Outlook of the issues

On September 03, 2026, Nidec Corporation (“Nidec,” the “Company,” or “we”) established an independent third-party committee (the “Third-Party Committee”) to conduct comprehensive investigations into the cause of suspicion regarding the Nidec Group’s inappropriate accounting practices.

With, among other reasons, the Third-Party Committee’s investigations ongoing, and based on the possible material and extensive impact on the Company’s consolidated financial statements, we received from our financial auditors the audit report for Nidec’s securities report for the fiscal year ended March 31, 2025, stating that the auditors would issue the report with a disclaimer of opinion. These circumstances led Nidec’s stock to be designated on October 28, 2026 as a security on special alert by the Tokyo Stock Exchange, where we are listed, which cited a high necessity for us to improve our internal management system among other actions.

After a mid-term report issued on February 27, 2026, the Company received the final report from the Third-Party Committee on April 17, 2026. The report discloses a series of Nidec Group’s accounting misconducts, describes the results of cause analysis and provides suggestions for recurrence prevention of the misconducts.

Accordingly, the Company announced on April 27, 2026 a revised version of its improvement plan, reflecting suggestions from the final report. At present, based on this revised improvement plan, which is more effective than the initial plan issued in January, the entire Company is promoting drastic improvement actions for its internal management system and in other areas.

Major accounting misconducts identified in the investigations

Misconducts and errors using the following methods were identified at a number of Nidec’s business bases:

• Inventory assets

  Avoiding the booking of value-less raw materials and products’ impairment losses to postpone the recording of costs

• Fixed assets

  Inappropriate avoidance of the booking of impairment loss based on an unrealistic sales plans

• Capitalization of costs

  Recording of labor cost, which should be recorded as cost, as fixed assets, to delay the timing to record it as cost

• Profit recognition

  Inappropriate use of the reserves for returning subsidies and inappropriate recording of subsidies as profit

• Credit management

  Understatement of bad-loan reserves for uncollectible loans

Impact on the Company’s financial performance and dividends

Impact on net assets

With corrections to the identified misconducts and errors, the Company’s consolidated net assets as of the end of FY2025’s first quarter are expected to decrease by approximately 160.7 billion yen.

Credit management

Understatement of bad-loan reserves for uncollectible loans

Derivative impairment-associated risks

With the downward revision of the Company’s past-year profit/loss, an additional impairment loss may occur mainly on the automotive business-related “goodwill” and fixed assets (amount subject to examination: app. 250 billion yen*). Accordingly, individual fiscal years’ depreciation/amortization and tax expenses, etc. may change.

Year-end dividend

With, among other reasons, the investigation ongoing and material impacts expected on prior-year account closing as of March 03, 2026, the Company decided the amount of its dividends for the fiscal year ended March 31, 2026 to be zero.

*The specific amount of the financial impact may change subject to the results of future investigations.

Major events

• Jun. 27, 2025

  Nidec Corporation extends the deadline to submit its securities report.

• Sep. 03, 2025

  Nidec Corporation establishes Third-Party Committee.

• Sep. 26, 2025

  Nidec Corporation submits its securities report and internal control report.

• Oct. 23, 2025

  Nidec Corporation revises its corporate earnings and year-end dividend forecasts.

• Oct. 28, 2025

  Nidec Corporation’s stock is designated as a security on special alert.

• Oct. 30, 2025

  Nidec Corporation launches Nidec Corporate Reform Committee.

• Nov. 04, 2025

  Nidec Corporation posts an apology to its customers and executes a commitment line agreement.

• Nov. 14, 2025

  Nidec Corporation submits a policy for its improvement plan, and Q1&2 earnings summaries and semiannual report for the fiscal year ended March 31, 2026.

• Dec. 12, 2025

  Nidec Corporation submits drafts of its improvement plan and status report (to the Japan Exchange Regulation).

• Jan. 28, 2026

  Nidec Corporation submits its improvement plan and status report (to the Japan Exchange Regulation) and announces that the scheduled disclosure date of the financial results for the third quarter of the fiscal year ending March 31, 2026, will exceed 45 days after the quarter-end.

• Feb. 27, 2026

  Nidec Corporation receives an investigation report from the Third-Party Committee.

• Mar. 03, 2026

  Nidec Corporation discloses the investigation report and announces executive appointments.

• Apr. 17, 2026

  Nidec Corporation receives the final version of the investigation report from the Third-Party Committee.

• Apr. 27, 2026

  Nidec Corporation submits a revised version of its improvement plan and status report (to the Japan Exchange Regulation) and announces that the disclosure of the Financial Results for the fiscal year ended March 31, 2026, will be postponed.