Nidec (6594) Status update summary

Leadership and governance

• Michio Kaida became president on Sep 29 after Mitsuya Kishida’s resignation; Masayuki Minai became representative director and senior vice president.

• The nomination committee used a third-party organization and interviews to select candidates; the board approved the leadership changes on Sep 29.

• The board cited FY2025 impairment losses and Kishida’s inappropriate statements and conduct concerning financial reporting; legal responsibility remains under investigation.

• Kaida prioritized restoring trust, sound financial reporting, quality products and employee development; maintaining the listing is a stated mission.

FY2025 results and accounting corrections

• FY2025 operating loss was JPY519bn, with JPY632.1bn in impairment losses; net sales were JPY2,708.7bn, up 3.9% YoY.

• Impairments included home appliances and automotive, with major losses at ACIM (-JPY298.8bn), NPe (-JPY116.3bn) and NMOJ (-JPY73.1bn); drivers included overcapacity, market contraction and unprofitable investments.

• Free cash flow was JPY98bn; interest-bearing net debt fell JPY131.7bn YoY to JPY261.2bn.

• Restatements for FY2021–FY2025 reduced net assets by JPY476.9bn, including JPY208bn attributed to inappropriate accounting; cumulative FY2020–FY2024 operating-profit restatement was -JPY382.6bn.

• After corrections, net assets were JPY764bn and the equity ratio was 25.6%, versus 42.5% before corrections.

Audit and remediation

• PwC issued a disclaimer for FY ended Mar 2026, citing insufficient appropriate evidence on governance and accounting issues, impairment losses and comparative financial information.

• Audit concerns included misleading information, altered or withheld documents, manipulated quality-test records and preventive measures that did not work consistently.

• Internal control over financial reporting was deemed ineffective, with material weaknesses in oversight, risk reporting and audit functions.

• Minai said ~20 people in certain countries were under review for reassignment or replacement; actions to remove unsuitable personnel had begun.

• Management aimed to resolve remaining audit issues by end-October; the internal control confirmation report was scheduled for Oct 28, with Nov 13 results and the December midterm-plan timeline unchanged.