867
    
    
    
    170,670
    
    
    
    133,792
    
    
    
    1,362,028Net sales to other operating segments
    
    
    189,726
    
    
    
    223,080
    
    
    
    185,151
    
    
    
    1,884,872Sub total
    
    
    326,593
    
    
    
    393,750
    
    
    
    318,943
    
    
    
    3,246,900TotalNet sales to external customers
    
    
    606,919
    
    
    
    723,723
    
    
    
    599,696
    
    
    
    6,105,019Net sales to other operating segments
    
    
    431,276
    
    
    
    489,415
    
    
    
    379,950
    
    
    
    3,867,963Adjustments (*)
    
    
    7,732
    
    
    
    5,033
    
    
    
    13,762
    
    
    
    140,100Intersegment elimination
    
    
    (431,276
    )
    
    
    (489,415
    )
    
    
    (379,950
    )
    
    
    3,867,963Consolidated total (net sales)
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119
 
 (*)
    
    See Note 27 to the consolidated financial statements included in this annual report. Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)Operating income or loss:NCJ
    
    ¥
    11,241
    
    
    ¥
    13,980
    
    
    ¥
    7,315
    
    
    $
    74,468NET
    
    
    10,822
    
    
    
    12,606
    
    
    
    15,629
    
    
    
    159,106NCC
    
    
    275
    
    
    
    1,040
    
    
    
    (324
    )
    
    
    (3,298
    )NCD
    
    
    4,560
    
    
    
    4,720
    
    
    
    2,855
    
    
    
    29,064NCS
    
    
    1,545
    
    
    
    1,231
    
    
    
    182
    
    
    
    1,853NCH
    
    
    386
    
    
    
    576
    
    
    
    554
    
    
    
    5,640NCF
    
    
    4,407
    
    
    
    4,129
    
    
    
    2,321
    
    
    
    23,628NSNK
    
    
    8,198
    
    
    
    4,608
    
    
    
    4,473
    
    
    
    45,536NCPL
    
    
    4,056
    
    
    
    3,415
    
    
    
    2,102
    
    
    
    21,399NTSC
    
    
    1,430
    
    
    
    1,643
    
    
    
    745
    
    
    
    7,584NCEL
    
    
    2,688
    
    
    
    3,631
    
    
    
    2,046
    
    
    
    20,829NSRV
    
    
    
    
    
    
    372
    
    
    
    (225
    )
    
    
    (2,291
    )NSBC
    
    
    136
    
    
    
    (97
    )
    
    
    (281
    )
    
    
    (2,861
    )NSCJ
    
    
    1,412
    
    
    
    1,182
    
    
    
    201
    
    
    
    2,046NMA
    
    
    59
    
    
    
    555
    
    
    
    (728
    )
    
    
    (7,411
    )NNSN
    
    
    545
    
    
    
    610
    
    
    
    298
    
    
    
    3,034All Others
    
    
    13,046
    
    
    
    22,663
    
    
    
    13,463
    
    
    
    137,056Total
    
    
    64,806
    
    
    
    76,864
    
    
    
    50,626
    
    
    
    515,382Adjustments (*)
    
    
    1,130
    
    
    
    678
    
    
    
    1,180
    
    
    
    12,015Consolidated total
    
    ¥
    65,936
    
    
    ¥
    77,542
    
    
    ¥
    51,806
    
    
    $
    527,397
 
 (*)
    
    See Note 27 to the consolidated financial statements included in this annual report.  56




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58




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59




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60




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Accounting Changes
     61




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Recent Accounting Pronouncements to Be Adopted in Future Periods
     62




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Application of Critical Accounting Policies
   Inventories
  Other-than-temporary Losses on Marketable Securities
  63




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
    
    it is highly susceptible to change from period to period because it requires our
management to make assumptions about future financial condition and cash flows of
investees; and
    
    the impact that recognizing an impairment would have on the total assets reported on
our balance sheet as well as our operating income would be material.
   Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)Other-than-temporary losses on marketable securities
    
    ¥
    11
    
    
    ¥
    287
    
    
    ¥
    1,617
    
    
    $
    16,461
 Allowance for Doubtful Accounts
    Year ended March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009(Yen in millions and U.S. dollars in thousands)Provision for doubtful accounts, net of reversal
    
    ¥
    117
    
    
    ¥
    312
    
    
    ¥
    349
    
    
    $
    3,552
 Deferred Tax Assets
  64




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Impairment of Long-lived Assets
  Acquisitions
  Valuation of Goodwill
  
    
    significant underperformance relative to expected historical or projected future
operating results;
 65




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
    
    significant changes in the manner of our use of the acquired assets or the strategy for
our overall business;
    
    significant negative industry or economic trends;
    
    significant decline in the stock price of the acquired entity for a sustained period;
and
    
    market capitalization of the acquired entity relative to its net book value.
  Pension Plans
   Yen in millionsEffect on pre-tax income
    
    
    Effect on PBOFor the year ending March 31, 2010
    
    
    As of March 31, 2009Discount rates0.5% decrease
    
    ¥
    (43
    )
    
    ¥
    1,6220.5% increase
    
    
    42
    
    
    
    (1,509
    )Expected rate of
return on plan
assets0.5% decrease
    
    ¥
    (37
    )0.5% increase
    
    
    37
 Income Taxes
  Revenue recognition -
  66




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B. Liquidity and Capital Resources.
  
    
    payments for the purchase of parts and raw materials;
    
    payments for the purchase of equipment for our production facilities;
    
    selling, general and administrative expenses such as research and development
expenses;
    
    payments for the purchase of shares of companies targeted under our acquisitions
strategy;
    
    employees salaries, wages and other payroll costs;
    
    repayment of short-term debt;
    
    payments of dividends to our shareholders; and
    
    taxes.
      67




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Cash Flows
   
    
    ¥6,337 million of positive impact from an increase in depreciation compared to
previous fiscal year;
    
    ¥7,937 million of positive impact from an increase in foreign currency adjustments
compared to previous fiscal year; and
    
    ¥7,140 million of positive impact from changes in operating assets and liabilities
compared to previous fiscal year.
    68




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C. Research and Development, Patents and Licenses, etc.
       69




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
    
    the development and improvement of basic motor characteristics. For example, in
order to achieve a higher transfer rate of memory written on hard disks, higher
rotation speeds are required of spindle motors. As a result, spindle motors which were
formerly required to generate 5,400 rotations per minute are now required to generate
7,200 to 15,000 rotations per minute. These higher speeds can, however, produce more
vibration. Such vibration, as well as the higher density of disks, can disrupt the
read-write function of hard disk drives. Accordingly, rotation precision has become
more important, and we are conducting research and development with a view to improving
such precision;
    
    the improvement of analysis and material technologies, including (1) improving
technologies for investigating the impact of spindle motors on hard disks, (2)
improving the cleanliness of materials and of manufacturing technology and (3) research
into the development of uses of new materials for spindle motors;
    
    the development and improvement of spindle motors for DVDs;
    
    the development and improvement of DC fan motors with a high airflow capacity that
helps disperse heat inside end products such as computers, game machines and
audio-visual equipments;
    
    the development and improvement of optical components including shutters and lens
unit for digital cameras and lens products for blue-ray, vibration motors, stepping
motors, dye sublimation printer, printer for IC cards and geared motors by Nidec Copal;
    
    the development and improvement of actuator, pressure sensors and radiofrequency, or
RF, components by Nidec Copal Electronics;
    
    the development and improvement of LCD panel handling robots for large LCD, micro
lens actuator units for mobile phone and card readers by Nidec Sankyo; and
    
    the development and improvement of compact motors in automobiles for comfort and
safety, such as seat adjuster, sunroof closure, windows closure, engine cooling, and
ABS by Nidec Motors and Actuators.
  70




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D. Trend Information.
  E. Off-Balance Sheet Arrangements.
  71




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F. Tabular Disclosure of Contractual Obligations.
  (Yen in millions)
 Payments Due by PeriodLess than
    
    
    
    
    
    
    
    
    
    AfterContractual Obligations
    
    Total
    
    1 year
    
    2-3 years
    
    4-5 years
    
    5 yearsLong-term Debt
    
    ¥
    663
    
    
    ¥
    4
    
    
    ¥
    349
    
    
    ¥
    68
    
    
    ¥
    242Capital Lease Obligations
    
    
    3,798
    
    
    
    1,879
    
    
    
    1,600
    
    
    
    311
    
    
    
    8Interest on debt *1
    
    
    207
    
    
    
    115
    
    
    
    79
    
    
    
    8
    
    
    
    5Operating Leases
    
    
    4,499
    
    
    
    1,000
    
    
    
    1,582
    
    
    
    1,121
    
    
    
    796Purchase Commitments for fixed
assets
    
    
    9,104
    
    
    
    9,104
    
    
    
    
    
    
    
    
    
    
    
    Total Contractual Cash Obligations
    
    
    18,271
    
    
    
    12,102
    
    
    ¥
    3,610
    
    
    ¥
    1,508
    
    
    ¥
    1,051Contribution under pension plans *2
    
    ¥
    2,338
    
    
    ¥
    2,338
    
    
    
    
    
    
    
    
    
    
    
    
 Amount of Commitment Expiration per PeriodTotalamounts
    
    Less than
    
    
    
    
    
    
    
    
    
    OverOther Commercial Commitments
    
    committed
    
    1 year
    
    2-3 years
    
    4-5 years
    
    5 yearsGuarantees
    
    ¥
    186
    
    
    ¥
    41
    
    
    ¥
    28
    
    
    ¥
    26
    
    
    ¥
    91Total Commercial Commitments
    
    ¥
    186
    
    
    ¥
    41
    
    
    ¥
    28
    
    
    ¥
    26
    
    
    ¥
    91
 (U.S. dollars in thousands)
 Payments Due by PeriodLess than
    
    
    
    
    
    
    
    
    
    AfterContractual Obligations
    
    Total
    
    1 year
    
    2-3 years
    
    4-5 years
    
    5 yearsLong-term Debt
    
    $
    6,750
    
    
    $
    41
    
    
    $
    3,553
    
    
    $
    692
    
    
    $
    2,464Capital Lease Obligations
    
    
    38,664
    
    
    
    19,128
    
    
    
    16,288
    
    
    
    3,166
    
    
    
    82Interest on debt *1
    
    
    2,107
    
    
    
    1,171
    
    
    
    804
    
    
    
    81
    
    
    
    51Operating Leases
    
    
    45,801
    
    
    
    10,180
    
    
    
    16,105
    
    
    
    11,412
    
    
    
    8,104Purchase Commitments for fixed
assets
    
    
    92,680
    
    
    
    92,680
    
    
    
    
    
    
    
    
    
    
    
    Total Contractual Cash Obligations
    
    
    186,002
    
    
    
    123,200
    
    
    $
    36,750
    
    
    $
    15,351
    
    
    $
    10,701Contribution under pension plans *2
    
    $
    23,801
    
    
    $
    23,801
    
    
    
    
    
    
    
    
    
    
    
    
 Amount of Commitment Expiration per PeriodTotalamounts
    
    Less than
    
    
    
    
    
    
    
    
    
    OverOther Commercial Commitments
    
    committed
    
    1 year
    
    2-3 years
    
    4-5 years
    
    5 yearsGuarantees
    
    $
    1,894
    
    
    $
    417
    
    
    $
    285
    
    
    $
    265
    
    
    $
    927Total Commercial Commitments
    
    $
    1,894
    
    
    $
    417
    
    
    $
    285
    
    
    $
    265
    
    
    $
    927
 
 *1
    
    Interests at variable interest rates are assumed based on the current applicable rate of
2.0%.*2
    
    Amounts are only available for payments due in less than one year.  72




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73




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Item 6. Directors, Senior Management and Employees.
 A. Directors and Senior Management.
 Directors, Executive Officers and Corporate Auditors
  Number ofNidec shares
    
    Percentage ofMonth in which
    
    owned as of
    
    common stockcurrent term
    
    March 31, 2009
    
    outstanding as ofName
    
    Position
    
    Date of birth
    
    expires
    
    (in thousands)
    
    March 31, 2009Shigenobu Nagamori
    
    Representative Director,
President and Chief
Executive Officer
    
    August 28, 1944
    
    June 2010
    
    
    20,067
    
    
    
    14.4
    %Hiroshi Kobe
    
    Representative Director,
Executive Vice
President and Chief
Operating Officer
    
    March 28, 1949
    
    June 2010
    
    
    236
    
    
    
    *Yasunobu Toriyama
    
    Member of the Board,
Executive Vice President
    
    September 18, 1938
    
    June 2010
    
    
    15
    
    
    
    *Kenji Sawamura
    
    Member of the Board,
Executive Vice President
    
    February 15, 1942
    
    June 2010
    
    
    8
    
    
    
    *Juntaro Fujii
    
    Member of the Board,
Executive Vice President
    
    February 20, 1945
    
    June 2010
    
    
    2
    
    
    
    *Yasuo Hamaguchi
    
    Member of the Board,
First Senior Vice
President
    
    September 27, 1949
    
    June 2010
    
    
    275
    
    
    
    *Tadaaki Hamada
    
    Member of the Board,
First Senior Vice
President
    
    August 14, 1948
    
    June 2010
    
    
    2
    
    
    
    *Masuo Yoshimatsu
    
    Member of the Board,
Senior Vice President
and Chief Financial
Officer
    
    April 28, 1958
    
    June 2010
    
    
    3
    
    
    
    *Tetsuo Inoue
    
    Member of the Board,
Vice President
    
    June 22, 1948
    
    June 2010
    
    
    6
    
    
    
    *Hideo Asahina
    
    Corporate Auditor
    
    March 28, 1938
    
    June 2011
    
    
    1
    
    
    
    *Takashi Iwata
    
    Corporate Auditor
    
    April 9, 1947
    
    June 2013
    
    
    2
    
    
    
    *Shiro Kuniya
    
    Corporate Auditor
    
    February 22, 1957
    
    June 2010
    
    
    
    
    
    
    *Yoshiro Kitano
    
    Corporate Auditor
    
    September 30, 1935
    
    June 2010
    
    
    
    
    
    
    *Susumu Ono
    
    Corporate Auditor
    
    November 12, 1948
    
    June 2011
    
    
    
    
    
    
    *
 
 Notes:(1)
    
     represents no beneficial ownership in any Nidec shares.(2)
    
    The asterisk represents beneficial ownership of less than 1%. 74




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Shigenobu Nagamori
 Hiroshi Kobe
 Yasunobu Toriyama
 Kenji Sawamura
 Juntaro Fujii
 Yasuo Hamaguchi
 75




---



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Tadaaki Hamada
 Masuo Yoshimatsu
 Tetsuo Inoue
 Hideo Asahina
 Takashi Iwata
 Shiro Kuniya
 Yoshiro Kitano
 Susumu Ono
 76




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Number ofNidec shares
    
    Percentage ofMonth in which
    
    owned as of
    
    common stockcurrent term
    
    March 31, 2009
    
    outstanding as ofName
    
    Position
    
    Date of birth
    
    expires
    
    (in thousands)
    
    March 31, 2009Norimasa Goto
    
    Senior Vice President
    
    March 1, 1947
    
    June 2010
    
    
    0
    
    
    
    *Seiichi Hattori
    
    Senior Vice President
    
    December 30, 1953
    
    June 2010
    
    
    20
    
    
    
    *Seizaburo Kawaguchi
    
    Senior Vice President
    
    October 27, 1953
    
    June 2010
    
    
    21
    
    
    
    *Kiyoyoshi Takegami
    
    Senior Vice President
    
    December 28, 1954
    
    June 2010
    
    
    49
    
    
    
    *Tsuyoshi Takahashi
    
    Senior Vice President
    
    August 10, 1945
    
    June 2010
    
    
    0
    
    
    
    *Seiichi
Takeda
    
    Vice President
    
    March 3, 1950
    
    June 2010
    
    
    
    
    
    
    *Masahiro Hishida
    
    Vice President
    
    October 23, 1954
    
    June 2010
    
    
    0
    
    
    
    *Takashi Watanuki
    
    Vice President
    
    November 19, 1952
    
    June 2010
    
    
    0
    
    
    
    *Osamu Narumiya
    
    Vice President
    
    August 6, 1951
    
    June 2010
    
    
    0
    
    
    
    *Tadashi Matsumoto
    
    Vice President
    
    August 11, 1952
    
    June 2010
    
    
    0
    
    
    
    *Hitoshi Inoue
    
    Vice President
    
    December 24, 1952
    
    June 2010
    
    
    1
    
    
    
    *Genzo Arakawa
    
    Vice President
    
    June 18, 1949
    
    June 2010
    
    
    0
    
    
    
    *Toshihiko Miyabe
    
    Vice President
    
    June 16, 1958
    
    June 2010
    
    
    4
    
    
    
    *Hitoshi Tatsuno
    
    Vice President
    
    January 8, 1959
    
    June 2010
    
    
    5
    
    
    
    *Kuniyasu Tampo
    
    Vice President
    
    January 21, 1960
    
    June 2010
    
    
    8
    
    
    
    *Tatsuya Nishimoto
    
    Vice President
    
    October 20,1956
    
    June 2010
    
    
    
    
    
    
    *
 77




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Number ofNidec shares
    
    Percentage ofMonth in which
    
    owned as of
    
    common stockcurrent term
    
    March 31, 2009
    
    outstanding as ofName
    
    Position
    
    Date of birth
    
    expires
    
    (in thousands)
    
    March 31, 2009Mitsuru Tsuyoshi
    
    Vice President
    
    November 1,1949
    
    June 2010
    
    
    1
    
    
    
    *Chiaki Sano
    
    Vice President
    
    November 2,1948
    
    June 2010
    
    
    
    
    
    
    *
 
 Notes:(1)
    
     represents no beneficial ownership in any Nidec shares, and 0 represents beneficial
ownership in more than 0 but less than 1,000 shares.(2)
    
    The asterisk represents beneficial ownership of less than 1%.  Norimasa Goto
 
 Seiichi Hattori
 
 Seizaburo Kawaguchi
 
 Kiyoyoshi Takegami
 
 Tsuyoshi Takahashi
 
 Seiichi Takeda
 
 Masahiro Hishida
 
 Takashi Watanuki
 78




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Osamu Narumiya
 
 Tadashi Matsumoto
 
 Hitoshi Inoue
 
 Genzo Arakawa
 
 Toshihiko Miyabe
 
 Hitoshi Tatsuno
 
 Kuniyasu Tampo
 
 Tatsuya Nishimoto
 
 Mitsuru Tsuyoshi
 
 Chiaki Sano
  79




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Corporate Auditors
    B. Compensation.
  C. Board Practices.
  80




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D. Employees.
  As of March 31,2007
    
    2008
    
    2009Japan
    
    
    7,989
    
    
    
    8,909
    
    
    
    8,918North America
    
    
    1,146
    
    
    
    1,052
    
    
    
    731Asia (other than Japan)
    
    
    79,208
    
    
    
    86,162
    
    
    
    66,143Europe
    
    
    727
    
    
    
    774
    
    
    
    782Total
    
    
    89,070
    
    
    
    96,897
    
    
    
    76,574
 
 Note:
    
    The number of employees decreased by 20,322 compared with the previous year mainly due to
decreased production by existing production sites to meet with decreased demand overseas. Japan
    Overseas
   E. Share Ownership.
  81




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Item 7. Major Shareholders and Related Party Transactions.
 A. Major Shareholders.
  Number of shares of
    
    Percentage ofcommon stock owned
    
    common stockShareholders
    
    (thousands)
    
    outstandingShigenobu Nagamori *
    
    
    20,067
    
    
    
    14.4
    %Japan
Trustee Service Bank, Ltd. (trust account)
    
    
    18,314
    
    
    
    13.1
    %The Master Trust Bank of Japan, Ltd. (trust account)
    
    
    12,592
    
    
    
    9.0
    %Mitsubishi UFJ Financial Group, Inc. **
    
    
    8,193
    
    
    
    5.8
    %
 
 *:
    
    As of March 31, 2009, Mr. Shigenobu Nagamori, our
CEO, directly held of record 8.5% and,
indirectly through S.N. Kohsan, an entity wholly owned by
Mr. Nagamori, held of record 3.9%
of our outstanding shares. Mr. Nagamoris immediate family
member held an additional 2.0% of
our outstanding shares as of the same date.**:
    
    As of March 31, 2009, and based on the substantial shareholding report filed on that date by
Mitsubishi UFJ Financial Group, Inc. (Mitsubishi) with the Financial Services Agency in
Japan, which disclosed its and its affiliates beneficial ownership of shares of our common
stock.According to a substantial shareholding report, dated June 1, 2009, filed under the
Financial Instruments and Exchange Law of Japan, Mitsubishi UFJ Financial Group, Inc. held
8,854,644 shares of our common stock as of May 25, 2009, representing approximately 6.3% of our
total issued shares as of that date. We have not been able independently to confirm such
shareholding.    B. Related Party Transactions.
  82




