Nidec (6594) investor relations material

Leadership and governance

• Michio Kaida became president on September 29, replacing Mitsuya Kishida, who resigned; Masayuki Minai became representative director and senior vice president.

• The nomination committee used a third-party organization and candidate interviews, and the board unanimously decided to replace Kishida.

• The board cited impairment losses and Kishida’s reported inappropriate words and conduct; legal responsibility remains under separate investigation.

• Kaida set restoring trust, sound financial results, employee development and quality products as priorities.

Audit, restatements and internal controls

• PwC disclaimed an opinion on FY ended March 2026 statements, citing insufficient evidence to assess governance issues, impairment accounting and their financial-statement impact.

• Restatements for FY2021–FY2025 reduced net assets by JPY 476.9bn; cumulative operating-profit restatement for FY2020–FY2024 was -JPY 382.6bn.

• Internal control over financial reporting was deemed ineffective, with material weaknesses in oversight, risk reporting and audit functions; findings included misleading or inaccurate auditor information and concealed or revised documents.

• Management estimated roughly 20 suspect personnel were being identified and replaced across multiple countries; audit-system rebuilding was underway.

• Management aimed to resolve remaining audit issues by October-end; an internal-control improvement confirmation was scheduled for October 28.

Financial performance and outlook

• FY ended March 2026 operating loss was JPY 519.0bn, with JPY 632.1bn in impairment losses; free cash flow was JPY 98.0bn.

• Major impairment losses included ACIM (JPY 298.8bn), NPe (JPY 116.3bn) and NMOJ (JPY 73.1bn), amid overcapacity, market contraction and unprofitable investments.

• Impairments were concentrated in home appliances and automotive, reflecting weaker EV-market growth, intensified competition, excess capacity and revised profitability outlooks.

• The cumulative net-asset reduction across the five-year correction period was JPY 476.9bn, including JPY 208.0bn attributed to inappropriate accounting and JPY 288bn to impairment losses.

• FY ending March 2027 guidance: sales JPY 2.8tn and operating profit JPY 200bn; operating profit excluding non-recurring items was JPY 160bn.