Overview of the current issues

Questions arose that inappropriate accounting transactions may have been conducted on financial figures that the Nidec Group disclosed to investors and others.

Accordingly, Nidec established a third-party committee to thoroughly investigate and identify the root causes of those suspected transactions from the past.

With the Third-party Committee’s investigation ongoing and the impact of the aforementioned suspected transactions unclear, we received from our accounting auditor our securities report for the fiscal year ended March 2025 with a disclaimer of opinion.

Under these circumstances, on October 28, 2025, the Tokyo Stock Exchange, where Nidec’s stock is listed, placed it on special alert, citing a need for us to improve our internal management system.

As the first step, we will fully cooperate with the Third-party Committee’s investigation to identify every single issue and its root cause. Further, we will launch improvement and recurrence prevention actions for the issues we can start working on first to regain people’s trust in Nidec as soon as we can.