IntegratedReport2023 en

Integrated Report
2023
Introduction
Dreaming of the
next 50 years
Nidec marked its 50th anniversary on July 23,
2023, and started treading new paths to embrace
profound changes potentially involved in achieving
another 50 years of sustainable growth. Under the
watchword “One NIDEC,” we are taking consistent
steps forward to evolve from a founder-led company
into a founder-inspired, collectively led one.
The underlying idea of “One NIDEC” is to view
our diverse management resources (people,
goods, money, technology, and information) as
a coherent whole and optimally realign them
with the company’s shared objectives. With
particular reference to people management,
“One Nidec” represents an environment that helps
unleash individual potentials beyond differences
in nationality, race, gender, age, faith, cultural Welcome to Nidec Integrated Report 2023
background, or personality. When Nidec was founded in 1973, we dreamed of becoming
a global company representing Japan. Today, as we celebrate
Our march toward “One Nidec” started with a
our 50th anniversary, we are moving forward with our
few cornerstone events—unifying the company next dream: to become a top-rated global company that
names, establishing a Nomination Committee, continues to be needed by society for the next 50 years and
and formulating a succession plan for a seamless beyond. We believe that it is essential to realize sustainable
transition to a more collective, interactive management in order to coexist with and be needed by the
international community in the future. In other words, we
leadership style.
need to closely align our business strategies with solutions
Meanwhile, what remains unchanged is our
to universal issues and thereby to achieve consistent,
unwavering aspiration—fueled by passion, dynamic growth.
enthusiasm, and tenacity—for giving a concrete We began publishing the integrated report in 2021 with
shape to grand dreams. That has always been and the intention of incorporating the perspectives of our
will continue to be the cultural and ideological stakeholders into management to review the direction
of our business strategies. This year, Integrated Report
common thread running through Nidec from
2023 focuses on changes in our management structure
generation to generation. as we celebrate our 50th anniversary. Among the many
changes, we particularly focus on those related to people,
Over the next 50 years, the NIDEC Group aims to such as the transition to a collective management system,
become a truly global company that firmly stands the resulting changes in human resources strategies, and
the formulation of new personnel policies. In addition, we
on a unique culture and philosophy, which is like a
provide interview articles as a special feature on the five new
big tree supported by robust roots and trunk, with
executive vice presidents, who are of great interest to our
people from all over the world coming together stakeholders, so that everyone can learn more about their
and blossoming into various flowers. In order to backgrounds and ways of thinking.
make this dream come true, we will not be afraid This report has been created with reference to the IFRS
of change and will boldly take on the challenge Foundation’s International Integrated Reporting Framework
and the Ministry of Economy, Trade and Industry’s Guidance
of entering a new world through the creation of
for Collaborative Value Creation. We declare that the
excellent products. preparation processes and the contents of this report
are legitimate.
We hope this report gives you a good picture of our
sustainability journey and look forward to receiving your
valuable, candid feedback. We appreciate your continued
support as we strive to continuously improve our
corporate value.
Shigenobu Nagamori
Founder, Representative Director and Chairman
01 NIDEC CORPORATION INTEGRATED REPORT 2023

02
Introduction
Corporate Philosophies Table of Contents
Policy POLICY 01 Dreaming of the next 50 years 47 Materiality

02 Welcome to Nidec Integrated 47 Materiality
The aim of Nidec Corporation is to contribute to the development of society and the Report 2023 53 Environment
welfare of the general public around the world. Nidec aims to do so by supplying the 62 Products
highest quality products. Our company is sincerely and enthusiastically dedicated to 05 Management Message 65 Human Resources
05 Chairman’s Message 69 Supply Chain
the trinity of technology, skillfulness, and modern science. Thereby, Nidec strives to
07 President’s Message 71 Corporate Governance
promote the prosperity of our society, our company, and all our employees. 09 Executive Vice President
Interviews 87
Financial/Non-financial
Mission MISSION Data
15
Value Creation of Nidec 87 Financial Data
We contribute to the Earth by producing the highest quality motors in the world. Group
All Nidec employees work to the very best of their ability to send motors into the world. It is with these motors 89 Non-financial Data
and other products we make that we solve various issues such as the conservation of the global environment, 15 History of Nidec Group
and contribute to making better lives for people all over the world. 17 Value Creation Process 90 Corporate Information
90 Group Companies
Vision VISION 21 Value Creation Strategy
91 Company Profile
21 Business Operations 91 Stock Information
N
idec is a global company that grows sustainably for the next 100 years and beyond. 23 Performance Highlights 92 External Evaluation
25 Nidec Group’s Competitive
Nidec is the world’s leading solution-providing business group that solves numerous Advantages
problems for the people in the world. 27 Overview of the Medium-Term
Strategic Goal
Value VALUE 30 Financial Strategy
33 Human Resources Strategy
“Nidec Way” “The Challenging Road” 37 Technology Strategy
Three Corporate Policies: “Passion, Enthusiasm, and Tenacity,” “Work smart,”
and “Do your work now; do it without hesitation; do it until completed.” 39 Business Strategies
“Creativity,” “Respect,” “Collaboration,” “Integrity,” “Decision Making,” “Team Building,” 39 Small Precision Motors
and “Grow Talent.” 41 Automotive Products
43 Appliance, Commercial &
Discipline & Code DISCIPLINE / CODE Industrial Products
45 Other Products
3Q6S
even Articles of Nidec Employees, 3Ps (Be proactive, productive, and professional),
S
and eliminating six bad habits Reporting Period: April 1, 2022–March 31, 2023
Three Management Principles Three Basic Management Philosophies This report includes information before and after the reporting period.
hree Management Methods Three Management Attitudes Three Conditions for Success
T Reporting Guidelines
International Integrated Reporting Framework, IFRS Foundation
CSR Charter (social responsibility, respect for diversity, etc.) Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues
for Collaborative Value Creation, Ministry of Economy, Trade and Industry
GRI (Global Reporting Initiative) Sustainability Reporting Standards
ISO (International Organization for Standardization) 26000 Guidance Standard
on Social Responsibility
Disclaimer Regarding Forward-Looking Statements

The forecasts and forward-looking statements contained in this report are based on the information and forecasts available as of the
date of publication of this report. Please be aware that actual performance may vary significantly due to various uncertainties, such
The Nidec Group joined the UN Global Compact in August 2015 and officially announced its support for the 10 Principles.
as market price conditions and exchange rate fluctuations. Nidec undertakes no obligation to update any information regarding the
forward-looking statements contained in this report.
03 NIDEC CORPORATION INTEGRATED REPORT 2023 04

Chairman’s Message
“One Nidec” will keep us in sync with new
dynamics arising in the next 50 years.
Management Message
Eying Consolidated Net Sales of 10 Trillion Yen
Achieving consolidated net sales of 10 the counterparty. These so-called takeover
trillion yen is my long-cherished dream. bids are still uncommon or can often be
Admittedly, that is a lofty dream, but not controversial in Japan, but I find it very
impossible if Nidec people release their motivating to see the resulting benefits
full potentials. Well-matched business expand far beyond any one company,
acquisitions, not to mention innovative, or industry, into a vast variety of markets.
value-added products, will also help us Whenever a business acquisition comes
make it happen. into the picture as a viable option, I will
Nidec has historically leveraged M&As for spare no effort to share all my knowledge
business growth at a pace unmatched by and experiences with our new management
any other Japanese company, including a team to help them make the best
few attempts made without the consent of possible choice.
Marking the 50th Anniversary

Bringing “One NIDEC” into action
Fifty years ago, I started Nidec Corporation unprecedented challenges with
with three like-minded colleagues and greater resilience worthy of a truly After a few years of devoting a fair amount of company growth, powered by the shared
since then we have worked our way world-class enterprise. of energy to tackling pressing issues, such collaborative mindset of “Do it now; do it
to becoming an internationally active At the outset of FY2023, we shed our as the succession plan and slumping stock without hesitation; do it until completed.”
business with over 100,000 employees in Japanese brand name Nippon Densan prices, now I am seeing positive changes
47 countries and regions. Thanks to all our under a unified name Nidec, and then taking place in Nidec as it builds a solid September 2023
employees for their continued hard work placed it ahead of all the names of our basis for navigating the next 50 years.
and to our shareholders and stakeholders Japan-based subsidiaries. Marketing a vast I am excited to witness Nidec set out on
for supporting us on our journey, we are range of products under a single brand a journey of a profound, unprecedented
now proud to see our consolidated annual name will help expand our global market transformation where everyone’s
sales exceed 2.2 trillion yen to finally reach more effectively. contribution is recognized for his or her
place Nidec first among all Kyoto-based, On the governance front, our Nomination achievements, regardless of attributes such
internationally competitive firms. However, Committee selected five executive vice as academic background, seniority, age,
time waits for no one—or company. I hear presidents, one of whom will be appointed gender, or nationality. And it is only when
a warning bell signaling us to press ahead the president of Nidec Corporation in April that happens that we would deserve to be
with transformational changes to prepare 2024. The current president Hiroshi Kobe called a global enterprise in the true sense
ourselves for what the next 50 years will will be supporting the new president for of the word. I am strongly convinced that
bring. The coming transformation, whatever four years as new Chairman and CEO. like-minded Nidec colleagues numbering Shigenobu Nagamori
shape it might take, can be likened to I will be leaving all my current positions more than100,000 will unlock a new chapter Founder, Representative Director and Chairman
giving a rebirth to the company and will to assume the role of observing progress
mean a tough and testing time for us. under the new management team. My focus
I often use this analogy in front of people will continue to be on “walking the talk” on
here at Nidec lately to express my hope to corporate values.
see Nidec emerge stronger from a period of

President’s Message
We aim to become a top-rated global company
Management Message
by resolutely exploring a new world.
Aiming to Continue to Be a Socially Indispensable

Top-rated Global Company for the Next 50 Years
Our mission is to contribute through future. Nidec has signed an agreement with
our business to the resolution of Embraer, a global aircraft manufacturer
important issues common to humanity headquartered in Brazil, to establish a joint
and the advancement and spread of new venture related to electric drive systems
technologies that will be essential in for the aviation industry. By combining the
the future. technologies of both companies, we will
Business Strategies for FY2023 Climate change is one of the important work together to increase the possibilities of
issues common to all humankind. It may a new means of transportation for society in
In FY2022, Nidec’s consolidated net place sales expansion of the new generation be still fresh in your memory that UN the near future.
sales stood at a record high of ¥2,242.8 model of the electric vehicle (EV) drive Secretary-General António Guterres Our company intends to contribute to
billion, 17% higher Y/Y. On the other motor E-Axle at the center of our strategy. sounded the alarm, describing this the resolution of various issues related to
hand, operating profit decreased 41% Meanwhile, in the appliance, commercial and ever-increasing problem with the phrase the environment and society, and we dare
Y/Y to ¥100.1 billion due to posting of industrial businesses, which are also growth “era of global boiling.” We hope to help to jump into the world of technological
large-scale structural reform expenses. fields, we focus on capturing replacement solve climate change by promoting innovation under a management system
We have renewed our resolve to achieve demand for high-efficiency motors and decarbonization of society through the underpinned by thorough governance.
a V-shaped recovery in FY2023. green innovation-related demand. In the development of highly efficient and low- As a result of continuing these business
In FY2023, we will shift directions to a precision small motor business, we will cost EV motors and renewable energy- activities, we believe that Nidec will be
policy that emphasizes profitability. We will continue to meet IT-related demand while related solution businesses, such as a top-rated global company needed by
focus management efforts even more on focusing on developing new fields such as battery energy storage systems (BESS). society even 50 or 100 years from now.
achieving the plans set at the beginning electric motorcycle motors and small EV Meanwhile, we announced in June 2023
of the fiscal year and ensuring financial motors with an output of 30 kW or less. that we have entered the business of Flying September 2023
soundness, and we will begin building a In other product groups, we will aim to Cars (eVTOLs), one of the new technologies
solid foundation for growth over the next further expand the scale of our business by that will support future society. It is an
50 years. In our day-to-day operations, proactively utilizing M&A in product fields urgent issue to establish technology to
we will continue to make the most of our such as reducers, press machines, and efficiently and sustainably transport people
business execution capabilities, which machine tools handled by the Machinery and goods in urban areas with concentrated
are backed by our strengths of speedy and Automation Business Unit, which has populations. As a solution to this problem, Hiroshi Kobe
management and the spirit of “Do it until started operations this fiscal year. In the field eVTOL is attracting attention, and the Representative Director and President
completed.” of machine tools in particular, we believe that market is expected to expand in the near (Chief Operating Officer)
In the automotive products segment, enriching our product portfolio with a view to
which is considered one of the two major developing new markets will hold the key to
growth fields in our business portfolio, we our future.

Executive Vice President Interviews
At the extraordinary board of directors meeting held on Toshihiko Koseki
March 10, 2023, the board resolved to appoint five
executive vice presidents as of April 1, 2023. Having Mitsuya Kishida
Management Message
been rigorously examined by the Nomination Committee,
the five new executive vice presidents were selected
Yoshihisa Kitao
as individuals who have demonstrated outstanding Tatsuya Nishimoto
transformational leadership in their executive positions
at Nidec and president positions at its group company and
Toshiyuki Otsuka Biography
April 1983 Joined Nippon Steel Corporation
have contributed to business results. It was also confirmed April 2001 Senior Chief Researcher of Technology
Development Division
that they have sufficient potential as a president. October 2004 Professor, School of Engineering,
The University of Tokyo
We asked the five new executive vice presidents, who are April 2017 Executive Vice President of the University
expected to move the Nidec Group forward together with April 2018 Advisor of Nippon Densan Corporation
(currently Nidec Corporation)
its employees, about their thoughts on the company and April 2019 First Senior Vice President, Head of Nidec
its business. May 2022

Center for Production Technology R&D
Chief Technology Officer (CTO)
(current post)
Toshihiko Koseki
Executive Vice President,
Common Common Q&As

Chief Technology Officer
Q&A These are common questions for all five executive vice presidents to
1. After working with Nidec for one year as a part-time advisor, I officially joined the company in 2019. At that time,
the Nidec Center for Production Technology R&D (currently the Nidec Keihanna Technology Center) had just been
formed, and I had to establish the Center’s functions and roles that span the entire Nidec Group. From then until
dig deeper into each person’s personality. now, I can say that I have spent four years pursuing the question “What is a corporate research institute?”
This spring, we reorganized our R&D departments, creating a system in which the R&D departments serve as a
1. Please tell us about your career at Nidec. hub for developing various technologies and solving problems for all Nidec Group companies.
2. I believe that we need to have unique and advanced technological capabilities and continually evolve them.
2. What kind of company do you want Nidec to be? Up until now, Nidec has achieved growth by supplying motors and parts with a high level of responsiveness to
customer requests, but in the future, we will additionally need the ability to create modules, systems, and solutions
Also, how do you think Nidec should change? in a wide range of fields centered on motors.
3. We need the ability to combine, sophisticate, and integrate the technologies cultivated through the development and
3. What do you think Nidec lacks currently but should have production of motors. In order to continue to grow and coexist with society over the next 50 years, we must continue
to be a company that can respond flexibly to social changes and contribute to society through technology.
in order to realize your ideal vision? 4. It is important first to understand both the contribution and burden to the global environment that are created by our
activities to manufacture motors and other products, and then consider what we can do. The manufacturing process
4. What do you think of sustainability management and places a burden on the environment due to the use of materials and electricity, but on the other hand, motors with an
energy-saving design can significantly reduce the amount of electricity consumed around the world. In addition, the
ESG management at Nidec?
amount of electricity used to cool IT equipment will continue to grow. Nevertheless, further improvements to our fan
motors, heat pipes, and water cooling technology will greatly contribute to power savings in this field.
Individual Individual Q&As
Q&A Q. W
hat is the philosophy of the three research and development departments newly established in April 2023 (Nidec Product
Technology R&D Center, Nidec Center for Production Technology R&D, and Nidec System Manufacturing Engineering Center)?
These questions are tailored to each person’s background and A. It is to realize One NIDEC of technology. Up until now, each research institute had developed products and researched
production technologies individually. Now, we have clarified the functions and roles of each research institute and established
current duties.
a function to connect them so that everything from product design to production technology can be integrated to enable
Questions are listed on each page. consistent, efficient development. The research institutes will also play the role of a hub that promotes sharing and
collaboration of technologies owned by the Nidec Group.
Q. What technologies are you currently focusing your research on?
A. We are focusing on establishing the basis for and developing the systems and solutions that combine multiple technologies, as
well as the software technology that supports them. For example, in the future, EVs are expected to be referred to as “driving
smartphones.” This means that we need to utilize both hardware and software to create added value. From this perspective, we
are focusing on the development of our E-Axle, with a view to creating a connected car* with functions that go one step further
than the basic vehicle functions of running, stopping, and turning.
* A car equipped with a function to constantly connect to the Internet

Biography
April 1983 Joined Sony Corporation
January 2001 Vice President Product Planning, Sony
Management Message
Ericsson Mobile Communications AB
April 2011 Executive General Manager of Biography
Production, Sony Corporation April 1982 Joined Sumitomo Bank, Ltd. (currently
June 2016 Executive Officer, Business Executive, Sumitomo Mitsui Banking Corporation)
Sony Corporation April 2011 Director, Manager of Corporate Sales
April 2018 Representative and President, Sony Dept. 1, Namba, Sumitomo Mitsui Banking
Mobile Communications Inc. Corporation
April 2021 Executive Vice President in Charge of April 2012 Joined Nippon Densan Corporation
Managing Mobile Communications (currently Nidec Corporation)
Unit, Sony Corporation July 2012 General Manager of Affiliates Management
January 2022 Joined Nippon Densan Corporation Department (currently Group Companies
(currently Nidec Corporation), Senior Performance Management Department)
Vice President, Deputy Executive April 2013 Vice President
General Manager of Automotive May 2016 Senior Vice President
Motor & Electronic Control June 2021 First Senior Vice President
Business Unit June 2023 Executive General Manager of Small
July 2022 First Senior Vice President Platform Motor & Solutions Business Unit
September 2022 Executive General Manager of (current post)
Automotive Motor & Electronic In Charge of Managing Group Companies
Control Business Unit (current post) (current post)
Mitsuya Kishida Yoshihisa Kitao

Executive Vice President, Executive General Manager of Executive Vice President
Automotive Motor & Electronic Control Business Unit Executive General Manager of Small Platform Motor & Solutions Business Unit
Common Q&As Common Q&As In Charge of Managing Group Companies
1. I joined Nidec in January 2022 and immediately took charge of the automotive business in Europe. I strived to 1. I n my previous job at a bank, I was in charge of corporate sales and company-wide performance management. I joined Nidec in 2012 and was
strengthen our foundation and conduct structural reforms in preparation for the development of our automotive assigned to work in the Affiliates Management Department (at that time) due to my experience at the previous job. I have mainly been in charge
business, centered on Stuttgart, Germany, which is famous as the city of cars. It was a year in which we made of domestic group companies. In particular, I have traveled with Chairman Nagamori to companies that have newly joined the group through
steady progress in resolving issues necessary for future business development and clearing up the past. M&A and have served as a liaison between Nidec and its group companies. In addition, in June this year, I was also appointed as Executive
2. I believe that we should go beyond the framework of a motor company and become a platformer. Just as major General Manager of the Small Platform Motor & Solutions Business Unit.
mobile phone carriers have now lost their positions to IT companies, I am confident that companies that can 2. A s I am in charge of the Small Platform Motor & Solutions Business Unit, which is the company’s founding business, I aim to build a corporate
provide not only hardware but also the entire platform, including software, will win the top spot in the automotive group that endeavors based on Nidec’s identity represented by the slogan “Do it now; do it without hesitation; do it until completed,” as well
industry. as the strengths and technologies of each group company that has newly joined the group. Rather than completely absorbing these new
3. W
e need to increase synergies between group companies and cultivate software technology. For this purpose, companies, we are strengthening collaboration among group companies to help them leverage their own characteristics and ensure that the
it is necessary to improve the product development and design environment. We have the environment in place same intentions are shared among the group.
to improve the perfection of our hardware. However, when it comes to software, it’s a different story; we still 3. W
e must maintain good communication between group companies. To this end, we need to remove all barriers to facilitate the movement of
lack development and design systems, human resources with knowledge, work style options to secure human people, goods, technology, and information. In other words, this is to achieve One NIDEC. For this purpose, I believe that it is important for all
resources, and collaboration within the group. By making full use of the technology and know-how that we have employees of the Nidec Group to fully understand the concept of 3Q6S, which is regarded as our company’s constitution, act accordingly, and
accumulated in-house through our business, I am sure that we will be able to resolve these issues. communicate closely.
4. I n order to survive the next 50 years, or even 100 years, Nidec must become a company that puts globalization 4. N
idec can contribute to reducing power consumption around the world by increasing the efficiency of motors and pursuing the development
and diversity at the forefront. The Nidec Group’s operations span a truly diverse range of countries and regions, of environmentally friendly products. For example, in recent years, the power consumption and heat generation of electronic components have
and even among its Japanese peers, there are few examples of this level. We should be able to appeal more to the increased dramatically due to faster and larger data transmission. In this regard, Nidec can contribute to reducing the power consumption of
world the true diversity fostered within the Nidec Group, which is a strength created by people from all over the ICT* equipment by providing a solution that efficiently cools high-performance semiconductors through cooperation with Nidec CCI, which
world working together, transcending all attributes such as race, nationality, gender, skills, and expertise. joined the group in 2018. In addition, we have quickly started working on the development of water cooling modules as a new thermal solution.
This enables cooling with less than half the electricity and CO2 emissions compared to conventional heat exhaust systems.
Individual Q&As * ICT: Information and communication technology. It refers to technology that exchanges digitized information through communication and technology that uses communication
technology to connect people to people and people to the Internet.
Q. Are there any situations in which your experience from your previous job was put to good use?
A. B
efore joining Nidec, I was involved in the mobile phone business for a long time. I have experience in domestic Individual Q&As
sales, overseas marketing, accounting, business strategy and planning, and as a factory president, but I have Q. Y ou were involved in setting up overseas factories for group companies. Are there any memorable episodes?
never been involved in the automotive business. In that sense, I am tackling every task here for the first time. A. W hen we built factories in overseas countries such as Vietnam and China, I was involved in the negotiations with all my heart and soul. As a
Nevertheless, I naturally utilize all of my previous work experience in the Nidec Group, where the on-site result of repeated negotiations with local government officials, I believe that we were able to go beyond just building a new factory. We have
actual-item principle is always required. I can say that I am summarizing all the work I have experienced in my successfully managed to strengthen the relationship of trust between Nidec and the governments of each country.
previous job when dealing with customers. Q. W hat are the technologies and products that will become the pillars of Nidec’s business in the field of small motors in the future?
Q. What are the strengths of the Nidec Group that you found while visiting various production, A. A s mentioned earlier, I believe that thermal solutions will become a major pillar. From now on, dealing with the huge amount of heat dissipated
development, and sales sites? due to the higher functionality of data centers and the expansion of the market will become an urgent issue. Conventional solutions centered
A. T
he Nidec Group’s greatest strength is its integrated production and sales system. For example, when it comes to on air cooling are no longer sufficient, and solutions centered on water cooling are expected to expand significantly in the future. In response
sales, we explain our company’s advantages, starting with how to make parts. We are able to not only talk about to the HPC server market, which continues to grow as the use of AI expands, and the demand that increases due to the increasing output of
product specification, but also go into the manufacturing process together with our customers. I believe this is microprocessors, we will expand our business with a sense of speed unique to Nidec, with products that use water cooling technology that we
proof that the Nidec Group has continued for 50 years to refine its manufacturing spirit, which is represented by have already been developing. In addition, we will utilize the technology cultivated in the Small Platform Motor & Solutions Business Unit to
3Q6S principles, and that this spirit has been passed on to all employees, regardless of their duties. address the issue of electrification, which is sweeping across fields, not only of automobiles but also of motorcycles.

Biography
April 1979 Joined Mitsui Bank, Ltd. (currently
Sumitomo Mitsui Banking Corporation)
Management Message
April 2008 Vice President, General Manager of
Corporate Sales Division of Shibuya and
Yokohama, Sumitomo Mitsui Banking Biography
Corporation April 1989 Joined Saitama Bank, Ltd.
May 2009 Joined Nippon Densan Corporation (currently Resona Bank, Limited.)
(currently Nidec Corporation) November 2004 Joined Nidec-Read Corporation
June 2009 First Senior Vice President, Nidec-Shimpo (currently Nidec Advance Technology
Corporation (currently Nidec Drive Corporation)
Technology Corporation) April 2015 Representative Director and President,
April 2013 Representative Director and President Nidec-Read Korea Corporation
August 2021 Chairman, Nidec Machine Tools Co., Ltd. (currently Nidec Advance Technology
(currently Nidec Machine Tools Korea CO., LTD.)
Corporation) (current post) June 2017 Vice President, Nidec-Read
June 2022 Chairman, Nidec OKK Co., Ltd. Corporation
(currently Nidec OKK Corporation) October 2017 Senior Vice President
April 2023 Representative Director and Chairman, April 2018 Representative Director and President
Nidec OKK Corporation (current post) May 2022 Representative Director and President,
June 2023 Representative Director and Chairman, Nidec Sankyo Corporation
Nidec Drive Technology Corporation (currently Nidec Instruments
(current post) Corporation) (current post)
Tatsuya Nishimoto Toshiyuki Otsuka

Executive Vice President, Executive General Manager of Executive Vice President
Machinery and Automation Business Unit
Common Q&As Common Q&As
1. I joined Nidec in 2009. Immediately after that, I was appointed as First Senior Vice President of Nidec-Shimpo 1. In 2004, I joined Nidec-Read Corporation (currently Nidec Advance Technology Corporation), one of our group
Corporation (currently Nidec Drive Technology Corporation), with which I had a connection through my previous job. companies, and was subsequently transferred to South Korea to help set up a base. I returned to Japan as an
2. I want Nidec to be a company that realizes sustainable growth and talks about dreams and turns them into reality. executive in 2017 and served as the company’s representative director and president for four years starting in April
2018. Although this industry was characterized by sales instability due to the strong influence of the demand cycle
3. I believe that we need to promote business selection and concentration to realize sustainable growth. I think
in the semiconductor market, we have worked to build a foundation that would allow us to continue to generate
that we are now at a point where we need to take a bird’s-eye view of the group’s businesses, analyze them, and
high levels of profits. Since May 2022, I have been in my current position.
reorganize some areas depending on the situation. Furthermore, in order to achieve sustainable growth, it is
necessary to diversify our business portfolio to some extent. This may seem to contradict the concept of selection 2. I want Nidec to continue to grow more and have a strong presence over the next 50 years. While inheriting the
and concentration of business. However, it is risky to concentrate management resources on a limited number corporate culture and spirit of our founder that have served as the foundation for our growth, we must continue to
of companies or industries. I think that large-scale investments targeting specific companies or industries must make changes in line with the times by pursuing cutting-edge technology and following social demands in order to
be examined carefully. In order to make Nidec a company that talks about dreams and turns them into reality, we survive in the new era. I believe that such efforts to break with conventions will pave the way for growth.
must develop employees who faithfully adhere to and carry out Chairman Nagamori’s basic philosophy of “Do it 3. I believe that it will become even more necessary to look at things from the perspective of the entire group,
now; do it without hesitation; do it until completed” to follow his path. positioning overall optimization as a prerequisite. For example, it is essential to further promote the sharing of
4. Regarding future sustainability management and social contribution, I think it would be a good idea to emphasize technology and purchase-related information, the mobility of human resources, and the effective mutual use
the significant contribution that the Nidec Group has already made through its projects. For example, Nidec of assets. By accelerating the One NIDEC movement that removes barriers between group companies, we will
Minster Corporation handles aluminum cans with a high recycling rate in its canning press business. increase the value of the entire group.
4. We are a company, so our management purpose is to increase our business performance and stock price, which is
Individual Q&As also a mission as an executive. We believe that this purpose and mission and sustainability and ESG management
Q. Please tell us the points to focus on when conducting M&A. are not contradictory, but that they mutually influence each other and create synergistic effects. For example,
automotive motors (E-Axle) greatly contribute to decarbonization, and decarbonization leads to improving the
A. W
e assess the current situation of our existing core businesses, identify areas that are lacking, and look for
Nidec Group’s corporate value, creating new markets, and ultimately generating profits. The same applies to
business entities that can supplement them. In 2011, Nidec-Shimpo Corporation (currently Nidec Drive Technology
human rights issues, diversity promotion, and building a competitive supply chain, which the Nidec Group is
Corporation) merged with Nippon Densan Kyori Co., Ltd. and entered the press business. At that time, we made
actively working on. As a globally operating company, Nidec aims to make business decisions from the perspective
M&A strategy one of our major measures for growth. Having acquired Nippon Densan Kyori Co., Ltd., a small
of sustainability and ESG management and eventually benefit all stakeholders.
press machine business based on the Japanese market, we decided that we needed a medium and large press
machine business with strong markets in Western countries. Accordingly, we acquired the current Nidec Minster
Corporation and Nidec Arisa S.L.U. Subsequently, we acquired peripheral equipment manufacturers that could Individual Q&As
create a high synergy effect through cooperation with the above stated companies. Q. What were the key points in stabilizing the performance of Nidec-Read Corporation (currently Nidec
When considering an acquisition, it is important to meet with the management of the target company many Advance Technology Corporation)?
times and assess the potential partner. As we get to know the personalities of the other party, we try to make them A. As mentioned earlier, the company’s main product, inspection equipment for substrates and semiconductors, has
trust us, thinking that they can work with us. been experiencing large fluctuations in demand. In order to compensate for the gap in demand, we focused on
Q. Next, please tell us the key points regarding PMI (Post Merger Integration). the consumables business, such as inspection jigs and probe cards, and gradually built up our product portfolio by
A. In many M&A transactions around the world, the acquirer’s promotion manager is not involved in the PMI leveraging M&A to generate constant demand.
process. However, in the Nidec Group, not only the person in charge of promoting the acquisition project but also Q. You are currently the representative director and president of Nidec Instruments. What is the focus in
the company’s top person, Nagamori, will be deeply involved in the PMI process after the acquisition. Another strengthening the company’s business foundation?
characteristic of the Nidec Group’s M&A strategy is that it does not involve major changes in the management A. The goal is to instill management methods and attitudes based on the Nidec Policy and Nagamori-ism and to
team of the acquired company or mass layoffs of its employees. We give management authority to the existing put them into practice. We aim to continue to achieve our business plans by aligning our employees with the
management team of the acquired company. At the same time, we share the basic management philosophy of the above stated philosophies. This will strengthen our business foundation and lead to future growth. Achieving the
Nidec Group with all members of the company, provide investment support as necessary, and raise its profitability plan requires not only will power but also detailed implementation of policies. Nevertheless, I instruct my team
while increasing its employee morale. members to always maintain “Backbone and Tenacity,” a truly critical notion cherished at Nidec.

Value Creation Process
Nidec will fulfill its mission of “contributing to the world by producing the highest quality motors in the world” by providing solutions to the common issues of humankind through its business activities.
INPUT OUTPUT OUTCOME IMPACT

INPUT OUTPUT OUTCOME IMPACT
motors with the world’s best performance

Value Creation of Nidec Group
Financial capital Financial capital Providing the E-Axle traction motor
system for electric vehicles
Consolidated total assets: Net sales:2,242,800 million yen
Contributing to the world by providing

2,872,800 million yen E-Axle / Automotive motors Reducer modules Brushless DC motors Operating profit: 100,100 million yen ontributing to
C
Shareholders’ equity ratio: 47.1% Operating profit ratio: 4.5% decarbonization
Profit attributable to owners of the
Intellectual capital parent: 45,000 million yen Providing brushless DC motors for
home appliances
R&D expenses: Fan motors, vapor chambers Nearline HDD motors
81,300 million yen Intellectual capital C
ontributing to
Business activities
Number of patents held *1
energy saving
Human capital Competitive advantage 2 : (as of March 31, 2023):
Consolidated number of Business strategy Automotive Small Precision
11,482 Providing reducer modules for
Pursuit of No. 1 global Products Motors cooperative robots
employees: 106,592
market share Appliance,
Global human resources
Speedy management Commercial &
Other
Human capital Contributing to
Diverse human resources Products
Employee training hours per
Risk taking
M&A
Industrial Products
Average length of service meeting demand
person (non-consolidated): 13 hrs
P.25 P.39
(non-consolidated): 11.8 years for manpower
Managerial positions held by
saving to cope with
Social capital Medium-Term Strategic Goal Vision 2025 women and female directors:
23.9% the labor shortage
Number of group companies: 347 P.27
Number of countries/regions Providing heat management
with business sites: 46 Social capital products for electronic devices such
Joint research with universities, Materiality as smartphones and PCs
Participation in national projects
research institutes and companies
of industry-government-academia C
ontributing to
collaboration NEDO* Green
the solution of
2
Manufacturing capital Environment Products Human Resources Supply Chain Corporate Governance P.47
Innovation Fund*3 project
More than 200 production bases “Development of nextgeneration
issues relating to
Capital investment:
Competitive advantage 1 : Corporate culture motors” the large amount
137,800 million yen
“Do it now; do it without hesitation; do it until completed,” passion, enthusiasm and of heat generated
tenacity, “Work hard and smart,” viewing adversity as an opportunity Manufacturing capital by 5G devices
Natural capital P.25
Manufacturing high-quality
Total energy input: Providing key components (spindle
products
1,767,741 MWh Corporate Philosophy motors) for nearline HDDs for data
Promoting cost reduction activities
Water resources input: centers
Policy, Mission, Vision, Value, Discipline and Code
7,548,000 m P.03
C
ontributing to
3
Natural capital
Renewable energy introduction addressing the
Five Big Waves ratio: 8.2% explosive increase
1 Carbon neutral society 2 Power saving and post-COVID-19 pandemic 3 Manpower saving
4 5G & Thermal solutions 5 Digital data explosion
CO2 emissions (Scope 1, Scope 2):
in digital data
10% reduction
*1 Including those held by group companies in Japan and major overseas group companies in the appliance, commercial and industrial segment.
Social issues / Mega trends *2 NEDO: New Energy and Industrial Technology Development Organization
*3 Green Innovation Fund: established on December 25, 2020 in the Green Growth Strategy Through Achieving Carbon Neutrality in 2050 formulated by
the Ministry of Economy, Trade and Industry with other relevant ministries and agencies to create a virtuous cycle of economy and the environment.

History of Nidec Group Please refer to the URL below for details of Nidec’s history.
https://www.nidec.com/en/corporate/about/history/
As the world’s leading comprehensive motor manufacturer, Nidec has achieved continuous
growth through business diversification and by continuing to meet the needs of society.
1973 Nippon Densan Corporation

M&A as the growth driver
(now Nidec) established. Nidec has completed 71 M&A deals since its founding up to September 2023. In its 50-year history, the company concentrated
On July 23, 1973, Shigenobu Nagamori, who was then 28 years old and who now serves as investment in M&A in two specific periods. The first was between 1995 and 2003, when the bearings for HDD motors shifted
to Fluid Dynamic Bearings (FDBs)*2, we obtained the necessary production technologies for the development and mass
Representative Director and Chairman, established Nippon Densan Corporation (now Nidec production of FDBs through 17 M&A deals. The second was between 2010 and 2020, when the HDD market was shrinking,
Corporation) with three friends in Nishikyo-ku, Kyoto. With the aspiration of “becoming we completed 39 M&A deals mainly in the fields of automotive products and appliances, commercial and industrial products,
with the aim of moving beyond a business structure depending largely on HDD motors. Based on the idea of buying time to
No. 1 in the world,” the four young men started to manufacture and sell small AC motors.
develop technologies and people, Nidec has utilized M&A and overcome changes in both technologies and markets.
Because it was difficult to find customers in Japan, Nagamori flew to the United States,
where he visited potential customers without prior appointments.
1980s～
90s Social trends
Takeoff and expansion of the PC market
Nidec’s initiatives
Nidec becomes the world’s top HDD motor manufacturer

In 1983, the first business-use personal computers (PCs) equipped with HDDs as memory were launched in the United States.
HDDs became popular because of their high-speed processing capacity, leading to the expansion of demand for HDDs. Nidec,
which had produced motors for 8-inch HDDs from 1979 and for 5.25-inch HDDs from 1981, launched the production of 3.5-inch
and 2.5-inch HDD motors in 1984 and 1988, respectively, in response to the miniaturization of PCs. In March 1989, Nidec
acquired a competitor Shinano Tokki thereby capturing a 90% share of the global HDD motor market. In 1984, Nidec acquired
the axial-flow fan business of US company Torin Corporation, and started the production of brushless DC fans for PCs and
Nagamori, now Representative Director and Three founding members Katsura Factory
office equipment. In September 1998, Nidec was listed on the first section of the Tokyo Stock Exchange (now Prime Market).
Chairman when the company started
History of growth through M&A

An encounter with the brushless DC motor Year
1984
Country
United States
Acquired companies/businesses
Torin Corporation, Axial fan division
Specialized businesses/technologies/products
Small axial-flow fans
1989 Japan Shinano Tokki HDD motors
Fascinated by brushless DC motors, which feature low noise, long life and compact size, Nagamori was immersed in its research in
1995 Japan Kyoritsu Machinery Automatic motor assembly equipment, automatic inspection
his school days. However, the brushless DC motor market was still small in those days, and brushless DC motors were used only for
1995 Japan Shimpo Industries Equipment
limited applications such as fish finders. 1997 Japan Tosok Continuously variable transmissions
At the request of an electric equipment manufacturer in the United States, Nidec developed a directdrive*1 motor for hard 1997 Japan Read Electronics Measuring instruments, semiconductor measuring equipment
disc drives (HDDs) using brushless DC technology, and successfully launched mass production in 1979. Direct-drive HDD motors 1997 Japan Kyori Kogyo Industrial inspection devices
contributed to the miniaturization and high storage capacity of HDDs, and HDDs rapidly became widespread as a computer storage 1998 Japan Copal High-speed precision automatic press machines
device. Since then, brushless DC motors have been the pillar of Nidec’s business. As the world’s No.1 manufacturer of brushless DC 1998 Japan Shibaura Densan Manufacture of camera shutters
motors, Nidec has established a dominant position in a broad range of markets from IT and automotive devices to home appliances. * Major companies are picked up and listed in this table.
Hard disc Hard disc
Ball bearings were initially used for HDD motors. But around development and production of FDBs. For example, Tosok had
1995, it became necessary to improve the rotation accuracy of advanced measuring technology while Kyori Kogyo and Copal
motors in line with the increase in the capacity of HDDs. had press technologies to punch motor cores. Sankyo Seiki was
Although there were studies on using FDBs for HDD motors, no leading in FDB technology and had a plant in the Philippines, but
bearing manufacturers had succeeded in mass production. In mass production was not progressing as planned. By acquiring
Belt Built-in order to supply the needed HDD motors, Nidec had to develop these technologies, equipment, and engineers through M&A,
motor and produce FDBs from scratch, which was a big challenge as Nidec succeeded in replacing ball bearings with FDBs and started
the company had procured bearings from outside suppliers and full-scale mass production of HDD motors with FDBs in 2000, and
Spindle (precision rotating axis) Motor Spindle (precision rotating axis) assembled them into HDD motors. Therefore, Nidec acquired has maintained a high market share since then.
Belt drive method Direct drive method several companies that had the technologies necessary for the
*1 Belt drive method and direct drive method *2 Fluid Dynamic Bearing (FDB)
In those days, AC motors were used to drive HDDs, and the belt drive method, which uses a belt to spin the spindle (precision rotation axis), was the mainstream. Belt-drive HDDs were In the FDB chamber there is a fluid such as oil between the bearings and the shaft. When the shaft rotates, the fluid’s dynamic pressure generated by the rotation lifts the shaft from
used mainly as storage devices for large computers. In order to spread computers to ordinary people, it was essential to miniaturize and increase the storage capacity of HDDs, and the bearings and rotates it smoothly. Although ball bearings were used conventionally, low noise and low vibration have been achieved by shifting to FDBs.
what made this possible was the direct drive method, which integrates the spindle and motor in a single unit. Nidec played a critical role in developing and commercializing a direct
drive spindle motor for HDDs.

FY2030
History of Nidec Group Consolidated
sales target:
FY2025 10 trillion yen
FY2022 Consolidated
Sales Trend FY2014
Consolidated sales target:
Consolidated
net sales: 4 trillion yen
FY2005 sales exceed: 2 trillion yen
Consolidated 1 trillion yen
sales exceed:
500 billion yen

2000 2010 2020 2021 2022 2025 2030 (Fiscal Year)
2000s～ Social trends
Spread of the Internet and emergence of new digital devices

2010s～ 2020s～
Nidec’s initiatives Nidec’s initiatives Nidec’s initiatives
Social trends Social trends
Strengthening the HDD motor business and Permeation of smart devices into people’s everyday
Progress of decarbonization and an aging
population with a lower birthrate
promoting business diversification lives and increased awareness of climate change
In 2001, Nidec was listed on the New York Stock Exchange (now delisted). In 2003, the company’s Head Office and Central Technical Laboratory Becoming a growth company
building was completed in Minami-ku in Kyoto City.
By starting mass production of HDD motors with FDBs replacing ball bearings in 2000 and maintaining a high market share, Nidec has firmly
Growing into a global comprehensive motor that can respond dynamically to
established its position as the top HDD motor manufacturer. manufacturer through M&As environmental changes
Nidec established Nidec Research and Development Center, Japan in 2014 and Nidec In July 2023, Nidec celebrated its 50th anniversary. Accordingly, starting in
While engaging in the development of FDBs since around 1994, the company promoted diversification of its business portfolio in case FDB
Center for Industrial Science in 2015 to promote basic research on motors and realize April 2023, Nidec changed its Japanese company name from “Nippon Densan”
production failed. As part of this initiative, we started developing motors for automobile power steering in 1995 and launched mass production technological innovation in manufacturing. After reaching a record high of approximately to “Nidec” and changed its group companies’ names to include “Nidec.”
in 2000. We now hold the world’s top share in this field. 650 million units in 2010, global shipments of HDDs declined around 60% to 260 million Nidec will work to create new functions and value by skillfully combining the
units in 2020. Against the background of decreased demand for HDD motors, Nidec strengths of the Nidec Group companies, which have various technologies in
With the launch of the first smartphone in 2007 and the first tablet in 2010 by Apple, global shipments of PCs and HDDs thereafter declined.
aimed to shift its growth focus to the automotive and the appliance, commercial and a wide range of fields.
industrial businesses by actively conducting M&A with companies that have strengths in In particular, Nidec is striving to provide solutions to common issues of
these fields. As a result of the success in this transformation of the business portfolio, in humankind in five areas that align with global mega trends: “automotive
History of growth through M&A FY2017, sales of the appliance, commercial and industrial products business exceeded electrification,” “expansion of robot applications,” “home appliances driven by
Year Country Acquired companies/businesses Specialized businesses/technologies/products those of the precision small motor business, which had been Nidec’s core business since brushless DC motors,” “labor-saving in agriculture and logistics,” and “spread
Subsidiary of Yasukawa Electric Corporation. DC servo motors its founding. Nidec has thus grown into a comprehensive motor manufacturer offering a of next-generation technology stemming from 5G communications.” Nidec
2000 Japan Y-E Drive wide variety of motors ranging from micro-size to large, which are used in various fields. is committed to actively engaging with the Sustainable Development Goals
for office automation
2000 Thailand Seagate Corporation, Motor division of Rangsit Plant HDD motor factory Looking ahead to the decarbonization trend, Nidec developed an EV traction motor (SDGs) and will contribute to building a sustainable and prosperous society
Japan Sankyo Seiki Mfg. HDD motors system called E-Axle and launched its mass production in 2019. through various initiatives including the “2040 Carbon Neutrality Declaration.”
2003
2006 France Valeo S.A., Motor & actuator business division Automobile motors
2007 Singapore Brilliant Manufacturing Ltd. HDD base covers
Japan Japan Servo Subsidiary of Hitachi, Ltd. Manufacture of small motors
History of growth through M&A
2007
Year Country Acquired companies/businesses Specialized businesses/technologies/products
Motors for appliances and industrial machinery, large motors for
2010 United States Motors & Controls business of Emerson Electric Co. 2017 France Motor and Electric Power Generation businesses of Emerson Electric Co. Industrial motors, drives, power generators
plant control, etc.
Motors for power generators for wind and hydroelectric power 2017 United Kingdom Drive business of Emerson Electric Co. Industrial motors, drives, power generators
2012 Italy Ansaldo Sistemi Industriali S.p.A. Compressor business of Whirlpool Corporation Refrigerator compressors
generation, and rolling mills, etc. 2019 Brazil
2012 United States Avtron Industrial Automation, Inc. Control equipment for industrial motors 2019 Japan Omron Automotive Electronics Automotive control technology
2012 United States Kinetek Group Inc. Commercial motors for elevators, escalators, etc. 2021 Japan Mitsubishi Heavy Industries Machine Tool Gear machine tools
2014 Japan Honda Elesys Automotive electronic control units (ECU) 2022 Japan OKK Machine tools (general-purpose machines)
2015 Germany Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt Automotive pumps 2023 Italy PAMA Machine tools (horizontal boring machines, portal machines)
* Major companies are picked up and listed in this table. * Major companies are picked up and listed in this table.
Whether the development of HDD motors with FDBs would into the field of appliances, commercial and industrial products. In response to the shrinkage of the HDD market, Nidec promoted diversification company in 2014, were integrated to develop a compact, light power pack with
succeed was extremely important for Nidec, whose core business For power steering motors, we faced difficulty in increasing the of its business by leveraging the technologies it had developed until then and minimum noise. Moreover, for E-Axle, an EV traction motor system, Nidec Elesys was
was HDD motors. Therefore, in case we failed in this big challenge, number of customers because of the high entry barriers. However, through M&A in the fields of automotive, appliance, commercial and industrial in charge of the development of the inverter. By shifting from production and sales
we conducted M&A in fields other than HDD motors to diversify the acquisition of the motor division of Valeo S.A. in France in 2006 products, where further growth could be expected. In the automotive business, of motors alone to production and sales of modules and systems, Nidec aimed at a
our business portfolio. The acquisition of Shibaura Densan in 1998 dramatically expanded our market. pursuing synergies between Nidec’s automotive motors and the technologies transformation from a Tier 2 parts manufacturer to a Tier 1 manufacturer.
and Y-E Drive in 2000 provided us with a foothold for advancing acquired through M&A, Nidec started developing high value-added products for In 2021, Nidec acquired Mitsubishi Heavy Industries Machine Tool Co., Ltd., which
modules and systems. For example, Nidec’s electric power steering (EPS) motor specializes in the production of gear cutting machines, and entered the machine
and an electronic control unit (ECU) of Nidec Elesys, which became a Nidec Group tool business.

Business Operations Please refer to the URL below for detailed product information.
https://www.nidec.com/en/product/
Nidec offers a wide variety of motors ranging from precision small to super-large, as well as applied Consolidated Sales by Region*
products and services in IT, office automation, home appliances, automobiles, commercial and industrial
systems, environment and energy, and many other fields. We will contribute to the enhancement of
people’s lives and the development of industries by continuing to deliver highest quality, indispensable,
and widely desired products for the common good of all, through active M&As and organic growth.
Others China
Consolidated Net Sales by Product Group 84.2 billion yen 560.7 billion yen
Value Creation Strategy

3.8% 25.0%
Electronic & Optical Components Others Small Precision Motors
Other countries
Machinery Consolidated net sales (for FY2022)
HDD in Asia United States
Shutters Other small
for digital
cameras
motors
precision motors
273.3 billion yen 2,242.8 511.0 billion yen
billion yen
Tactile devices 12.2% 22.8%
High precision reduction
Driving motors
gears for robots
Consolidated Electric water

net sales pump
(for FY2022)
2,242.8
Blade pitch control motors
Japan Europe
Electric oil
billion yen
392.7 billion yen 420.9 billion yen
pump
Electric power
17.5% 18.8%
steering motors
Household refrigerator compressors
* Based on the countries where consolidated Group companies selling products to external customers are located
E-Axle electric vehicle

traction motor system
Air-conditioner motors
Business Sites
Appliance, and Commercial and Industrial Products Automotive Products
Nidec Group operates globally with business sites in 47 countries/regions.
FY2022
Net sales Operating profit Operating profit Number of group Number of Number of countries/regions
Product group (Billions of Yen) (Billions of Yen) ratio (%)
Companies employees with business sites
Small precision motors 425.3 26.7 6.3
347 106,592 47
Automotive products 519.7 –42.3 –8.1
Appliance, and commercial and industrial products 914 70.8 7.7
Machinery 296.5 45.5 15.4
Electronic & optical components 83 13.6 16.4
Others 4.4 0.5 10.9
Total 2,242.8 100.1 4.5 (as of March 31, 2023)

Performance Highlights
Financial Information Non-financial Information
Net sales Operating profit / Operating profit ratio Greenhouse gas (GHG) emissions*2 Amount of final waste disposal*2, *5
(Millions of Yen)
2,242,824 (Millions of Yen) (%) (1,000 t-CO2) 150,837 (t)
2,400,000 200,000 20 160,000 36,000
32,463
170,374
150,046
1,918,174 159,970 4,750
5,000
160,000 16
1,800,000 1,618,064 27,000
1,534,800 129,222
1,475,436 4,000 1,906
100,081 3,365

120,000 108,558 12
9.9 2,934 2,858
1,200,000 8.8 8.9 3,000 18,000
7.1
80,000 8
4.5 2,000 2,700 2,295 2,287 2,330
9,636 8,947
10,180
8,052
600,000
40,000 4
720 9,000
1,000
593 73 577 62 511 60 457 57
71
0 2018 2019 2020 2021 2022 (FY) 0 2018 2019 2020 2021 2022 (FY) 0 0 2018 2019 2020 2021 2022 (FY) 0 2018 2019 2020 2021 2022 (FY)
Operating profit (left axis) Scope1 Scope 2 (market standard)*3 Scope3*4

Operating profit ratio (right axis)
Number of employees (consolidated) / Female employee Number of employees who took childcare leave
Profit attributable to owners of the parent / Earnings per share (EPS)*1 Total assets / Shareholders’ equity ratio ratio (consolidated*6) / Ratio of managerial and director (nonconsolidated) / Percentage of employees who
positions*7 held by women (consolidated*6) returned from childcare leave (non-consolidated)
(Millions of Yen) (Yen) (Millions of Yen) (%)
180,000 280 3,200,000 2,872,789 100
(persons) (%) (persons)
92.5 (%)
150,000 100 100 90.0 100 100
2,678,483 89.3 96.0
232.40
135,759
208.19 117,206 114,371 106,592
2,256,024 112,551
135,000 186.49 121,945 210 2,400,000 2,122,493 75 120,000 108,906 80
75 68 75
109,960 1,884,008
52.9 47.1
48.6 48.2 90,000 50.6 47.0 60 20
90,000 140 1,600,000 44.6 50 49.1 48.2 43
50 41 50
99.37 40
58,459 45,003 2
78.19 60,000
23.9 40 7
28.2 27.2
45,000 70 800,000 25
25.9 25 24
25 8 25
30,000 20
38 34 17 48 19
0 2018 2019 2020 2021 2022 (FY) 0 0 2018 2019 2020 2021 2022 0
(FY) 0 2018 2019 2020 2021 2022 (FY) 0 0 2018 2019 2020 2021 2022 (FY) 0
Profit attributable to owners of the parent (left axis) Total assets (left axis) Number of employees who took childcare leave (non-consolidated) (left axis)
Number of employees (consolidated) (left axis)
Earnings per share (EPS) (right axis) Shareholders’ equity ratio (right axis) Male Female
Female employee ratio (consolidated) (right axis)
Ratio of managerial and executive officer positions held by women (consolidated) ercentage of employees who returned from childcare leave (non-consolidated) (right
P
(right axis) axis)
Cash flow from operating activities /
Cash flow from investing activities / Free cash flow R&D expenses / R&D expenses to net sales ratio Acquisition rate of annual paid leave (non-consolidated) Number of directors
(Millions of Yen) (Millions of Yen) (%) (%) (persons) (%)
300,000
219,156
100,000 10 80 69.0 12
10
100
81,337
200,000
170,233 168,049 143,485 78,630 64.5
78,015 61.3 60.9
118,588 80,000 8 9 9
94,994 56.5
67,280 60 9 75
100,000 62,912
8 8 5 5 60.0
9,389 –21,458
2 2 55.6 55.6 6
60,000 5.1 6
0
–17,603
4.3 4.2 4.1 3.6 40 6 50
-100,000 –100,568 –112,597 40,000 4
50.0
–160,844 –143,464 25.0 25.0
-200,000 22.2 22.2
–164,943 20 3 25
20,000 2
-300,000 –311,513
0.0 0.0
-400,000 2018 2019 2020 2021 2022 (FY) 0 2018 2019 2020 2021 2022 (FY) 0 0 2018 2019 2020 2021 2022 (FY) 0 2018 2019 2020 2021 2022 (FY) 0
Cash flow from operating activities Cash flow from investing activities R&D expenses (left axis) Number of directors (left axis)
Free cash flow R&D expenses to net sales ratio (right axis) Outside directors
Outside director ratio (right axis) Female director ratio (right axis)
*1 Adjusted based on the 2-for-1 split implemented as of April 1, 2020. “EPS” and “Dividends” are expressed assuming that the stock split occurred at the beginning of FY2017. *5 For FY2021 and before, calculation was performed based on solid waste only.
*2 Data coverage rate relative to sales: FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, FY2021: 53.5%, FY2022: 62.8% *6 Calculation of consolidated data began from FY2019. In FY2022, 95.0% of employees of consolidated Group companies were surveyed.
*3 For calculation of the FY2022 data, IEA country-specific emission factors have started to be used. To calculate the data of FY2021 and before, the Ministry of the Environment's *7 Managerial positions of section chief level or higher, and officers. Outside directors are included.
Calculation Method and Emission Factors Chart in the Accounting, Reporting, and Disclosure System was referred to. Section chief level: Employees who fit the description (1) or (2) below, or those in equivalent positions.
*4 The GHG emissions in FY2021 doubled compared to those in FY2020 due to the expansion of businesses subject to data acquisition in Category 1 (marked by ). (1) Position responsible for directing and implementing activities to achieve the daily operational goals of the organization, and for communicating the instructions of managerial staff
The GHG emissions significantly increased in FY2022 compared to FY2021 as calculations for categories 8, 11, 12, and 15 started. to the relevant subordinates (2) The head of an organization with two or more subsections, or 10 or more members

Nidec Group’s Competitive Advantages
Business Strategy NIDEC’s DNA

Business strategies that distinguish Nidec from other companies Corporate culture that turns adversity into opportunity for growth
Q. What is the core business strategy that has supported and will Q. What are the characteristics of Nidec’s corporate culture that
continue to support Nidec’s growth journey from its founding sees adversity as an opportunity and takes on challenges for
to the present, and from the present to the future? continuous growth?

A1. Pursuit of No.1 global market share A1. The existence of a corporate culture that forms the basis of all business activities
The most important pillar of Nidec’s business strategy is “pursuit of No. 1 global market share.” Nidec has embraced the following three essential attitudes since its founding:
This strategy consists of three elements: ① Be the first to market, ② Technological development 1 “Do it now; do it without hesitation; do it until completed”
ahead of competitors, and ③ Thorough pursuit of cost competitiveness. Specifically, we make Do what you can do immediately now, instead of thinking you will do it tomorrow or sometime later, and do it until it’s completed.
advance investments before the occurrence of demand for a product and capture a majority 2 “Passion, enthusiasm and tenacity”
market share when the demand occurs. After that, we drive down costs to keep our competitors Gushing passion, welling enthusiasm, and tenacity that fights against difficulties—these are the three core principles
at bay and create a situation where we have an advantage over our competitors. By using this that form the foundation of everything we do at Nidec.
strategy, Nidec has captured the world’s top share for many products, including HDD motors. 3 “Work hard and smart”
Given the fact that oligopolies involving a few big companies are found in many industries, the Work hard and smart to produce output that cannot be achieved just by working in an ordinary way.
strategy of “pursuing No. 1 global market share” is perfectly rational. Nidec has achieved continuous growth since its foundation on July 23, 1973. This has been possible only
because of the existence of the three essential attitudes, which serve as the foundation for our daily
A2. Speedy management business activities, and the corporate culture which we should go back to when we face difficulties.
Speed is Nidec’s greatest weapon. Make a decision and take action as quickly as possible—this A2. Corporate culture instilled throughout the organization
is another pillar of Nidec’s business strategy. An order received from 3M in the United States
for motors for cassette duplicators became the driving force behind Nidec’s growth during its Nidec’s corporate culture is not just for the management. In the WPR®* Project, which was launched
founding years. It is no exaggeration to say that Nidec won this order because it had accepted on in 2009, thousands of ideas has been submitted from frontline workers on the manufacturing floor
the spot 3M’s extremely difficult request to “reduce the size of the motor by 30%.” For automotive for cost reduction and efficiency improvement. These ideas have become a big driving force for the
products, the lead time is usually three to four years, but we continue to work at the same kind of progress of the project. Nidec’s growth is supported by the corporate culture instilled throughout
speed as when we developed that motor for 3M. In the case of the E-Axle traction motor system the organization and “shop floor capability” that has been accumulated over the years.
for electric vehicles, for which we received orders from the Guangzhou Automobile Group in * WPR=Double Profit Ratio. Focusing on cost reduction and improving efficiency, the WPR Project aims to secure a surplus even if sales decline by half,
2017, we commenced mass-production from zero—no plant, no facilities and no people—in only and when sales return to the original level, to double profitability from the previous level.
about one year. Nidec clearly practices speedy management.

A3. Corporate culture that views adversity as an opportunity
A3. Risk taking “A problem is always accompanied by its solution.” Nidec has achieved continuous growth by turning obstacles into
“Take a risk when needed.” This is another pillar of Nidec’s business strategy. Even though market opportunities. When our major manufacturing plant for HDD motors was submerged by the floods that occurred in
expansion is expected in the future, if you hesitate to take risks and your market entry is delayed, Thailand in 2011, thanks to local employees’ tireless efforts, the plant was able to resume normal operations very
then you will fall behind your competitors and will not be able to gain the benefits of market quickly, thus helping maintain its competitive advantage. NIDEC MOBILITY CORPORATION (former OMRON Automotive
expansion. In the case of HDD motors, we made large-scale investments before fullfledged Electronics Co., Ltd.), which joined the Nidec Group in 2019, has also been growing by transforming adversity into
market expansion. We built production plants and secured the capacity to mass produce HDD opportunity. When sales fell by half in the first quarter of FY2020 due to the suspension of operations of its customers’
motors on a large scale, ahead of our competitors. This led to us gaining an overwhelming plants, the company streamlined its business operations in every aspect. As a result, the company managed to maintain
position in the market. For the electric vehicle (EV) product business, we are making advance operating profit at around the break-even point in the fourth quarter of the same year, and during the subsequent
investments without hesitation and working to establish a production system for a traction period that saw a recovery in sales, the company witnessed a sharp increase in operating profit.
motor system for EVs, whose demand is expected to grow rapidly in and after 2025.
Philosophy that lies at the root of the corporate culture:

Abundant management resources that support the company’s business strategies “Pursuit of the world’s No. 1 position for continuous growth”
1. Numerous products with the largest market share in the industry As exemplified by Nagamori’s remarks such as “Anything but first is equivalent to last place,”
(Financial foundation) and “A snake that doesn’t shed its skin will die,” pursuit of the world’s No. 1 position for continuous
2. Over 100,000 employees around the world (Human resource foundation) growth has been upheld since Nidec’s founding and is built into the DNA of the company.
Only high-ranking companies have been able to survive in many industries, and there are some cases
3. More than 200 production sites around the world (Production foundation)
where a company’s growth is impeded by its dependence on existing businesses. Pursuit of the world’s
4. Strong experience and expertise in M&As (Growth foundation) No. 1 position for continuous growth can be said to be perfectly rational as a business strategy.

Overview of the Medium-Term Strategic Goal
The new medium-term strategic goal Vision 2025 is a milestone
for achieving consolidated net sales of 10 trillion yen by FY2030. Framework for the New Medium-Term Strategic Goal 1 Achieving an Increase in Both Sales and Profits
In Vision 2025, we plan to increase consolidated net sales to four 2030 To achieve consolidated net sales of four trillion yen (including one trillion yen management in a business and geographic scope (visualizing business
trillion yen by FY2025. We anticipate an increase in consolidated Consolidated net sales: expected to be gained through new M&A deals) by FY2025, we are required opportunities by creating a matrix of products by business and region),
net sales through new M&A deals (by approximately one trillion to attain a high growth rate. We are committed not only to increasing sales while pursuing optimization of capital efficiency by using ROIC as the evaluation
10
but also to achieving profitable growth. Accordingly, we have adopted ROIC axis. The main focus of new M&A deals is to complement our technologies
yen) in addition to organic growth centered on growth fields in (return on invested capital) as a management index in Vision 2025 instead of and commercial distribution services required for our strategy to succeed.
existing businesses. ROE (return on equity) in Vision 2020, and have set the ROIC target at 15% or We place an emphasis on M&A deals that not only lead to an increase in sales
trillion yen more in FY2025.
For existing businesses, we will seek growth opportunities through
but also have a synergistic effect with our management strategy and eventually
contribute to improving the management indicators of the entire company.
Vision 2025 (target)
Tackle both growth strategy (organic growth + M&A) and enhancement of profitability on capital

Business model transformation 2025
to become a company with Consolidated net sales: 15.0%*
4
consolidated net sales of over 15.0%
10 trillion yen 11.6 11.4
4
trillion yen
trillion yen
10.0 9.9
2022 10.3
8.8
10.0
M&A
Consolidated net sales: (target) 7.1
2
8.5 8.7
7.8
7.4 5.0
trillion yen
4.5
Becoming a global company that

3.00
trillion yen Organic
Achieved 1.62
2.24 growth
continues to grow for the next

1.46 1.48 1.53
1.18 1.20
2021
100 years and beyond
2015 2016 2017 2018 2019 2020 2022 2025 (FY)
Sales (trillion yen) Operating profit ratio (%) ROIC (return on invested capital) (%)
ROIC = NOPAT / Invested Capital (Interest-bearing debt + Total equity attributable to owners of the parent + Non-controlling interests)
NOPAT (Net Operating Profit After Tax) = Operating profit x (1-Tax Rate)
* We target an operating profit ratio of 15% for a sales target of 3 trillion yen by FY2025 attributable to organic growth.
Review of Vision 2020 and Road to Vision 2025
Consolidated net sales in FY2020 were
1,618.1 billion yen, and we failed to 1 Incorporation of productivity improvement to the goal:
Framework for the New Medium-Term Strategic Goal 2 Business Portfolio Management
reach the consolidated sales target We aim to increase sales and operating profit per employee by 30% by Consolidated net sales for FY2020 were 1.6 trillion yen. To achieve the on an order basis. The automotive business is expected to have high sales
of two trillion yen, which we aimed to FY2022 and double them by FY2025. consolidated sales target of four trillion yen by FY2025 (including one growth rate as a whole.
achieve in the medium-term strategic 2 Incorporation of the ROIC target: trillion yen expected to be gained through new M&A deals), we will actively In the small precision motor segment, we cannot expect significant sales
goal Vision 2020 covering the period In Vision 2020, ROE (return on equity) was used as a management index. shift our focus to growth businesses. growth for HDD motors, which have been the driving force behind our
FY2015 to FY2020. In Vision 2025, we In Vision 2025, an ROIC (return on invested capital) of over 15% has been In the automotive business, we expect in FY2025 sales of approximately business performance for many years. We will shift management resources
aim to achieve consolidated net sales set as the final target. 3 million units of our EV traction motor system, E-Axle, whose market to the mobility field, such as motors for small EVs, for which business
of four trillion yen by FY2025 after is expected to expand significantly in the future. We expect its sales to opportunities are expected to expand due to automotive electrification,
3 Setting of ESG goals:
attaining consolidated net sales of increase by several hundred billion yen by the same fiscal year. In addition, and motors for electric two-wheeled vehicles. Thus, we hope that these
ESG-related items are incorporated as new goals. Initiatives to achieve
two trillion yen, which was the target there are many product groups, such as electric power steering (EPS) products in the mobility field will contribute to sales growth together with
carbon neutrality and strengthen governance have been expressly adopted
value in Vision 2020, by FY2022. motors, whose annual sales growth rate can be expected to exceed 10% heat management systems, which is another growth field.
as ESG goals.
The features of Vision 2025 are listed
on the right.
Achieve high growth with aggressive investment in key growth areas
FY2025
Vision2025
Consolidated net sales:
Medium-Term Strategic Goal 4,000 billion yen (target)
1,300 1,300 Additional amount
Target for consolidated net sales: 4 trillion yen To be a top-rated ESG company FY2020 through new M&A
(challenging target)
1 A
ddress social issues with the accumulated skills of Consolidated net sales:
Consolidated net sales:
Productivity improvement creating the world’s first and No. 1 product 1,618.1 billion yen 800 Total of 1,000 billion yen (target)
2 Promote ESG management centered on carbon neutrality
To double sales and profit per employee 601.6 600
3 Strengthen the unified organization of the Nidec Group 100 100
443.6 600
ROIC (return on invested capital): over 15% and its governance 358.1 billion yen billion yen billion yen
40 billion yen
214.8 Organic Organic Organic
growth growth growth Organic growth
(Target) (Target) (Target) (Target)
Small Automotive Appliances, Other Small Automotive Appliances, Other

Precision Products Commercial Product Precision Products Commercial Product
Motors and Industrial Groups Motors and Industrial Groups
Products Products

Overview of the Medium-Term Strategic Goal
Framework for the New Medium-Term Strategic Goal 3 Measures for Boosting Top-Line Growth Framework for the New Medium-Term Strategic Goal 5 ROIC Management
To achieve consolidated net sales of four trillion yen by FY2025 possible to access higher value-added markets as the product In Vision 2025, ROIC (return on invested capital) has been results. It is important to implement improvement activities
and consolidated net sales of 10 trillion yen by FY2030, it will integration level increases from the provision of motors alone included as a new management index, and specific activities to based on the characteristics of each department.
be necessary to shift to a business field with a larger market (device alone) to the provision of power packs for electric improve ROIC will be implemented based on numerical targets in To improve ROIC, it is necessary to increase profitability and
size. By not only shifting our business to growth fields but power steering (EPS) systems and electric oil pump modules line with the strategy of each business department. For instance, optimize invested capital. Accordingly, we will take concrete
also providing products with a high level of integration for (module), E-Axles (system), and EV platforms (solution). since the small precision motor department and the automotive measures for each business department. Specifically, we will
customers, we will be able to access larger markets and By advancing this transition process in each business department have different customer bases and different business improve the cost to sales ratio and the factory utilization ratio to
increase product unit prices. department, we will secure the growth opportunities necessary lead times, there is a difference in the measures required to increase profitability, and shorten the CCC (cash conversion cycle)
Taking the automotive business as an example, it will be to achieve consolidated net sales of 10 trillion yen by FY2030. improve ROIC and in the timeline until the measures produce and promote production automation to optimize invested capital.
Aim to change business models and business areas to accomplish consolidated net sales of 10 trillion yen Set the ROIC target in line with each business unit’s strategy and conduct improvement activities

Diagram of business model shift in the auto and robotic areas Implementation of activities for ROIC improvement
R atio of cost of goods sold F actory production load rate
Expansion of expected market size Increase profitability
Small Precision Motor & In-house parts production rate Sales per employee,
e
t siz Solutions Business Unit etc.
Examples of auto businesses
m arke s C ash Conversion Cycle (CCC)
d iou ROIC
pan
d ex onsc Optimize invested capital Automated production rate,
k e t s an f price-c arket) etc.
EV platform ar o m
ew m etite new
Trillions of yen
re a te n the app reate a
②C e c
ulat s an
d
are (Stim sumer R atio of cost of goods sold F actory production load rate
EV traction motor system E-Axle t sh con Increase profitability
l m arke f scale Automotive Motor & Electronic In-house parts production rate Sales per employee,
a ies ) o
lob ROIC Control Business Unit etc.
c’s g nom ts
Hundreds of
s e Nide ugh eco n of par ROIC C ash Conversion Cycle (CCC)
billions of yen c re a t h ro c t i o Optimize invested capital Automated production rate,
① In uction e produ etc.
t red ous
(Cos and in-h
EPS Electric oil Wafer/LCD
powerpack pump module
Liquid Crystal Display (LCD) transfer robot
panel handling robot
Tens of Logistics solution R atio of cost of goods sold F actory production load rate
AC servo Increase profitability
billions of yen motor Ultra-flat geared Guideless Autonomous Appliance, Commercial & In-house parts production rate Sales per employee,
actuator Guided Vehicle (AGV) Industrial Motor Business etc.
Motor Examples of robotic businesses Expansion of Unit ROIC C ash Conversion Cycle (CCC)
Reducer Geared servo motor Optimize invested capital Automated production rate,
business areas
etc.
Device alone Module System Solution
Framework for the New Medium-Term Strategic Goal 4 Basic Policy for EV Traction Motors Framework for the New Medium-Term Strategic Goal 6 Pathways to Carbon Neutrality
We anticipate a significant increase in the demand for EVs in 2025, market share is accelerating due to low price competition. In Vision 2025, we have newly declared the goal of achieving Energy consumption is expected to rise in proportion to an
marking a watershed year in the industry, mainly due to a decline in Even in this environment, we have already launched the 2nd generation carbon neutrality. Our declaration consists of two goals: increase in sales. To address this, we plan to reduce net CO2
EV prices caused by a decrease in battery prices. China’s EV market has E-Axle model, which has significantly reduced costs. Furthermore,
1 achieving carbon neutrality for business activities emissions to zero by FY2040 (Scope 1 and 2) by 1 promoting
been showing rapid growth in recent years. In 2022, the number of with the launch of the 3rd generation model, which has further reduced
NEVs (BEVs + PHEVs) sold in China reached 6.89 million vehicles (figure costs, we believe that we will be able to survive the competition going (Scope 1 and 2) by FY2040 and 2 laying out a plan to reduce energy saving, 2 shifting to renewable energy sources in the
published by the China Association of Automobile Manufacturers), forward. In addition to the shipments in China, a joint venture with CO2 emissions in the supply chain (Scope 3) by FY2025. energy mix, and 3 investing in carbon offset projects.
making it the world’s largest EV market. On the other hand, competition Stellantis has already begun mass production of E-Axles in Europe,
among automakers and suppliers is becoming fiercer, and the battle for and we expect further volume increases from 2024 onwards.
Achieving carbon neutral by FY2040 (Scope 1 and 2)
Developing supply chain (Scope 3) action plans by FY2025
Lead the EV era as a company that triggers creative disruption and goes beyond the automobile industry tradition
E-Axle sales forecast Changes in CO2 emissions due to the introduction of renewable electricity
(1,000 units) 10,000 Consolidated sales target:
10,000 10 trillion yen
8,000
Renewables-led CO2
Consolidated sales target: Renewable shift & emission reductions
6,000 energy savings
448,000 units 4 trillion yen
Renewable shift &
(Renewables: 80%)
4,000
China (AMEC) CO2 emissions energy savings FY2040
(10,000 tons)
(Renewables: 40%) Carbon Neutrality
180
2,000
545 100 Energy efficiency boost
0 2019
49 83
2020
226
2021
339
2022 2023 2024 2025 2026 2027 2030 2020 2025

50
2030
0
2040 (FY)
Shift to low-carbon fuels
Carbon offset
(FY) investment to reduce
(Forecast) (Target) (Target) (Target) (Target) (Target)
CO2 emissions
AMEC (Automotive Motor & Electronic Control Business Unit) NPe (Nidec PSA emotors) Other regions (North America, etc.) Avoidable CO2 emissions through the use of renewable electricity CO2 emissions from purchased fossil-based electricity CO2 emissions from the direct use of fossil fuels

Financial Strategy Image of a cash management system for fund concentration
Steadily implementing measures Europe

to build a financial foundation Japan
for our future growth China
Americas
Akinobu Samura
Asia
Senior Vice President
Chief Financial Officer (CFO)

Management overview Financing policy and effective use of funds within the Group
Nidec celebrates its 50th anniversary this year. Since profits over the past few years, turned into the black this In financing, we raise funds for medium- to long-term In addition, to ensure effective use of funds within
its founding in 1973, despite multiple difficulties it has fiscal year, entering a stage of contributing to our profits. growth while incorporating the perspective of asset and the Group, a cash management system has been
encountered, Nidec has rapidly expanded its sales scale Against the backdrop of the spread of COVID-19 liability management (ALM), such as cash flow projections introduced for each region, such as Japan, China, and
in growth fields, which reached 1 trillion yen in FY2014 and the Russian invasion of Ukraine, the soaring raw for each fiscal year and matching sales and procurement the Americas, to effectively utilize surplus funds. We have
and exceeded 2 trillion yen in FY2022. Along with the materials prices, longer lead times, and confusions currencies, as well as taking various factors, including the also introduced a CMS that connects different countries,
growth in sales, profits have also steadily increased. in logistics had a significant impact on business following, into consideration: both growth and financial expanding the CMS network globally. Furthermore, in
In 2019, as a result of quickly sensing signs of rapid management on a global basis. As a result, we were discipline, the balance between direct and indirect consideration of recent geopolitical risks, we aim to
progress of the shift to EVs in the automotive field and forced to secure raw materials through large-lot orders, financing, and the balance between long-term and short- hedge risks and also reduce interest-bearing debt by
deploying a “standby” strategy by making advance while inventory adjustments by customers prolonged term procurement. Through these measures, we aim to redirecting surplus funds to Japan from other countries.
investments, we gained the top share in the E-Axle due to rapid fluctuations in demand, which continued stabilize our financing structure.
external manufacturing market in China. On the other to put pressure on our balance sheet. However, the
hand, the E-Axle business, which was a heavy burden on business environment is gradually returning to normal.
Evolution of ESG management
“Sustainable business growth takes hold when strategies With the knowledge of Outside Members of the Board
Shift to a dream-filled business portfolio align closely with solutions to universal issues. That is our of Directors, who make up the majority of the committee
In FY2022, our sales were 2,242.8 billion yen and tool business; new initiatives in the field of equipment firm belief and the common thread running through our members, active discussions are held from a long-
operating profit was 100.1 billion yen. Operating profit and devices, such as reducers for cooperative robots; growth-oriented thinking.” Under this basic belief, Nidec term and wide-ranging perspective. Through earnest,
decreased significantly by 41.3% from the previous fiscal businesses for the aerospace market, such as motors for upholds the promotion of ESG management as one of its continuous discussions, we will enhance the sustainability
year due to recording of 75.7 billion yen as structural Flying Cars (eVTOLs) and stratospheric communication medium-term strategic targets. Last year, we established of our business management.
reform expenses. platforms; and the introduction of green innovation- the Sustainability Committee within the Board of Directors.
In this business environment, toward achieving the net related projects, such as battery energy storage systems
sales target of 4 trillion yen announced in Vision 2025 and charging stations. By not only leveraging organic Image diagram
and further 10 trillion yen in FY2030, we are working on growth but also employing M&A strategies, we are Quarterly Monthly
electrification-related businesses, including not only the strongly promoting a shift to a dream-filled business New
automotive E-Axle business but also motors for small portfolio incorporating growth areas for the future.
ESG Materiality
EVs and electric motorcycles; entry into the machine Board of Directors Sustainability Committee
Steering Committee
Building a solid financial foundation to support growth strategies

To discuss management issues
Now the top priority in our financial strategy is to build at the same time strongly promote various measures, related to sustainability and work To implement materiality-related
a solid financial foundation that supports the growth such as significantly improving the cash conversion to help Nidec achieve sustainable initiatives and monitor their
strategy for the next leap forward. For this reason, we cycle and increasing investment efficiency by balancing growth and increase corporate value progress
carried out a large-scale structural reform last fiscal year investment with depreciation costs, from the perspective over the medium to long term
and advanced a shift in the structure of fixed costs to of One NIDEC/total optimization. Through these
one that matches the future business portfolio. Based on measures, we will ensure robust financing capacity so
this, we will realize a V-shaped recovery in earnings and that we will not miss any growth opportunity. upervising the executive organization
S Executive organization
Reflecting external opinions in embers are the
M
management Management Committee
The majority of committee members members and, in principle,
are Outside Directors, including the all Vice Presidents.
Chairperson.

Human Resources Strategy
Focusing on the Group’s unity through

initiatives to achieve medium- to The Nidec Group’s approach to human capital management
long-term growth and enhance Human capital management is a way of management
that views human resources as capital and maximizes
contributing to the company’s business performance
and other achievements from organizational or
human resources their value to improve corporate value over the medium personnel aspects. To achieve consolidated net sales of
Tomoko Hirata to long term. At the Nidec Group, the founder’s spirit 10 trillion yen in FY2030 and become a global company
Vice President is placed at the core of its human capital management, that continues to grow for the next 100 years and
In charge of managing Secretarial Office, from which the NIDEC Global Personnel Policies and beyond, we will steadily advance the development and
Human Resources Department other personnel guidelines and measures are developed. implementation of guidelines and measures based on
We believe these guidelines and measures will lead to the above approach to human capital management.

Toward enhancing human capital NIDEC Global Personnel Policies and major personnel measures
A distinctive feature of Nidec’s business strategy is while also building a foundation on which all our Group The most basic policy of the NIDEC Global Personnel Policies is “For Our Future, For Our Dream—Our organizations and
to actively engage in M&As. Because of this, we have employees can fight together across all boundaries, human resources will continue to take on challenges for the future of people around the world and our dreams.” Under
conventionally respected the autonomy of each of the I believe that we will be able to become “a global this are a policy related to organizational and human resources development and a policy related to personnel systems.
acquired companies and promoted the “federal-style” company that grows sustainably for the next 100 years
management system, in which companies mutually and beyond” and “the world’s leading solution-providing rganizational and human resources
O Personnel system policy
compete and grow within the Group. However, now business group that solves numerous problems for the development policy Reward Based on Contribution without Bias
that market boundaries have been removed due to people of the world,” which are the Vision held in our Encourage Uniqueness, Respect Team Spirit This is a policy regarding the hardware area of personnel
globalization, we are advancing a shift to “group-wide Corporate Philosophy. This is a policy regarding the software area of personnel affairs (“things” = measures related to systems and
unified management,” which connects technologies Furthermore, the NIDEC Global Personnel Policies affairs (“people” = measures related to individuals and frameworks). Based on this policy, we develop the core
and human resources developed at different companies are new important guidelines for realizing the autonomous employee groups). Based on this policy, we systems (ranking, compensation, appraisal) necessary
to address management issues for the entire Group. Vision, compiling our basic approaches to company promote organizational development measures to foster as the company’s personnel infrastructure and their
One NIDEC is a keyword in aiming to realize organization and human resources. The aim is to put a culture that accepts diverse perspectives while sharing associated systems and frameworks for organizational
management based on total optimization, which is into words the basic policies and principles for various a vision, and human resources development measures to management, relocation rules, welfare benefits, etc.
to create synergies within the Group, in other words, personnel strategies and measures that we will deploy hone individual uniqueness. from a fair, transparent, and impartial perspective.
“group-wide unified management.” in the future and thereby ensure consistency in the
However, in order to ensure that the foundation of the awareness and intentions shared on a global scale.
Nidec Group’s strengths will not be shaken due to the This includes policies related to systems that allow over “For Our Future, For Our Dream”
change in management style, it is also important to pass 100,000 employees working in the Nidec Group to play Our organizations and human resources will continue to “take on challenges” for the future of people around the world and our dreams.
on Nagamori-ism, which is the values and behavioral active roles in a fair framework and freely move between
patterns of our founder Shigenobu Nagamori, and the businesses and companies, which are expected to
Recruitment/retirement Organizational development
Nidec Way, which is the action guidelines and norms eventually strengthen the governance of the Strengthen public relations for recruitment P romoting organizational development tailored to
for employees, to the next generation. By inheriting entire group. Personnel allocation Encourage Respect
workplace conditions
the competitive advantage we have cultivated so far In-house job posting/rotation in the Group
Uniqueness Team Spirit Human resources development
E nhancing support for career development, providing
Successor (executive) development
customized training programs for management
Training candidates for President
Nidec is a global company that will grow sustainably for the next 100 years and beyond. Visualization and development of human resources Human rights, compliance, safety and health
Vision Nidec is the world’s leading solution-providing business group that solves numerous problems for with high potential Overtime work management
the people in the world. Organizational management Human rights due diligence
(corporate governance) Ranking
Building a global personnel system evelopment, disclosure and utilization of job
D
Founder’s spirit (The Challenging Road, NIDEC Way) Nomination Committee, Remuneration Committee, descriptions
executive remuneration management
Appraisal
Relocation Reward Based on perating Group-wide common evaluation and
O
E stablishing relocation rules common to both promotion criteria
NIDEC Global Personnel Policies Contributions without Bias
inside and outside Japan
Compensation
“For Our Future, For Our Dream” We will continue to be an organization that is always ready to take on challenges for the future of people around the world and for our dreams. Welfare benefits I nitiatives to increase annual income by 30% compared
E stablishing the Group-wide integrated to FY2020
Organizational and human resources development policy (for software area) Personnel system policy (for hardware area) welfare systems Adopting Group-wide common bonus payment standards
Encourage Uniqueness Respect Team Spirit Reward Based on Contributions without Bias * The personnel measures in the above diagram are mainly applied to the Japan region.
We respect individuals who We are open to diverse opinions Performance will always be rewarded in a correct, fair, open, and
proactively demonstrate their and create new value through impartial manner using simple criteria, and appropriate career
Details of our specific personnel-related activities are In addition, how we create a framework to continuously
value. honest communication. opportunities will be provided. disclosed in the annual securities report for the fiscal produce management talents is explained in the
year ended March 2023. Regarding measures for the following content. We have established systems and
Group’s unification and the establishment of human mechanisms to avoid concentration of the decision-
Human resources development Planning and operation of personnel systems
capital management, in particular, we will proactively making rights on specific individuals.
Skill development, career support, training of executives, etc. Appraisal, compensation, ranking and other systems, recruitment, attendance, salary, etc. disclose the specific details of activities and Please click the URL below to see our specific personnel-related activities.
their progress. https://www.nidec.com/-/media/www-nidec-com/ir/library/reports/FY22Q4_en.pdf
Fostering organizational culture
Penetration of philosophies, organizational development, health-oriented business management, etc.

Human Resources Strategy
Developing next-generation leaders Concept of talent pooling
Talent pools (from management rank to responsible staff rank)

Celebrating our 50th anniversary this year, we have formulated a new successor development plan with an eye Chairperson
toward the next 50 years. Under the new plan, a leader selected from within the Nidec Group will be in charge of
management in a group management framework, which will ensure that sustainable management can be maintained Succession to Chairperson
Meeting body President
no matter who becomes the leader. To implement this plan, it is necessary to continuously develop candidates for Succession to President
Executive Vice
managers within the Group. We have also established a meeting body for matters related to succession planning Presidents
Nomination Committee Board of Directors
while working to create systems to avoid concentration of decision-making rights on specific individuals.
(advisory body)
CxO and other officers
Succession to Executive
Presidents of Group companies

Vice President
1 Management structure after April 2024 (scheduled)
Shigenobu Nagamori, now Representative Director, Chairman as the founder. Hiroshi Kobe, now Representative Director, Succession to important
and CEO (Chief Executive Officer), is scheduled to leave the President and COO (Chief Operating Officer), will assume the
Officers/executives class positions in the Nidec Group
positions of Chairman and CEO and will take on the newly position of Representative Director and Chairman from April Human Resources
established “Group Representative of the Board of Directors,” 2024 to March 2028, serving as CEO (Chief Executive Officer). Selection and training of
Development Committee
without the right to represent the company. He will oversee In April 2024, one of the five persons who are currently executive management
the management operation from FY2024 onwards and Executive Vice Presidents will become President and serve as candidates in the Nidec
occasionally take the lead in providing guidance for the Representative Director, President and COO (Chief Operating Group
Management to leaders class
smooth operation of the management structure, with the Officer) until March 2028.
aim of helping to build a system that will not overlook the * The above information includes matters requiring resolution at the General
company’s performance worsening or slowdown in growth Shareholders’ Meeting and therefore is stated as unconfirmed information. Visualization, discovery,
and development of
human resources with
Management structure after April 2024 Career Development Meeting Responsible staff class
high potential for the
Nagamori Group Representative of the Board of Directors future
Matters related to the selection of candidates and human resources development in each rank are discussed mainly at
Kobe Deputy Group Representative of the Board of Directors
meetings of the committees below.
Nomination Committee Human Resources Development Committee
Chairman New Chairperson
Nagamori (CEO) Chairman Kobe (CEO) New Chairperson (CEO) New Chairperson (CEO) (CEO) On November 5, 2022, the Nomination Committee was The Human Resources Development Committee has been
set up as an advisory body to the Board of Directors. in place since FY2020, consisting of the President, Vice
President New President It discusses mainly the selection and appointment of Presidents, CxO or other officers, and the Human Resources
Kobe (COO) New President (COO) New President (COO) New President (COO) (COO) management (Directors, Executive Officers). The purpose is Department as members. It discusses mainly succession
to ensure fairness, transparency, and objectivity in deciding plans for important positions and medium- to long-term
the selection policy, selection criteria, prospective candidates, training plans for management candidates. Important
etc. for our Directors and Executive Officers by obtaining positions mentioned here refer to positions such as
2023 2024 2028 2032 2036 (FY) appropriate involvement and advice of independent Outside business unit heads and function leaders.
Directors, and to thereby further enhance our corporate
governance structure.
2 Succession planning
We have established a talent pooling system, in which, for culture and the action guidelines and norms that should 3 Policy and criteria to select President and Executive Vice President, etc.
example, Vice Presidents are pooled as candidates for CxOs be shared by all our employees, and also understand the The policy and criteria that the Nomination Committee deliberated to select the Members of the Board of Directors,
(Chief x Officers) and Presidents of Group companies, CxOs important matters for our business management are selected Vice Presidents, etc. are as follows.
and other officers and Presidents of Group companies are as candidates for President, it is unlikely that the speed of
pooled as candidates for Executive Vice Presidents, and management, which is a part of our corporate culture, will be
President Executive, etc.
Executive Vice Presidents are pooled as candidates for reduced. How can the abilities of candidates for President be
President, so that candidate talents are always prepared ensured? Is there anyone who has the abilities equivalent to The candidate must have excellent leadership skills to The candidate must be able to exercise Nidec Way, and
for all ranks and those suitable for President are gradually those of the founder? To address these risks, we will adopt be able to contribute to making comfortable societies lead the Nidec Group in a positive direction. The candidate
promoted to higher pools. We set the necessary criteria for a group management system in which multiple people with globally via the Nidec Group’s products (solution must be able to maximize the Nidec Group’s corporate
businesses), and control and lead the entire Nidec Group. value, and possess firm record of achievements that
each pool and select only those who are capable of fulfilling various abilities jointly manage the company. We believe are convincing to everyone. The candidate must have
the responsibilities and duties of the relevant role. this will lead to the maintenance and improvement of stable Executive Vice President excellent knowledge and experience, and insight for
In shifting from the traditional top-down management abilities of the company and the Group as a whole. global diversity to execute the Nidec Group’s businesses.
system to a group management system, a possible risk is Based on the recognition that understanding of our Among Nidec’s executives and Nidec Group companies’
that the speed of decision making and other management corporate culture is the most important thing for the Presidents, the candidate must be able to demonstrate * Nidec Way: Code of conduct and management knowhow to serve as guidance for the
entire Nidec Group globally.
outstanding leadership skills for reform, and have made
actions may slow down. However, because only those who management of our company, we have adopted the method
excellent contributions to the Nidec Group. The candidate
fully understand the NIDEC Way, which defines our corporate of selecting successors from within the Group. must demonstrate potential to serve as President.

Technology Strategy
Expanding the E-Axle lineup
and quickly getting ready for Effects of collaboration ~Efficiency and performance improvement through integration~
mass production Integration of parts by X-in-1, ECU integration
Integration of semiconductor components,

Ryuji Omura control boards
MCU/PMIC Micro controller unit, power management IC
Senior Vice President, Deputy Chief Technology Officer High-voltage harness Coolant channel In-car communication
Reduction of high-voltage harnesses, connectors
Head of Nidec Semiconductor Solutions Center and INV: Inverter DCDC: DCDC converter
General Manager of Business Planning and Strategy Department
Optimization of coolant channels
OBC: On-Board-Charger PDU: Power-Distribution-Unit
Optimization of in-car communication cables BMS: Battery-Management-System

and connectors such as CAN
Collaboration on semiconductor solutions Current separated X-in-1

Example of X-in-1 ECU
integration optimization
On June 5, 2023, Nidec and Renesas Electronics the X-in-1 system. We plan to launch the first PoC by the
Corporation announced collaboration on semiconductor end of 2023, which will feature a 6-in-1 system with a
solutions for a next-generation E-Axle for EVs. DC-DC converter, on-board charger (OBC), and power PDU MCU/PMIC PDU
The following day, the two companies held a joint distribution unit (PDU) as well as a motor, inverter, and Inv
press conference. gearbox. This PoC will include power devices based
Gear Inv Gear
on SiC (silicon carbide). As a second phase in 2024,
we plan to develop a highly integrated X-in-1 PoC that MCU
PMIC
incorporates a battery management system (BMS) along DCDC OBC
with other components. The second PoC will replace
BMS DCDC OBC BMS
the power devices with GaN (gallium nitride), offering
excellent performance in high-frequency operation, to
further reduce size and cost.
MCU MCU MCU MCU
Nidec selected Renesas Electronics Corporation as a PMIC PMIC PMIC PMIC MCU/PMIC
strategic partner for EV semiconductor solutions, and
3 in 1
through RFQ (Request for Quote) of the company, we
will define the necessary specs for the next-generation Coolant Coolant
EVs are increasingly adopting the EV drive motor E-Axle and advance its development. Building on the PoC
system called E-Axle, a 3-in-1 unit which integrates developed through this collaboration, we plan to rapidly CAN Bus CAN Bus
a motor, inverter, and gearbox, and Nidec has been productize E-Axle systems to expand our E-Axle lineup
shipping the 3-in-1 E-Axles since 2019. The latest trend and quickly get ready for mass production.
to respond to the growing demand for smaller size,
light weight and lower cost is the accelerating move
Trends in next-generation E-Axle (X-in-1 system)
to integrate power electronics controls such as DC-DC
converters, on-board chargers (OBCs), and power Trends in E-Axle/power electronics
1st generation -2019 2nd generation 2020-2023 3rd generation 2024-
distribution units (PDUs) into a X-in-1 platform. This move control devices
is especially remarkable in China. We are also planning
to adopt the X-in-1 for the third generation E-Axle, which Packaging progresses from combinations of individual
Motor Motor Motor
is scheduled to be launched on the market after 2024. function units to partially integrated function units,
While we can expect benefits from X-in-1 such as higher Transmission Transmission while integration of power control units progresses from
Transmission
efficiency due to total optimization, reduction in weight Inverter + MCU Inverter + MCU individual control of motor, inverter, and electric power
and volume, reduction of high-voltage cables and cooling to integrated control of multiple functions, and then to
e-Powertrain 3-in-1 Inverter + MCU
cables, and reduction of the number of semiconductors E-Axle centralized control, to form an X-in-1 unit.
and harnesses between electronic control units (ECUs), DC-DC OBC DC-DC OBC DC-DC OBC VCU: Vehicle-Control-Unit
there remain issues such as concerns about safety MCU: Motor Control Unit
PDU PDU
integrity, decline in maintainability, complicated cooling PDU
DC-DC: DC-DC cconverter
Power management 3-in-1 OBC: On-Board Charger
systems, and requirements for higher reliability of parts. BCU (individual function)
PDU: Power Distribution Unit
To solve these issues, Nidec has decided to collaborate Power electronics control Vehicle Computer BCU: Body Control Unit
VCU (partially individual control) (centralized control)
with Renesas Electronics Corporation to develop a highly
reliable and high-performance proof of concept (PoC) Units for each individual function Partial function integration X-in-1 unit
for the X-in-1 system. The PoC is designed to support (Individual control) (Partially individual control) (Centralized control)
the industry’s highest performance and efficiency as
well as smaller size, lighter weight and lower cost for Through integration, it is necessary to develop a platform with a reduced number of common parts to achieve higher development efficiency and ease of vehicle model deployment.

Business Strategies
Small Precision Motors
Review of FY2022 Medium- to long-term growth strategies
Sales increased 0.1% from the previous year to 425,333 In FY2022, the business environment surrounding As the sales volume of IT devices such as PCs and As for two-wheeled vehicles, the wave of electrification
Business Strategies
million yen, including the impact of foreign exchange this segment was severe. Global shipments of HDDs smartphones is leveling off, it is difficult to expect is surging as it has for four-wheeled vehicles.
fluctuations (an increase of approx. 63,400 million decreased from around 260 million units in FY2021 to further growth of the existing businesses of this We recognize that it is a market in which demand
yen from the previous year). Net sales of HDD motors around 170 million units in FY2022. Regarding HDDs segment. Therefore, transformation of our business for motors for drive units is expected to increase
decreased by 20.6% year on year to 78,462 million yen, for data centers, a slowdown in investment by major portfolio is crucial for our continued growth in significantly. The existing market scale of two-wheeled
including the impact of foreign exchange fluctuations IT companies led to inventory adjustments, which had the future. vehicles is about 60 million units globally, of which India
(an increase of approx. 21,000 million yen from the a significant impact on the profitability of our motors As part of the initiative for business portfolio with around 25 million units and China with around
previous year), mainly due to a decrease in the sales for HDDs. Regarding motors other than HDD motors, transformation, in addition to thermal management 15 million units (a part of them are for exports) are the
volume. Net sales of other small motors increased shipments of data centers, PCs, smartphones, etc. all (invested in Chaun-Choung Technology Corporation largest markets. Nidec is conducting its sales activities
6.4% from the previous year to 346,871 million yen, decreased, which affected the shipment volume and (CCI) in 2018), we have been focusing on motors for mainly in these two countries and has obtained orders
including the impact of foreign exchange fluctuations profitability of our motors. small EVs and electric two-wheeled vehicles. As for from several top manufacturers. In India, Nidec built
(an increase of approx. 42,400 million yen from the In FY2023, many predict that recovery in markets small EVs, a low-price EV released in China in 2020 a plant in Neemrana, Rajasthan, and has established
previous year). Operating profit decreased 37.1% from of data centers, PCs, smartphones, etc., including became the top seller in the EV market in China for a system capable of responding to the Make in India
the previous year to 26,680 million yen, including the completion of inventory adjustments, will take some the second straight year in 2022. We have received policy. We will expand this plant to establish a system to
impact of foreign exchange fluctuations (an increase of time, and the declining trend in HDD shipments is orders for and inquiries about motors for small EVs, supply motors for electric two-wheeled vehicles in India.
approx. 4,700 million yen from the previous year), as a expected to continue. Therefore, we expect that the and mass production for customers began in FY2022. Regarding areas other than the above, we see
result of the recording of approx. 5,600 million yen as business environment for this segment will continue We estimate the potential demand for low-price EVs to opportunities for significant business growth in areas
structural reform expenses in FY2022. to be severe. be in the hundreds of millions units, and we thus expect such as drones, metaverse, and medical care.
further business expansion in this field. We therefore recognize these areas as priority areas for
our Three News Activity (new markets, new customers,
new products).
Net sales Operating profit / Operating profit ratio

(Millions of yen) (Millions of yen) (%)
750,000 Organic growth 80,000 20
600 billion yen (target) 66,923

15.1
60,000 54,556 15
500,000 443,598
441,467
424,288 424,907 425,333 45,116
12.4 42,438
40,000 10.6 10
10.0
26,680
250,000
6.3
20,000 5
0 2018 2019 2020 2021 2022 2025 (FY) 0 2018 2019 2020 2021 2022 (FY) 0
Operating profit (left axis)


Business Strategies
Automotive Products
Review of FY2022 1. E-Axle profitability improvement plan 3. Enhancing the E-Axle components business
In the field of EV-related businesses, both automakers Nidec has set a new EV-related sales target of 500
Sales increased 24.4% from the previous year to profit decreased by 52,966 million yen from the and suppliers expect that severe competition billion yen in total for E-Axles and components for
519,654 million yen, including the impact of foreign previous year to a loss of 42,291 million yen, including will continue for a long time to come. Under this E-Axles in FY2025. While many major automakers
Business Strategies
exchange fluctuations (an increase of approx. 46,600 the impact of foreign exchange fluctuations (an recognition, Nidec positioned turning the E-Axle producing EVs are continuing to manufacture drive
million yen from the previous year), due mainly to an increase in profit of approx. 2,900 million yen from the business, which has been in the red since its launch, units in-house, demand for external manufacturing of
increase in sales of E-Axle drive motor systems for EVs, previous year), as a result of the recording of approx. into the black as one of the top management priorities E-Axle components has been increasing. This trend is
despite the ongoing impact of the Russian invasion 54,100 million yen as structural reform expenses in the in FY2023. Mass production of the second-generation particularly strong among major automakers in Europe
of Ukraine and difficulty for customers in procuring fiscal year under review. E-Axle, which achieved a significant cost reduction and the U.S. Considering that the growth rate of the
semiconductors and other electronic parts. Operating from the first-generation model, started on a full Chinese EV market has peaked while the future EV
scale in April 2023, increasing its ratio in shipment. market growth rate is expected to be higher in Europe
In addition to this, as a result of the shipment control and the U.S., it is reasonable to implement measures
of unprofitable models and the efforts to reduce to (1) respond to customer needs, (2) respond to needs
Medium- to long-term growth strategies costs, including general administrative expenses of European and American markets, and (3) improve
and development costs, profitability of the E-Axle the profit margin of our EV-related businesses as our
Although the target year for achieving the estimated 2022. Thus, the estimated E-Axle sales volume of 4 business improved significantly. We believe that further strategy to enhance the E-Axle components business.
sales volume of 4 million E-Axle units was postponed million units for FY2026 is the total of the sales by Nidec increasing the profit margin of this business and Investment in components for E-Axle, mainly motors, is
by a year to FY2026, our EV-related products will still for China and the sales by the joint venture with the developing it as a sustainable business without relying less costly than investment in E-Axles, and it is expected
be the core of our future growth. While the number of Stellantis Group for Europe. on borrowed capital or cash flows from other business to take less time to obtain a certain profit margin.
customers in China has increased from two to five (all of As the environment surrounding the EV industry segments for future investment will greatly contribute By steadily implementing these measures, we will
which are top BEV selling manufacturers in China), our is rapidly changing, we are evolving our business to securing our competitive advantage. ensure not only increased sales but also improved
joint venture with the Stellantis (formerly PSA) Group in strategies for EV-related products to adapt to profitability of EV-related businesses.
Europe started mass production of E-Axle in September such changes. 2. Direction of E-Axle development In addition to E-Axle, for existing automotive motors,
Customer needs for E-Axle in the Chinese EV market are such as motors for electric power steering (EPS), we
rapidly changing these days. Specific changes in needs expect also a significant increase of CAGR 13% in sales
include the following: (1) Lower power: Major output between FY2020 and FY2025. In particular, the sales
Net sales Operating profit / Operating profit ratio demand is shifting from 100 kW-150 kW to around volume of Nidec’s EPS motors is expected to increase
(Millions of yen) (Millions of yen) (%) 70 kW. (2) Higher voltage: The need to shorten charging due to two factors: 1) a rise in the rate of vehicle
Organic growth
1,200,000 45,000 30 time has generated demand for higher voltage models using EPS and 2) a rise in our market share of
1 trillion yen (target) 32,900 inverters around 800V. (3) Demand for X-in-1: Demand motors for EPS. Regarding factor 2), the reasons are
1,000,000 30,000 20 for X-in-1 systems integrating a DC-DC converter, that automobile manufacturers have been increasingly
21,196 19,526
11.1 on-board charger (OBC), power distribution unit (PDU), choosing to outsource non-core activities as a result
800,000 15,000 6.4 5.5
10,675 20 PTC heater, etc., in addition to a motor, inverter, and of the streamlining of their businesses and that our
2.6 gearbox 3-in-1 unit, is rapidly increasing. In light of competitors are withdrawing from the market.
600,000 519,654 0 0 these changes, we aim to launch the third-generation
417,643 E-Axle, which is planned to achieve a significant cost
400,000 333,241
358,075
–15,000
–8.1
–10 reduction from the second-generation model,
297,298
in mid-FY2024, earlier than the initial schedule.
200,000 –30,000 –20
–42,291
0 2018 2019 2020 2021 2022 2025 (FY) –45,000 2018 2019 2020 2021 2022 (FY) –30


Business Strategies
Appliance, Commercial &

Industrial Products
Review of FY2022 to the regional market expansion and a shift to manufacturer. FREYR will enter into a power purchase
commercial demand, recovery in demand from major agreement with a renewable energy producer for
Sales increased 16.2% from the previous year to invasion of Ukraine. Operating profit decreased customers and expansion of the customer base are the supply of 100% renewable energy and plans to
expected for motors and gears for transfer robots used manufacture semi-solid lithium-ion batteries that
Business Strategies
913,986 million yen, including the impact of foreign 9.4% from the previous year to 70,817 million yen,
exchange fluctuations (an increase of approx. 140,500 including the impact of foreign exchange fluctuations at distribution centers of E-commerce companies. do not emit CO2 in the manufacturing process.
million yen from the previous year), due mainly to (an increase of approx. 15,600 million yen from the This partnership will enable us to significantly reduce
an increase in revenue from the power generator previous year), as a result of the recording of approx. 2. Growth under medium- to long-term themes CO2 emissions in all processes, from manufacturing
business, which received many orders for large-scale 12,400 million yen as structural reform expenses in (1) Solution to labor shortage of batteries through the use of our BESS solutions
projects despite the ongoing impact of the Russian the fiscal year under review. Labor shortage is an urgent issue mainly in advanced by customers. Along with the increase in renewable
countries. Therefore, the FA-related products (servo energy, our BESS-related business is expected to
motors) business is likely to become a growth driver grow significantly.
over the medium to long term, and shipments to robot * Battery Energy Storage System
Medium- to long-term growth strategies manufacturers are expected to increase along with
the advancement of factory automation. The business
of power generators for construction machines is
Since the outbreak of COVID-19 in FY2020, businesses segment, we expect growth in the following areas in the
expected to expand as demand for mining has been Power management
producing household refrigerator compressors and medium to long term. system (PMS)
increasing due to changes in the industrial structure.
motors for air-conditioners, as well as motors and
(2) Solution related to renewable energy
gears for transfer robots used at distribution centers 1. Growth of existing businesses Power generation
The battery energy storage system (BESS*) of Nidec system
of E-commerce companies, have driven the growth of Demand for compressors for refrigerators and motors
Industrial Solutions provides the power transmission
this segment. Meanwhile, as global demand for home for air-conditioners is expected to recover after peaking
utilities of each country with the ability to store Wind power
Battery (ESS)
appliances and capital investment by E-commerce out in advanced countries, while demand in emerging generation
and stably supply the electric power generated Solar power
companies have peaked out, the driving force for countries is expected to expand over the medium to generation
with renewable energy, thereby contributing to the
performance in FY2023 has shifted to industrial long term due to an increase in personal income. It is
realization of a carbon-neutral society. In this field,
products, mainly power generators for construction also predicted that housing-related and commercial
Nidec announced on August 30, 2022 that it had
machines. Among the various businesses of this demand will increase in advanced countries. In addition
concluded a joint venture agreement with FREYR
Battery, a Norwegian semi-solid lithium-ion battery
Net sales Operating profit / Operating profit ratio Solution related to next-generation venture will be provided with control technologies of
(Millions of yen)
1,200,000 Organic growth
(Millions of yen)
90,000
(%)
12
means of transportation Embraer, the world’s third largest aircraft manufacturer,
1 trillion yen (target) 78,167
In the medium to long term, business for electric and motor technologies of Nidec, and it will supply
9.9
70,817
vertical take-off and landing aircrafts (eVTOL), a next- electric propulsion systems for eVTOL.
1,000,000 913,986
8.8 generation means of transportation and also known
786,588
7.7 as “flying cars,” is expected to be a growth field. In
800,000 60,000 8
53,025
6.9 addition, the market for urban air mobility systems,
6.0
562,604
601,611 including eVTOL, is predicted to expand and reach the
600,000
495,432
34,061 33,940
scale of 3 trillion yen in 2030 and 20 trillion yen in 2035.
The business related to eVTOL, which contributes to
400,000 30,000 4
diversification and greening of mobility, is therefore
an area with a significant growth potential over the
200,000
medium to long term. In order to enter this business,
Nidec announced an agreement to establish a joint
0 0 0
2018 2019 2020 2021 2022 2025 (FY) 2018 2019 2020 2021 2022 (FY)
venture with Brazil’s Embraer in June 2023. The joint Electric vertical take-off and landing aircraft “eVTOL”

Business Strategies
Other Products
(Machinery, Electronic and
Optical Components, etc.)
Review of FY2022 Medium- to long-term growth strategies
Sales from the Machinery segment increased by (an increase of approximately 1,200 million yen from In this segment, the newly established Machinery Regarding the reducer business, it is predicted that
Business Strategies
approximately 37.5% to 296,482 million yen compared a year earlier) and structural reform expenses of and Automation Business Unit is expected to become demand will expand due to labor shortages spreading
to the previous year. This growth was driven by 2,100 million yen. the core for future growth. Nidec Drive Technology mainly in advanced countries, which is behind the wave
the strong demand for semiconductor inspection Sales from the Electronic and Optics Components Corporation (formerly Nidec Shimpo Corporation), one of manpower saving that Nidec has identified as one of
equipment for 5G applications, higher sales of canning segment increased by approximately 19.1% compared of our Group companies, used to engage in mainly the Five Big Waves. Declining birthrates and an aging
press machines that reflect the world’s step toward to the previous year, amounting to 83,011 million yen, the reducer and press business. With the acquisition population are causing the working-age population
ending plastic pollution, and expanded reach into the including the positive impact of exchange fluctuations of Nidec Machine Tool Corporation and Nidec OKK (15 to 64) to shrink in high GDP economies, including
machine tools market. The exchange fluctuations (an (an increase of approximately 4,700 million yen from Corporation in Japan in FY2021 and PAMAS.p.A in Italy the U.S., China, Europe and Japan, which makes
increase of approximately 15,800 million yen from a a year earlier). Operating profit from this segment in FY2022, it also started a machine tool business, automation at factories an urgent task. It is therefore
year earlier) also had a positive effect on the revenue increased by 23.1% to 13,582 million yen compared expanding its business scale. In September 2023, Nidec expected that the use of cooperative robots in
growth. The operating profit increased by 10.4% to to the previous year, including the positive impact of commenced a tender offer for TAKISAWA Machine production processes will accelerate.
45,538 million yen compared to the previous year, exchange fluctuations (an increase of approximately Tool Co., Ltd. (as result of dialogue with Nidec, in which FLEXWAVETM, our high-accuracy reduction gear
including the positive impact of exchange fluctuations 100 million yen from a year earlier). the target company TAKISAWA Machine Tool Co., Ltd. for precision control, has already shipped mainly for
agreed to the tender offer). cooperative robots, and a production system has been
Initially, the acquisition of Nidec Machine Tool established in Japan and the Philippines. While we have
Corporation was aimed at obtaining synergistic effects, so far focused mainly on small robots, we are now
such as securing in-house manufacturing capacity for considering entering the medium-sized robot market,
the gears necessary to promote the E-Axle EV traction including capital investment, with the aim of expanding
motor system business. However, in working to improve the business area.
business management after the acquisition, we have In the press business, we will enhance the products
shifted to a strategy in which we not only pursue for growth fields, such as canning (plastic-free) and
synergy within the Group but also promote the EVs. At the same time, we will further enhance our
expansion of the machine tool business itself. Nidec product lineup, from small, high-speed machines to
Machine Tool Corporation, which was in the red at the large machines, thereby expanding and stabilizing the
Net sales Operating profit / Operating profit ratio time of the acquisition, improved its quarterly operating business. In August 2023, Nidec acquired full ownership
(Millions of yen) (Millions of yen) (%) profit ratio to over 10% in a short period of time as a of Automatic Feed Company and two other press
500,000 50,000 25
Organic growth result of post merger integration (PMI). The company peripheral equipment manufacturers to expand the
400 billion yen (target) demonstrated that a machine tool manufacturer product lineup.
41,232 45,538
400,000 40,000 19.1 20 with excellent products/technologies can be turned We aim to achieve net sales of 500 billion yen in
17.5
16.4
into a profitable company by introducing Nidec-style FY2025 and 1 trillion yen in FY2030 in the reducer
296,482 14.5 15.8 15.4 management. We aim to expand profits by enhancing business, press business and machine tool business
300,000 30,000 13.6 15
26,364
the product lineup, including the possibility of further in total.
22,329
215,588 21,738 business expansion through M&A in the future, and
10.4
200,000 163,966 20,000 10 stabilize the segment performance and sophisticate our
149,740 150,575
6.7 business in China.
11,029 13,582
83,011 5.3
100,000 72,672 69,699 10,000 6,315 5
60,396 60,824
4,870
3,201
0 2018 2019 2020 2021 2022 2025 (FY) 0 2018 2019 2020 2021 2022 (FY) 0
Machinery Operating profit (left axis)
Electronic and Optical Components Machinery Electronic and Optical Components

Machinery Electronic and Optical Components

Materiality
Toward Achieving Sustainability Establishment of the Sustainability Committee
In FY2022, we established the Sustainability Committee within the Board of Directors as

Basic stance
a meeting body to manage and supervise the ESG Materiality Steering Committee.
Our definition of “sustainable business management” is to improvement activities for each theme. For example, to check The operation of the Sustainability Committee allows us to secure a longer-term and broader
ensure that the direction of business strategies that the the progress of the improvement activities on a regular basis, perspective, identify current issues by working backwards from our ideal future self, or,
company pursues conforms with the path the world seeks in the ESG Materiality Steering Committee was organized. “a global company that continues to grow for the next 100 years and beyond,” and promote
order to solve social issues, and to continue the company’s We have also established a risk management system covering initiatives. By doing so, we will enhance the sustainability of our management.
robust, steady growth. both financial and nonfinancial domains so as to promptly
While we recognize the need to review our overall address risks that may arise in the future. Moreover, the CSR
Significance of the Sustainability Committee
management from a new perspective, the COVID-19 Charter, which was established in 2008 and has served as the
global pandemic has made us more strongly aware of the most important guidelines for Nidec’s CSR to date, the CSR This committee is a new structure for Nidec to allow the Board of Directors to take ultimate responsibility for
importance of being prepared for uncertainties. Thus, in order Declaration on the Conduct, which clarifies the actions that the sustainability of management. The five committee members are mainly composed of outside directors so
to ensure the sustainability of our businesses, we identified our employees should choose to take from the perspective that outside opinions can be reflected in management decisions. The members of the Sustainability Committee
five issues of materiality based on the medium-to long-term of fulfilling their social responsibilities, and all the other monitor the activities of the executive organization (ESG Materiality Steering Committee), thereby advancing Nidec’s
visions of our stakeholders both inside and outside the documents and regulations concerning CSR constitute the sustainability management.
company, and clarified 15 action themes, including “Realize a foundation for our materiality initiatives.
Materiality
carbon-free society,” “Respect human rights and follow proper We will continue to launch effective sustainability strategies
labor practices,” and “maintain and foster globally competitive by leveraging all of our philosophies and experience, with the Operation of the Sustainability Committee
human resources.” We have also established various systems aim of making our businesses more sustainable. This committee meets quarterly. For each meeting, the main agenda is set for each category of ESG materiality
to ensure the implementation of proactive and continuous issues. Similar to the ESG Materiality Steering Committee meetings, officers in charge report on the progress of
activities related to materiality and important topics for maintaining sustainability of management in line with
the main agenda. The committee chairperson reports to the Board of Directors on the committee meetings
Organization to promote materiality actions held and the status of execution of duties.
The five materiality issues Nidec has identified are associated Committee meets every month, affording almost all officers
with a total of 15 action themes, which are classified into an opportunity to report on the progress and problems of Sustainability Committee members
three phases according to the timing of the start of action.* their action themes on a phase-by-phase basis. Reports are
As a structure to check that each activity is being conducted given directly by the officers in charge of each action theme.
steadily and effectively, the ESG Materiality Steering The matters discussed and decided at the Committee
Committee is held periodically. Placed directly under COO meetings are immediately reflected in the action plan.
(Chief Operating Officer), the ESG Materiality Steering
Organization of the ESG Materiality Steering Committee

Realize a carbon-free society
Contribute to environmental sustainability
Manage waste and hazardous waste
Officers in charge: Mitsuya Kishida Executive Vice President Handle water risks
Yoshihisa Kitao Senior Executive Vice President
Akinobu Samura Senior Vice President
Outside Director Outside Director Outside Director
Provide products and services adapted to social change Control product safety and quality
Respond to changes in the technological Takako Sakai Junko Watanabe Hiroe Toyoshima
Steering Committee environment and the industrial structure
Officers in charge: Toshihiko Koseki Executive Vice President Chairperson Member Member
Protect and utilize intellectual properties
Chairperson: Hiroshi Kobe Tetsuo Yamaguchi Executive Consultant
Representative Director, President and Chief Maintain and foster globally competitive
Executive Officer Retain and develop diverse talent human resources Four main agenda
Promote diversity
Executive member: Akinobu Samura Officers in charge: Fumiaki Ushio Senior Vice President
Promote occupational safety and health, items of the
Senior Vice President Masahiro Hishida First Senior Vice President and health-oriented business management
Respect human rights and follow proper
Sustainability
Participating members:
Management Committee members
labor practices Committee
and, in principle, all Vice Presidents Build an internationally competitive supply Sustainable procurement considering
environmental and social aspects 1 Environment
chain to solve social issues
Officers in charge: V
acant 2 Governance
Secretariat
(Currently, the head of the department in charge of
(Investor Relations & materiality KPIs is responsible for reporting.)
3 H
uman resources and
CSR Promotion Department) supply chain
Create a solid governance system Build a fair, transparent and highly Internal Director Internal Director
effective governance system 4 Products
Officers in charge: Fumiaki Ushio Senior Vice President Follow thorough compliance with laws Hiroshi Kobe Hiroyuki Ochiai
and regulations
Maki Okajima Vice President Build a risk management system Member Member
Tomonori Seta Vice President Promote information security measures
Masahiro Hishida First Senior Vice President
*1 As of September 2023 *2 The Vice Presidents of Nidec assume the roles and responsibilities of a managerial position generally known as the Executive Officer.

Materiality
Materiality Initiatives
Materiality Theme to be addressed To ensure effective and steady implementation of our materiality initiatives, we have set 15
action themes in the five materiality categories. And, for each theme, we have set KPIs, which
Realize a carbon-free society we intend to achieve by FY2025 and are classified into three phases according to the timing of
implementation. We incorporate the KPIs into the new medium-term strategic goal Vision 2025,
Contribute to environmental and work on them to enhance the sustainability of our business. We may change the materiality
Manage waste and hazardous waste
sustainability issues, action themes and KPIs taking into consideration their validity according to the business
environment in the future.
Environment Handle water risks
Pursue product safety and quality

Theme to be
Materiality Sub-theme KPI (FY2025) Progress in FY2022
addressed
Respond to changes in the
Provide products and services technological environment and the Realize a Contribute to Contribute to educe CO2 emissions by
R Cumulative total sales of E-Axle
Materiality
adapted to social change industrial structure carbon-free decarbonization decarbonization introducing the EV traction exceeded 700,000 units as of
society through products through products motor system E-Axle: April 2023. Accordingly, reduced
Cumulative total from FY2020 253,000 tons of CO2 during
Products Protect and utilize intellectual P. 53 to FY2025: 11,700,000 t-CO2 FY2022.
properties Environment educe CO2 emissions by
R Regarding E-Axle itself, started
introducing electric power mass production of second-
steering (EPS) motors: generation model, which is
Maintain and foster globally Cumulative total from FY2020 smaller, resource-saving, and
competitive human resources to FY2025: 26,261,000 t-CO2 quieter than the previous model.
Promote diversity Reduce GHGs FY2025, increase the

By As a result of efforts at each
emissions introduction ratio of business site, the ratio of
Retain and develop attributable to renewable energy to 40% renewable energy introduction
Promote occupational safety and business activities on a consolidated basis in FY2023 reached 8.2%.
diverse talent health, and health-oriented business nnually disclose a climate
A Regarding TCFD, defined the
change scenario in line with automotive business as the
management
Human Resources the Task Force on Climate- business that is most likely to be
Related Financial Disclosures substantially affected by climate
Respect human rights and follow (TCFD) recommendations change, and conducted scenario
analysis regarding the climate
proper labor practices
change impact.
Sustainable procurement considering Manage waste — educe the volume of waste

R Started ascertaining the amount
environmental and social aspects and hazardous generated in intensity per unit of waste and valuable resources
Build an internationally waste sales by at least 3% from the generated by classifying
level of FY2022 resources, based on the main
competitive supply chain to P. 61 procured materials for products.
solve social issues Regarding chemical substance
management, kept track of
Supply Chain and disclosed information on
the amounts of released and
transferred chemical substances
Build a fair, transparent and highly that are designated by the
effective governance system PRTR system and used by Nidec
Group’s sites in Japan.
Follow thorough compliance with laws

Create a solid Handle water — ully complete water risk
F Assessed water risks in all global
and regulations
risks assessments at all production regions where manufacturing
governance system sites sites are located.
P. 61
Build a risk management system
Corporate Governance
Promote information security measures

Materiality
Theme to be Theme to be
Materiality Sub-theme KPI (FY2025) Progress in FY2022 Materiality Sub-theme KPI (FY2025) Progress in FY2022
addressed addressed
Provide products Pursue product reate a database for chemical substances
C By utilizing the material selection
contained in products to make it easier for database that was completed in FY2021, Build an Sustainable onduct human rights due diligence
C Made the “Nidec Group Basic Policy
and services safety and quality
the development department to determine the Small Precision Motor & Solutions internationally procurement on major suppliers: Implementation on Human Rights” known to major
adapted to social
the choice of materials, and shift to an Business Group recommended the use of competitive considering rate for high-risk suppliers by 2025: suppliers. Also participated in a
change P. 62
environment-oriented development system materials with less environmental impact supply chain to environmental 100% subcommittee of the United Nations
Implement quality management reforms within the Business Group. solve social issues and social Global Compact Japan to keep abreast
Products in the automotive-related business, In the Automotive Motor & Electronic aspects of industry trends regarding human
and establish an overall quality control Control Business Unit, as a result Supply rights due diligence.
organization and system by FY2025 of continuing management reform Chain P. 69
Conduct assessment of all newly developed related to quality, the Global Quality
products and all products during the Management Division was established as
manufacturing process to reduce product a horizontal function to oversee quality Create a solid Build a fair, Board of ontinue to have the effectiveness of
C Sent out questionnaires to all members of
safety risks assurance for the entire Nidec Group. governance transparent and Directors the Board of Directors evaluated by a the Board of Directors, including Outside
system highly effective third party Members, to evaluate the effectiveness
Respond to ontinuously launch new products that lead
C Conducted quantification of the governance and analyze current issues. In FY2021,
Always maintain the ratio of outside
changes in the the Five Big Waves to resolve social issues environmental impact of major products system directors in the Board of Directors at introduced a third-party (external law firm)
technological Continue to pursue the high efficiency and based on LCA (life cycle assessment). evaluation system.
50% or more, and the ratio of female
environment and miniaturization of motors that contribute to Also created a technology roadmap that Corporate
incorporates environmental response
P. 73 directors at 20% or more
the industrial energy and resource saving
indicators for major products, and Governance
structure
worked to promote environmental value Nominating I ncrease transparency and fairness in Established the Nomination Committee
Materiality
in product development and to foster
P. 63 Committee / the retirement and dismissal process as an advisory body to the Board of
and spread awareness.
Remuneration of directors Directors’ Meeting to deliberate on the
Protect and T ransform our IP portfolio to one that Built and transformed our IP portfolio Committee Improve the effectiveness of the policy on the appointment of Directors
utilize intellectual responds to social and business changes, for mainly products related to the Five Remuneration Committee and ensure and Executive Officers, the criteria
properties including decarbonization and power and Big Waves. Raised the proportion of the objectivity and transparency of for appointment, and the decision on
manpower saving, and use the new products related to the Five Big Waves in remuneration decisions for directors candidate proposals.
P. 63 IP portfolio the IP portfolio to 56%. Regarding remuneration of officers,
after deliberation, the Remuneration
Retain and Maintain and Develop and train global leaders: Proceeded with the cultivation of (1)
Committee reported to the Board of
develop diverse foster globally ー Identify overseas local personnel to be personnel for senior management and
Directors a review of remuneration
talent competitive candidates for executives in FY2022 key positions and (2) next-generation
leaders (management and people levels.
human resources ー Start training of executives, including
overseas personnel, from FY2023 in charge). Also promoted the early
P. 65 identification, development and Management and ased on the assumption of 5 trillion
B Strengthened the self-audit system (for
Human strengthening of human resources on a enforcement of yen for sales volume, enhance audit all business sites of NIDEC Corporation)
global scale.
Resources internal control resources in both quality and quantity and conducted monitoring at all
Promote diversity chieve the targets below related to
A Conducted the Organizational consolidated sites using DX.
women’s empowerment (non-consolidated) Performance Survey to visualize the
P. 66 in FY2022: current situation of each workplace.
Follow thorough E xpand the legal affairs and Continued the hazard map project.
ー Ratio of female directors*: 10% or higher Introduced Workplace Workshops at
compliance system to all Group
compliance Identified high-risk Group companies
ー All managerial positions held by women: each workplace where employees can
with laws and companies starting from Nidec by referring to factors such as their
8% or higher talk with each other, based on the
results of a Survey. Also introduced regulations Corporation and the regional remoteness from major sites and
ー Ratio of female candidates for management companies corruption risk information of the
career interviews, Career Plan Sheet,
managerial positions*: 15% or higher P. 81 (China, the U.S. and Europe) countries where they are located.
in-house job posting, and other
* Executive officer or higher position, including Implemented prevention measures in
initiatives. Identify serious non-compliance risks
outside directors consultation with management of such
and take priority measures
* Referring to female employees in positions companies to reduce risks.
immediately prior to managerial positions Provide compliance education to all
Recruit non-Japanese directors employees once a year
Promote — E nsure a safe and comfortable work Held seminars by industrial physicians.
occupational environment For employees with high health risks, Build a risk ll risks disclosed on the securities
A Identified areas for improvement by
safety and health, Reduce the number of serious accidents provided individual health guidance management reports are evaluated by the continuing to conduct risk assessment,
and health- (those resulting in death or permanent based on the results of health checkups system department in charge, and the risks to priority risk identification and risk
oriented business disability) to zero and encouraged them to undergo a be addressed in priority are identified reduction activities for the Business
management Improve the Lost-time injury frequency rate thorough medical examination. P. 83 Reduce the impact of the risks to be Unit level (L2). Promoted the initiative
addressed in priority on our business to interconnect the risk management
Receive certification as a White 500
Manage the progress of reducing such activities of different hierarchical levels.
P. 67 Company (in the large enterprise category)
under the 2023 Certified Health & impact and the residual risks
Productivity Management Outstanding
Organizations Recognition Program
Promote R educe the number of serious Thoroughly implemented basic
Respect human — larify human rights policies for workers
C Conducted e-learning on the theme of information information security incidents to zero measures, such as establishing and
rights and follow including those in the supply chain, and “Respect for Human Rights in Business security strictly operating an information
proper labor spread them among employees Activities.” At the same time, established measures security management system, disclosure
practices Manage working hours of employees, and disseminated the “Nidec Group’s of important information property,
including those in managerial positions, Basic Policy on Human Rights” to all P. 84 and education for officers and staff
P. 68 from the perspective of occupational safety Group companies. members. For cyber attacks, promoted
Reduce average overtime hours by Regarding management of working the introduction of defense mechanisms
improving productivity hours, conducted micro management to prevent unauthorized access from
of working hours of employees, and outside the company and to detect and
reported to and cooperated with immediately block malicious programs
relevant parties. such as computer viruses.

Environment
Realize a carbon-free society
Strategy participated in a workshop and conducted
Initiatives related to the TCFD Recommendations The automotive products business, which is a core of a scenario analysis following the procedure below.
In April 2022, the Nidec Group announced its support for the TCFD recommendations. our strategy, is an area that benefits from abundant The results of the scenario analysis and
Through scenario analysis, we will grasp the possible financial impact of climate-related risks growth opportunities associated with the advancement countermeasures were reported to the General
and opportunities and incorporate them into our management strategies. By doing so, we will of global climate actions while at the same time is Manager, Deputy General Manager, and officer in
further enhance our efforts to realize a carbon-free society. required to get carefully prepared for risks. Nidec charge of the Automotive Motor & Electronic Control
defined the automotive business as the business that Business Unit and to the Sustainability Committee.
Governance the Board of Directors, are responsible for the is most likely to be substantially affected by climate Moving forward, we will conduct scenario analysis
The ESG Materiality Steering Committee, which governance function of climate change activities. change, and it conducted scenario analysis regarding for other business segments and proceed with the
is the business executive organization related to The Sustainability Committee, consisting of three the climate change impact. Employees involved in quantitative analysis of the identified climate risks and
sustainability, and the Sustainability Committee, outside members and two internal members of the different processes, from planning and development opportunities.
an organization to supervise the business execution Board of Directors, meets once every quarter. to quality management, purchasing, sales and finance,
activities of the Steering Committee and report to
Sustainability Committee meetings agenda

Date of meeting Agenda
Materiality
lection of the head of Secretariat
E SG materiality issues and the ESG Materiality
E
1st: September 2022 Overview of sustainability management and Steering Committee
our activities Operation of the Sustainability Committee
eport on the progress of the ESG materiality
R uman rights due diligence
H
2nd: December 2022 action theme “Retain and develop diverse Response to the TCFD recommendations
talent”
idec’s technological actions that contribute to
N Report on ESG briefing
The workshop
3rd: March 2023 decarbonization Setting of policies for social contribution
Report of the ESG Materiality Steering activities and the priority areas
Steps of scenario analysis
Committee
omination of candidates for committee
N olicy for production of the Integrated Report
P Examine countermeasures STEP
4th: June 2023 members
Report on results of the TCFD scenario analysis
Regarding the FY2023 ESG briefing
2023
Setting of policies for social contribution
activities and the priority areas
Examine countermeasures for
climate risks and opportunities
4
that were evaluated to have a
large impact on business
Sustainability promotion system Identify climate risks
Report
Board of Directors
and opportunities
Sustainability Committee
STEP
2
Chairperson: Outside Director Report List a total of 40 climate-related
Members: 3 outside and 2 internal members risks and opportunities, based
CSR Committee
of the Board of Directors on the climate-related risks and
Meeting: held every quarter Chairperson: Officer in charge of CSR
Members: Head Office administrative departments, opportunities exemplified in the STEP
3 Assess business impact

Supervision
sales departments, R&D departments, TCFD recommendations

Report
and overseas production sites

Meeting: held every half year Assess the business impact from the
Supervision perspectives of the degree of impact on
business, the timing of climate risks/
Business execution
opportunities becoming apparent, and
Senior Managers’ Meeting CEO the need for prompt action
STEP
Management Committee
COO 1 Determine the assumptions for scenario analysis
ESG Materiality Scenario Timeline
Steering Committee ransition risk scenario
T hysical risk scenario
P
Short-term: 2025 /
Vice Presidents (2°C/1.5°C scenario) (4°C scenario) Medium term: 2030 /
Chairperson: Representative Director and President Based on the IPCC’s SSP1-2.6 Based on the IPCC’s SSP5-8.5 scenario Long-term: 2050
Members: Management Committee members and, scenario and RCP2.6 scenario, and RCP8.5 scenario, assume a world
Head Office Business Target
in principle, all Vice Presidents R&D and IEA’s NZE scenario, assume a where the introduction of measures
administrative sites/Group Automotive products business
Meeting: held every month departments world where various measures and and regulations to realize a carbon-free
departments companies regulations to realize a carbon-free society is slow and weather disasters are
society are introduced becoming severe.

Environment
Climate-related risks and opportunities with significant business impacts, and their countermeasures Nidec’s actions by geographically distributing its operation sites.
For the automotive products business, in anticipation of the
Impacts of climate-related risks and opportunities Countermeasures Geographical distribution of production plants
Policies and Introduction of Increase in production costs and decline in Reduction of Scope 1 emissions
expansion of the EV market, we are accelerating the building
legal regulations carbon taxes price competitiveness due to carbon taxes through actions such as switching to Nidec has a group network covering over 300 companies of a mass production system for our EV traction motor
LED lighting, introduction of energy- in more than 40 countries around the world and aims to systems (E-Axle) in China, Europe, and other parts of the world.
saving equipment, replacement with reduce geopolitical risks and climate-related physical risks
low-carbon fuels, and optimization of
manufacturing processes
Reduction of Scope 2 emissions by Group network (all global sites)
introduction of renewable energy
I ncrease in costs for introducing renewable Introduction of renewable energy at low
energy cost through long-term contracts such
* If measures are taken against carbon taxes as corporate PPA Europe
87
Increase in procurement costs due to carbon Use of low-carbon materials (including
taxes imposed on raw materials recycled raw materials) Asia North
198
Reduction of size and weight, and
America
33
resource saving by employing the “light,
thin, short, and small” technology
Introduction of multi-sourcing for
procurement
Materiality
Reduction of supply chain greenhouse Middle
East/Africa
gas (Scope 3) emissions
Transition risks
Tightening of Impairment of manufacturing facilities for Adoption of highly versatile design that 3 Central
and South
regulations for internal combustion engine-related products allows conversion to other models America
26
fuel efficiency Conversion of manufacturing
and ZEVs equipment to other products
Intensifying competition and price destruction Development of products with high
due to an increase in newcomers technological and price competitiveness
Gaining economies of scale due to the
market share expansion
Technologies Failure in Loss of business opportunities if the Joint development with customers
in September 2022, achieved a 19% reduction in weight
investment in environmental performance required by Reduction of size and weight, and Reduction of size and weight, and resource saving by
compared to Gen.1 thanks to the use of smaller magnetic
new technologies customers cannot be satisfied resource saving by employing the “light, employing the “light, thin, short, and small” technology
thin, short, and small” technology circuits and inverters, based on the high-space-factor wire-
Market Rise in raw Difficulty in obtaining rare minerals, steel Use of recycled raw materials Nidec manufactures socially and environmentally conscious winding technology, and also a substantial reduction in the
material costs, materials, and other non-ferrous metals, such Reduction of size and weight, and products by making motors smaller and lighter and amount of minerals used. In addition, the newly developed
difficulty in as high-end aluminum and copper, rising resource saving by employing the “light, resource-saving. The first-generation model (Gen.1) of our two-way oil-circulation system has improved the cooling
obtaining raw procurement costs thin, short, and small” technology EV traction motor system (E-Axle) achieved an overwhelming capability, making it possible to use magnets that require
materials Development of products that do not
use heavy rare earths or magnets
miniaturization of the motor by employing “light, thin, short, significantly less amounts of dysprosium (Dy), terbium (Tb),
Building a supply chain with high and small” technology and the oil cooling structure we had and other kinds of heavy rare earth. Moving forward, we are
supply capacity cultivated in the small precision motor business. The second planning to develop motors that do not use heavy rare earth
Acute Impact of floods, Suspension of factory operation Geographical distribution of generation (Gen.2) E-Axle, which began mass production or magnets.
submergence, Outage of infrastructure networks such as production plants
torrential rain or electricity and water supply Introduction of multi-sourcing for
typhoons Incurrence of costs for production and
transportation of other factories
procurement
Implementation of BCP
Second-generation model
19% lighter
Disruption of supply chain (business continuity plan)
First- Second-
Increase in insurance fees has significantly reduced generation generation
Chronic Impact of Difficulty in stably securing water, shortage of Geographical distribution of
Physical risks
droughts, water factory water due to water intake restrictions production plants the use of minerals model model
shortage, and Increase in costs due to rising water prices Optimization of manufacturing
changes in the Factory shutdowns due to tight electricity processes to reduce water usage
–25%
precipitation supply, constraints on raw material production Improving water reuse and
pattern and procurement capacity, increase in recycling rates Aluminum
material purchasing costs
Deterioration of water quality due to changes
Products/ Expansion of
in precipitation and temperature patterns
Increase in demand for automotive products Reduction of size and weight, and
Magnetic steel sheet –21%
– 7%
services the market for (E-Axle, EPS motors, brake motors, electric resource saving by employing
products that oil pump motors, etc.) due to the expansion the “light, thin, short, and small” Copper
Opportunities contribute to of the electric vehicle market technology
decarbonization
Significantly reduced the use of rare earth,
Market Expansion of EV Rare earth
market aiming to achieve complete non-use in the future

Environment
Risk management site* level (L1) organizations under their control, Changes in CO2 emissions along with introduction of renewable energy-derived electricity
We established a framework in which risk surveys are thereby ensuring that improvement activities are (CO2 emissions: Ten thousand tons)
conducted for each of the levels illustrated below and continuously conducted for risk reduction. 1,200
the survey results are shared and mutually used. In addition, we are working to quickly detect factors Avoidable CO2 emissions through the use of renewable electricity
that may inhibit business continuity and properly CO2 emissions from purchased fossil-based electricity
Corporate level
address them mainly through risk managers assigned CO2 emissions from the direct use of fossil fuels
(Department in charge of the risk) L3 to all sites around the world. We have conducted 900 Consolidated sales target
BCP simulation training, assuming such risks as an 10 trillion yen
L2 earthquake, flooding, and drought, at our sites both
Business Unit level
inside and outside Japan.
Renewable energy + Renewable
In FY2022, we conducted scenario analysis in the
L1
600
energy saving effect energy-oriented
automotive business segment and identified climate- Consolidated sales target
Business site level
(Renewable energy CO2 emissions
related risks (transition risks and physical risks) that 4 trillion yen
L = Level introduction rate: 80%) reduction
have a large business impact. Going forward, we will Renewable energy +
For serious contingent risks that may lead to business consider incorporating the identified climate risks into energy saving effect educing CO2
R
300 FY2040
interruption, the Business Unit level (L2) organizations company-wide risk management items. (Renewable energy emissions by
introduction rate: 40%) Carbon promoting
Materiality
will periodically check the status of the formulation of 180 neutrality Energy saving
* Major business sites: Business sites that are selected to cover 80% of the sales
BCPs (Business Continuity Plans) of the major business of the Business Unit or Group company to which they belong 100 Shift to low-carbon
50 fuels, and
0
0 Carbon offset
FY2020 FY2025 FY2030 FY2040 investments
Indicators and targets
Identifying “contribute to environmental sustainability” as one of our materiality issues, we have set the KPIs
shown below.
Greenhouse gas (GHG) emissions*1
(1,000 t-CO2)
150,837
Reduce CO2 emissions by introducing the EV traction motor system E-Axle: Cumulative total from FY2020 to FY2025: 160,000
11,700,000 t-CO2 P. 59 Scope1 Scope 2 (market standard)*2 Scope3*3 150,046
Reduce CO2 emissions by introducing electric power steering (EPS) motors: Cumulative total from FY2020 to FY2025:
26,261,000 t-CO2 P. 59 5,000 4,750
Increase the introduction ratio of renewable energy to 40% by FY2025 on a consolidated basis. P. 60
Fully complete water risk assessments at all production sites. P. 61
4,000 1,906
3,365
2,934 2,858
3,000
In addition, as a major pillar of our medium-term Introduction ratio of renewable energy*1
strategic goal Vision 2025 and ESG materiality
(%)
measures, we have set the target of achieving carbon 12 2,000
2,700 2,295 2,287 2,330
neutrality by FY2040. To achieve this target, we first aim 10.6
to substantially reduce the CO2 that Nidec emits directly

through its business activities at present (Scope 1) and 1,000 720
8.2
CO2 that is emitted in the production stage of heat or 8
593 577 511 457 71
energy purchased or used in business activities 73 62 60 57
0
(Scope 2) by making our businesses more energy 5.4 FY2018 FY2019 FY2020 FY2021 FY2022
efficient and proactively introducing renewable
*1 Data coverage rate relative to sales: FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, FY2021: 53.5%, FY2022: 62.8%
electricity. After building a solid foundation for 4
*2 For calculation of the FY2022 data, IEA country-specific emission factors have started to be used. To calculate the data of FY2021 and before, the Ministry of the Environment’s
Calculation Method and Emission Factors Chart in the Accounting, Reporting, and Disclosure System was referred to.
renewable energy-oriented CO2 emissions reduction, 2.8 2.6
*3 The GHG emissions in FY2021 doubled compared to those in FY2020 due to the expansion of businesses subject to data acquisition in Category 1 (marked by ).
we will promote a shift to energy-saving, low-carbon The GHG emissions significantly increased in FY2022 compared to FY2021 as calculations for categories 8, 11, 12, and 15 started.
fuels and employ carbon offset investments and other

measures, thereby achieving carbon neutrality in our 0 2018 2019 2020 2021 2022 (FY)
business activities by FY2040. For CO2 emitted in the
supply chain (Scope 3), we will decide a reduction plan
by FY2025.

Environment
Contributing to decarbonization through products Reducing CO2 emitted in business activities

Basic stance Specific product example ❷ Basic stance Regarding the introduction of renewable electricity,
As global trends toward decarbonization are While contributing to decarbonization through we have focused on efforts at each business site.
accelerating in response to intensifying climate change, Provision of high-efficiency, energy-saving products, NIDEC is also committed to reducing CO2 As a result of such efforts, the ratio of renewable energy
Nidec, as a global business operator, is committed motors emissions in business activities. As the Nidec Group’s introduction in FY2022 was 8.2%. Regarding TCFD,
to the development and supply of products that will The key to reducing CO2 emissions from automobiles energy use is expected to continue to increase due we defined the automotive business as the business
contribute to decarbonization. Specifically, focusing is to reduce the load on the engine and improve to the expansion of its business scale, including that is most likely to be substantially affected by climate
on products related to automobiles, which are said fuel efficiency. From this perspective, many car through M&A, we must establish a system whereby change and conducted scenario analysis regarding the
to account for over 10% of CO2 emissions around the manufacturers around the world are increasingly CO2 emissions can be reduced despite an increase climate change impact.
world, we calculate and monitor the amount of CO2 adopting electric power steering (EPS). The Nidec Group in the total amount of energy used. Under these
emissions that can be reduced if conventionally used supplies EPS motors expected to improve fuel economy circumstances, our goal for the moment is to achieve a
products are replaced with our products. by about 5% compared to hydraulic motors. dynamic shift to renewable energy.
While our contribution to decarbonization through The Group also offers electric oil pump motors
our products has been recognized to some extent by to enable the idling stop function and many other Materiality
our investors and other stakeholders, we are aware that products that will lead to the reduction of emissions of Increase the introduction ratio of renewable energy
visualization of the degree of contribution to a carbon- CO2 and other air pollutants.
Materiality
to 40% by FY2025 on a consolidated basis
free society through our products and appropriate
Annually disclose a climate change scenario in line
information communication are insufficient. Not only or other products, please see below
F
with the Task Force on Climate-Related Financial
https://www.nidec.com/en/sustainability/environment/ecofriendly/
the reduction of CO2 emissions due to the introduction Disclosures (TCFD) recommendations
of the E-Axle EV traction motor system and electric
power steering (EPS) motors, we will further work Initiatives in FY2022
to make visible our contribution to decarbonization The total number of units of our EV traction motor
through many other products, such as motors for small system “E-Axle” sold exceeded 700,000 (as of Initiatives in FY2022
EVs and electric two-wheeled vehicles. April 2023). A major initiative in FY2022 was the Starting with a simplified energy efficiency check, we
commencement of mass production of the second- are advancing the initiative to improve the efficiency of Nidec Precision (Thailand) Co., Ltd. promoting the introduction of
Materiality generation model of E-Axle, which we had been air-conditioning systems. Nidec Motor (Dalian) Limited renewable electricity
producing since 2019, in September 2022. Compared installed large fans, taking advantage of the high ceiling
Reduce CO2 emissions by introducing the EV traction
to the preceding model, the second-generation model of the press factory to reduce power consumption in
motor system E-Axle: Toward the future
Cumulative total from FY2020 to FY2025: has achieved (1) 19% weight reduction (20% better the summer.
We will continue to make these two efforts as a
11,700,000 t-CO2 torque and power density) thanks to the use of smaller
Power consumption complementary pair: to improve the energy efficiency
Reduce CO2 emissions by introducing electric power magnetic circuits and inverters, (2) significant reduction
in the use of heavy rare earth thanks to the adoption of our business and to introduce renewable electricity.
steering (EPS) motors:
First, by utilizing a tool to check the company’s energy
78% reduction
Cumulative total from FY2020 to FY2025: of new cooling technology, and (3) reduction in noise.
26,261,000 t-CO2 By providing products that are smaller and higher in efficiency and sharing best practices, we will improve
performance and have less environmental impact, we the energy efficiency of facilities and equipment at
contribute to the electrification of automobiles and each business site. Next, we will improve the total
consequently the reduction of CO2 emissions. consolidated introduction ratio of renewable electricity
Specific product example ❶
Through the replacement with E-Axle (switching from by combining the introduction of renewable electricity
gasoline vehicles to EVs), a reduction of 253,000 tons* at each business site and comprehensive renewable
Provision of “E-Axle” EV traction
of CO2 emissions was achieved in FY2022 alone.
motor system electricity procurement at the regional level. As for the
E-Axle is a traction motor system that is the heart of an * Calculated based on the number of E-Axle units sold in FY2022. TCFD, we will proceed with the quantitative analysis of
electric vehicle (EV). It comprises a motor, an inverter, climate-related risks and opportunities identified for the
and a reducer and generates rotating torque when Toward the future automotive products business, and we will also conduct
installed in a car and connected to its drive shaft. We are proceeding with the development of the scenario analysis for other business segments.
This product alone is enough to run a vehicle. In an third-generation model of E-Axle following the second-
extremely harsh competitive environment, speed is generation model, with a view to starting sales in 2024. Before After Nidec Motor (Dalian) Limited installed large
improvement improvement fans to reduce power consumption in
the indispensable lifeline for auto manufacturers in EV In addition to achieving further size reduction and the summer
development. E-Axle, the product that combines an higher performance, the new E-Axle will be developed
inverter and a reducer, can help auto makers to develop from the preceding “3-in-1” E-Axle model, which
their models more quickly than before. comprises a motor, an inverter, and a reducer, into an
“X-in-1” unit with other major components added.
We will contribute to the accelerating movement toward
decarbonization through replacement with the next-
generation models with less environmental impact and
the expansion of their sales.

rovide products and services
P
Products adapted to social change
Manage waste and hazardous waste Pursue product safety and quality
Basic stance Initiatives in FY2022 Basic stance of environmentally hazardous substances. The Business
As increasing waste has been a global social problem The amount of waste and valuable resources generated
As a manufacturer featuring an extensive product Unit is expanding the scope of its efforts and has
in recent years, Nidec is working to establish a business in FY2022 was 135,580 tons. As one way to reduce this
line-up and large supply volume, Nidec has a duty initiated the development of new materials to reduce
system to help realize the effective use of raw materials. amount by 3% per unit of sales by FY2025, we started
besides simply providing products; we must ensure the use of organofluorine compounds, which have
In addition to eliminating waste as much as possible to identify the amount of waste generated by resource
safety in every aspect, from the selection of parts in recently been viewed as problematic.
in the manufacturing process, we are also working to classification based on the main procurement materials
light of environmental friendliness to the safety of The Automotive Motor & Electronic Control
minimize the use of containers and packaging materials. for products. With this method, it is possible to estimate
products, as well as disposal and recycling. We believe Business Unit has been implementing management
Besides these, we are making continuous efforts to the material yield by comparing with procurement data.
that we can help create sustainable social infrastructure reforms related to quality since FY2021, with the
promote recycling by thoroughly sorting waste. Regarding chemical substance management, in
by providing our customers with products that can be aim of establishing an overall quality management
The Nidec Group pays sufficient attention to the use accordance with the PRTR system* based on Japanese
used in a safe and dependable manner. To realize this organization and system by FY2025. As a result, the
and storage of chemical substances at its business sites laws, the Nidec Group keeps track of and discloses
idea, it is necessary to maintain a high level of product Global Quality Management Division was established
to prevent leakage thereof, while striving to reduce information on the amounts of released and transferred
performance in terms of environmental friendliness, on January 1, 2023 as a horizontal function to oversee
the use and emissions of chemical substances as far chemical substances that are designated by the system
requiring a database that serves as a guide to selecting quality assurance not only for the automotive-related
Materiality
as possible as part of the initiative to improve and and used by the Nidec Group’s sites in Japan.
materials at the time of component design. business but also for the entire Nidec Group. Currently,
innovate production processes. The Group also utilizes * Pollutant Release and Transfer Register Moreover, now that the automotive products the Division is working in collaboration with the quality
its information systems and analysis techniques to
business has developed into a major segment assurance department in each business unit.
satisfy international regulations concerning hazardous
Toward the future accounting for over 20% of the Nidec Group’s
chemical substances contained in products.
We will save resources by reviewing development consolidated net sales, in order to satisfy the quality Toward the future
and design on the product side as an initiative to needs of all customers in the automotive industry, The Small Platform Motor & Solutions Business Unit
Materiality reduce the amount of waste generated in the future. it is important to establish a globally unified quality will continue to utilize the material selection database
Reduce the volume of waste and valuable resources Furthermore, it is important to improve the material assurance system. mentioned above to develop products that meet
generated in intensity per unit sales by at least 3% yield in the production process, so we will work to solve customer needs, such as reducing environmentally
from the level of FY2022. the problem by analyzing the generation of waste by hazardous substances.
Materiality
resource and visualizing the loss. Create a database for chemical substances contained The Automotive Motor & Electronic Control
in products to make it easier for the development Business Unit will continue to conduct assessment of
department to determine the choice of materials, all newly developed products and all products in the
Handle water risks and shift to an environment-oriented manufacturing process to reduce product safety risks.
development system. The newly established Global Quality Management
Basic stance Initiatives in FY2022 Implement quality management reforms in the Division will hold regular meetings attended by the
Water is the most important resource and is indispensable We evaluated the magnitude of water risk in all global automotive-related business, and establish an overall Quality Assurance Departments of Nidec Group
for people’s lives and industries. It is said that excluding regions where our manufacturing sites are located in quality control organization and system by FY2025. companies to ascertain the quality status of each
seawater, icebergs and glaciers, only around 1% of water order to understand and reduce the impact of water Conduct assessment of all newly developed products company and to share good practices throughout
resources on the Earth are actually utilizable. Nidec on business activities. In the evaluation, we used the and all products during the manufacturing process to the Group. We have already started to establish basic
recognizes that the risk of water resource depletion Aqueduct from the World Resources Institute (WRI) reduce product safety risks. quality assurance practices and standard documents
has a significant impact on business continuity, such and the Water Risk Filter from the World Wide Fund to guide them in the product development flow of the
as shortening or suspending plant operations. So we for Nature (WWF), which can evaluate not only physical entire Nidec Group, from understanding customer
implement water reuse and recycling initiatives to risks such as water shortages but also water-related Initiatives in FY2022 requirements to product and manufacturing process
conserve water resources. We are also working on water regulations and local reputational risks. By utilizing the material selection database that was design, and after-sales service after mass production.
risk management, such as identifying the risks associated completed in FY2021, the Small Platform Motor & We aim to establish a system in which the Global
with water withdrawals and discharge to continue our Toward the future Solutions Business Unit recommended the use of Quality Management Division will take overall control of
business activities and assessing the impact of water We will collect local information, such as local weather, materials with less environmental impact within the quality assurance for the entire Nidec Group, regardless
withdrawals and discharge on surrounding areas and external general conditions regarding water, and Business Unit, and it began using low-lead materials of business division or company boundaries.
water source areas. government administration, from manufacturing sites for some customers. The Business Unit will further
in areas where water risk may be high in the future. promote this activity and contribute to reducing the use
Materiality We will analyze the impact on business activities in
Fully complete water risk assessments at all detail by referencing this local information and detailed
production sites. business site information, such as water consumption.
We will consider risk mitigation measures while steadily
proceeding with the water risk assessment process.

Products
Respond to changes in the technological environment and Protect and utilize intellectual properties
the industrial structure Basic stance and acquisition mainly for products in the early stages
Aiming to contribute to the growth of its business of growth, such as the “E-Axle” drive motor system for
Basic stance Research and development to support through the creation of intellectual added value, electric vehicles in the “wave of decarbonization” and
Toward the realization of a sustainable society, Nidec the sustainable growth of the company Nidec endeavors to improve the value of its intellectual water-cooling modules in the “wave of 5G & thermal
is committed to promoting product development and As the world’s leading comprehensive motor properties by establishing and reinforcing a professional solutions,” to transform our IP portfolio to one that
R&D to solve global social issues through its products manufacturer, the Nidec Group has established R&D IP organization and an internationally competitive IP meets market needs. In addition, the number of our
and business activities. We regard business fields facilities that collaborate globally with the aim of portfolio. Specifically, our activities include portfolio patent applications that have been externally evaluated
related to issues that need to be given priority for contributing to a wide range of industrial fields. We have management and rights utilization suited to each stage as SDG-related* has been increasing every year.
solutions as promising growth markets, namely, the also undertaken laboratory reforms to enhance our of the product lifecycle. In addition, to carry out business We believe that this is a result of our proactive efforts
“Five Big Waves,” and we are making a concerted effort unique technologies. As part of such efforts, we further activities while respecting intellectual property rights to address social themes such as the SDGs.
to strengthen technology development to continuously strengthened the foundation of product and production of other companies, we conduct in-depth research on In recognition of these activities, in 2022 Nidec
launch new products in these fields. technologies and pursued products with high added value other companies’ intellectual property rights in advance. was selected as one of the Clarivate Top 100 Global
For more information on the “Five Big Waves,” please click the URL below. and environmental performance. The missions of the R&D Meanwhile, toward the realization of a sustainable Innovators 2023. This award analyzes intellectual
https://www.nidec.com/en/ir/management/strategy/ facilities are to develop innovative products that accelerate society, we are working on developing products to property, based on four evaluation criteria, namely,
the growth of the Nidec Group, to advance and upgrade solve social issues, such as SDGs, focusing mainly on success rate, globality, impact, and rarity, and selects
Materiality
Materiality production technology to strengthen the foundation the Five Big Waves. We will develop an IP portfolio that the top 100 innovative companies and institutions in
of manufacturing, and to create and disseminate can protect these products and ensure competitive the world, and Nidec received a high evaluation.
Continuously launch new products that lead the Five
technologies conducive to solving social issues. advantages and will transform our IP portfolio to one * Number of cases based on LexisNexis’ analysis tool “PatentSight®”
Big Waves to resolve social issues.
With its eyes focused on the needs of future society and tailored to our business.
Continue to pursue the high efficiency and the seeds of Nidec, the Nidec Product Technology R&D Toward the future
miniaturization of motors that contribute to energy Center puts its energies into research and development We will strengthen our information gathering and
Materiality
and resource saving. to create new products and technologies that will realize analytical capabilities by further utilizing analytical
Transform our IP portfolio to one that responds
a sustainable society, as well as into research in the motor tools, etc., and promote business activities strategically
to social and business changes, including
application field that will lead the growth of the Nidec while analyzing the intellectual property information
decarbonization and power and manpower saving,
Initiatives in FY2022 Group. The Nidec Center for Production Technology R&D
and use the new IP portfolio.
obtained, toward realizing a sustainable society.
To promote activities to reduce CO2 emissions through promotes research and development to achieve more Furthermore, in addition to making Group-wide
continuous product development and business efficient manufacturing by pursuing material and process concerted efforts to build an IP portfolio to ensure
activities, we worked to quantify the environmental innovation and developing cutting-edge production Initiatives in FY2022 a competitive advantage, we will actively publicize
impact of our major products, i.e., the amount of technology that utilizes digital transformation and AI. We promoted IP portfolio building and transformation these activities to make known to external parties our
CO2 emitted by the products, based on Life Cycle The Nidec System Manufacturing Engineering Center with a focus on products related to the Five Big Waves, technological and patent strengths that can contribute
Assessment (LCA). We have also created a technology develops production methods that accompany increasing the ratio of those products to 56% of our IP to society.
roadmap that incorporates environmental response technological innovation and supports the portfolio. In particular, we promoted patent application
indicators for our major products, and we are implementation of such methods in order to realize
working to promote environmental value in product manufacturing excellence with a system that integrates Intellectual property activities in line with the product lifecycle
development and to foster and spread awareness. the entire process, from the starting stage of product Market size
development to mass production. IP licensing strategy
Toward the future The Platform Development Center is accelerating
In order to provide products and system solutions that the development of E-Axle, a drive motor system for Business alliance strategy
contribute to reducing environmental impact, we will next-generation electric vehicles, to further strengthen IP enhancement strategy
strive to develop design and production technologies our competitiveness. The Nidec Semiconductor
that take into account the reduction of environmental Solutions Center, which was established in May 2022, Development policy strategy
impact of products. In pursuit of environmental value, is conducting development with a view to establishing
Time
we will promote research and development that enable a sustainable semiconductor supply chain and providing
energy saving, resource saving, and recycling (use high-value-added solutions through synergy between Introduction First-half growth Second-half growth Maturity Decline
of recycled materials) by encouraging group-wide semiconductors and motors.
IP investment IP utilization
application of the Group companies’ technologies We are confident that we will continue to contribute
conducive to environmental conservation and effective to the development of society by providing solutions
use of resources. through our products and technological development. Percentage of products related to the Five Big Waves in the IP portfolio
The Nidec Group has more than 330 business companies
FY2022
in and outside Japan, featuring the accumulation of
diverse technologies. We will continue to aim to create
new innovations by sharing and utilizing the knowledge FY2017
that each Group company has cultivated to date and by 0 20 40 60 80 100 (%)
conducting further research and development.
Decarbonization Power saving Manpower saving 5G & thermal solutions Field related to digital data Other fields

Human Resources
Retain and develop diverse talent
Employees
https://www.nidec.com/en/sustainability/social/employee/
Maintain and foster globally competitive human resources Promote diversity
Basic stance the founder, aimed at instilling Nidec’s philosophy Basic stance at each workplace where employees can talk frankly
To achieve consolidated net sales of 10 trillion yen and management mindset. Furthermore, The Nidec Group recognizes diversity as a source of with each other, based on the results of the Survey.
by FY2030 and realize the Vision to become a global in November 2022, we established the Nomination competitiveness. As we conduct business globally, We are promoting the creation of an organizational
company that grows sustainably for the next 100 Committee as a top-level committee to establish we respect and embrace the differences among culture and structure that can promote decision-making
years and beyond and the world’s leading solution- a system for the appointment of management individuals and utilize those differences to the based on a vision while respecting diverse opinions.
providing business group that solves numerous (directors and executive officers). maximum extent to effectively respond to a rapidly In addition, as values regarding careers become
problems for the people of the world, the Nidec To cultivate next-generation leaders, we conduct changing business environment and customer needs. more diverse, we have been strengthening our support
Group believes that it is crucial to maintain and training for managers to identify their strengths and People from diverse backgrounds work at the Nidec for employees’ autonomous career development
foster globally competitive talent, in other words, weaknesses as leaders. Individual feedback reports Group, which has development, production, sales, and through various initiatives, such as career interviews,
human resources capable of actively working globally. are created and utilized for on-the-job training. In research bases all around the world. In addition to Career Plan Sheet, and in-house job posting. In order
Defining those equipped with 3P attitudes (Proactive, addition, educational videos on daily dialogue (one-on- hiring talented and motivated individuals regardless to conduct fixed-point monitoring of the effectiveness
Productive, Professional), problem solving skills, and one meetings) between superiors and subordinates of their personal attributes and values, we are working of our efforts, we have incorporated items related to
cross-cultural communication skills as global human are distributed throughout the Group companies in to develop and promote human resources and create career awareness into the Organizational Performance
Materiality
resources, we develop individuals who can exercise Japan to foster the development of subordinates in a work environment in order to allow the organization Survey (introduced in FY2021). Through these initiatives,
these abilities at a high level. the organization and strengthen management skills. and individual employees to demonstrate their potential we aim to achieve sustainable corporate growth
Furthermore, in order to develop and strengthen to the fullest. In addition, we are working to refine our centered on the organization and people that support
Materiality professional human resources, we have introduced Nidec Principles, which we have cherished since our the Nidec Group.
Develop and train global leaders: the “Function-based Human Resources Management founding, in line with the times and instill them in all
Identify overseas local personnel to be candidates for System,” which supports diverse experiences from of our employees. At the same time, we are promoting Average score of the Organizational
executives in FY2022. the perspective of company functions, starting with initiatives to foster a sense of unity (alignment of Performance Survey
Start training of executives, including overseas the administrative divisions, and we are accelerating vectors) among employees within the diversity that we (item regarding career awareness)
personnel, from FY2023. the development of human resources through the should aim for as an organization. FY2021 FY2022
workplace and work that they should experience in the
Career awareness
process of becoming professional human resources. Materiality 3.19 3.31
(out of 5 points)
Achieve the targets below related to women’s
Initiatives in FY2022 Toward the future empowerment (non-consolidated) in FY2022:
Based on our basic stance on human resource We will expand the scope of candidates for next- – Ratio of female directors*1: 10% or higher Toward the future
development, we are proceeding with the cultivation of generation management personnel to include – All managerial positions held by women: Since around 2005, we have been promoting diversity
(1) personnel for senior management and key positions foreign nationals and promote early and systematic 8% or higher regarding attributes, such as hiring of women and
and (2) next-generation leaders (managers and people implementation of development measures. We have – Ratio of female candidates for managerial foreign nationals. In addition to this, we will strengthen
in charge). At the same time, we are promoting the established the Global Business School (opened positions*2: 15% or higher activities focusing on diversity of individual employees’
early identification, development and strengthening of in 2016) and the Next-Generation Global Business Recruit non-Japanese directors. values and career aspirations. As of the end of FY2022,
human resources on a global scale. School (opened in 2017) to provide opportunities for *1 Including executive officers and above and outside directors
*2 Referring to female employees in positions immediately prior to
the ratios of female directors, female managers, and
With regard to the development of personnel management candidates from Nidec Group companies managerial positions female candidates for managerial positions were
for management and key positions, the Human around the world to acquire high-level management 15.0%, 7.0%, and 12.9%, respectively. The ratio of
Resources Development Committee was established knowledge required of leaders of global companies. female directors reached the target due to active
in FY2020 to visualize key positions in the Nidec The Schools were suspended in recent years due to the Initiatives in FY2022 participation of female outside directors, whereas
Group and discuss the appropriateness of the COVID-19 pandemic but will be resumed successively. To achieve the empowerment of women set as the ratios of female managers and female manager
succession plans (successor development plans) We will strengthen development of management a materiality KPI, it is important to create a work candidates have increased year by year, but still fell
among executives. At the same time, we identify personnel by providing opportunities to acquire environment that allows the organization and individual short of the targets. In order to achieve the targets of
potential candidates for the next generation of knowledge and put it into practice. In the development employees to demonstrate their potential to the fullest. these indicators, in addition to continuing to support
management personnel and promote strategic early of next-generation leaders and professional human To this end, we have been promoting organizational in-house development and appointment, we will
development initiatives. In FY2022, we accelerated resources, in order to promote autonomous growth, we development with the aim of stimulating relationships further expand the scope of diversity and vigorously
the development of candidates for managerial will expand the lineup of human resource development among employees and improving the performance promote diversity and inclusion initiatives to maximize
positions. In addition to assigning highly difficult measures (e.g. a customized training program in of each workplace and eventually of the entire organizational performance by leveraging not only
tasks such as corporate restructuring and promotion, which employees can take courses of their choice) and organization. We have introduced an “Organizational attributes of individual employees but also their values
we have held a monthly “training school,” taught by strengthen our career development support. Performance Survey” designed to visualize the situation and aspirations.
of each workplace and “Workplace Workshops”

