Improving Our Internal Management System, Etc.

On February 27, 2026, Nidec Corporation (“Nidec” or the “Company”) received an investigation report from the Third-Party Committee, an independent body launched on September 3, 2025, regarding suspected inappropriate accounting practices conducted at the Company and other Nidec Group companies. While the Committee’s investigation is still ongoing, the report unveiled a number of occurrences of accounting misconduct, ranging from the avoidance from expense recognition to the overstatement of revenues, in many Nidec Group business bases.

Taking this matter extremely seriously, the Company is undertaking fundamental reforms of its management system. In addition, given a material impact expected on our financial results for past fiscal years, the Company has determined that it has no choice but to forgo the year-end dividend for the fiscal year ending March 2026.

Based on, among other things, the results of the examination by the Nidec Corporate Reform Committee (established on October 30, 2025), the Company compiled and disclosed an improvement plan on January 28, 2026, launching various measures to fundamentally improve Nidec’s internal management system and address other issues.

Going forward, the Company will further enhance its improvement plan based on the Third-Party Committee’s recommendations, while utilizing a newly built framework of reform to secure diversity and transparency for our organizations and shift from the current rigid system.

All Nidec Group executives and other employees will stay united and committed to successfully completing the fundamental improvement of our internal management system, etc., having our stock’s special-alert status lifted, and regaining trust as expeditiously as possible.