Nidec (OTCPK:NJDC.Y) Update / briefing Transcript

Nidec Corporation Conference Call Summary Company Overview - Company: Nidec Corporation (OTCPK:NJDC.Y) - Date of Call: January 28, 2026 - Key Speakers: - Mr. Mitsuya Kishida, President and CEO - Mr. Kazuo Nakagawa, Vice President and CFO - Mr. Masayuki Minai, Vice President and Chief Compliance Officer Core Points and Arguments Earnings Report and Special Alert Status - Nidec apologized for the delay in disclosing Q3 earnings for fiscal year 2025, which led to its stock being placed on special alert by the Tokyo Stock Exchange [2][3] - An improvement plan was submitted to the Tokyo Stock Exchange aimed at reforming internal management and lifting the special alert status [2][3] Improvement Plan and Corporate Reform - The improvement plan is a response to ongoing investigations by a third-party committee, which is expected to provide an initial report by the end of February [3][4] - The plan focuses on fundamental reforms in governance, organizational culture, and internal management systems [4][5] - Nidec aims to establish a corporate culture that prioritizes ethical standards and transparency [5][6] Internal Management and Governance - The company has formed a Corporate Reform Committee to analyze issues and implement the improvement plan [5][6] - Discussions have been held with mid-level employees to foster a culture of open communication and transparency [6][8] - The plan includes measures to address suspected improper accounting practices and improve internal audits and whistleblowing systems [11][12] Financial Performance and Business Operations - Order status remains strong, with no major changes to production plans, particularly in AI-related growth and battery sectors [18][19] - Nidec has ample cash flow and no concerns regarding borrowing facilities, ensuring smooth operations [19] - The company is committed to maintaining business relationships with customers and suppliers despite the ongoing challenges [17][19] Future Outlook and M&A Strategy - The company has frozen M&A projects until further notice, with no immediate plans to resume [63] - Future M&A strategies will be discussed in light of the ongoing corporate reform and improvement plan [63][64] Third-Party Committee and Accountability - The Third-Party Committee is focused on identifying root causes of issues within the company, including governance and accounting practices [22][57] - All individuals, including former Chairman Mr. Nagamori, will be subject to assessment by the Third-Party Committee [41][51] Additional Important Points - Nidec's management acknowledges the need for a cultural shift towards long-term investment and ethical practices, moving away from a focus on short-term profit generation [24][67] - The company is committed to a transparent process in addressing past issues and implementing necessary reforms [19][24] - The upcoming reports from the Third-Party Committee will play a crucial role in shaping the future direction of the company [19][60] This summary encapsulates the key discussions and strategic directions outlined during the conference call, reflecting Nidec's commitment to reform and transparency in the wake of recent challenges.