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  "documentTitle": "Nidec Corp. (6594 JP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-13 00:00:00",
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  "notes": "The slide uses a combination of anecdotal evidence (quotes from former employees) and hard financial data to challenge the company's narrative of successful M&A.",
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      "text": "When Nidec acquired ASI, it projected that it would increase the OP margin from the mid-single digits to 10%. ASI’s financials show this has not yet happened at least as of March 31, 2015.",
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      "text": "Ansaldo Sistemi Industriali S.p.A.: Nidec's 2012 acquisition of ASI has generated no meaningful improvement through FY 2014. ASI was approximately 160 years old at the time of the acquisition, and makes industrial motors...",
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      "text": "Nidec seems at least partly responsible for the seemingly widespread perception that it creates significant value through acquisitions. When Mr. Nagamori was asked on the FY 2011 call how realistic his 10% operating profit margin goal was...",
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      "text": "Our conversations with two former ASI employees who were there at the time of the sale offers some surprising reasons why this acquisition has not (from our perspective) met expectations.",
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      "text": "Nidec was supremely confident about its ability to significantly improve ASI's profitability at the time of the acquisition. The quote at the beginning of this section in which Mr. Nagamori admonished the analyst...",
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      "text": "A former senior of Emerson motors and controls who, subsequent to the sale to Nidec, helped Nidec evaluate acquisition opportunities, gave an opinion that “I don't want to say there was no strategy...",
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      "kind": "quote",
      "text": "I don't want to say there was no strategy. You know, [Nagamori] just -- he wanted to become the world's biggest motor maker, you know, and things that were somewhat related, you know, set that strategy. It was a little bit - it was definitely a lower hurdle than what Emerson would have used, I'll say that. — Former senior of Emerson motors and controls",
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      "kind": "source-note",
      "text": "91 FY2011 Call. 92 Emerson Source A transcript. 93 http://www.nidec.com/en-EU/corporate/news/2012/news0029/ 94 FY2011 Call.",
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      "text": "Source: European Business Register",
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      "kind": "table",
      "text": "ASI Summary Financials Comparison (€ millions) CY 2011 FY 2014 Change Revenue 241.1 196.3 -18.6% Operating Income 13.7 5.5 -59.9% OP Margin 5.7% 2.8% Net Income 9.1 3.8 -58.2%",
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