INTEGRATEDREPORT 2022

Three Key focuses

Nidec today finds itself better able to use its motor technology to help solve global issues on a scale never achieved before.
Aligning its business growth with new market dynamics, Nidec is poised to embrace reformative changes to ensure sustainability
over the next 100 years and beyond.

TOPIC

Adapting to the changing natureof raw material procurement

Prices of non-ferrous metals and rare metals, which are used in many of Nidec products,
are likely to hover at high levels mainly due to expanding demand, diversifying uses,and geopolitical factors in major producer countries. Despite repeated shortfalls in demandduring the height of the pandemic, the prices of these critical materials are quick to climb backup and are expected to remain high as new demand arises from the ongoing global electrification
for the low-carbon transition, accompanied by the expanding reach of 5G networks.
Alongside addressing the complexity of the global metal market, we also seek to phase out ofparticular types of raw materials used in our products----the mining of which might involve a
grave risk of environmental disruptions, human rights abuses, or geopolitical disputes.
In addition, we are working to establish a resilient supply chain by driving forward strategic
semiconductor procurement and flexible capacity management,
as well as expanding in-house production of important parts.

A complex interplay between the surging electricity demand, the increasingly volatile
geopolitical and macroeconomic landscapes, and diversifying effects of climate change iscausing a severe energy crisis worldwide. With countries returning to natural gas and coal-fired
power to avoid further disruptions, the pace of global transition toward carbon neutrality
appears to have slowed. However, the standstill will be only temporary. In our view, the crisis
will give an even greater momentum, rather than a pause, to the global march toward net zeroas the world’s energy order is profoundly reshaped.
We are committed to going carbon neutral by the fiscal 2040 as part of its med-term strategic
targets and has been working to cut greenhouse gas emissions (GHGs) from its operations
through proactive measures including the use of renewable electricity. We put equal focus on
helping reduce GHGs from society as a whole by providing emission-reducing solutions, such asBattery Energy Storage Systems (BESS) and the E-Axle EV traction motor system.

E-Axle, an EV traction motor system

INTEGRATED REPORT 2022

NIDEC CORPORATION

TOPIC
01

Achieving carbon neutrality

02

Welcome to Nidec Integrated Report 2022

Sustainable business growth takes hold when strategies align closely withsolutions to universal issues. That is a firm belief of mine and the common
thread running through our growth-oriented thinking. We started issuing Nidec
Integrated Report in fiscal 2021, reflecting our motivation to give a fresh insight
into our historical, ongoing strengths and weaknesses in the context of the

TOPIC

rapid paradigm shift now getting underway. We will have active dialogue with

Driving forward miniaturizationand energy efficiency of products

our shareholders, investors and all the other stakeholders on our mechanism ofvalue creation and growth strategies presented in this Report, and reflect
findings from the dialogue in our strategies. By repeating this process, we aim
to become a company that will continue to enhance value creation regardless

Decarbonization, power saving, labor saving, 5G-driven technological advances andthe resulting digital data explosion are key forces underpinning a significant part ofthe demand growth we are witnessing today. These new market opportunities,
or Five Big Waves as we call them, have emerged from new challenges posed to
global sustainability. One thing they have in common is the need for more compact,
more energy efficient electric motors that power
the very heart of industrial infrastructure.

of environmental changes in the future, which is, “a global company that

Nidec’s new traction motor system for electricvehicles, otherwise known as the second
generation model of E-Axle, has achieved a 20%
size reduction from the previous generation model.
Likewise, one of our flagship household refrigerator
compressors have become as much as 41% smallerand 66% lighter since their release in 2010.

issues identified last year, an outline of the new medium-term strategic goal

continues to grow for the next 100 years and beyond.”
In Integrated Report 2022, we have enhanced key contents such as the
explanation about M&A and the value creation process by reviewing both what
we have done so far and the current environment surrounding Nidec. Also
contents such as the progress of various initiatives related to the ESG materiality“Vision 2025,” and our technology, human resources and financial strategies
strongly help our stakeholders understand the sustainability of the Nidec
Group. This report has been created with reference to the IFRS Foundation’sInternational Integrated Reporting Framework and the Ministry of Economy,
Trade and Industry’s Guidance for Collaborative Value Creation. We declareHousehold refrigerator compressorsthat the preparation processes and the contents of this report are legitimate.
We hope this report gives you a good picture of our sustainability journey03

Shigenobu Nagamori
Founder, Representative Director and Chairman

INTEGRATED REPORT 2022

NIDEC CORPORATION

and look forward to receiving your valuable, candid feedback.

04

Nidec’s founding mission is to provide comprehensive, top-quality
motor solutions capable of making a globally meaningful difference

MissionTable of Contents01	Three Key focuses

We contribute to the Earth by producing the highest quality
motors in the world.
All Nidec employees work to the very best of their ability to send motors into
the world. It is with these motors and other products we make that we solve
various issues such as the conservation of the global environment, andcontribute to making better lives for people all over the world.

04
07

39

39

Welcome to Nidec

100 years and beyond.

 Nidec is the world’s leading solution-providing business group

41 Support for the TCFDManagement Message

43

Environment

46

Products

49

Human Resources

53

Supply Chain

54

Corporate Governance

07 Message from the
ChairmanPresident11	Nidec Corporation

73

Profilethat solves numerous problems for the people in the world.

11 History of Nidec

Value

NIDEC CORPORATION

Discipline& Code05

2973

Small Precision Motors

75

Automotive Products

79

Advantages

3Q6S Seven Articles of Nidec Employees, 3Ps (Be proactive, productive, andprofessional), and eliminating six bad habits
Three Management Principles  Three Basic Management Philosophies Three Management Methods Three Management Attitudes
Three Conditions for Success
CSR Charter (social responsibility, respect for diversity, etc.)

Business Strategies

Industrial Products

15 Nidec’s Competitive hree Corporate Policies: “Passion, Enthusiasm, and Tenacity,” “Work smart,”Tand “Do your work now; do it without hesitation; do it until completed.”
“Creativity,” “Respect,” “Collaboration,” “Integrity,” “Decision Making,”“Team Building,” and “Grow Talent.”

Recommendations

77 Appliance, Commercial &Corporation“Nidec Way” “The Challenging Road”

Sustainability Committee

Integrated Report 2022

 
Nidec is a global company that grows sustainably for the next

VisionToward Achieving Sustainability

40 Establishment of the09 Message from the

Corporate
Philosophies

Materiality Initiatives

Other Products

17

Business Operations

19

Value Creation Process

21

Performance Highlights

Information23

Nidec’s Materiality

81

Financial/Non-financial Data

84

Group Companies

85

Company Profile

85

Stock Information

86

External Evaluation81	Financial and Corporate

Management Strategy
29 Overview of the MediumTerm Strategic Goal
33

Technology Strategy

35

Human Resources Strategy

37

Financial Strategy

Reporting Period: April 1, 2021–March 31, 2022
This report includes information before and after the reporting period.

Nidec captured its strong growth momentum during the boom years for personal
computers, which date back to the late 1990s. Today, we are looking at the nextstage of growth amid the mounting global challenges facing the Earth’s
environment and people’s lives.

Reporting Guidelines

Nidec’s mission calls on us to help sustain the global environment and addresssocial issues through the creation of the highest quality motors. Our primary focus
is on propelling decarbonization and proving solutions to digital data explosion andglobal labor shortage.
The Nidec Group joined the
UN Global Compact in August
2015 and officiallyannounced its support forthe 10 Principles.

- International Integrated Reporting Framework, IFRS Foundation- 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 as market priceconditions and exchange rate fluctuations. Nidec undertakes no obligation to update any information regarding the forward-looking
statements contained in this report.

INTEGRATED REPORT 2022

PolicyThe aim of Nidec Corporation is to contribute to the development ofsociety and the welfare of the general public around the world. Nidec
aims to do so by supplying the highest quality products. Our company issincerely and enthusiastically dedicated to the trinity of technology,
skillfulness, and modern science. Thereby, Nidec strives to promote theprosperity of our society, our company, and all our employees.

06Ensuring Awareness of Our Corporate Culture

Aiming to become a global
company that continues to growfor the next 100 years and beyond
surrounding our businesses are becoming
more and more severe. Various problems
that affect our management decisions, suchas the prolonged impact of the spread of
COVID-19, soaring raw material prices, andan escalating energy crisis, have emerged.
To overcome these problems, in addition to
the ability to calmly analyze the internationalsituation, I think it is most important that all
the employees return to the starting pointof Nidec and have a determination to “tackle
challenges and do what others think theycannot do.”Now, our internal issues are becoming
apparent. In particular, finding the right
personnel who will lead Nidec in the future
in cooperation with all Nidec members is a
crucial task for us.

On September 2, 2022, Mr. Kobe wasappointed President with approval of theBoard of Directors. He has been my mosttrusted partner since the founding of Nidec.
However, I do not intend to continue themanagement structure led by me and Mr.
Kobe. For the moment, five Vice Presidents
are scheduled to be appointed in April 2023,
and a year later, one of them will be
appointed as President after a formal
consultation. The new President will spend
about four years thoroughly learning
Nidec’s management style before becoming
the new Chairman.
Our reform is not just about the business
management system. To achieve our goalof becoming “a global company that
continues to grow for the next 100 years
and beyond,” we must not hesitate toimplement reforms in various fields,
including development, procurement,
manufacturing and control. Various reform
initiatives that will dramatically change
Nidec, such as the ESG materiality actions
and the establishment of the Sustainability
Committee, are already steadily under way.
While maintaining our corporate culture,
which gives us a competitive advantage, wewill boldly advance the necessary reforms
to achieve the Vision.
November 2022

Shigenobu Nagamori
Founder, Representative Director and Chairman(Chief Executive Officer)

INTEGRATED REPORT 2022

NIDEC CORPORATION

07

culture is Nidec’s deeply rooted DNA.
I overlooked the key point that Nidec’s
future should be entrusted to someone
who, above all else, embodies thiscorporate culture.
What we need more than anything elseat the moment is to ensure that all theGroup’s employees are fully aware of ourcorporate culture. Once again, we will work
to instill in all Nidec members, frommanagement executives to front-line
employees, the spirit that forms our core,and reinforce the environment where they
engage in any business with the pursuit ofbeing No. 1 and speed.

Realizing the Vision

Nidec’s Tasks
Starting from a small prefab hut, Nidec hasgrown into a company that recorded
consolidated net sales of 1,918.2 billion yen
with an operating profit of 170.4 billion yen
in FY2021. The number of our colleagues
has increased to a total of 114,371 in theentire group. I appreciate that it is thepassion, enthusiasm and tenacity of all theGroup’s employees that made such growth
possible. In 2023, Nidec will celebrate its
50th anniversary. As announced in the new
medium-term strategy goal Vision 2025, we
aim to increase net sales to over 10 trillion
yen in FY2030 through organic growthcentered on growth fields in existing
businesses and new M&A deals.
While aggressively aiming at further
growth, I understand that the environment

To try to find my successor, I have brought
in a variety of people over the past several
years. All of those who came to us had
excellent talent. However, I could not findthe one who would succeed me and lead
Nidec, because none of them seemed totruly understand and absorb Nidec’s uniquecorporate culture, as represented by theattitudes of “Do it now, do it without
hesitation; do it until completed,” “Passion,
enthusiasm and tenacity,” and “Working
hard and smart.” For about 50 years since
its foundation, Nidec has achieved growththanks to this corporate culture. It is no
exaggeration to say that this corporate

Management Message

Message fromthe Chairman

08

Work together as “One Nidec”
to become a truly global company
On Assuming the Position of COO

NIDEC CORPORATIONI was appointed Representative Director
and President on September 2, 2022. I feelmyself straightening up as our 50th
anniversary is approaching.
Our lifestyles are changing exponentially.
In response to the macro-level changes,
such as worsening environmental problems
and declining working-age population, theshift to environment-friendly means oftransportation and digital transformation
have been advancing. As the forms ofcommunication among people will become09

more diversified, I believe that business
opportunities will emerge in totally new
fields, such as those represented by thedevelopment of virtual reality (metaverse).
What is important here is the reform of
human resources and organizations.
The reform in human resources will bepromoted by pursuing “proactive,
professional and productive” work styles.
In the aspect of organizations, I think it isnecessary to establish a system to support
such human resources.

Business Strategies for FY2022
Our EV traction motor system “E-Axle” hasbeen making great progress. As of the firstquarter of FY2022, we have received orders
for over 4 million units of E-Axle for FY2025.
Along with the declining prices of EVs, boththe number of orders and sales volume are
expected to continue to increase. In
September 2022, we started mass
production of the second-generation model,
which has achieved a 20% size reduction

the machine tool business itself, thereby
increasing profits.
The business environment surrounding
us is continuing to be severe with factors
such as signs of a slowdown in the global
economy as a whole, as well as declining
demand for PCs and HDDs in the Small
Precision Motors segment, delays inrecovery of global production volume in the
Automotive Products segment, and thepeaking out of demand for home appliancesin the Appliances, Commercial and Industrial
Products segment. However, we will not use
external circumstances as an excuse but
tirelessly take the necessary actions.

Management Message

and 30% cost reduction from the firstgeneration model. Development of the thirdand fourth-generation models is also
underway. In preparation for the expected
increase in demand, we are also working to
expand our global production capacity.
Regarding M&A, a major move wasthe acquisition of Nidec Machine Tool
Corporation and Nidec OKK Corporation todevelop our machine tool business. Initially,
the purpose of the acquisition of these twocompanies was to facilitate in-houseproduction of key parts of E-Axle. Now, wehave shifted the strategy to expanding the
product lineup through the development of

Sustainability Management
In FY2022, we set up a Sustainability
Committee inside the Board of Directors.
All five members of the Committee aremembers of the Board of Directors. I myself
am one of the members. I will fulfill my
responsibility as a member in the efforts ofbackcasting from the vision of “a global
company that continues to grow for the
next 100 years and beyond” to see ourpresent status, and ensure that thenecessary actions will be taken.

We will also continue to promote ongoing
initiatives. For example, from the environmental aspect, to achieve the goal ofcarbon neutrality in FY2040, we have beenpromoting the introduction of renewableenergy at our business sites. From the social
aspect, we have been advancing reform in
our human resources development andpersonnel system focusing on our
corporate culture.

Renaming the Company
On April 1, 2023, the day marking our 50th
anniversary, our company name in Japanese
will be changed. To establish a newcollective leadership system and become a10 trillion yen company, and then tocontinue to grow for the next 100 years andbeyond, I think all of the Nidec Group
employees working in 43 countries aroundthe world should take this opportunity tohave active communication across theborders of countries and regions.
During the last fiscal year, I met over 300
employees in person to have discussions on

the importance of understanding ourcorporate culture and the founder’s spirit.
We will continue to implement these
initiatives to lay the groundwork forbecoming a truly global company.
November 2022

Hiroshi Kobe
Representative Director and President(Chief Operating Officer)

INTEGRATED REPORT 2022

Message fromthe President

10History of Nidec Corporation

Please refer to the URL below for details of Nidec’s history.
https://www.nidec.com/en/corporate/about/history/

1973

M&A as the growth driver

Nippon Densan Corporation (now Nidec) established.
On July 23, 1973, Shigenobu Nagamori, who was then 28 years old and who now serves as
Representative Director and Chairman, established Nippon Densan Corporation (now Nidec
Corporation) with three friends in Nishikyo-ku, Kyoto. With the aspiration of “becoming No. 1 in theworld,” the four young men started to manufacture and sell small AC motors. Because it was difficult
to find customers in Japan, Nagamori flew to the United States, where he visited potential customers
without prior appointments.

Nidec has completed 68 M&A deals since its founding up to October 2022. In its 49-year history, the company concentrated
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
production of FDBs through 17 M&A deals. The second was between 2010 and 2020, when the HDD market was shrinking,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 todevelop technologies and people, Nidec has utilized M&A and overcome changes in both technologies and markets.

1980s~90s

Nidec Corporation Profile

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.

Social trends

Takeoff and expansion of the PC market

Nidec’s initiatives

Nidec becomes the world’s top HDD motor manufacturer

Nagamori, now Representative Director andChairman when the company started

Three founding members

In 1983, the first business-use personal computers (PCs) equipped with HDDs as memory were launched in the UnitedStates. 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 productionof brushless DC fans for PCs and office equipment. In September 1998, Nidec was listed on the first section of the Tokyo
Stock Exchange (now Prime Market).

Katsura Factory

An encounter with the brushless DC motor

History of growth through M&A

Fascinated by brushless DC motors, which feature low noise, long life and compact size, Nagamori was
immersed in its research in his school days. However, the brushless DC motor market was still small in
those days, and brushless DC motors were used only for limited applications such as fish finders.
At the request of an electric equipment manufacturer in the United States, Nidec developed a directdrive*1 motor for hard disc drives (HDDs) using brushless DC technology, and successfully launchedmass production in 1979. Direct-drive HDD motors contributed to the miniaturization and high storage
capacity of HDDs, and HDDs rapidly became widespread as a computer storage device. Since then,brushless DC motors have been the pillar of Nidec’s business. As the world’s No.1 manufacturer ofbrushless DC motors, Nidec has established a dominant position in a broad range of markets from IT
and automotive devices to home appliances.
Hard disc

Hard disc

Year

Country

Acquired companies/businesses

Specialized businesses/technologies/products

1984

United States

Torin Corporation, Axial fan division

Small axial-flow fans

1989

Japan

Shinano Tokki

HDD motors

Kyoritsu Machinery

Automatic motor assembly equipment, automatic inspection
equipment

1995

Japan

1995

Japan

Shimpo Industries

Continuously variable transmissions

1997

Japan

Tosok

Measuring instruments, semiconductor measuring equipment

1997

Japan

Read Electronics

Industrial inspection devices

1997

Japan

Kyori Kogyo

High-speed precision automatic press machines

1998

Japan

Copal

Manufacture of camera shutters

1998

Japan

Shibaura Densan

Motors for HVAC, small and medium-sized industrial motors

11

Belt
Spindle (precision rotating axis)

Belt drive method

Built-in motor
Motor

Spindle (precision rotating axis)

Direct drive method*1 Belt drive method and direct drive method
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 themainstream. Belt-drive HDDs were used mainly as storage devices for large computers. In order to spread computers to ordinary people, it wasessential to miniaturize and increase the storage capacity of HDDs, and what made this possible was the direct drive method, which integrates thespindle and motor in a single unit. Nidec played a critical role in developing and commercializing a direct drive spindle motor for HDDs.

Ball bearings were initially used for HDD motors. But around
1995, it became necessary to improve the rotation accuracyof motors in line with the increase in the capacity of HDDs.
Although there were studies on using FDBs for HDD motors,
no bearing manufacturers had succeeded in mass
production. In order to supply the needed HDD motors,
Nidec had to develop and produce FDBs from scratch, which
was a big challenge as the company had procured bearings
from outside suppliers and assembled them into HDD
motors. Therefore, Nidec acquired several companies that
had the technologies necessary for the development andproduction of FDBs. For example, Tosok had advanced
measuring technology while Kyori Kogyo and Copal hadpress technologies to punch motor cores. Sankyo Seiki wasleading in FDB technology and had a plant in the Philippines,
but mass production was not progressing as planned.
By acquiring these technologies, equipment, and engineers
through M&A, Nidec succeeded in replacing ball bearings
with FDBs and started full-scale mass production of HDD
motors with FDBs in 2000, and has maintained a high market
share since then.

*2 Fluid Dynamic Bearing (FDB)
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 fromthe bearings and rotates it smoothly. Although ball bearings were used conventionally, low noise and low vibration have been achieved by shifting to FDBs.

INTEGRATED REPORT 2022

NIDEC CORPORATION* Major companies are picked up and listed in this table.

12History of Nidec Corporation

Sales Trend

FY2021
Consolidated
sales exceed

1.9

FY2014
Consolidated
sales exceed

trillion yen

FY2025
Consolidated
sales target:

4 trillion yen

10 trillion yen

1 trillion yen

Nidec Corporation Profile

FY2005
Consolidated sales exceed

FY2030Consolidated
sales target:

500 billion yen

2010

2000s~

Social trends

Spread of the Internet andemergence of new digital devices

Nidec’s initiatives

Strengthening the HDD motor business andpromoting business diversification
In 2001, Nidec was listed on the New York Stock Exchange (now delisted). In 2003, the company’s Head Office and Central
Technical Laboratory 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 established its position as the top HDD motor manufacturer.
While engaging in the development of FDBs since around 1994, the company promoted diversification of its businessportfolio in case FDB production failed. As part of this initiative, we started developing motors for automobile power
steering in 1995 and launched mass production in 2000. We now hold the world’s top share in this field.
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.

NIDEC CORPORATION

History of growth through M&A

13

Year

Country

Acquired companies/businesses

2000

Japan

Y-E Drive

Specialized businesses/technologies/products

2000
2003
2006
2007
2007

ThailandJapan
FranceSingaporeJapan

Seagate Corporation, Motor division of Rangsit Plant
Sankyo Seiki Mfg.
Valeo S.A., Motor & actuator business division
Brilliant Manufacturing Ltd.
Japan Servo2010

United States

Motors & Controls business of Emerson Electric Co.

2012

Italy

Ansaldo Sistemi Industriali S.p.A.

2012
2012
2014
2015

United States
United StatesJapan
Germany

Avtron Industrial Automation, Inc.
Kinetek Group Inc.
Honda Elesys
Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt

Subsidiary of Yasukawa Electric Corporation. DC servo
motors for office automation
HDD motor factory
HDD motors
Automobile motors
HDD base covers
Subsidiary of Hitachi, Ltd. Manufacture of small motors
Motors for appliances and industrial machinery, large
motors for plant control, etc.
Motors for power generators for wind andhydroelectric power generation, and rolling mills, etc.
Control equipment for industrial motors
Commercial motors for elevators, escalators, etc.
Automotive electronic control units (ECU)
Automotive pumps* Major companies are picked up and listed in this table.

Whether the development of HDD motors with FDBs would
succeed was extremely important for Nidec, whose corebusiness was HDD motors. Therefore, in case we failed in thisbig challenge, we conducted M&A in fields other than HDD
motors to diversify our business portfolio. The acquisition of
Shibaura Densan in 1998 and Y-E Drive in 2000 provided us

with a foothold for advancing into the field of appliances,
commercial and industrial products. For power steering
motors, we faced difficulty in increasing the number ofcustomers because of the high entry barriers. However, theacquisition of the motor division of Valeo S.A. in France in 2006
dramatically expanded our market.

2010s~

2020

Social trends

Permeation of smart devices into people’s
everyday lives and increased awareness ofclimate change
Nidec’s initiatives

2021

2025

2020s~

2030 (Fiscal Year)

Social trends

Progress of decarbonization
and an aging population
with a lower birthrate
Nidec’s initiatives

Growing into a global comprehensive motor
manufacturer through M&As

Nidec established Nidec Research and Development Center, Japan in 2014
and Nidec Center for Industrial Science in 2015 to promote basic researchon motors and realize technological innovation in manufacturing.
After reaching a record high of approximately 650 million units in 2010,global shipments of HDDs declined around 60% to 260 million units in
2020. Against the background of decreased demand for HDD motors,
Nidec aimed to shift its growth focus to the automotive and the appliance,
commercial and industrial businesses by actively conducting M&A withcompanies that have strengths in these fields. As a result of the success inthis transformation of the business portfolio, in FY2017, sales of theappliance, commercial and industrial products business exceeded thoseof the precision small motor business, which had been Nidec’s corebusiness since its founding. Nidec has thus grown into a comprehensive
motor manufacturer offering a wide variety of motors ranging frommicro-size to large, which are used in various fields.
Looking ahead to the decarbonization trend, Nidec developed an EV
traction motor system called E-Axle and launched its mass production
in 2019.

