{ "docId": "019dd923-622c-750b-8b96-7f2e60571091", "docSlug": "9e3d3c9dc613", "documentTitle": "Nidec Corp. (6594 JP)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2016-12-13 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 37, "pageCount": 54, "prevPage": 36, "nextPage": 38, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 15, "notes": "The slide uses a skeptical tone to contrast management's claims of a 'technological edge' with historical patterns of over-promising (e.g., haptic technology).", "elementsJson": [ "paragraph", "data_table", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-7f2e60571091/37", "deckHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091#slide-37", "components": [ { "bbox": null, "kind": "callout", "text": "Nidec's description of its “technological edge” reminds us of Nidec’s once uber-bullish statements on haptic, and the resulting disappointing reality.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203f-7169-9f8d-d5626c10af96", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.74, "x": 0.13, "y": 0.631 }, "kind": "paragraph", "text": "Nidec's description of its 'technological edge' reminds us of Nidec's once uber-bullish statements on haptic, and the resulting disappointing reality.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "52b816a1-2183-40a2-a500-097b12d3a698", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.74, "x": 0.13, "y": 0.371 }, "kind": "paragraph", "text": "A number of investors appear to be excited about Nidec's provision of motors to a 'U.S. retail behemoth'... Based on our interview with a former senior Amazon.com Inc. drone program executive, as Amazon ramps its purchases... Nidec is likely to become a price taker.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "725dea37-fd47-4d98-9545-2b771902ef23", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.74, "x": 0.13, "y": 0.093 }, "kind": "paragraph", "text": "We understand that revenues from these categories... contribute approximately 5.2% to FY 2016 revenue. However, when excluding the portion of revenue from Nidec Sankyo's LCD robots... these exciting new areas only represent approximately 2.6%.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "98f6bfed-8646-4de5-97c4-a2a2c65bf67c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.66, "x": 0.17, "y": 0.558 }, "kind": "quote", "text": "Then that's the reason why we believe that we do have some technological edge to making those motors for drones, and that's the reason why we are just educating in that area.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8f588e8d-5b4b-4442-aa79-137198938979", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.66, "x": 0.17, "y": 0.684 }, "kind": "quote", "text": "Then for that point [haptic], we do believe that we do have technological superiority over our competitors.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa5134bb-2042-42e4-8dc3-9c9add67467b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Then that's the reason why we believe that we do have some technological edge to making those motors for drones, and that's the reason why we are just educating in that area.” — Masuo Yoshimatsu, Q1 2015 Call. “Then for that point [haptic], we do believe that we have technological superiority over our competitors.” — Nidec FY2014 Call.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-203f-7169-9f8d-d94381162e4c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.4, "x": 0.13, "y": 0.841 }, "kind": "source-note", "text": "Footnotes 124-128 detailing sources for revenue data and management quotes.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3314f842-58b7-4ba1-8a2d-306ed7922fc4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.74, "x": 0.13, "y": 0.235 }, "kind": "table", "text": "Table showing revenue and % of total sales for ADAS, LCD Robots, Lidar, Speed reducers, and US Retail behemoth from FY 2014 to FYE 2016.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "95d614c3-9c80-4275-8828-4cb75e4df2f1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.58, "x": 0.21, "y": 0.235 }, "kind": "title", "text": "Nidec Exciting Products Sales by Year and Percentage of Total Sales", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f87ec5e2-a833-49b1-a121-a93016d9066a", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "f429889e-c49a-4ead-b432-8917cf28de0d", "evidence": "Contrasting current drone motor claims with past haptic claims.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }