{"success":true,"data":{"pressRelease":{"id":"156980","rtpr_id":"nBw4JQp08a-20260930","ticker":"6594","exchange":"TSE Tokyo","all_tickers":["6594"],"title":"Nidec Announces Recording of Extraordinary Losses and Gains in Non-Consolidated Financial Results","author":"Business Wire","published_at":"2026-09-30T14:19:00.109Z","article_body":"Nidec Announces Recording of Extraordinary Losses and Gains in\nNon-Consolidated Financial Results\n\nNidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company” or “we”)\nhereby announces that it has recorded extraordinary losses and extraordinary\ngains in its non-consolidated financial results for the fiscal year ended\nMarch 31, 2026, as detailed below.\n\nWe sincerely apologize for any inconvenience and concern caused to our\nshareholders, investors, and other stakeholders.\n\n1. Details of the extraordinary loss/gain\n\nThe Company recognized suspected improper accounting practices involving or\nrecognized by the management of the Company or its group companies, and these\npractices, including arbitrarily adjusting the timing of write-downs of\ncertain assets with risk in terms of their asset value, may impose a material\nimpact on the Company’s overall consolidated financial statements. Thus, the\nCompany determined that it would need to launch an objective investigation by\nan independent third-party committee and established such a committee (the\n“Third-Party Committee”) on September 3, 2025. The Company subsequently\nreceived investigation reports from the Third-Party Committee on February 27,\n2026, and April 17, 2026. These reports confirmed numerous instances of\naccounting misconduct across multiple locations within the Company’s group,\nincluding the deferral of inventory valuation losses, the avoidance of\nimpairment losses on fixed assets, and the capitalization of expenditures that\nshould have been expensed. Furthermore, the Company conducted investigations\ninto suspected quality-related misconduct as well as customs issues, and\ncarried out necessary procedures of the financial settlement based on the\nfindings of these investigations.\n\nAccordingly, expenses incurred for the investigations into this series of\nissues and the subsequent review of financial statements were recorded as\nextraordinary losses as “Special investigations and related expenses”. In\naddition, as a result of correction to prior financial statements of\naffiliated companies during this financial review process, net assets of\ncertain subsidiary companies decreased. Consequently, the Company recorded a\nreversal of allowance for loss on debt guarantees and extraordinary losses\ncomprising loss on valuation of shares of affiliated companies, loss on\nvaluation of investments in affiliated companies, provision for allowance for\ndoubtful accounts for affiliates, provision for allowance for loss on debt\nguarantees and provision for allowance for business loss of affiliated\ncompanies in its non-consolidated financial results. Furthermore, in\nconnection with an absorption-type corporate split of a subsidiary's business\nfor which an allowance for business loss of affiliated companies had been\nrecorded in prior fiscal years, the Company recorded a reversal of allowance\nfor doubtful accounts for affiliates, a reversal of allowance for business\nloss of affiliated companies (extraordinary income) and a loss on\nextinguishment of tie-in shares (extraordinary loss). The Company also\nrecorded an additional provision for the allowance for contract losses assumed\nthrough this absorption-type company split. The respective amounts recorded\nare as follows;\n\n(Extraordinary losses)\n Item                                                               Recorded amount  \n Special investigations and related expenses                        ¥30.5 billion    \n Loss on valuation of shares of affiliated companies                ¥183.5 billion   \n Loss on valuation of investments in affiliated companies           ¥2.2 billion     \n Provision for allowance for doubtful accounts for affiliates       ¥1.5 billion     \n Provision for allowance for loss on debt guarantees                ¥21.7 billion    \n Provision for allowance for business loss of affiliated companies  ¥28.4 billion    \n Provision for loss on contracts                                    ¥6.8 billion     \n Loss on extinguishment of tie-in shares                            ¥56.3 billion    \n