Becoming a growth company
that can respond dynamicallyto environmental changes
Nidec is striving to provide solutions tocommon issues of humankind in five areas thatalign with global mega trends: “automotive
electrification,” “expansion of robot
applications,” “home appliances driven bybrushless DC motors,” “labor-saving in
agriculture and logistics,” and “spread ofnext-generation technology stemming from
5G communications.” Nidec is committed toactively engaging with the Sustainable
Development Goals (SDGs) and will contributeto building a sustainable and prosperous
society through various initiatives including the“2040 Carbon Neutrality Declaration.”

History of growth through M&A
Year

Country

2017

France

2017
2019
2019
2021
2022

United Kingdom
Brazil
Japan
Japan
Japan

Acquired companies/businesses

Specialized businesses/technologies/products

Motor and Electric Power Generation businesses ofEmerson Electric Co.
Drive business of Emerson Electric Co.
Compressor business of Whirlpool Corporation
Omron Automotive Electronics
Mitsubishi Heavy Industries Machine Tool
OKK

Industrial motors, drives, power generators
Industrial motors, drives, power generators
Refrigerator compressors
Automotive control technology
Gear machine tools
Machine tools (general-purpose machines)* Major companies are picked up and listed in this table.

In response to the shrinkage of the HDD market, Nidec
promoted diversification of its business by leveraging thetechnologies it had developed until then and through M&A in thefields of automotive, appliance, commercial and industrial
products, where further growth could be expected. In theautomotive business, pursuing synergies between Nidec’s
automotive motors and the technologies acquired through M&A,
Nidec started developing high value-added products for modules
and systems. For example, Nidec’s electric power steering (EPS)
motor and an electronic control unit (ECU) of Nidec Elesys, whichbecame a Nidec Group company in 2014, were integrated todevelop a compact, light power pack with minimum noise.
Moreover, for E-Axle, an EV traction motor system, Nidec Elesys
was in charge of the development of the inverter. By shiftingfrom production and sales of motors alone to production andsales of modules and systems, Nidec aimed at a transformationfrom a Tier 2 parts manufacturer to a Tier 1 manufacturer.
Without remaining dependent on HDD motors, whosemarket was shrinking, and by allocating resources tobusinesses for automotive, appliance, commercial andindustrial products, Nidec was able to overcome its crisis andcontinue to grow.

INTEGRATED REPORT 2022

2000

14

Business strategies that distinguish Nidec
from other companiesA

1 Pursuit of No.1 global

market share

The most important pillar of Nidec’s business strategy is“pursuit of No. 1 global market share.” This strategy
consists of three elements: 1 Be the first to market,
2 Technological development ahead of competitors, and3 Thorough pursuit of cost competitiveness. Specifically,
we make advance investments before the occurrence ofdemand for a product and capture a majority market
share when the demand occurs. After that, we drive
down costs to keep our competitors at bay and create asituation where we have an advantage over ourcompetitors. By using this strategy, Nidec has captured
the world’s top share for many products, including HDD
motors. Given the fact that oligopolies involving a few bigcompanies are found in many industries, the strategy of“pursuing No. 1 global market share” is perfectly rational.

Nidec’s DNA

A

Q. W hat is the core business strategy that has supported andwill continue to support Nidec’s growth journey from its
founding to the present, and from the present to the future?

2 Speedy management

Speed is Nidec’s greatest weapon. Make a decision and takeaction as quickly as possible—this 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 founding
years. It is no exaggeration to say that Nidec won this orderbecause it had accepted on the spot 3M’s extremely difficult
request to “reduce the size of the motor by 30%.” Forautomotive products, the lead time is usually three to four
years, but we continue to work at the same kind of speed aswhen we developed that motor for 3M. In the case of theE-Axle traction motor system for electric vehicles, for which
we received orders from the Guangzhou Automobile Group
in 2017, we commenced mass-production from zero—noplant, no facilities and no people—in only about one year.
Nidec clearly practices speedy management.

A

3 Risk taking“Take a risk when needed.” This is another pillar of
Nidec’s business strategy. Even though market
expansion is expected in the future, if you hesitate totake risks and your market entry is delayed, then you will
fall behind your competitors and will not be able to gain
the benefits of market expansion. In the case of HDD
motors, we made large-scale investments before fullfledged market expansion. We built production plants
and secured the capacity to mass produce HDD motors
on a large scale, ahead of our competitors. This led to us
gaining an overwhelming position in the market. For theelectric vehicle (EV) product business, we are making
advance investments without hesitation and working toestablish a production system for a traction motor
system for EVs, whose demand is expected to growrapidly in and after 2025.

Q. W
 hat are the characteristics of Nidec’s corporate

culture that sees adversity as an opportunity andtakes on challenges for continuous growth?
A 2 Corporate culture instilled
A 3 Corporate culture thatthroughout theviews adversity as anorganization
opportunity

Corporate culture that turns adversity into
opportunity for growthA

1 The existence of a corporate

NIDEC CORPORATION

culture that forms the basisof all business activities

15

Nidec has embraced the following three essential
attitudes since its founding:
1 “Do it now; do it without hesitation; do it until
completed”
Do what you can do immediately now, instead ofthinking you will do it tomorrow or sometime later,and do it until it’s completed.
2 “Passion, enthusiasm and tenacity”
Gushing passion, welling enthusiasm, and tenacitythat fights against difficulties—these are the threecore principles that form the foundation of everything
we do at Nidec.
3 “Work hard and smart”
Work hard and smart to produce output that cannot
be achieved just by working in an ordinary way.
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
business activities, and the corporate culture which
we should go back to when we face difficulties.

Nidec’s corporate culture is not just for the
management. In the WPR®* Project, which waslaunched in 2009, thousands of ideas has been
submitted from frontline workers on the
manufacturing floor for cost reduction and efficiency
improvement. These ideas have become a big driving
force for the progress of the project. Nidec’s growth is
supported by the corporate culture instilled
throughout the organization and “shop floor
capability” that has been accumulated over the years.
* 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, and when sales return to the original level, to double
profitability from the previous level.

“A problem is always accompanied by its solution.”
Nidec has achieved continuous growth by turning
obstacles into opportunities. When our major
manufacturing plant for HDD motors was submergedby the floods that occurred in Thailand in 2011, thanks
to local employees’ tireless efforts, the plant was able
to resume normal operations very quickly, thus
helping maintain its competitive advantage. Nidec
Mobility Corporation (former OMRON Automotive
Electronics Co., Ltd.), which joined the Nidec Group in
2019, has also been growing by transforming
adversity into opportunity. When sales fell by half inthe first quarter of FY2020 due to the suspension ofoperations of its customers’ plants, the company
streamlined its business operations in every aspect.
As a result, the company managed to maintain
operating profit at around the break-even point in
the fourth quarter of the same year, and during
the subsequent period that saw a recovery in sales,
the company witnessed a sharp increase inoperating profit.

Abundant management
resources that support thecompany’s business strategies
1. Numerous products with the largest
market share in the industry(Financial foundation)

2. Over 110,000 employees around theworld (Human resource foundation)

3. More than 200 production sitesaround the world (Production
foundation)

4. Strong experience and expertise in
M&As (Growth foundation)

Philosophy that lies at the rootof the corporate culture:“Pursuit of the world’s No. 1
position for continuous growth”
As exemplified by Nagamori’s remarks suchas “Anything but first is equivalent to lastplace,” and “A snake that doesn’t shed its
skin will die,” pursuit of the world’s No. 1
position for continuous growth has been
upheld since Nidec’s founding and is built
into the DNA of the company.
Only high-ranking companies have beenable to survive in many industries, andthere are some cases where a company’s
growth is impeded by its dependence on
existing businesses. Pursuit of the world’s
No. 1 position for continuous growth canbe said to be perfectly rational as abusiness strategy.

INTEGRATED REPORT 2022

Business Strategy

Nidec Corporation Profile

Nidec’s Competitive Advantages

16

Business Operations

Please refer to the URL below for detailed product information.
https://www.nidec.com/en/product/

Consolidated Net Sales by Product GroupElectronic & Optical Components

Consolidated Sales by Region*
OthersChina

63.3 billion yen
3.3%

512.8 billion yen
26.7%

Nidec Corporation Profile

Nidec offers a wide variety of motors ranging from precision small to super-large, as well as
applied 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 bycontinuing to deliver highest quality, indispensable, and widely desired products for thecommon good of all, through active M&As and organic growth.

Small Precision Motors

OthersOther countries
in Asia

243.8 billion yen
12.7%

Machinery
Shutters for digital
camerasOther small
precision motors

Consolidated net sales (for FY2021)

1,918.2 billion yen

United States

414.9 billion yen
21.6 %

HDD
motorsHigh precision reduction
gears for robots

Tactile devices

Japan
Consolidated net sales(for FY2021)

Blade pitch control motors

Europe341.0 billion yen
17.8%

Driving motors

1,918.2

342.3 billion yen
17.9%

billion yen* Based on the countries where consolidated Group companies selling
products to external customers are locatedElectric power
steering motors
New-type sensor fusion units

Air-conditioner motors

Appliance, and Commercial
and Industrial Products

E-Axle electric vehicle traction
motor system

Business Sites
Nidec Group operates globally with business sites in 43 countries/regions.

Automotive Products

FY2021NIDEC CORPORATION

Product group17

Net sales (Billions of Yen)

Operating profit (Billions of Yen)

Operating profit ratio (%)

Small precision motors

424.9

42.4

10.0

Automotive products

417.6

10.7

2.6

and industrial products

786.6

78.2

9.9

Appliance, and commercial

Machinery

215.6

41.2

19.1

Electronic & optical components

69.7

11.0

15.8

Others

3.7

0.3

8.1

1,918.2

170.4

8.9

Total

Number of groupcompanies

345

Number of employees

114,371

Number of countries/
regions with business sites

45(as of March 31, 2022)

INTEGRATED REPORT 2022

Household refrigerator compressors

18Value Creation Process

OUTCOMEOUTCOME

Financial capital

Financial capital

Consolidated total assets:
2,678,500 million yen
Shareholders’ equity ratio: 48.2%

E-Axle / Automotive
motorsReducer modules

Brushless DC motors

Intellectual capital
R&D expenses:
78,000 million yen

Fan motors, vapor chambers

Human capitalCompetitive advantage
2 : Business strategy

Consolidated number of
employees: 114,371
Global human resources
Diverse human resources
Employee training hours perperson (non-consolidated): 31 hrs

Social capital	Pursuit of No. 1 global
market share
Speedy management
Risk taking
M&A

P
 .15

Nearline HDD motors

Intellectual capital

Number of patents held*1 (as ofMarch 31, 2022): 10,631

Business activities
Automotive
Products

Small Precision
MotorsAppliance,
Commercial &Industrial
Products

Other
Products
P.73

Number of group companies:

345

Number of countries/regions withbusiness sites: 45
Joint research with universities,
research institutes and companies

Manufacturing capitalMore than 200 production bases
Capital investment:

98,600 million yen
Natural capital

Total energy input:

11,553,416 GJ

Water resources input:

7,326,000 m

Medium-Term Strategic Goal Vision 2025

P.29

Materiality
Environment

Products

Human
Corporate
Resources Supply Chain Governance

P.25

P.15

Corporate Philosophy

NIDEC CORPORATION

19

Five Big Waves

1 Carbon neutral society
3 Manpower saving

2 Power saving and post-COVID-19 pandemic

4 5G & Thermal solutions

Average length of service (nonconsolidated): 10.8 years
Managerial positions held by womenand female directors: 27.2%

Social capital

Participation in national projects ofindustry-government-academia
collaboration
NEDO*2 Green Innovation Fund*3
project “Development of nextgeneration motors”
Number of joint research and joint
development projects: 84

Manufacturing capital

Natural capital3

Policy, Mission, Vision, Value, Discipline and CodeHuman capital

Manufacturing high-quality products
Promoting cost reduction activities

Competitive advantage 1 : Corporate culture“Do it now; do it without hesitation; do it until completed,”passion, enthusiasm and tenacity, “Work hard and smart,”
viewing adversity as an opportunity

Net sales: 1,918,100 million yen
Operating profit:
170,400 million yen
Operating profit ratio: 8.9%
Profit attributable to owners of theparent: 135,800 million yen

P.05

CO2 emissions (Scope 1, Scope 2):

10% reduction

Reduction of CO2 emissions in
supply chain
Energy consumption: 4% reduction

IMPACT
IMPACT
Providing the E-Axle traction motor
system for electric vehicles

Contributing todecarbonization
Providing brushless DC motors forhome appliances

Contributing toenergy saving
Providing reducer modules forcooperative robots

Contributing tomeeting demand
for manpowersaving to cope withthe labor shortage
Providing heat management
products for electronic devices suchas smartphones and PCs

Contributing to
the solution ofissues relating to
the large amountof heat generated
by 5G devices
Providing key components (spindle
motors) for nearline HDDs for data
centers

Contributing toaddressing the
explosive increasein digital data

5 Digital data explosion

Social issues / Mega trends*1 Including those held by group companies in Japan and major overseas group companies in the appliance, commercial and industrial segment.
*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.

Nidec Corporation Profile

OUTPUTOUTPUTINTEGRATED REPORT 2022

INPUT
INPUT

Contributing to the world by providing
motors with the world’s best performance

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.

20Performance Highlights
Non-financial Information
Operating profit / Operating profit ratio(Millions of Yen)

(Millions of Yen)

2,400,000

200,000

1,918,174

1,800,000

1,459,039

1,534,800

1,475,436

170,374
165,903

Amount of final waste disposal (Solid only)*2(1,000 t-CO2)

(t)

20

5,600

16

129,22211.4

120,000

108,5588.8

1,200,000

600,000

4,285
4,200

3,365
12

8.9

9.9

7.1

3,582

8

40,000

2017

2018

2019

2020

2021

4

0

(FY)

2017

2018

2019

2020

2021

(FY)

(Millions of Yen)

180,000

280

3,000,000

130,834

135,759220.96232.40109,960

121,945186.49210

2,122,493

2,250,000

1,773,199
52.6

90,000140

58,459

2,295

2,287

44.6

1,500,000

Scope 2

593

577

73

2018

2019

2017

2018

2019

2020

2021

(FY)

2018

Total assets (left axis)

Earnings per share (EPS) (right axis)

Shareholders’ equity ratio (right axis)

2019

2020

0

(FY)

(persons)

100

120,000

107,554

108,906

90,000117,206

(FY)

50.6

112,551

49.1

80

48.2

60

27.2

40

28.2

20

30,000

0

2017

2018

2019

2020

2021

(FY)

Number of employees (consolidated) (left axis)
Female employee ratio (consolidated) (right axis)
Ratio of managerial and executive officer positions held by women (consolidated)(right axis)

00(persons)

300,000

100,000

10

80

10

118,588

94,99461,65360,000–100,000–113,915–200,000–160,844 –143,464

40,000–112,597

3.8

5.1
4.3

4.2

61.4

61.3

56.5

60

4.1

2018

Cash flow from operating activities
Free cash flow

2019

2020

2021

Cash flow from investing activities

(FY)

0

2019

2020

2021

R&D expenses (left axis)
R&D expenses to net sales 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.
*2 Target sites: 86 companies*3 Categories included (defined by the GHG Protocol): Categories 1 to 8, 13 to 15
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 ).

25

48

8

21

38

34

17

2017

2018

2019

2020

2

8

9
8

8

2

2

2021

25

(FY)

0

(%)

9

100

5
5
55.6

6

4

2018

50

7

80

55.6
60

40

2

2017

75

41

9

4

22.2

20

2

11.1

0

2017

–311,513
2017

(%)

100

100

Number of directors

60.9

64.5

6

20,000–300,000–400,000–100,568

55,4388

67,28062,912–17,603

9,389

78,63080,000078,015(FY)

Number of employees who took childcare leave (non-consolidated) (left axis)
Male
Female‌Percentage of employees who returned from childcare leave (non-consolidated)(right axis)(%)

219,156

90.0

22
1

25

(%)

Acquisition rate of annual paid leave (non-consolidated)

89.3

40
2

(Millions of Yen)

168,049

2021

20

R&D expenses / R&D expenses to net sales ratio

170,233

2020

68(Millions of Yen)

175,568

2019

75

50

0

2018

96.0

97.8

114,371

50

2021

2017

Number of employees who took childcare leave (nonconsolidated) / Percentage of employees who returned
from childcare leave (non-consolidated)

Cash flow from operating activities / Cash flow frominvesting activities / Free cash flow

100,000

NIDEC CORPORATION

2017

2021

(%)

25

Profit attributable to owners of the parent (left axis)

200,000

21

0

2020

100

48.2

750,000

0

57

60(persons)

25.9

0

511

Scope 3*3

60,0007062150,000

75

48.6

92

5,405

3,000

(%)

2,256,024

1,884,008
52.9

6,000

1,906

100

99.37

45,000

4,236

Number of employees (consolidated) / Female employee
ratio (consolidated*4) / Ratio of managerial and director
positions*5 held by women (consolidated*4)

2,678,483

208.19135,000

2,700

2017

Scope 1

Total assets / Shareholders’ equity ratio
(Yen)

2,859

457

0

Operating profit (left axis)(Millions of Yen)

2,934

1,400

0

Operating profit ratio (right axis)

Profit attributable to owners of the parent /Earnings per share (EPS)*1

8,947

8,052

9,000

612
0

10,180
9,636

2,800

80,00012,0004,749

159,970

160,000

1,618,064

Greenhouse gas (GHG) emissions*2
(%)

(FY)

0

0

2017

2018

2019

2020

2021

(FY)

25.0

25.0

22.2

22.2

40

20

0.0

0.0

2018

2019

2020

2021

(FY) 0

Number of directors (left axis)
Outside directors
Outside director ratio (right axis)

Female director ratio (right axis)*4 Calculation of consolidated data began in FY2019. In FY2021, 87.7% of employees of consolidated Group companies were surveyed.
*5 Managerial positions of section chief level or higher, and officers. Outside directors are included.
Section chief level: Employees who fit the description (1) or (2) below, or those in equivalent positions.
(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
to the relevant subordinates(2) The head of an organization with two or more subsections, or 10 or more members

INTEGRATED REPORT 2022

Net sales

Nidec Corporation Profile

Financial Information

22

Nidec’s Materiality
Results of questionnaire survey of investors
As a result of conducting a questionnaire survey targeting institutional investors in Japan, Asia,
Europe, and the U.S. as part of the materiality identification process, we received the following
opinions in addition to a quantitative evaluation for each candidate item. These opinions were

Steps to identify materiality (material issues) to be prioritized
E
ST

P

1

Understanding and organizing material issues

referred to when identifying materiality.

Examples of survey responses from investors
I believe that items that reflect the Creating Shared Value (CSV) perspective aimed at improving
corporate value through the resolution of environmental and social issues and items that are
attracting worldwide attention are the most important.

Based on the Global Reporting Initiative (GRI) Standards, the Sustainability AccountingStandards Board (SASB) Standards, the items on which ESG evaluation institutions place
importance, social issues, and our business environment, we have organized the items

I place great importance on enhancing corporate governance, and in particular, I consider it
essential to introduce a succession plan for top management and appoint outside directors withmanagement experience.

that we consider important in terms of both risks and opportunities in our business andhave selected 44 candidate items for materiality (material issues) to be prioritized.

E
ST

P

2

I believe that the most important issues for a company like Nidec to tackle are climate change,
fair remuneration for employees, support for diversity, and the creation of a workplace that
respects work-life balance.

Evaluating material issues from the perspective of stakeholders

I hope that Nidec will continue to communicate with investors after further promoting thedissemination of sustainability knowledge to its IR team.

For the 44 candidate items for material issues, we conducted a questionnaire survey
targeting institutional investors in Japan, Asia, Europe, and the U.S. We asked investors

Nidec manufactures many products that provide solutions helpful in improving energy
efficiency and reducing carbon emissions. To be a complete solution provider, Nidec needs to
set a reduction target for GHG emissions from its business operations and work towardachieving the target.

who hold many shares of our company and investors who have experience in ESG
engagement to evaluate the importance of each candidate item.

E
ST

P

3

Evaluating material issues from the perspective of our company
We conducted a similar questionnaire survey of Nidec’s directors, executive officers, andoverseas management officers.

Nidec Corporation Profile

We have identified material issues (materiality) that we should prioritize to fulfill Nidec’s mission of“contributing to the Earth by producing the highest quality motors in the world” in the medium tolong term and to continue to expand our corporate value, through the following process.

Identification of Materiality

Nidec’s materiality
Environment

High

Contribute to environmental
sustainability
Products

Based on the results obtained in Steps 2 and 3, the management selected the material
NIDEC CORPORATION

issues to be prioritized in terms of importance for both stakeholders and Nidec after

23

Human resources
Retain and develop diverse talent
Supply chain
Build an internationallycompetitive supply chain tosolve social issues

repeated discussions. The extracted issues to be prioritized are classified into five

Corporate governancemateriality categories and 15 themes after the deliberation of the Board of Directors.
High

Importance for Nidec

Create a solid governancesystemPlease see the next page for details.

INTEGRATED REPORT 2022

P

4

Identifying material issues after evaluating their validity at theManagement Committee and the Board of Directors’ meeting

Importance for stakeholders

E
ST

Provide products and services
adapted to social change24

Nidec’s Materiality

Materiality

Theme to be addressed
Realize a carbon-free society

Contribute to environmental
sustainability

Environment

Manage waste and hazardous waste
Handle water risks

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 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, and work on them to enhance the sustainability of ourbusiness. We may change the materiality issues, action themes and KPIs taking into
consideration their validity according to the business environment in the future.

Nidec Corporation Profile

Materiality Initiatives

Pursue product safety and quality

Products

Respond to changes in thetechnological environment and theindustrial structure

Phase1
Materiality
1

Protect and utilize intellectual
properties

Contribute toenvironmental
sustainability(April 2021–March 2026)
Theme to be addressed

Sub-theme

KPI (FY2025)

Progress in FY2021

Realize a carbon-free society

Contribute todecarbonization
through products

Reduce CO2 emissions byintroducing the EV traction motor
system E-Axle: Cumulative total
from FY2020 to FY2025:
11,700,000 t-CO2

Cumulative total sales of E-Axle
exceeded 370,000 units.
Accordingly, reduced 155,000 tonsof CO2 during FY2021.