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##### Table of Contents



U.S. dollars inYen in millions
    
    thousandsFor the year ended March 312007
    
    2008
    
    2009
    
    2009S.N. Kohsan *1
    
    ¥
    (3
    )
    
    ¥
    (3
    )
    
    ¥
    (3
    )
    
    $
    (31
    )Green Kohsan *1
    
    
    (10
    )
    
    
    (10
    )
    
    
    (10
    )
    
    
    (102
    )Hamaguchi Denki Seisakusho*1
    
    
    (24
    )
    
    
    (21
    )
    
    
    (14
    )
    
    
    (143
    )Hamaguchi Denki Seisakusho*2
    
    ¥
    7
    
    
    ¥
    6
    
    
    ¥
    4
    
    
    $
    41
 
 Notes:*1:
    
    Total amount paid by us*2:
    
    Total amount paid to us      Loan to S.N. Kohsan
   83




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##### Table of Contents



Own share repurchase-
   1. Reason for share repurchase:
    
    The repurchase was made to facilitate S.N. Kohsans
sale of shares in us to obtain the funds necessary to
repay the loan discussed above, and thereby bring Nidec
into compliance with Section 402 of the Sarbanes-Oxley
Act of 2002 promptly. The share repurchase was within
the parameters established in the resolution described
above and the repurchase was structured in a manner
intended to give all shareholders the opportunity to
have their shares repurchased by Nidec, on a pro rata
basis, at the same time and at the same price.
Accordingly, on February 10, 2009, Nidec publicly
announced its intention to repurchase on J-NET, on the
morning of February 12, 2009, 3,500,000 shares at the
closing price on the market on February 10, 2009. Based
on the offers received, Nidec repurchased 2,917,800 of
its shares from S.N. Kohsan and 582,200 of its shares
from other shareholders.2. Class of shares repurchased:
    
    Common stock3. Total number of shares repurchased:
    
    3,500,000 shares4. Total amount of repurchase:
    
    ¥15,435 million
(representing the closing price of ¥4,410 per share on
the Osaka Securities Exchange on February 10, 2009)5. Method of repurchase:
    
    Repurchased through J-NET, the Osaka Securities Exchange
 84




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##### Table of Contents



C. Interests of Experts and Counsel.
  
 Item 8. Financial Information.
 A. Consolidated Statements and Other Financial Information.
 Financial Statements
  Legal or Arbitration Proceedings
  Dividend Policy
     85




---



##### Table of Contents



Dividends per shareRecord date
    
    Yen
    
    U.S. dollarSeptember 30, 2004
    
    ¥
    10.0
    *
    
    $
    0.095March 31, 2005 **
    
    
    12.5
    *
    
    
    0.115September 30, 2005
    
    
    12.5
    *
    
    
    0.104March 31, 2006 **
    
    
    20.0
    
    
    
    0.173September 30, 2006
    
    
    20.0
    
    
    
    0.172March 31, 2007
    
    
    25.0
    
    
    
    0.206September 30, 2007
    
    
    25.0
    
    
    
    0.224March 31, 2008
    
    
    30.0
    
    
    
    0.280September 30, 2008
    
    
    30.0
    
    
    
    0.325March 31, 2009
    
    ¥
    30.0
    
    
    $
    0.304
 
 *
    
    A two-for-one stock split on the Companys common stock effective November 18, 2005 was
implemented for shareholders of record as of September 30, 2005. The dividends per share have
been accordingly adjusted to reflect the effect of the stock split.**
    
    Our Board of Directors recommended the dividend to be paid the end of each fiscal year. The
recommended dividend was then approved by shareholders at the general meeting of shareholders
in June of each year. Under the Company Law of Japan (which replaced the Commercial Code in
May 2006), however, our Board of Directors may, in certain circumstances, pay dividends
without shareholder approval.    B. Significant Changes.
  86




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##### Table of Contents



Item 9. The Offer and Listing.
 A. Offer and Listing Details.
   AverageDailyPrice Per Share
    
    Trading
    
    Nikkei Stock AverageHigh
    
    Low
    
    Volume
    
    High
    
    Low(inthousandsof shares)Year ended March 31,2005
    
    ¥
    6,675
    
    
    ¥
    4,795
    
    
    
    452
    
    
    ¥
    12,163.89
    
    
    ¥
    10,505.052006
    
    
    10,930
    
    
    
    5,735
    
    
    
    612
    
    
    
    17,059.66
    
    
    
    10,825.392007
    
    
    9,660
    
    
    
    7,030
    
    
    
    560
    
    
    
    18,215.35
    
    
    
    14,218.602008
    
    
    8,730
    
    
    
    6,080
    
    
    
    784
    
    
    
    18,261.98
    
    
    
    11,787.51First Quarter
    
    
    7,860
    
    
    
    6,890
    
    
    
    658
    
    
    
    18,240.30
    
    
    
    17,028.41Second Quarter
    
    
    8,220
    
    
    
    6,730
    
    
    
    869
    
    
    
    18,261.98
    
    
    
    15,273.68Third Quarter
    
    
    8,730
    
    
    
    7,380
    
    
    
    700
    
    
    
    17,458.98
    
    
    
    14,837.66Fourth Quarter
    
    
    8,020
    
    
    
    6,080
    
    
    
    916
    
    
    
    14,691.41
    
    
    
    11,787.512009
    
    
    8,260
    
    
    
    3,340
    
    
    
    938
    
    
    
    14,489.44
    
    
    
    7,054.98First Quarter
    
    
    8,260
    
    
    
    6,280
    
    
    
    769
    
    
    
    14,489.44
    
    
    
    12,656.42Second Quarter
    
    
    7,920
    
    
    
    6,380
    
    
    
    714
    
    
    
    13,603.31
    
    
    
    11,259.86Third Quarter
    
    
    6,500
    
    
    
    3,340
    
    
    
    1,180
    
    
    
    11,368.26
    
    
    
    7,162.90Fourth Quarter
    
    
    4,710
    
    
    
    3,550
    
    
    
    1,105
    
    
    
    9,239.24
    
    
    
    7,054.98Calendar periodDecember 2008
    
    
    4,540
    
    
    
    3,340
    
    
    
    1,286
    
    
    
    8,859.56
    
    
    
    7,863.69January 2009
    
    
    4,350
    
    
    
    3,550
    
    
    
    1,360
    
    
    
    9,239.24
    
    
    
    7,682.14February 2009
    
    
    4,650
    
    
    
    3,880
    
    
    
    1,116
    
    
    
    8,076.62
    
    
    
    7,268.56March 2009
    
    
    4,710
    
    
    
    3,930
    
    
    
    864
    
    
    
    8,636.33
    
    
    
    7,054.98April 2009
    
    
    5,410
    
    
    
    4,350
    
    
    
    972
    
    
    
    8,964.11
    
    
    
    8,351.91May 2009
    
    ¥
    5,650
    
    
    ¥
    4,980
    
    
    
    771
    
    
    ¥
    9,522.50
    
    
    ¥
    8,977.37
 87




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##### Table of Contents



AverageDaily
    
    Dow Jones IndustrialPrice Per ADS
    
    Trading
    
    AverageHigh
    
    Low
    
    Volume
    
    High
    
    Low(in ADSs)Year ended March 31,2005
    
    $
    16.20
    
    
    $
    11.05
    
    
    
    10,802
    
    
    $
    10,940.55
    
    
    $
    9,749.992006
    
    
    23.32
    
    
    
    13.01
    
    
    
    22,038
    
    
    
    11,317.43
    
    
    
    10,012.362007
    
    
    20.82
    
    
    
    15.28
    
    
    
    24,161
    
    
    
    12,786.64
    
    
    
    10,706.142008
    
    
    19.73
    
    
    
    14.11
    
    
    
    29,366
    
    
    
    14,164.53
    
    
    
    11,740.15First Quarter
    
    
    16.53
    
    
    
    14.25
    
    
    
    22,054
    
    
    
    13,676.32
    
    
    
    12,382.30Second Quarter
    
    
    17.85
    
    
    
    14.11
    
    
    
    36,392
    
    
    
    14,000.41
    
    
    
    12,845.78Third Quarter
    
    
    19.73
    
    
    
    16.87
    
    
    
    20,114
    
    
    
    14,164.53
    
    
    
    12,743.44Fourth Quarter
    
    
    18.30
    
    
    
    14.80
    
    
    
    39,367
    
    
    
    13,056.72
    
    
    
    11,740.152009
    
    
    19.47
    
    
    
    8.87
    
    
    
    33,727
    
    
    
    13,058.20
    
    
    
    6,547.05First Quarter
    
    
    19.47
    
    
    
    16.12
    
    
    
    20,969
    
    
    
    13,058.20
    
    
    
    11,346.51Second Quarter
    
    
    18.13
    
    
    
    14.69
    
    
    
    23,227
    
    
    
    11,782.35
    
    
    
    10,365.45Third Quarter
    
    
    15.43
    
    
    
    8.87
    
    
    
    49,230
    
    
    
    10,831.07
    
    
    
    7,552.29Fourth Quarter
    
    
    12.81
    
    
    
    9.70
    
    
    
    41,866
    
    
    
    9,034.69
    
    
    
    6,547.05Calendar periodDecember 2008
    
    
    11.34
    
    
    
    8.87
    
    
    
    43,950
    
    
    
    8,934.18
    
    
    
    8,149.09January 2009
    
    
    12.05
    
    
    
    9.82
    
    
    
    44,140
    
    
    
    9,034.69
    
    
    
    7,949.09February 2009
    
    
    12.81
    
    
    
    9.90
    
    
    
    46,995
    
    
    
    8,280.59
    
    
    
    7,062.93March 2009
    
    
    11.96
    
    
    
    9.70
    
    
    
    35,368
    
    
    
    7,924.56
    
    
    
    6,547.05April 2009
    
    
    13.90
    
    
    
    11.33
    
    
    
    29,648
    
    
    
    8,185.73
    
    
    
    7,761.60May 2009
    
    $
    14.44
    
    
    $
    13.02
    
    
    
    34,695
    
    
    $
    8,574.65
    
    
    $
    8,212.41
 B. Plan of Distribution.
  C. Markets.
  D. Selling Shareholders.
  E. Dilution.
  88




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F. Expenses of the Issue.
  
 Item 10. Additional Information.
 A. Share Capital.
  B. Memorandum and Articles of Association.
 Objects and Purposes in Our Articles of Incorporation
  
    
    manufacture, sales and development of electric, electronic, precision, industrial
and other equipment, machines, drives, components and other products,
    
    insurance agent business,
    
    sales, purchase, lease, brokering, and management of moveable and real property,
    
    travel agent and advertising businesses, and
    
    any other businesses related or incidental to the foregoing businesses mentioned
above.
 Provisions Regarding Our Directors
      89




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Holding of Our Shares by Foreign Investors
  Rights of Our Shareholders
  General
      Shareholders Rights to Bring Actions Against Directors
  90




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Distribution of Surplus
 General
  (a)
    
    the normal term of office of our Directors terminates on or prior to the date of
conclusion of the ordinary general meeting of shareholders relating to the last fiscal
year ending within the period of one year from the election of the Directors; and(b)
    
    our non-consolidated annual financial statements and certain documents for the last
fiscal year present fairly our assets and profit or loss, as required by the ordinances
of the Ministry of Justice.
   91




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Restriction on Distributions of Surplus
     A =
    
    the total amount of other capital surplus and other retained earnings,
each such amount being that appearing on our non-consolidated balance sheet as of the
end of the last fiscal year;B =
    
    (if we have disposed of our treasury stock after the end of the last fiscal
year) the amount of the consideration for such treasury stock received by us less the
book value thereof;C =
    
    (if we have reduced our stated capital after the end of the last fiscal
year) the amount of such reduction less the portion thereof that has been transferred
to additional paid-in capital or legal reserve (if any);D =
    
    (if we have reduced our additional paid-in capital or legal reserve after
the end of the last fiscal year) the amount of such reduction less the portion thereof
that has been transferred to stated capital (if any);E =
    
    (if we have cancelled our treasury stock after the end of the last fiscal
year) the book value of such treasury stock;F =
    
    (if we have distributed Surplus to our shareholders after the end of the
last fiscal year) the total book value of the Surplus so distributed;G =
    
    certain other amounts set forth in the ordinances of the Ministry of
Justice, including (if we have reduced Surplus and increased our stated capital,
additional paid-in capital or legal reserve after the end of the last fiscal year) the
amount of such reduction and (if we have distributed Surplus to our shareholders after
the end of the last fiscal year) the amount set aside in our additional paid-in
capital or legal reserve (if any) as required by the ordinances of the Ministry of
Justice.
  (a)
    
    the book value of our treasury stock;(b)
    
    the amount of consideration for our treasury stock disposed of by us after
the end of the last fiscal year; and(c)
    
    certain other amounts set forth in the ordinances of the Ministry of
Justice, including (if the sum of one-half of good will and the deferred assets
exceeds the total of stated capital,
 92




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additional paid-in capital and legal reserve, each such amount being that appearing
on our non-consolidated balance sheet as of the end of the last fiscal year) all or
certain part of such exceeding amount as calculated in accordance with the
ordinances of the Ministry of Justice.
 renketsu
haito kisei tekiyo kaisha
   Capital and Reserves
   Stock Splits
   93




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Japanese Unit Share System
  Transferability of Shares Representing Less Than One Unit
  Right of a Holder of Shares Representing Less Than One Unit to Require Us to Purchase Its Shares
  
    
    the closing price of the shares reported by the Osaka Securities Exchange Co., Ltd.
(the Osaka Securities Exchange) on the day when the request to purchase is made; or
    
    if no sale takes place on such stock exchange on that day, the closing price of the shares reported by the Tokyo Stock Exchange, Inc. (the Tokyo Stock Exchange) on such
day; or
    
    if no sale takes place on either of such stock exchanges on such day, the price at
which the shares are first traded on the Osaka Securities Exchange on the next day; or
    
    if no sale takes place on such stock exchange on such day, the price at which the shares are first traded on the Tokyo Stock Exchange on such day; or
    
    if no sale takes place on either of such stock exchanges on such day, the price at
which the shares are first traded on either of such stock exchanges, provided that, if
the shares are traded on both such exchanges on the same day, the relevant price shall
be the price at which the shares are first traded on the Osaka Securities Exchange.
  Voting Right of a Holder of Shares Representing Less Than One Unit
   94




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Other Rights of a Holder of Shares Representing Less Than One Unit
  
    
    to receive distribution of dividends;
    
    to receive shares, cash or other assets in case of consolidation or split of shares,
exchange or transfer of shares or corporate merger;
    
    to be allotted rights to subscribe for new shares and other stock acquisition rights
when such rights are granted to shareholders; and
    
    to participate in any distribution of surplus assets upon liquidation.
 Ordinary General Meeting of Shareholders
  Voting Rights
   (a)
    
    reduction of the stated capital;(b)
    
    amendment to the Articles of Incorporation;(c)
    
    establishment of a 100% parent-subsidiary relationship by way of share exchange
or share transfer;(d)
    
    dissolution, merger or consolidation;
 95




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##### Table of Contents



(e)
    
    company split;(f)
    
    transfer of the whole or an important part of our business;(g)
    
    taking over of the whole of the business of any other corporation;(h)
    
    removal of a Corporate Auditor;(i)
    
    any issuance of shares or transfer of existing shares as treasury stock to
persons other than the shareholders at a specially favorable price;(j)
    
    any issuance of stock acquisition rights (including those incorporated in bonds
with stock acquisition rights) to persons other than the shareholders under specially
favorable conditions;(k)
    
    purchase of shares by us from a specific shareholder other than our subsidiary;(l)
    
    consolidation of shares;(m)
    
    distribution of Surplus in kind with respect to which shareholders are not
granted the right to require us to make such distribution in cash instead of in kind;
and(n)
    
    exemption from a portion of liability of the Directors, Corporate Auditors or
independent auditors.
   Subscription Rights
  96




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Stock Acquisition Rights
 shinkabu yoyakuken shinkabu yoyakuken-tsuki shasai
 Liquidation Rights
  Liability to Further Calls or Assessments
  Share Registrar
  Record Date
    Repurchase by Nidec of Shares
  97




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American Depositary Receipts
  Reporting of Substantial Shareholdings
  Daily Price Fluctuation Limits under Japanese Stock Exchange Rules
   98




---



##### Table of Contents



Selected Daily Price Limits
 Previous Days
Closing Price or Special Quote
    Maximum Daily PriceMovementOver
    
    ¥
    3,000
    
    
    Less than
    
    ¥
    5,000
    
    
    ¥
    500Over
    
    
    5,000
    
    
    Less than
    
    
    10,000
    
    
    
    1,000Over
    
    
    10,000
    
    
    Less than
    
    
    20,000
    
    
    
    2,000
  C. Material Contracts.
  D. Exchange Controls.
 Acquisition or Disposition of Shares or ADS
     Dividends and Proceeds of Sale
  99




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##### Table of Contents



E. Taxation.
  
    
    a financial institution;
    
    a regulated investment company;
    
    a real estate investment trust;
    
    a dealer or trader in securities or currencies;
    
    a tax-exempt organization;
    
    an insurance company
    
    a person liable for alternative minimum tax;
    
    a person that actually or constructively owns 10% or more of the voting stock of
Nidec;
    
    a person that holds shares or ADSs as part of a straddle or a hedging or conversion
transaction;
    
    a person who acquired shares or ADSs through the exercise or cancellation of
employee stock options or otherwise as compensation for their services;
    
    a U.S. expatriate; or
    
    a person whose functional currency is not the U.S. dollar.
   
    
    a citizen or resident of the United States;
    
    a domestic corporation;
 100




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##### Table of Contents




    
    an estate whose income is subject to United States federal income tax regardless of
its source; or
    
    a trust if (1) a United States court can exercise primary supervision over the
trusts administration and one or more United States persons are authorized to control
all substantial decisions of the trust or (2) the trust has a valid election in effect
under applicable Treasury regulations to be treated as a U.S. person.
  You
should consult your own tax advisor regarding the United States
federal, state and local and the Japanese and other tax consequences
of owning and disposing of shares and ADSs in your particular
circumstances.
   United States Federal Income Taxation
 Taxation of Dividends
  101




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##### Table of Contents



Taxation of Capital Gains
  PFIC Rules
  Information Reporting and Backup Withholding
  102




---



##### Table of Contents



Japanese Taxation
  
    
    the overall tax consequences of the acquisition, ownership and disposition of shares
or ADSs, including specifically the tax consequences under Japanese law;
    
    the laws of the jurisdiction of which they are resident; and
    
    any tax treaty between Japan and their country of residence, by consulting their own
tax advisers.
    103




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##### Table of Contents



F. Dividends and Paying Agents.
  G. Statement by Experts.
  H. Documents on Display.
  104




---



##### Table of Contents



I. Subsidiary Information.
  105




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##### Table of Contents



Item 11. Quantitative and Qualitative Disclosure About Market Risk.
   Foreign currency exchange rate risk
 Transaction risk
  Translation risk
  Foreign currency risk management
   106




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##### Table of Contents



Foreign currency derivatives at March 31, 2009
 Maturity dateFor the year ending March 312010
    
    2011
    
    2012
    
    2013
    
    2014
    
    Thereafter
    
    Total
    
    Fair Value(Yen in millions)Foreign Exchange Forward ContractsSell U.S. dollars (Buy Yen)Contract amounts (in millions)
    
    ¥
    66
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ¥
    66
    
    
    ¥
    (2
    )Weighted-average contracted forward
Rate (yen per U.S.$1)
    
    
    94.35
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    94.35
 Interest rate risk
   Interest rate risk at March 31, 2009
 Maturity dateFor the year ending March 312010
    
    2011
    
    2012
    
    2013
    
    2014
    
    Thereafter
    
    Total
    
    Fair Value(Yen in millions)Long-term Loan ReceivableFixed RatePrincipal cash flows
    
    
    7
    
    
    
    85
    
    
    
    74
    
    
    
    52
    
    
    
    14
    
    
    
    33
    
    
    
    265
    
    
    
    274Weighted-average
interest rate
    
    
    3.22
    %
    
    
    2.04
    %
    
    
    2.02
    %
    
    
    2.18
    %
    
    
    2.21
    %
    
    
    2.96
    %
    
    
    2.22
    %Floating RatePrincipal cash flows
    
    
    0
    
    
    
    5
    
    
    
    5
    
    
    
    5
    
    
    
    5
    
    
    
    7
    
    
    
    27
    
    
    
    27Weighted-average
interest rate
    
    
    1.49
    %
    
    
    0.36
    %
    
    
    0.52
    %
    
    
    0.67
    %
    
    
    0.82
    %
    
    
    1.54
    %
    
    
    0.87
    %Long-term DebtFixed Rate (long-term loan)Principal cash flows
    
    
    4
    
    
    
    319
    
    
    
    27
    
    
    
    34
    
    
    
    34
    
    
    
    238
    
    
    
    656
    
    
    
    645Weighted-average
interest rate
    
    
    4.10
    %
    
    
    1.44
    %
    
    
    0.34
    %
    
    
    0.28
    %
    
    
    0.29
    %
    
    
    0.33
    %
    
    
    0.89
    %Floating Rate (long-term loan)Principal cash flows
    
    
    0
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    3
    
    
    
    7
    
    
    
    7Weighted-average
interest rate
    
    
    1.98
    %
    
    
    2.15
    %
    
    
    2.31
    %
    
    
    2.46
    %
    
    
    2.61
    %
    
    
    2.99
    %
    
    
    2.65
    %
 107




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##### Table of Contents



Maturity dateFor the year ending March 312010
    
    2011
    
    2012
    
    2013
    
    2014
    
    Thereafter
    
    Total
    
    Fair Value(Yen in millions)Interest Rate Currency SwapsFixed rate paymentsPrincipal cash flows (THB)
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72
    
    
    
    (1
    )Notional amounts
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72Weighted-average
interest rate
    
    
    6.65
    %
    
    
    6.65
    %
    
    
    6.65
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.65
    %Floating rate receivablesPrincipal cash flows (JPY)
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72Notional amounts
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72Weighted-average
interest rate
    
    
    1.30
    %
    
    
    1.30
    %
    
    
    1.17
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.26
    %
 Equity security price risk
    
 Item12. Description of Securities Other Than Equity Securities.
  
 PART II
 
 Item 13. Defaults, Dividend Arrearages and Delinquencies.
  
 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds.
  108




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Item 15. Controls and Procedures.
 Disclosure Controls and Procedures
  Managements Report on Internal Control over Financial Reporting
      Managements Consideration of Related Party Loan
   109




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Changes in Internal Control over Financial Reporting
  110




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Item 16A. Audit Committee Financial Expert.
  
 Item 16B. Code of Ethics.
  
 Item 16C. Principal Accountant Fees and Services.
 Principal Independent Registered Public Accounting Firm Audit Fees and Services Fees
  U.S. dollars inYen in millions
    
    thousandsFor the year ended March 31,
    
    For the year endedType of Fee
    
    2008
    
    2009
    
    March 31, 2009Audit Fees (1)
    
    ¥
    796
    
    
    ¥
    814
    
    
    $
    8,287Audit
Related Fees (2)
    
    
    11
    
    
    
    5
    
    
    
    51Tax Fees (3)
    
    
    18
    
    
    
    27
    
    
    
    275All Other Fees (4)
    
    
    0
    
    
    
    14
    
    
    
    142Total
    
    ¥
    825
    
    
    ¥
    860
    
    
    $
    8,755
 
 (1)
    
    Audit fees consist of fees for professional services provided in connection with
the audit of our annual financial statements and review of our quarterly financial
statements and audit services provided in connection with other statutory or regulatory
filings.(2)
    
    Audit related fees are fees for assurance and related services that were reasonably
related to the performance of the audit or review of our financial statements and were
not otherwise included in Audit Fees. This includes fees for audits of employee benefit
plans, due diligence related to mergers and acquisitions, attestations that are not
required by statute or regulation, and consulting on financial accounting and reporting
standards.(3)
    
    Tax fees represent fees for professional services for tax compliance, tax advice
and tax planning.(4)
    
    All other fees include fees for products and services provided other than the
services reported above.
   111




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##### Table of Contents



Item 16D. Exemptions from the Listing Standards for Audit Committees.
  (a)
    
    The Board of Corporate Auditors is established, and its members are
selected, pursuant to Japanese law expressly requiring such a board for Japanese
companies that elect to have a corporate governance system with corporate auditors.(b)
    
    Japanese law requires the Board of Corporate Auditors to be separate from
the board of directors.(c)
    
    None of the members of the Board of Corporate Auditors is elected by
management, and none of the listed companys executive officers is a member of the
Board of Corporate Auditors.(d)
    
    Japanese law sets forth standards for the independence of the members of
the Board of Corporate Auditors from the listed company or its management.(e)
    
    The Board of Corporate Auditors, in accordance with Japanese law or the
listed companys governing documents, is responsible, to the extent permitted by
Japanese law, for the appointment, retention and oversight of the work of any
registered public accounting firm engaged (including, to the extent permitted by
Japanese law, the resolution of disagreements between management and the auditor
regarding financial reporting) for the purpose of preparing or issuing an audit report
or performing other audit, review or attest services for the listed company, including
its principal accountant which audits its consolidated financial statements included in
its annual reports on Form 20-F.(f)
    
    To the extent permitted by Japanese law:
 
    
    the Board of Corporate Auditors establishes procedures for (i) the
receipt, retention and treatment of complaints received by the listed company
regarding accounting, internal accounting controls, or auditing matters, and (ii)
the confidential, anonymous submission by
 112




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##### Table of Contents



the listed companys employees of concerns regarding questionable accounting or
auditing matters;
 
    
    the Board of Corporate Auditors has the authority to engage
independent counsel and other advisers, as it determines necessary to carry out its
duties; and
    
    the listed company provides for appropriate funding, as determined
by its Board of Corporate Auditors, for payment of (i) compensation to any
registered public accounting firm engaged for the purpose of preparing or issuing
an audit report or performing other audit, review or attest services for the listed
company, (ii) compensation to any advisers employed by the Board of Corporate
Auditors, and (iii) ordinary administrative expenses of the Board of Corporate
Auditors that are necessary or appropriate in carrying out its duties.
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchases.
  Shares
    
    
    SharesShares
    
    
    
    
    
    
    Total number of
    
    
    Maximum numberTotal
    
    
    Yen
    
    
    shares purchased
    
    
    of shares that maynumber
    
    
    Average
    
    
    as part of publicly
    
    
    yet be purchasedof shares
    
    
    price paid
    
    
    announced plans or
    
    
    under the plans orpurchased
    
    
    per share
    
    
    programs
    
    
    programs2008April 1 - 30
    
    
    231
    
    
    ¥
    6,653
    
    
    
    
    
    
    
    1,000,000May 1 - 31
    
    
    108
    
    
    
    7,650
    
    
    
    
    
    
    
    1,000,000June 1 - 30
    
    
    208
    
    
    
    7,949
    
    
    
    
    
    
    
    1,000,000July 1 - 31
    
    
    80
    
    
    
    7,118
    
    
    
    
    
    
    
    1,000,000August 1 - 31
    
    
    347
    
    
    
    7,759
    
    
    
    
    
    
    
    1,000,000September 1- 30
    
    
    634
    
    
    
    7,004
    
    
    
    
    
    
    
    1,000,000October 1 - 31
    
    
    231,780
    
    
    
    3,976
    
    
    
    231,400
    
    
    
    768,600November 1 - 30
    
    
    580,189
    
    
    
    4,084
    
    
    
    580,100
    
    
    
    5,188,500December 1- 31
    
    
    926,846
    
    
    
    3,421
    
    
    
    926,600
    
    
    
    4,261,9002009January 1 - 31
    
    
    494,616
    
    
    
    3,772
    
    
    
    494,500
    
    
    
    3,767,400February 1 - 28
    
    
    3,500,201
    
    
    
    4,410
    
    
    
    3,500,000
    
    
    
    267,400March 1 - 31
    
    
    136
    
    
    
    4,040
    
    
    
    
    
    
    
    267,400Total
    
    
    5,735,376
    
    
    ¥
    4,145
    
    
    
    5,732,600
    
    
    
    267,400
  (1)
    
    A total of 2,776 shares were purchased other than through a publicly announced plan or
program during the fiscal year ended March 31, 2009, due to our purchase of fractional shares
from registered holders of fractional shares at the current market price of those shares. For
an explanation of the rights of such shareholders, see Item 10.B. Additional Information
Memorandum and Articles of Association  Japanese Unit Share System. 113




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##### Table of Contents



(2)
    
    During the fiscal year ended March 31, 2009, the following share repurchase plans or programs
were publicly announced: 
    
    On February 1, 2008, our Board of Directors approved a share
repurchase plan pursuant to which we may purchase from February 4,
2008 to February 3, 2009 up to the lesser of 1,000,000 shares of
common stock or the number of shares equivalent to ¥6.0 billion in
cost of repurchase.
    
    On November 21, 2008, our Board of Directors approved a share
repurchase plan pursuant to which we may purchase from November 25,
2008 to November 24, 2009 up to the lesser of 5,000,000 shares of
common stock or the number of shares equivalent to ¥25.0 billion in
cost of repurchase.
 
 Item 16G. Corporate Governance.
  Director Independence
  Audit Committee
    Compensation, Nominating and Corporate Governance Committees
  114




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##### Table of Contents



Corporate Governance Guidelines
  Code of Business Conduct and Ethics
  Shareholder Approval of Equity-Compensation Plans
   Executive Sessions
  115




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##### Table of Contents



PART III
 
 Item 17. Financial Statements.
  
 Item 18. Financial Statements.
  
 Item 19. Exhibits.
 ExhibitNumber
    
    Description1.1
    
    Articles of Incorporation of Nidec Corporation (English translation)1.2
    
    Share Handling Regulations of Nidec Corporation (English translation)1.3
    
    Regulations of the Board of
Directors of Nidec Corporation (English translation)
(Incorporated by reference to Nidecs annual report on Form 20-F/A for the year ended
March 31, 2008 filed on December 24, 2008.)1.4
    
    Regulations of the Board of Corporate Auditors of Nidec Corporation (English translation)
(Incorporated by reference to Nidecs annual report on Form 20-F/A for the year ended
March 31, 2008 filed on December 24, 2008.)2.1
    
    Form of Deposit Agreement among Nidec Corporation, Morgan Guaranty Trust Company of New
York as Depositary and all owners and holders from time to time of American Depositary
Receipts, including the form of American Depositary Receipt
(Incorporated by reference to the Registration Statement on Form F-6 (file no.
333-13894) filed on September 7, 2001.)4.1
    
    Loan Agreement, dated
December 3, 2008, between Nidec Corporation and S.N. Kohsan
(English translation)8.1
    
    Subsidiaries of Nidec Corporation11.1
    
    Code of Ethics (English translation)12.1
    
    Certification of the Chief Executive Officer required by Rule 13a-14(a)12.2
    
    Certification of the Chief Financial Officer required by Rule 13a-14(a)13.1
    
    Certification of the Chief Executive Officer required by Rule 13a-14(b) and Section 1350
of Chapter 63 of Title 18 of the United States Code13.2
    
    Certification of the Chief Financial Officer required by Rule 13a-14(b) and Section 1350
of Chapter 63 of Title 18 of the United States Code
  116




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##### Table of Contents



SIGNATURES
  NIDEC CORPORATIONBy:
    /s/ Shigenobu NagamoriName:
    Shigenobu NagamoriTitle:
    President, Chief Executive Officer and
Representative Director




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##### Table of Contents



INDEX OF EXHIBITS
 ExhibitNumber
    
    Description1.1
    
    Articles of Incorporation of Nidec Corporation (English translation)1.2
    
    Share Handling Regulations of Nidec Corporation (English translation)1.3
    
    Regulations of the Board of Directors of Nidec Corporation (English translation)

(Incorporated by reference to Nidecs annual report on Form 20-F/A for the year ended
March 31, 2008 filed on December 24, 2008.)1.4
    
    Regulations of the Board of Corporate Auditors of Nidec Corporation (English translation)

(Incorporated by reference to Nidecs annual report on Form 20-F/A for the year ended
March 31, 2008 filed on December 24, 2008.)2.1
    
    Form of Deposit Agreement among Nidec Corporation, Morgan Guaranty Trust Company of New
York as Depositary and all owners and holders from time to time of American Depositary
Receipts, including the form of American Depositary Receipt
(Incorporated by reference to the Registration Statement on Form F-6 (file no.
333-13894) filed on September 7, 2001.)4.1
    
    Loan Agreement, dated
December 3, 2008, between Nidec Corporation and S.N. Kohsan
(English translation)8.1
    
    Subsidiaries of Nidec Corporation11.1
    
    Code of Ethics (English translation)12.1
    
    Certification of the Chief Executive Officer required by Rule 13a-14(a)12.2
    
    Certification of the Chief Financial Officer required by Rule 13a-14(a)13.1
    
    Certification of the Chief Executive Officer required by Rule 13a-14(b) and Section 1350
of Chapter 63 of Title 18 of the United States Code13.2
    
    Certification of the Chief Financial Officer required by Rule 13a-14(b) and Section 1350
of Chapter 63 of Title 18 of the United States Code




---



##### 



NIDEC CORPORATION
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
  
 PageReport of Independent Registered Public Accounting Firm
    
    F-2Consolidated balance sheets at March 31, 2008 and 2009
    
    F-4Consolidated statements of income for the years ended March
31, 2007, 2008 and 2009
    
    F-6Consolidated statements of shareholders equity and
comprehensive income for the years ended March 31, 2007,
2008 and 2009
    
    F-7Consolidated statements of cash flows for the years ended
March 31, 2007, 2008 and 2009
    
    F-9Notes to consolidated financial statements
    
    F-11
  F-1




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
   F-2




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##### Table of Contents



F-3




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
 U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Current assets:Cash and cash equivalents
    
    ¥
    100,809
    
    
    ¥
    200,966
    
    
    $
    2,045,872Trade notes and accounts receivable, net of
allowance for doubtful accounts of ¥795 million on
March 31, 2008 and ¥717 million ($7,299 thousand)
on March 31, 2009:Notes
    
    
    17,205
    
    
    
    11,663
    
    
    
    118,732Accounts
    
    
    148,928
    
    
    
    111,548
    
    
    
    1,135,580Inventories
    
    
    69,818
    
    
    
    57,475
    
    
    
    585,106Other current assets
    
    
    20,238
    
    
    
    20,364
    
    
    
    207,309Total current assets
    
    
    356,998
    
    
    
    402,016
    
    
    
    4,092,599Marketable securities and other securities investments
    
    
    15,273
    
    
    
    13,344
    
    
    
    135,844Investments in and advances to affiliated companies
    
    
    2,102
    
    
    
    1,549
    
    
    
    15,77017,375
    
    
    
    14,893
    
    
    
    151,614Property, plant and equipment:Land
    
    
    39,389
    
    
    
    39,386
    
    
    
    400,957Buildings
    
    
    110,258
    
    
    
    112,934
    
    
    
    1,149,690Machinery and equipment
    
    
    264,019
    
    
    
    255,887
    
    
    
    2,604,977Construction in progress
    
    
    11,309
    
    
    
    11,835
    
    
    
    120,483424,975
    
    
    
    420,042
    
    
    
    4,276,107Less  Accumulated depreciation
    
    
    (226,146
    )
    
    
    (230,357
    )
    
    
    (2,345,078
    )198,829
    
    
    
    189,685
    
    
    
    1,931,029Goodwill
    
    
    71,223
    
    
    
    71,060
    
    
    
    723,404Other non-current assets, net of allowance for
doubtful accounts of ¥1,451 million on March 31, 2008
and ¥1,594 million ($16,227 thousand) on March 31,
2009
    
    
    27,289
    
    
    
    25,230
    
    
    
    256,846Total assets
    
    ¥
    671,714
    
    
    ¥
    702,884
    
    
    $
    7,155,492
  F-4




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS EQUITY
 U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Current liabilities:Short-term borrowings
    
    ¥
    68,854
    
    
    ¥
    221,342
    
    
    $
    2,253,303Current portion of long-term debt
    
    
    29,196
    
    
    
    1,883
    
    
    
    19,169Trade notes and accounts payable
    
    
    121,698
    
    
    
    70,398
    
    
    
    716,665Other current liabilities
    
    
    33,351
    
    
    
    24,120
    
    
    
    245,547Total current liabilities
    
    
    253,099
    
    
    
    317,743
    
    
    
    3,234,684Long-term liabilities:Long-term debt
    
    
    3,430
    
    
    
    2,578
    
    
    
    26,245Accrued pension and severance costs
    
    
    14,953
    
    
    
    15,684
    
    
    
    159,666Other long-term liabilities
    
    
    12,462
    
    
    
    9,192
    
    
    
    93,576Total long-term liabilities
    
    
    30,845
    
    
    
    27,454
    
    
    
    279,487Minority interest in consolidated subsidiaries
    
    
    68,186
    
    
    
    60,539
    
    
    
    616,298Commitments and contingencies (Note 23 and 24)Shareholders equity:Common stock authorized 2008 and 2009: 480,000,000
shares; issued and outstanding:2008- 144,987,492 shares /
2009- 145,075,080 shares
    
    
    66,248
    
    
    
    66,551
    
    
    
    677,502Additional paid-in capital
    
    
    68,859
    
    
    
    69,162
    
    
    
    704,082Retained earnings
    
    
    193,407
    
    
    
    212,955
    
    
    
    2,167,922Accumulated other comprehensive income:Foreign currency translation adjustments
    
    
    (10,233
    )
    
    
    (26,324
    )
    
    
    (267,983
    )Unrealized gains (losses) on securities
    
    
    1,016
    
    
    
    (417
    )
    
    
    (4,245
    )Pension liability adjustments
    
    
    568
    
    
    
    (723
    )
    
    
    (7,360
    )Treasury stock, at cost:2008- 47,495 shares /
2009- 5,782,871 shares
    
    
    (281
    )
    
    
    (24,056
    )
    
    
    (244,895
    )Total shareholders equity
    
    
    319,584
    
    
    
    297,148
    
    
    
    3,025,023Total liabilities and shareholders equity
    
    ¥
    671,714
    
    
    ¥
    702,884
    
    
    $
    7,155,492
  F-5




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119Operating expenses:Cost of products sold
    
    
    471,325
    
    
    
    571,337
    
    
    
    482,893
    
    
    
    4,915,942Selling, general and administrative expenses
    
    
    45,409
    
    
    
    50,168
    
    
    
    51,795
    
    
    
    527,283Research and development expenses
    
    
    31,981
    
    
    
    29,709
    
    
    
    26,964
    
    
    
    274,499548,715
    
    
    
    651,214
    
    
    
    561,652
    
    
    
    5,717,724Operating income
    
    
    65,936
    
    
    
    77,542
    
    
    
    51,806
    
    
    
    527,395Other income (expense):Interest and dividend income
    
    
    2,501
    
    
    
    2,869
    
    
    
    2,543
    
    
    
    25,888Interest expense
    
    
    (1,976
    )
    
    
    (2,369
    )
    
    
    (1,404
    )
    
    
    (14,293
    )Foreign exchange gain (loss), net
    
    
    1,815
    
    
    
    (13,218
    )
    
    
    (3,688
    )
    
    
    (37,545
    )Gain (loss) from marketable securities, net
    
    
    943
    
    
    
    454
    
    
    
    (1,305
    )
    
    
    (13,285
    )Other, net
    
    
    (1,605
    )
    
    
    (1,023
    )
    
    
    (923
    )
    
    
    (9,396
    )1,678
    
    
    
    (13,287
    )
    
    
    (4,777
    )
    
    
    (48,631
    )Income from continuing operations before
income taxes
    
    
    67,614
    
    
    
    64,255
    
    
    
    47,029
    
    
    
    478,764Income taxes
    
    
    (17,945
    )
    
    
    (15,930
    )
    
    
    (12,464
    )
    
    
    (126,886
    )Income from continuing operations before
minority interest and equity in earnings of
affiliated companies
    
    
    49,669
    
    
    
    48,325
    
    
    
    34,565
    
    
    
    351,878Minority interest in income of consolidated
subsidiaries
    
    
    8,816
    
    
    
    6,485
    
    
    
    3,777
    
    
    
    38,450Equity in net losses (income) of affiliated
companies
    
    
    73
    
    
    
    (39
    )
    
    
    48
    
    
    
    489Income from continuing operations
    
    
    40,780
    
    
    
    41,879
    
    
    
    30,740
    
    
    
    312,939Loss on discontinued operations
    
    
    (848
    )
    
    
    (723
    )
    
    
    (2,387
    )
    
    
    (24,300
    )Net income
    
    ¥
    39,932
    
    
    ¥
    41,156
    
    
    ¥
    28,353
    
    
    $
    288,639Yen
    
    
    U.S. dollarsPer share data:Earning per share  basicIncome from continuing operations
    
    ¥
    281.89
    
    
    ¥
    288.99
    
    
    ¥
    214.04
    
    
    $
    2.18Loss on discontinued operations
    
    
    (5.86
    )
    
    
    (4.99
    )
    
    
    (16.62
    )
    
    
    (0.17
    )Net income
    
    
    276.03
    
    
    
    284.00
    
    
    
    197.42
    
    
    
    2.01Earning per share  dilutedIncome from continuing operations
    
    ¥
    273.95
    
    
    ¥
    281.14
    
    
    ¥
    210.49
    
    
    $
    2.14Loss on discontinued operations
    
    
    (5.70
    )
    
    
    (4.85
    )
    
    
    (16.37
    )
    
    
    (0.16
    )Net income
    
    
    268.25
    
    
    
    276.29
    
    
    
    194.12
    
    
    
    1.98Cash dividends
    
    ¥
    40.00
    
    
    ¥
    50.00
    
    
    ¥
    60.00
    
    
    $
    0.61
  F-6




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
AND COMPREHENSIVE INCOME
 Yen in millionsAccumulatedAdditional
    
