Nidec forms independent committee to probe accounting irregularities

Nidec Corporation has established a third-party committee to investigate suspected improper accounting practices, including arbitrary timing of asset write-downs. This follows a notification to the Audit and Supervisory Committee on July 22, 2025, from Nidec Techno Motor Corporation regarding a potential improper accounting practice of a 200 million yen lump-sum payment by its Chinese subsidiary. An internal investigation revealed additional documents suggesting potential involvement or knowledge of management in these irregularities across Nidec and its group companies.

The third-party committee, comprising independent legal and accounting experts, will investigate these issues, calculate financial impact, determine root causes, and propose recurrence prevention measures. Separately, Nidec also announced the status of its own share repurchase program. For the period from August 1, 2025, through August 31, 2025, Nidec repurchased 0 shares for a total of 0 yen. The company's board had previously authorized a repurchase plan on May 27, 2025, to acquire up to 13,000,000 shares for a maximum of 35 billion yen between May 28, 2025, and May 27, 2026.

Trade and customs issues related to NIDEC FIR INTERNATIONAL S.R.L., for which a deadline extension was previously granted, are outside the scope of the new third-party committee's investigation. Nidec expressed its full cooperation with the committee and sincere apologies to stakeholders for the concerns caused by these developments.