P.43

Reduce CO2 emissions byintroducing electric power
steering (EPS) motors:
Cumulative total from FY2020 toFY2025: 26,261,000 t-CO2

Maintain and foster globallycompetitive human resources
Reduce GHGs
emissions
attributable tobusiness activities

Promote diversity

Retain and develop
diverse talent

Human Resources

Promote occupational safety andhealth, and health-oriented business
management
Respect human rights and follow
proper labor practices

Annually disclose a climatechange scenario in line with the
Task Force on Climate-Related
Financial Disclosures (TCFD)
recommendations
2

Retain and develop
diverse talent

Respect human rights andfollow proper labor practices

Clarify human rights policies forworkers including those in the
supply chain, and spread themamong employees

Promoted management of working
hours of employees to properly
report to and cooperate with
relevant parties. For overtime
work, we informed all employeesthat communication between
managers and subordinates isnecessary.

Board ofDirectors

Continue to have the effectivenessof the Board of Directors
evaluated by a third party

Introduced an evaluation system bya third party (external law firm).
Continued to achieve the target for
the ratio of female outside directors
and female directors in the Board of
Directors.

Supply Chain

Sustainable procurement considering
environmental and social aspects
3

Create a solid
governance system

Build a fair, transparent andhighly effective governancesystemAlways maintain the ratio ofoutside directors in the Board of
Directors at 50% or more, and theratio of female directors at 20%
or moreP.54

NIDEC CORPORATION

Build a fair, transparent and highly
effective governance system

25

Corporate
Governance

Create a solid
governance system

Follow thorough compliance with laws
and regulations
Build a risk management system
Promote information security
measures

The ratio of renewable energy
introduction in FY2021 reached10.5%. Preparations to announce
agreement with the TCFD
recommendations are under way.

Respect humanrightsP.52

Build an internationallycompetitive supply chain tosolve social issues

By FY2025, increase theintroduction ratio of renewableenergy to 40% on a consolidated
basis

Nominating
Committee /Remuneration
Committee

Increase transparency andfairness in the retirement anddismissal process of directors
Improve the effectiveness of theRemuneration Committee andensure the objectivity andtransparency of remuneration
decisions for directors

Improved the remuneration systemfor directors. Regarding
remuneration of directors in
FY2022, the Remuneration
Committee held discussions andreported the result to the Board of
Directors.

INTEGRATED REPORT 2022

Provide products and services
adapted to social change

26

Nidec’s Materiality

Materiality
1

Phase3(November 2021–March 2026)
Theme to be addressed
Pursue product safety andquality

Sub-theme

KPI (FY2025)

Progress in FY2021—

Create a database for chemical
substances contained in products tomake it easier for the development
department to determine the choice ofmaterials, and shift to an environmentoriented development system

Completed construction of a database formaterial selection in the Small Precision
Motor & Solutions Business Unit. A global
quality management system started
working in the Automotive Motor &Electronic Control Business Unit.

P.46

Implement quality management
reforms in the automotive-related
business, and establish an overall
quality control organization and system
by FY2025

2

Provideproducts andservices
adapted tosocial change

4

Respond to changes in thetechnological environment
and the industrial structure—Continuously launch new products thatlead the Five Big Waves to resolve social
issuesContinue to pursue the high efficiency
and miniaturization of motors that
contribute to energy and resourcesavingProtect and utilize intellectual
properties
P.47—

Promote occupational safety
and health, and healthoriented business
management

—

P.51

P.63

Reduce the volume of waste generated
in intensity per unit sales by at least 3%
from the level of FY2022(Progress report starts from FY2022)

Handle water risks—

Fully complete water risk assessments
at all production sites(Progress report starts from FY2022)

Maintain and foster globallycompetitive humanresources—

Develop and train global leaders:Identify overseas local personnel to be
candidates for executives in FY2022(Progress report starts from FY2022)

Promoted quantification of the amount ofenvironmental contribution. Also reviewed
the R&D domains in the productdevelopment roadmap.

Ensure a safe and comfortable work
environment

Checked safety activities at six production
sites where the lost-time injury frequency
exceeded the average BU rate. Also,
carried out a remote safety check at 26
sites.

—

Achieve the targets below related to
women’s empowerment (nonconsolidated) in FY2022:
Ratio of female directors*: 10% or higher(Progress report starts from FY2022)* Executive officer or higher position,
including outside directors

Retain anddevelopdiverse talent–	All managerial positions held by women:
8% or higher–	Ratio of female candidates for
managerial positions*: 15% or higher* Referring to female employees in positions
immediately prior to managerial positions

Recruit non-Japanese directors
Respect human rights andfollow proper labor practices
P.52

3

4

Visualized high-risk group companies andimplemented prevention measures in
consultation with management of suchcompanies and promoted other efforts to
reduce risks.

Progress in FY2021

Start training of executives, including
overseas personnel, from FY2023

P.50

Promoted patent application andacquisition for mainly products related to
the Five Big Waves. For existing
businesses, promoted transformation of
our IP portfolio.

Expand the legal affairs and compliancesystem to all Group companies startingfrom Nidec Corporation and theregional management companies(China, the U.S. and Europe)

KPI (FY2025)—
P.45

Promote diversity

Receive certification as a White 500
Company (in the large enterprise
category) under the 2023 CertifiedHealth & Productivity Management
Outstanding Organizations Recognition
Program—

Sub-theme

P.49

Improve the Lost-time injury
frequency rate

Follow thorough compliancewith laws and regulations

Theme to be addressed
Manage waste andhazardous waste

P.45
2Transform our IP portfolio to one that
responds to social and businesschanges, including decarbonization andpower and manpower saving, and use
the new IP portfolio

Reduce the number of serious
accidents (those resulting in death orpermanent disability) to zero

Retain anddevelop diverse
talent5

Contribute toenvironmental
sustainability

Conduct assessment of all newly
developed products and all products
during the manufacturing process to
reduce product safety risks

P.47

3

Materiality
1(April 2022–March 2026)

Nidec Corporation Profile

Phase2

Build aninternationallycompetitive
supply chain tosolve social
issuesCreate a solid
governancesystemSustainable procurement
considering environmental
and social aspects

Followproper labor
practicesManage working hours of employees,
including those in managerial positions,from the perspective of occupationalsafetyReduce average overtime hours by
improving productivity(Progress report starts from FY2022)—

Conduct human rights due diligence on
major suppliers:
Implementation rate for high-risk
suppliers by 2025: 100%

(Progress report starts from FY2022)

Management
andenforcementof internal
control

Based on the assumption of 5 trillion
yen for sales volume, enhance audit
resources in both quality and quantity(Progress report starts from FY2022)

P.53

Build a fair, transparent andhighly effective governancesystemP.54

Identify serious non-compliance risks
and take priority measures
Provide compliance education to all
employees once a year—

Build a risk management
systemP.65

Reduce the impact of the risks to beaddressed in priority on our business
Manage the progress of reducing suchimpact and the residual risks

Create a solid
governancesystem

NIDEC CORPORATION

727

All risks disclosed on the securities
reports are evaluated by thedepartment in charge, and the risks to
be addressed in priority are identified

Promote information security
measures
P.66—

Reduce the number of serious
information security incidents to zero

Reviewed the system to promote risks
management activities, and established aframework in which risk surveys are
conducted on each organizational level,such as the operation site level, business
unit level, and corporate level, and thesurvey results are mutually utilized.
Introduced a function to detect intrusion ofransomware and other malicious programs
and separated networks within sites.
Formulated an emergency manual andconducted training based thereon.
For important technical information,
introduced a dedicated delivering/receiving
system that allows downloading of suchinformation only with approval of theperson in charge and records all theoperations on it. Also, in accordance with
ISO/SAE 21434, established processes toaddress vulnerabilities in stages fromdesign, production to after shipment toreach product guarantee.

INTEGRATED REPORT 2022

628

Overview of the Medium-Term Strategic Goal

Becoming a global company
that continues to grow for the

The new medium-term strategic goal Vision 2025 is a milestone for achieving consolidated net salesof 10 trillion yen by FY2030. In Vision 2025, we plan to increase consolidated net sales to two trillion
yen by FY2022 and to four trillion yen by FY2025. We anticipate an increase in consolidated net sales
through new M&A deals (by approximately one trillion yen) in addition to organic growth centeredon growth fields in existing businesses.

2030

Vision 2025

2025

Consolidated net sales:

Consolidated net sales:22 Incorporation of the ROIC target: In Vision 2020, ROE (returnon equity) was used as a management index. In Vision 2025,
an ROIC (return on invested capital) of over 15% has been set
as the final target.
3 Setting of ESG goals: ESG-related items are incorporated as
new goals. Initiatives to achieve carbon neutrality andstrengthen governance have been expressly adopted as
ESG goals.

1

Commitment to Profitable Small Precision Motor Department Growth

To achieve consolidated net sales of four trillion yen (including one
trillion yen expected to be gained through new M&A deals) by
FY2025, we are required to attain a high growth rate. We arecommitted not only to increasing sales but also to achieving
profitable growth. Accordingly, we have adopted ROIC (return on
invested capital) as a management index in Vision 2025 instead of
ROE (return on equity) in Vision 2020, and have set the ROIC target
at 10% or more in FY2022 and 15% or more in FY2025.
For existing businesses, we will seek growth opportunities throughmanagement in a business and geographic scope (visualizing business
opportunities by creating a matrix of products by business and region),while pursuing optimization of capital efficiency by using ROIC as theevaluation axis. The main focus of new M&A deals is to complement
our technologies and commercial distribution services required for our
strategy to succeed. We place an emphasis on M&A deals that not only
lead to an increase in sales but also have a synergistic effect with ourmanagement strategy and eventually contribute to improving themanagement indicators of the entire company.

Tackle both growth strategy (organic growth + M&A) and enhancement of profitability on capital

11.6

10.3
8.5

2015
Sales (trillion yen)

2016

1.46
2017

1.48
2018

Operating profit ratio (%)

5.0

1.53
2019

700 billion to 1 trillion yen	Target for consolidated
operating profit ratio:
over15%

2020

Productivity improvement

ROIC (return on invested capital):

ROIC (return on invested capital):%over

4 trillion yen

To

10%

(assuming shareholders’ equity ratio of 60%)

profit per employee

15

and No. 1 product2 Promote ESG management centered on carbon neutrality
3 Strengthen the unified organization of the Nidec Group and its governance

Framework for the New Medium-Term Strategic Goal

2

Consolidated net sales for FY2020 were 1.6 trillion yen. To achieve
the consolidated sales target of four trillion yen by FY2025(including one trillion yen expected to be gained through new M&A
deals), we will actively shift our focus to growth businesses.
In the automotive department, we have secured orders for 4.0
million units in the E-Axle business, whose market is expected to
expand significantly in the future, and we expect sales to increaseby several hundred billion yen by FY2025. In addition, there aremany product groups, such as electric power steering (EPS) motors,
whose annual sales growth rate can be expected to exceed 10% on
an order basis. The automotive business is expected to have a highsales growth rate as a whole.

Business Portfolio Management

In the small precision motor department, we cannot expect
significant sales growth for HDD motors, which have been thedriving force behind our business performance for many years.
We will shift management resources to the mobility field, such as
motors for small EVs, for which business opportunities are
expected to expand due to automotive electrification, and motors
for electric two-wheeled vehicles. Thus, we hope that theseproducts in the mobility field will contribute to sales growth
together with heat management systems, which is anothergrowth field.

Achieve high growth with aggressive investment in key growth areas
FY2025 Consolidated net sales:

trillion yen

4,000 billion yen (target)

M&A

13,00013,000

FY2020 Consolidated net sales:

2.00

2022

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.

3.00
trillion yen Organic growth2025

double sales and

To be a top-rated ESG company
1 Address social issues with the accumulated skills of creating the world’s first18%

 stablishment of five regional HQ
Emanagement units

7.8

1.62

Productivity improvement
To increase sales and%profit per employee byoverTarget for ROE (return on equity):

overTarget for consolidated net sales:

30

Sales target for Automotive:

15.0%*
15.0%

10.0

7.1

8.7

1.20

9.9

8.8

7.4

1.18

4

11.4

10.0

(including sales attributable to
new M&A of approx. 500 billion yen)

Vision 2025

Target for consolidated net sales:

2 trillion yen

2 trillion yen

1 Incorporation of productivity improvement to the goal: We aim
to increase sales and operating profit per employee by 30% by
FY2022 and double them by FY2025.

FY2023 to FY2025

Vision 2020 to 25

Target for consolidated net sales:

Framework for the New Medium-Term Strategic Goal

NIDEC CORPORATION

FY2021 to FY2022

Vision 2020

Consolidated net sales in FY2020 were 1,618.1 billion yen, andwe failed to reach the consolidated sales target of two trillion
yen, which we aimed to achieve in the medium-term strategic
goal Vision 2020 covering the period FY2015 to FY2020.
In Vision 2025, we aim to achieve consolidated net sales of four
trillion yen by FY2025 after attaining consolidated net sales of
two trillion yen, which was the target value in Vision 2020, by
FY2022. The features of Vision 2025 are listed on the right.

trillion yen (target)

trillion yen (target)

FY2015 to FY2020

Review of Vision 2020 and Road to Vision 2025

10

Try again to accomplish sales of 2 trillion yen by FY2022

trillion yen

2021

29

4

Consolidated net sales:

Management Strategy

2022

100 years and beyond

1,618.1 billion yen

8,000

6,016
4,436

3,581

6,000
2,148

(FY)
Small Precision
MotorsAutomotive
Products

Appliances,
Commercial
and Industrial
Products

Additional amountthrough new M&A(challenging target)
Consolidated net sales:
Total of 1,000 billion yen(target)Other ProductGroups

600

1,000

1,000

400

billion yen
Organic growth(Target)billion yen
Organic growth(Target)billion yen
Organic growth(Target)billion yen
Organic growth(Target)Small Precision
MotorsAutomotive
Products

Appliances,
Commercial
and Industrial
Products

Other ProductGroupsINTEGRATED REPORT 2022

Business model transformation to become acompany with consolidated net sales of over
10 trillion yen

next

30

Overview of the Medium-Term Strategic Goal

3

Framework for the New Medium-Term Strategic Goal

Measures for Boosting Top-Line Growth

possible to access higher value-added markets as the productintegration level increases from the provision of motors alone(device alone) to the provision of power packs for electric power
steering (EPS) systems and electric oil pump modules (module),
E-Axles (system), and EV platforms (solution).
By advancing this transition process in each businessdepartment, we will secure the growth opportunities necessary
to achieve consolidated net sales of 10 trillion yen by FY2030.

To achieve consolidated net sales of four trillion yen by FY2025
and consolidated net sales of 10 trillion yen by FY2030, it will benecessary to shift to a business field with a larger market size.
By not only shifting our business to growth fields but also
providing products with a high level of integration forcustomers, we will be able to access larger markets andincrease product unit prices.
Taking the automotive business as an example, it will be

Implementation of activities for ROIC improvement

Expansion of expected market size
Examples of auto businesses
EV platform

e
har
et s
ark ies of
m
ts)
om
bal
glo
con f parec’s ough e tion o
d
i
uc
hr
eN
eas ction t e prodncr
1. I t redu -housnsLiquid Crystal(Co and i
Display (LCD)lescapanel handling

EV traction motor system
E-AxleElectric oilpump module

Tens ofbillions ofyen

AC servo
motor
Motor

Reducer

Device alone

robot

Ultra-flat geared
actuatorize
et s
ark usmscio
andexp ce-con ket)
nd
i
r
a
r
a
p
s
t
rke tite of new mmaaew e appe reate
n
e
t
h
c
rea late t s and
C
.
2
er
mu
(Sti nsumcoLogistics solution
Guideless Autonomous
Guided Vehicle (AGV)

SystemFramework for the New Medium-Term Strategic Goal

4

The environment surrounding the EV industry is changing day byday, and major changes are occurring such as the promotion of
automotive electrification due to the tightening of environmental
regulations around the world, entry into the EV market fromdifferent industries, and the emergence of fabless manufacturers.
We anticipate an explosive increase in the sales of EV traction
motors after 2025 mainly due to a decline in EV prices caused
by a decrease in battery prices. We have already secured
forecasted orders for 4 million E-Axle units for FY2025, and we
expect their sales to grow to 10 million units in FY2030.

Automotive Motor &Electronic Control Business
Unit ROIC

Solution

Basic Policy for EV Traction Motors

At present, most E-Axles are manufactured in-house by auto
manufacturers. However, as the number of EVs increases, there
will be a shift from in-house manufacturing to outsourcing.
To expand the market for E-Axles, we plan to invest a total of
one trillion yen (in CAPEX and M&A) on a consolidated basis by
FY2025, with the aim of improving their price competitivenessand manufacturing system. We are also considering
establishing a joint venture with the Hon Hai Group in light of
the fact that fabless manufacturing of EVs is promoted mainly
by new entry manufacturers.

NIDEC CORPORATION

31

6Cash Conversion Cycle (CCC)
Automated production rate, etc.
Ratio of cost of goods soldIn-house parts production rate
Factory production load rate
Sales per employee, etc.
Cash Conversion Cycle (CCC)
Automated production rate, etc.
Ratio of cost of goods soldIn-house parts production rate
Factory production load rate
Sales per employee, etc.
Cash Conversion Cycle (CCC)
Automated production rate, etc.

Pathways to Carbon Neutrality

increase in sales. To address this, we plan to reduce net CO2
emissions to zero by FY2040 (Scope 1 and 2) by 1 promoting
energy saving, 2 shifting to renewable energy sources in theenergy mix, and 3 investing in carbon offset projects.
The percentage of our total energy consumption sourced fromrenewables is planned to be 40% by FY2025 and 80% by 2030.

Going carbon neutral by FY2040 (Scope 1 and 2)
Supply chain (Scope 3) action plans to be laid out by FY2025
Changes in CO2 emissions due to the introduction of renewable electricity

All new vehicles sold in China will be eco-friendly
in 2035. The EU proposes an effective ban on new
ICE vehicles, such as gasoline vehicles including
hybrids, from 2035.

FY2030:

FY2025:CO2 emissions

10 million units(10,000 tons)

4.0 million units

100

2035

2045
Growth

2050

(FY)

180

Renewable shift &energy savings(Renewables: 40%)

FY2040Carbon Neutrality

50
2025

Avoidable CO2 emissions through the use of renewable electricity
CO2 emissions from the direct use of fossil fuels

Renewables-led CO2
emission reductions

Renewable shift &energy savings(Renewables: 80%)

Consolidated sales target:
4 trillion yen

2020

Introduction

Optimize invested capital

In Vision 2025, we have newly declared the goal of achievingcarbon neutrality. Our declaration consists of two goals:
1 achieving carbon neutrality for business activities (Scope 1
and 2) by FY2040 and 2 laying out a plan to reduce CO2
emissions in the supply chain (Scope 3) by FY2025.
Energy consumption is expected to rise in proportion to an

Key action

2025

Increase profitability

Ratio of cost of goods soldIn-house parts production rate
Factory production load rate
Sales per employee, etc.

Consolidated sales target:
10 trillion yen

Preparing for mass production
for rapid growth of the market

2020

Optimize invested capital

Framework for the New Medium-Term Strategic Goal

Turning point

Estimating that the cost of
EV power trains will become
lower than that of ICEs

Increase profitability

Appliance, Commercial &Industrial Motor Business
Unit ROIC

Expansion ofbusiness areas

Lead the EV era as a company that triggers creative disruption andgoes beyond the automobile industry tradition
Nidec’s E-Axle
shipment forecast

Optimize invested capital

Wafer/
LCD transfer
robot

Examples of robotic businesses

ModuleSmall Precision Motor &Solutions Business Unit
ROIC

ROIC

Geared servo motor

Increase profitability

2030

0

2040

(FY)

CO2 emissions from purchased fossil-based electricity

Energy efficiency boost
Shift to low-carbon fuels
Carbon offset
investment to reduce
CO2 emissions

INTEGRATED REPORT 2022

EPS
powerpack

improvement activities based on the characteristics of eachdepartment.
To improve ROIC, it is necessary to increase profitability andoptimize invested capital. Accordingly, we will take concretemeasures for each business department. Specifically, we will
improve the cost to sales ratio and the factory utilization ratio toincrease profitability, and shorten the CCC (cash conversion
cycle) and promote production automation to optimize
invested capital.

Set the ROIC target in line with each business unit’s strategy andconduct improvement activities

Diagram of business model shift in the auto and robotic areas

Hundredsof billionsof yenROIC Management

In Vision 2025, ROIC (return on invested capital) has been
included as a new management index, and specific activities toimprove ROIC will be implemented based on numerical targets
in line with the strategy of each business department.
For instance, since the small precision motor department andthe automotive department have different customer bases anddifferent business lead times, there is a difference in themeasures required to improve ROIC and in the timeline until themeasures produce results. It is important to implement

Aim to change business models and business areas to accomplish
consolidated net sales of 10 trillion yen

Trillions ofyen

5Management Strategy

Framework for the New Medium-Term Strategic Goal

32

StageSenior Vice President
Deputy CTO (Chief Technology Officer)
Head of Nidec Semiconductor Solutions Center,
General Manager of Business Planning andStrategy Department of Nidec Semiconductor
Solutions Center

I joined Nidec in February 2022. I was appointed Senior Vice President in July 2022,
serving also as Deputy Chief Technology Officer and the Head of Nidec Semiconductor
Solutions Center. Here, I would like to explain about Nidec’s semiconductor strategy.
Therefore, securing semiconductors stably in the medium
to long run is a key challenge that we must overcome toachieve the target of consolidated net sales of 10 trillion
yen in FY2030.
Under these circumstances, Nidec established the Nidec
Semiconductor Solutions Center in May 2022. The purposeof the Center is to build strategic partnerships with
suppliers and establish a sustainable semiconductor
supply chain capable of responding to any risk, thereby
ensuring stable production and supply of our products.
The mission is to follow up on issues related to
semiconductors within the Group from all directions,
not limited to specific segments or products.
The specific actions planned in relation to thesemiconductor strategy are as follows.

STEP 2: Move toward global RFQ (Request for Quotation)

NIDEC CORPORATION

2023-2433

Become a comprehensive motor control solution provider (ecosystem)➡ Provide Intelligent Motor®* solutions!

We will shift the method of semiconductor procurement,
which is currently not consistent within the Nidec Group, toGroup centralized purchasing so as to maximize
economies of scale. We are promoting business expansion
with a clear vision and expecting high sales growth. We willremind our suppliers of these advantages in delivering
semiconductors to Nidec, and select the semiconductor
suppliers that will be our strategic partners. Receiving a lotof reaction from our suppliers upon the establishment of
the Semiconductor Solutions Center in May 2022, I thinkwe were able to make a step forward in selecting ourstrategic partners.

STEP2: Move toward global RFQ(Request for Quotation)
RFQ is a process in which, instead of purchasing the
products offered by semiconductor suppliers, we define
the specifications of the semiconductors that we need andselect the supplier that submits the best quote. With thisprocess, we aim to establish a stable supply system forsemiconductors. The flow of semiconductor procurement,
including issuing RFQs and receiving responses, andconcluding a long-term contract as a result of subsequent
negotiations, is a common practice for companies in
Europe and the U.S. with their semiconductor suppliers,
but I do not see this taking place in Japan. By carrying out
the RFQ process to build good relationships with suppliers,
we may reduce the time spent on price negotiations.
Also, as RFQ enables us to show a highly accurate demand
forecast to the semiconductor suppliers, which will lead to
reduction of investment burden on semiconductor

Content of RFQT echnical (technical requirements and specifications)Commercial (prices, quantity):
including LTA information

Issue RFQs to semiconductor
suppliers (multiple companies)<Work with expertise>

Production
line

Factory
Manufacturing
field
Ships

Communications
several times in
2-3 months
Provisional
contract

1 year for
development
1 year for
production

Airplanes

2024-25

Decide the semiconductor suppliers.
Have 2 or 3 companies compete, and theone that has completed development in
the shortest time will be the No. 1 supplier!

manufacturers, in other words the reduction ofsemiconductor costs on us and other benefits, I believe wecan establish a win-win relationship.