Human Resources
Promote occupational safety and health,

and health-oriented business management
continue to maintain a safe work environment and aim Most of the labor and ethical problems arising at
for zero serious accidents. workplaces these days are said to be attributable to
Basic stance Health management promotion system inadequate management of human rights. Being fully
The declining working population is a social challenge Initiatives in FY2022 aware that we are responsible for not only human
for the world, including Japan. Companies are required Management Collaboration We achieved the planned targets for the materiality rights issues inside our business sites but also labor
to take good care of their limited labor resources by (Senior Managers’ Meeting, etc.)
KPIs related to safety activity checks and remote and ethical issues arising in our supply chains, we will
Health insurance
supporting the health management of individuals, Report and safety checks. endeavor to create safe and secure workplaces where
union
thereby helping to maximize the value of their human deliberation diverse human resources can play an active role.
Target Results
resources. To this end, it is essential to create a work Industrial physicians
Health Promotion Committee Safety activity check 3 sites or more (per year) 3 sites (per year)
environment that increases employee motivation Leader: Director in charge of human resources Occupational health & Materiality
Remote safety check 36 sites or more (per year) 36 sites (per year)
and productivity. safety staff Clarify human rights policies for workers, including
Execution and
Under cooperation between the company and promotion those in the supply chain, and spread them among
employees, the Nidec Group is promoting health- Employees’ association Toward the future employees.
oriented business management, focusing on the Business sites and (representing employees) We will continue to work to prevent similar accidents
employees Continue to manage the working hours of employees,
creation of a safe and comfortable work environment
Materiality
on a global level by remotely checking the safety of including managers.
that enables employees to fully demonstrate their manufacturing processes and facilities using webcams.
abilities, and improvement of employee safety and Reduce the average overtime hours by improving
health. The Health Promotion Committee, which has Lost-time injury frequency rate productivity.
been established as a cross-departmental organization, Initiatives in FY2022 (Frequency rate)
plays a central role in enhancing systems for health We held health seminars by industrial physicians to
1.31
management and promotion. In addition, health improve employee health literacy and the overall 1.20 1.20 1.21 1.25
Initiatives in FY2022
seminars by industrial physicians and health awareness health of our employees. Each year, the theme of the 1.2
Each year, we implement various activities to promote
surveys targeting all employees are conducted to seminar is decided based on the results of the Nidec 0.87 human rights awareness, in conjunction with
0.9 0.78
improve the health literacy of employees. We have Health Survey, an annual internal health survey. 0.66
0.73
International Human Rights Day and Human Rights
achieved a total smoking ban on the premises of The seminar in FY2022 focused on the topics that were 0.6 0.5 0.5 Week. In FY2022, we conducted e-learning on the theme
0.4 0.4
our domestic business sites. We are thus promoting highly requested by employees and that were directly of “Respect for Human Rights in Business Activities” and
health-oriented business management. related to their health issues (e.g. stiff shoulders, 0.3 0.1 once again disseminated the “Nidec Group’s Basic Policy
back pain, sleep, smoking cessation, mental health). on Human Rights” to all Group companies. With regard
0.0
Materiality In addition, for employees with high health risks, 2018 2019 2020 2021 2022 (FY)
to the management of working hours, in addition to
Ensure a safe and comfortable work environment. we provide effective individual health guidance based All of Nidec Non-consolidated Manufacturing industry in Japan (average) proceeding with consideration to optimize the number
on the results of health checkups and encourage them * Lost-time injury frequency rate: Number of deaths and injuries from occupational
of managerial personnel, we micromanaged the working
Reduce the number of serious accidents (those accidents / Total work hours x 1 million hours
to undergo a thorough medical examination. Deaths and injuries per 1 million hours worked in total. Calculation of consolidated hours of employees and properly reported to and
resulting in death or permanent disability) to zero. data began from FY2019.
coordinated with the relevant parties.
Improve the lost-time injury frequency rate. Toward the future In addition, we advised employees and their
Receive certification as a White 500 Company (in the Currently, each Group company in Japan is implementing supervisors who reached a certain number of working
large enterprise category) under the 2023 Certified its own health management and promotion initiatives, Respect human rights and hours in the middle of the month to make work
Health & Productivity Management Outstanding but eventually we will build a foundation for promoting
Organizations Recognition Program. health-oriented management throughout the Nidec follow proper labor practices adjustments through adequate communication.
Group. We will implement medium- to long-term Toward the future

initiatives to strengthen our industrial health system, Basic stance
We will strengthen our human rights due diligence
visualize the health status of the entire Group, and Recognizing the importance of considering human rights in
Health global business environments, Nidec responds to diversifying
in order to understand and minimize human rights
operate a cycle of improvement. We will continue our risks at each Nidec Group site and in our supply chain.
Aiming to create a work environment that promotes our efforts to promote the physical and mental health of our human rights-related issues in line with relevant international
Specifically, we will conduct investigations at all of our
employees’ mental and physical health and help them employees and to create a work environment in which guidelines. The Nidec Group CSR Charter provides for respect
global locations on human rights issues centered on
shine at Nidec to the greatest extent possible, they can maximize their activities. for human rights, while the Nidec Group Declaration on CSR
our basic human rights policy and will strive to take
we have a Health Promotion Committee in place. Conduct, which complements the CSR Charter, prohibits
appropriate corrective and preventive measures.
Each business base has health promotion personnel to forced labor, child labor, and discrimination and inhumane
Safety treatment and guarantees proper wages, work hours,
We will continue thorough efforts to ensure proper
launch measures tailored to its workplace while working working hours and prevent occupational accidents,
in collaboration with industrial physicians, i.e., health Ensuring the safety of employees is assigned the non-work days, leave, freedom of association, and the right
thereby fulfilling our social responsibility as a company
experts, and a health insurance union for the entire highest priority at all the Nidec Group’s business sites, to collective bargaining. In 2021, we established the “Nidec
that employs over 100,000 people across the Group.
company to promote health-oriented including those newly established and those that were Group’s Basic Policy on Human Rights,” which organizes our
business management. stance and initiatives regarding respect for human rights.
added through M&A. The Nidec sites in Japan have
a safety and health committee in place to discuss lease click the URL below to see the Nidec Group’s Basic Policy on
P
Human Rights.
measures to secure the safety of all the sites. We will
https://www.nidec.com/en/sustainability/social/humanrights/

Supply Chain Build an internationally competitive supply chain to solve social issues
Responsibility for the entire supply chain
https://www.nidec.com/en/sustainability/social/supplychain/partner/
Sustainable procurement considering environmental and social aspects
Basic stance Initiatives in FY2022 CSR audit of suppliers Holding CSR seminars at major sites
Working in collaboration with its suppliers, the Nidec In cooperation with the Human Resources Department, Since FY2010, the Nidec Group has been auditing its As Nidec promotes CSR activities throughout its supply
Group promotes CSR activities throughout the entire we made the “Nidec Group’s Basic Policy on Human major suppliers* on-site. In FY2022, we conducted chain, it is important that our procurement personnel
supply chain. As part of such efforts, the Nidec Group Rights” known to major suppliers. on-site audits on 122 suppliers, mainly in Asia. first understand Nidec’s CSR policies. Since FY2018,
Supply Chain CSR Promotion Guidebook and the We also participated in a subcommittee of the * Refers to suppliers and other business partners who frequently go onto and off of the
Nidec Corporation and Nidec Group companies in Japan
Nidec Group’s Basic Policy on Human Rights, which United Nations Global Compact Japan to keep abreast premises of our Group companies, including dealers in indirect materials (cardboard, have conducted CSR seminars for purchasing personnel
adhesives, grease, packing tape, pallets, etc.), equipment manufacturers, dormitory
provide more specific standards established in line of industry trends regarding human rights due operators (food manufacturers, security guards, etc.), and temporary staffing agencies based on the Nidec Group Supply Chain CSR Promotion
with the pillars of the CSR Charter, are rolled out to all diligence. We actively reflect industry trends in our Guidebook. With the aim of conducting human rights
suppliers. To ensure that suppliers also fulfill their social internal activities. For example, we have improved the due diligence on major suppliers by 2025, in FY2022
Numbers of supplier CSR audits conducted we reviewed the training content and discussed future
responsibilities, we require our suppliers to comply content of the Nidec supplier CSR self-assessment to
with the “Nidec Group Supply Chain CSR Promotion be conducted in FY2023, based on the information
(case) implementation plans.
Guidebook” in our basic purchasing agreement. obtained through the subcommittee meetings. 150
132
We will continue to engage in procurement activities FY2020 FY2021 FY2022
Materiality
123 122
that take into consideration both social aspects, such Toward the future 120 Number of participants in the
as prohibition of child and forced labor and reduction While continuing to disseminate the “Nidec Group’s CSR seminar for purchasing 169 250 —
personnel
of long working hours, and environmental aspects, Basic Policy on Human Rights” and keep abreast of 90
such as energy consumption, biodiversity, and waste/ industry trends regarding human rights due diligence,
resource use at suppliers. We ask our suppliers for their we will review the content of the Nidec supplier 60
continued cooperation. CSR self-assessment. From FY2023, we will address
lease click the URL below for the “Nidec Group Supply Chain CSR
P insufficient identification of human rights risks, which
30
Promotion Guidebook.” is an issue about the current Nidec supplier CSR
https://www.nidec.com/-/media/www-nidec-com/corporate/ self-assessment.
procurement/green/pdf/Supply%20Chain%20CSR%20 0 2020 2021 2022 (FY)
Guidebook%20EN.pdf
We will also identify potential human rights risks
mainly in the upstream supply chain, based on the
results of the Nidec supplier CSR self-assessments and Nidec Electronics (Thailand) holds a session to explain
Materiality
Conduct human rights due diligence on key suppliers: interviews. For the identified human rights risks, we will the Responsible Business Alliance (RBA)* to ensure
100% implementation rate for high risk suppliers as determine the priority level of our efforts, based on the that all of its suppliers understand Nidec’s CSR. Nidec
of 2025. probability of their occurrence and the severity of their Electronics (Thailand) also holds presentation meetings
impact when they occur. on CSR procurement for its major suppliers and audits
them on-site, based on the results of advance survey
Nidec supplier CSR self-assessment sheets. Since FY2013, our CSR audit standard has been
Starting from 2018, we have conducted the Nidec based on the RBA, and we select targets for CSR audits
CSR procurement flow
supplier CSR self-assessment to understand the status mainly from new suppliers. In FY2022, we implemented
1 Work sincerely and of CSR procurement and have our supply chain partners activities with the target of requesting 27 of our
honestly report on the status of their implementation of the suppliers to comply with CSR audit standards.
2 Respect human
Nidec Group Supply Chain CSR Promotion Guidebook * RBA (Responsible Business Alliance) is an organization established for the purpose of
rights and labor
and the Nidec Group’s Basic Policy on Human Rights. solving social, environmental and ethical issues in the supply chains of the electronics
3 Coexist harmoniously industry.
Nidec Suppliers The survey is designed to assess the status of each
with the environment
Purchase materials 4 Ensure occupational Sale supplier’s CSR activities, based on a total of 111 items in
and components safety and hygiene Chapters 1 through 6 of the Nidec Group Supply Chain
5 Maintain good CSR Promotion Guidebook. Regardless of whether the
relations with society
evaluation is high or low, feedback, etc. is provided to all
6 Management system
suppliers to encourage further improvement.
FY2020 FY2021 FY2022
Number of suppliers that

conducted a Nidec supplier CSR 698 667 732
self-assessment

Corporate Governance Create a solid governance system
Interview with an Outside Member of the Board of Directors

INTERVIEW
Ms. Takako Sakai has served as an outside director of Nidec since 2020. She also serves as the head considered sufficiently. Internal members accept such points lead others and encourage their growth.” In addition to
of the Nomination Committee and Sustainability Committee, meeting bodies that symbolize the without a sour face, and they immediately take necessary these important points, we also examined each candidate’s
future of the Company. The following is an interview with her, in which she talks about how the measures. The speed of their action is truly amazing. sincerity and integrity, mental strength to not be easily
Company is changing. swayed, and business foresight, using the results of the
—Next, let me ask you about the Nomination 360-degree evaluation as a reference. In order to select
Committee. This is a new committee that was just individuals who excel overall in a balanced way, rather than
established at the end of last year, but is it also operated those with one particular talent, we also had the opportunity
I believe there is great significance in a free and open atmosphere? Has an atmosphere to interview Chairman Nagamori and President Kobe in
been created in which outside members of the Board can great detail about the personalities of the candidates.
in that the Sustainability Committee Takako Sakai express their frank opinions to Chairman Nagamori and
serves as a forum to gather and
Nomination Committee Chairperson President Kobe? —It is an extremely difficult task to identify people who
Remuneration Committee Member
Sustainability Committee Sakai: Chairman Nagamori is one of Japan’s leading can lead the Nidec Group in the future together with its
consolidate internal knowledge.
Materiality
Chairperson business leaders. In that sense, I feel a sense of tension global employees.
when I meet him at committee meetings. However, all Sakai: I feel a heavy responsibility far beyond my
Committee members have a strong sense of “saying what imagination. That’s why I want to see it through to the
needs to be said,” so discussions never get bogged down end. In the selection of the president, we will continue
—First, let me ask you about Board of Directors’ chairperson, that is, how to treat members’ opinions fairly. or are monopolized by some particular person. Once, discussions until we are all convinced so that we will never
meetings. Board of Directors’ meetings are important Chairman Nagamori and President Kobe brought a draft have any regrets.
meetings that even employees have very little —A very lively, yet mutually respectful discussion is for the selection process for executive vice presidents, but
knowledge. What kinds of matters are handled and taking place, isn’t it? How do you yourself express your after much discussion at the Nomination Committee, drastic —I would also like to ask you about the Sustainability
discussed at Board of Directors’ meetings? Do outside opinions in discussions? changes were made to some elements. The Committee Committee, the other committee that you serve as
members of the Board also actively express Sakai: I have tried to present points of discussion, for members all expressed their honest opinions on the chairperson. What role do you think the Sustainability
their opinions? example, what is the purpose and significance of the project, proposition of “what kind of corporate leader is appropriate Committee, which has been in existence for about a year,
Sakai: A variety of matters are brought up at the Board of whether it has been deemed necessary and appropriate for a company in the new era of Reiwa,” and the conclusions should play in the future?
Directors’ meetings, but I have the impression that they based on the market outlook, and whether a rigorous drawn from discussions are certainly reflected in the Sakai: Until now, Nidec Corporation has focused its energy
deal particularly with investment proposals, such as loans investigation has been made to ensure that it does not Company’s movements. mainly on its own growth. In other words, the Company has
to subsidiaries and acquisitions of companies. All members violate laws and regulations. Over the past three years, been thinking about its own survival for the past 50 years,
of the Board of Directors, including us outside members, I have learned the “points to which particular attention —You are laying the foundation for human resource but for the next 50 or 100 years, it must also consider the
actively discuss the appropriateness and cost-effectiveness should be paid in business activities of Nidec Corporation,” development so that the Nidec Group can continue to sustainability of the international community and the global
of such proposals. Very active discussions are held, and I so I try to indicate the meaningful points of discussion by grow without problems even as the generation changes. environment at the same time. Under such circumstances,
feel the great energy of a company seeking to become a leveraging my experience and knowledge. For example, when Sakai: Yes. I believe that if the selection process for I believe there is great significance in that the Sustainability
10-trillion yen company by 2030. Recently, in connection with discussing risks associated with acquisition of a company, successors has been firmly established, the Nidec Group Committee serves as a forum to gather and consolidate
“One Nidec,” there has been a noticeable increase in matters I would point out the necessity to check with the accounting should be able to continue its business for many years to internal knowledge. Although we are still in a trial-and-error
related to the chain of command of the entire Group. staff of the acquiree company to determine whether there come with the participation of young people. I am honored phase, we intend to make it a meaningful meeting body
The number of matters that require consideration by the are any risk factors of concern and to implement robust to be involved in important discussions about the future of from the perspective of improving corporate value over the
Sustainability Committee and Nomination Committee is also preventive measures, or something like that. the Nidec Group. I am sure the other two outside members medium to long term, while referring to the opinions of the
gradually increasing, indicating that the governance of the Meanwhile, when a problem occurs, I would suggest a of the Board share this sentiment. committee members and the operating secretariat.
Nidec Group is being further strengthened. point of view that should be kept in mind when reviewing
One of the characteristics of Nidec’s Board of Directors and reinforcing measures to prevent recurrence. Each —The recent executive vice president selection was the —Finally, please tell us about your expectations for
is its prompt and quick response to any matter. Once the member of the Board makes perceptive comments related first step in the process of selecting successors, which Nidec in the future.
discussion is complete, the matter is dealt with in the to his or her area of expertise, and adequate time is spent will be the cornerstone of the Nidec Group. Did you Sakai: The Nidec Group is trying to accomplish a major
following month, and the results and progress reports for discussion. conduct any interviews with the executive vice change in the form of generational change in this era of
come up at that month’s Board of Directors’ meeting. president candidates? instability and uncertainty. It is not an easy task, but I would
I was surprised at this speed. —I have heard that outside members of the Board in Sakai: Yes. We conducted online interviews with each like you to take this opportunity to solidify your approach
I was also surprised at first that Chairman Nagamori particular are making perceptive points. candidate. Based on the selection criteria, we first checked to human resource development, which will serve as a
listened to the opinions of the Board members very Sakai: Each of the outside members of the Board of “whether the candidate understands Nidec’s corporate cornerstone for the times to come. I hope that you will
seriously. He always listens carefully to the opinions of the Directors has a wealth of knowledge and individuality, and culture and practices it.” Next, we paid attention to “whether carefully build a system that will enable all individuals to
Board members to the very end, regardless of whether each has a different perspective backed by his or her career, or not the candidate is able to add-on his/her thinking to demonstrate their abilities and grow, regardless of their
they are internal or outside members. From this attitude so they relentlessly dig deeper into the points that internal new trends and clearly envision the future of the Company” rank, job responsibility, age, gender, nationality, or any
of Chairman Nagamori, I learn how to be impartial as a members may not easily notice or that they have not and “whether or not the candidate has the qualities to other attribute.

Corporate Governance
https://www.nidec.com/en/ir/management/governance/
Governance
Build a fair, transparent and highly effective governance system History of Nidec’s corporate governance
(FY)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Basic stance evaluation and analysis. In FY2022, the supervisory Company with an Audit &
The purpose of the corporate governance of the Nidec function of the Board of Directors was highly evaluated Supervisory Committee
Board of Company with an Audit & Supervisory Board
Enhance the supervisory
Group is to become a conscientious and principled as in the previous year, and we confirmed that our Directors
function of the Board of
company that earns society’s trust and to increase our Board of Directors is functioning properly. Based on system
Directors and improve the
design
corporate value sustainably, based on the motto “High the results of the questionnaires, we will continue to soundness and transparency
of business management
growth, high profit, and high share price.” To this end, formulate measures for constant improvement.
we maintain and enhance our internal control, thereby In November 2022, we established the Nomination
running our business more healthily and efficiently. Committee as an advisory body to the Board of
Separation of Executive officer system introduced
Furthermore, we disclose information appropriately Directors. The Nomination Committee deliberates supervision
to increase the transparency of the Company’s on the policy on the appointment of directors and and Respond to global business expansion and rapid changes in the business environment
execution
business operations. executive officers, the criteria for appointment, and the
We are also committed to ensuring the independence decision on candidate proposals. In FY2022, five vice
Outside Female Outside
and diversity of the Board of Directors by taking into presidents were appointed. members of outside members of
Materiality
account, among others, the balance of the knowledge, Regarding remuneration of officers for FY2023, after Outside the Board members of the Board
members of of Directors the Board of Directors
experience and qualifications of the Board of Directors deliberation, the Remuneration Committee reported to the Board of appointed of Directors increased
as a whole and the number of its members, based on the Board of Directors a review of remuneration levels. Directors Improve the introduced Further
effectiveness of Improve improve
its diversity in gender, career history, age, etc. and on management diversity effectiveness
Nidec’s business scale. Based on the understanding Toward the future oversight and of the Board
transparency of Directors
that corporate governance is one of the highest-priority To ensure the effectiveness of the Board of Directors, in decision
issues for our sustainable growth and medium- to long- it is important to provide sufficient information and making
term improvement in corporate value, we will make secure opportunities for discussion on each agenda Ratio of Outside Ratio of Outside
Directors
efforts to enhance the relevant systems. item, as well as to provide appropriate information Directors
on the industry and market in advance. These will 20%

promote non-executive directors’ understanding of
Materiality 60%
our business. Therefore, we plan to continue to hold
Board of Directors
preliminary briefings and informal meetings* attended
Continue to have the effectiveness of the Board of (2 outside (6 outside
by the Representative Director and President, Executive directors out of directors out of
Directors evaluated by a third party. 10 directors)
General Managers of Business Units, executive officers, 10 directors)
Always maintain the ratio of outside directors on the and others while enhancing discussions at
Advisory Committee for the Board of Directors

Board of Directors at 50% or more and the ratio of these meetings.
Nomination
female directors at 20% or more. The Nomination Committee deliberates on the Committee
Nomination Committee / Remuneration Committee nomination and appointment process, which is then
Increase transparency and fairness in the resolved and stipulated at the Board of Directors’
appointment and dismissal process of directors. meeting to enable dissemination of information
Remuneration
Improve the effectiveness of the Remuneration internally and externally as well as to candidates, Committee
Committee, and ensure the objectivity and thereby enhancing fairness, transparency, and
transparency of remuneration decisions for directors. objectivity. In FY2023, the Nomination Committee plans
to nominate vice presidents for FY2024. The Committee
Sustainability
will also nominate a president for the first time since Committee
it was established. We will also continue efforts to
Initiatives in FY2022 improve the effectiveness of the Remuneration
To ensure the effectiveness of the Board of Directors, Committee by taking necessary measures while taking Outside
Directors’
Nidec annually sends out questionnaires to all into account the social situation and requests from Meeting
members of the Board of Directors, including outside our stakeholders. (informal
meeting)
members, to evaluate its effectiveness and analyze * Meetings to be held to explain management strategies and businesses, conduct site
current issues. In FY2021, we introduced a third-party tours, and share opinions from investors and other stakeholders
Board of
(external law firm) evaluation system for objective Directors
effectiveness
evaluation

Governance
Internal member of the Board of Directors Male

Corporate governance structure Outside member of the Board of Directors Male Female
Themes of deliberations at the Board of Directors meetings
Themes of deliberations/reports at the Board of Directors meetings (FY2022)
Shareholders’ Meeting
Category Percentage Category Percentage
Appoint / Dismiss Appoint / Dismiss Appoint / Dismiss
Human resources 31.5% Business strategies, sustainability, governance 4.2%
3 Report Financial results 27.4% M&A 3.6%
Nominating Committee
Members of the Committee Individual matters 24.4% Shareholders’ meeting, shareholders 1.8%
Consult
4 1 Audit / Supervise 2 Audit & Supervisory Compliance, risk management, internal control 7.1%
Report Board of Directors Cooperate
Remuneration Committee Committee
Members of the Members of the
Members of the Committee Consult Board of Directors Committee Questionnaire survey on the effectiveness of the Board of Directors (efforts and evaluation)
Sustainability Committee Report Efforts made in FY2022 to ensure effectiveness

Continued to provide explanation for outside members of the Board Provided information on investment projects by such means as
Members of the Committee
of Directors prior to Board meetings so that they can be provided with explaining their relationships with the medium- to long-term strategic
sufficient information on each item of the agenda and opportunities goals at the Board of Directors’ meetings.
Audit / Supervise
for discussion. Disclosed a skills matrix at the time of director appointment, and
Cooperate
5 Promoted understanding of our business by non-executive directors at explained the career background, skills, etc. of the persons appointed
Report
Materiality
Information Security Compliance Risk Management
CSR Committee informal meetings (explanation of business and online plant tours) and as executive directors or other responsible executive positions
Committee Committee Committee
shared information obtained from investors and other stakeholders on upon appointment.
Supervise a continuous basis.
Report Supervise
FY2022 evaluation results
In addition to the size, composition (ratio of internal and outside established to facilitate fruitful discussions at Board of Directors’
Execution directors, diversity, etc.), meeting frequency and length, and the quality meetings and that free, lively and fruitful discussions were actually
CEO of information and explanation provided to Board members, the Board taking place. In addition, the overall supervisory function of the Board
of business Accounting of Directors was highly evaluated in terms of the following points: “The of Directors was highly rated, and it was also confirmed that substantial
COO operations Audit Auditor Board functioned sufficiently on the whole,” “Board materials cover all discussions were conducted on issues such as sustainability, which has
6 Executive
necessary information,” and “The Board provides sufficient oversight to been increasingly recognized as an important management issue in
Management Meeting
ensure that the development of potential management successors is recent years. This third-party evaluation system has been implemented
CFO carried out in a planned manner with sufficient time and since FY2021.
7 Management resources given.” As for issues, several respondents pointed out that Board of Directors’
CPO A third party (an outside law firm) also gave high marks to the meeting materials should be provided earlier, while others pointed out
Committee
effectiveness of the Board of Directors in general, including its the need for deeper discussions on medium- to long-term management
CCO
ESG materiality composition and operation, and confirmed that a system has been strategies and issues. Further improvements are considered necessary.
Steering Committee
Corporate Administration & Internal Audit Dept. CSO
Initiatives for FY2023
CSCO Based on the view that appropriate prior provision of industry and market information to non-executive directors will lead to
Internal
CTO CAO enhanced deliberations, the following initiatives will be implemented to promote their understanding of Nidec’s business.
audit
– Review the themes of the preliminary briefing sessions and informal meetings that are currently being held, and hold them
regularly four times a year.
Vice President Vice President Vice President Cooperate
– Continue to provide business overviews by the Representative Director and President and the Executive General Managers of
R&D Bases Administrative Bases Sites/Group Companies Business Units at the Audit and Supervisory Committee meetings.
Consider progress reports on matters to be brought to the Board of Directors at preliminary briefings for non-executive directors.
Level out the number of items to be discussed each month by, for example, bringing regular agenda items forward for discussion.
Corporate Philosophy and Action Principles
(Mission Statement, Governance Policy)
(June 30, 2023) Skills matrix

Professional skills and experience required of members of the Board of Directors * Maximum of three
Business Technology Internationality, Human resources Environment Legal affairs, Finance and Governance, risk
Name
strategy and R&D global experience development and society compliance accounting management
1 Board of Directors Shigenobu Nagamori
Status of operation Hiroshi Kobe
The Board of Directors makes material management decisions and oversees the Group’s business operations as a Kazuya Murakami
whole. The Board of Directors includes highly independent Outside Members, to enhance the supervisory function of
Hiroyuki Ochiai
the company’s business operation and improve management transparency and objectivity.
Shinichi Sato
Yayoi Komatsu
Takako Sakai
Aya Yamada
Junko Watanabe
Hiroe Toyoshima

Governance
2 Audit and Supervisory Committee 4. Forfeiture, etc. of remuneration (clawback/malus)

The amounts of fixed and variable remunerations may be should, on or after the day when his/her right to receive
The Audit and Supervisory Committee audits the execution of duties by the Board of Directors’ members,
reduced if the recipient has caused serious damage to the compensation is finalized, commit an illegal action such
and receives audit reports from the Accounting Auditor.
company by obtaining the consent of the recipient. as a material violation of his/her duties or internal rules/
Composition of members and the chairperson Based on the performance-linked share-based regulations, the company may request that the individual
compensation plan, if any individual to be issued shares pay restitution.
Total committee Full-time Internal Members of the Outside Members of the
Chairperson
members members Board of Directors Board of Directors
Total amount of remuneration by category of directors and by type of remuneration,
Composition 5 2 2 3 Internal Member of the Board of Directors and the number of eligible directors
Total Total amount by type of remuneration (million yen)
Cooperation between the Audit and Supervisory Cooperation between the Audit and Supervisory amount of Performance-
Number
Category Fixed Variable Retirement of eligible
Committee and accounting auditors Committee and the internal audit department remuneration
remuneration remuneration
linked
benefits persons
(million yen) remuneration
In addition to quarterly meetings, the Audit and Supervisory The Corporate Administration & Internal Audit Department, Nidec’s
Members of the Board of Directors (excluding those who
Committee and the accounting auditors meet about two or internal audit department, regularly hold meetings with the Audit and
are members of the Audit and Supervisory Committee 179 158 6 15 － 5
three times a year whenever necessary. In these meetings, Supervisory Committee to report on the results of the Nidec Group’s and outside members of the Board of Directors)
they exchange information and opinions on audit results, internal audits. In addition, the Audit and Supervisory Committee Audit and Supervisory Committee members
34 34 －－－ 2
audit systems, audit plans, audit implementation status and exchanges opinions and shares information with the Corporate (excluding outside members of the Board of Directors)
the like. Administration & Internal Audit Department as necessary, and Outside directors 41 41 －－－ 9
Materiality
requests the Corporate Administration & Internal Audit Department *1 The above performance-linked remuneration includes the amount paid to five members of the Board of Directors who resigned during the 48th period.
to conduct on-site audits. *2 The introduction of the performance-linked share-based remuneration system was resolved at the 45th Annual General Meeting of Shareholders held on June 20, 2018. The amounts of
expenses recorded for the fiscal year under review according to the Japanese standard are provided above. Outside members of the Board of Directors are not covered by the system.
3 Nomination Committee
The Nomination Committee is headed by Takako Sakai, an outside member of the Board of Directors, and consists of two internal members and Total amount of consolidated remuneration, etc. of each director
three outside members of the Board of Directors. The Committee deliberates on the policy and criteria for the appointment of directors and Total amount by type of remuneration (million yen)
executive officers, etc., as well as the succession plan and the approach to the succession plan, and the proposed candidates for executive vice Total amount of
Company Performance-
Name remuneration Director category Fixed Variable
presidents and president. (million yen)
category linked share-based
remuneration remuneration
remuneration
4 Remuneration Committee Shigenobu Nagamori 106
Representative Company subject
78 6 22
The Remuneration Committee consists of two internal members and three outside members of the Board of Directors, headed by Hiroshi Kobe, Director to submission
Representative Director and President (Chief Operating Officer) as the chairperson. The Committee members discuss basic policies and systems * Only directors whose total amount of remuneration is 100 million yen or more are presented.
for remunerations of directors in response to consultation from the Board of Directors, and reports the results back to the Board of Directors.
Policies on remuneration for Members of the Board of Directors 5 Various committees
1. Basic policy 2. Composition of the remuneration Name Description
The remuneration for Nidec’s directors is determined based on the Outside Members of the Board of Directors (excluding those who
Information Security The Information Security Committee is placed under the Board of Directors to formulate basic policies concerning information
following policy, to enhance the company’s global competitiveness are members of the Audit and Supervisory Committee) Committee security, as well as to monitor the status of implementation of various information security measures and provide instructions.
and secure the sustainable growth of its businesses. Fixed remuneration
Compliance Committee The Compliance Committee is placed under the Board of Directors to discuss and decide basic compliance policies and
Increase motivation toward improving corporate value; Members of the Board of Directors (excluding those who are measures, as well as to monitor the status of implementation of various compliance measures and provide instructions for
Contribute to securing talented managerial human resources; and Outside Members of the Board of Directors and members of the improvement. The Compliance Committee meets once every three months.
Ensure that the level of the remuneration is appropriate for the Audit and Supervisory Committee) Risk Management The Risk Management Committee is placed under the Board of Directors and is headed by the person appointed by the Board of
scale and area of Nidec’s businesses. Fixed remuneration : Variable remuneration (bonuses) : Committee Directors as the chairperson, to decide risk management policies and measures, and submit reports and proposals to the Board
of Directors. It also monitors the company-wide risk management status and constantly reviews the adequacy of allocation
Performance-linked share-based remuneration = 3:1.5:1 of resources necessary for risk management. Based on the annual policies established by the Risk Management Committee,
department general managers and Group companies formulate and carry out their respective annual risk management plans.
Remuneration type Description Payment method CSR Committee The CSR Committee is placed under the Board of Directors and is headed by Akinobu Samura, Senior Vice President (chief
Fixed remuneration Determined based on job rank Monthly in cash financial officer) in charge of CSR, who has been appointed by the Board of Directors as the chairperson. The chairperson and
the committee members appointed at each site discuss and make decisions on CSR activity policies and annual plans and
Variable remuneration Degree of achievement of the target consolidated net sales and consolidated operating Monthly in cash other important matters. Matters decided at the CSR Committee meetings are reported, or discussed if necessary, at the Board
(bonuses) profit of the previous fiscal year of Directors’ meeting, and are put into action by the Investor Relations & CSR Promotion Department, which serves as the
Taking into consideration the performance of the directors dedicated secretariat, in cooperation with business sites inside and outside of Japan.
Variable within a range from zero to twice the median of variable remuneration
Performance-linked Standard amount for each job rank x Degree of achievement of the target consolidated After three fiscal years
net sales and consolidated operating profit
share-based
remuneration Points are provided within a range from 0 to 200%
(shares and money)
6 Executive Management Meeting
After three fiscal years, the company’s shares equivalent to the accumulated points and The Executive Management Meeting convenes once a month to assess the present state of business and determine the next
the amount of money equivalent to the shares converted into cash are provided and paid course of action, based on the monthly performance data and outcome of discussions at respective meetings where important
3. Procedure to decide the remuneration amounts group-wide concerns are shared among administrative departments, subsidiaries and business units.
The amounts of fixed and variable remunerations for which is a voluntary advisory body, in accordance with
individual directors (excluding members of the Board of the criteria specified by this policy. Similarly, the details of 7 Management Committee
Directors who are members of the Audit and Supervisory the performance-linked share-based remuneration are The Management Committee, the consultative body to the Representative Director and Chairman, is held and chaired
Committee) are determined by the Board of Directors based determined by the Board of Directors based on reports by the President and Chief Executive Officer twice a month in principle to discuss overall operational directions, plans
on reports submitted by the Remuneration Committee, submitted by the Remuneration Committee. and other important considerations in the execution of business.

