Receipt of the Investigation Report (Supplement) as the Independent Committee's Final Report and the Company's Response
NIDEC CORPORATION and the NIDEC Group
The NIDEC Group's various locations, primarily goodwill and property, plant and equipment related to the automotive business
Excessive pressure to deliver results, the concentration of authority in Nagamori (永守氏), the failure of the accounting, internal audit and Audit & Supervisory Board Committee functions to provide effective checks, and insincere responses to the accounting auditor
Company response
The duties of the Company's former Executive Vice President Valter Taranzano (suspended effective 2 March 2026)
Independent committee. Its establishment was decided on 3 September 2025. The chair was Hirao Satoru (平尾覚), and the members were Inoue Torayoshi (井上寅喜) and Shirai Makoto (白井真). Investigations by FIR and other internal teams also involved external experts.
Establishment of guidelines concerning country-of-origin determinations, tariff classifications and free trade agreements; review of business processes relating to import and export transactions; and trade compliance training for employees
The Company plans to take the necessary personnel actions. Former Executive Vice President Valter Taranzano changed from Executive Vice President to retired effective 23 March 2026. The Company plans to determine whether to pursue claims for damages or other legal measures against current and former directors, Audit & Supervisory Board members or executive officers.
The negative impact on net assets in the consolidated financial statements as of the end of the first quarter of fiscal 2025 is approximately ¥139.7 billion. The cumulative impact on revenue in the consolidated financial statements is ▲¥33.1 billion, operating profit is ▲¥166.4 billion, and profit for the period is ▲¥160.7 billion (unit: ¥100 million). Additional tariffs, including interest, are expected to total US$69.7 million (approximately ¥11.14 billion). Additional impairment losses on goodwill and property, plant and equipment may need to be recognized, with the amount under consideration expected to be approximately ¥250 billion.
Prior periods (fiscal 2019 and earlier, fiscal 2020, fiscal 2021, fiscal 2022, fiscal 2023, fiscal 2024 and the first quarter of fiscal 2025) and the fiscal year ended March 2026. Additional tariffs have been calculated for the period from 1 April 2021 to 30 September 2025, and the amount for the period from 1 October 2025 to 31 March 2026 will be calculated in due course.
Related procedures
Investigation by an independent committee and voluntary disclosure procedures with U.S. Customs and Border Protection (CBP)
U.S. Customs and Border Protection (CBP) and the Tokyo Stock Exchange, Inc.
The Company will promptly revise its improvement plan and status report and implement the revised improvement plan. It will submit an internal management system confirmation report to the Tokyo Stock Exchange and amend prior-period securities reports and other filings. It will proceed with the voluntary disclosure procedures with CBP.
After finalizing the impact on prior-period financial statements and completing the necessary financial closing procedures, the Company will proceed with amended disclosures and the filing of the securities report for the fiscal year ended March 2026 as soon as practicable.
| Item | Details |
|---|---|
| Event name | Receipt of the Investigation Report (Supplement) as the Independent Committee's Final Report and the Company's Response |
| Date of occurrence | 17 April 2026 (the date on which the Investigation Report (Supplement), serving as the independent committee's final report, was received) |
| Date recognized / date notice received | 17 April 2026 |
| Subject Entity | NIDEC CORPORATION and the NIDEC Group |
| Target Locations / Products | The NIDEC Group's various locations, primarily goodwill and property, plant and equipment related to the automotive business |
| Cause | Excessive pressure to deliver results, the concentration of authority in Nagamori (永守氏), the failure of the accounting, internal audit and Audit & Supervisory Board Committee functions to provide effective checks, and insincere responses to the accounting auditor |
| Amount of Impact on Business Performance | The negative impact on net assets in the consolidated financial statements as of the end of the first quarter of fiscal 2025 is approximately ¥139.7 billion. The cumulative impact on revenue in the consolidated financial statements is ▲¥33.1 billion, operating profit is ▲¥166.4 billion, and profit for the period is ▲¥160.7 billion (unit: ¥100 million). Additional tariffs, including interest, are expected to total US$69.7 million (approximately ¥11.14 billion). Additional impairment losses on goodwill and property, plant and equipment may need to be recognized, with the amount under consideration expected to be approximately ¥250 billion. |
| Accounting period in which recognized | Prior periods (fiscal 2019 and earlier, fiscal 2020, fiscal 2021, fiscal 2022, fiscal 2023, fiscal 2024 and the first quarter of fiscal 2025) and the fiscal year ended March 2026. Additional tariffs have been calculated for the period from 1 April 2021 to 30 September 2025, and the amount for the period from 1 October 2025 to 31 March 2026 will be calculated in due course. |
| Type of litigation or proceeding | Investigation by an independent committee and voluntary disclosure procedures with U.S. Customs and Border Protection (CBP) |
| Court or authority | U.S. Customs and Border Protection (CBP) and the Tokyo Stock Exchange, Inc. |
| Suspended operations | The duties of the Company's former Executive Vice President Valter Taranzano (suspended effective 2 March 2026) |
| Investigation structure | Independent committee. Its establishment was decided on 3 September 2025. The chair was Hirao Satoru (平尾覚), and the members were Inoue Torayoshi (井上寅喜) and Shirai Makoto (白井真). Investigations by FIR and other internal teams also involved external experts. |
| Measures to prevent recurrence | Establishment of guidelines concerning country-of-origin determinations, tariff classifications and free trade agreements; review of business processes relating to import and export transactions; and trade compliance training for employees |
| Directors' and officers' liability | The Company plans to take the necessary personnel actions. Former Executive Vice President Valter Taranzano changed from Executive Vice President to retired effective 23 March 2026. The Company plans to determine whether to pursue claims for damages or other legal measures against current and former directors, Audit & Supervisory Board members or executive officers. |
| Outlook | The Company will promptly revise its improvement plan and status report and implement the revised improvement plan. It will submit an internal management system confirmation report to the Tokyo Stock Exchange and amend prior-period securities reports and other filings. It will proceed with the voluntary disclosure procedures with CBP. |
| Planned follow-up disclosure | After finalizing the impact on prior-period financial statements and completing the necessary financial closing procedures, the Company will proceed with amended disclosures and the filing of the securities report for the fiscal year ended March 2026 as soon as practicable. |
Items this document does not state (9)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The independent committee identified excessive pressure to deliver results, the concentration of authority in Nagamori (永守氏), and the failure of the accounting, internal audit and Audit & Supervisory Board Committee functions to provide effective checks as causes of the accounting irregularities.