STEP3: Provide high value-added
solutions through synergies
between semiconductors
and motors
Once the stable procurement of semiconductors is
enabled, we can see the possibility of providing solutions
with Intelligent Motor®. Intelligent Motor® is a
microcomputer-embedded motor developed by Nidec,
which can be easily controlled via a wireless network andwhose information the user can obtain, such as thelocation, speed, and torque. This enables us to offer avariety of solutions to customers, which was not possible
with conventional products.
For example, DX has dramatically increased the cloudstorage capacity, but it is associated with the problem oflarge consumption of electricity. A solution to this problem
is decentralization by edge computing. Our Intelligent
Motor® is expected to make a significant contribution inthis field. Not limited to this example, the trend ofcomputing has been accelerating in a variety of fields,
including automobiles and appliances. I believe Intelligent
Motor® has great potential in expanding the solutions.
I myself feel the high expectations placed on
semiconductor solutions within the Nidec Group, which
gives me a great hope and a sense of mission. Under the
Nidec’s spirit of “Do it now; do it without hesitation; do it
until completed,” I will make my utmost efforts to fulfill mymission in promoting semiconductor solutions.

2026 and beyond
Formalcontract

Build a stable supply system
for semiconductors!

Electric power

End User

Equipment and devices
Intelligent
Motor®

Intelligent
Motor®

Water power

Energy fieldHomeappliances

Cars

Railway

Semiconductor suppliers
respond to (and negotiate on)
RFQs

Examine the RFQ responses
received.
Select semiconductor suppliersand decide whether or not to
accept development

Procure high value-added semiconductor components (development and production outsourcing)➡ Establish and implement RFQ scheme to secure semiconductor supply that matches Nidec products (QCD)

STEP 3: The world of Intelligent Motor® in the Nidec insight

2023

2024

STEP2

Transportation
fieldIntelligent
Motor®

Intelligent Motor®
Semiconductors

Intelligent
Motor®

PC

Offices and households

Semiconductor Solutions Center
Providing semiconductor solutions through introduction of Intelligent Motor®
* Intelligent Motor®
A motor developed by Nidec, equipped with a built-in microcomputer. In addition to being easily controllable via a wireless network, this motor can obtain various types of information
about the motor, including its position, speed, and torque.

INTEGRATED REPORT 2022

Today, whether semiconductors can be procured stably
significantly affects the production and sales of a company.
As greening and DX (digital transformation) will continue toadvance around the world, further growth is expected in
the amount of semiconductors used.
When its consolidated net sales reach 10 trillion yen,
Nidec will need to procure 1 trillion yen of semiconductors.
This is almost equivalent to the annual sales of a major
semiconductor manufacturer. Semiconductors arenecessary parts of all of our products, including our EV
traction motor system E-Axle. Regardless of the businesssegment or the product type, we cannot expand ourbusiness without stable procurement of semiconductors.

Secure stable procurement of existing semiconductor components (Group centralized purchasing)

STEP1: Centralized purchasing from
Nidec Group suppliers

Ryuji Omura

Establishing a sustainable
semiconductor supply chain

STEP1

STEP3

Executing the semiconductor
strategy necessary to achieve
the FY2030 target

Theme

Management Strategy

Technology Strategy

34

Human Resources Strategy

Vice President
In charge of managing Secretarial Office,Human Resources Department

I serve as Vice President in charge of the Human Resources Department. I would like tomainly explain how we should build a HR platform that will support our rapid growth.

Grow talent
To develop human resources who are capable of flexibly
adapting to a rapidly changing environment andcontinuing to grow, we are accelerating initiatives tosupport our employees in their autonomous careerdevelopment efforts. The first step is to support
employees’ thinking about their career. Interviews are held
between employees and their supervisors twice a year
where they can review their own experience and feelings
and think about the future direction of their career.
This gives every employee opportunities to think about
their career while encouraging the entire department toform an atmosphere that supports the career developmentof individuals. All of the information provided here is kept
under centralized control by the talent management

system. So it is possible to match the skills and desires ofindividuals with the personnel needs of the company andthereby achieve more effective personnel allocation.
The next step is to support their realizing their ideal
career. We have systems for in-house job posting and job
rotation. Nidec has introduced a job-based personnel
system. We encourage a job rotation in three to five years
especially for young employees, with the aim of having themexperience various jobs before deepening their professional
expertise. By making the most of the advantages of Nidec,
which has many positions with various global opportunities,
we will focus efforts on supporting our employees in theircareer development for their growth.
Meanwhile, at Nidec, a company led by its founder,
development of personnel for future top executives is an

Overall image of HR development and organizational development

NIDEC CORPORATION

Framework to support autonomous
career development

35

Framework to promote revitalizationof organizations

Active communication

Framework to expand
career

Career Plan Sheet

In-house job posting

A tool to help employees
autonomously think about
their career andtake action

Open recruitment for
in-house positions toachieve “right person inright position”

Organizational
performance survey

Through survey feedback,holding workshops foreach organization for its
revitalization

1-on-1

Systematic rotations

Visualize the situation of
the organization to help
improve its performance

Individual action plans

One-on-one interviews
between an employee andhis/her supervisor
focusing on the growth ofthe employee

A system to systematicallyallow employees toexperience multiple jobs
and expand theircareer range

Visualization of thesituation oforganizations

Measures to revitalizeorganizations
Workplace workshop

Selecting multiple
departments to implement
individual measures andhaving successful
examples shared

We consider the revitalization of organizations as anotherimportant task. As a new measure to improve and revitalizeorganizational performance, the organizational performance
survey has been conducted under the leadership of Human
Resources Department since FY2021. This is a questionnaire
survey designed to clarify the situation of each organization,
identify its problems, and help improve performance. Basedon the survey results, workplace workshops are held by eachorganizational unit, where employees discuss good points
and problems of their organization, as well as the specificactions taken for the problems as opportunities forfollow-up. Furthermore, for good examples of measurestaken after a workshop that led to revitalization of theorganization, we have a system to enable sharing of
successful experience across departments.

Personnel system
The job ranking system (job-based personnel system)
introduced in FY2021 is an important measure for achieving
the growth of Nidec over the medium to long run.
Before introducing the system, we interviewed directors
and department heads regarding nearly 700 positions
within Nidec they were in charge of. In the ranking system,
the degree of duties and responsibility of each position isquantified by job appraisal, and the grades are determinedbased on the degree of responsibility of the position.
So general managers may have different grades
depending on the responsibility of their position.
Compensation is also determined in the job-based
personnel system in view of the standards in externalmarket. This is expected to contribute to recruiting
talented human resources and preventing their outflow.
So far, the ranking and compensation systems have variedamong the Nidec Group companies. By expanding theapplication of the new system to our group companies,
smooth personnel relocation will be enabled. In-housedisclosure of job descriptions started in July 2022, which is
expected to be actively used to support employees
building their career plans.
In addition, in line with the introduction of the job-based
personnel system, an in-house job posting program started
in FY2021. This program allows recruitment of personnel
from within the Nidec Group. The positions and their job
descriptions, eligible applicants and other information aredisclosed to encourage voluntary personnel relocations.
Meanwhile, enabling flexible transfer of human resources

Creating a strong company/
organization

Right person in right position

Reasonably rewarding
treatment

Mobility of human resources,
strengthening of governanceRankingsystemResponsibility and duties
of jobs based on job ranks(grades) are clarified
throughout the Group to
enable smooth personnel
transfers in the job-based
personnel system.

Optimization of organizations,human resources, and treatment
Appraisal
systemTo ensure the merit/
performance-oriented basis,quarterly relative evaluation isconducted to realize reasonably
rewarding treatment.

Compensation
systemWhile controlling total personnel
expenses, individuals who leadthe organization with highmanagement and technologicalabilities are well-treated.

Management Strategy

Revitalizing organizations

Tomoko Hirata

Concept of personnel system reform

to and from overseas group companies or overseas sites isanother important task in human resources development
and recruitment. Starting in FY2022, two non-Japanese
executive officers have been appointed at the head office.
As personnel transfers across countries and regions are
expected to increase, it is necessary to build a personnel
system that enables smooth transfers.
As for the compensation level, we announced in FY2020 a
30% increase in compensation by FY2023, which should be
implemented in combination with the improvement inproductivity declared in Vision 2025. Aiming to be a highly
productive organization with “a capable few,” we will set a
compensation level competitive with other companies,
thereby promoting recruitment of excellent human resources.

Other systems
Regarding other systems, we have integrated theretirement benefit programs within the group. Nidec had
two types of retirement programs; defined benefit pension(DB) and defined contribution pension (DC). But they were
integrated into the defined contribution pension programin October 2021. We will apply a similar program for ourgroup companies, with the aim of facilitating smooth
personnel transfers within the group. We will also review
other systems as necessary with a view to establishing thebasis for the growth of the Nidec Group in the future.

Finally
In line with its 50th anniversary on July 23, 2023, Nidec
plans to change its company name in Japanese on April 1,
2023. All of our consolidated subsidiaries both inside andoutside Japan will also be renamed to names starting with
“Nidec,” which is our Group brand name. We will thus
advance the integrated global group management of
Nidec, which will soon celebrate its 50th anniversary.
Aiming to establish a platform to this end, we will makedaily efforts to advance our personnel-related measures.

INTEGRATED REPORT 2022

Focusing efforts on building a
HR platform to support
medium- to long-term growthurgent task. With the Human Resources Development
Committee established in FY2020, we have discussed theappropriateness of the candidates for successors to theGroup’s important positions, and formulated andimplemented the development plan. Starting from FY2021,
to develop and train individuals who could be candidates
for successors, we recruit talented individuals fromyounger generations and conduct training over the
medium- to long-run.

36

Akinobu Samura
Senior Vice President
Chief Financial Officer

I was appointed Chief Financial Officer (CFO) on May 1, 2022. I served as the CFO of
Mitsubishi Heavy Industries Machine Tool Co., Ltd. (currently Nidec Machine Tool
Corporation), which Nidec acquired in August 2021, and now I have been appointed as
Nidec’s CFO. I will cover the following three topics: 1. Nidec’s approach to financing,
2. Green bonds, and 3. Establishment of the Sustainability Committee.

Approach to financing
To achieve the consolidated net sales target of 10 trillion
yen by FY2030, Nidec has set a sales target of 4 trillion yen
in Vision 2025. Of this amount, 1 trillion yen is expected tobe achieved through new acquisitions. Therefore, it isanticipated that there will be demands for capital
investment associated with business growth and funds
associated with new acquisitions. Our approach to the
procurement of funds is based on thorough fundmanagement, primarily by shortening the cash conversion
cycle (CCC) within the Group and using funds fromoperating cash flow. Our policy for financing is to choose
the best way to raise funds while comprehensively
considering the required amount, financial situation,
our stock price and rating, the financial market
environment, and other factors.

In raising funds, our policy is to make the optimal choiceat the time of financing while taking the financial market
environment and our rating into consideration. Overseas
central banks, led by the U.S. Federal Reserve Board (FRB),
are shifting their course to raise interest rates and reduce
monetary easing. In light of these major changes in thefinancial market, we will raise funds for medium- to longterm growth while incorporating the perspective of asset
and liability management (ALM), such as cash flow
projections for each fiscal year and matching sales andprocurement currencies, as well as taking various factors
including the following into consideration: both growth andfinancial discipline, the balance between direct and indirect
financing, and the terms of procurement. Most recently,
Nidec newly issued yen-denominated bonds*1 in July 2022.
*1 Conditions of issuance: [3-year bonds] Amount: 30 billion yen, coupon rate: 0.250%;[10-year bonds] Amount: 20 billion yen, coupon rate: 0.549%

Status of green bond issuance

NIDEC CORPORATION

Brand

37

9th, 10th and 11th unsecured bonds(green bonds)

Brand	Euro-denominated unsecured straight bonds(green bonds) due 2026

Uses of funds

Capital investment and R&D expenses
related to the manufacturing of traction
motors for electric vehicles (EVs)Uses of funds

Capital investment and R&D expenses
related to the manufacturing of traction
motors for electric vehicles (EVs)Date of issue

November 28, 2019

Date of issue

March 30, 2021

Term

Term

3 years

5 years

7 years

5 years

Issue amount

50 billion yen

30 billion yen

20 billion yen

Issue amount

500 million euro

Annualinterest rate

0.020%

0.090%

0.150%

Annualinterest rate

0.046%

Sustainability Committee

To use for capital investment and R&D expenses related tothe manufacturing of traction motors for electric vehicles(EVs), we issued 100 billion of yen-denominated green
bonds in November 2019. Moreover, in March 2021, weissued 500 million of euro-denominated green bonds as
the first business company in Japan. The global green
bond market surpassed USD 500 billion in annual issuancein 2021 and is expected to continue to grow.
Nidec regards the issuance of green bonds as animportant means of raising funds to support its mission ofcontributing to the Earth by producing the highest quality
motors in the world. We will continue to raise funds invarious ways, including issuing green bonds in thedomestic and overseas financial markets.

We have set the promotion of ESG management as one ofour mid-term strategic targets. In FY2021, we launched the
ESG Materiality Steering Committee, which is mainlycomprised of executive officers, and built a system tomanage progress and verify the results monthly based on
KPIs. In addition, from the perspective of promoting
sustainability management that aims to realize a futurethat coexists and prospers with the environment andsociety, namely, the foundations of our business, we newly
established the Sustainability Committee within the Boardof Directors in August 2022, and the Committee launched
its activities in September. As stated in Supplementary
Principle 4-2*6 of the Corporate Governance Code revisedin June 2021, we are aware that promoting sustainability
management is also essential for us.
The Sustainability Committee is made up of five directors(including three outside directors) to fulfill the role ofmonitoring the ESG Materiality Steering Committee andreflecting the opinions of various stakeholders inmanagement. The Sustainability Committee is comprisedof diverse members with experience and expertise in suchareas as human resource development, legal affairs/
compliance, finance/accounting, international operations/
global business, environment/society, and governance/riskmanagement. Therefore, discussions from a wide range ofperspectives can be expected.

*2 For details of our green bonds, please see below.
https://www.nidec.com/en/sustainability/environment/greenbond/*3 For the annual sales volume of our manufactured traction motor system (E-Axle),
please see below.
https://www.nidec.com/en/sustainability/environment/greenbond/-/media/
www-nidec-com/sustainability/environment/greenbond/img/202206_JPY-Green
BondReporting_en.pdf*4 For the indicators related to environmental improvement effect, the reduced amountof CO2 emissions is calculated by taking the difference between the assumed amountof CO2 emitted by electric vehicles and that emitted by gasoline-powered vehicles.
*5 For the annual review by a third-party assessment organization, please see below.
https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/
spos/nidec-corporation-green-bonds-2019-and-2021-annual-review-(2022).pdf?sfvrsn=8b609e84_1*6 “The Board of Directors should formulate a basic policy for the company’ssustainability initiatives from the perspective of improving corporate value over the
medium-to-long term. In addition, in light of the importance of investing in humancapital and intellectual property, the Board of Directors should supervise theallocation of management resources, including those mentioned above, and theexecution of strategies related to business portfolios in an effective manner so that
resource allocation and strategy execution can contribute to the sustainable growthof the company.”

Image diagram

Investor Relations & CSR
Promotion Department:
Quarterly

Investor Relations & CSR
Promotion Department:Monthly

Sustainability Committee

ESG Materiality
Steering Committee

To discuss management issues
related to sustainability and work to
help Nidec achieve sustainablegrowth and increase corporate
value over the medium-to-long term

To implement materialityrelated initiatives and monitor
their progress

New

Board of Directors

1 Supervising theexecutive organization

2 Reflecting external

opinions inmanagement

Executive organization

INTEGRATED REPORT 2022

Promoting various measures toachieve the consolidated net sales
target of 10 trillion yen by FY2030

Green bonds

Management Strategy

Financial Strategy

38

Toward Achieving Sustainability

Establishment of the Sustainability Committee

Basic stance

In FY2022, we established the Sustainability Committee within the Board of Directors as ameeting body to manage and supervise the ESG Materiality Steering Committee.
The operation of the Sustainability Committee allows us to secure a longer-term andbroader perspective, identify current issues by working backwards from our ideal future
self, or, “a global company that continues to grow for the next 100 years and beyond,” andpromote initiatives. By doing so, we will enhance the sustainability of our management.

affording almost all officers an opportunity to report on
the progress and problems of their action themes on aphase-by-phase basis. Reports are given directly by theofficers in charge of each action theme. The matters
discussed and decided at the Committee meetings are
immediately reflected in the action plan.
*See page 25.

Contribute to environmental sustainability

Provide products and services adapted
to social change

Steering Committee
Owner: Hiroshi Kobe Representative Director,

NIDEC CORPORATION

President and Chief
Executive Officer

39

Executive member:
Akinobu Samura Senior Vice President
Participating members:
Management Committee
members and, in principle,
all executive officers

Secretariat(Investor Relations &CSR Promotion Department)

Officers in charge: Toshihiko Koseki First Senior Vice President
Eiji Miyamoto Vice President
Kazuya Hayafune Senior Vice President
Tetsuo Yamaguchi Executive Consultant

Retain and develop diverse talent
Officers in charge: Fumiaki Ushio Senior Vice President
Masahiro Hishida First Senior Vice President

Build an internationally competitive supply
chain to solve social issues
Officers in charge: Toshihiko Koseki First Senior Vice President

Create a solid governance system
Officers in charge: Fumiaki Ushio Senior Vice President
Maki Okajima Vice President
Tomonori Seta Vice President
Masahiro Hishida First Senior Vice President

Messages from Sustainability Committee members
Of the five directors who have become members of the Sustainability Committee, the three outside directors share
their aspirations.

 ealize a carbon-free societyR
Manage waste and hazardous waste
Handle water risks

 ontrol product safety and quality
CRespond to changes in the technological environment andthe industrial structureProtect and utilize intellectual properties

 aintain and foster globally competitive human resourcesMPromote diversity
Promote occupational safety and health, and health-oriented
business management
Respect human rights and follow proper labor practices

 ustainable procurement considering environmental andSsocial aspects

 uild a fair, transparent and highly effective
Bgovernance system
Follow thorough compliance with laws and regulations
Build a risk management system
Promote information security measures*1 As of October 2022
*2 The Vice Presidents of Nidec assume the roles and responsibilities of a managerial position generally known as the Executive Officer.

Takako Sakai, Chairperson

Many of Nidec’s products are environmentally friendly, featuring, for example, energysaving properties. In addition, many of Nidec’s business sites are actively introducing or
launching the use of renewable electricity. Put another way, Nidec’s business activities
themselves have mechanisms that lead to environmental conservation. In considerationof the influence that Nidec has, I am enthusiastic, as Chairperson, about playing animportant role in passing on the global environment to future generations. As the chairof the committee, I would like to create a path to improving corporate value whilevaluing the opinions of each committee member.

Outside Director

Organization of the ESG Materiality Steering Committee

Officers in charge: Akinobu Samura Senior Vice President
Kazuya Hayafune Senior Vice President
Kazutsugu Igarashi Senior Vice President

This committee is a new structure for Nidec to allow the Board of Directors to take ultimate responsibility for thesustainability of management. The five committee members are mainly composed of outside directors so that outside
opinions can be reflected in management decisions. The members of the Sustainability Committee monitor the activities ofthe executive organization (ESG Materiality Steering Committee), thereby advancing Nidec’s sustainability management.

Outside Director

Organization to promote materiality actions
The five materiality issues Nidec has identified areassociated with a total of 15 action themes, which areclassified into three phases according to the timing of thestart of action.* As a structure to check that each activity is
being conducted steadily and effectively, the ESG
Materiality Steering Committee is held periodically.
Placed directly under the Management Committee, theESG Materiality Steering Committee meets every month,

Significance of the Sustainability Committee

Materiality Initiatives

activities for each theme. For example, to check the
progress of the improvement activities on a regular basis,the ESG Materiality Steering Committee was organized.
We have also established a risk management systemcovering both financial and nonfinancial domains so as topromptly address risks that may arise in the future.
Moreover, the CSR Charter, which was established in 2008
and has served as the most important guidelines for
Nidec’s CSR to date, the CSR Declaration on the Conduct,
which clarifies the actions that our employees shouldchoose to take from the perspective of fulfilling their social
responsibilities, and all the other documents andregulations concerning CSR constitute the foundation forour materiality initiatives.
We will continue to launch effective sustainability
strategies by leveraging all of our philosophies andexperience, with the aim of making our businesses
more sustainable.

Tamame Akamatsu, member

For the sake of society in 2030 and the Earth in 2050, I thought it was timely to establish
a committee to actively address social issues. I have been involved in growing talent in
the field of art, which has been rooted in all cultures around the world and passed down
successively from generation to generation along with the history of mankind. From thisstandpoint, I would like to think about what is necessary and what can be done to create
a future where the younger generation can have hope, regardless of market values suchas production and consumption.

Outside Director

Junko Watanabe, member

In the modern economy and society, corporate activities cause environmental problems
and give rise to burdens on specific groups in terms of labor, human rights, and fairtrade. To change this vicious cycle on a global scale, changing corporate activities isparticularly important. I place great expectations on the transformative power of Nidec,
which is expanding its business globally.
As a member of the Sustainability Committee, I would like to engage in discussions ina lively manner and steadily work on individual activities, including setting targets to beachieved, identifying specific issues to be addressed, drawing up guidelines, andconsidering schedules for achieving the targets.

INTEGRATED REPORT 2022

Our definition of “sustainable business management” is toensure that the direction of business strategies that thecompany pursues conforms with the path the world seeks
in order to solve social issues, and to continue thecompany’s robust, steady growth.
While we recognize the need to review our overallmanagement from a new perspective, the COVID-19 global
pandemic has made us more strongly aware of theimportance of being prepared for uncertainties. Thus, inorder to ensure the sustainability of our businesses, we
identified five issues of materiality based on the mediumto long-term visions of our stakeholders both inside andoutside the company, and clarified 15 action themes,
including “Realize a carbon-free society,” “Respect humanrights and follow proper labor practices,” and “maintainand foster globally competitive human resources.”
We have also established various systems to ensure theimplementation of proactive and continuous improvement

40Support for the
TCFD Recommendations

Indicators and targets
Identifying “contribute to environmental sustainability” as one of our materiality issues, we have set the KPIs shown below.

Governancemeets monthly to report on the progress and challenges
in terms of activity themes related to the five identified
materiality issues on a phase-by-phase basis. The reports
are made directly by the officers in charge of each activity
theme, and the matters discussed and decided at theCommittee meetings are immediately reflected in theaction plan.

