Today's media report about Nidec

We refer to an article published by Nikkan Kogyo Shimbun ("Nikkan Kogyo") on January 20, 2025 ("Article") about the concerns raised by the China Die & Mould Industry Association regarding the proposed transaction (“Transaction”) by Nidec Corporation (“Nidec”) to convert Makino Milling Machine Co., Ltd. (“Target”) into a wholly owned subsidiary of Nidec. Nidec wholeheartedly rejects any claims that the Transaction will give rise to "fundamental adverse effect…on development, technical support, and after-sales service…resulting in suspension of high technological development capabilities and high-quality services " as reported in the Article.

As explained in the Letter of Intent (“LOI”) dated December 27, 2024, the Transaction is intended to provide our customers with even higher quality products and a wider array of services by combining the complementary production, sales, and service networks of Nidec and the Target. Further, the Transaction is expected to maximize synergies between the parties, enhancing added value provided to our customers. This is attested by the many positive comments we received from our customers and business partners concerning our operations in China since the Transaction was announced, many of which refer to new synergies and value creation resulting from the Transaction.

Nidec Group has been operating in China since the establishment of the Dalian plant in 1992. At present, there are more than 70 businesses in the country, operating not only within the industrial machinery sector but across a wide range of business segments, employing more than 35,000 people. For our group, China remains an important market. We also manufacture and sell a variety of motor-based products in the automotive, consumer electronics, commercial, and industrial markets. We have good relations with many companies in the die and mould industry in China, and consider the growth of the die and mould industry in the country to be an integral part of our growth trajectory.

To date, our group has acquired a total of 74 companies. Our growth has been made possible by incorporating companies into our group while respecting their individual cultures, taking into consideration all stakeholders, including customers and business partners. Contrary to concerns expressed by the China Die & Mould Industry Association, we believe that the Transaction will result in positive synergies.

We remain fully committed to engaging with our stakeholders to promote their full and comprehensive understanding of the Transaction.