Governance
Reasons for appointment and major activities of Outside Members of the Board of Directors Support systems for Outside Members of the Board of Directors
The General Affairs Department, which acts as the secretariat by three days prior to the day of the meeting, while documents
Status of attendance
(number of meetings attended) for the Board of Directors, supports the Outside Members related to the proposals to be deliberated in the meeting of the
Name Reasons for appointment
Board of
Audit &
Nominating Remuneration
Activities of the Board of Directors. The General Affairs Department Audit and Supervisory Committee are sent to the members, at
Supervisory
Directors Committee Committee
Committee provides the outside directors with the company’s information the latest one day before the meeting. After a meeting of the
Shinichi Sato Mr. Sato has held prominent posts at the Ministry of Finance of Japan and other organizations. 17/21 ― ― 0/0 Mr. Sato actively provides opinions at the Board of Directors’ in a timely manner, and corresponds to their inquiries through Audit and Supervisory Committee, meeting minutes are sent to
He will provide Nidec with advice on its overall business operations based on his high level of meetings and supervises the management team from an
expertise, which will further enhance the company’s corporate governance function. independent and objective standpoint by leveraging his day-to-day communication. With regard to the meetings of the all Audit and Supervisory Committee Members. Furthermore,
Since he meets all the requirements for independent directors from the past to the present in superior insight in finance and accounting as well as abundant
accordance with the regulations of the Tokyo Stock Exchange, Nidec judged that there were no experience and high-level insight in a wide range of fields,
Board of Directors, the General Affairs Department provides for Outside Members of the Board of Directors who are Audit
potential conflicts of interest between him and ordinary shareholders, and therefore designated him including economics, fiscal affairs and monetary policy. all members of the Board of Directors with materials related to and Supervisory Committee Members, various information
as an independent director.
the proposals for the meetings and accounting information, at is reported and provided as necessary by full-time Audit and
Yayoi Ms. Komatsu has held prominent posts at the Ministry of Education, Culture, Sports, Science and 20/21 ― 3/3 ― Ms. Komatsu actively provides opinions at the Board of Directors’
Komatsu Technology of Japan and other organizations. She will provide Nidec with advice on its overall meetings by drawing on her abundant experience and superior the latest one day before the day of the meeting. In addition, Supervisory Committee Members and Nidec’s executive officers.
business operations based on her high level of expertise, which will further enhance the company’s insight in a wide range of fields, including technical research assistance is provided by the Corporate Administration & Outside members of the Board of Directors who are not
corporate governance function. and development as well as human resource development.
Since she meets all the requirements for independent directors from the past to the present in She serves as a member of the Nomination Committee, which Internal Audit Department, Nidec’s internal audit department, members of the Audit and Supervisory Committee have informal
accordance with the regulations of the Tokyo Stock Exchange, Nidec judged that there were no was set up as an advisory body to the Board of Directors of the
potential conflicts of interest between her and ordinary shareholders, and therefore designated her Company, and plays an important role in determining selection
to Outside Members of the Board of Directors who are Audit meetings with the Audit and Supervisory Committee members,
as an independent director. policy and criteria and proposals of candidates for directors and and Supervisory Committee Members. When a meeting of the where various information is provided by Nidec’s executive
executive officers, etc. She thus supervises the management
team from an independent and objective standpoint. Audit and Supervisory Committee is held, meeting notices are officers. They also conduct on-site inspections of the business
Materiality
Takako Sakai Ms. Sakai is currently a professor at the Graduate School of Law, Osaka Metropolitan University. 24/26 4/4 3/3 1/1 Ms. Sakai actively provides opinions at the Board of Directors’ sent out to all the Audit and Supervisory Committee Members sites in Japan, in person or online.
She will provide Nidec with advice on its overall business operations based on her high level of meetings, based on her sophisticated academic and professional
expertise as a university professor, which will further enhance the company’s corporate governance knowledge in the tax and accounting fields as a university
function. Since she meets all the requirements for independent directors from the past to the present professor. As chair of the Nomination Committee, which was
in accordance with the regulations of the Tokyo Stock Exchange, Nidec judged that there were no
potential conflicts of interest between her and ordinary shareholders, and therefore designated her
set up as an advisory body to the Board of the Directors of the
Company and as a member of the Remuneration Committee,
Internal control
as an independent director. she plays an important role in determining selection policy and
criteria and proposals of candidates for directors and executive
officers, etc., and ensuring transparency of the process to decide Basic stance Initiatives in FY2022
remuneration for directors and determining the adequacy of
their remuneration. She thus supervises the management team The Nidec Group commits itself to enhancing its management In order to establish a highly effective global internal audit
from an independent and objective standpoint.
soundness and transparency by establishing a compliance system based on the assumption of sales of 4 trillion yen in
Aya Yamada Ms. Yamada is currently a professor at the Graduate School of Law, Kyoto University. Her advice, 24/26 14/14 3/3 0/0 Ms. Yamada actively provides opinions at the meetings of the system generally required of a listed company in Japan, and FY2025, it is essential to further sophisticate and improve the
based on her high-level expertise as a university professor from an independent position, will help Board of Directors and the Audit and Supervisory Committee,
the Board of Directors strengthen its decision-making and audit and supervisory functions. based on her high-level academic expertise in the field of law clarifying its risk management responsibilities. Specifically, efficiency of internal audit operations. In FY2022, we worked
To promote education and research, Nidec donates money to the endowed course “Advancing as a university professor from an independent and objective
Electrical Equipment to Realize a Friendly Global Environment” at Kyoto University Graduate School standpoint, fulfilling the supervisory function of management.
through the auditing activities of the Corporate Administration to prevent errors in financial reporting, visualize risk areas,
of Engineering. The amount of the donation was 45 million yen in fiscal 2018 (compared to the total As a member of the Audit and Supervisory Committee, she & Internal Audit Department, the Group aims to maintain and and deepen audit procedures by strengthening the self-audit
amount of donation to the University during the same fiscal year, 5,163 million yen), 39 million yen in has also contributed to audits by the Audit and Supervisory
fiscal 2019 (compared to 5,352 million yen), 39 million yen in fiscal 2020 (compared to 5,766 million Committee on the execution of duties by members of the improve the effectiveness of its internal control over financial system at the field level (all Nidec Group sites) and conducting
yen), 39 million yen in fiscal 2021 (compared to 5,416 million yen), and 49 million yen in fiscal 2022.
The donation in FY2022 includes a donation for the 125th anniversary of the University.
Board of Directors. She serves as a member of the Nomination
Committee, which was set up as an advisory body to the Board
reporting required by Article 24-4-4, Paragraph 1 of the monitoring at all consolidated sites using DX.
We consider that in any year the amount of our donations is insignificant compared to the total of Directors of the Company, and plays an important role in Financial Instruments and Exchange Act. In addition, the Legal
amount donated to the University. In addition, there is an agreement for joint research between determining selection policy and criteria and proposals of
Nidec and the University’s Graduate School of Engineering, and Nidec paid 18 million yen in research candidates for directors and executive officers, etc. She thus & Compliance Department, the Risk Management Committee, Toward the future
expenses to the University in the previous fiscal year (FY2022). Given that Ms. Watanabe’s department supervises the management team from an independent and the Information Security Committee and the CSR Committee We will continue to enhance the sophistication and efficiency
is not the one to which Nidec made its donations or paid expenses and that Ms. Watanabe is not in a objective standpoint.
position to represent the University, Nidec believes there is no conflict of interest between Nidec and are organized under the Board of Directors, under which the of auditing operations through the use of DX while expanding
Ms. Watanabe, and therefore there is no problem regarding her independence.
Legal & Compliance Office, the Risk Management Office, the the target areas. We will also strive to upgrade our human
Junko Ms. Junko Watanabe currently works as a professor of the Graduate School of Economics, 11/13 5/5 ― ― Ms. Watanabe actively provides opinions at the meetings of the
Watanabe Kyoto University. Her advice, based on high-level expertise as a university professor from an Board of Directors and the Audit and Supervisory Committee,
Information System Department, and the IR & CSR Promotion resources by, for example, training auditors with specialized
independent position, will help the Board of Directors strengthen its decision-making and audit and based on her high-level academic expertise in the field of Department are placed as the secretariat respectively, working qualifications, language skills, and a deep understanding of
supervisory functions. economics as a university professor from an independent
To promote education and research, Nidec donates money to an endowed course “Advancing and objective standpoint, fulfilling the supervisory function to create a corporate culture and enhance management the business environment. Currently, an audit system is in
Electrical Equipment to Realize a Friendly Global Environment,” at Kyoto University Graduate School of management. As a member of the Audit and Supervisory systems for internal control. place in five locations, Japan (Kyoto), Europe (Amsterdam),
of Engineering. The amount of the donation, 49 million yen in fiscal 2017 (compared to the total Committee, she has also contributed to audits by the Audit and
amount of donation to the university during the same fiscal year of 4,848 million yen), 45 million yen Supervisory Committee on the execution of duties by members Americas (St. Louis), China (Shanghai), and Asia (Singapore), to
in fiscal 2018 (compared to 5,163 million yen), 39 million yen in fiscal 2019 (compared to 5,352 million of the Board of Directors.
yen), 39 million yen in fiscal 2020 (compared to 5,766 million yen), and 39 million yen in fiscal 2021, Materiality cover the entire Nidec Group. We will also work to strengthen
is insignificant compared to the total amount of donation to the university. In addition, given that Ms. Expand audit resources qualitatively and the audit system in the European region, where the number
Watanabe’s department is not the one to whom Nidec made its donations, and that Ms. Watanabe
is not in a position to represent the university, Nidec believes there is no conflict of interest between quantitatively based on the assumption of a sales of companies is increasing significantly.
Nidec and Ms. Watanabe, and therefore there is no problem regarding her independence. scale of 4 trillion yen.
Hiroe Ms. Toyoshima currently practices as an attorney. Her advice, based on her high-level expertise as ― ― ― ― ―
Toyoshima an attorney, on Nidec’s overall business operations will further enhance the Company’s corporate
governance function. Since she meets all the requirements for independent directors from the past
to the present in accordance with the regulations of the Tokyo Stock Exchange, Nidec judged that
there were no potential conflicts of interest between her and ordinary shareholders and therefore Corporate governance of Group companies
designated her as an independent director.
*1 During the fiscal year under review, the Board of Directors held 26 meetings, the Audit and Supervisory Committee held 14 meetings, the Audit & Supervisory Board before transition
to the Audit and Supervisory Committee held 3 meetings, and the Remuneration Committee met once. The Nidec Group companies operate under Nidec’s mission sufficient discussions before making decisions on business
*2 The difference in the number of times held is due to differences in the timing of assuming office.
*3 Ms. Takako Sakai was elected as a member of the Board of Directors at the 49th Annual General Meeting of Shareholders held on June 17, 2022. She had previously attended meetings
statement and policies, and therefore they are incorporated execution that correspond to the circumstances of each
of the Board of Directors, the Audit and Supervisory Committee, and the Remuneration Committee as a member of the Board of Directors (Audit and Supervisory Committee member); in Nidec’s internal control system. The Group companies, company, based on specialists’ opinions as necessary, thereby
therefore, the number of meetings attended by Ms. Sakai includes those meetings attended as a member of the Board of Directors (Audit and Supervisory Committee member).
to which Nidec sends some directors and employees, have endeavoring to assure their independence.

Governance
Cross-shareholding Organization Compliance seminars

Nidec’s Legal & Compliance Department, working in As part of the compliance promotion activities, we hold
partnership with Regional Compliance Officers of the compliance seminars for our group’s executives and
Policy for cross-shareholding Criteria for exercising voting rights for individual regions where the Nidec Group’s business bases employees to maintain and improve their level of compliance
Nidec holds shares in the companies that Nidec has cross-shareholding operate (the Americas, China, Europe, and Southeast Asia) awareness. For example, seminars and discussions are held
relationships with in terms of trading and cooperation With regard to the exercise of voting rights in relation to and Compliance Managers and Promoters of individual on such topics as cartels, bribery and human rights issues,
in its business and other areas, when it judges that such cross-shareholdings, Nidec makes comprehensive decisions business departments and group companies, builds and with the Regional Compliance Officers serving as lecturers
shareholding contributes to the company’s corporate to vote for or against individual proposals to serve the operates a global compliance system. Compliance Managers using the Nidec Compliance Handbook as teaching material.
value expansion through stabilization of its business from investees’ sustainable growth from the perspective of whether implement and operate compliance-related measures to The compliance seminar for board members and executives is
a medium-tolong-term perspective by maintaining and appropriate governance and compliance structures are in raise the compliance awareness of the organizations under also held once a year, with the invitation of an outside lecturer.
strengthening its relationship with those companies. Nidec place at investee companies. their supervision, and bear responsibility for preventing
assesses its cross-held shares individually at the Board compliance violations. Compliance Promoters promote the Regarding violation of the regulation of
of Directors meeting every year, on not only qualitative (Basic views on exercising voting rights) specific compliance measures of such organizations, while distributable amount
aspects such as the purpose of the shareholding, but also With regard to the individual proposals submitted to the serving as a liaison with the Legal & Compliance Department At the Board of Directors’ meeting held on October 24, 2022,
on quantitative aspects such as the benefits that can accrue shareholders’ meetings of the companies Nidec invests in, and Regional Compliance Officers, who provide support Nidec resolved to pay a dividend of 35 yen per share and
through the shareholding from the perspective of economic Nidec decides to vote for or against after confirming the for individual regions’ Compliance Managers and accept implemented it. However, in the process of examining the
Materiality
rationality. According to the results of the assessment, Nidec following points: whether the proposals suit the purposes whistleblowing cases. distributable amount for the fiscal year ended March 31,
intends to reduce the number of shares it holds if the cross- of the shareholding which are to maintain and strengthen 2023, it was discovered that the interim dividend in question
held shares are not expected to bring significant benefits. the trade and cooperation relationships through medium-to Internal reporting system exceeded the distributable amount calculated in accordance
long-term investment; and particularly, whether there are As part of the comprehensive, group-wide compliance system, with the Japanese Companies Act and the Regulation on
any circumstances that might lead to undermining of the we have established an internal reporting section (the Nidec Corporate Accounting.
shareholders’ value due to the restructuring of organizations, Global Compliance Hotline) available for all board members, In addition, a subsequent investigation revealed that the
including asset transfer and mergers. Nidec opposes all executives and employees (including regular and part-time Company’s share repurchase conducted by the trust bank
proposals that are considered to violate the law or constitute employees, those dispatched from outside agencies, limited- under the trust agreement from September 1, 2022 through
antisocial behavior, in all circumstances. term employees, and those who have retired from the March 31, 2023 also exceeded the distributable amount.
Nidec Group within a year), and a third-party contact point In response to this situation, the Company conducted an
outside the company. Fiscal 2021 saw a total of 124 cases investigation on this matter by the External Investigation
Follow thorough compliance with laws and regulations of whistleblowing and consultations made on suspected Committee, consisting of external attorneys. On June 16,
misconduct and harassment, among others, an increase of 2023, the Company received the investigation results from
Basic stance Efforts made in FY2022 8 cases from the previous fiscal year. The status of internal the Committee. For details, please refer to the investigation
The Nidec Group sees non-compliance as a material risk The Nidec Group currently has over 300 group companies in reports is reported to the Board of Directors and the Audit report posted on our website. Nidec will take measures to
that may lead to a loss of social trust and economic damage. 40 countries around the world. We recognize that building and Supervisory Committee on a regular basis. prevent recurrence based on the proposals of the External
Therefore, the Nidec Group comprehensively follows applicable a governance system for these globally distributed group Investigation Committee and work to further improve the
laws, regulations, internal rules and standards, social ethical companies is a crucial task in ensuring compliance. FY2019 FY2020 FY2021 FY2022
Company’s corporate governance.
standards, etc. to raise executives’ and regular employees’ In particular, based on our past experience, we see difficulty in Number of cases 142 116 125 119 the investigation results, click the URL below.
For
ethical awareness, develop conscience as a company, and win identifying the risks of small companies located far from major https://www.nidec.com/en/ir/news/2023/news0616-01/
society’s trust as we continue our compliance activities. bases. Therefore, we launched a hazard map project in FY2021
At present, we are working to establish and enhance a global with the aim of preventing compliance risks from arising at
The Nidec Group’s global compliance system
compliance system that will enable us to address individual these remote small sites. In this project, we constantly identify
issues and cases arising in different regions more promptly and high-risk group companies based on their distance from Shareholders’ Meeting
appropriately. We will also strengthen compliance education for major sites and the information on the risk of corruption in Working on specific compliance measures
Audit and Supervisory Committee Board of Directors for the entire Group
employees to further raise their compliance awareness, thereby countries where they are operating and implemented specific
reducing compliance-related risks. prevention measures in consultation with the management of
Compliance Committee
such companies and other risk reduction activities. [Members] Legal & Compliance Department
Compliance Promoters are placed in
Materiality individual organizations under the Chair: Chief Compliance Officer
Expand the legal affairs and compliance system to all Group Toward the future supervision of the Compliance Managers.
Members: Management Committee members
Regional Compliance Officers
Secretariat: Legal & Compliance Department
companies starting from Nidec Corporation and regional We will continue the hazard map project for a certain period
management companies (China, the U.S. and Europe). of time to identify high-risk companies in order from those
Identify serious non-compliance risks and take with the highest risk to reduce the governance risk at remote Compliance Managers and Promoters
Addressing compliance issues unique to
priority measures. small sites. We will implement risk reduction activities, Business Units
Administrative Group companies individual countries/regions
departments (including overseas subsidiaries)
Provide compliance education to all employees once a year. including for companies that have newly joined the Nidec Head of each Director in charge of each
Managers President
business unit department
Group through acquisitions.
Promoters GM of each organization/department Head of administrative department

Governance
Build a risk management system Promote information security measures
Basic stance continuously conducted for risk reduction. Basic stance mechanisms to prevent unauthorized access from
It is necessary and important to identify and manage risks for * Major business sites: Business sites that are selected to cover 80% of the sales of the
The Nidec Group possesses information that is necessary outside the Company and to detect and immediately
the purpose of preventing the expansion of losses due to lack Business Unit or Group company to which they belong for conducting its business activities, including not only block malicious programs such as computer viruses,
of readiness for possible risks, loss of business opportunities, the information produced or gathered within the Group thereby enhancing information security for the entire
decline of ratings, and other negative impacts. Nidec has Risk management system but also information provided by its business partners. Nidec Group in terms of both structure and technology.
identified risks facing the Nidec Group, clarified the relevant The Nidec Group uses a medium-term business plan, which We understand that it is very important to protect and As a result, no serious incidents due to cyber-attacks or
departments, and determined the risks that should be reduced is designed to realize the Group’s long-term vision, which is use these information assets properly and appropriately. other causes occurred in FY2022.
in order of priority. The Company manages the progress defined as a set of specific numerical and qualitative targets, Information that should be protected includes
of reducing the impact of such risks on our business while as a basis of the Group’s business plan for each fiscal year. management information, technical information, Toward the future
working to enhance its initiatives to identify signs of risks. Our medium-term plan is formulated based on discussions on financial information and personal information, which trengthening measures against internal
S
its feasibility as a medium-term goal, consistency with our long- are extremely important. Deterioration or leakage of information leaks
Materiality term vision, and issues and risks for us to overcome to achieve any such information may lead to loss of trust in us from We have actively developed and implemented measures
All risks disclosed on the securities reports are the vision. Each medium-term plan is revised (rolled) during our customers or the market, as well as a decline in our against “external threats” such as cyber-attacks and
Materiality
evaluated by the department in charge, and the risks its execution phase, based on changes in the market and the competitiveness. It may also result in a legal penalty. intrusion of malicious programs into the Company’s
to be addressed in priority are identified.
status of execution. We will work to prevent serious security incidents computer network, which are becoming more and
Reduce the impact of the risks to be addressed in We have also formulated the Risk Management Regulations to by identifying and assessing rapidly changing and more threatening every year. In the future, we will also
priority on our business. Manage the progress of
establish a risk management system for the entire Nidec Group increasing information security risks and taking enhance measures against “internal threats” such as
reducing such impact and any residual risks.
and have in place a Risk Management Committee under the effective measures according to the risks. information leaks.
Board of Directors. Additionally, we promptly report and share There are two types of information leaks:
Initiatives in FY2022 important information in the risk management meeting held Materiality “negligence,” which is the result of carelessness or
In FY2021, we reviewed our risk management system and every morning so that the information can be utilized in our Reduce the number of serious information security disregard for rules, and “fraud,” which is the misuse
established a system to conduct risk assessment on each level daily operations. Such information is also extensively discussed incidents to zero. of rights and privileges. To prevent information leaks
of the hierarchy shown below and mutually use assessment and shared in the Senior Managers’ Meeting as necessary. due to negligence, we will systematically ensure
results for the measures for other levels. In FY2022, we worked compliance with internal rules while raising employees’
to identify areas for improvement by continuing to conduct risk BCP (Business Continuity Plan) Information security structure awareness of risk management to ensure thorough
assessment, priority risk identification and risk reduction activities Starting from March 2014, the Nidec Group has conducted implementation of basic procedures that can prevent
for the Business Unit level (L2), which were initiated in FY2021. BCP simulation training assuming such risks as an earthquake, Board of Directors negligence. Meanwhile, in order to prevent fraud by
We interconnect the risk management activities of different flooding, drought, outbreak of an infectious disease, and fire insiders, we will make known to employees fraudulent
Information Chief Information
hierarchical levels by checking the risks identified in L2 in the at its sites both inside and outside Japan. The training, with a Security Committee Security Officer acts that deviate from the rules. We will also introduce
corporate level (L3) as well and reflecting company-wide issues total of more than 3,430 employees participating as of the end (CISO) a system to monitor fraudulent acts to strengthen
that should be addressed under the leadership of L3, if any are of March 2023, helped them improve their skills to respond to information management.
Information Security
found, in L3-level risk management activities as necessary. such events. To respond to the COVID-19 pandemic, we set up a
Management Group
COVID-19 Crisis Management Headquarters from January 2020 I mproving information security management
Corporate level
to May 2023. In FY2022, we were hit by the Shanghai lockdown Information Security Manager capabilities centered on the automotive
(Department in charge and the spread of infection following the dissolution of China’s Each business unit, Group company business
of the risk)
L3
zero-COVID policy, but we were able to minimize the impact on In the automotive business, we will continue to
our business by working together as a Group in securing logistics. Information Security Promoter implement measures based on cyber security
Business Unit level
L2 Each business unit, Group company
guidelines for the automotive industry and strengthen
Risk Management Committee our capabilities to respond to cyber incidents.
Business site level

L1 The Risk Management Committee is placed under the Board We will also establish a voluntary improvement process
of Directors and chaired by the executive officer in charge of Initiatives in FY2022 of self-inspection, evaluation, and improvement for
L = Level risk management. The Committee decides risk management In order to strengthen information security measures security risks that change year by year, not only in the
Toward the future policies and measures and submits reports and proposals to for the entire Nidec Group, we established and automotive business but also in other businesses.
In FY2023, we will establish a new system at all levels, the Board of Directors. It also monitors the company-wide risk rigorously operated an information security At the same time, we will improve the information
including L1 (major business site* level). In particular, management status and constantly reviews the adequacy of management system and thoroughly implemented security management capabilities of the entire Group
for serious contingent risks that could lead to business allocation of resources necessary for risk management. Based basic measures across all Group companies, including by effectively using information security assessment
interruptions, the Business Unit level (L2) periodically on the annual policies established by the Risk Management clarifying important information assets and providing services provided by external organizations to
checks the status of the development of the BCP (Business Committee, department general managers in charge of risk information security training for directors and strengthen monitoring of vulnerable areas and
Continuity Plan) at the major business site* level (L1) under its management and Group companies formulate and carry out employees. In response to increasingly sophisticated promptly make improvements.
umbrella and works to ensure that improvement activities are their respective annual risk management plans. cyber-attacks, we promoted the introduction of defense

Governance
Management (as of September 1, 2023)
Board of Directors
Career summary Career summary Career summary Career summary
July 1973 Founded Nidec Corporation, July 1973 Participated in the foundation of Nidec April 2002 Research Associate, Graduate School of April 1990 Research Associate, Faculty of Law, Tohoku
Representative Director, Corporation Law, Kyoto University University
Chairman of the Board and President March 1982 General Manager, Sales Department April 2003 Lecturer, Graduate School of Economics, April 1995 Assistant Professor, Faculty of Law, Okayama
Chief Executive Officer (CEO) November 1984 Member of the Board of Directors Osaka Prefecture University University
October 2014 Representative Director, November 1991 Member of the Board of Directors and Senior March 2007 Completed Doctoral Program at Graduate April 2003 Assistant Professor, Graduate School of Law,
Chairman of the Board and President Vice President School of Kyoto University and received a Kyoto University
Chief Executive Officer (CEO) April 1996 Member of the Board of Directors and First Doctor of Laws (LL. D.) April 2006 Professor, Graduate School of Law, Kyoto
June 2018 Representative Director and Chairman Senior Vice President October 2007 Associate Professor, Graduate School of University (current position)
Chief Executive Officer (CEO) April 2000 Member of the Board of Directors and Economics, Osaka Prefecture University June 2020 Outside Member of the Board of Directors
June 2021 Representative Director and Chairman Executive Vice President April 2018 Professor, Graduate School of Economics, who is an Audit and Supervisory Committee
(current position) April 2005 Chief Operating Officer (COO) Osaka Prefecture University Member, Nidec Corporation (current position)
April 2022 Chief Executive Officer (CEO) June 2006 Representative Director and Executive Vice June 2020 Outside Member of the Board of
(current position) President Directors who is an Audit and Supervisory Significant concurrent positions
June 2015 Representative Director and Vice Chairman Committee Member
Significant concurrent positions Chief Sales Officer (CSO) April 2022 Professor, Graduate School of Law, Osaka Professor, Graduate School of Law, Kyoto University
Chairman of the Board, Nagamori Gakuen Educational June 2020 Vice Chairman Metropolitan University (current position)
Foundation May 2022 Chief Performance Officer (CPO) June 2022 Outside Member of the Board of Directors,
June 2022 Representative Director and Vice Chairman Nidec Corporation (current position)
September 2022 Representative Director and President
(current position) Significant concurrent positions
Chief Operating Officer (COO) Professor, Graduate School of Law, Osaka Metropolitan
(current position) University
Shigenobu Nagamori Hiroshi Kobe Significant concurrent positions Takako Sakai Aya Yamada
Representative Director and Chairman Representative Director and President Director of NIDEC ADVANCED MOTOR CORPORATION Outside Member of the Board of Outside Member of the Board of
Chief Executive Officer (CEO) Chief Operating Officer (COO) Director of NIDEC GLOBAL SERVICE CORPORATION Directors Directors
Nominating Committee Member Nominating Committee Member Nominating Committee Member Audit and Supervisory Committee
Remuneration Committee Member Remuneration Committee Chairperson Remuneration Committee Member Member
(Born on August 28, 1944) Sustainability Committee Member Sustainability Committee Member Nominating Committee Member
Materiality
Number of the Company’s (Born on March 28, 1949) (Born on August 28, 1972) (Born on February 12, 1967)
shares possessed: 49,473,000 Number of the Company’s Number of the Company’s Number of the Company’s
shares possessed: 948,000 shares possessed: 0 shares possessed:—
Career summary Career summary Career summary Career summary