In addition, as a major pillar of our medium-term strategic
goal Vision 2025 and ESG materiality measures, we have
set the target of achieving carbon neutrality by FY2040.
To achieve this target, we first aim to substantially reduce
the CO2 that Nidec emits directly through its businessactivities at present (Scope 1), and CO2 that is emitted in
the production stage of heat or energy used in businessactivities (Scope 2), by making our businesses more energy

business, strategies, and financial plans, and to work
towards the targets over the medium-to-long term.
The main identified climate-related risks and opportunities
are shown below.

Changes in CO2 emissions along with introduction of renewable energy-derived electricity

Strategy
One of the targets in our medium-term strategy goal,
Vision 2025, is to promote ESG management centered oncarbon neutrality. Our policy is to set targets for climaterelated risks and opportunities that may affect our(CO2 emissions: Ten thousand tons)

1,200

CO2 emissions reduction due to renewable energy-derived electricity
Total CO2 emissions derived from thermal power

Climate-related opportunities

Total CO2 emissions derived from gas, petroleum, etc.

Increased demand for automotive products (E-Axle, EPS motors, brake motors, etc.) due to the expansion of the electric vehicle market
Increased demand for brushless DC motors (air conditioner motors, etc.), refrigerator compressors and the like due to progress inpower saving on a global scale
Increased demand for battery energy storage systems due to the spread of the use of renewable electricity

Climate-related risks
Transition risks
Increased tax burden due to delays in responding to carbon
taxes and other energy conversion measures toward therealization of a decarbonized society in each country
Lost market opportunities and increased compliance costs
due to stricter regulations applied to existing products andservices and non-compliance with new standards
Difficulty in obtaining electronic component raw materials(rare minerals, steel materials, other non-ferrous metals suchas high-end aluminum and copper) or rising procurement
costs due to the global trend toward electrification
Delays in research and development of alternative raw
materials required for new low-carbon products and increased
incidental costs
Decreased corporate value due to ineffective climate change
actions, accompanying decline in investment attractivenessand lowering of credit rating

NIDEC CORPORATION

41

Consolidated sales target

900

10 trillion yen

600

Physical risks
Suspension of business activities due to frequent occurrenceof wide-area flooding caused by typhoons, heavy rains andthe like– Inundation and power/gas supply network outages– Damage to employees’ livelihoods due to house collapses,
road disruptions, etc.
– Stagnation of product transportation due to suspension oftransportation service functions
Restrictions on business activities due to drought– Shortage of factory water due to stricter water-use restrictions
imposed by administrative authorities– Decreased productivity due to rising water prices (washing,cooling, domestic water for employee dormitories, etc.)
Health damage due to temperature rise
– Increase in heatstroke cases– Increased speed of infection transmission
Supply chain disruption

Going forward, through scenario analysis, we will grasp the possible financial impact of climate-related risks andopportunities and incorporate the impact into our management strategies.

4 trillion yen

180

100
0

(Renewable energy
introduction rate: 80%)

Renewable energy +energy saving effect300

FY2040Carbonneutrality(Renewable energy
introduction rate: 40%)

50

FY2020

Renewableenergy-oriented
CO2 emissions
reduction

Renewable energy +energy saving effect

Consolidated sales target

FY20250

FY2030FY2040

Reducing CO2 emissions
by promotingEnergy saving
Shift to low-carbon
fuels, andCarbon offset
investments

Greenhouse gas (GHG) emissions*1(1,000 t-CO2)6,000

Scope 15,000

Scope 2

4,749

Scope 3*2

4,285

4,000

3,365

3,000

Risk management
To establish a risk management system for the entire group,
we have framed risk management regulations and set up
the Risk Management Committee. The Risk Management
Committee is placed under the Board of Directors andchaired by the officer in charge of risk management.
The Committee decides risk management policies andmeasures and submits reports and proposals to the Board

efficient and proactively introducing renewable electricity.
After building a solid foundation for renewable energyoriented CO2 emissions reduction, we will promote a shift
to energy-saving, low-carbon fuels and employ carbon
offset investments and other measures, thereby achievingcarbon neutrality in our business activities by FY2040.
For CO2 emitted in the supply chain (Scope 3), we will
decide a reduction plan by FY2025.

Materiality Initiatives

In August 2022, we established the Sustainability
Committee as an organization to supervise businessexecution related to sustainability and report to the Boardof Directors. The Sustainability Committee meets quarterly,
and the Investor Relations & CSR Promotion Department
serves as the secretariat.
In addition, the ESG Materiality Steering Committee

Reduce CO2 emissions by introducing the EV traction motor system E-Axle: Cumulative total from FY2020 to FY2025: 11,700,000 t-CO2
Reduce CO2 emissions by introducing electric power steering (EPS) motors: Cumulative total from FY2020 to FY2025: 26,261,000 t-CO2
Increase the introduction ratio of renewable energy to 40% by FY2025 on a consolidated basis
Annually disclose a climate change scenario in line with the Task Force on Climate-Related Financial Disclosures (TCFD)
recommendations
Fully complete water risk assessments at all production sites

2,934

2,859

2,295

2,287

4,236
1,906

of Directors. It also monitors the status of company-widerisk management and constantly reviews the adequacy of
allocation of resources necessary for risk management.
Based on the annual policies established by the Risk
Management Committee, department general managers incharge of risk management and the Group companies
formulate and carry out their respective annual plans.

2,000

3,582

2,700

457

1,000

612
0

FY201792593

FY201873577

FY201962511

FY202057

60

FY2021*1 Target sites: 86 companies*2 Categories included (defined by the GHG Protocol): Categories 1 to 8, 13 to 15
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).

INTEGRATED REPORT 2022

In April 2022, the Nidec Group announced its support for the TCFD recommendations.
Going forward, we will further enhance our efforts to realize a decarbonized society. Also,
through scenario analysis, we will grasp the possible financial impact of climate-relatedrisks and opportunities and incorporate the impact into our management strategies.

42

Environment

Environment
https://www.nidec.com/en/sustainability/environment/

Reducing CO2 emitted in business activities

Basic stance

Basic stance

Initiatives in FY2021

In addition to contributing to decarbonization throughproducts, we are also committed to reducing CO2
emissions in business activities. As the Nidec Group’s
energy use is expected to continue to increase due to the
expansion of its production scale, including through M&A,
we must establish a system whereby CO2 emissions can be
reduced despite an increase in the total amount of energy
used. Since electricity from thermal power generationaccounts for over 80% of the total consolidated energy
consumption of the Nidec Group, we have decided toachieve a dynamic shift to renewable electricity as our goal
for the moment and set a KPI for it.

In FY2021, we focused on introducing renewable electricity
and worked to reduce CO2 emissions. The introduction
ratio of renewable electricity in FY2021 was 10.5%, morethan 3.5 times the FY2018 level, and total CO2 emissions
from business activities (Scopes 1 and 2) were reduced by
23% from the FY2018 level to 513,000 tons. As for the
TCFD, we have been preparing to express our support for
its recommendations.

As global trends toward decarbonization are acceleratingin response to intensifying climate change, Nidec, as a
global business operator, is committed to the development
and supply of products that will contribute to decarbonization. Specifically, focusing on products for automobiles,
which are said to account for over 10% of CO2 emissions
around the world, we have decided to set as a KPI the sales
volume of products that reflect the global automobile
electrification trend by converting it into the volume of CO2
emissions reduced.
While our contribution to decarbonization through our
products has been recognized to some extent by ourinvestors and other stakeholders, we are aware that thenumerical data to support it is insufficient. In November
2020, we disclosed a reduction in CO2 emissions due to theintroduction of the E-Axle EV traction motor system. We will
identify a further reduction in CO2 emissions due to theintroduction of electric power steering (EPS) motors, andfurther work to make visible our contribution to
decarbonization through many other products.
Materiality Phase 1 KPIReduce CO2 emissions by introducing the EV traction motor
system E-Axle:

Cumulative total from FY2020 to FY2025:
11,700,000 t-CO2
Reduce CO2 emissions by introducing EPS motors:

NIDEC CORPORATION

Cumulative total from FY2020 to FY2025:
26,261,000 t-CO2

43

Specific product example: Provision ofhigh-efficiency, energy-saving motors

The key to reducing CO2 emissions from automobiles is to
reduce the load on the engine and improve fuel efficiency.
From this perspective, many car manufacturers aroundthe world are increasingly adopting electric power
steerings (EPS). The Nidec Group supplies EPS motors
expected to improve fuel economy by about 5% comparedto hydraulic motors.
The Group also offers electric oil pump motors toenable the idling stop function, and many other productsthat will lead to the reduction of emissions of CO2 andother air pollutants.
For other products, please see below.
https://www.nidec.com/en/sustainability/environment/system/motor/

Initiatives in FY2021
The total number of units of our EV traction motor system“E-Axle” sold in FY2021 exceeded 370,000. The introductionof electric vehicles equipped with our motors into themarket has helped reduce CO2 emissions. We achieved a
reduction of 155,000 tons of CO2 emissions in FY2021.
At the current pace, it is expected that we will be able toachieve our target of reducing CO2 emissions by acumulative total of 11,700,000 tons by FY2025.

Toward the future
We launched mass production of the second-generation
E-Axle in September 2022. Not to mention its highperformance, the second-generation model ischaracterized by its reduced usage of materials and rareearth elements through full use of our long-cultivatedtechnologies to make products lighter, thinner, shorter,and smaller. We will contribute to the accelerating
movement toward decarbonization through the enhanced
provision of smaller, high-performance products with lessenvironmental impact by replacing the product with its
second-generation model, and even with its third- andfourth-generation models, which are still at theconceptual stage.

Materiality Phase 1 KPIBy FY2025, increase the introduction ratio of renewableenergy to 40% on a consolidated basis.
Annually disclose a climate change scenario in line with the
Task Force on Climate-Related Financial Disclosures (TCFD)
recommendations.

Specific action example
As an initiative to reduce CO2 emissions, we are advancing
such measures as improving the efficiency of air
conditioning systems, introducing energy-saving
equipment, and switching to electricity generated entirely
from renewable energy sources.

Nidec Research & Development Center using electricity generated entirely
from renewable energy sources

Toward the future
We will make these two efforts as a complementary pair:
to improve the energy efficiency of our business and to
introduce renewable electricity. First, by utilizing a tool tocheck the company’s energy efficiency and sharing bestpractices, we will improve the energy efficiency of facilities
and equipment at each business site. Next, we will
improve the total consolidated introduction ratio ofrenewable electricity by combining the introduction ofrenewable electricity at each business site andcomprehensive renewable electricity procurement at theregional level. As for the TCFD, the Nidec Groupannounced its support for the TCFD recommendations in
April 2022. Going forward, through scenario analysis, wewill grasp the possible financial impact of climate-relatedrisks and opportunities and incorporate the impact into
our management strategies.

INTEGRATED REPORT 2022

Contributing to decarbonization through products

Materiality Initiatives

Realize a carbon-free society

44Basic stanceSpecific actions

As increasing waste has been a global social problem inrecent years, Nidec is working to establish a businesssystem to help realize the effective use of raw materials.
We have been making efforts not only to eliminate waste in
manufacturing processes, but also to minimize the use ofcontainers and packaging materials. Besides these, we aremaking continuous efforts to promote the recycling ofwaste by encouraging thorough sorting.
The Nidec Group pays sufficient attention to the use andstorage of chemical substances at its business sites toprevent leakage thereof, while striving to reduce the use
and emissions of chemical substances as far as possible
as part of the initiative to improve and innovate
production processes. The Group also utilizes its
information systems and analysis techniques to satisfy
international regulations concerning hazardous chemical
substances contained in products.
We will continue to work on careful management ofwaste and hazardous waste in response to rising social
demands.

Waste management
The amount of waste and valuable resources generated in
FY2021 increased by 11% compared to the FY2020 level
due to the increase in production volume. Even if the waste
and valuables generated by plants can be sold, we believethat it is important to make efforts to reduce waste
generation itself from the perspective of effective use ofresources. We are committed to making effective use of
raw materials through waste reduction in manufacturing
processes and improvement in material yields byascertaining the amount of generated waste on an
individual main raw material basis.

Materiality Phase 3 KPI

Monitoring and disclosing the amounts of released
and transferred chemical substances
In accordance with the PRTR system* based on Japaneselaw, the Nidec Group monitors and discloses the amountsof released and transferred chemical substances that aredesignated under the system and used at the Nidec
Group’s sites in Japan.
* Pollutant Release and Transfer Register

Reduce waste generation per unit of sales by 3% comparedto FY2022.

NIDEC CORPORATION

Handle water risks

45

Basic stanceSpecific actions

Water is the most important resource and is indispensablefor people’s lives and industries. It is said that excluding
seawater, icebergs and glaciers, only around 1% of water
resources on the Earth are actually utilizable. Nidec
recognizes the significant impact that depletion of water
resources may have on its business continuation, such as
shortening of operation hours or suspension of operationsat plants, and has implemented conservation and reuse/recycling initiatives to save water resources. We are also
engaged in water risk management through suchmeasures as identifying risks in water intake and discharge
for the continuation of business activities, and determining
the impact of our water intake/discharge on peripheral
areas and the water source areas.

Recycling of water
As demonstrated by Nidec Copal (Zhejiang) Co., Ltd., wherereused/recycled water exceeded 50% of total water use in
FY2021, active efforts have been made to promote thereuse and recycling of water at some of our business sites.
However, looking at all the business sites covered in the
Sixth Medium-term Environmental Conservation Plan,* thewater reuse/recycling rate in FY2021 remained as low as
3.6%. With reference to the practices of business sites
where water reuse/recycling has been promoted, we will
work to encourage the other business sites to follow their
excellent examples.
Meanwhile, the total volume of effluent water in FY2021
reduced by approximately 3% at production sites andapproximately 1% at non-production sites compared to
the FY2020 level, as a result of efforts to use water more
efficiently at each site. We will continue to be thorough incarrying out improvement activities and conduct further
water risk assessments.

Materiality Phase 3 KPI
Fully complete water risk assessments at all production sites.

* For details of the Sixth Medium-term Environmental Conservation Plan, please see below.
https://www.nidec.com/en/sustainability/environment/system/overview/

Nidec’s Technological Capabilities
https://www.nidec.com/en/technology/capability/

Provide products and services adapted to social change
Pursue product safety and quality
Basic stance

Initiatives in FY2021

As the world’s leading comprehensive motor manufacturer
featuring an extensive product line-up and large supply
volume, Nidec has a duty besides simply providing
products; we must ensure safety in every aspect, from theselection of parts in light of environmental friendliness tothe safety of products, as well as disposal and recycling.
We believe that we can help create sustainable social
infrastructure by providing our customers with productsthat can be used in a safe and dependable manner.
To realize this idea, it is necessary to maintain a high levelof product performance in terms of environmental
friendliness, requiring a database that serves as a guide to
selecting materials at the time of component design.
In FY2021, the Small Precision Motor & Solutions Business
Unit built such a material selection database. From now
on, we will actively carry out activities to spread the use ofthis database.
Moreover, now that the automotive products businesshas developed into a major segment accounting for over
20% of our consolidated net sales, in order to satisfy all
the quality needs of car manufacturers, it is important tohave globally uniform methods of quality management
and quality assurance. To strengthen the crossdepartmental management of the automotive businesscovering all automotive products, we plan to establish an
overall quality control organization and system by FY2025.
Meanwhile, risks associated with our automotive-related
products have been increasing in line with the expansionof our market presence. The safety of automotive
products is a matter of the highest priority with respect tohuman lives. We will conduct strict safety assessments ofboth finished and in-process products (mainly newly
developed products) to prevent the quality failure of anyof the automotive products Nidec provides from having asignificant impact on driving safety.

The Small Precision Motor & Solutions Business Unit hascompleted the creation of a material selection database inorder to take environmental friendliness and safety into
consideration from the component design phase. We havealso started working toward formulating a roadmap for
activities to halve environmentally hazardous substances(compared to the FY2021 level) while deepening employees’
understanding of ESG materiality by conducting education
using e-learning within our business units.
Meanwhile, for the pursuit of safety and quality related
to our automotive products, the Automotive Motor &Electronic Control Business Unit has begun examining
specific global management methods in order to establish
a methodology for evaluating product safety risks
according to the severity and degree of the impact of eachproduct. For example, as a first step toward establishing an
overall quality management organization and system by
2025, we have started building a global quality control
system. To ensure that assessments are carried out withregard to all newly developed products and all products inthe manufacturing process, we have begun examining
evaluation items and methods according to the severity
and degree of the impact of product-specific defects.

Materiality Phase 2 KPICreate a database for chemical substances contained in
products to make it easier for the development department
to determine the choice of materials, and shift to an
environment-oriented development system.
Implement quality management reforms in theautomotive-related business, and establish an overall
quality control organization and system by FY2025.
Conduct assessment of all newly developed products andall products during the manufacturing process to reduce
product safety risks.

Materiality Initiatives

Manage waste and hazardous waste

Products

Toward the future
The Small Precision Motor & Solutions Business Unitaims to actually use the material selection databasementioned above in FY2022. We will continue to actively
replace substances and materials that are notenvironmentally friendly.
The Automotive Motor & Electronic Control Business
Unit will proceed with information analysis using data frompast product development and data at overseas bases, so
as to monitor and judge, within FY2022, the validity of each
KPI that has been selected as an index for product safety
risk assessment. From FY2023 onwards, we will apply thisinitiative to not only automotive products but also Nidec’sother products in order to promote initiatives tostrengthen our quality control system.

INTEGRATED REPORT 2022

Environment

46

Products

Respond to changes in the technological environment andthe industrial structure
Basic stanceContinue to pursue the high efficiency and miniaturizationof motors that contribute to energy and resource saving.

Initiatives in FY2021
To promote activities to reduce CO2 emissions throughproduct development and business services, we haveendeavored to ascertain the amount of contribution to
reducing CO2 emissions and worked to quantify theamount of our environmental contribution. Furthermore,
to enhance sustainability-conscious product development,
we once again reviewed the research and development
domain in the product-development roadmap,
strengthened the environmental contribution guidelines,
and worked to foster and spread awareness.

Toward the future
In technology and product development, we will strive todevelop technology that helps society and customers
reduce environmental impact while pursuing environmental
value in line with customer needs, in order to achieve
greater proliferation of our products. With regard to the
pursuit of environmental value, we will promote researchand development that enable energy saving, resourcesaving, and recycling (use of recycled materials) byencouraging the group-wide application of the groupcompanies’ technologies conducive to environmental
conservation and the effective use of resources.

NIDEC CORPORATION

Research and development to support thesustainable growth of the company

47

As the world’s leading comprehensive motor manufacturer,
the Nidec Group has established R&D facilities thatcollaborate globally with the aim of contributing to a wide
range of industrial fields. The missions of the facilities are:to develop innovative products that accelerate the growthof the Nidec Group, to advance and upgrade production
technology to strengthen the foundation of manufacturing,and to create and disseminate technologies conducive tosolving social issues. Nidec regards business fields towhich higher priority is assigned in terms of problem

intellectual property rights, thereby promoting multiple
utilizations of intellectual properties. Within the company,
to encourage one of our Three Essential Attitudes,“working hard and smart,” in which engineers actively
create ideas and know-how for new technologies, Nidec
has an award system to recognize efforts to develop
inventions and contributions to business.
Toward the realization of a sustainable society, we areworking on developing products to solve social issues,
focusing mainly on the Five Big Waves.* To protect suchproducts and secure competitive advantages, we willdevelop an IP portfolio and advance the IP portfoliotransformation in line with our business portfolio.
Based on this approach, we will set KPIs and conduct
IP-related activities.

2017 to 53% in 2021 (see the figure below). In the middle of
the worlds move to decarbonization, we commenced
volume production of our EV traction motor system “E-Axle”
in 2019, and that of its second-generation model in
September 2022. Furthermore, we are currently developing
its third-generation model and expanding our intellectual
property portfolio. The number of valid patents related to
the E-Axle in 2021 was approximately 5.8 times the number
in 2017. For robot-related products, we are stepping up
patent applications for reduction gears that help us makemore compact and lighter products. In this regard,
the number of valid patents* in 2021 was approximately
1.2 times the number in 2017.

* Of the market megatrends that have arisen against the backdrop of recent social
issues, the five fields that Nidec is particularly focusing on

Toward the future

Materiality Phase 2 KPITransform our IP portfolio to one that responds to social
and business changes, including decarbonization andpower and manpower saving, and use the new IP portfolio.

Initiatives in FY2021
We are actively promoting patent application andacquisition mainly for products related to the Five Big
Waves. Meanwhile, in existing businesses, we proceededwith IP portfolio transformation, for example, streamlining
the portfolio according to the stage of the product lifecycle.
The ratio of products related to the Five Big Waves
among all Nidec Group products has increased from 51% in* Number of valid patents: Number of patents both in force and pending

We will continue to apply for and acquire patents mainly interms of product groups related to the Five Big Waves.
Meanwhile, in our existing businesses, we will proceedwith IP portfolio transformation while evaluating thepatent value.
For the E-Axle in particular, we participate in the Green
Innovation Fund*1 project publicly offered by the NEDO,*2
and have launched the development of magnet-free
motors with a strong awareness of resource risk andsustainability. We will continue to reinforce our IP portfolio.

Materiality Initiatives

Materiality Phase 2 KPIContinuously launch new products that lead the Five Big
Waves to resolve social issues.

solving due to changes in the social environment aspromising growth markets, namely, “Five Big Waves.”
The Nidec Group companies are making a concerted effort
to strengthen technology development and intellectual
property strategies, and advance initiatives to accelerate
product development.
With its eyes focused on the needs of future society, theNidec Research and Development Center puts its energies
into research and development to create new products andtechnologies that will realize a sustainable society, as well as
into research in the motor application field that will lead thegrowth of the Nidec Group. Meanwhile, the Nidec Center for
Industrial Science is working to evolve our production sites
in a unified manner by incorporating cutting-edge
production technology that utilizes digital transformation
and AI so that we can achieve more efficient manufacturing.
In addition, the Global Production Engineering Divisiondevelops production methods that accompany
technological innovation and supports the implementationof such methods, providing a cooperative system aimed at
rapid and flexible development within the Group.
In 2021, we launched the Platform Development Centeras a laboratory responsible for advanced development inspecific fields, with the aim of standardizing the E-Axle andstrengthening competitiveness in the development of
next-generation models. Furthermore, the Nidec
Semiconductor Solutions Center, which was established in
May 2022, is looking ahead to smartification in the motor
business by means of semiconductors. We are confident
that we will continue to contribute to the development ofsociety by providing solutions through our products andtechnological development.
Nidec has more than 330 business companies in andoutside Japan, featuring the accumulation of diverse
technologies. Bringing together the knowledge andtechnology that each company has cultivated individually,
we will work toward accelerating development andcreating innovation.

