Outlook of the issues

As part of the internal management system improvement actions by the Nidec Corporate Reform Committee (launched on October 30, 2025), we inspected our actual quality control system and change management process, and, on January 08, 2026, conducted a group-wide quality inspection at our production and development bases to understand quality-related issues and consider necessary corrective actions and recurrence prevention measures.

Outlook on the Events

While the aforementioned quality inspection is ongoing, more than 1,000 possible cases of inappropriate misconduct have been identified as of May 13, 2026, including material/component, process, and design changes unchecked by our customers, in multiple businesses.

Majority of the cases identified in the Nidec Group as of the above date are material/component, process, and design changes unchecked by our customers. Also identified are, among others, inappropriate treatment of testing and inspection data and inappropriate description of our products’ countries of origin.

While no problems have been identified that immediately affect the products’ functions or safety so far, we will promptly launch proper measures if any matter that should be reported is found.

Establishment of an Investigation Committee

With suspicious inappropriate conducts reported from multiple business bases, we determined to have objective investigations by outside experts with abundant experience and expertise on investigations into such matters to discuss effective improvement measures for more comprehensive identification of relevant facts and the problems’ causes, and further commit ourselves to product quality. Thus, we launched an investigation committee, shown below, on May 13, 2026.

Nidec will fully cooperate with the aforementioned committee’s investigations, we will launch an internal improvement promotion headquarters to communicate with our customers timely and discuss and execute effective recurrence prevention measures.

By identifying all the details of our issues, including the suspicions over quality found in the process of re-defining Nidec, and accomplishing the drastic improvement required for the re-definition, we will revive the Nidec Group as a company that everyone can trust in all areas, including accounting, quality, and governance.