    
    
    
    
    
    other
    
    
    TreasuryCommon stock
    
    
    paid-in
    
    
    Retained
    
    
    comprehensive
    
    
    stock,Shares
    
    
    Amount
    
    
    capital
    
    
    earnings
    
    
    income (loss)
    
    
    at cost
    
    
    TotalBalance at March 31, 2006
    
    
    144,661,292
    
    
    ¥
    65,649
    
    
    ¥
    68,240
    
    
    ¥
    126,334
    
    
    ¥
    3,673
    
    
    ¥
    (237
    )
    
    ¥
    263,659Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,932
    
    
    
    
    
    
    
    
    
    
    
    39,932Other comprehensive income (loss):Foreign currency translation
adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,949
    
    
    
    
    
    
    
    6,949Unrealized gains from securities,
net of reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (539
    )
    
    
    
    
    
    
    (539
    )Minimum pension liability adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    
    
    
    
    (25
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,317Adjustment to initially apply SFAS No.
158, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    403
    
    
    
    
    
    
    
    403Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,720Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,786
    )
    
    
    
    
    
    
    
    
    
    
    (5,786
    )Exercise of stock option
    
    
    119,200
    
    
    
    219
    
    
    
    234
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    453Issuance cost of new stock
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    (25
    )Balance at March 31, 2007
    
    
    144,780,492
    
    
    ¥
    65,868
    
    
    ¥
    68,469
    
    
    ¥
    160,480
    
    
    ¥
    10,461
    
    
    ¥
    (262
    )
    
    ¥
    305,016Cumulative effect resulting from the
adoption of FIN No. 48
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (987
    )
    
    
    
    
    
    
    
    
    
    
    (987
    )Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    41,156
    
    
    
    
    
    
    
    
    
    
    
    41,156Other comprehensive income (loss):Foreign currency translation
adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17,107
    )
    
    
    
    
    
    
    (17,107
    )Unrealized losses on securities,
net of reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,308
    )
    
    
    
    
    
    
    (2,308
    )Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    305
    
    
    
    
    
    
    
    305Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,046Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,242
    )
    
    
    
    
    
    
    
    
    
    
    (7,242
    )Exercise of stock option
    
    
    207,000
    
    
    
    380
    
    
    
    390
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    770Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19
    )
    
    
    (19
    )Balance at March 31, 2008
    
    
    144,987,492
    
    
    ¥
    66,248
    
    
    ¥
    68,859
    
    
    ¥
    193,407
    
    
    ¥
    (8,649
    )
    
    ¥
    (281
    )
    
    ¥
    319,584
 F-7




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
AND COMPREHENSIVE INCOME
(continued)
 Yen in millionsAccumulatedAdditional
    
    
    
    
    
    other
    
    TreasuryCommon stock
    
    Paid-in
    
    Retained
    
    comprehensive
    
    stock,
    
    Loan toShares
    
    Amount
    
    capital
    
    earnings
    
    loss
    
    at cost
    
    shareholder
    
    TotalBalance at March 31, 2008
    
    
    144,987,492
    
    
    ¥
    66,248
    
    
    ¥
    68,859
    
    
    ¥
    193,407
    
    
    ¥
    (8,649
    )
    
    ¥
    (281
    )
    
    ¥
    
    
    
    ¥
    319,584Adjustment to apply the measurement date
provision of SFAS No. 158, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (106
    )
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (111
    )Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,353
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,353Other comprehensive income (loss):Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,091
    )
    
    
    
    
    
    
    
    
    
    
    (16,091
    )Unrealized losses on securities, net of
reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,433
    )
    
    
    
    
    
    
    
    
    
    
    (1,433
    )Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,286
    )
    
    
    
    
    
    
    
    
    
    
    (1,286
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,543Dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,699
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,699
    )Conversion of convertible debt
    
    
    87,588
    
    
    
    303
    
    
    
    303
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    606Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23,775
    )
    
    
    
    
    
    
    (23,775
    )Payment for loan to shareholder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,500
    )
    
    
    (14,500
    )Collection of loan to shareholder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,500
    
    
    
    14,500Balance at March 31, 2009
    
    
    145,075,080
    
    
    ¥
    66,551
    
    
    ¥
    69,162
    
    
    ¥
    212,955
    
    
    ¥
    (27,464
    )
    
    ¥
    (24,056
    )
    
    ¥
    
    
    
    ¥
    297,148U.S. dollars in thousandsAccumulatedother
    
    TreasuryAdditional
    
    Retained
    
    comprehensive
    
    stock, at
    
    Loan toCommon stock
    
    paid-in capital
    
    earnings
    
    loss
    
    cost
    
    shareholder
    
    TotalBalance at March 31, 2008
    
    $
    674,417
    
    
    $
    700,997
    
    
    $
    1,968,919
    
    
    $
    (88,048
    )
    
    $
    (2,861
    )
    
    $
    
    
    
    $
    3,253,424Adjustment to apply the measurement date
provision of SFAS No. 158, net of tax
    
    
    
    
    
    
    
    
    
    
    (1,079
    )
    
    
    (51
    )
    
    
    
    
    
    
    
    
    
    
    (1,130
    )Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    288,639
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    288,639Other comprehensive income (loss):Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (163,809
    )
    
    
    
    
    
    
    
    
    
    
    (163,809
    )Unrealized losses on securities, net of
reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,588
    )
    
    
    
    
    
    
    
    
    
    
    (14,588
    )Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,092
    )
    
    
    
    
    
    
    
    
    
    
    (13,092
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    97,150Dividends paid
    
    
    
    
    
    
    
    
    
    
    (88,557
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (88,557
    )Conversion of convertible debt
    
    
    3,085
    
    
    
    3,085
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,170Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (242,034
    )
    
    
    
    
    
    
    (242,034
    )Payment for loan to shareholder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (147,613
    )
    
    
    (147,613
    )Collection of loan to shareholder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147,613
    
    
    
    147,613Balance at March 31, 2009
    
    $
    677,502
    
    
    $
    704,082
    
    
    $
    2,167,922
    
    
    $
    (279,558
    )
    
    $
    (244,895
    )
    
    $
    
    
    
    $
    3,025,023
  F-8




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Cash flows from operating activities:Net income
    
    ¥
    39,932
    
    
    ¥
    41,156
    
    
    ¥
    28,353
    
    
    $
    288,639Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation
    
    
    29,997
    
    
    
    36,334
    
    
    
    32,147
    
    
    
    327,263Amortization
    
    
    690
    
    
    
    1,638
    
    
    
    1,933
    
    
    
    19,678(Gain) loss from marketable securities, net
    
    
    (943
    )
    
    
    (454
    )
    
    
    1,305
    
    
    
    13,285Loss on sales, disposal or impairment of property,
plant and equipment
    
    
    1,737
    
    
    
    1,636
    
    
    
    1,282
    
    
    
    13,051Deferred income taxes
    
    
    (995
    )
    
    
    2,065
    
    
    
    1,085
    
    
    
    11,046Minority interest in income of consolidated subsidiaries
    
    
    8,130
    
    
    
    6,082
    
    
    
    2,882
    
    
    
    29,339Equity in net losses (income) of affiliated companies
    
    
    73
    
    
    
    (39
    )
    
    
    48
    
    
    
    489Foreign currency adjustments
    
    
    368
    
    
    
    8,305
    
    
    
    2,091
    
    
    
    21,287Accrual for pension and severance costs, net payments
    
    
    (1,908
    )
    
    
    (1,551
    )
    
    
    366
    
    
    
    3,726Changes in operating assets and liabilities:(Increase) decrease in notes and accounts receivable
    
    
    (10,414
    )
    
    
    26
    
    
    
    38,041
    
    
    
    387,264Decrease (increase) in inventories
    
    
    1,805
    
    
    
    (5,575
    )
    
    
    11,238
    
    
    
    114,405(Decrease) increase in notes and accounts payable
    
    
    (4,223
    )
    
    
    5,949
    
    
    
    (46,469
    )
    
    
    (473,063
    )Increase (decrease) in accrued income taxes
    
    
    2,491
    
    
    
    (3,601
    )
    
    
    (3,631
    )
    
    
    (36,964
    )Other
    
    
    (2,017
    )
    
    
    2,845
    
    
    
    (4,440
    )
    
    
    (45,201
    )Net cash provided by operating activities
    
    ¥
    64,723
    
    
    ¥
    94,816
    
    
    ¥
    66,231
    
    
    $
    674,244
  F-9




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##### Table of Contents



NIDEC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Cash flows from investing activities:Additions to property, plant and equipment
    
    ¥
    (39,144
    )
    
    ¥
    (35,660
    )
    
    ¥
    (38,501
    )
    
    $
    (391,948
    )Proceeds from sales of property, plant and equipment
    
    
    1,089
    
    
    
    2,010
    
    
    
    865
    
    
    
    8,806Purchases of marketable securities
    
    
    (4
    )
    
    
    (231
    )
    
    
    (3,609
    )
    
    
    (36,740
    )Proceeds from sales of marketable securities
    
    
    1,071
    
    
    
    2,761
    
    
    
    76
    
    
    
    774Acquisitions of consolidated subsidiaries, net of
cash acquired
    
    
    (25,322
    )
    
    
    (2,619
    )
    
    
    (756
    )
    
    
    (7,696
    )Payments for additional investments in subsidiaries
    
    
    (16,588
    )
    
    
    (8,043
    )
    
    
    (9,286
    )
    
    
    (94,533
    )Other
    
    
    (37
    )
    
    
    (1,942
    )
    
    
    (1,448
    )
    
    
    (14,742
    )Net cash used in investing activities
    
    
    (78,935
    )
    
    
    (43,724
    )
    
    
    (52,659
    )
    
    
    (536,079
    )Cash flows from financing activities:Increase (decrease) in short-term borrowings
    
    
    22,649
    
    
    
    (15,123
    )
    
    
    153,934
    
    
    
    1,567,077Proceeds from issuance of long-term debt
    
    
    
    
    
    
    137
    
    
    
    384
    
    
    
    3,909Repayments of long-term debt
    
    
    (6,696
    )
    
    
    (3,966
    )
    
    
    (2,067
    )
    
    
    (21,042
    )Redemption of corporate bonds
    
    
    
    
    
    
    
    
    
    
    (26,412
    )
    
    
    (268,879
    )Proceeds from issuance of new shares
    
    
    438
    
    
    
    761
    
    
    
    
    
    
    
    Purchases of treasury stock
    
    
    (25
    )
    
    
    (19
    )
    
    
    (23,775
    )
    
    
    (242,034
    )Payment for loan to shareholder
    
    
    
    
    
    
    
    
    
    
    (14,500
    )
    
    
    (147,613
    )Collection of loan to shareholder
    
    
    
    
    
    
    
    
    
    
    14,500
    
    
    
    147,613Dividends paid
    
    
    (5,786
    )
    
    
    (7,242
    )
    
    
    (8,699
    )
    
    
    (88,557
    )Other
    
    
    (1,637
    )
    
    
    (1,828
    )
    
    
    (2,205
    )
    
    
    (22,448
    )Net cash provided by (used in) financing
activities
    
    
    8,943
    
    
    
    (27,280
    )
    
    
    91,160
    
    
    
    928,026Effect of exchange rate changes on cash and cash
equivalents
    
    
    1,974
    
    
    
    (11,787
    )
    
    
    (4,575
    )
    
    
    (46,574
    )Net (decrease) increase in cash and cash equivalents
    
    
    (3,295
    )
    
    
    12,025
    
    
    
    100,157
    
    
    
    1,019,617Cash and cash equivalents at beginning of year
    
    
    92,079
    
    
    
    88,784
    
    
    
    100,809
    
    
    
    1,026,255Cash and cash equivalents at end of year
    
    ¥
    88,784
    
    
    ¥
    100,809
    
    
    ¥
    200,966
    
    
    $
    2,045,872
  F-10




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Nature of operations:
   2. Summary of significant accounting policies:
  Estimates

  F-11




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Basis
of consolidation and accounting for investments in affiliated
companies 
    Translation of foreign currencies 
   Cash and cash equivalents 
  F-12




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Inventories 
  Marketable securities 
  Derivative financial instruments 
  Property, plant and equipment 
   F-13




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Lease
  Goodwill 
  Long-lived assets 
  Revenue recognition 
  F-14




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Research and development expenses
  Advertising costs 
  Income taxes 
   Earnings per share 
  Other comprehensive income 
  Stock-based compensation
  F-15




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Reclassification
   Accounting Changes
     F-16




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
   Recent Accounting Pronouncements to be adopted in future periods
    F-17




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
   3. U.S. dollar amounts:
  4. Acquisitions and dispositions:
   F-18




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
        F-19




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Yen in millionsFor the year endedMarch 31(Unaudited)2007
    
    2008Pro forma net sales
    
    ¥
    697,505
    
    
    ¥
    745,006Pro forma net income
    
    
    37,260
    
    
    
    40,684
 YenPro forma net income per common share basic
    
    ¥
    257.56
    
    
    ¥
    280.75 diluted
    
    
    250.30
    
    
    
    273.12
  Yen in millionsFor the year ended March 31, 2007NMA
    
    
    FSKC
    
    
    NBC
    
    
    TOTALCash and cash equivalents
    
    ¥
    3,681
    
    
    ¥
    346
    
    
    ¥
    924
    
    
    ¥
    4,951Accounts receivable
    
    
    6,043
    
    
    
    1,681
    
    
    
    1,598
    
    
    
    9,322Inventories
    
    
    1,901
    
    
    
    1,348
    
    
    
    1,241
    
    
    
    4,490Other current assets
    
    
    787
    
    
    
    551
    
    
    
    679
    
    
    
    2,017Property, plant and equipment
    
    
    8,923
    
    
    
    1,324
    
    
    
    5,984
    
    
    
    16,231Goodwill
    
    
    6,772
    
    
    
    1,987
    
    
    
    8,134
    
    
    
    16,893Other non-current assets
    
    
    10,688
    
    
    
    478
    
    
    
    1,400
    
    
    
    12,566Total assets acquired
    
    
    38,795
    
    
    
    7,715
    
    
    
    19,960
    
    
    
    66,470Short-term borrowings and
current portion of long-term
debt
    
    
    (7,936
    )
    
    
    (2,222
    )
    
    
    (2,599
    )
    
    
    (12,757
    )Accounts payable
    
    
    (5,303
    )
    
    
    (1,647
    )
    
    
    (650
    )
    
    
    (7,600
    )Other current liabilities
    
    
    (2,048
    )
    
    
    (391
    )
    
    
    (1,507
    )
    
    
    (3,946
    )Long-term debt
    
    
    (176
    )
    
    
    (1,951
    )
    
    
    (550
    )
    
    
    (2,677
    )Other non-current liabilities
    
    
    (7,622
    )
    
    
    (473
    )
    
    
    (150
    )
    
    
    (8,245
    )Total liabilities assumed
    
    
    (23,085
    )
    
    
    (6,684
    )
    
    
    (5,456
    )
    
    
    (35,225
    )Minority interest
    
    
    
    
    
    
    (0
    )
    
    
    (972
    )
    
    
    (972
    )Purchase price
    
    
    15,710
    
    
    
    1,031
    
    
    
    13,532
    
    
    
    30,273Cash acquired
    
    
    (3,681
    )
    
    
    (346
    )
    
    
    (924
    )
    
    
    (4,951
    )Net cash paid
    
    ¥
    12,029
    
    
    ¥
    685
    
    
    ¥
    12,608
    
    
    ¥
    25,322
 F-20




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  Yen in millionsNMA
    
    
    NBC
    
    
    TOTALInventories
    
    ¥
    
    
    
    ¥
    176
    
    
    ¥
    176Property, plant and equipment
    
    
    1,265
    
    
    
    585
    
    
    
    1,850Goodwill
    
    
    (995
    )
    
    
    (652
    )
    
    
    (1,647
    )Other non-current assets
    
    
    (213
    )
    
    
    9
    
    
    
    (204
    )Total assets acquired
    
    
    57
    
    
    
    118
    
    
    
    175Other non-current liabilities
    
    
    (57
    )
    
    
    (118
    )
    
    
    (175
    )Total liabilities assumed
    
    ¥
    (57
    )
    
    ¥
    (118
    )
    
    ¥
    (175
    )
  Yen in millionsFor the yearendedMarch 31,2008NSRVCash and cash equivalents
    
    ¥
    2,191Accounts receivable
    
    
    9,018Inventories
    
    
    4,189Other current assets
    
    
    1,201Property, plant and equipment
    
    
    6,752Goodwill
    
    
    572Other non-current assets
    
    
    1,900Total assets acquired
    
    
    25,823Short-term borrowings and current portion of long-term
debt
    
    
    (6,126
    )Accounts payable
    
    
    (5,499
    )Other current liabilities
    
    
    (1,998
    )Long-term debt
    
    
    (619
    )Other non-current liabilities
    
    
    (3,019
    )Total liabilities assumed
    
    
    (17,261
    )Minority interest
    
    
    (3,752
    )Purchase price
    
    
    4,810Cash acquired
    
    
    (2,191
    )Net cash paid
    
    ¥
    2,619
 F-21




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  Yen in millionsMarch 31,2007
    
    
    2008NSRV
    
    
    
    
    
    ¥
    486NMA
    
    ¥
    6,772
    
    
    
    All others
    
    
    10,121
    
    
    
    86¥
    16,893
    
    
    ¥
    572
  Years
    
    
    Yen in millionsweighted average
    
    
    March 31, 2007amortization
    
    
    Gross carryingperiod
    
    
    amountsProprietary technology
    
    
    10
    
    
    ¥
    2,364Customer relationships
    
    
    12
    
    
    
    7,277Other
    
    
    2 to 10
    
    
    
    360Total
    
    
    
    
    
    ¥
    10,001
  Years
    
    
    Yen in millionsweighted average
    
    
    March 31, 2008amortization
    
    
    Gross carryingperiod
    
    
    amountsPatent rights
    
    
    8
    
    
    ¥
    86Proprietary technology
    
    
    20
    
    
    
    50Customer relationships
    
    
    1
    
    
    
    6Other
    
    
    6
    
    
    
    4Total
    
    
    
    
    
    ¥
    146
  F-22




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 5. Goodwill and other intangible assets
  U.S dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Gross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    Grosscarrying
    
    
    Accumulated
    
    
    carrying
    
    
    Accumulated
    
    
    carrying
    
    
    Accumulatedamounts
    
    
    amortization
    
    
    amounts
    
    
    amortization
    
    
    amounts
    
    
    amortizationPatent rights
    
    ¥
    564
    
    
    ¥
    180
    
    
    ¥
    507
    
    
    ¥
    232
    
    
    $
    5,161
    
    
    $
    2,362Proprietary
technology
    
    
    2,422
    
    
    
    298
    
    
    
    1,959
    
    
    
    433
    
    
    
    19,943
    
    
    
    4,408Customer
relationships
    
    
    7,095
    
    
    
    799
    
    
    
    5,600
    
    
    
    1,103
    
    
    
    57,009
    
    
    
    11,229Software
    
    
    5,408
    
    
    
    2,084
    
    
    
    6,297
    
    
    
    2,480
    
    
    
    64,105
    
    
    
    25,247Other
    
    
    1,541
    
    
    
    537
    
    
    
    1,422
    
    
    
    585
    
    
    
    14,476
    
    
    
    5,955Total
    
    ¥
    17,030
    
    
    ¥
    3,898
    
    
    ¥
    15,785
    
    
    ¥
    4,833
    
    
    $
    160,694
    
    
    $
    49,201
     Yen in
    
    
    U.S dollarsmillions
    
    
    in thousandsYears ending March 31,2010
    
    ¥
    1,807
    
    
    $
    18,3962011
    
    
    1,667
    
    
    
    16,9702012
    
    
    1,499
    
    
    
    15,2602013
    
    
    1,376
    
    
    
    14,0082014
    
    ¥
    1,116
    
    
    $
    11,361
   F-23




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
    U.S dollarsYen in millions
    
    
    in thousandsMarch 31,
    
    
    March 31,2008
    
    
    2009
    
    
    2009NSNK
    
    ¥
    20,925
    
    
    ¥
    22,445
    
    
    $
    228,494NCPL
    
    
    13,289
    
    
    
    13,223
    
    
    
    134,613NTSC
    
    
    829
    
    
    
    816
    
    
    
    8,307NCEL
    
    
    4,346
    
    
    
    4,564
    
    
    
    46,462NSRV
    
    
    1,367
    
    
    
    1,384
    
    
    
    14,089NSBC
    
    
    1,240
    
    
    
    1,240
    
    
    
    12,623NSCJ
    
    
    1,280
    
    
    
    1,280
    
    
    
    13,031NMA
    
    
    5,942
    
    
    
    5,293
    
    
    
    53,884NNSN
    
    
    738
    
    
    
    820
    
    
    
    8,348All others
    
    
    21,267
    
    
    
    19,995
    
    
    
    203,553¥
    71,223
    
    
    ¥
    71,060
    
    
    $
    723,404
  U.S dollarsYen in millions
    
    
    in thousands2008
    
    
    2009
    
    
    2009Balance as of April 1
    
    ¥
    67,780
    
    
    ¥
    71,223
    
    
    $
    725,064Acquisition
    
    
    572
    
    
    
    439
    
    
    
    4,469Acquisition of minority interests
    
    
    4,518
    
    
    
    2,245
    
    
    
    22,854Purchase price allocation adjustments
    
    
    (1,647
    )
    
    
    
    
    
    
    Impairment loss
    
    
    
    
    
    
    (357
    )
    
    
    (3,634
    )Disposition
    
    
    
    
    
    
    (5
    )
    
    
    (51
    )Translation adjustments
    
    
    
    
    
    
    (2,485
    )
    
    
    (25,298
    )Balance as of March 31
    
    ¥
    71,223
    
    
    ¥
    71,060
    
    
    $
    723,404
 6. Supplemental cash flow information:
   F-24




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
      7. Allowance for doubtful accounts:
   U.S. dollarsYen in millions
    
    
    in thousands2007
    
    
    2008
    
    
    2009
    
    
    2009Allowance for doubtful accounts
at April 1
    
    ¥
    2,184
    
    
    ¥
    2,163
    
    
    ¥
    2,246
    
    
    $
    22,865Provision for doubtful
accounts, net of reversal
    
    
    117
    
    
    
    312
    
    
    
    349
    
    
    
    3,552Write-offs
    
    
    (375
    )
    
    
    (149
    )
    
    
    (273
    )
    
    
    (2,779
    )Acquisition and other
    
    
    229
    
    
    
    95
    
    
    
    (4
    )
    
    
    (41
    )Translation adjustment and other
    
    
    8
    
    
    
    (175
    )
    
    
    (7
    )
    
    
    (71
    )Allowance for doubtful accounts
at March 31
    
    ¥
    2,163
    
    
    ¥
    2,246
    
    
    ¥
    2,311
    
    
    $
    23,526
 F-25




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 8. Inventories:
  U.S. dollarsYen in millions
    
    
    In thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Finished goods
    
    ¥
    32,735
    
    
    ¥
    26,521
    
    
    $
    269,989Raw materials
    
    
    17,849
    
    
    
    13,004
    
    
    
    132,383Work in process
    
    
    16,164
    
    
    
    14,567
    
    
    
    148,295Project in progress
    
    
    816
    
    
    
    1,124
    
    
    
    11,442Supplies and other
    
    
    2,254
    
    
    
    2,259
    
    
    
    22,997¥
    69,818
    
    
    ¥
    57,475
    
    
    $
    585,106
 9. Other current assets:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Deferred tax assets (Note 18)
    
    ¥
    6,896
    
    
    ¥
    7,409
    
    
    $
    75,425Other receivable
    
    
    4,271
    
    
    
    5,741
    
    
    
    58,444Time deposit
    
    
    3,851
    
    
    
    2,932
    
    
    
    29,848Other
    
    
    5,220
    
    
    
    4,282
    
    
    
    43,592¥
    20,238
    
    
    ¥
    20,364
    
    
    $
    207,309
  F-26




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 10. Marketable securities and other securities investments:
  Yen in millionsMarch 31, 2008Gross
    
    
    Grossunrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    valueAvailable-for-saleEquity securities
    
    ¥
    6,239
    
    
    ¥
    7,663
    
    
    ¥
    291
    
    
    ¥
    13,611Held-to-maturityJapanese government debt securities
    
    
    100
    
    
    
    
    
    
    
    
    
    
    
    100¥
    6,339
    
    
    ¥
    7,663
    
    
    ¥
    291
    
    
    ¥
    13,711Securities not practicable to fair
valueEquity securities
    
    ¥
    1,562Yen in millionsMarch 31, 2009Gross
    
    
    Grossunrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    valueAvailable-for-saleEquity securities
    
    ¥
    9,285
    
    
    ¥
    3,502
    
    
    ¥
    656
    
    
    ¥
    12,131Held-to-maturityJapanese government debt securities
    
    
    201
    
    
    
    
    
    
    
    
    
    
    
    201¥
    9,486
    
    
    ¥
    3,502
    
    
    ¥
    656
    
    
    ¥
    12,332Securities not practicable to fair valueEquity securities
    
    ¥
    1,012U.S. dollars in thousandsMarch 31, 2009Gross
    
    
    Grossunrealized
    
    
    unrealized
    
    
    FairCost
    
    
    gains
    
    
    losses
    
    
    valueAvailable-for-saleEquity securities
    
    $
    94,523
    
    
    $
    35,651
    
    
    $
    6,678
    
    
    $
    123,496Held-to-maturityJapanese government debt securities
    
    
    2,046
    
    
    
    
    
    
    
    
    
    
    
    2,046$
    96,569
    
    
    $
    35,651
    
    
    $
    6,678
    
    
    $
    125,542Securities not practicable to fair valueEquity securities
    
    $
    10,302
 F-27




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
       Yen in millions
    
    
    Yen in millionsLess than 12 months
    
    
    12 months or moreFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealizedvalue
    
    
    loss
    
    
    value
    
    
    lossEquity securities
    
    ¥
    1,950
    
    
    ¥
    468
    
    
    ¥
    552
    
    
    ¥
    188
 F-28




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollars in thousands
    
    
    U.S. dollars in thousandsLess than 12 months
    
    
    12 months or moreFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealizedvalue
    
    
    loss
    
    
    value
    
    
    lossEquity securities
    
    $
    19,851
    
    
    $
    4,764
    
    
    $
    5,619
    
    
    $
    1,914
  11. Investments in and transactions with affiliated companies:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Current assets
    
    ¥
    6,573
    
    
    ¥
    3,659
    
    
    $
    37,249Non-current assets
    
    
    7,424
    
    
    
    4,844
    
    
    
    49,313Total assets
    
    ¥
    13,997
    
    
    ¥
    8,503
    
    
    $
    86,562Current liabilities
    
    ¥
    8,889
    
    
    ¥
    5,029
    
    
    $
    51,196Long-term liabilities
    
    
    25
    
    
    
    
    
    
    
    Shareholders equity
    
    
    5,083
    
    
    
    3,474
    
    
    
    35,366Total liabilities and shareholders equity
    
    ¥
    13,997
    
    
    ¥
    8,503
    
    
    $
    86,562NIDECs share of shareholders equity
    
    ¥
    1,932
    
    
    ¥
    1,390
    
    
    $
    14,150NIDECs investment in equity-method affiliates
    
    ¥
    1,946
    
    
    ¥
    1,158
    
    
    $
    11,789Loan receivable from affiliated companies
    
    ¥
    156
    
    
    ¥
    122
    
    
    $
    1,242Number of affiliated companies at end of period
    
    
    5
    
    
    
    3
 F-29




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsYen in millions
    
    
    in thousandsFor theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net revenues
    
    ¥
    11,693
    
    
    ¥
    16,848
    
    
    ¥
    11,722
    
    
    $
    119,332Gross profit
    
    
    957
    
    
    
    1,532
    
    
    
    966
    
    
    
    9,834Net income (loss)
    
    
    31
    
    
    
    171
    
    
    
    (223
    )
    
    
    (2,270
    )NIDECs share of net
income (loss)
    
    
    (16
    )
    
    
    45
    
    
    
    (80
    )
    
    
    (815
    )Adjustments
    
    
    (57
    )
    
    
    (6
    )
    
    
    32
    
    
    
    326Equity (loss) income
    
    ¥
    (73
    )
    
    ¥
    39
    
    
    ¥
    (48
    )
    
    $
    (489
    )
       U.S. dollarsYen in millions
    
    in thousandsMarch 31
    
    March 31,2008
    
    2009
    
    2009Trade notes and accounts receivable
    
    ¥
    299
    
    
    ¥
    181
    
    
    $
    1,843Trade notes and accounts payable
    
    ¥
    3,006
    
    
    ¥
    2,072
    
    
    $
    21,093
 F-30




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsYen in millions
    
    in thousandsFor the yearFor the year ended
    
    endedMarch 31
    
    March 31,2007
    
    2008
    
    2009
    
    2009Sales of products
    
    ¥
    1,739
    
    
    ¥
    552
    
    
    ¥
    330
    
    
    $
    3,359Purchases of goods
    
    ¥
    9,822
    
    
    ¥
    13,482
    
    
    ¥
    10,126
    
    
    $
    103,085
      12. Other non-current assets:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Intangible assets *1
    
    ¥
    13,132
    
    
    ¥
    10,952
    
    
    $
    111,493Deferred tax assets
    
    
    11,098
    
    
    
    11,264
    
    
    
    114,670Other *2
    
    
    3,059
    
    
    
    3,014
    
    
    
    30,683¥
    27,289
    
    
    ¥
    25,230
    
    
    $
    256,846
 F-31




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  
 *1.
    
    Intangible assets information is described at note No. 5 Goodwill and
other intangible assets*2.
    
    Other primarily consists of deposits and long-term receivables. 13. Short-term borrowings and long-term debt:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Loans, principally from banks
with average interest at March
31, 2008 and 2009 of 1.53% and
0.53% per annum, respectively
    
    ¥
    68,854
    
    
    ¥
    221,342
    
    
    $
    2,253,303
   U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Secured loans, representing obligations principally to banksDue 2008 with interest ranging 2.07% per annum in 2008
    
    ¥
    8
    
    
    
    
    
    
    
    Unsecured loans, representing obligations principally to
banks and an insurance companyDue 2008 to 2026 in 2008 with interest ranging from
0.00% to 6.40% per annum in 2008Due 2009 to 2026 in 2009 with interest ranging from
0.00% to 6.40% per annum in 2009
    
    
    302
    
    
    ¥
    663
    
    
    ¥
    6,750Zero coupon convertible bonds, due 2008Convertible at ¥6,914 for one common share, redeemable
before due date (see notes below)
    
    
    27,089
    
    
    
    
    
    
    
    Long-term capital lease obligationsDue 2008 to 2015 in 2008, with interest from 0.19% to
7.03% per annum in 2008Due 2009 to 2015 in 2009, with interest from 0.19% to
5.85% per annum in 2009
    
    
    5,227
    
    
    
    3,798
    
    
    
    38,66432,626
    
    
    
    4,461
    
    
    
    45,414Less  Current portion due within one year
    
    
    (29,196
    )
    
    
    (1,883
    )
    
    
    (19,169
    )¥
    3,430
    
    
    ¥
    2,578
    
    
    $
    26,245
 F-32




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  
 1.
    
    Detail of Zero coupon 0.0% convertible bonds, due 2008 is as follow; U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Principal amount
    
    ¥
    27,000
    
    
    
    
    
    
    
    Unamortized discount
    
    
    89
    
    
    
    
    
    
    
    Total
    
    ¥
    27,089
    
    
    
    
    
    
    
    
 
 2.
    
    The yen denominated zero coupon convertible bonds with stock acquisition rights due 2008,
which were listed on London Stock Exchange, were issued on October 17, 2003, and were
redeemable at 100% of face value on October 17, 2008 (maturity date). The face value of the
bonds was ¥30,000 million and the issue price was 103.00% of the face value.On October 17, 2008, NIDEC redeemed the bonds at maturity. The total bonds redeemed were ¥26,412
million ($268,879 thousand). NIDEC financed the redemption cost by borrowings from banks.  U.S. dollarsYen in millions
    
    
    in thousandsYear ending March 312010
    
    ¥
    1,883
    
    
    $
    19,1692011
    
    
    1,249
    
    
    
    12,7152012
    
    
    700
    
    
    
    7,1262013
    
    
    303
    
    
    
    3,0852014
    
    
    76
    
    
    
    7742015 and thereafter
    
    ¥
    250
    
    
    $
    2,545
   F-33




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 14. Other current liabilities:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Accrued expenses
    
    ¥
    17,533
    
    
    ¥
    13,995
    
    
    $
    142,472Income taxes payable
    
    
    5,942
    
    
    
    3,008
    
    
    
    30,622Payable for property, plant and equipment
    
    
    3,305
    
    
    
    2,342
    
    
    
    23,842Other
    
    
    6,571
    
    
    
    4,775
    
    
    
    48,611¥
    33,351
    
    
    ¥
    24,120
    
    
    $
    245,547
  15. Pension and severance plans:
    F-34




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
   U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Change in benefit obligation:Benefit obligation at beginning of year
    
    ¥
    15,359
    
    
    ¥
    19,474
    
    
    $
    198,249SFAS No. 158 measurement date adjustment
    
    
    
    
    
    
    256
    
    
    
    2,606Service cost
    
    
    1,100
    
    
    
    1,163
    
    
    
    11,840Interest cost
    
    
    331
    
    
    
    335
    
    
    
    3,410Actuarial loss
    
    
    680
    
    
    
    366
    
    
    
    3,726Acquisition and other
    
    
    3,817
    
    
    
    23
    
    
    
    234Benefits paid
    
    
    (1,813
    )
    
    
    (2,341
    )
    
    
    (23,832
    )19,474
    
    
    
    19,276
    
    
    
    196,233Change in plan assets:Fair value of plan assets at beginning of year
    
    
    7,053
    
    
    
    8,476
    
    
    
    86,287SFAS No. 158 measurement date adjustment
    
    
    
    
    
    
    32
    
    
    
    325Actual return on plan assets
    
    
    (162
    )
    
    
    (1,442
    )
    
    
    (14,680
    )Employer contribution
    
    
    967
    
    
    
    1,043
    
    
    
    10,618Acquisition and other
    
    
    1,330
    
    
    
    
    
    
    
    Benefits paid
    
    
    (712
    )
    
    
    (1,024
    )
    
    
    (10,424
    )Fair value of plan assets at end of year
    
    
    8,476
    
    
    
    7,085
    
    
    
    72,126Funded status
    
    ¥
    10,998
    
    
    ¥
    12,191
    
    
    $
    124,107
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Accrued pension and severance costs
    
    ¥
    10,998
    
    
    ¥
    12,191
    
    
    $
    124,107Net amounts recognized
    
    ¥
    10,998
    
    
    ¥
    12,191
    
    
    $
    124,107
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Actuarial loss
    
    ¥
    (1,304
    )
    
    ¥
    (3,350
    )
    
    $
    (34,104
    )Prior service cost
    
    
    441
    
    
    
    364
    
    
    
    3,706Pension liability adjustments, pre-tax
    
    ¥
    (863
    )
    
    ¥
    (2,986
    )
    
    $
    (30,398
    )
  F-35




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Projected benefit obligations
    
    ¥
    19,434
    
    
    ¥
    19,276
    
    
    $
    196,233Accumulated benefit obligations
    
    
    18,014
    
    
    
    17,571
    
    
    
    178,876Fair value of plan assets
    
    
    8,437
    
    
    
    7,085
    
    
    
    72,127
  March 312008
    
    2009Discount rate
    
    
    1.3-2.8
    %
    
    
    1.2-2.5
    %Rate of compensation increase
    
    
    1.0-3.2
    %
    
    
    1.0-3.2
    %
  For the year endedMarch 312007
    
    2008
    
    2009Discount rate
    
    
    1.5-3.1
    %
    
    
    1.3-2.7
    %
    
    
    1.3-2.8
    %Expected return on plan assets
    
    
    0.8-3.0
    %
    
    
    0.8-3.0
    %
    
    
    0.8-3.5
    %Rate of compensation increase
    
    
    0.0-3.5
    %
    
    
    1.0-3.5
    %
    
    
    1.0-3.2
    %
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 312007
    
    
    2008
    
    
    2009
    
    
    2009Components of net periodic (benefit) cost:Service cost
    
    ¥
    667
    
    
    ¥
    1,100
    
    
    ¥
    1,163
    
    
    $
    11,840Interest cost
    
    
    325
    
    
    
    331
    
    
    
    335
    
    
    
    3,410Expected return on plan assets
    
    
    (155
    )
    
    
    (201
    )
    
    
    (148
    )
    
    
    (1,507
    )Amortization of net actuarial (gain) loss
    
    
    (38
    )
    
    
    (5
    )
    
    
    33
    
    
    
    336Amortization of prior service credit
    
    
    (62
    )
    
    
    (62
    )
    
    
    (62
    )
    
    
    (631
    )Net periodic pension cost
    
    ¥
    737
    
    
    ¥
    1,163
    
    
    ¥
    1,321
    
    
    $
    13,448
  F-36




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Change in benefit obligation:Benefit obligation at beginning of year
    
    ¥
    4,784
    
    
    ¥
    4,038
    
    
    $
    41,108Service cost
    
    
    191
    
    
    
    267
    
    
    
    2,718Interest cost
    
    
    221
    
    
    
    251
    
    
    
    2,555Actuarial (gain) loss
    
    
    (914
    )
    
    
    26
    
    
    
    265Foreign currency exchange rate changes
    
    
    (54
    )
    
    
    (526
    )
    
    
    (5,355
    )Benefits paid
    
    
    (190
    )
    
    
    (332
    )
    
    
    (3,380
    )4,038
    
    
    
    3,724
    
    
    
    37,911Change in plan assets:Fair value of plan assets at beginning of year
    
    
    77
    
    
    
    83
    
    
    
    845Actual return on plan assets
    
    
    (14
    )
    
    
    7
    
    
    
    71Employer contribution
    
    
    28
    
    
    
    331
    
    
    
    3,370Foreign currency exchange rate changes
    
    
    20
    
    
    
    (43
    )
    
    
    (438
    )Benefits paid
    
    
    (28
    )
    
    
    (147
    )
    
    
    (1,496
    )Fair value of plan assets at end of year
    
    
    83
    
    
    
    231
    
    
    
    2,352Funded status
    
    ¥
    3,955
    
    
    ¥
    3,493
    
    
    $
    35,559
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Accrued pension and severance costs
    
    ¥
    3,955
    
    
    ¥
    3,493
    
    
    $
    35,559Net amounts recognized
    
    ¥
    3,955
    
    
    ¥
    3,493
    
    
    $
    35,559
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Actuarial gain
    
    ¥
    914
    
    
    ¥
    690
    
    
    $
    7,024Pension liability adjustments, pre-tax
    
    ¥
    914
    
    
    ¥
    690
    
    
    $
    7,024
  F-37




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Projected benefit obligations
    
    ¥
    4,038
    
    
    ¥
    3,724
    
    
    $
    37,911Accumulated benefit obligations
    
    
    3,883
    
    
    
    3,529
    
    
    
    35,926Fair value of plan assets
    
    
    83
    
    
    
    231
    
    
    
    2,352
  March 312008
    
    2009Discount rate
    
    
    5.9
    %
    
    
    6.0
    %Rate of compensation increase
    
    
    2.5
    %
    
    
    2.5
    %
  For the year endedMarch 312007
    
    2008
    
    2009Discount rate
    
    
    4.3
    %
    
    
    4.3
    %
    
    
    5.9
    %Rate of compensation increase
    
    
    2.5
    %
    
    
    2.5
    %
    
    
    2.5
    %
  U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 312007
    
    
    2008
    
    
    2009
    
    
    2009Components of net periodic (benefit) cost:Service cost
    
    ¥
    172
    
    
    ¥
    191
    
    
    ¥
    267
    
    
    $
    2,719Interest cost
    
    
    57
    
    
    
    221
    
    
    
    251
    
    
    
    2,555Expected return on plan assets
    
    
    (9
    )
    
    
    13
    
    
    
    (9
    )
    
    
    (92
    )Amortization of net actuarial gain
    
    
    
    
    
    
    
    
    
    
    (40
    )
    
    
    (407
    )Net periodic pension cost
    
    ¥
    220
    
    
    ¥
    425
    
    
    ¥
    469
    
    
    $
    4,775
   F-38




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  Asset allocation of pension plansActual
%
    

Target
%March 31
    
    March 31
    
    March 312008
    
    2009
    
    2010Assets CategoryEquity securities
    
    
    39
    
    
    
    30
    
    
    
    30Debt securities
    
    
    22
    
    
    
    24
    
    
    
    24Life insurance company general accounts
    
    
    26
    
    
    
    31
    
    
    
    30Others
    
    
    13
    
    
    
    15
    
    
    
    16Total
    
    
    100
    
    
    
    100
    
    
    
    100
    U.S. dollarsYen in millions
    
    in thousandsJapanese
    
    Foreign
    
    Japanese
    
    Foreignplans
    
    plans
    
    plans
    
    plans2010
    
    ¥
    1,451
    
    
    ¥
    241
    
    
    $
    14,771
    
    
    $
    2,4532011
    
    
    1,741
    
    
    
    264
    
    
    
    17,724
    
    
    
    2,6882012
    
    
    1,276
    
    
    
    319
    
    
    
    12,990
    
    
    
    3,2472013
    
    
    1,310
    
    
    
    175
    
    
    
    13,336
    
    
    
    1,7822014
    
    
    1,216
    
    
    
    189
    
    
    
    12,379
    
    
    
    1,924Years 2015-2019
    
    ¥
    5,126
    
    
    ¥
    1,526
    
    
    $
    52,184
    
    
    $
    15,535
   F-39




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 16. Other long-term liabilities:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Deferred tax liabilities
    
