Disclaimer of opinion in the audit report on the consolidated financial statements and financial statements included in the annual securities report for the fiscal year ending March 2026, disclaimer of conclusion in the interim review report on the condensed quarterly consolidated financial statements included in the earnings summary for the third quarter of the fiscal year ending March 2026, and disclaimer of opinion in the internal control audit report for the fiscal year ending March 2026
NIDEC CORPORATION and its consolidated subsidiaries
A wide range of sites operated by the company and group companies, and multiple production sites
Early recognition of revenue, under-provisioning of reserves, overstatement of inventories, avoidance of impairment of fixed assets and capitalization of costs, all with the involvement or awareness of management; provision of inaccurate or misleading information to the external auditor, concealment of related documents and provision of falsified records; improper quality-related conduct; and the incomplete implementation of some personnel corrective actions
Recognized impairment losses of ¥632,220 million, impairment losses on shares of affiliates of ¥183,543 million, impairment losses on investments in affiliates of ¥2,223 million, and provision for losses on businesses of affiliates of ¥28,397 million. Underreported customs duties of $94.1 million (approximately ¥14,160 million, including interest) related to import transactions were identified, and the related expenses and liabilities were corrected.
Fiscal year ending March 2026. For the condensed quarterly consolidated financial statements for the third quarter, the cumulative nine-month period from 1 April 2025 to 31 December 2025
Company response
A third-party committee was established on 3 September 2025. An investigation report was received from the third-party committee on 27 February 2026, followed by an investigation report supplement serving as the final report on 17 April 2026. The company's investigations into quality control and trade transactions and customs duties have also been completed.
Personnel corrective action is being implemented for officers and employees who were involved in, instructed or were aware of improper accounting treatment and other matters, or who gave false explanations to the external auditor, but some actions remain incomplete. Reductions in compensation, resignations and other measures: Not disclosed
Related procedures
Disclaimer of opinion in the audit report, disclaimer of conclusion in the interim review report, and disclaimer of opinion in the internal control audit report
We take the circumstances that led to the disclaimer of the audit opinion extremely seriously and will respond appropriately.
| Item | Details |
|---|---|
| Event name | Disclaimer of opinion in the audit report on the consolidated financial statements and financial statements included in the annual securities report for the fiscal year ending March 2026, disclaimer of conclusion in the interim review report on the condensed quarterly consolidated financial statements included in the earnings summary for the third quarter of the fiscal year ending March 2026, and disclaimer of opinion in the internal control audit report for the fiscal year ending March 2026 |
| Date of occurrence | 30 September 2026 (date the audit report was received) |
| Date recognized / date notice received | 30 September 2026 (date the audit report was received) |
| Subject Entity | NIDEC CORPORATION and its consolidated subsidiaries |
| Target Locations / Products | A wide range of sites operated by the company and group companies, and multiple production sites |
| Cause | Early recognition of revenue, under-provisioning of reserves, overstatement of inventories, avoidance of impairment of fixed assets and capitalization of costs, all with the involvement or awareness of management; provision of inaccurate or misleading information to the external auditor, concealment of related documents and provision of falsified records; improper quality-related conduct; and the incomplete implementation of some personnel corrective actions |
| Amount of Impact on Business Performance | Recognized impairment losses of ¥632,220 million, impairment losses on shares of affiliates of ¥183,543 million, impairment losses on investments in affiliates of ¥2,223 million, and provision for losses on businesses of affiliates of ¥28,397 million. Underreported customs duties of $94.1 million (approximately ¥14,160 million, including interest) related to import transactions were identified, and the related expenses and liabilities were corrected. |
| Accounting period in which recognized | Fiscal year ending March 2026. For the condensed quarterly consolidated financial statements for the third quarter, the cumulative nine-month period from 1 April 2025 to 31 December 2025 |
| Type of litigation or proceeding | Disclaimer of opinion in the audit report, disclaimer of conclusion in the interim review report, and disclaimer of opinion in the internal control audit report |
| Investigation structure | A third-party committee was established on 3 September 2025. An investigation report was received from the third-party committee on 27 February 2026, followed by an investigation report supplement serving as the final report on 17 April 2026. The company's investigations into quality control and trade transactions and customs duties have also been completed. |
| Directors' and officers' liability | Personnel corrective action is being implemented for officers and employees who were involved in, instructed or were aware of improper accounting treatment and other matters, or who gave false explanations to the external auditor, but some actions remain incomplete. Reductions in compensation, resignations and other measures: Not disclosed |
| Outlook | We take the circumstances that led to the disclaimer of the audit opinion extremely seriously and will respond appropriately. |
Items this document does not state (13)
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 audit firm was unable to obtain sufficient appropriate audit evidence because personnel corrective action had not been completed for some officers and employees who were involved in or aware of improper accounting treatment and other matters, and those personnel continued to be involved in the financial reporting process. In addition, the audit firm was unable to determine the impact on the financial statements of material deficiencies in internal control, the calculation of impairment losses, the restatement of comparative information and other matters.