Total                                                              ¥330.9 billion   \n\n\n(Extraordinary gains)\n Item                                                             Recorded amount  \n Reversal of allowance for doubtful accounts for affiliates       ¥20.0 billion    \n Reversal of allowance for loss on debt guarantees                ¥0.1 billion     \n Reversal of allowance for business loss of affiliated companies  ¥34.2 billion    \n Total                                                            ¥54.3 billion    \n\n\n2. Impact on consolidated financial results\n\nThe special investigation and related expenses have been reflected in the\nAnnual Securities Report for the Fiscal Year Ended March 31, 2026, and the\nFinancial Statements Summary for the Year Ended March 31, 2026 [IFRS]\n(Consolidated), both disclosed today. Nidec will promptly announce any matters\nthat should be disclosed when it emerges.\n\nThe loss on valuation of shares of affiliated companies, loss on valuation of\ninvestments in affiliated companies, provision for allowance for doubtful\naccounts for affiliates, provision for allowance for loss on debt guarantees,\nprovision for allowance for business loss of affiliated companies, reversal of\nallowance for doubtful accounts for affiliates, reversal of allowance for\nbusiness loss of affiliated companies and loss on extinguishment of tie-in\nshares have been eliminated in the consolidated financial statements and\ntherefore have no impact on consolidated financial results.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260930820070/en/\n(https://www.businesswire.com/news/home/20260930820070/en/)\n\nTeruaki Urago\n\nGeneral Manager\n\nInvestor Relations\n\n+81-75-935-6140\n\nir@nidec.com (mailto:ir@nidec.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw4JQp08a-20260930","title":"Nidec Announces Recording of Extraordinary Losses and Gains in Non-Consolidated Financial Results","author":"Business Wire","ticker":"6594","created":"2026-09-30T14:19:00.109Z","tickers":["6594"],"exchange":"TSE Tokyo","article_body":"Nidec Announces Recording of Extraordinary Losses and Gains in\nNon-Consolidated Financial Results\n\nNidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company” or “we”)\nhereby announces that it has recorded extraordinary losses and extraordinary\ngains in its non-consolidated financial results for the fiscal year ended\nMarch 31, 2026, as detailed below.\n\nWe sincerely apologize for any inconvenience and concern caused to our\nshareholders, investors, and other stakeholders.\n\n1. Details of the extraordinary loss/gain\n\nThe Company recognized suspected improper accounting practices involving or\nrecognized by the management of the Company or its group companies, and these\npractices, including arbitrarily adjusting the timing of write-downs of\ncertain assets with risk in terms of their asset value, may impose a material\nimpact on the Company’s overall consolidated financial statements. Thus, the\nCompany determined that it would need to launch an objective investigation by\nan independent third-party committee and established such a committee (the\n“Third-Party Committee”) on September 3, 2025. The Company subsequently\nreceived investigation reports from the Third-Party Committee on February 27,\n2026, and April 17, 2026. These reports confirmed numerous instances of\naccounting misconduct across multiple locations within the Company’s group,\nincluding the deferral of inventory valuation losses, the avoidance of\nimpairment losses on fixed assets, and the capitalization of expenditures that\nshould have been expensed. Furthermore, the Company conducted investigations\ninto suspected quality-related misconduct as well as customs issues, and\ncarried out necessary procedures of the financial settlement based on the\nfindings of these investigations.