*1 Green Innovation Fund: a fund established by NEDO to create a virtuous cycle ofeconomy and the environment, which is espoused in the Green Growth Strategy
Through Achieving Carbon Neutrality in 2050 formulated by Ministry of Economy,
Trade and Industry with other relevant ministries and agencies on December 25, 2020
*2 NEDO: New Energy and Industrial Technology Development Organization

Intellectual property activities in line with the product lifecycle
Market size

IP licensing strategy
Business alliance strategy
IP enhancement strategy

Protect and utilize intellectual
properties

Development policy strategy
Time

Introduction

Basic stance

Aiming to contribute to the growth of its business throughthe creation of intellectual added value, Nidec endeavors
to improve the value of its intellectual properties by
establishing and reinforcing a professional IP organization
and an internationally competitive IP portfolio. Specifically,
our activities include portfolio management and rights
utilization suited to each stage of the product lifecycle.
Meanwhile, Nidec respects the intellectual property rights
of other companies, receiving licenses or technologies
from them as necessary or allowing them to use ourFirst-half growthSecond-half growth

Maturity

IP investment

DeclineINTEGRATED REPORT 2022

Towards the realization of a sustainable society, Nidec
regards global social issues, including environmental
problems caused by global warming and declining
working-age population due to the declining birthrate andaging population, as critical social issues. To solve theseissues through our products and business services, we arecommitted to enhancing product development andtechnological research.

IP utilization

Percentage of products related to the Five Big Waves in the IP portfolio
FY2021FY20170
Decarbonization

20
Power saving

40
Manpower saving

5G & thermal solutions

60
Field related to digital data

80
Other fields

100 (%)

48

Human Resources

Employees
https://www.nidec.com/en/sustainability/social/employee/

Promote diversity

Basic stance

Developing global human resources

To achieve consolidated net sales of 10 trillion yen by
FY2030 and realize the Vision to become a global company
that grows sustainably for the next 100 years and beyond
and the world’s leading solution-providing business groupthat solves numerous problems for the people of theworld, the Nidec Group believes that it is crucial tomaintain and foster globally competitive talent, in otherwords, human resources capable of actively working
globally. Defining those who have high abilities in the 3P
attitudes (Proactive, Productive, Professional), problem
solving, and cross-cultural communication as global
human resources, we develop talent who can exercise suchabilities at a high level.
Nidec currently focuses on talent management aimed at
identifying and developing talented human resources,
including local personnel at overseas sites and Group
companies in Japan. We plan to introduce a talentmanagement system for the integrated management of
talented human resources. Furthermore, to create humanresources who will be motivated to play an active role inachieving the target of 10 trillion yen of consolidated net
sales in FY2030, we are determined to implement various
measures to maintain and foster globally competitive
human resources, including introducing a new personnel
system based on global standards to properly evaluate thework results.

Aiming to develop human resources who will take theinitiative in realizing the Vision, Nidec opened the Nidec
Global Business School in FY2016 and started the NextGeneration Global Business Leader Training Program in
FY2017 to train candidates for the school at a sufficiently
early stage. So far, trainees selected from 14 countries
around the world (Japan, the U.S., Canada, Mexico, China,
Thailand, the Philippines, Singapore, India, Italy, Germany,
France, the UK, and Poland) have completed the programand are working as global leaders in their respective
countries and regions.
Nidec is also working to establish a human resources
pipeline as a system to constantly generate global humanresources in a stable manner. Starting from FY2020, we
have the Human Resources Development Committee as aforum to discuss succession plans for key positions of the
Nidec Group, including those overseas. The Human
Resources Development Committee meets four times
annually to hold discussions among top management
members on the adequacy of the succession plans, andidentify employees with the potential to become
candidates for next-generation leaders and enhancestrategic training for the early development of suchhuman resources.

Materiality Phase 3 KPIDevelop and train global leaders:Identify overseas local personnel to be candidates for
executives in FY2022.

NIDEC CORPORATION

Start training of executives, including overseas personnel,
from FY2023.

49

The Nidec Group recognizes diversity as a source ofcompetitiveness. In conducting business globally, we
believe that we can effectively respond to a rapidlychanging business environment and customer needs by
respecting and accepting the differences amongindividuals and making the best use of such differences.
The Nidec Group has its development, production, sales
and research sites all over the world, where diverse humanresources are actively working. We are committed to hiring
talented, motivated individuals regardless of their personal
characteristics and values, while working to establish
systems for developing talent and opening career paths tothem and to create a better working environment so that
employees can fully exercise their abilities. As forworkstyles, in FY2021, we permanently abolishedrestrictions on who can work from home and the numberof telecommuting days, whereby the relevant system has
been upgraded to allow all employees to work remotely on
an as-needed basis. We are also working to raise the ratio

FY
2017

Training programs
Next-Generation Global Business Leader Training
Program started.
Overseas trainee program started.

2016

Nidec Global Business School opened.

2015

Nagamori Business School established.
Nidec Motor College started.

2013

Internal language school opened with English lessons
at various levels started.
Training programs expanded to Group companies.

2012

Professional skills training programs for engineers,sales staff, etc. started.
Challenge seminars, online education programs, etc.
started.
(Training themes: strategic thinking, leadership,
negotiation skills, etc.)

2010

Company-wide TOEIC test started for all employees(twice a year).
English study seminars held at each business site.

of women on the Board of Directors and the numberof non-Japanese officers. For example, in April 2022,
we appointed two non-Japanese persons as officers.
We will continue to strive to ensure and enhancediversity throughout the company, from management
to on-site employees.
Materiality Phase 3 KPI
Achieve the targets below related to women’s
empowerment (non-consolidated) in FY2022:- Ratio of female directors*1: 10% or higher- All managerial positions held by women: 8% or higher- Ratio of female candidates for managerial positions*2:
15% or higher

Recruit non-Japanese directors.
*1 Executive officer or higher position, including outside directors*2 Referring to female employees in positions immediately prior to
managerial positions

Efforts to promote female empowerment
Phase 1

Support work-lifebalance2005

Started efforts to promote
female empowerment

Next Generation Global Business Leader Training Program

Nagamori Business School

Basic stanceMateriality Initiatives

Maintain and foster globally competitive human resources

Launched measures to support
work-life balance

2007

Established a system to promote
activities at each business site

2008

Organized lectures for careeradvancement, workplacegatherings, and a role-model
development project

Phase 2

Support active participation
2015

Organized study sessions for selfimprovement and skill development,
publication of a journal, various
gatherings, internal surveys, follow-up
for employees on childcare & maternity
and childcare leave, lectures by guests
from outside, etc.

Phase 3

Active participation
2020

Enhanced training programs
Enhanced and operated talentmanagement

Poster for the Positive Action campaign

2016

Proposed systems and measures necessary to promote theactive participation of women to the company’s top executives,
organized a lecture by an outside guest and an internal seminarby a female department GM

2017

Employees participating in a project activity

Established a Diversity Promotion Office (now Diversity &Inclusion Office, Human Resources Department)
Introduced three systems (working from home, staggered work
shifts, and by-the-hour annual paid leave system) and a returnfrom-childcareleave support program, issued a childcare &nursing guidebook, and held a career seminar

Proposing measures to top executives

INTEGRATED REPORT 2022

Retain and develop diverse talent50

Human Resources

Promote occupational safety and health, and health-oriented
business management
The declining working population is a social challenge forthe world, including Japan. Companies are required to takegood care of their limited labor resources by supporting
the health management of individuals, and thereby help tomaximize the value of their human resources. To this end,
it is crucial to create a working environment where
employees can be motivated and productive.
The Nidec Group declares in its CSR Charter, “Based oncooperation between our management and employees,
we strive to ensure workplace safety and good health toestablish a work environment that brings out the best ineach individual.” Nidec’s health-oriented business
management is based on the promotion of making a safe
and comfortable work environment, and securing thesafety and good health of its employees.
Nidec released the Declaration on Promoting Good
Health in June 2020 to announce its determination toenhance “health and productivity management,” and thecompany was certified for the second year in a row as an
Outstanding Health and Productivity Management
Organization 2022 (in the large enterprise category) by the
Ministry of Economy, Trade and Industry (METI) in March
2022. In addition, Nidec has set up a cross-departmental
Health Promotion Committee to enhance systems forhealth management and promotion, while organizing
health seminars by industrial doctors and conducting ahealth awareness survey on all employees, with the aim of
improving the health literacy of employees. Furthermore,
in FY2021, we set a smoking cessation period in threemonth units and gradually expanded the period to achievea total smoking ban on the premises of domestic businesssites based on understanding the importance of healthand productivity management. By promoting health andproductivity management, we will improve ourcompetitiveness and corporate value.

We achieved our initial targets for KPIs related to both
safety activity check and remote safety check.

Materiality Phase 2 KPI
Ensure a safe and comfortable work environment.
Reduce the number of serious accidents (those resulting indeath or permanent disability) to zero.
Improve the Lost-time injury frequency rate.

NIDEC CORPORATION

Receive certification as a White 500 Company (in the large
enterprise category) under the 2023 Certified Health &Productivity Management Outstanding Organizations
Recognition Program.

51

SafetyEnsuring the safety of employees is assigned the highest
priority at all group companies’ business sites, including
those newly established and those joined through M&A.
The Nidec sites in Japan have a safety and healthcommittee in place to discuss measures to secure thesafety of all the sites. We will continue to maintain a safe
work environment and aim for zero serious accidents.

Target

HealthAchievement

Safety activity
check

6 sites or more(per year)

6 sites

Remote safetycheck

6 sites or more(per quarter)

26 sites (per year) >24 sites

Toward the future
Although the impact of COVID-19 is still lingering, we willcontinue to work to prevent occupational accidents byremotely checking the safety of manufacturing processes
and facilities more frequently than before using webcams.

Lost-time injury frequency rate

Report anddeliberation

1.20

1.21

human resources

1.31

Execution andpromotion

1.02
0.78

0.9
0.6

0.4

0.66

Business sites andemployees

0.73

0.1
0
2017

2018
Non-consolidated

2019

Collaboration
Health insurance union
Industrial doctors
Occupational health &safety staff
Employees’ association(representing employees)

0.5

0.4

0.3

Whole Nidec

Management(Executive Management
Meeting, etc.)

Leader: Director in charge of
1.20

0.0

Health management promotion system

Health Promotion
Committee(Frequency rate)

1.2

Aiming to create a work environment that promotes our
employees’ mental and physical health and help themshine at Nidec to the greatest extent possible, we have a
Health Promotion Committee in place. Each business basehas health promotion personnel to launch measures
tailored to its workplace, while working in collaboration
with industrial doctors, i.e., health experts, and a healthinsurance union for the entire company to promote healthoriented business management.

2020

2021

(FY)

Manufacturing industry in Japan (average)* Lost time injury frequency rate: Number of deaths and injuries from occupational
accidents / Total work hours x 1 million hours Deaths and injuries per 1 million hours
worked in total Calculation of consolidated data began from FY2019.

Response to COVID-19
Nidec considers ensuring the safety of its employees andbusiness partners as its highest priority, and is committed tothe continuous provision of products and services, while
striving to prevent the transmission of COVID-19 inside andoutside of the company. In January 2020, Nidec set up acrisis management headquarters to organize the procedurein the event that infection occurs, formulate and implement
measures to prevent infection within its business sites, andestablish policies according to the medical system andinfection status of each country. The company encouraged
employees to make full use of the work-from-home andstaggered work shift systems as measures to prevent
infection. To minimize the impact in the case of infection,
zoning of business sites, temporary closure of cafeterias,
and strict control of individuals who may have contact withan infected person and other measures are also employedaccording to the situation. Also, workplace vaccination isprovided for employees in Japan and their family members,
thereby ensuring a workplace environment where
employees can feel safe in fulfilling their duties. Amid the
expected “with COVID” environment, the Nidec Group willcontinue to take concerted action promptly andappropriately in cooperation with all relevant parties.

Respect human rights andfollow proper labor practices
Basic stance
Recognizing the importance of considering human rights
in global business environments, Nidec upholds
international guidelines such as the UN Guiding Principles
on Business and Human Rights, the UN Global Compact,
the UN Universal Declaration of Human Rights, and the ILO
Declaration on Fundamental Principles and Rights at Workin response to diversifying human rights-related issues.
The Nidec Group CSR Charter provides for respect forhuman rights, while the Nidec Group Declaration on CSR
Conduct, which complements the CSR Charter, prohibits
forced labor, child labor, and discrimination and inhumane
treatment, and guarantees proper wages, work hours,
non-work days, leaves, freedom of association, and theright to collective bargaining.
At present, the Nidec Group has over 300 operation sites
in 43 countries and regions, as well as several times that
number of business partners supporting our businessactivities in each country/region. Many of the key plants
and their supplier plants are operating in countries where
the legal systems to protect human rights are said to be
insufficient. Most of the labor and ethical problems arising
at workplaces these days are said to be attributable toinadequate management of human rights. We are awarethat we are responsible for not only human rights issues
inside our business sites but also labor and ethical issues

arising in our supply chains. In November 2021, in
response to one of the ESG materiality initiative themes,“Clarify human rights policies for workers including thosein the supply chain, and spread them among employees,”
we organized our stance and initiatives regarding respectfor human rights and established the Nidec Group’s Basic
Policy on Human Rights. Based on this policy, we will fulfill
our responsibility to respect human rights, and advanceefforts to create safe and secure workplaces where diverse
human resources can play an active role.
Materiality Phase 1 KPIClarify human rights policies for workers including those in
the supply chain, and spread them among employees.

Specific actions
The Nidec Group’s human rights-related risk assessment isfocused primarily on Asia, where more than 70% of its
employees operate. In partnership with a third-party
certification organization, we regularly implement audits at
our major factories in Asia, using the set of standards
substantially equivalent to the RBA* Code of Conduct. The
audit encompasses the seven essential dimensions ofhuman rights, including at-will employment, child/younglabor, and work hours.

Materiality Initiatives

Initiatives in FY2021* RBA (Responsible Business Alliance) is an organization established for the purpose ofsolving social, environmental and ethical issues in the supply chains of the electronics
industry.

Materiality Phase 3 KPIManage employee working hours, including managers,from an occupational safety perspective.
Reduce average overtime hours by improving productivity.

Initiatives in FY2021
We closely managed the work hours of employees, which
is one of our KPIs, and properly reported to andcoordinated with the relevant parties. In addition, withregard to the management of overtime work, we made it
known to employees once again that overtime work should
not be carried out without communication between
superiors and subordinates by, for example, making
awareness-raising voice announcements on a daily basis.

Toward the future
We will fulfill our social responsibility as a company withsales exceeding one trillion yen by thoroughly monitoring
work hours and preventing occupational accidents.

INTEGRATED REPORT 2022

Basic stance52

Supply Chain

Corporate Governance

Responsibility for the entire supply chain
https://www.nidec.com/en/sustainability/social/supplychain/partner/

Build an internationally competitive supply chain tosolve social issues

Create a solid governance system

Sustainable procurement considering environmental and social aspects
Basic stance

Conduct human rights due diligence on key suppliers:
100% implementation rate for high risk suppliers as of 2025

CSR procurement flow
1 Work sincerely andhonestly

and labor

with the environment

4 Ensure occupationalsafety and hygiene

Business
partners
Sale

5 Maintain good relations

with society

NIDEC CORPORATION

6 Management system

53

Nidec supplier CSR self-assessment
Starting from 2018, we have conducted the Nidec supplier
CSR self-assessment to understand the status of CSR
procurement, and have our supply chain partners reporton the status of their compliance with the Nidec Group
Supply-Chain CSR Promotion Guidebook. The areas of thesurvey are based on Chapters 1 through 6 of the
Guidebook, to assess the status of individual business
partners based on a total of 111 items.

FY2021

672

698

667

Since FY2010, the Nidec Group has been auditing our main
supply chain partners* on-site. During FY2021, the Nidec
Group audited 132 of its supply chain partners onsite in
Asia and other regions.
* Refers to suppliers and other business partners who frequently go in and out of thepremises of our group companies, including dealers in indirect materials (cardboard,adhesives, grease, packing tape, pallets, etc.), equipment manufacturers, dormitory
operators (food manufacturers, security guards, etc.), and temporary staffing agencies

Holding CSR seminars at major sites
As Nidec promotes CSR activities throughout its supply
chain, it is important that our procurement personnel firstunderstand Nidec’s CSR policies. Since FY2018, Nidec
Corporation and Nidec Group companies in Japan haveconducted CSR seminars for purchasing personnel basedon the Nidec Group Supply-Chain CSR Promotion
Guidebook. In FY2021, as with FY2020, to prevent COVID19 infections, lectures were held in the forms of e-learningand remote classes, attended by 250 people.
FY2019FY2020

FY2021

308

169

250

Nidec Electronics (Thailand) Co., Ltd. held a session to
explain the Responsible Business Alliance (RBA)* to ensurethat all of its business partners understand Nidec’s CSR.
Nidec Electronics (Thailand) also held presentation
meetings on CSR procurement for its major business
partners, and audits them on-site based on the results ofadvance survey sheets. Since FY2013, our CSR audit
standard has been based on the RBA, and companies tobe audited, mainly new supply chain partners, are selectedbased on the standard. We selected 37 companies for theaudit in the first year. In FY2021, we launched activities
with the target of requesting 53 of our supply chain
partners to comply with the CSR audit standard. Nidec
Electronics (Thailand) Co., Ltd. thus supports and instructs
its supply chain partners to enable them to engage in CSR
activities based on their circumstances.
* RBA (Responsible Business Alliance) is an organization established for the purpose ofsolving social, environmental and ethical issues in the supply chains of the electronics
industry.

The purpose of the corporate governance of the
Nidec Group is to become a conscientious andprincipled company that earns society’s trust, and toincrease our corporate value sustainably based on themotto, “High growth, high profit, and high share price.”
To this end, we maintain and enhance our internal control,
thereby running our business more healthily andefficiently. Furthermore, we disclose information
appropriately to increase the transparency of thecompany’s business operations.
For example, Nidec became a company with an Audit
and Supervisory Committee in 2020, and has beenworking to enhance the supervisory function of the Boardof Directors by setting up a Remuneration Committee.
For the effectiveness evaluation of the Board of Directors
in FY2021, we have introduced an evaluation by a thirdparty organization for the purpose of objective evaluation
and analysis. To further improve the effectiveness of theBoard of Directors, we will continue the third-party
evaluation system.
Nidec is also committed to ensuring the independence
and diversity of the Board of Directors. The Board of
Directors of Nidec comprises ten members, including six
outside members. All ten members are individually
selected with a good balance, based on their knowledge,
experience and qualifications in a diversity of areas, aswell as on Nidec’s businesses, business environment andthe like. The members include those with broad
experience of working overseas, as well as women, inorder to secure diversity. Going forward, when selecting
candidates for the Board of Directors, Nidec will continue
to take into account, among others, the balance of theknowledge, experience and qualifications of the Board of
Directors as a whole, and the number of its members
based on its diversity in gender, career history, age, etc.
and on Nidec’s business scale.
Based on the understanding that corporate governanceis one of the highest-priority issues for our sustainablegrowth and medium- to long-term improvement incorporate value, we will make persistent efforts to enhanceand improve the relevant systems.

Materiality Phase 1 KPIBoard of Directors
Continue to have the effectiveness of the Board of
Directors evaluated by a third party.
Always maintain the ratio of outside directors in the Boardof Directors at 50% or more, and the ratio of female
directors at 20% or more.

Nominating Committee / Remuneration Committee
Increase transparency and fairness in the appointment andremoval process of directors.
Improve the effectiveness of the Remuneration Committee,
and ensure the objectivity and transparency of
remuneration decisions for directors.

Initiatives in FY2021
To ensure the effectiveness of the Board of Directors, Nidec
annually sends out questionnaires to all members of theBoard of Directors, including Outside Members.
Based on the results, the Board of Directors holds
discussions to analyze and evaluate its effectiveness andcurrent issues. In FY2021, we introduced a third-party(external law firm) evaluation system for objective
evaluation and analysis. The third party has evaluated theeffectiveness of the Board of Directors as follows:
In consideration of the composition, frequency and lengthof the Board of Directors’ meetings and the quality of
information, the Board of Directors’ meetings functioned
sufficiently on the whole, and the discussions at andoperation of the Board of Directors’ meetings have been
improved. The effectiveness has also been evaluatedappropriate in that the Board of Directors has an
atmosphere in which Outside Members can speak freely.
Based on the results of the questionnaires, we will continue
to formulate measures for constant improvement.
With regard to executive remuneration, Nidec has
redesigned its executive remuneration system to improve
the objectivity and transparency of procedures.
With regard to executive remuneration for FY2022,
the Remuneration Committee submitted a report to theBoard of Directors after deliberations in order to ensure
the appropriateness of remuneration levels, businessresult evaluations, and performance evaluationsof executives.

Materiality Initiatives

FY2020

CSR audit of business partners

Number of participants in the
CSR seminar for purchasing
personnel

2 Respect human rights
3 Coexist harmoniously

Number of suppliers that
conducted a Nidec supplier
CSR self-assessment

FY2019INTEGRATED REPORT 2022

Materiality Phase 3 KPI

Purchase materials
and components

Build a fair, transparent and highly effective governance system
Basic stanceWorking in collaboration with its business partners, theNidec Group promotes CSR activities throughout the entire
supply chain. To ensure that our business partners fulfill
their corporate social responsibility, we require them tocomply with the Nidec Group CSR Charter in basic business
contracts with them. Additionally, in the Nidec Group
Supply Chain CSR Promotion Guidebook and Companywide Basic Policy on Human Rights, we describe specificstandards based on the pillars of the CSR Charter. Also weshare them with our business partners.
We set sustainable procurement considering
environmental and social aspects as a new materiality
theme. Through the procurement activities consideringsocial aspects, such as prohibiting child labor and forcedlabor and eliminating long working hours, andenvironmental aspects, such as energy consumption by
suppliers, bio diversity, and utilization of waste/resources,
we ask business partners for their further cooperation.

Nidec

Corporate Governancehttps://www.nidec.com/en/ir/management/governance/54

GovernanceAppoint / Dismiss

3

Remuneration
Committee
Members of theCommittee

2011

2012

ReportConsult

1

Board of Directors

Appoint / Dismiss

2 Audit & Supervisory

Audit / Supervise

3
Risk Management
Committee

CSR Committee
Supervise

(FY)
2013

2014

2015 2016 2017 2018 2019

Company with an Audit & Supervisory Board

2020

2021

Cooperate

Committee

Members of theCommittee

Members of theBoard of Directors

Compliance
Committee

Appoint / Dismiss

2022

Company with an Audit &Supervisory Committee

Execution ofbusiness
operations

CEO

Enhance the supervisory
function of the Board of
Directors and improve thesoundness and transparency ofbusiness management.

COO
Executive Management Meeting
CPO

Management Committee

Audit

Accounting
Auditor4

5

CFO

Separation ofsupervisionand execution

Executive officer system introduced

Outsidemembers of
the Board of
Directors

Outsidemember of
the Board of
Directors
appointed

CCO
Corporate Administration & Internal Audit Dept.

