Recognition of Extraordinary Losses and Gains in Non-Consolidated Financial Statements
NIDEC CORPORATION (the Company) and its group companies
Multiple sites of the Company and its group, affiliated companies, and subsidiary businesses subject to the absorption-type company split (specific site and product names Not disclosed)
The identification of numerous accounting irregularities, including the postponement of recognizing inventory valuation losses, avoidance of impairment accounting for fixed assets, and capitalization of expenditures that should have been expensed, with the involvement or knowledge of the management of the Company and its group companies. In addition, the net assets of certain subsidiaries decreased as a result of corrections to the financial results of affiliated companies and other matters, and provisions and other items were reviewed in connection with the absorption-type company split.
Extraordinary losses of ¥330.9 billion and extraordinary gains of ¥54.3 billion were recognized in the non-consolidated financial results. Investigation expenses and other costs of ¥30.5 billion and the provision for contract losses of ¥6.8 billion will be reflected in the consolidated financial results. The other items disclosed will be eliminated in the consolidated financial statements and will have no impact on consolidated performance.
Fiscal year ending March 2026
Information on revisions to the earnings forecast Not disclosed. Investigation expenses and other costs, as well as the provision for contract losses, will be reflected in the annual securities report for the fiscal year ending March 2026 and the financial results summary for the fiscal year ending March 2026 [IFRS] (consolidated). The other items will have no impact on consolidated performance.
Related procedures
Investigation by a third-party committee
Company response
An independent committee was established by the Company on 3 September 2025. The name of the committee chair Not disclosed.
If any matters requiring disclosure arise, they will be announced promptly.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses and Gains in Non-Consolidated Financial Statements |
| Date of occurrence | Non-consolidated financial results for the fiscal year ending March 2026 (specific recognition date Not disclosed) |
| Date recognized / date notice received | 3 September 2025 (date the independent committee was established; specific date on which the concerns were identified Not disclosed) |
| Subject Entity | NIDEC CORPORATION (the Company) and its group companies |
| Target Locations / Products | Multiple sites of the Company and its group, affiliated companies, and subsidiary businesses subject to the absorption-type company split (specific site and product names Not disclosed) |
| Cause | The identification of numerous accounting irregularities, including the postponement of recognizing inventory valuation losses, avoidance of impairment accounting for fixed assets, and capitalization of expenditures that should have been expensed, with the involvement or knowledge of the management of the Company and its group companies. In addition, the net assets of certain subsidiaries decreased as a result of corrections to the financial results of affiliated companies and other matters, and provisions and other items were reviewed in connection with the absorption-type company split. |
| Amount of Impact on Business Performance | Extraordinary losses of ¥330.9 billion and extraordinary gains of ¥54.3 billion were recognized in the non-consolidated financial results. Investigation expenses and other costs of ¥30.5 billion and the provision for contract losses of ¥6.8 billion will be reflected in the consolidated financial results. The other items disclosed will be eliminated in the consolidated financial statements and will have no impact on consolidated performance. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | Information on revisions to the earnings forecast Not disclosed. Investigation expenses and other costs, as well as the provision for contract losses, will be reflected in the annual securities report for the fiscal year ending March 2026 and the financial results summary for the fiscal year ending March 2026 [IFRS] (consolidated). The other items will have no impact on consolidated performance. |
| Type of litigation or proceeding | Investigation by a third-party committee |
| Investigation structure | An independent committee was established by the Company on 3 September 2025. The name of the committee chair Not disclosed. |
| Outlook | If any matters requiring disclosure arise, they will be announced promptly. |
| Planned follow-up disclosure | If any matters requiring disclosure arise, they will be announced promptly. |
Items this document does not state (12)
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.This followed the identification of accounting irregularities, including the postponement of recognizing inventory valuation losses, avoidance of impairment accounting for fixed assets, and capitalization of expenditures that should have been expensed, with the involvement or knowledge of the management of the Company and its group companies. It also resulted from investigation expenses associated with the review of the financial results, decreases in the net assets of certain subsidiaries due to corrections to the financial results of affiliated companies, and revisions to provisions and other items associated with the absorption-type company split.