\n\nAccordingly, expenses incurred for the investigations into this series of\nissues and the subsequent review of financial statements were recorded as\nextraordinary losses as “Special investigations and related expenses”. In\naddition, as a result of correction to prior financial statements of\naffiliated companies during this financial review process, net assets of\ncertain subsidiary companies decreased. Consequently, the Company recorded a\nreversal of allowance for loss on debt guarantees and extraordinary losses\ncomprising loss on valuation of shares of affiliated companies, loss on\nvaluation of investments in affiliated companies, provision for allowance for\ndoubtful accounts for affiliates, provision for allowance for loss on debt\nguarantees and provision for allowance for business loss of affiliated\ncompanies in its non-consolidated financial results. Furthermore, in\nconnection with an absorption-type corporate split of a subsidiary's business\nfor which an allowance for business loss of affiliated companies had been\nrecorded in prior fiscal years, the Company recorded a reversal of allowance\nfor doubtful accounts for affiliates, a reversal of allowance for business\nloss of affiliated companies (extraordinary income) and a loss on\nextinguishment of tie-in shares (extraordinary loss). The Company also\nrecorded an additional provision for the allowance for contract losses assumed\nthrough this absorption-type company split. The respective amounts recorded\nare as follows;\n\n(Extraordinary losses)\n Item                                                               Recorded amount  \n Special investigations and related expenses                        ¥30.5 billion    \n Loss on valuation of shares of affiliated companies                ¥183.5 billion   \n Loss on valuation of investments in affiliated companies           ¥2.2 billion     \n Provision for allowance for doubtful accounts for affiliates       ¥1.5 billion     \n Provision for allowance for loss on debt guarantees                ¥21.7 billion    \n Provision for allowance for business loss of affiliated companies  ¥28.4 billion    \n Provision for loss on contracts                                    ¥6.8 billion     \n Loss on extinguishment of tie-in shares                            ¥56.3 billion    \n Total                                                              ¥330.9 billion   \n\n\n(Extraordinary gains)\n Item                                                             Recorded amount  \n Reversal of allowance for doubtful accounts for affiliates       ¥20.0 billion    \n Reversal of allowance for loss on debt guarantees                ¥0.1 billion     \n Reversal of allowance for business loss of affiliated companies  ¥34.2 billion    \n Total                                                            ¥54.3 billion    \n\n\n2. Impact on consolidated financial results\n\nThe special investigation and related expenses have been reflected in the\nAnnual Securities Report for the Fiscal Year Ended March 31, 2026, and the\nFinancial Statements Summary for the Year Ended March 31, 2026 [IFRS]\n(Consolidated), both disclosed today. Nidec will promptly announce any matters\nthat should be disclosed when it emerges.\n\nThe loss on valuation of shares of affiliated companies, loss on valuation of\ninvestments in affiliated companies, provision for allowance for doubtful\naccounts for affiliates, provision for allowance for loss on debt guarantees,\nprovision for allowance for business loss of affiliated companies, reversal of\nallowance for doubtful accounts for affiliates, reversal of allowance for\nbusiness loss of affiliated companies and loss on extinguishment of tie-in\nshares have been eliminated in the consolidated financial statements and\ntherefore have no impact on consolidated financial results.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260930820070/en/\n(https://www.businesswire.com/news/home/20260930820070/en/)\n\nTeruaki Urago\n\nGeneral Manager\n\nInvestor Relations\n\n+81-75-935-6140\n\nir@nidec.com (mailto:ir@nidec.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-30T14:19:00.158021996Z","server_sent_at_ms":1790777940158},"received_at":"2026-09-30T14:19:00.209Z","source_url":"https://www.businesswire.com/news/home/20260930820070/en/"},"analysis":{"id":"145656","press_release_id":"156980","analysis_json":{"industry":{"label":"Electrical Equipment","sector":"Industrials"},"redFlags":["confirmed accounting misconduct across multiple group locations (deferral of losses, avoided impairments, improper capitalization)","suspected improper accounting by company or group company management","quality-related misconduct and customs issues also investigated","affiliate losses forced guarantees and valuation write-downs"],"eventType":"earnings","narrative":"Nidec recorded ¥330.9 billion in extraordinary losses against ¥54.3 billion of extraordinary gains in its non-consolidated results for the fiscal year ended March 31, 2026, tied to confirmed accounting misconduct.