Efforts to resolve the disclaimer of opinion
NIDEC CORPORATION and the NIDEC Group
Domestic and overseas locations related to potential signatories of the management representation letter, 23 locations, approximately 50 locations, affiliated companies and their respective financial reporting processes
The involvement of officers and employees who engaged in inappropriate accounting and other matters in the financial reporting processes, and the inability to obtain sufficient appropriate audit evidence
Company response
An investigation into misconduct under the direction of the Audit and Supervisory Committee by the third-party committee established on 3 September 2025, and the engagement of external legal experts
Email reviews, checks for involvement in customs-related issues, checks for involvement in quality issues, résumé checks, checks of past whistleblowing and disciplinary records, reviews of the results of interviews concerning disciplinary action conducted by external legal experts, additional interviews with relevant individuals as necessary, training, obtaining written pledges, additional investigations when matters are identified, excluding signatories or preparing consideration memos, confirming appropriate responsibilities and authority relating to financial reporting, and responding to questions from the accounting auditor
Personnel corrective measures, including the reassignment of accounting managers and others based on an analysis of those involved. Based on the findings of the committee investigating officer responsibility, the Company decided to file lawsuits seeking damages against former officers and others
Related procedures
Audit procedures, submission of the internal management system confirmation letter, and the review by the Tokyo Stock Exchange for the lifting of the designation as a Security on Alert
Tokyo Stock Exchange, Inc. and the accounting auditor
Each accounting period for the fiscal year ended March 2026 and the fiscal year ended March 2025 and earlier
The Company will proceed with the additional procedures and take measures as necessary. The Company's additional procedures are scheduled for completion and reporting to the accounting auditor in November 2026, subject to conditions including that no further procedures are required. The Company plans to submit the internal management system confirmation letter to the Tokyo Stock Exchange on 30 October 2026, after which it will undergo a review for the lifting of the designation as a Security on Alert
The internal management system confirmation letter is scheduled to be submitted on 30 October 2026. The additional procedures are scheduled for completion and reporting in November 2026, but the audit completion date and the timing of the corrected report filing have not been determined
| Item | Details |
|---|---|
| Event name | Efforts to resolve the disclaimer of opinion |
| Date of occurrence | Additional matters requiring confirmation were identified after 30 September 2026, and some additional procedures remained ongoing as of 28 October 2026 |
| Date recognized / date notice received | Requests for additional procedures were received from the accounting auditor on 8 October 2026, 19 October 2026 and other dates |
| Subject Entity | NIDEC CORPORATION and the NIDEC Group |
| Target Locations / Products | Domestic and overseas locations related to potential signatories of the management representation letter, 23 locations, approximately 50 locations, affiliated companies and their respective financial reporting processes |
| Cause | The involvement of officers and employees who engaged in inappropriate accounting and other matters in the financial reporting processes, and the inability to obtain sufficient appropriate audit evidence |
| Accounting period in which recognized | Each accounting period for the fiscal year ended March 2026 and the fiscal year ended March 2025 and earlier |
| Type of litigation or proceeding | Audit procedures, submission of the internal management system confirmation letter, and the review by the Tokyo Stock Exchange for the lifting of the designation as a Security on Alert |
| Court or authority | Tokyo Stock Exchange, Inc. and the accounting auditor |
| Date of filing / date of action | The designation date as a Security on Alert was 28 October 2025 |
| Investigation structure | An investigation into misconduct under the direction of the Audit and Supervisory Committee by the third-party committee established on 3 September 2025, and the engagement of external legal experts |
| Measures to prevent recurrence | Email reviews, checks for involvement in customs-related issues, checks for involvement in quality issues, résumé checks, checks of past whistleblowing and disciplinary records, reviews of the results of interviews concerning disciplinary action conducted by external legal experts, additional interviews with relevant individuals as necessary, training, obtaining written pledges, additional investigations when matters are identified, excluding signatories or preparing consideration memos, confirming appropriate responsibilities and authority relating to financial reporting, and responding to questions from the accounting auditor |
| Directors' and officers' liability | Personnel corrective measures, including the reassignment of accounting managers and others based on an analysis of those involved. Based on the findings of the committee investigating officer responsibility, the Company decided to file lawsuits seeking damages against former officers and others |
| Outlook | The Company will proceed with the additional procedures and take measures as necessary. The Company's additional procedures are scheduled for completion and reporting to the accounting auditor in November 2026, subject to conditions including that no further procedures are required. The Company plans to submit the internal management system confirmation letter to the Tokyo Stock Exchange on 30 October 2026, after which it will undergo a review for the lifting of the designation as a Security on Alert |
| Planned follow-up disclosure | The internal management system confirmation letter is scheduled to be submitted on 30 October 2026. The additional procedures are scheduled for completion and reporting in November 2026, but the audit completion date and the timing of the corrected report filing have not been determined |
Items this document does not state (10)
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 identification and evaluation of officers and employees involved in inappropriate accounting and other matters, personnel corrective measures, and the eligibility verification and additional audit procedures requested by the accounting auditor have not been completed. The Company also cited the detection of additional matters requiring confirmation after 30 September and the resulting expansion of the subjects and scope of the procedures.