Responding to global business expansion and rapid changes in the business environment

Improve theeffectiveness ofmanagement
oversight andtransparency indecisionmakingFemaleoutsidemembers of
the Board of
Directors
introduced
Improvediversity

NIDEC CORPORATION

55

Outsidedirectors’
meeting(informal
meeting)
Board ofDirectors
Effectivenessevaluation

CSO
CSCO

Outsidemembers of
the Board of
Directors
increased
Further
improveeffectivenessof the Boardof Directors

CTO

CFMO

Vice President

Vice President

Vice President

R&D Bases

Administrative
Bases

Sites/Group Companies

Internal audit

Cooperate

Corporate Philosophy and Action Principles(Mission Statement, Governance Policy)

Outsidedirectors
Male
FemaleAdvisory
committee for
the Board of
Directors

Materiality Initiatives

Board ofDirectors
system design

2010

Female(As of October 31, 2022)

Remuneration Committee

INTEGRATED REPORT 2022

2008 2009

Male

Shareholders’ Meeting

Information
Security Committee

History of Nidec’s corporate governanceOutside member ofthe Board of Directors

Audit / Supervise

Important matters, such as the selection of candidates
for directors, are discussed and resolved at a meeting of
the Board of Directors attended by independent outside
directors. So far, independent outside directors haveproperly participated in the meetings to give advice.
We will continue to take necessary measures taking into
consideration the social situation and requests from ourstakeholders. We will also continue efforts to improve theeffectiveness of the Remuneration Committee.

ReportTo ensure the effectiveness of the Board of Directors, wewill implement ongoing measures, such as providing
sufficient information and securing opportunities fordiscussion on each item of the agenda, promoting
understanding of our business by non-executive directors(providing explanation of business by executive directors,
conducting online plant tours), and examining information
provided by stakeholders.

Internal member ofthe Board of Directors

Corporate governance structure

Cooperate

Toward the future56

Governance

1 Board of Directors

Skills matrix

Status of operation
The Board of Directors makes material management decisions and oversees the Group’s business operations as a whole.
The Board of Directors includes highly independent Outside Members, to enhance the supervisory function of thecompany’s business operation and improve management transparency and objectivity.

Themes of deliberations/reports at the Board of Directors meetings (FY2021)

26.5%

Human resources

25.0%

Compliance, risk management, internal control

7.0%

Business strategies, sustainability, governance

6.3%

Shareholders’ meeting, shareholders

3.1%

M&A

1.6%

Internationality,
globalexperience

Human
resourcesdevelopment

Environmentand society

Legal affairs,
compliance

Finance andaccounting

Governance,risk
management

KazuyaMurakami
Hiroyuki
Ochiai
ShinichiSato
Yayoi
Komatsu

Problems found included insufficiency of efforts torealize the medium- to long-term plan and analysis of
the cause of failure to achieve targets, insufficient timeand resources secured for discussions of issues related
to management strategies and the systematicdevelopment of successors to management positions,and insufficient volume of the reference materials(explanatory materials) provided.

TakakoSakai
Aya
YamadaTamameAkamatsu
Junko
Watanabe

Efforts made in FY2022
Continue to provide advance explanation for
Outside Members of the Board of Directors sothat they can be provided with sufficient
information on each item of the agenda andopportunities for discussion.
Promote understanding of our business by nonexecutive directors at informal meetings andcontinue to examine opinions provided by various
stakeholders.
Provide information on investment projects bysuch means as explaining their relationships withthe medium- to long-term business plans andmanagement strategies at the Board of Directors’
meetings.
Continue to explain the career background, skills,
etc. of the candidates for executive director andother executive positions.

2 Audit and Supervisory Committee
The Audit and Supervisory Committee audits the execution of duties by the Board of Directors’ members, and receives audit
reports from the Accounting Auditor.

Composition of members and the chairperson

Composition

Total committee
members

Full-time members

Internal Members of theBoard of Directors

Outside Members of theBoard of Directors

Chairperson

5

2

2

3

Internal Member of theBoard of Directors

Cooperation between the Audit and Supervisory Committee and accounting auditors
In addition to quarterly meetings, the Audit and Supervisory Committee and the accounting auditors meet about two or
three times a year whenever necessary. In these meetings, they exchange information and opinions on audit results, audit
systems, audit plans, audit implementation status and the like.
Cooperation between the Audit and Supervisory Committee and the internal audit department
The Corporate Administration & Internal Audit Department, Nidec’s internal audit department, regularly hold meetings with
the Audit and Supervisory Committee to report on the results of the Nidec Group’s internal audits. In addition, the Audit andSupervisory Committee exchanges opinions and shares information with the Corporate Administration & Internal Audit
Department as necessary, and requests the Corporate Administration & Internal Audit Department to conduct on-site audits.

INTEGRATED REPORT 2022

NIDEC CORPORATION

57

Summary of FY2021 evaluation results
Evaluated as appropriate in that the Board of Directors’
meetings on the whole functioned sufficiently, that
discussions and operation of the Board of Directors’
meetings have been improved, and that the meetings
had an atmosphere in which outside members felt free
to voice their opinions, in addition to the composition,
frequency and length of the Board of Directors’
meetings and the quality of information andexplanation provided at them.
Highly appreciated also by the third-party evaluation inthat discussions and the operation/supervision functionof the Board of Directors on the whole have been
improved, confirming that our Board of Directors’
meetings are functioning properly.

Technology
and R&D

Materiality Initiatives

30.5%

Individual matters

Efforts made in FY2021
Continued to provide explanation for Outside Membersof the Board of Directors prior to Board meetings so thatthey can be provided with sufficient information on each
item of the agenda and opportunities for discussion.
Promoted understanding of our business by nonexecutive directors at informal meetings (explanation ofbusiness and online plant tours) and examined
information provided by various stakeholders.
Explained the career background, skills, etc. of thepersons appointed as executive directors or other
responsible executive positions upon appointment.
Provided active feedback to departments where issues
related to risk management had been pointed out.

Businessstrategy

Hiroshi
Kobe

Percentage

Financial results

Questionnaire survey on the effectiveness of theBoard of Directors (efforts and evaluation)

Name

Shigenobu
Nagamori

Themes of deliberations at the Board of Directors meetings
Category

Professional skills and experience required of members of the Board of Directors   * Maximum of three58

Governance

3 Various committees

Reasons for appointment and major activities of Outside Members of the Board of Directors

Remuneration Committee

Risk Management Committee

The Sustainability Committee is headed by Takako Sakai, Outside Member of the Board of Directors
and consists of two internal members and three outside members of the Board of Directors.
It oversees business operations related to sustainability and reports to the Board of Directors.
The Sustainability Committee meets once every quarter.
The Remuneration Committee consists of two internal members and three outside members of theBoard of Directors, headed by Hiroshi Kobe, Representative Director and President (Chief Operating
Officer) as the chairperson. The Committee members discuss basic policies and systems forremunerations of directors in response to consultation from the Board of Directors, and reports theresults back to the Board of Directors.
The Risk Management Committee is placed under the Board of Directors and is headed by the person
appointed by the Board of Directors as the chairperson, to decide risk management policies andmeasures, and submit reports and proposals to the Board of Directors. It also monitors the companywide risk management status and constantly reviews the adequacy of allocation 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.

Compliance Committee

The Compliance Committee is placed under the Board of Directors to discuss and decide basic
compliance policies and measures, as well as to monitor the status of implementation of various
compliance measures and provide instructions for improvement. The Compliance Committee meetsonce every two months.

Information Security
Committee

The Information Security Committee is placed under the Board of Directors to formulate basic policies
concerning information security, as well as to monitor the status of implementation of various
information security measures and provide instructions.

CSR Committee

The CSR Committee is placed under the Board of Directors and is headed by Akinobu Samura,
Senior Vice President (chief 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 other important matters.
Matters decided at the CSR Committee meetings are reported, or discussed if necessary, at the Board of
Directors’ meeting, and are put into action by the Investor Relations & CSR Promotion Department,
which serves as the dedicated secretariat, in cooperation with business sites inside and outside of Japan.

Name

Reasons for appointment

Shinichi
Sato

Audit &
Supervisory
Committee

Remuneration
Committee

Mr. Sato has held prominent posts at the Ministry of Finance of Japan andother organizations. He will provide Nidec with advice on its overall business
operations based on his high level of expertise, which will further enhance
the company’s corporate governance function.
Since he meets all the requirements for independent directors from thepast to the present in accordance with the regulations of the Tokyo Stock
Exchange, Nidec judged that there were no potential conflicts of interest
between him and ordinary shareholders, and therefore designated him as anindependent director.

—

—

―

―

Yayoi
Komatsu

Ms. Komatsu has held prominent posts at the Ministry of Education, Culture,
Sports, Science and Technology of Japan and other organizations. She will
provide Nidec with advice on its overall business operations based on herhigh level of expertise, which will further enhance the company’s corporate
governance function.
Since she meets all the requirements for independent directors from thepast 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 designated her as anindependent director.

―

—

―

―

TakakoSakai

Ms. Sakai is currently a professor at the Graduate School of Law, Osaka
Metropolitan University. She will provide Nidec with advice on its overallbusiness operations based on her high level of expertise as a university
professor, which will further enhance the company’s corporate
governance function.
Since she meets all the requirements for independent directors from thepast 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 designated her as anindependent director.

21

15

2

She actively provides opinions at themeetings of the Board of Directors andthe Audit and Supervisory Committee
based on her high-level academic
expertise as a university professor in
the field of taxation and accounting
from an independent and objective
standpoint, fulfilling the supervisory
function of management. Also, as amember of the Remuneration
Committee established as aconsultative body to the Board of
Directors of Nidec, she plays animportant role in ensuringtransparency of the process to decide
remuneration for directors anddetermining the adequacy of theirremuneration. As a member of the
Audit and Supervisory Committee, she
contributed to audits by the Audit andSupervisory Committee on theexecution of duties by members of theBoard of Directors.

Aya
YamadaMs. Yamada is currently a professor at the Graduate School of Law, Kyoto
University. Her advice, based on her high-level expertise as a university
professor from an independent position, will help the Board of Directors
strengthen its decision-making and audit and supervisory functions.
To promote education and research, Nidec donates money to an endowed
course “Advancing Electrical Equipment to Realize a Friendly Global
Environment,” at Kyoto University Graduate School of Engineering. The amountof the donation, 49 million yen in fiscal 2017 (compared to the total amount of
donation to the university during the same fiscal year of 4,848 million yen),
45 million yen in fiscal 2018 (compared to 5,163 million yen), 39 million yen in
fiscal 2019 (compared to 5,352 million yen), 39 million yen in fiscal 2020
(compared to 5,766 million yen), and 39 million yen in fiscal 2021, is insignificant
compared to the total amount of donation to the university. In addition, giventhat Ms. Yamada’s department is not the one to which Nidec made its donations,and that Ms. Yamada is not in a position to represent the university, Nidec
believes there is no conflict of interest between Nidec and Ms. Yamada, andtherefore there is no problem regarding her independence.

19

15

—

She actively provides opinions at themeetings of the Board of Directors andthe Audit and Supervisory Committee
based on her high-level academic
expertise as a professor in the field of
law from an independent and objective
standpoint, fulfilling the supervisory
function of management. As a memberof the Audit and Supervisory
Committee, she has also contributed
to audits by the Audit and Supervisory
Committee on the execution of duties
by members of the Board of Directors.

TamameAkamatsu

Ms. Akamatsu currently serves as Chairperson of the Board and President of
Kyoto City University of Arts. Her advice, based on her high-level expertise as auniversity chairperson from an independent position, will help the Board of
Directors strengthen its decision-making and audit and supervisory functions.
Since she meets all the requirements for independent directors from thepast 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 designated her as anindependent director.

―

—

―

―

Junko
Watanabe

Ms. Junko Watanabe currently works as a professor of the Graduate School of
Economics, Kyoto University. Her advice, based on high-level expertise as auniversity professor from an independent position, will help the Board of
Directors strengthen its decision-making and audit and supervisory functions.
To promote education and research, Nidec donates money to an endowed
course “Advancing Electrical Equipment to Realize a Friendly Global
Environment,” at Kyoto University Graduate School of Engineering. The amountof the donation, 49 million yen in fiscal 2017 (compared to the total amount of
donation to the university during the same fiscal year of 4,848 million yen),
45 million yen in fiscal 2018 (compared to 5,163 million yen), 39 million yen in
fiscal 2019 (compared to 5,352 million yen), 39 million yen in fiscal 2020
(compared to 5,766 million yen), and 39 million yen in fiscal 2021, is insignificant
compared to the total amount of donation to the university. In addition, giventhat Ms. 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 Nidec and Ms. Watanabe,
and therefore there is no problem regarding her independence.

—

—

—

—

4 Executive Management Meeting
The Executive Management Meeting convenes once a month to assess the present state of business and determine thenext course of action, based on the monthly performance data and outcome of discussions at respective meetings whereimportant group-wide concerns are shared among administrative departments, subsidiaries and business units.
5 Management Committee

NIDEC CORPORATIONThe Management Committee, the consultative body to the Representative Director and Chairman, is held and chaired by
the President and Chief Executive Officer twice a month in principle to discuss overall operational directions, plans andother important considerations in the execution of business.

59

Activities

Board ofDirectors* During the fiscal year under review, the Board of Directors held 22 meetings, the Audit and Supervisory Committee held 15 meetings, and the Remuneration Committee met twice.

Materiality Initiatives

Sustainability Committee

Status of attendance(number of meetings attended)

Description

INTEGRATED REPORT 2022

Name

60

GovernanceCategory

Number of
eligible
persons

Members of the Board of Directors (excluding those whoare members of the Audit and Supervisory Committee andoutside members of the Board of Directors)

215

129

59

27

—

7

Audit and Supervisory Committee members (excluding
outside members of the Board of Directors)

34

34

—

—

—

2

Outside directors

35

35

—

—

—

5

*1 The above performance-linked remuneration includes the amount paid to five members of the Board of Directors who resigned during the 48th period.
*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 ofexpenses 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. Total amount of consolidated remuneration, etc. of each director
Name

Total amount of
remuneration(million yen)

Total amount by type of remuneration (million yen)
Director
category

Company
category

Fixed
remuneration

Variable
remuneration

Performancelinked share-based
remuneration

Shigenobu Nagamori

103

Representative
Director

Company subject
to submission

55

32

16

1. Policies on remuneration for Members of the Board of Directors

Jun Seki

117

Representative
Director

Company subject
to submission

74

27

16

1 Basic policy

2 Composition of the remuneration

The remuneration for Nidec’s directors is determinedbased on the following policy, to enhance the company’s
global competitiveness and secure the sustainable growthof its businesses.

Outside Members of the Board of Directors (excluding
those who are members of the Audit and Supervisory
Committee)

Remuneration type

* Only directors whose total amount of remuneration is 100 million yen or more are presented.

Fixed remuneration
Members of the Board of Directors (excluding those who
are Outside Members of the Board of Directors andmembers of the Audit and Supervisory Committee)
Fixed remuneration : Variable remuneration (bonuses) :Performance-linked share-based remuneration = 3 : 1.5 : 1

Description

Payment method

Fixed remuneration

Determined based on job rank

Monthly in cash

Variable remuneration(bonuses)Degree of achievement of the target consolidated net sales and consolidated operating
profit of the previous fiscal year
Taking into consideration the performance of the directors
Variable within a range from zero to twice the median of variable remuneration

Monthly in cash

Standard amount for each job rank x Degree of achievement of the target consolidated net
sales and consolidated operating profit
Points are provided within a range from 0 to 200%
After three fiscal years, the company’s shares equivalent to the accumulated points and theamount of money equivalent to the shares converted into cash are provided and paid

After three fiscal years(shares and money)

Performance-linked
share-based
remuneration

NIDEC CORPORATION

Total amount by type of remuneration (million yen)
Total amount of
Performanceremuneration
Fixed
Variable
Retirement
linked(million yen)remuneration remuneration
benefits
remuneration

Executive remuneration

Increase motivation toward improving corporate value;
Contribute to securing talented managerial humanresources; andEnsure that the level of the remuneration is appropriate
for the scale and area of Nidec’s businesses.

61

by three days prior to the day of the meeting, while
documents related to the proposals to be deliberated in
the meeting of the Audit and Supervisory Committee aresent to the members, at the latest one day before themeeting. After a meeting of the Audit and Supervisory
Committee, meeting minutes are sent to all Audit andSupervisory Committee Members. Furthermore, for
Outside Members of the Board of Directors who are Audit
and Supervisory Committee Members, various informationis reported and provided as necessary by full-time Audit
and Supervisory Committee Members and Nidec’s
executive officers.
Outside Members of the Board of Directors who are notmembers of the Audit and Supervisory Committee haveinformal meetings with the Audit and Supervisory
Committee members, where various information isprovided by Nidec’s executive officers. They also inspect
the field sites of subsidiaries using the Web.

3 Procedure to decide the remuneration amounts

4 Forfeiture, etc. of remuneration (clawback/malus)

The amounts of fixed and variable remunerations forindividual directors (excluding members of the Board of
Directors who are members of the Audit and Supervisory
Committee) are determined by the Board of Directors basedon reports submitted by the Remuneration Committee,
which is a voluntary advisory body, in accordance with thecriteria specified by this policy. Similarly, the details of theperformance-linked share-based remuneration aredetermined by the Board of Directors based on reports
submitted by the Remuneration Committee.

The amounts of fixed and variable remunerations may be
reduced if the recipient has caused serious damage to thecompany by obtaining the consent of the recipient.
Based on the performance-linked share-based
compensation plan, if any individual to be issued sharesshould, on or after the day when his/her right to receive
compensation is finalized, commit an illegal action such asa material violation of his/her duties or internal rules/
regulations, the company may request that the individual
pay restitution.

Materiality Initiatives

The General Affairs Department, which acts as thesecretariat for the Board of Directors, supports the Outside
Members of the Board of Directors. The General Affairs
Department provides the outside directors with thecompany’s information in a timely manner, andcorresponds to their inquiries through day-to-day
communication. With regard to the meetings of the Boardof Directors, the General Affairs Department provides all
members of the Board of Directors with materials related
to the proposals for the meetings and accounting
information, at the latest one day before the day of themeeting. In addition, assistance is provided by the
Corporate Administration & Internal Audit Department,
Nidec’s internal audit department, to Outside Members of
the Board of Directors who are Audit and Supervisory
Committee Members. When a meeting of the Audit andSupervisory Committee is held, meeting notices are sentout to all the Audit and Supervisory Committee Members

2. Total amount of remuneration by category of directors and by type of remuneration,and the number of eligible directors

Internal control
The Nidec Group commits itself to enhancing its
management soundness and transparency by establishinga compliance system generally required of a listedcompany in Japan, and clarifying its risk management
responsibilities. Specifically, through the auditing activitiesof the Corporate Administration & Internal Audit
Department, the Group aims to maintain and improve theeffectiveness of its internal control over financial reporting
required by Article 24-4-4, Paragraph 1 of the Financial
Instruments and Exchange Act. In addition, the Legal &Compliance Department, the Risk Management
Committee, the Information Security Committee and the

CSR Committee are organized under the Board of
Directors, under which the Legal & Compliance Office, theRisk Management Office, the Information Security
Management Office, and the IR & CSR Promotion
Department are placed as the secretariat respectively,
working to create a corporate culture and enhance
management systems for internal control.
Materiality Phase 3 KPI
Expand audit resources qualitatively and quantitatively
based on the assumption of a sales scale of 5 trillion yen.

Corporate governance of Group companies
The Nidec Group companies operate under Nidec’s
mission statement and policies, and therefore they areincorporated in Nidec’s internal control system. The Group
companies, to which Nidec sends some directors andemployees, have sufficient discussions before making

decisions on business execution that correspond to thecircumstances of each company, based on specialists’opinions as necessary, thereby endeavoring to assure
their independence.

INTEGRATED REPORT 2022

Support systems for Outside Members of the Board of Directors

62

Governance

Cross-shareholding
Organization
Board of Directors meeting every year, on not only
qualitative aspects such as the purpose of theshareholding, but also on quantitative aspects such as thebenefits that can accrue through the shareholding fromthe perspective of economic rationality. According to theresults of the assessment, Nidec intends to reduce thenumber of shares it holds if the cross-held shares are notexpected to bring significant benefits.

Criteria for exercising voting rights for cross-shareholding
With regard to the exercise of voting rights in relation tocross-shareholdings, Nidec makes comprehensive
decisions to vote for or against individual proposals toserve the investees’ sustainable growth from theperspective of whether appropriate governance andcompliance structures are in place at investee companies.
(Basic views on exercising voting rights)
With regard to the individual proposals submitted to theshareholders’ meetings of the companies Nidec invests in,

Nidec decides to vote for or against after confirming thefollowing points: whether the proposals suit the purposesof the shareholding which are to maintain and strengthen
the trade and cooperation relationships through mediumtolong-term investment; and particularly, whether there
are any circumstances that might lead to undermining of
the shareholders’ value due to the restructuring oforganizations, including asset transfer and mergers. Nidec
opposes all proposals that are considered to violate thelaw or constitute antisocial behavior, in all circumstances.

NIDEC CORPORATION

Follow thorough compliance with laws and regulations

63

Basic stance

Efforts made in FY2021

The Nidec Group sees non-compliance as a material riskthat may lead to a loss of social trust and economic
damage. Therefore, the Nidec Group comprehensively
follows applicable laws, regulations, internal rules andstandards, social ethical standards, etc. to raise executives’and regular employees’ ethical awareness, develop
conscience as a company, and win society’s trust as we
continue our compliance activities.
At present, we are working to establish and enhance a
global compliance system that will enable us to address
individual issues and cases arising in different regions
more promptly and appropriately. We will also strengthen
compliance education for employees to further raise theircompliance awareness, thereby reducing compliancerelated risks.

The Nidec Group currently has 345 group companies in 43
countries around the world. We recognize that building agovernance system for these globally distributed groupcompanies is a crucial task in ensuring compliance.
In particular, based on our past experience, we see
difficulty in identifying the risks of small companies located
far from major bases.
Therefore, we launched a hazard map project in FY2021
with the aim of preventing compliance risks from arising atthese remote small sites. In this project, we identified highrisk group companies based on their distance from major
sites and the information on the risk of corruption incountries where they are operating and implemented
specific prevention measures in consultation with the
management of such companies and other risk
reduction activities.

Materiality Phase 2 KPI
Expand the legal affairs and compliance system to all
Group companies starting from Nidec Corporation andregional management companies (China, the U.S. andEurope).
Identify serious non-compliance risks and take priority
measures.
Provide compliance education to all employees once a year.

Toward the future

We will continue the hazard map project for a certain
period of time to identify high-risk companies in orderfrom those with the highest risk and implement necessary
measures, thereby reducing the governance risk at remotesmall sites.

Nidec’s Legal & Compliance Department, working in
partnership with Regional Compliance Officers of theindividual regions where the Nidec Group’s businessbases operate (the Americas, China, Europe, andSoutheast Asia) and Compliance Managers and Promotersof individual business departments and group companies,
builds and operates a global compliance system.
Compliance Managers implement and operatecompliance-related measures to raise the complianceawareness of the organizations under their supervision,and bear responsibility for preventing complianceviolations. Compliance Promoters promote the specificcompliance measures of such organizations, while serving
as a liaison with the Legal & Compliance Department andRegional Compliance Officers, who provide support forindividual regions’ Compliance Managers and accept
whistleblowing cases.

