Nidec will hold an unusual press conference attended by the head of its audit firm. With a disclaimer of opinion on the relevant fiscal year for the second consecutive year, efforts to maintain its listing are in focus.
Nidec will hold a press conference at its Kyoto head office from 4 p.m. on the 1st. Following PwC Japan's determination that it could not express an opinion on the securities report for the fiscal year ended March 2026 for the second consecutive year, President Kaida Michio (戒田理夫) is scheduled to explain the company's turnaround measures publicly for the first time. PwC's representative executive officer Kubota Masataka (久保田正崇) will also attend.
PwC pointed out that some of the company's officers and employees had held positions of responsibility in the financial reporting process, and declined to express an opinion due to insufficient audit evidence. Former president Kishida Mitsuya (岸田光哉) suddenly resigned on 29 September, while the third-party committee's report includes a statement that the company regarded the audit firm as an easy party to deal with.
The market reaction was severe, with Nidec shares briefly falling 18% to ¥1,888 in the Tokyo market on the 1st. The company's reported operating loss for fiscal 2026 was ¥518.9 billion due to massive impairment losses, with impairment losses in its main divisions totaling ¥632.0 billion.
Nidec acknowledged material weaknesses in its internal controls and indicated that it would work to rectify its governance and compliance systems. To maintain its listing, the company must submit a report on the status of improvements to its internal controls to the Nagoya Stock Exchange by the end of October, making the upcoming assessment a critical juncture for management.