Nidec (6594) investor relations material

Investigation findings and legal action

• Nine former officers—six former directors, two former audit or Audit and Supervisory Committee members, and one former vice president and CFO—were deemed liable, with damages to be apportioned by contribution.

• Damages for Aug 2025–Aug 2026 were ¥27.633bn, covering investigation and audit costs and listing-agreement penalties; the amount may increase.

• On Oct 27, the Board and Audit and Supervisory Committee resolved to sue officers whose liability was acknowledged.

• Legal action over distributable-amount violations will be considered after past fiscal-year financial statements are corrected.

• The investigation cited profit-target-driven accounting decisions, efforts to secure auditor acceptance of departures from standards, and a longstanding misunderstanding of the accounting audit system.

Internal management reforms

• Reforms span compliance culture, whistleblowing, tiered training, board oversight, group governance, business planning, budget controls, internal audit and monitoring.

• A Written Confirmation of Internal Management System was scheduled for submission to TSE on Oct 30, following improvement work since designation as a security on special alert.

• Accounting measures include personnel actions, independent accounting functions, financial reporting and process redesign; customs and quality controls are also being strengthened.

Audit opinion and response

• The FY ended Mar 31, 2026 Annual Securities Report received a disclaimer of opinion; the disclaimer remained unchanged and the amended report could not be submitted with an audit opinion.

• FY2025 impairment and investment-valuation support was reported to the auditor; prior-year discussions continued, with additional auditor-requested work in progress.

• Procedures included eligibility reviews of 77 candidate signatories, re-verification of reporting processes involving 20 people, digital forensics for eight current officers and email screening; screening of 252 candidates remained incomplete Oct 28.

• Remaining procedures were targeted for completion by end-November, with PwC review to follow and further requests possible; audit completion timing was undetermined.

• Corrective FY2025 audit and FY2026 audit contracts had been concluded.