\n\nA third-party committee investigation confirmed numerous instances of misconduct across the group, including deferred inventory valuation losses, avoided impairments, and improper capitalization of expenses.\n\nMost items, including the ¥183.5 billion affiliate share valuation loss, are eliminated in consolidation, so Nidec states there is no impact on consolidated financial results, though ¥30.5 billion of investigation-related expenses are reflected in the consolidated reports.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Scandal accounting fallout quantified: ¥330.9B extraordinary losses at Nidec, but consolidated impact limited to investigation costs."},"keyFigures":{"customDimensions":{"consolidated_impact":"Most extraordinary items eliminated in consolidation; no impact on consolidated results","extraordinary_gains_total_yen":"¥54.3 billion","extraordinary_losses_total_yen":"¥330.9 billion","special_investigations_expenses":"¥30.5 billion","loss_on_extinguishment_of_tie_in_shares":"¥56.3 billion","loss_on_valuation_of_shares_of_affiliates":"¥183.5 billion"}},"namedEntities":{"people":[{"name":"Teruaki Urago","role":"General Manager, Investor Relations"}],"products":[],"companies":[{"name":"Nidec Corporation","ticker":"6594","relationship":"filer"}],"dollarAmounts":[{"amount":"¥330.9 billion","context":"total extraordinary losses, non-consolidated"},{"amount":"¥54.3 billion","context":"total extraordinary gains, non-consolidated"},{"amount":"¥30.5 billion","context":"special investigations and related expenses"},{"amount":"¥183.5 billion","context":"loss on valuation of shares of affiliated companies"}]},"materialImpact":{"score":4,"reasoning":"Confirmed accounting misconduct across multiple group locations with ¥330.9 billion in extraordinary losses (non-consolidated) and a completed third-party investigation. Net consolidation impact is largely eliminated, but this follows an admitted improper accounting scandal at a major global manufacturer."},"tickerRelevance":{"others":[{"ticker":"NJDCY","relevance":"US OTC ADR of same issuer"}],"primary":"6594"},"globalImportance":45,"audienceRelevance":35,"eventTypeSecondary":["other"],"importanceComponents":{"tickerTier":"large-cap international","eventGravity":"accounting misconduct disclosure with quantified extraordinary items","consolidatedImpactMitigation":true}},"event_type":"earnings","event_type_secondary":["other"],"sentiment":"bearish","material_impact_score":4,"narrative":"Nidec recorded ¥330.9 billion in extraordinary losses against ¥54.3 billion of extraordinary gains in its non-consolidated results for the fiscal year ended March 31, 2026, tied to confirmed accounting misconduct.\n\nA third-party committee investigation confirmed numerous instances of misconduct across the group, including deferred inventory valuation losses, avoided impairments, and improper capitalization of expenses.\n\nMost items, including the ¥183.5 billion affiliate share valuation loss, are eliminated in consolidation, so Nidec states there is no impact on consolidated financial results, though ¥30.5 billion of investigation-related expenses are reflected in the consolidated reports.","key_figures":{"customDimensions":{"consolidated_impact":"Most extraordinary items eliminated in consolidation; no impact on consolidated results","extraordinary_gains_total_yen":"¥54.3 billion","extraordinary_losses_total_yen":"¥330.9 billion","special_investigations_expenses":"¥30.5 billion","loss_on_extinguishment_of_tie_in_shares":"¥56.3 billion","loss_on_valuation_of_shares_of_affiliates":"¥183.5 billion"}},"named_entities":{"people":[{"name":"Teruaki Urago","role":"General Manager, Investor Relations"}],"products":[],"companies":[{"name":"Nidec Corporation","ticker":"6594","relationship":"filer"}],"dollarAmounts":[{"amount":"¥330.9 billion","context":"total extraordinary losses, non-consolidated"},{"amount":"¥54.3 billion","context":"total extraordinary gains, non-consolidated"},{"amount":"¥30.5 billion","context":"special investigations and related expenses"},{"amount":"¥183.5 billion","context":"loss on valuation of shares of affiliated companies"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-30T14:19:06.938Z","global_importance":45,"audience_relevance":35,"importance_components":{"tickerTier":"large-cap international","eventGravity":"accounting misconduct disclosure with quantified extraordinary items","consolidatedImpactMitigation":true}},"durationMs":6718,"modelName":"glm-5.3-flashx"}}