Announcement regarding Nikkei xTech’s January 16, 2025 Article

This press release by Nidec Corporation (TSE: 6594; OTC US: NJDCY) (“Nidec” or the “Company”) is to call for attention regarding an article posted in Nikkei xTech (publisher: Nikkei BP) on January 16, 2025, which provides descriptions based on inaccurate information about, and features only certain aspects of, the Nidec Group’s machine tool businesses, thereby causing misunderstanding among its readers. Even though the article has already been removed as of the posting of this press release, the Company nevertheless makes this release, as the report clearly caused misunderstanding among Nidec’s investors.

The article in question claims that multiple machine tool companies of the Nidec Group have experienced operating deficit and decrease in the range of their profitability after joining the group. However, these figures do not accurately represent the reality of the individual businesses, as the numbers are merely the operating profits of these companies prior to joining the Nidec Group, or of the companies’ Japanese units alone, and fail to consider such elements as the impacts of business consolidation, consolidated profit, and depreciation and amortization cost caused by capital expenditure.

The consolidated profits of these Nidec Group companies have been constantly and significantly improving since they joined the group. For example, Nidec OKK Corporation has already started generating profit on a consolidated basis, while other machine tool companies of the group constantly enjoy operating profit ratios of 10% or more.

Nikkei xTech has never contacted Nidec for any interviews regarding anything reported in the article. The Company considers the report as inaccurate, as it also contains imagination-oriented, groundless claims such as suspicion over Nidec’s management of confidential information and risks of decline in the quality of the Company’s products.

Nidec stays committed to proper information disclosure, and will launch an appropriate protest against inaccurate media reports.