    
    ¥4,157
    
    
    
    ¥2,388
    
    
    $
    24,310Long-term accrued liabilities
    
    
    3,034
    
    
    
    2,164
    
    
    
    22,030Unrecognized tax benefits*
    
    
    2,374
    
    
    
    2,481
    
    
    
    25,257Revenue received in advance
    
    
    1,363
    
    
    
    768
    
    
    
    7,818Other
    
    
    1,534
    
    
    
    1,391
    
    
    
    14,161¥12,462
    
    
    
    ¥9,192
    
    
    $
    93,576
 
 Note:*
    
    Unrecognized tax benefits information is described at note No.18 Income
taxes 17. Shareholders equity:
     F-40




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
    Yen in millionsForeign
    
    
    
    
    
    
    Minimum
    
    
    
    
    
    
    Accumulatedcurrency
    
    
    Unrealized
    
    
    pension
    
    
    Pension
    
    
    othertranslation
    
    
    gains (losses)
    
    
    liability
    
    
    liability
    
    
    comprehensiveadjustments
    
    
    from securities
    
    
    adjustment
    
    
    adjustment
    
    
    income (loss)Balance at March 31, 2006
    
    
    ¥(75
    )
    
    
    ¥3,863
    
    
    
    ¥(115
    )
    
    
    
    
    
    
    ¥3,673Other comprehensive
income (loss)
    
    
    6,949
    
    
    
    (539
    )
    
    
    (25
    )
    
    
    
    
    
    
    6,385Adoption of SFAS No. 158
    
    
    
    
    
    
    
    
    
    
    ¥140
    
    
    
    ¥263
    
    
    
    403Balance at March 31, 2007
    
    
    6,874
    
    
    
    3,324
    
    
    
    
    
    
    
    263
    
    
    
    10,461Other comprehensive
income (loss)
    
    
    (17,107
    )
    
    
    (2,308
    )
    
    
    
    
    
    
    305
    
    
    
    (19,110
    )Balance at March 31, 2008
    
    
    (10,233
    )
    
    
    1,016
    
    
    
    
    
    
    
    568
    
    
    
    (8,649
    )Adjustment to apply the
measurement date
provision of SFAS No.
158, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    (5
    )Other comprehensive
income (loss)
    
    
    (16,091
    )
    
    
    (1,433
    )
    
    
    
    
    
    
    (1,286
    )
    
    
    (18,810
    )Balance at March 31, 2009
    
    
    ¥(26,324
    )
    
    
    ¥(417
    )
    
    
    
    
    
    
    ¥(723
    )
    
    
    ¥(27,464
    )
 U.S. dollars in thousandsForeign
    
    
    
    
    
    
    Minimum
    
    
    
    
    
    
    Accumulatedcurrency
    
    
    Unrealized
    
    
    pension
    
    
    Pension
    
    
    othertranslation
    
    
    gains (losses)
    
    
    liability
    
    
    liability
    
    
    comprehensiveadjustments
    
    
    from securities
    
    
    adjustment
    
    
    adjustment
    
    
    income (loss)Balance at March 31, 2008
    
    $
    (104,174
    )
    
    $
    10,343
    
    
    
    
    
    
    $
    5,783
    
    
    $
    (88,048
    )Adjustment to apply the
measurement date
provision of SFAS No.
158, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51
    )
    
    
    (51
    )Other comprehensive
income (loss)
    
    
    (163,809
    )
    
    
    (14,588
    )
    
    
    
    
    
    
    (13,092
    )
    
    
    (191,489
    )Balance at March 31, 2009
    
    $
    (267,983
    )
    
    $
    (4,245
    )
    
    
    
    
    
    $
    (7,360
    )
    
    $
    (279,588
    )
 F-41




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
   Yen in millionsPre-tax
    
    
    Tax
    
    
    Net-of-taxamount
    
    
    expense
    
    
    amountFor the year ended March 31, 2007:Foreign currency translation adjustments
    
    ¥
    7,001
    
    
    ¥
    (52
    )
    
    ¥
    6,949Unrealized gains (losses) from securities:Unrealized holding gains (losses) arising during period
    
    
    2
    
    
    
    (1
    )
    
    
    1Reclassification adjustments for gains (losses)
realized in net income
    
    
    (943
    )
    
    
    403
    
    
    
    (540
    )Minimum pension liability adjustment
    
    
    (44
    )
    
    
    19
    
    
    
    (25
    )Other comprehensive income (loss)
    
    ¥
    6,016
    
    
    ¥
    369
    
    
    ¥
    6,385For the year ended March 31, 2008:Foreign currency translation adjustments
    
    ¥
    (17,432
    )
    
    ¥
    325
    
    
    ¥
    (17,107
    )Unrealized gains (losses) from securities:Unrealized holding gains (losses) arising during period
    
    
    (3,457
    )
    
    
    1,417
    
    
    
    (2,040
    )Reclassification adjustments for gains and losses
realized in net income
    
    
    (454
    )
    
    
    186
    
    
    
    (268
    )Pension liability adjustment:Actual (gains) losses arising during period
    
    
    (127
    )
    
    
    472
    
    
    
    345Reclassification adjustments for actual gains (losses)
realized in net income
    
    
    (5
    )
    
    
    2
    
    
    
    (3
    )Reclassification adjustments for prior service credit
realized in net income
    
    
    (62
    )
    
    
    25
    
    
    
    (37
    )Other comprehensive income (loss)
    
    ¥
    (21,537
    )
    
    ¥
    2,427
    
    
    ¥
    (19,110
    )For the year ended March 31, 2009:Foreign currency translation adjustments
    
    ¥
    (15,898
    )
    
    ¥
    (193
    )
    
    ¥
    (16,091
    )Unrealized gains (losses) from securities:Unrealized holding gains (losses) arising during period
    
    
    (1,158
    )
    
    
    475
    
    
    
    (683
    )Reclassification adjustments for gains and losses
realized in net income
    
    
    (1,380
    )
    
    
    630
    
    
    
    (750
    )Pension liability adjustment:Actual (gains) losses arising during period
    
    
    (2,107
    )
    
    
    879
    
    
    
    (1,228
    )Reclassification adjustments for actual gains (losses)
realized in net income
    
    
    (7
    )
    
    
    (14
    )
    
    
    (21
    )Reclassification adjustments for prior service credit
realized in net income
    
    
    (62
    )
    
    
    25
    
    
    
    (37
    )Other comprehensive income (loss)
    
    ¥
    (20,612
    )
    
    ¥
    1,802
    
    
    ¥
    (18,810
    )
 F-42




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollars in thousandsPre-tax
    
    
    Tax
    
    
    Net-of-taxamount
    
    
    expense
    
    
    amountFor the year ended March 31, 2009:Foreign currency translation adjustments
    
    $
    (161,844
    )
    
    $
    (1,965
    )
    
    $
    (163,809
    )Unrealized gains (losses) from securities:Unrealized holding gains (losses) arising during period
    
    
    (11,789
    )
    
    
    4,836
    
    
    
    (6,953
    )Reclassification adjustments for gains and losses
realized in net income
    
    
    (14,049
    )
    
    
    6,414
    
    
    
    (7,635
    )Pension liability adjustment:Actual (gains) losses arising during period
    
    
    (21,450
    )
    
    
    8,948
    
    
    
    (12,502
    )Reclassification adjustments for actual gains (losses)
realized in net income
    
    
    (71
    )
    
    
    (143
    )
    
    
    (214
    )Reclassification adjustments for prior service credit
realized in net income
    
    
    (631
    )
    
    
    255
    
    
    
    (376
    )Other comprehensive income (loss)
    
    $
    (209,834
    )
    
    $
    18,345
    
    
    $
    (191,489
    )
 18. Income taxes:
  U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Income from continuing operations
before income taxes:The Company and domestic subsidiaries
    
    
    ¥38,463
    
    
    
    ¥26,995
    
    
    
    ¥20,149
    
    
    $
    205,121Foreign subsidiaries
    
    
    29,151
    
    
    
    37,260
    
    
    
    26,880
    
    
    
    273,643¥67,614
    
    
    
    ¥64,255
    
    
    
    ¥47,029
    
    
    $
    478,764
 F-43




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Current income tax expense:The Company and domestic subsidiaries
    
    ¥
    15,562
    
    
    ¥
    8,603
    
    
    ¥
    5,948
    
    
    $
    60,552Foreign subsidiaries
    
    
    2,893
    
    
    
    4,815
    
    
    
    4,346
    
    
    
    44,243Total current
    
    
    18,455
    
    
    
    13,418
    
    
    
    10,294
    
    
    
    104,795Deferred income tax expense (benefit):The Company and domestic subsidiaries
    
    
    (344
    )
    
    
    4,865
    
    
    
    1,908
    
    
    
    19,424Foreign subsidiaries
    
    
    (166
    )
    
    
    (2,353
    )
    
    
    262
    
    
    
    2,666Total deferred
    
    
    (510
    )
    
    
    2,512
    
    
    
    2,170
    
    
    
    22,090Total provision
    
    ¥
    17,945
    
    
    ¥
    15,930
    
    
    ¥
    12,464
    
    
    $
    126,885
    F-44




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  For the year endedMarch 312007
    
    
    2008
    
    
    2009Statutory tax rate
    
    
    41.0
    %
    
    
    41.0
    %
    
    
    41.0
    %Increase (reduction) in taxes resulting from:Tax benefit in foreign subsidiaries
    
    
    (14.8
    )
    
    
    (20.0
    )
    
    
    (18.9
    )Tax (benefit) on undistributed earnings
    
    
    1.1
    
    
    
    1.6
    
    
    
    (1.1
    )Valuation allowance
    
    
    (5.3
    )
    
    
    (1.4
    )
    
    
    3.6Transfer pricing taxation
    
    
    4.2
    
    
    
    
    
    
    
    Liabilities for unrecognized tax benefits
    
    
    
    
    
    
    2.5
    
    
    
    (0.2
    )Accumulated earnings tax of foreign
subsidiaries
    
    
    0.4
    
    
    
    0.6
    
    
    
    1.0Other
    
    
    (0.1
    )
    
    
    0.5
    
    
    
    1.1Effective income tax rate
    
    
    26.5
    %
    
    
    24.8
    %
    
    
    26.5
    %
   U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Aggregate amounts of tax holidays
    
    ¥
    5,544
    
    
    ¥
    5,256
    
    
    ¥
    4,879
    
    
    $
    49,669Yen
    
    
    U.S. dollarsPer share  basic
    
    ¥
    38.32
    
    
    ¥
    36.27
    
    
    ¥
    33.97
    
    
    $
    0.35diluted
    
    ¥
    37.24
    
    
    ¥
    35.28
    
    
    ¥
    33.46
    
    
    $
    0.34
 F-45




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Deferred tax assets:Inventories
    
    ¥
    2,651
    
    
    ¥
    2,476
    
    
    $
    25,206Property, plant and equipment
    
    
    6,990
    
    
    
    6,361
    
    
    
    64,756Accrued bonus
    
    
    2,569
    
    
    
    1,707
    
    
    
    17,378Accrued enterprise tax
    
    
    893
    
    
    
    417
    
    
    
    4,245Pension and severance plans
    
    
    6,646
    
    
    
    6,886
    
    
    
    70,101Operating loss carryforwards for tax purposes
    
    
    3,313
    
    
    
    3,891
    
    
    
    39,611Foreign tax credit
    
    
    1,982
    
    
    
    1,770
    
    
    
    18,019Accrued Vacation
    
    
    702
    
    
    
    815
    
    
    
    8,297Accrued expenses
    
    
    1,008
    
    
    
    849
    
    
    
    8,643Other
    
    
    1,646
    
    
    
    2,809
    
    
    
    28,596Gross deferred tax assets
    
    
    28,400
    
    
    
    27,981
    
    
    
    284,852Less  Valuation allowance
    
    
    (6,455
    )
    
    
    (7,026
    )
    
    
    (71,526
    )Net deferred tax assets
    
    
    21,945
    
    
    
    20,955
    
    
    
    213,326Deferred tax liabilities:Basis difference of acquired assets
    
    
    (2,952
    )
    
    
    (2,973
    )
    
    
    (30,266
    )Undistributed earnings not permanently reinvested
    
    
    (2,561
    )
    
    
    (909
    )
    
    
    (9,254
    )Marketable securities
    
    
    (2,396
    )
    
    
    (252
    )
    
    
    (2,565
    )Intangible assets
    
    
    (159
    )
    
    
    (487
    )
    
    
    (4,958
    )Other
    
    
    (106
    )
    
    
    (159
    )
    
    
    (1,619
    )Gross deferred tax liabilities
    
    
    (8,174
    )
    
    
    (4,780
    )
    
    
    (48,662
    )Net deferred tax assets
    
    ¥
    13,771
    
    
    ¥
    16,175
    
    
    $
    164,664
    F-46




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Valuation allowance at beginning of year
    
    ¥
    (11,602
    )
    
    ¥
    (4,279
    )
    
    ¥
    (6,455
    )
    
    $
    (65,713
    )Additions
    
    
    
    
    
    
    (2,785
    )
    
    
    (1,719
    )
    
    
    (17,500
    )Deductions
    
    
    8,676
    
    
    
    890
    
    
    
    1,178
    
    
    
    11,992Impact of acquisition of companies
    
    
    (1,353
    )
    
    
    (281
    )
    
    
    (30
    )
    
    
    (305
    )Valuation allowance at end of year
    
    ¥
    (4,279
    )
    
    ¥
    (6,455
    )
    
    ¥
    (7,026
    )
    
    $
    (71,526
    )
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Deferred tax assets:Other current assets
    
    ¥
    6,896
    
    
    ¥
    7,409
    
    
    $
    75,425Other non-current assets
    
    
    11,098
    
    
    
    11,264
    
    
    
    114,670Deferred tax liabilities:Other current liabilities
    
    
    (66
    )
    
    
    (110
    )
    
    
    (1,120
    )Other long-term liabilities
    
    
    (4,157
    )
    
    
    (2,388
    )
    
    
    (24,310
    )Net deferred tax assets
    
 ¥
    13,771
    
    
    ¥
    16,175
    
    
    $
    164,665
   U.S. dollarsYen in millions
    
    
    in thousandsMarch 31,
    
    
    March 31,2008
    
    
    2009
    
    
    2009Balance at April 1
    
 ¥

    865
    
    
    ¥
    2,374
    
    
    $
    24,168Additions for tax positions of the current year
    
    
    1,509
    
    
    
    
    
    
    
    Additions for tax positions of prior years
    
    
    
    
    
    
    
    
    
    
    Reductions for tax positions of prior years
    
    
    
    
    
    
    
    
    
    
    Lapse of the applicable statute of limitations
    
    
    
    
    
    
    
    
    
    
    Settlements
    
    
    
    
    
    
    
    
    
    
    Balance at March 31
    
    ¥
    2,374
    
    
    ¥
    2,374
    
    
    $
    24,168
 F-47




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
     19. Reconciliation of the differences between basic and diluted earnings per share:
  Yen in
    
    
    Thousandsmillions
    
    
    of shares
    
    
    Yen
    
    
    U.S. dollarsNet
    
    
    Weighted-
    
    
    Net income
    
    
    Net incomeincome
    
    
    average
    
    
    (loss)
    
    
    (loss)(loss)
    
    
    shares
    
    
    per share
    
    
    per shareFor the year ended March 31, 2007:Basic net income(loss) per shareIncome from continuing operations
    
    ¥
    40,780
    
    
    
    144,665
    
    
    ¥
    281.89Loss on discontinued operations
    
    
    (848
    )
    
    
    144,665
    
    
    
    (5.86
    )Net income available to common
shareholders
    
    
    39,932
    
    
    
    144,665
    
    
    
    276.03Effect of dilutive securitiesZero coupon 0.0% convertible bonds
    
    
    
    
    
    
    4,022Stock option
    
    
    
    
    
    
    174Diluted net income(loss) per shareIncome from continuing operations
    
    
    40,780
    
    
    
    148,861
    
    
    
    273.95Loss on discontinued operations
    
    
    (848
    )
    
    
    148,861
    
    
    
    (5.70
    )Net income for computation
    
    ¥
    39,932
    
    
    
    148,861
    
    
    ¥
    268.25
 F-48




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Yen in
    
    
    Thousandsmillions
    
    
    of shares
    
    
    Yen
    
    
    U.S. dollarsNet
    
    
    Weighted-
    
    
    Net income
    
    
    Net incomeincome
    
    
    average
    
    
    (loss)
    
    
    (loss)(loss)
    
    
    shares
    
    
    per share
    
    
    per shareFor the year ended March 31, 2008:Basic net income(loss) per shareIncome from continuing operations
    
    ¥
    41,879
    
    
    
    144,914
    
    
    ¥
    288.99Loss on discontinued operations
    
    
    (723
    )
    
    
    144,914
    
    
    
    (4.99
    )Net income available to common
shareholders
    
    
    41,156
    
    
    
    144,914
    
    
    
    284.00Effect of dilutive securitiesZero coupon 0.0% convertible bonds
    
    
    
    
    
    
    4,022Stock option
    
    
    
    
    
    
    26Diluted net income(loss) per shareIncome from continuing operations
    
    
    41,879
    
    
    
    148,962
    
    
    
    281.14Loss on discontinued operations
    
    
    (723
    )
    
    
    148,962
    
    
    
    (4.85
    )Net income for computation
    
    ¥
    41,156
    
    
    
    148,962
    
    
    ¥
    276.29Yen in
    
    
    Thousandsmillions
    
    
    of shares
    
    
    Yen
    
    
    U.S. dollarsNet
    
    
    Weighted-
    
    
    Net income
    
    
    Net incomeincome
    
    
    average
    
    
    (loss)
    
    
    (loss)(loss)
    
    
    shares
    
    
    per share
    
    
    per shareFor the year ended March 31, 2009:Basic net income(loss) per shareIncome from continuing operations
    
    ¥
    30,740
    
    
    
    143,616
    
    
    ¥
    214.04
    
    
    $
    2.18Loss on discontinued operations
    
    
    (2,387
    )
    
    
    143,616
    
    
    
    (16.62
    )
    
    
    (0.17
    )Net income available to common
shareholders
    
    
    28,353
    
    
    
    143,616
    
    
    
    197.42
    
    
    
    2.01Effect of dilutive securitiesZero coupon 0.0% convertible bonds
    
    
    (47
    )
    
    
    2,200Diluted net income(loss) per shareIncome from continuing operations
    
    
    30,693
    
    
    
    145,816
    
    
    
    210.49
    
    
    
    2.14Loss on discontinued operations
    
    
    (2,387
    )
    
    
    145,816
    
    
    
    (16.37
    )
    
    
    (0.16
    )Net income for computation
    
    ¥
    28,306
    
    
    
    145,816
    
    
    ¥
    194.12
    
    
    $
    1.98
 F-49




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 20. Derivatives:
     Fair Values of Derivative Instruments
  Asset Derivatives[Booked as Other current assets]U.S. dollarsYen in millions
    
    
    in thousandsMarch 31, 2008
    
    
    March 31, 2009
    
    
    March 31, 2009Foreign exchange forward contracts
    
    ¥
    5
    
    
    
    
    
    
    
    Interest rate swap agreements
    
    
    
    
    
    
    
    
    
    
    Interest rate currency swap agreements
    
    
    
    
    
    
    
    
    
    
    Total Derivatives
    
    ¥
    5
    
    
    
    
    
    
    
    Liability Derivatives[Booked as Other current liabilities]U.S. dollarsYen in millions
    
    
    in thousandsMarch 31, 2008
    
    
    March 31, 2009
    
    
    March 31, 2009Foreign exchange forward contracts
    
    
    
    
    
    ¥
    2
    
    
    $
    21Interest rate swap agreements
    
    ¥
    7
    
    
    
    
    
    
    
    Interest rate currency swap agreements
    
    
    12
    
    
    
    1
    
    
    
    10Total Derivatives
    
    ¥
    19
    
    
    ¥
    3
    
    
    $
    31
 F-50




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 The Effect of Derivative Instruments on the Consolidated Statements of Income for the years ended
March 31, 2007, 2008 and 2009
  Amount of Gain or (Loss) Recognized in income onDerivative[Booked as Other, net]U.S. dollarsYen in millions
    
    in thousandsMarch 31,
    
    March 31,2007
    
    2008
    
    2009
    
    2009Foreign exchange forward contracts
    
    ¥
    4
    
    
    ¥
    2
    
    
    ¥
    (7
    )
    
    $
    (71
    )Interest rate swap agreements
    
    
    0
    
    
    
    5
    
    
    
    7
    
    
    
    71Interest rate currency swap agreements
    
    
    (23
    )
    
    
    11
    
    
    
    12
    
    
    
    122Interest rate cap
    
    
    8
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    (11
    )
    
    ¥
    18
    
    
    ¥
    12
    
    
    $
    122
  21. Fair Value:
      F-51




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Assets and Liabilities that are measured at Fair Value on a Recurring Basis:
  Yen in millionsFair Value MeasurementsFair Value at
    