April 1977 The Ministry of Finance of Japan April 1983 The Ministry of International Trade and Industry April 1994 Research Associate, Faculty of Economics, April 1998 Registered as attorney-at-law, the Osaka
July 1983 Director, Ise Tax Office, Nagoya Regional of Japan (currently the Ministry of Economy, Trade Hokkaido University Bar Association Joined Nakamoto &
Taxation Bureau and Industry of Japan (METI)) April 1997 Research Associate, Graduate School of Partners
July 1984 Executive Director’s Assistant, July 2000 Director, Foreign Exchange and Trade Finance Economics & Faculty of Economics, The November 2005 Registered as attorney-at-law in the
International Monetary Fund Division, Trade Bureau University of Tokyo State of New York, USA
June 1996 Director, Central Asia Team, European July 2002 Director-General, International Cooperation April 1998 Assistant Professor, Faculty of Humanities & April 2009 Partner, Nakamoto & Partners
Bank for Reconstruction and Development Department, New Energy and Industrial Social Sciences, Shizuoka University (current position)
(EBRD) Technology Development Organization (currently October 2002 Assistant Professor, Department of October 2015 Outside Member of the Board of
July 2002 Director-General, the Fukuoka Local National Research and Development Agency New Human Communication, Faculty of Directors, Sanesu Co., Ltd.
Finance Branch Bureau, the Ministry of Energy and Industrial Technology Development Electro-Communications, The University of June 2020 Outside Member of the Board of
Finance of Japan Organization) Electro-Communications Directors, Nitta Corporation
July 2004 Deputy Director-General, Minister’s July 2003 Director, Personnel Division, Japan Patent Office April 2004 Assistant Professor, Graduate School of (current position)
Secretariat (in charge of Customs and October 2005 Director, Trade Promotion Division, Trade and Economics & Faculty of Economics, Kyoto Outside Member of the Board of
Tariff Bureau) Economic Cooperation Bureau University Directors (Audit and Supervisory
July 2005 Board Director, EBRD August 2006 Counsellor, Minister’s Secretariat, the Ministry of March 2005 Visiting Scholar, The University of Paris Committee Member), Nitto Fuji Flour
July 2008 Director-General, the Kanto Local Finance Agriculture, Forestry and Fisheries of Japan 7 - Denis Diderot (France) Milling Co., LTD. (current position)
Bureau, the Ministry of Finance of Japan July 2008 Counsellor, Cabinet Secretariat (Assistant Chief July 2011 Received a Ph.D. in Economics from Kyoto Jun 2023 Outside Members of the Board of
August 2009 Executive Director, Organization for Small Cabinet Secretary) University Directors who are Audit and Supervisory
& Medium Enterprises and Regional August 2010 Seconded to Nidec Corporation October 2011 Visiting Scholar, Edwin O. Reischauer Committee Members, Nidec Corporation
Innovation, Japan August 2012 Returned to METI. Director-General, Training Institute of Japanese Studies, Harvard (current position)
June 2012 Fulltime Member of the Audit & Institute of Economy, Trade and Industry University
Supervisory Board, Nidec Corporation December 2012 Left METI April 2012 Professor, Graduate School of Economics Significant concurrent positions
Kazuya Murakami February 2013 Registered as attorney-at-law, the Kyoto
Bar Association Hiroyuki Ochiai March 2013 General Manager, General Affairs Department,
Nidec Corporation Junko Watanabe & Faculty of Economics, Kyoto University
(current position) Hiroe Toyoshima Partner, Nakamoto & Partners
Outside Member of the Board of Directors,
Member of the Board of Directors June 2013 Vice President Member of the Board of Directors June 2018 Fulltime Member of the Audit & Supervisory Outside Member of the Board of August 2012 Visiting Associate Professor, Graduate Outside Member of the Board of Nitta Corporation
June 2017 Fulltime Member of the Audit & Board School of Economics & Faculty of Outside Member of the Board of Directors
Audit and Supervisory Committee Supervisory Board Audit and Supervisory Committee June 2020 Member of the Board of Directors who is an Audit Directors Economics, The University of Tokyo Directors
(Audit and Supervisory Committee Member),
Member June 2020 Member of the Board of Directors who Member and Supervisory Committee Member (current Audit and Supervisory Committee June 2016 Member of the Audit & Supervisory Board Audit and Supervisory Committee Nitto Fuji Flour Milling Co., LTD.
is an Audit and Supervisory Committee position) (External), Nidec Corporation April 2020
(Born on January 18, 1955) Member (current position) Sustainability Committee Member Member Outside Member of the Board of Directors Member
Number of the Company’s (Born on July 3, 1959) Significant concurrent positions Sustainability Committee Member (Audit and Supervisory Committee Member), Sustainability Committee Member
Significant concurrent positions Morozoff Limited (current position)
shares possessed: 3,000 Number of the Company’s Auditor of NIDEC INSTRUMENTS CORPORATION (Born on October 17, 1965) October 2022 Outside Member of the Board of Directors (Born on September 28, 1967)
Auditor of NIDEC ADVANCE TECHNOLOGY CORPORATION Auditor of NIDEC MOBILITY CORPORATION
Auditor of NIDEC DRIVE TECHNOLOGY CORPORATION shares possessed: 1,000 Auditor of NIDEC COMPONENTS CORPORATION Number of the Company’s who is an Audit and Supervisory Committee Number of the Company’s
Auditor of NIDEC TECHNO MOTOR Auditor of NIDEC POWERTRAIN SYSTEMS CORPORATION shares possessed: — Member, Nidec Corporation (current position) shares possessed: —
Auditor of NIDEC MACHINE TOOL CORPORATION Auditor of NIDEC PRECISION CORPORATION
Auditor of NIDEC OKK CORPORATION Auditor of NIDEC ELESYS CORPORATION Significant concurrent positions
Auditor of NIDEC GLOBAL SERVICE CORPORATION Auditor of NIDEC ADVANCED MOTOR CORPORATION Professor, Graduate School of Economics & Faculty of
Auditor of NIDEC MACHINERY CORPORATION Economics, Kyoto University
Outside Member of the Board of Directors (Audit and
Supervisory Committee Member), Morozoff Limited
Career summary Career summary
April 1980 The Ministry of Finance of Japan (MOF) April 1981 The Ministry of Education, Science, Sports
July 1985 Director, Karatsu Tax Office, Fukuoka and Culture of Japan (currently the Ministry
Regional Taxation Bureau of Education, Culture, Sports, Science and
July 1997 Deputy Director-General, the Embassy of Technology of Japan (MEXT))
Japan in the UK, the Ministry of Foreign April 2001 Director, Early Childhood Education Division,
Vice Presidents
Affairs Elementary and Secondary Education Bureau,
July 2000 Director, the Administrative Management the Ministry of Education, Culture, Sports,
Bureau, the Management and Science and Technology
Coordination Agency (currently the April 2003 Director, Medical Education Division, Higher
Ministry of Internal Affairs and Education Bureau, the Ministry of Education,
Communications)
July 2002 Budget Examiner for Education, Culture,
Culture, Sports, Science and Technology
July 2004 Counsellor to the Cabinet Office’s Director- Toshihiko Koseki Mitsuya Kishida Yoshihisa Kitao Tatsuya Nishimoto Toshiyuki Otsuka
Sports, Science and Technology, the General for Science and Technology Policy
Budget Bureau, the Ministry of Finance (currently the Secretariat of Science, Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President
July 2003 Director, the Research Division, the Tax Technology and Innovation Policy)
Bureau, the Ministry of Finance July 2005 Director, Traditional Culture Division,
July 2004 Director, Indirect Tax Policy Division, the the Cultural Properties Department,
Tax Bureau, the Ministry of Finance the Agency for Cultural Affairs
July 2005 Director, Income Tax and Property Tax
Policy Division, the Tax Bureau, the
April 2007 Director, the Director-General’s Secretariat, the
Agency for Cultural Affairs Michael Briggs Valter Taranzano Noboru Kaneko Kazuya Hayafune Hiroshi Onishi Toru Takahashi
Ministry of Finance July 2009 Deputy Director-General, the Science and
July 2006 Director, Secretarial Division, the Technology Policy Bureau, the Ministry of Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Shinichi Sato Minister’s Secretariat, the Ministry of
Finance Yayoi Komatsu Education, Culture, Sports, Science and
Technology
Outside Member of the Board of July 2009 Deputy Director-General, the Tax Bureau, Outside Member of the Board of July 2010 Director-General, the Cultural Affairs Ryuji Omura Akinobu Samura Kazutsugu Igarashi Takamitsu Araki Fumiaki Ushio
the Ministry of Finance Department, the Agency for Cultural Affairs
Directors January 2010 Councilor, Cabinet Secretariat (Assistant Directors January 2012 Trustee and President, the Independent
Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Remuneration Committee Member Chief Cabinet Secretary) Nominating Committee Member Administrative Institution National Museum
August 2011 Deputy Vice Minister for Policy Planning of Art
(Born on November 4, 1956) and Co-ordination, the Minister’s (Born on March 23, 1959) August 2015 Director-General, Research Promotion Bureau,
Number of the Company’s Secretariat, the Ministry of Finance Number of the Company’s the Ministry of Education, Culture, Sports,
June 2013 Director-General, the Minister’s Science and Technology
shares possessed: — Secretariat, the Ministry of Finance shares possessed: 0 December 2016 Left MEXT Tomoko Hirata Maki Okajima Eiji Miyamoto Junichi Nagai Takashi Kishimae Hiroyuki Fujita
July 2014 Director-General, the Tax Bureau, the May 2022 Executive Director, The National Museum of
Ministry of Finance Modern Art, Tokyo (current position) Vice President Vice President Vice President Vice President Vice President Vice President
June 2016 Vice-Minister of Finance June 2022 Outside Member of the Board of Directors,
July 2017 Left MOF Nidec Corporation (current position)
November 2017 Executive Consultant, Suntory Holdings
Limited (current position) Significant concurrent positions
Shin Kishimoto Tomonori Seta Kazuo Nakagawa Shuichiro Sori
June 2022 Outside Member of the Board of Executive Director, The National Museum of Modern Art, Tokyo
Directors, Nidec Corporation (current Vice President Vice President Vice President Vice President
position)
Significant concurrent positions * The number of shares owned are rounded off to the nearest thousand.
Executive Consultant, Suntory Holdings Limited

Financial/Non-financial Data
Financial Data
(FY)
U.S. GAAP IFRS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(Millions of yen)
Net sales 875,109 1,028,385 1,178,290 1,199,311 1,459,039 1,475,436 1,534,800 1,618,064 1,918,174 2,242,824
Operating profit 84,864 110,939 117,662 139,366 165,903 129,222 108,558 159,970 170,374 100,081
Profit before income taxes 84,460 107,092 117,164 141,313 163,260 129,830 105,160 152,937 170,032 120,593
Profit attributable to owners of

the parent 56,272 76,015 89,945 111,007 130,834 109,960 58,459 121,945 135,759 45,003
CAPEX 40,036 58,042 81,898 68,718 90,841 120,555 132,926 88,911 98,580 137,814
Depreciation 44,413 51,445 64,950 59,737 68,697 71,016 87,808 96,802 104,932 119,469
R&D 37,808 45,179 51,978 52,807 55,438 62,912 78,630 67,280 78,015 81,337
Total assets 1,166,938 1,357,340 1,376,636 1,678,997 1,773,199 1,884,008 2,122,493 2,256,024 2,678,483 2,872,789
Shareholders’ equity 517,971 744,972 763,023 846,572 932,501 996,795 947,290 1,096,020 1,292,241 1,354,505
Operating cash flow 87,219 91,875 147,659 129,853 175,568 170,233 168,049 219,156 94,994 143,485
Investment cash flow –63,178 –81,230 –95,377 –211,476 –113,915 –160,844 –311,513 –100,568 –112,597 –164,943
Free cash flow 24,041 10,645 52,282 –81,623 61,653 9,389 –143,464 118,588 –17,603 –21,458
Financial cash flow 13,471 –19,508 7,775 95,848 –116,858 –32,683 128,546 –136,191 –64,393 –19,238
Per-share information*1 (Yen)
Profit (EPS) 103.41 135.81 151.52 187.14 220.96 186.49 99.37 208.19 232.40 78.19
Dividends 25.00 35.00 40.00 42.50 47.50 52.50 57.50 60.00 65.00 70.00
Major financial indicators (%)
Operating profit ratio 9.7 10.8 10.0 11.6 11.4 8.8 7.1 9.9 8.9 4.5
Shareholders’ equity ratio 44.4 54.9 55.4 50.4 52.6 52.9 44.6 48.6 48.2 47.1
*1 Adjusted based on the 2-for-1 split implemented as of April 1, 2014 and April 1, 2020. EPS and Dividends are expressed assuming that the stock split occurred at the beginning of FY2013.
*2 S
tarting from the first quarter of FY2016, the International Financial Reporting Standards (IFRS) have been applied to the consolidated financial statements.
Therefore, the figures presented are based on the International Financial Reporting Standards (IFRS) for FY2015 and later, and on the U.S. accounting standards for FY2014 and before.

ESG Data List

Group Companies
https://www.nidec.com/en/sustainability/principle/esg-list/
Non-financial Data Company name Business activities

NIDEC INSTRUMENTS CORPORATION R&D, manufacturing and sales of Stepping motors, Motor drive units,
https://www.nidec.com/en/nidec-instruments/ Industrial robots, Card readers, Precision plastic molds, Electric contacts and
E/ Environment*1 Music box products
(FY)
2018 2019 2020 2021 2022 NIDEC ADVANCE TECHNOLOGY CORPORATION R&D, manufacturing and sales of semiconductor package/PCB inspection
Total GHG emissions (kt-CO2) 3,365 2,934 2,858 4,750 150,837 https://www.nidec.com/en/nidec-advancetechnology/corporate/ systems, optical inspection systems, FPD inspection systems, automatic
Scope1 (kt-CO2) 73 62 60 57 71 measurement/control systems and associated fixtures.
Scope2 (Location-based, kt-CO2) — — — — 805 NIDEC DRIVE TECHNOLOGY CORPORATION R&D, manufacturing and sales of power transmission drives, press machines,
Scope2 (Market-based*2, kt-CO2) 593 577 511 457 720 control device, measuring, ceramic art equipment, and others.
https://www.nidec.com/en/nidec-drivetechnology/
Scope3 (kt-CO2) 2,700 2,295 2,287 4,236 150,046
Total energy consumption*3 (MWh) 1,433,522 1,403,437 1,448,027 1,396,802 1,767,741 NIDEC TECHNOMOTOR CORPORATION Development, manufacture and sales of small and medium-sized motors for
Non-renewable energy Fuel consumption (MWh) 213,522 161,437 268,027 265,802 328,480 https://www.nidec.com/en/nidec-technomotor/ HVAC, home appliances and industrial machinery, electric tools, motor-based
Non-renewable energy Steam, Heat and Cooling consumption (MWh) — — — — 10,261 equipment and others
Total electricity consumption (MWh) 1,220,000 1,242,000 1,180,000 1,131,000 1,429,000 NIDEC MOBILITY CORPORATION Marketing, development, manufacture and sales of automotive electric
Renewable energy electricity consumption (MWh) 34,488 32,021 64,000 120,000 118,000 https://www.nidec.com/en/nidec-mobility/ components
Renewable energy introduction ratio (%) 2.8 2.6 5.4 10.6 8.2
Total discharge of waste (including solids and liquids)*4 (t) — — — 124,997 135,580 NIDEC COMPONENTS CORPORATION Development, manufacture and sales of electronic circuit parts, pressure
Total discharge of waste (solid only)*4 (t) 97,618 100,546 101,380 111,993 — https://www.nidec-components.com/e/ sensors, actuators, potentiometers, and encoders
Recycled amount*5 (t) 89,024 90,910 91,842 101,812 83,814
NIDEC POWERTRAIN SYSTEMS CORPORATION Development, manufacture and sales of automobile parts and measuring
Final disposal amount*5 (t) 8,052 9,636 8,947 10,180 32,463
https://www.nidec.com/en/nidec-powertrainsystems/ instruments
Recycled ratio*5 (%) 91.2 90.4 90.6 90.9 61.8
Final disposal ratio*5 (t) 8,384 9,691 11,011 11,473 4,375 NIDEC PRECISION CORPORATION Development, manufacture and sales of optical devices, electronic devices,
Total Water Withdrawal*6 (Thousand m3) 8,225 8,064 7,218 7,055 7,548 https://www.nidec.com/en/nidec-precision/ precision parts and dies, image devices, FA and industrial devices
Tap water · industrial water (Thousand m3) 7,023 6,946 6,106 6,088 6,047
NIDEC MACHINETOOL CORPORATION (1) D esign, manufacture, sales and consulting services associated swith
Groundwater 1,186 1,103 1,102 958 1,240 machine tools, cutting tools, and other related products.
Rivers, ponds, lakes, rainwater (Thousand m3) 16 15 10 9 261 https://www.nidec.com/en/nidec-machinetool/
(2) I nstallation, technical guidance, and after-sales services related to the
The sales ratio of environmentally contributing products (%)*7 13.4 14.4 11.5 12.5 14.6
above products.
S/ Society NIDEC ELESYS CORPORATION Development, manufacture and sales of automotive inverters and electronic
(FY) https://www.nidec.com/en/nidec-elesys/ control devices for automotive bodies
2018 2019 2020 2021 2022
CSR audits conducted by business partner(s) (times)*8 86 93 132 123 122 NIDEC ADVANCED MOTOR CORPORATION Development, manufacture and sales of small precision motors, fans, blowers,
Employees (persons) (consolidated) 108,906 117,206 112,551 114,371 106,592 https://www.nidec.com/en/nidec-advancedmotor/ sensors and motor application products for industrial and commercial use
Ratio of female employees (%) (consolidated)*9 — 50.6 49.1 48.2 47.0 NIDEC OKK CORPORATION (1) D esign, manufacturing, and sale of machine tools (machining centers,
Ratio of female managers and officers*10 (%) (consolidated)*9 — 25.9 28.2 27.2 23.9 NC milling machines, general-purpose milling machines, and specialized
https://www.nidec.com/jp/nidec-okk/
Rate of industrial accidents involving lost working time (consolidated)*11 — 0.78 0.66 0.73 0.85 machine tools)
Employees (persons) (non-consolidated) 2,794 2,756 2,568 2,511 2,176
Corporate Information
(2) I nstalling, and providing technical Support and customer support for, the
Ratio of female employees (%) (non-consolidated) 19.7 20.4 20.6 19.9 19.4
above products.
Number of female managers (non-consolidated) 32 34 33 37 41
Ratio of female managers (%) (non-consolidated) 5.0 5.5 5.7 6.2 7.0 NIDEC GLOBAL SERVICE CORPORATION Various insurance agency operations, real estate service, vending machine
Number of female officers (non-consolidated) 1 1 3 4 6 https://www.nidec.com/jp/nidec-globalservice/ business, sales of various goods, operation of company stores, staffing
Ratio of female officers (%) (non-consolidated) 2.4 2.4 7.9 10.0 15.0 agencies, hotel business, beverage sales, etc.
Rate of persons with disabilities employed (%) (non-consolidated) 1.98 2.19 2.24 2.40 2.28 NIDEC MACHINERY CORPORATION Design, manufacture, sales and technical support of various automatic
Employee training (hours) (non-consolidated) 119,676 110,077 112,162 71,154 28,072 machines, FA equipment, measuring and testing equipment
https://www.nidec.com/en/nidec-machinery/
Employee training hours per person (hours) 42.8 39.9 43.7 31.0 12.9
Average monthly overtime hours (hours) (non-consolidated) 16.2 16.3 11.2 17.3 19.6 NIDEC MOTORS & ACTUATORS (GERMANY) GmbH Development, manufacture and sales of automotive motors (for engine cooling,
Percentage of annual paid leave taken (%) (non-consolidated) 61.3 64.5 56.5 60.9 69.0 http://www.nidec-ma.com/ ABS, steering column adjustment, seat adjustment, power windows,
Rate of industrial accidents involving lost working time*11 (non-consolidated) 0.4 0.4 0.1 0.5 0.5 air suspension compressors, sunroof, and trunk opening and closing)
Number of employees who have taken maternity leave (non-consolidated) 41 30 24 22 22 NIDEC ELECTRIC MOTOR SERBIA d.o.o. Novi Sad Preparation for the factory manufacturing automotive motors and
Number of employees who have taken childcare leave (non-consolidated) 40 41 25 68 43 related products
Male employees (persons) 2 7 8 20 24
https://www.nidec.com/en/corporate/network/group/
Percentage of male employees who have taken childcare leave (%) (non-consolidated) 1.9 8.0 9.0 19.8 31.2 nidec-electric-motor-serbia/
Return rate after taking childcare leave (%) (non-consolidated) 89.3 90.0 100 96.0 92.5 NIDEC GPM GmbH R&D and manufacturing of water pumps, oil pumps and modules for the
Number of employees using the short-time work system (non-consolidated) 112 102 115 86 96 http://www.nidec-gpm.com/ automotive industry; wide range of OEM customers (passenger cars and
commercial vehicles)
G/ Governance
(FY)
NIDEC MOTOR CORPORATION R&D, manufacturing, and sales of industrial, commercial and appliance motors,
2018 2019 2020 2021 2022 https://acim.nidec.com/motors/ and control equipment
Directors (persons) 8 8 9 9 10 NIDEC GLOBAL APPLIANCE EUROPE SRL R&D, manufacturing and sales of motors for home appliances (washing
Directors who are also Executive Officers (persons) 5 5 1 2 1 machines, dryer machines, and dishwashers)
https://www.nidec.com/en/corporate/network/group/
Outside Directors (persons) 2 2 5 5 6
nidec-global-appliance-europe/
Ratio of Outside Directors (%) 25.0 25.0 55.6 55.6 60.0
Female Directors (persons) 0 0 2 2 5 NIDEC ASI S.p.A. R&D, manufacturing and sales of mid- to large-sized industrial motors,
Ratio of female Directors (%) 0.0 0.0 22.2 22.2 50.0 https://www.nidec-industrial.com/ power generators, and low- to mid-voltage drives as well as development of
Age of the youngest Director 51 52 48 49 50 industrial system and automation systems in the metal and power generation
Age of the oldest Director 77 78 79 80 78 (regenerated energy) fields
Average age of Directors 65 66 65 66 64
Nidec Leroy-Somer Holding R&D, manufacturing and sale of alternators, electric motors, geared motors,
*1 Data coverage ratio is a numerical value compared to sales. Data coverage rate for *10 All levels of management, including junior, middle and senior level management and http://www.leroy-somer.com/ variable speed drives, automation solutions and service offers for industry
FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, Data coverage rate for FY2021: 53.5% outside board directors. Junior management: Employees falling under either of the
*2 From FY2022 report, the IEA emission factor by country is used. Before FY2021, use following supervisory roles, or those with a similar level of responsibility: NIDEC CONTROL TECHNIQUES LIMITED R&D, manufacturing, and sales of AC and DC variable speed drives, servos and
“Ministry of the Environment: List of Calculation Methods and Emission Factors in the (A) t ypically responsible for directing and executing the day-to-day operational http://www.controltechniques.com/ power conversion technologies for commercial and industrial applications
Calculation, Reporting and Publication System”. objectives of organizations, conveying the directions of higher level officials and
*3 Unit changed (GJ→MWh). Values for FY2020 and FY2021 are recalculated values. managers to subordinate personnel. NIDEC GLOBAL APPLIANCE COMPRESSORES E SOLUCOES EM Engineering and manufacturing of household and commercial (merchandisers,
*4 From FY2022 report, the distinction between solid and liquid has been abolished. (B) supervise around 10 full-time employees and/or perform supervisory functions REFRIGERACAO LTDA food retail & service, medical and special applications) refrigeration
*5 Before FY2021, only solid waste is calculated. where judgment is exercised in at least two small operational teams/groups. https://www.embraco.com compressors and condensing units
*6 Data for FY2020 and FY2021 have been revised. *11 Calculation of consolidated data began from FY2019. Number of deaths and injuries
*7 The products meet the requirements of the FTSE Green Revenues Classification per 1 million hours worked in total. NIDEC CHAUN-CHOUNG TECHNOLOGY CORP. Development, manufacture and sales of thermal management devices
System. http://www.ccic.com.tw/index.php
*8 Eight companies overseas
*9 In FY2022, the survey was conducted to cover 95.0% of all Nidec Group employees. * This table lists a selection of major group companies.

Company Profile Historical stock prices and trading volume
(As of March 31, 2023) Stock price (yen) TOPIX (points) Trading volume (thousands of shares)
15,000 75,000
Trade name NIDEC CORPORATION*

12,000 60,000
Founded July 23, 1973
Nidec (left axis) TOPIX (left axis)
Location of Head Office 338 Kuzetonoshiro-cho, Minami-ku, Kyoto
9,000 45,000
Capital JPY 87,784 million
Fiscal year end March 31 6,000 30,000
Employees Nidec Corporation: 2,176

Consolidated: 106,592 3,000 15,000
Business sites in Japan Head Office, Tokyo Office, Central Technical Laboratory, Shiga Technical Center,
Nagano Technical Center, Nidec Research and Development Center, 0 0
Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022
and Nidec Center for Industrial Science
*1 Adjusted based on the 2-for-1 split implemented as of April 1, 2014 and April 1, 2020. Stock prices are expressed assuming that the stock split occurred in March 2012.
Corporate website https://www.nidec.com/en/
*2 F
igures for Nidec’s stock price and trading volume are those on the First Section of Osaka Securities Exchange for on and before July 15, 2013, and those on the First Section of Tokyo
Stock Exchange for on and after July 16, 2013. From April 1, 2022, the First Section of the Tokyo Stock Exchange was reorganized into Prime Market.
* On April 1, 2023, the Company’s Japanese name was changed from Nippon Densan Kabushikigaisha to Nidec Kabushikigaisha.
External Evaluation
Stock Information (As of September 1, 2023)
(As of March 31, 2023)

Inclusion in ESG indexes Awards and commendations
Share status Shareholder mix FTSE4Good Index Series Nadeshiko Brand
Japanese securities firms and Since 2018, Nidec has been included in the FTSE4Good Index Nidec was selected as a Nadeshiko Brand in FY2021 by
other Japanese corporations Treasury shares
Number of shares 596,284,468 Series, designed to measure the performance of companies the Japan Ministry of Economy, Trade and Industry (METI)
8.24% 3.53% demonstrating excellent environmental, social and governance and the Tokyo Stock Exchange (TSE).
outstanding (49,191,000 shares) (21,059,000 shares)
Corporate Information
(ESG) practices.
ESG-themed brand
Number of 159,838 Individuals and others Trust banks FTSE Blossom Japan Sector Relative Index In the first “ESG brands” selection in 2012 at the Tokyo Stock Exchange, which
Since 2022, in addition to ESG evaluation, Nidec has been identifies themed brands for individual investors based on specific themes and
shareholders 21.39%
Number of 22.32%
Included in the FTSE Blossom Japan Sector Relative Index, indexes, Nidec was selected as an ESG-themed brand.
(127,597,000 shares) (133,107,000 shares)
shares owned an index to evaluate the management stance of companies
base with respect to climate change risks and opportunities. Receiving three-star “eruboshi” status
In 2018, Nidec received a three-star rating (highest level) of
Foreign institutions Other financial institutions FTSE Blossom Japan Index “eruboshi” status granted by the Minister of Health, Labour
28.04% 16.45% Since 2018, Nidec has been included in the FTSE Blossom Japan and Welfare to companies that have made excellent efforts
(167,204,000 shares) (98,123,000 shares) Index, an index that reflects the performance of Japanese related to the promotion of women’s participation and
companies demonstrating excellent ESG practices. advancement in the workplace.
* Figures less than one thousand in the number of shares owned are rounded off.
MSCI Japan Empowering Women (WIN)
Since 2017, Nidec has been part of the MSCI Japan Empowering Women (WIN) Evaluation of IR activities
index, which includes companies selected out of the top 700 brands in market
Principal shareholders capitalization ranking (the MSCI Japan IMI Top 700 Index) based on their gender- Gomez IR Site Ranking 2022 Silver Award
related diversity (women’s Nidec received a Silver Award in the overall “Gomez IR Site Ranking 2022” published
Number of shares owned Holding ratio (%) active participation in the by Morningstar Japan K.K. In the electrical equipment industry ranking, Nidec was
Name
(thousands) workforce) in each industry. ranked 12th.
The Master Trust Bank of Japan, Ltd. (trust account) 84,576 14.70 * The inclusion of Nidec Corporation in any MSCI index and the use of MSCI logos, trademarks, Nikko IR All Japanese Listed Companies’ Website Ranking
service marks or index names herein do not constitute a sponsorship, recommendation or Nidec’s website was selected as a grade AAA site in the annual survey of all Japanese
Shigenobu Nagamori 49,473 8.60 advertising of Nidec Corporation by MSCI or any of its affiliates. The MSCI indexes are the listed companies’ websites conducted by Nikko Investor Relations Co., Ltd. in FY2022.
exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service
Custody Bank of Japan, Ltd. (trust account) 29,980 5.21 marks of MSCI or its affiliates.
Daiwa IR Internet IR Commendation Award 2022
The Bank of Kyoto, Ltd. 24,798 4.31 Nidec received the Commendation Award in the “Internet IR Award 2022” by Daiwa
Morningstar Japan ex-REIT Gender Diversity Tilt Index Investor Relations Co., Ltd.
S.N. Kosan, LLC. 20,245 3.51 Since 2023, Nidec has been included in the Morningstar Japan ex-REIT Gender
Diversity Tilt Index, an index that focuses on companies whose gender diversity Award for Excellence in Corporate Disclosure
MUFG Bank, Ltd. 14,851 2.58 policies are embedded in their corporate culture and companies committed to equal In 2022, Nidec was ranked 10th in the Electric/Precision section in 2022 Awards for
opportunities for their employees regardless of gender. Excellence in Corporate Disclosure, sponsored by the Securities Analysts Association
THE BANK OF NEW YORK MELLON 140042 14,105 2.45 of Japan.
Nippon Life Insurance Company 13,159 2.28
Rating information
Meiji Yasuda Life Insurance Company 12,804 2.22
Rating agency Announced Target Long-term Rating Short-term Rating
SSBTC CLIENT OMNIBUS ACCOUNT 9,605 1.66
Japan Credit Rating Agency, Ltd. (JCR) December 2022 Issuer AA —
*1 Figures less than one thousand in the number of shares owned are rounded off. Rating and Investment Information, Inc. (R&I) December 2022 Issuer AA– a-1+
*2 The
Company’s holding of 21,059,236 treasury stock is excluded from the above major shareholders. The shareholding ratio was calculated excluding treasury stock.
Treasury stock do not include shares of the Company held by the BIP (Board Incentive Plan) Trust and the ESOP (Employee Stock Ownership Plan) Trust, but include a total of 3,531 Moody’s May 2023 Issuer A3 —
fractional shares arising from the exchange of shares with NIDEC OKK CORPORATION with an effective date of March 1, 2023.

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Integrated Report

01 NIDEC CORPORATION INTEGRATED REPORT 2023

Policy POLICY 01 Dreaming of the next 50 years 47 Materiality

Disclaimer Regarding Forward-Looking Statements

03 NIDEC CORPORATION INTEGRATED REPORT 2023 04

Marking the 50th Anniversary

05 NIDEC CORPORATION INTEGRATED REPORT 2023 06

We aim to become a top-rated global company

Aiming to Continue to Be a Socially Indispensable

07 NIDEC CORPORATION INTEGRATED REPORT 2023 08

its business. May 2022

Common Common Q&As

Individual Individual Q&As

09 NIDEC CORPORATION INTEGRATED REPORT 2023 10

Mitsuya Kishida Yoshihisa Kitao

11 NIDEC CORPORATION INTEGRATED REPORT 2023 12

Tatsuya Nishimoto Toshiyuki Otsuka

13 NIDEC CORPORATION INTEGRATED REPORT 2023 14

INPUT OUTPUT OUTCOME IMPACT

motors with the world’s best performance

Contributing to the world by providing

15 NIDEC CORPORATION INTEGRATED REPORT 2023 16

Value Creation of Nidec Group

Nidec becomes the world’s top HDD motor manufacturer

History of growth through M&A

Hard disc Hard disc

17 NIDEC CORPORATION INTEGRATED REPORT 2023 18

Value Creation of Nidec Group

2000s～ Social trends

Spread of the Internet and emergence of new digital devices

Social trends Social trends

19 NIDEC CORPORATION INTEGRATED REPORT 2023 20

Value Creation Strategy

Consolidated Electric water

Household refrigerator compressors

E-Axle electric vehicle

21 NIDEC CORPORATION INTEGRATED REPORT 2023 22

Financial Information Non-financial Information

Value Creation Strategy

Operating profit (left axis) Scope1 Scope 2 (market standard)*3 Scope3*4

23 NIDEC CORPORATION INTEGRATED REPORT 2023 24

Business Strategy NIDEC’s DNA

Value Creation Strategy

about one year. Nidec clearly practices speedy management.

Philosophy that lies at the root of the corporate culture:

25 NIDEC CORPORATION INTEGRATED REPORT 2023 26

Value Creation Strategy

Becoming a global company that

continues to grow for the next

Small Automotive Appliances, Other Small Automotive Appliances, Other

27 NIDEC CORPORATION INTEGRATED REPORT 2023 28

Value Creation Strategy

2022 2023 2024 2025 2026 2027 2030 2020 2025

29 NIDEC CORPORATION INTEGRATED REPORT 2023 30

Steadily implementing measures Europe

Value Creation Strategy

Building a solid financial foundation to support growth strategies

31 NIDEC CORPORATION INTEGRATED REPORT 2023 32

Focusing on the Group’s unity through

Operating profit (left axis) Scope1 Scope 2 (market standard)3 Scope34

Promote diversity Reduce GHGs FY2025, increase the

Sustainable procurement considering Manage waste — educe the volume of waste