Nidec (6594) Press conference held; developments deserve to be closely monitored

Research evidence excerpt

Nidec (6594) Press conference held; developments deserve to be closely monitored

J P M O R G A N Asia Pacific Equity Research

14 May 2026

Nidec (6594) Underweight

6594.T, 6594 JP

Press conference held; developments deserve to be Price (13 May 26):¥2,435

closely monitored Price Target (Dec-26):¥1,800

Nidec held a press conference at 17:00 JST on May 13 on suspected improprieties Japan Equity Research

regarding quality issues, the establishment of an Investigation Committee,

Technology - Electronic

progress on initiatives to turn the company around, a new board structure, and Components

measures to improve the company's value. Management said it identified these AC Akinori Kanemoto

issues while working on reforms. It emphasized its commitment to working

(81-3) 6736 8628

toward submitting a written confirmation of internal control systems by October akinori.kanemoto@jpmorgan.com

28. While the announcement of improprieties regarding quality issues following Ikki Shibata

the investigation into improper accounting is a negative, we like that the company (81-3) 6736 8641

discovered these issues under a policy of "making sure to do things right." ikki.shibata@jpmorgan.com

JPMorgan Securities Japan Co., Ltd.

We also like that management said during the press conference that it is trying to

reform the corporate culture and redevelop systems and processes to strengthen

governance. However, the company's initiatives will need to be closely monitored,

in our view, as it is by no means easy to foster and establish a new corporate culture.

For the time being, given the re-audit of the past five years, the FY2025 audit, and

the establishment of the Investigation Committee, we want to see whether the

company can rebuild an internal control system worthy of a publicly traded