    
    Using Inputs Considered asMarch 31, 2009
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Assets:Marketable securities
    
    ¥
    12,332
    
    
    ¥
    12,332
    
    
    
    
    
    
    
    Liabilities:Derivative liabilities
    
    ¥
    3
    
    
    
    
    
    
    ¥
    3
    
    
    
    U.S. dollars in thousandsFair Value MeasurementsFair Value at
    
    
    Using Inputs Considered asMarch 31, 2009
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Assets:Marketable securities
    
    $
    125,542
    
    
    $
    125,542
    
    
    
    
    
    
    
    Liabilities:Derivative liabilities
    
    $
    31
    
    
    
    
    
    
    $
    31
    
    
    
    
  Fair value of financial instruments:
  Yen in millionsMarch 31, 2008Carrying
    
    
    Estimatedamount
    
    
    fair valueAsset (Liability)Cash and cash equivalents
    
    ¥
    100,809
    
    
    ¥
    100,809Short-term investments
    
    
    3,851
    
    
    
    3,851Short-term loan receivable
    
    
    10
    
    
    
    10Long-term loan receivable
    
    
    291
    
    
    
    298Short-term borrowings
    
    
    (68,854
    )
    
    
    (68,854
    )Long-term debt including
the current portion and
excluding capital lease
obligation
    
    ¥
    (27,398
    )
    
    ¥
    (29,189
    )
 F-52




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsYen in millions
    
    
    in thousandsMarch 31, 2009
    
    
    March 31, 2009Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimatedamount
    
    
    fair value
    
    
    amount
    
    
    fair valueAsset (Liability)Cash and cash equivalents
    
    ¥
    200,966
    
    
    ¥
    200,966
    
    
    $
    2,045,872
    
    
    $
    2,045,872Short-term investments
    
    
    2,932
    
    
    
    2,932
    
    
    
    29,848
    
    
    
    29,848Short-term loan receivable
    
    
    84
    
    
    
    84
    
    
    
    855
    
    
    
    855Long-term loan receivable
    
    
    292
    
    
    
    301
    
    
    
    2,973
    
    
    
    3,064Short-term borrowings
    
    
    (221,342
    )
    
    
    (221,342
    )
    
    
    (2,253,303
    )
    
    
    (2,253,303
    )Long-term debt including
the current portion and
excluding capital lease
obligation
    
    ¥
    (663
    )
    
    ¥
    (652
    )
    
    $
    (6,749
    )
    
    $
    (6,637
    )
     22. Related party transactions:
  Loan to shareholder
  F-53




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
    * Own share repurchase
  F-54




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
  1. Reason for share repurchase:
    
    The repurchase was made to
facilitate the S.N. Kohsans sale
of shares in NIDEC to obtain the
funds necessary to repay the loan
discussed above, and thereby bring
the Company into compliance with
Section 402 of the Sarbanes-Oxley
Act of 2002 promptly. The share
repurchase was within the
parameters established in the
resolution described above and the
repurchase was structured in a
manner intended to give all
shareholders the opportunity to
have their shares repurchased by
the Company, on a pro rata basis,
at the same time and at the same
price. Accordingly, on February 10,
2009, the Company publicly
announced its intention to
repurchase on J-NET, on the morning
of February 12, 2009, 3,500,000
shares at the closing price on the
market on February 10, 2009. Based
on the offers received, the Company
repurchased 2,917,800 of its shares
from S.N. Kohsan and 582,200 of its
shares from other shareholders.2. Class of shares repurchased:
    
    Common stock3. Total number of shares repurchased:
    
    3,500,000 shares4. Total amount of repurchase:
    
    ¥15,435 million
(representing the closing price of
¥4,410 per share on the Osaka
Securities Exchange on February 10,
2009)5. Method of repurchase:
    
    Repurchased through J-NET, the Osaka Securities Exchange
 23. Lease commitments:
  U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,Class of property
    
    2008
    
    
    2009
    
    
    2009Machinery and equipment
    
    ¥
    9,678
    
    
    ¥
    8,756
    
    
    $
    89,137Other leased assets
    
    
    1,186
    
    
    
    743
    
    
    
    7,564Less  Accumulated amortization
    
    
    (7,236
    )
    
    
    (6,884
    )
    
    
    (70,080
    )¥
    3,628
    
    
    ¥
    2,615
    
    
    $
    26,621
 F-55




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
   Yen in
    
    
    U.S. dollarsmillions
    
    
    in thousandsYear ending March 31:2010
    
    ¥
    1,988
    
    
    $
    20,2382011
    
    
    983
    
    
    
    10,0072012
    
    
    689
    
    
    
    7,0142013
    
    
    275
    
    
    
    2,8002014
    
    
    42
    
    
    
    4282015 and thereafter
    
    
    8
    
    
    
    81Total minimum lease payments
    
    
    3,985
    
    
    
    40,568Less  Amount representing interest
    
    
    (187
    )
    
    
    (1,904
    )Present value of net minimum lease payments
    
    
    3,798
    
    
    
    38,664Less  Current obligations
    
    
    (1,879
    )
    
    
    (19,128
    )Long-term capital lease obligations
    
    ¥
    1,919
    
    
    $
    19,536
   Yen in
    
    
    U.S. dollarsmillions
    
    
    in thousandsYear ending March 31:2010
    
    ¥
    1,000
    
    
    $
    10,1802011
    
    
    860
    
    
    
    8,7552012
    
    
    722
    
    
    
    7,3502013
    
    
    602
    
    
    
    6,1282014
    
    
    519
    
    
    
    5,2842015 and thereafter
    
    
    796
    
    
    
    8,104Total minimum future rentals
    
    ¥
    4,499
    
    
    $
    45,801
    F-56




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 Yen in
    
    
    U.S. dollars inmillions
    
    
    thousandsYear ending March 31:2010
    
    ¥
    296
    
    
    $
    3,0142011
    
    
    273
    
    
    
    2,7792012
    
    
    269
    
    
    
    2,7382013
    
    
    269
    
    
    
    2,7382014
    
    
    269
    
    
    
    2,7382015 and thereafter
    
    
    262
    
    
    
    2,668Total minimum future rentals
    
    ¥
    1,638
    
    
    $
    16,675
 24. Other commitments and contingencies, concentrations and factors that may affect future
operations:
 Commitments 
  Contingencies 
  Concentration of risk 
  Product warranty 
  F-57




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsYen in millions
    
    
    in thousandsMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Balance at beginning of year
    
    ¥
    252
    
    
    ¥
    241
    
    
    $
    2,453Addition
    
    
    47
    
    
    
    17
    
    
    
    173Utilization
    
    
    (58
    )
    
    
    (140
    )
    
    
    (1,425
    )Foreign exchange impact
    
    
    0
    
    
    
    (6
    )
    
    
    (61
    )Balance at end of year
    
    ¥
    241
    
    
    ¥
    112
    
    
    $
    1,140
 25. Discontinued Operations
   U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31,
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales
    
    ¥
    15,016
    
    
    ¥
    13,370
    
    
    ¥
    7,681
    
    
    $
    78,194Loss on discontinued operations
before income taxes
    
    
    (2,019
    )
    
    
    (1,572
    )
    
    
    (4,977
    )
    
    
    (50,667
    )Income taxes
    
    
    485
    
    
    
    446
    
    
    
    1,695
    
    
    
    17,255Minority interest in loss of
consolidated subsidiaries
    
    
    (686
    )
    
    
    (403
    )
    
    
    (895
    )
    
    
    (9,111
    )Loss on discontinued operations
    
    ¥
    (848
    )
    
    ¥
    (723
    )
    
    ¥
    (2,387
    )
    
    $
    (24,300
    )
 F-58




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 26. Segment information:
  (1) Enterprise-wide information:
 Product information 
  U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales:Small precision motors:Hard disk drives spindle motors
    
    ¥
    198,196
    
    
    ¥
    223,068
    
    
    ¥
    181,255
    
    
    $
    1,845,210Other small precision
brushless DC motors
    
    
    74,445
    
    
    
    92,359
    
    
    
    73,187
    
    
    
    745,058Brushless DC fans
    
    
    38,656
    
    
    
    46,525
    
    
    
    37,345
    
    
    
    380,179Other small precision motors
    
    
    6,684
    
    
    
    23,730
    
    
    
    22,286
    
    
    
    226,876Sub-total
    
    
    317,981
    
    
    
    385,682
    
    
    
    314,073
    
    
    
    3,197,323Mid-size motors
    
    
    57,389
    
    
    
    96,377
    
    
    
    77,156
    
    
    
    785,463Machinery
    
    
    82,944
    
    
    
    73,253
    
    
    
    72,090
    
    
    
    733,890Electronic and optical components
    
    
    129,635
    
    
    
    145,896
    
    
    
    122,552
    
    
    
    1,247,602Others
    
    
    26,702
    
    
    
    27,548
    
    
    
    27,587
    
    
    
    280,841Consolidated total
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119
      F-59




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
    Geographic information 
  U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales:Japan
    
    ¥
    329,096
    
    
    ¥
    359,489
    
    
    ¥
    306,971
    
    
    $
    3,125,023U.S.A.
    
    
    10,747
    
    
    
    19,513
    
    
    
    12,864
    
    
    
    130,958Singapore
    
    
    57,373
    
    
    
    56,626
    
    
    
    37,811
    
    
    
    384,923Thailand
    
    
    80,579
    
    
    
    109,994
    
    
    
    93,306
    
    
    
    949,873The Philippines
    
    
    12,929
    
    
    
    13,374
    
    
    
    12,394
    
    
    
    126,173China
    
    
    36,588
    
    
    
    45,398
    
    
    
    48,555
    
    
    
    494,299Other
    
    
    87,339
    
    
    
    124,362
    
    
    
    101,557
    
    
    
    1,033,870Consolidated total
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119
 U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Long-lived assets:Japan
    
    ¥
    82,306
    
    
    ¥
    83,541
    
    
    $
    850,463U.S.A.
    
    
    1,128
    
    
    
    1,387
    
    
    
    14,120Singapore
    
    
    2,393
    
    
    
    1,559
    
    
    
    15,871Thailand
    
    
    36,373
    
    
    
    30,464
    
    
    
    310,129The Philippines
    
    
    13,828
    
    
    
    11,202
    
    
    
    114,038China
    
    
    37,336
    
    
    
    35,120
    
    
    
    357,528Other
    
    
    25,465
    
    
    
    26,412
    
    
    
    268,880Consolidated total
    
    ¥
    198,829
    
    
    ¥
    189,685
    
    
    $
    1,931,029
 F-60




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 (2) Operating segment information:
              F-61




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
         F-62




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales to external customers:NCJ
    
    ¥
    89,466
    
    
    ¥
    88,954
    
    
    ¥
    62,260
    
    
    $
    633,819NET
    
    
    67,754
    
    
    
    95,859
    
    
    
    80,247
    
    
    
    816,930NCC
    
    
    14,802
    
    
    
    14,161
    
    
    
    18,305
    
    
    
    186,348NCD
    
    
    3,637
    
    
    
    4,190
    
    
    
    7,776
    
    
    
    79,161NCS
    
    
    49,877
    
    
    
    45,472
    
    
    
    27,118
    
    
    
    276,066NCH
    
    
    34,738
    
    
    
    39,359
    
    
    
    37,761
    
    
    
    384,414NCF
    
    
    5,382
    
    
    
    5,833
    
    
    
    7,517
    
    
    
    76,524NSNK
    
    
    52,361
    
    
    
    46,259
    
    
    
    51,035
    
    
    
    519,546NCPL
    
    
    63,008
    
    
    
    63,779
    
    
    
    53,090
    
    
    
    540,466NTSC
    
    
    22,310
    
    
    
    25,769
    
    
    
    22,644
    
    
    
    230,520NCEL
    
    
    19,849
    
    
    
    22,392
    
    
    
    19,666
    
    
    
    200,204NSRV
    
    
    
    
    
    
    25,378
    
    
    
    20,029
    
    
    
    203,899NSBC
    
    
    16,146
    
    
    
    17,286
    
    
    
    14,600
    
    
    
    148,631NSCJ
    
    
    10,748
    
    
    
    11,163
    
    
    
    9,389
    
    
    
    95,582NMA
    
    
    9,079
    
    
    
    36,352
    
    
    
    24,729
    
    
    
    251,746NNSN
    
    
    10,895
    
    
    
    10,847
    
    
    
    9,738
    
    
    
    99,135All Others
    
    
    136,867
    
    
    
    170,670
    
    
    
    133,792
    
    
    
    1,362,028Total
    
    
    606,919
    
    
    
    723,723
    
    
    
    599,696
    
    
    
    6,105,019US GAAP adjustments *1
    
    
    1,176
    
    
    
    (3,749
    )
    
    
    4,101
    
    
    
    41,749Consolidation adjustments related
to elimination of intercompany
transactions via third party
    
    
    (346
    )
    
    
    (47
    )
    
    
    0
    
    
    
    0Others *2
    
    
    6,902
    
    
    
    8,829
    
    
    
    9,661
    
    
    
    98,351Consolidated total
    
    ¥
    614,651
    
    
    ¥
    728,756
    
    
    ¥
    613,458
    
    
    $
    6,245,119
 
 *1
    
    US GAAP adjustments are mainly related to the differences of revenue recognition between
shipment and delivery bases.*2
    
    Revenues of subsidiaries not included in management reports due to their immateriality are the
main components of Others.  F-63




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For theFor the year ended
    
    
    year endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Net sales to other operating segments:NCJ
    
    ¥
    91,130
    
    
    ¥
    100,299
    
    
    ¥
    72,064
    
    
    $
    733,625NET
    
    
    21,486
    
    
    
    32,334
    
    
    
    31,125
    
    
    
    316,858NCC
    
    
    5,371
    
    
    
    10,776
    
    
    
    2,624
    
    
    
    26,713NCD
    
    
    46,828
    
    
    
    43,849
    
    
    
    27,310
    
    
    
    278,021NCS
    
    
    347
    
    
    
    227
    
    
    
    205
    
    
    
    2,087NCH
    
    
    4,344
    
    
    
    4,298
    
    
    
    5,105
    
    
    
    51,970NCF
    
    
    42,845
    
    
    
    40,649
    
    
    
    22,669
    
    
    
    230,775NSNK
    
    
    10,600
    
    
    
    12,092
    
    
    
    11,001
    
    
    
    111,992NCPL
    
    
    8,460
    
    
    
    6,594
    
    
    
    6,727
    
    
    
    68,482NTSC
    
    
    357
    
    
    
    293
    
    
    
    211
    
    
    
    2,148NCEL
    
    
    3,133
    
    
    
    4,177
    
    
    
    5,843
    
    
    
    59,483NSRV
    
    
    
    
    
    
    3,549
    
    
    
    4,508
    
    
    
    45,892NSBC
    
    
    3,439
    
    
    
    3,633
    
    
    
    3,053
    
    
    
    31,080NSCJ
    
    
    2,448
    
    
    
    2,455
    
    
    
    1,746
    
    
    
    17,775NMA
    
    
    
    
    
    
    284
    
    
    
    15
    
    
    
    153NNSN
    
    
    762
    
    
    
    826
    
    
    
    593
    
    
    
    6,037All Others
    
    
    189,726
    
    
    
    223,080
    
    
    
    185,151
    
    
    
    1,884,872Total
    
    
    431,276
    
    
    
    489,415
    
    
    
    379,950
    
    
    
    3,867,963Intersegment elimination
    
    
    (431,276
    )
    
    
    (489,415
    )
    
    
    (379,950
    )
    
    
    (3,867,963
    )Consolidated total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 F-64




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Operating income or loss:NCJ
    
    ¥
    11,241
    
    
    ¥
    13,980
    
    
    ¥
    7,315
    
    
    $
    74,468NET
    
    
    10,822
    
    
    
    12,606
    
    
    
    15,629
    
    
    
    159,106NCC
    
    
    275
    
    
    
    1,040
    
    
    
    (324
    )
    
    
    (3,298
    )NCD
    
    
    4,560
    
    
    
    4,720
    
    
    
    2,855
    
    
    
    29,064NCS
    
    
    1,545
    
    
    
    1,231
    
    
    
    182
    
    
    
    1,853NCH
    
    
    386
    
    
    
    576
    
    
    
    554
    
    
    
    5,640NCF
    
    
    4,407
    
    
    
    4,129
    
    
    
    2,321
    
    
    
    23,628NSNK
    
    
    8,198
    
    
    
    4,608
    
    
    
    4,473
    
    
    
    45,536NCPL
    
    
    4,056
    
    
    
    3,415
    
    
    
    2,102
    
    
    
    21,399NTSC
    
    
    1,430
    
    
    
    1,643
    
    
    
    745
    
    
    
    7,584NCEL
    
    
    2,688
    
    
    
    3,631
    
    
    
    2,046
    
    
    
    20,829NSRV
    
    
    
    
    
    
    372
    
    
    
    (225
    )
    
    
    (2,291
    )NSBC
    
    
    136
    
    
    
    97
    
    
    
    (281
    )
    
    
    (2,861
    )NSCJ
    
    
    1,412
    
    
    
    1,182
    
    
    
    201
    
    
    
    2,046NMA
    
    
    59
    
    
    
    555
    
    
    
    (728
    )
    
    
    (7,411
    )NNSN
    
    
    545
    
    
    
    610
    
    
    
    298
    
    
    
    3,034All Others
    
    
    13,046
    
    
    
    22,663
    
    
    
    13,463
    
    
    
    137,056Total
    
    
    64,806
    
    
    
    76,864
    
    
    
    50,626
    
    
    
    515,382Main components of U.S. GAAP
adjustments:Pension and severance costs
    
    
    (126
    )
    
    
    (483
    )
    
    
    (30
    )
    
    
    (305
    )Lease
    
    
    (1
    )
    
    
    272
    
    
    
    376
    
    
    
    3,828Consolidation adjustments
mainly related to elimination
of intersegment profits
    
    
    1,130
    
    
    
    (1,200
    )
    
    
    2,803
    
    
    
    28,535Reclassification *1
    
    
    (544
    )
    
    
    6,611
    
    
    
    (196
    )
    
    
    (1,995
    )Others *2
    
    
    671
    
    
    
    (4,522
    )
    
    
    (1,773
    )
    
    
    (18,050
    )¥
    65,936
    
    
    ¥
    77,542
    
    
    ¥
    51,806
    
    
    $
    527,395
 
 *1
    
    Some items are reclassified from other expenses (income) and included in operating expenses
(income). Reclassification mainly includes non-recurring gain for the year ended March 31,
2008 and loss on disposals of fixed assets for the year ended March 31, 2009.*2
    
    Profit or loss of subsidiaries not included in management reports due to their immateriality
are the main components of Others. Furthermore, Others includes amortization of capitalized
assets related to the business acquisitions for the year ended March 31, 2008 and 2009. F-65




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Interest income:NCJ
    
    ¥
    1,873
    
    
    ¥
    2,414
    
    
    ¥
    1,636
    
    
    $
    16,655NET
    
    
    227
    
    
    
    184
    
    
    
    391
    
    
    
    3,980NCC
    
    
    28
    
    
    
    48
    
    
    
    20
    
    
    
    204NCD
    
    
    55
    
    
    
    115
    
    
    
    304
    
    
    
    3,095NCS
    
    
    487
    
    
    
    344
    
    
    
    92
    
    
    
    937NCH
    
    
    44
    
    
    
    39
    
    
    
    11
    
    
    
    112NCF
    
    
    93
    
    
    
    116
    
    
    
    47
    
    
    
    478NSNK
    
    
    539
    
    
    
    564
    
    
    
    415
    
    
    
    4,225NCPL
    
    
    45
    
    
    
    81
    
    
    
    37
    
    
    
    377NTSC
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    10NCEL
    
    
    29
    
    
    
    22
    
    
    
    33
    
    
    
    336NSRV
    
    
    
    
    
    
    122
    
    
    
    29
    
    
    
    295NSBC
    
    
    93
    
    
    
    78
    
    
    
    34
    
    
    
    346NSCJ
    
    
    32
    
    
    
    24
    
    
    
    15
    
    
    
    153NMA
    
    
    19
    
    
    
    81
    
    
    
    147
    
    
    
    1,496NNSN
    
    
    55
    
    
    
    68
    
    
    
    39
    
    
    
    397All Others
    
    
    531
    
    
    
    681
    
    
    
    370
    
    
    
    3,766Total
    
    
    4,151
    
    
    
    4,981
    
    
    
    3,621
    
    
    
    36,862Intersegment elimination
    
    
    (1,907
    )
    
    
    (2,398
    )
    
    
    (1,379
    )
    
    
    (14,038
    )Consolidated total
    
    ¥
    2,244
    
    
    ¥
    2,583
    
    
    ¥
    2,242
    
    
    $
    22,824
 F-66




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Interest expense:NCJ
    
    ¥
    1,381
    
    
    ¥
    1,764
    
    
    ¥
    1,038
    
    
    $
    10,567NET
    
    
    0
    
    
    
