Nidec to revise improvement plan based on panel report

Nidec to revise improvement plan based on panel report

Nidec to Revise Improvement Plan Based on Panel Report

Nidec Corporation has announced plans to revise its internal management improvement strategy following an ongoing investigation by an independent third-party committee. The company submitted its initial improvement plan to the Tokyo Stock Exchange (TSE) on January 28, 2026, in response to the TSE’s designation of its shares as a “Security on Special Alert” on October 28, 2025, citing weaknesses in governance and internal controls. However, the current plan is based on an internal review by Nidec’s Corporate Reform Committee, as the third-party investigation—established to address suspected accounting irregularities— remains incomplete.

The third-party committee, tasked with identifying root causes and accountability for the alleged misconduct, is expected to deliver an interim report by the end of February 2026. Nidec has stated it will incorporate findings from this report, along with other internal investigations, to refine its improvement measures. Key revisions may include adjustments to governance reforms, accounting policies, and corporate culture initiatives outlined in the original plan.

The company’s improvement plan includes six pillars: optimizing planning processes, enhancing accounting independence, reforming corporate culture, strengthening governance, improving internal controls, and clarifying accountability as detailed in the action plan. These measures aim to restore investor trust and meet TSE requirements for de-designating the special alert status. Nidec also plans to submit a confirmation document on its internal control system by October 28, 2026.

The ongoing scrutiny has already impacted Nidec’s financial reporting, including delayed disclosures and a revised earnings forecast for fiscal 2026. The company’s auditor issued a disclaimer of opinion for the 2024 fiscal year due to uncertainties surrounding the accounting issues. Nidec emphasized its commitment to transparency and compliance, stating it will continue updating stakeholders as investigations progress.

With the third-party committee’s findings expected soon, Nidec’s revised plan will be critical in addressing regulatory concerns and rebuilding credibility in the market.