    1
    
    
    
    3
    
    
    
    31NCC
    
    
    248
    
    
    
    244
    
    
    
    111
    
    
    
    1,130NCD
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0NCS
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0NCH
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0NCF
    
    
    376
    
    
    
    243
    
    
    
    69
    
    
    
    702NSNK
    
    
    309
    
    
    
    150
    
    
    
    7
    
    
    
    71NCPL
    
    
    17
    
    
    
    25
    
    
    
    7
    
    
    
    71NTSC
    
    
    13
    
    
    
    13
    
    
    
    5
    
    
    
    51NCEL
    
    
    1
    
    
    
    3
    
    
    
    2
    
    
    
    20NSRV
    
    
    
    
    
    
    145
    
    
    
    74
    
    
    
    753NSBC
    
    
    180
    
    
    
    220
    
    
    
    159
    
    
    
    1,619NSCJ
    
    
    73
    
    
    
    78
    
    
    
    64
    
    
    
    652NMA
    
    
    101
    
    
    
    279
    
    
    
    299
    
    
    
    3,044NNSN
    
    
    36
    
    
    
    46
    
    
    
    65
    
    
    
    662All Others
    
    
    1,082
    
    
    
    1,373
    
    
    
    685
    
    
    
    6,973Total
    
    
    3,817
    
    
    
    4,584
    
    
    
    2,588
    
    
    
    26,346Intersegment elimination
    
    
    (1,841
    )
    
    
    (2,215
    )
    
    
    (1,184
    )
    
    
    (12,053
    )Consolidated total
    
    ¥
    1,976
    
    
    ¥
    2,369
    
    
    ¥
    1,404
    
    
    $
    14,293
 F-67




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Depreciation:NCJ
    
    ¥
    1,487
    
    
    ¥
    1,456
    
    
    ¥
    1,417
    
    
    $
    14,425NET
    
    
    3,397
    
    
    
    5,391
    
    
    
    3,393
    
    
    
    34,541NCC
    
    
    677
    
    
    
    945
    
    
    
    1,138
    
    
    
    11,585NCD
    
    
    918
    
    
    
    818
    
    
    
    689
    
    
    
    7,014NCS
    
    
    266
    
    
    
    314
    
    
    
    92
    
    
    
    937NCH
    
    
    6
    
    
    
    7
    
    
    
    5
    
    
    
    51NCF
    
    
    3,025
    
    
    
    3,079
    
    
    
    2,671
    
    
    
    27,191NSNK
    
    
    861
    
    
    
    1,006
    
    
    
    1,190
    
    
    
    12,114NCPL
    
    
    1,351
    
    
    
    1,292
    
    
    
    1,239
    
    
    
    12,613NTSC
    
    
    727
    
    
    
    766
    
    
    
    709
    
    
    
    7,218NCEL
    
    
    745
    
    
    
    915
    
    
    
    896
    
    
    
    9,122NSRV
    
    
    
    
    
    
    318
    
    
    
    452
    
    
    
    4,601NSBC
    
    
    89
    
    
    
    105
    
    
    
    252
    
    
    
    2,565NSCJ
    
    
    344
    
    
    
    301
    
    
    
    303
    
    
    
    3,085NMA
    
    
    428
    
    
    
    1,534
    
    
    
    1,308
    
    
    
    13,316NNSN
    
    
    463
    
    
    
    493
    
    
    
    1,029
    
    
    
    10,475All Others
    
    
    13,340
    
    
    
    14,926
    
    
    
    13,828
    
    
    
    140,773Total
    
    
    28,124
    
    
    
    33,666
    
    
    
    30,611
    
    
    
    311,626U.S. GAAP adjustments*1
    
    
    1,580
    
    
    
    1,520
    
    
    
    53
    
    
    
    539Others*2
    
    
    293
    
    
    
    1,148
    
    
    
    1,483
    
    
    
    15,098Consolidated total
    
    ¥
    29,997
    
    
    ¥
    36,334
    
    
    ¥
    32,147
    
    
    $
    327,263
 
 *1
    
    Some leased properties are not capitalized in the operating segments but are capitalized
under U.S. GAAP.*2
    
    Depreciation expenses of subsidiaries not included in management reports due to their
immateriality are the main components of Others. F-68




---



##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2007
    
    
    2008
    
    
    2009
    
    
    2009Income tax expenses or benefit:NCJ
    
    ¥
    8,162
    
    
    ¥
    4,069
    
    
    ¥
    3,831
    
    
    $
    39,000NET
    
    
    88
    
    
    
    179
    
    
    
    529
    
    
    
    5,385NCC
    
    
    0
    
    
    
    0
    
    
    
    54
    
    
    
    550NCD
    
    
    500
    
    
    
    267
    
    
    
    548
    
    
    
    5,579NCS
    
    
    220
    
    
    
    103
    
    
    
    0
    
    
    
    0NCH
    
    
    66
    
    
    
    98
    
    
    
    89
    
    
    
    906NCF
    
    
    12
    
    
    
    14
    
    
    
    13
    
    
    
    132NSNK
    
    
    (658
    )
    
    
    59
    
    
    
    654
    
    
    
    6,658NCPL
    
    
    2,060
    
    
    
    1,199
    
    
    
    538
    
    
    
    5,477NTSC
    
    
    528
    
    
    
    886
    
    
    
    29
    
    
    
    295NCEL
    
    
    1,089
    
    
    
    1,328
    
    
    
    705
    
    
    
    7,177NSRV
    
    
    
    
    
    
    226
    
    
    
    (66
    )
    
    
    (672
    )NSBC
    
    
    98
    
    
    
    (141
    )
    
    
    (374
    )
    
    
    (3,807
    )NSCJ
    
    
    551
    
    
    
    423
    
    
    
    66
    
    
    
    672NMA
    
    
    62
    
    
    
    340
    
    
    
    28
    
    
    
    285NNSN
    
    
    295
    
    
    
    371
    
    
    
    141
    
    
    
    1,435All Others
    
    
    3,479
    
    
    
    4,048
    
    
    
    3,379
    
    
    
    34,399Total
    
    
    16,552
    
    
    
    13,469
    
    
    
    10,164
    
    
    
    103,471U.S. GAAP adjustments
    
    
    (757
    )
    
    
    514
    
    
    
    (126
    )
    
    
    (1,287
    )Consolidation adjustments
    
    
    2,150
    
    
    
    1,947
    
    
    
    2,426
    
    
    
    24,702Consolidated total
    
    ¥
    17,945
    
    
    ¥
    15,930
    
    
    ¥
    12,464
    
    
    $
    126,886
 F-69




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Segment assets:NCJ
    
    ¥
    365,503
    
    
    ¥
    466,817
    
    
    $
    4,752,285NET
    
    
    54,590
    
    
    
    45,208
    
    
    
    460,226NCC
    
    
    11,986
    
    
    
    10,143
    
    
    
    103,258NCD
    
    
    22,883
    
    
    
    20,961
    
    
    
    213,387NCS
    
    
    16,956
    
    
    
    11,591
    
    
    
    117,999NCH
    
    
    11,286
    
    
    
    10,718
    
    
    
    109,111NCF
    
    
    17,544
    
    
    
    14,930
    
    
    
    151,990NSNK
    
    
    89,688
    
    
    
    86,020
    
    
    
    875,700NCPL
    
    
    55,969
    
    
    
    46,564
    
    
    
    474,030NTSC
    
    
    26,379
    
    
    
    20,553
    
    
    
    209,233NCEL
    
    
    29,613
    
    
    
    27,314
    
    
    
    278,062NSRV
    
    
    17,696
    
    
    
    16,767
    
    
    
    170,691NSBC
    
    
    17,994
    
    
    
    15,785
    
    
    
    160,694NSCJ
    
    
    20,545
    
    
    
    17,592
    
    
    
    179,090NMA
    
    
    28,474
    
    
    
    21,172
    
    
    
    215,535NNSN
    
    
    10,882
    
    
    
    11,538
    
    
    
    117,459All Others
    
    
    221,434
    
    
    
    184,314
    
    
    
    1,876,352Total
    
    
    1,019,422
    
    
    
    1,027,987
    
    
    
    10,465,102U.S. GAAP adjustments:Lease
    
    
    2,435
    
    
    
    (436
    )
    
    
    (4,439
    )Property, plant and equipment
    
    
    (2,721
    )
    
    
    (2,970
    )
    
    
    (30,235
    )Deferred tax assets
    
    
    11,931
    
    
    
    9,343
    
    
    
    95,114Marketable securities
    
    
    4,245
    
    
    
    4,037
    
    
    
    41,097Others
    
    
    (5,489
    )
    
    
    (4,965
    )
    
    
    (50,544
    )Sub-total
    
    
    10,401
    
    
    
    5,009
    
    
    
    50,993Elimination of intersegment assets, net of taxes
    
    
    (490,344
    )
    
    
    (459,698
    )
    
    
    (4,679,813
    )Intangible assets and other fair value adjustments
    
    
    17,131
    
    
    
    14,064
    
    
    
    143,174Goodwill
    
    
    71,223
    
    
    
    71,060
    
    
    
    723,404To adjust affiliate from cost to equity method
    
    
    (227
    )
    
    
    (630
    )
    
    
    (6,414
    )Others*1
    
    
    44,108
    
    
    
    45,092
    
    
    
    459,046Consolidated total
    
    ¥
    671,714
    
    
    ¥
    702,884
    
    
    $
    7,155,492
 
 *1
    
    Assets of subsidiaries not included in management reports due to their immateriality are the
main components of Others. F-70




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollarsin thousandsYen in millions
    
    
    For the yearFor the year ended
    
    
    endedMarch 31
    
    
    March 31,2008
    
    
    2009
    
    
    2009Expenditure for segment assets:NCJ
    
    ¥
    1,168
    
    
    ¥
    3,871
    
    
    $
    39,407NET
    
    
    3,002
    
    
    
    2,301
    
    
    
    23,425NCC
    
    
    1,860
    
    
    
    1,599
    
    
    
    16,278NCD
    
    
    480
    
    
    
    349
    
    
    
    3,553NCS
    
    
    196
    
    
    
    1
    
    
    
    10NCH
    
    
    5
    
    
    
    0
    
    
    
    0NCF
    
    
    2,298
    
    
    
    1,108
    
    
    
    11,280NSNK
    
    
    899
    
    
    
    2,270
    
    
    
    23,109NCPL
    
    
    885
    
    
    
    931
    
    
    
    9,478NTSC
    
    
    542
    
    
    
    360
    
    
    
    3,665NCEL
    
    
    1,296
    
    
    
    1,114
    
    
    
    11,341NSRV
    
    
    446
    
    
    
    1,410
    
    
    
    14,354NSBC
    
    
    97
    
    
    
    62
    
    
    
    631NSCJ
    
    
    219
    
    
    
    262
    
    
    
    2,667NMA
    
    
    1,721
    
    
    
    3,067
    
    
    
    31,223NNSN
    
    
    507
    
    
    
    834
    
    
    
    8,490All Others
    
    
    15,660
    
    
    
    18,517
    
    
    
    188,506Total
    
    
    31,281
    
    
    
    38,056
    
    
    
    387,417Reconciliation *1
    
    
    4,379
    
    
    
    445
    
    
    
    4,531Consolidated total
    
    ¥
    35,660
    
    
    ¥
    38,501
    
    
    $
    391,948
 
 *1
    
    The amounts of expenditure for segment assets were on an accrual basis while the
amounts of consolidated total were on a cash basis.  27. Subsequent events:
 Dividends for the second half of the fiscal year ended March 31, 2009
  F-71




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 28. Quarterly Financial Data for the year ended March 31, 2009: (Unaudited)
 Yen in millionsFirst
    
    
    Second
    
    
    Third
    
    
    FourthQuarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    TotalNet sales
    
    ¥
    174,947
    
    
    ¥
    190,273
    
    
    ¥
    141,186
    
    
    ¥
    107,052
    
    
    ¥
    613,458Operating expenses:Cost of products sold
    
    
    136,005
    
    
    
    146,354
    
    
    
    111,452
    
    
    
    89,082
    
    
    
    482,893Selling, general and administrative expense
    
    
    13,215
    
    
    
    14,253
    
    
    
    12,802
    
    
    
    11,525
    
    
    
    51,795Research and development expenses
    
    
    7,335
    
    
    
    7,280
    
    
    
    6,894
    
    
    
    5,455
    
    
    
    26,964156,555
    
    
    
    167,887
    
    
    
    131,148
    
    
    
    106,062
    
    
    
    561,652Operating income
    
    
    18,392
    
    
    
    22,386
    
    
    
    10,038
    
    
    
    990
    
    
    
    51,806Other income (expense):Interest and dividend income
    
    
    632
    
    
    
    636
    
    
    
    771
    
    
    
    504
    
    
    
    2,543Interest expense
    
    
    (364
    )
    
    
    (343
    )
    
    
    (347
    )
    
    
    (350
    )
    
    
    (1,404
    )Foreign exchange gain (loss), net
    
    
    4,794
    
    
    
    (2,121
    )
    
    
    (12,828
    )
    
    
    6,467
    
    
    
    (3,688
    )(Loss) gain on marketable securities, net
    
    
    (24
    )
    
    
    (33
    )
    
    
    127
    
    
    
    (1,375
    )
    
    
    (1,305
    )Other, net
    
    
    (347
    )
    
    
    (227
    )
    
    
    161
    
    
    
    (510
    )
    
    
    (923
    )4,691
    
    
    
    (2,088
    )
    
    
    (12,116
    )
    
    
    4,736
    
    
    
    (4,777
    )Income (loss) from continuing operations before
income taxes
    
    
    23,083
    
    
    
    20,298
    
    
    
    (2,078
    )
    
    
    5,726
    
    
    
    47,029Income taxes
    
    
    (5,891
    )
    
    
    (5,275
    )
    
    
    (171
    )
    
    
    (1,127
    )
    
    
    (12,464
    )Income (loss) from continuing operations before
minority interest and equity in earnings of
affiliated companies
    
    
    17,192
    
    
    
    15,023
    
    
    
    (2,249
    )
    
    
    4,599
    
    
    
    34,565Minority interest in income of consolidated
subsidiaries
    
    
    2,080
    
    
    
    1,995
    
    
    
    195
    
    
    
    (493
    )
    
    
    3,777Equity in net losses (income) of affiliated companies
    
    
    58
    
    
    
    36
    
    
    
    (16
    )
    
    
    (30
    )
    
    
    48Income (loss) from continuing operations
    
    
    15,054
    
    
    
    12,992
    
    
    
    (2,428
    )
    
    
    5,122
    
    
    
    30,740Income (loss) from discontinued operations
    
    
    55
    
    
    
    (261
    )
    
    
    (2,349
    )
    
    
    168
    
    
    
    (2,387
    )Net income (loss)
    
    ¥
    15,109
    
    
    ¥
    12,731
    
    
    ¥
    (4,777
    )
    
    ¥
    5,290
    
    
    ¥
    28,353Per share data:Earning per share  basicIncome (loss) from continuing operations
    
    ¥
    103.86
    
    
    ¥
    89.62
    
    
    ¥
    (16.85
    )
    
    ¥
    36.47
    
    
    ¥
    214.04Income (loss) from discontinued operations
    
    
    0.38
    
    
    
    (1.80
    )
    
    
    (16.31
    )
    
    
    1.20
    
    
    
    (16.62
    )Net income (loss)
    
    
    104.24
    
    
    
    87.82
    
    
    
    (33.16
    )
    
    
    37.67
    
    
    
    197.42Earning per share  dilutedIncome (loss) from continuing operations
    
    ¥
    100.91
    
    
    ¥
    87.05
    
    
    ¥
    (16.85
    )
    
    ¥
    36.47
    
    
    ¥
    210.49Income (loss) from discontinued operations
    
    
    0.36
    
    
    
    (1.75
    )
    
    
    (16.31
    )
    
    
    1.20
    
    
    
    (16.37
    )Net income (loss)
    
    
    101.27
    
    
    
    85.30
    
    
    
    (33.16
    )
    
    
    37.67
    
    
    
    194.12Cash dividends
    
    ¥
    30.00
    
    
    ¥
    0.00
    
    
    ¥
    30.00
    
    
    ¥
    0.00
    
    
    ¥
    60.00
  F-72




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##### Table of Contents



NIDEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
 U.S. dollars in thousandsFirst
    
    
    Second
    
    
    Third
    
    
    FourthQuarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    TotalNet sales
    
    $
    1,780,994
    
    
    $
    1,937,015
    
    
    $
    1,437,300
    
    
    $
    1,089,810
    
    
    $
    6,245,119Operating expenses:Cost of products sold
    
    
    1,384,557
    
    
    
    1,489,911
    
    
    
    1,134,602
    
    
    
    906,872
    
    
    
    4,915,942Selling, general and administrative expenses
    
    
    134,531
    
    
    
    145,098
    
    
    
    130,327
    
    
    
    117,327
    
    
    
    527,283Research and development expenses
    
    
    74,672
    
    
    
    74,112
    
    
    
    70,182
    
    
    
    55,533
    
    
    
    274,4991,593,760
    
    
    
    1,709,121
    
    
    
    1,335,111
    
    
    
    1,079,732
    
    
    
    5,717,724Operating income
    
    
    187,234
    
    
    
    227,894
    
    
    
    102,189
    
    
    
    10,078
    
    
    
    527,395Other income (expense):Interest and dividend income
    
    
    6,434
    
    
    
    6,474
    
    
    
    7,849
    
    
    
    5,131
    
    
    
    25,888Interest expense
    
    
    (3,706
    )
    
    
    (3,491
    )
    
    
    (3,533
    )
    
    
    (3,563
    )
    
    
    (14,293
    )Foreign exchange gain (loss), net
    
    
    48,804
    
    
    
    (21,592
    )
    
    
    (130,591
    )
    
    
    65,834
    
    
    
    (37,545
    )(Loss) gain on marketable securities, net
    
    
    (244
    )
    
    
    (336
    )
    
    
    1,293
    
    
    
    (13,998
    )
    
    
    (13,285
    )Other, net
    
    
    (3,533
    )
    
    
    (2,311
    )
    
    
    1,639
    
    
    
    (5,191
    )
    
    
    (9,396
    )47,755
    
    
    
    (21,256
    )
    
    
    (123,343
    )
    
    
    48,213
    
    
    
    (48,631
    )Income (loss) from continuing operations before
income taxes
    
    
    234,989
    
    
    
    206,638
    
    
    
    (21,154
    )
    
    
    58,291
    
    
    
    478,764Income taxes
    
    
    (59,971
    )
    
    
    (53,701
    )
    
    
    (1,741
    )
    
    
    (11,473
    )
    
    
    (126,886
    )Income (loss) from continuing operations before
minority interest and equity in earnings of
affiliated companies
    
    
    175,018
    
    
    
    152,937
    
    
    
    (22,895
    )
    
    
    46,818
    
    
    
    351,878Minority interest in income of consolidated
subsidiaries
    
    
    21,175
    
    
    
    20,309
    
    
    
    1,985
    
    
    
    (5,019
    )
    
    
    38,450Equity in net losses (income) of affiliated companies
    
    
    590
    
    
    
    367
    
    
    
    (163
    )
    
    
    (305
    )
    
    
    489Income (loss) from continuing operations
    
    
    153,253
    
    
    
    132,261
    
    
    
    (24,717
    )
    
    
    52,142
    
    
    
    312,939Income (loss) from discontinued operations
    
    
    559
    
    
    
    (2,657
    )
    
    
    (23,914
    )
    
    
    1,712
    
    
    
    (24,300
    )Net income (loss)
    
    $
    153,812
    
    
    $
    129,604
    
    
    $
    (48,631
    )
    
    $
    53,854
    
    
    $
    288,639Per share data:Earning per share  basicIncome (loss) from continuing operations
    
    $
    1.06
    
    
    $
    0.91
    
    
    $
    (0.17
    )
    
    $
    0.37
    
    
    $
    2.18Income (loss) from discontinued operations
    
    
    0.00
    
    
    
    (0.02
    )
    
    
    (0.17
    )
    
    
    0.01
    
    
    
    (0.17
    )Net income (loss)
    
    
    1.06
    
    
    
    0.89
    
    
    
    (0.34
    )
    
    
    0.38
    
    
    
    2.01Earning per share  dilutedIncome (loss) from continuing operations
    
    $
    1.03
    
    
    $
    0.89
    
    
    $
    (0.17
    )
    
    $
    0.37
    
    
    $
    2.14Income (loss) from discontinued operations
    
    
    0.00
    
    
    
    (0.02
    )
    
    
    (0.17
    )
    
    
    0.01
    
    
    
    (0.16
    )Net income (loss)
    
    
    1.03
    
    
    
    0.87
    
    
    
    (0.34
    )
    
    
    0.38
    
    
    
    1.98Cash dividends
    
    $
    0.31
    
    
    $
    0.00
    
    
    $
    0.31
    
    
    $
    0.00
    
    
    $
    0.61
  F-73