Internal reporting system
As part of the comprehensive, group-wide compliancesystem, we have established an internal reporting section(the Nidec Global Compliance Hotline) available for allboard members, executives and employees (including
regular and part-time employees, those dispatched fromoutside agencies, limited-term employees, and those whohave retired from the Nidec Group within a year), and athird-party contact point outside the company. Fiscal 2021
saw a total of 124 cases of whistleblowing andconsultations made on suspected misconduct andharassment, among others, an increase of 8 cases fromthe previous fiscal year. The status of internal reports isreported to the Board of Directors and the Audit andSupervisory Committee on a regular basis.

Number of cases

FY2018FY2019FY2020

FY2021

106

142

116

124

Compliance seminars
As part of the compliance promotion activities, we holdcompliance seminars for our group’s executives andemployees to maintain and improve their level ofcompliance awareness. For example, seminars anddiscussions are held on such topics as cartels, bribery andhuman rights issues, with the Regional Compliance
Officers serving as lecturers using the Nidec ComplianceHandbook as teaching material. The compliance seminarfor board members and executives is also held once a year,with the invitation of an outside lecturer.

Materiality Initiatives

Nidec holds shares in the companies that Nidec has
relationships with in terms of trading and cooperation in its
business and other areas, when it judges that suchshareholding contributes to the company’s corporate value
expansion through stabilization of its business from a
medium-tolong-term perspective by maintaining andstrengthening its relationship with those companies.
Nidec assesses its cross-held shares individually at the

The Nidec Group’s global compliance system
Shareholders’ Meeting
Audit and Supervisory Committee

Board of Directors
Compliance Committee

Compliance Promoters are placed inindividual organizations under thesupervision of the Compliance Managers.

[Members]
Chair: Chief Compliance Officer
Members: Management Committee members
Secretariat: Legal & Compliance Department

Working on specific compliance measures
for the entire Group

Legal & Compliance Department
Regional Compliance Officers

Addressing compliance issues unique toindividual countries/regions

Compliance Managers and Promoters
Business Units

Administrative
departments

Group companies(including overseas subsidiaries)

Managers

Head of eachbusiness unit

Director in charge
ofeach department

President

Promoters

GM of each organization/department

Head of administrative department

INTEGRATED REPORT 2022

Policy for cross-shareholding64Promote information security measures

Basic stance

Basic stance

Efforts made in FY2021

The Nidec Group possesses information that is necessary
for conducting its business activities, including not only the
information produced or gathered within the Group but
also information provided by its business partners.
We understand that it is very important to protect and use
these information assets properly and appropriately.
Information that should be protected includes
management information, technical information, financial
information and personal information, which are extremely
important. Deterioration or leakage of any suchinformation may lead to loss of trust in us from ourcustomers or the market, as well as a decline in ourcompetitiveness. It may also result in a legal penalty.
Based on this understanding, in 2019, Nidec appointed a
Chief Information Security Officer and set up an
Information Security Committee, under which an
Information Security Management Office was placed as adepartment dedicated to information security. Also, eachorganization of the Group has an information security
manager and an information security promoter in place tosupport the Group’s information security management.
Since FY2019, information security training has been
continuously provided for directors and employees.
During the information security enhancement month eachyear, information on the theme for the year is communicated to raise the awareness of information security of
directors and employees.
We will continue to identify and assess rapidly changing
and increasing information security risks, and make efforts
to ensure the proper protection and use of our
information assets by operating effective systems
appropriate for individual risks under the Group’s
information security structure, with the aim of achieving
the target of zero serious security incidents.

We introduced a function for detecting intrusion ofransomware and other malicious programs to prevent
them from interrupting our corporate activities, separated
networks within sites, and formulated an emergency
manual and conducted training based thereon.
To prevent important technical information from leaking,we also introduced a dedicated receiving system that allows
downloading of such information only with approval of theperson in charge and records all the operations on it.
Furthermore, to make the cyber security measures on
our automotive products more secure, we haveestablished processes and systems to manage the cybersecurity risks of the products at all stages fromdevelopment to production, and after shipment, based on
ISO/SAE 21434, an international standard for this field.

It is necessary and important to identify and manage risks
for the purpose of preventing the expansion of losses due
to lack of readiness for possible risks, loss of business
opportunities, decline of ratings, and other negative
impacts. Nidec has identified risks facing the Nidec Group,
clarified the relevant departments, and determined therisks that should be reduced in order of priority.
The company manages the progress of reducing theimpact of such risks on our business, while working toenhance its initiatives to identify signs of risks.
Materiality Phase 2 KPI
All risks disclosed on the securities reports are evaluated by
the department in charge, and the risks to be addressed inpriority are identified.
Reduce the impact of the risks to be addressed in priority
on our business. Manage the progress of reducing suchimpact and any residual risks.

Efforts made in FY2021
We reviewed our risk management system and establisheda framework in which risk surveys are conducted for eachof the levels illustrated below and the survey results areshared and mutually used. In FY2021, we conducted risk
assessment of the head offices of the group companies
positioned in the Business Unit level (L2), and identified
their priority risks and considered risk reduction activities.
The identified risks were also examined for the corporate
level (L3), and the company-wide issues that should be
addressed in L3 were reflected in the risk management
activities for L3 as necessary.
Corporate level(Department in charge of the risk)

L3

Business Unit level

L2

Business site level

L1

NIDEC CORPORATION

L = Level

65

Toward the future
In FY2022, we will start operating a new risk management
system at all Business Units. For serious contingent risks
that may lead to business interruption, the Business Unitlevel (L2) organizations will periodically check the status of
the formulation of BCPs (Business Continuity Plans) of the
major business site* level (L1) organizations under theircontrol, thereby ensuring that improvement activities arecontinuously conducted for risk reduction.
* Major business sites: Business operation sites that make up 80% of sales of theBusiness Unit or Group company they belong to

Risk management system
The Nidec Group uses a medium-term business plan,
which is designed to realize the group’s long-term visionthat is defined as a set of specific numerical and qualitative
targets, as a basis of the group’s business plan for eachfiscal year. The medium-term plan is formulated based on
discussions on its feasibility as a medium-term goal,consistency with the long-term vision, and issues and risks
to overcome for its achievement. The plan may be revised(rolled) during its execution phase according to changes in
the market and the status of progress.
We have also formulated the Risk Management
Regulations to establish a risk management system for theentire Nidec Group, and have in place a Risk Management
Committee under the Board of Directors. Important
information is promptly reported and shared in the risk
management meeting held every morning, so that the
information can be utilized in our daily operations.
It is also discussed and shared in the Management
Meeting as necessary.
BCP (Business Continuity Plan)
Starting from March 2014, the Nidec Group has conducted
BCP simulation training assuming such risks as anearthquake, flooding, drought, outbreak of an infectious
disease, and fire, at its sites both inside and outside Japan.
As of March 31, 2021, over 3,100 employees had
participated in the training. At the end of January 2020, we
set up a COVID-19 Crisis Management Headquarters,
working to revise the company’s BCP based on theassumption that the pandemic would be prolonged.
Risk Management Committee
The Risk Management Committee is placed under the
Board of Directors and chaired by the executive officer incharge of risk management. The Committee decides risk
management policies and measures and submits reports
and proposals to the Board of Directors. It also monitors
the company-wide risk management status and constantly
reviews the adequacy of allocation of resources necessary
for risk management. Based on the annual policies
established by the Risk Management Committee,
department general managers in charge of risk
management and Group companies formulate and carryout their respective annual risk management plans.

Materiality Phase 2 KPIReduce the number of serious information security incidents

to zero.

Information security structure
Board of Directors
Information Security
Committee

CISO

Chief Information
Security Officer

Information Security
Management OfficeInformation Security Manager
Each business unit, group company

Information Security Promoter
Each business unit, group company

Toward the futureEnhancing information security for the entire
Nidec Group
Seeing cyber attacks becoming an everyday event,increasing the associated information security risks,
we will work to reduce our vulnerabilities by enhancing
and improving the information security of the entire
Nidec Group, including companies that joined the Groupthrough M&A.
We will reinforce the information security measures foremail, internet access, and storage media, through which
intrusion of malicious programs or leakage of information
may occur, and install functions to detect signs of malicious
programs at end points, control Web access and restrict
external storage media at all sites of the Nidec Group.
By installing these functions, we aim to ensure that
security measures are implemented evenly at a high level.
Cyber security measures for automotive products
Today, automobiles are expected to evolve significantly.
By being connected to society through the Internet, they
will be equipped with the ability to grasp accurate traffic
information and utilize autonomous driving technology.
On the other hand, the risk of information leakage ormalicious cyber attacks is also foreseen. Therefore, we aremaking efforts to enhance our security technologies.
Nidec’s Intelligent Motor for automobiles incorporates
technologies not only to make the system smaller andmore efficient but also to protect the system from cyberattacks. We will continue to monitor cyber risks in themarket, which are expected to change in the future, anddeliver safe and reliable products to customers byimplementing necessary measures, such as updating
software if any risk arises.

INTEGRATED REPORT 2022

Build a risk management system

Materiality Initiatives

Governance66

GovernanceManagement (as of November 1, 2022)
Board of Directors
Career summary

June 2018
June 2021
April 2022

Significant concurrent positions

Chairman of the Board, Nagamori Gakuen Educational
Foundation

Shigenobu Nagamori

Hiroshi Kobe

(Born on August 28, 1944)(Born on March 28, 1949)

Representative Director and Chairman
Chief Executive Officer (CEO)Remuneration Committee Member

Representative Director and President
Chief Operating Officer (COO)
Remuneration Committee Member

Number of the Company’s
49,473,000
shares possessed:

Number of the Company’s
shares possessed:

948,000

Career summary

Member of the Board of Directors
Audit and Supervisory Committee
Member(Born on January 18, 1955)

Number of the Company’s
shares possessed:

3,000

Significant concurrent positions

Hiroyuki Ochiai

Member of the Board of Directors
Audit and Supervisory Committee
MemberSustainability Committee Member(Born on July 3, 1959)

Number of the Company’s
shares possessed:

1,000

Auditor of Nidec Sankyo Corporation
Auditor of Nidec Mobility Corporation
Auditor of Nidec Tosok Corporation
Auditor of Nidec Copal Electronics Corporation
Auditor of Nidec Copal Corporation
Auditor of Nidec Elesys Corporation
Auditor of Nidec Servo Corporation

NIDEC CORPORATION

67(Born on November 4, 1956)

Number of the Company’s
shares possessed:

—Significant concurrent positions

Executive Consultant, Suntory Holdings Limited

March 2007
October 2007
April 2018
June 2020
April 2022
June 2022

Takako Sakai

Significant concurrent positions

Professor, Graduate School of Law, Osaka Metropolitan
University

Outside Member of the Board of
Directors
Remuneration Committee Member
Sustainability Committee Member(Born on August 28, 1972)

Number of the Company’s
shares possessed:

Career summary

April 1990
April 1995
April 2003
April 2006
June 2020

Research Associate, Faculty of Law,
Tohoku University
Assistant Professor, Faculty of Law,
Okayama University
Assistant Professor, Graduate School ofLaw, Kyoto University
Professor, Graduate School of Law,
Kyoto University (current position)
Outside Member of the Board of Directors
who is an Audit and Supervisory
Committee Member, Nidec Corporation(current position)

Significant concurrent positions

Professor, Graduate School of Law, Kyoto University

Aya Yamada

Outside Member of the Board of
Directors
Audit and Supervisory Committee
MemberRemuneration Committee Member(Born on February 12, 1967)

0

Number of the Company’s
shares possessed:

—Career summary
April 1993
April 2004
April 2010
April 2018
April 2019
June 2022

Career summary

Lecturer, Oil Painting, Faculty of Fine Arts,
Kyoto City University of Arts
Assistant Professor, Faculty of Fine Arts,
Kyoto City University of Arts
Professor, Faculty of Fine Arts, Kyoto City
University of Arts
Dean, Faculty of Fine Arts, Kyoto City
University of Arts
Chairperson of the Board and President,
Kyoto City University of Arts
(current position)
Outside Member of the Board of Directors
who is an Audit and Supervisory
Committee Member, Nidec Corporation(current position)

April 1994
April 1997
April 1998

October 2002

April 2004
March 2005

Significant concurrent positions

July 2011

Chairperson of the Board and President, Kyoto City
University of Arts

Tamame Akamatsu

October 2011

Junko Watanabe

Outside Member of the Board of
Directors
Audit and Supervisory Committee
MemberSustainability Committee Member

Outside Member of the Board of
Directors
Audit and Supervisory Committee
MemberSustainability Committee Member(Born on December 8, 1959)

April 2012
August 2012
June 2016(Born on October 17, 1965)

Number of the Company’s
shares possessed:

Number of the Company’s
shares possessed:

—April 2020—
October 2022

Professor, Graduate School of Economics & Faculty of
Economics, Kyoto University
Outside Member of the Board of Directors (Audit andSupervisory Committee Member), Morozoff Limited

April 1981

Yayoi Komatsu

Outside Member of the Board of Directors(Born on March 23, 1959)

Number of the Company’s
shares possessed:

—The Ministry of Education, Science, Sports
and Culture of Japan (currently the
Ministry of Education, Culture, Sports,
Science and Technology of Japan (MEXT))
April 2001
Director, Early Childhood Education Division,
Elementary and Secondary Education
Bureau, the Ministry of Education, Culture,
Sports, Science and Technology
April 2003
Director, Medical Education Division, Higher
Education Bureau, the Ministry of Education,
Culture, Sports, Science and Technology
July 2004
Counsellor to the Cabinet Office’s DirectorGeneral for Science and Technology Policy(currently the Secretariat of Science,
Technology and Innovation Policy)
July 2005
Director, Traditional Culture Division, theCultural Properties Department, theAgency for Cultural Affairs
April 2007
Director, the Director-General’s
Secretariat, the Agency for Cultural Affairs
July 2009
Deputy Director-General, the Science andTechnology Policy Bureau, the Ministry of
Education, Culture, Sports, Science andTechnology
July 2010
Director-General, the Cultural Affairs
Department, the Agency for Cultural Affairs
January 2012 Trustee and President, the Independent
Administrative Institution National
Museum of Art
August 2015
Director-General, Research Promotion
Bureau, the Ministry of Education, Culture,
Sports, Science and Technology
December 2016 Left MEXT
May 2022
Executive Director, The National Museumof Modern Art, Tokyo (current position)
June 2022
Outside Member of the Board of Directors,
Nidec Corporation (current position)

Significant concurrent positions

Executive Director, The National Museum of Modern Art,Tokyo

Research Associate, Faculty of Economics,
Hokkaido University
Research Associate, Graduate School of
Economics & Faculty of Economics, The
University of Tokyo
Assistant Professor, Faculty of Humanities &Social Sciences, Shizuoka University
Assistant Professor, Department of
Human Communication, Faculty ofElectro-Communications, The University ofElectro-Communications
Assistant Professor, Graduate School of
Economics & Faculty of Economics, Kyoto
University
Visiting Scholar, The University of Paris 7 Denis Diderot (France)
Received a Ph.D. in Economics from Kyoto
University
Visiting Scholar, Edwin O. Reischauer
Institute of Japanese Studies, Harvard
University
Professor, Graduate School of Economics &Faculty of Economics, Kyoto University(current position)
Visiting Associate Professor, Graduate
School of Economics & Faculty of
Economics, The University of Tokyo
Member of the Audit & Supervisory Board(External), Nidec Corporation
Outside Member of the Board of Directors(Audit and Supervisory Committee
Member), Morozoff Limited(current position)
Outside Member of the Board of Directors
who is an Audit and Supervisory
Committee Member, Nidec Corporation(current position)

Significant concurrent positions

Career summary

April 1980
July 1985

Outside Member of the Board of Directors
Remuneration Committee Member

The Ministry of International Trade andIndustry of Japan (currently the Ministry of
Economy, Trade and Industry of Japan (METI))
July 2000
Director, Foreign Exchange and Trade
Finance Division, Trade Bureau
July 2002
Director-General, International Cooperation
Department, New Energy and Industrial
Technology Development Organization(currently National Research and Development
Agency New Energy and Industrial Technology
Development Organization)
July 2003
Director, Personnel Division, Japan
Patent Office
October 2005 Director, Trade Promotion Division, Tradeand Economic Cooperation Bureau
August 2006
Counsellor, Minister’s Secretariat, theMinistry of Agriculture, Forestry and
Fisheries of Japan
July 2008
Counsellor, Cabinet Secretariat (AssistantChief Cabinet Secretary)
August 2010
Seconded to Nidec Corporation
August 2012
Returned to METI. Director-General, Training
Institute of Economy, Trade and Industry
December 2012 Left METI
March 2013
General Manager, General Affairs
Department, Nidec Corporation
June 2018
Fulltime Member of the Audit &Supervisory Board
June 2020
Member of the Board of Directors who is an
Audit and Supervisory Committee Member(current position)

Significant concurrent positions

Career summary

Shinichi Sato

Director of Nidec Servo Corporation
Director of Nidec Global Service Corporation

April 2003

Research Associate, Graduate School ofLaw, Kyoto University
Lecturer, Graduate School of Economics,
Osaka Prefecture University
Completed Doctoral Program at Graduate
School of Kyoto University and received aDoctor of Laws (LL. D.)
Associate Professor, Graduate School of
Economics, Osaka Prefecture University
Professor, Graduate School of Economics,
Osaka Prefecture University
Outside Member of the Board of Directors
who is an Audit and Supervisory
Committee Member
Professor, Graduate School of Law, Osaka
Metropolitan University (current position)
Outside Member of the Board of
Directors, Nidec Corporation(current position)

April 1983

Auditor of Nidec-Read Corporation
Auditor of Nidec-Shimpo Corporation
Auditor of Nidec Techno Motor Corporation
Auditor of Nidec Machine Tool Corporation
Auditor of Nidec Global Service Corporation
Auditor of Nidec Machinery Corporation

The Ministry of Finance of Japan (MOF)
Director, Karatsu Tax Office, Fukuoka
Regional Taxation Bureau
July 1997
Deputy Director-General, the Embassy ofJapan in the UK, the Ministry of Foreign Affairs
July 2000
Director, the Administrative Management
Bureau, the Management andCoordination Agency (currently the Ministryof Internal Affairs and Communications)
July 2002
Budget Examiner for Education, Culture,
Sports, Science and Technology, theBudget Bureau, the Ministry of FinanceJuly 2003
Director, the Research Division, the Tax
Bureau, the Ministry of FinanceJuly 2004
Director, Indirect Tax Policy Division, theTax Bureau, the Ministry of FinanceJuly 2005
Director, Income Tax and Property Tax
Policy Division, the Tax Bureau, theMinistry of FinanceJuly 2006
Director, Secretarial Division, the Minister’s
Secretariat, the Ministry of FinanceJuly 2009
Deputy Director-General, the Tax Bureau,
the Ministry of Finance
January 2010 Councilor, Cabinet Secretariat(Assistant Chief Cabinet Secretary)
August 2011
Deputy Vice Minister for Policy Planningand Co-ordination, the Minister’s
Secretariat, the Ministry of Finance
June 2013
Director-General, the Minister’s
Secretariat, the Ministry of FinanceJuly 2014
Director-General, the Tax Bureau, theMinistry of Finance
June 2016
Vice-Minister of FinanceJuly 2017
Left MOF
November 2017 Executive Consultant, Suntory Holdings
Limited (current position)
June 2022
Outside Member of the Board of Directors,
Nidec Corporation (current position)

Significant concurrent positions

April 2002

Career summary

April 1977
July 1983

Kazuya Murakami

The Ministry of Finance of Japan
Director, Ise Tax Office, Nagoya Regional
Taxation Bureau
July 1984
Executive Director’s Assistant,
International Monetary Fund
June 1996
Director, Central Asia Team, European
Bank for Reconstruction andDevelopment (EBRD)
July 2002
Director-General, the Fukuoka Local
Finance Branch Bureau, the Ministry of
Finance of Japan
July 2004
Deputy Director-General, Minister’s
Secretariat (in charge of Customs andTariff Bureau)
July 2005
Board Director, EBRD
July 2008
Director-General, the Kanto Local Finance
Bureau, the Ministry of Finance of Japan
August 2009
Executive Director, Organization for
Small & Medium Enterprises andRegional Innovation, Japan
June 2012
Fulltime Member of the Audit &Supervisory Board, Nidec Corporation
February 2013 Registered as attorney-at-law, the Kyoto
Bar Association
June 2013
Vice President
June 2017
Fulltime Member of the Audit &Supervisory Board
June 2020
Member of the Board of Directors who is
an Audit and Supervisory Committee
Member (current position)

Participated in the foundation of Nidec
Corporation
March 1982
General Manager, Sales Department
November 1984 Member of the Board of Directors
November 1991 Member of the Board of Directors andSenior Vice President
April 1996
Member of the Board of Directors andFirst Senior Vice President
April 2000
Member of the Board of Directors andExecutive Vice President
April 2005
Chief Operating Officer (COO)
June 2006
Representative Director and Executive
Vice President
June 2015
Representative Director and Vice Chairman
Chief Sales Officer (CSO)
June 2020
Vice Chairman
May 2022
Chief Performance Officer (CPO)
June 2022
Representative Director and Vice
Chairman
September 2022 Representative Director and President(current position)
Chief Operating Officer (COO)(current position)

Career summary

July 1973

Materiality Initiatives

October 2014

Career summary

Founded Nidec Corporation,
Representative Director, Chairman of theBoard and President
Chief Executive Officer (CEO)
Representative Director, Chairman of theBoard and President
Chief Executive Officer (CEO)
Representative Director and Chairman
Chief Executive Officer (CEO)
Representative Director and Chairman(current position)
Chief Executive Officer (CEO)(current position)

Vice Presidents
First Senior Vice President

First Senior Vice President

First Senior Vice President

First Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Yoshihisa Kitao

Michael Briggs
Ryuji Omura

Takamitsu Araki
Maki Okajima
Hiroyuki Fujita

Masahiro Hishida

Valter Taranzano
Takeshi Horie

Takahiro Sato
Eiji Miyamoto
Takashi Kishimae

Toshihiko Koseki

Kazuya Hayafune
Fumiaki Ushio

Tomoko Hirata
Junichi Nagai

Mitsuya Kishida

Hiroshi Onishi

Noboru Kaneko

Akinobu Samura

Toru Takahashi

Kazutsugu Igarashi

Keitaro Murakoshi
Nakaba Kataoka

Senior Vice President

Hidetoshi Yokota
Shingo Tsuji

Yoshimitsu Gushiken
Tomonori Seta

Shin Kishimoto* The number of shares owned are rounded off to the nearest thousand.

INTEGRATED REPORT 2022

July 1973

68

Governance

Messages from Outside Members of the Board of Directors

Remuneration Committee
Member

I expect Nidec will evolve into a worldleading global company looking further
ahead into the future

Yayoi Komatsu

With technological innovation advancing,
I expect Nidec will respond to futureneeds of society and the market

NIDEC CORPORATION

Takako Sakai

69

Remuneration Committee
MemberSustainability Committee
MemberOvercoming difficulties and advancing
toward achieving consolidated net salesof 10 trillion yen

paradigm shift is taking place, it will be crucial to properly
respond to changes with “animal spirits” and move aheadof the times. I expect that Nidec will evolve into a worldleading global company looking further ahead into the
future to achieve sustainable growth by seriously facing
various social issues, including environmental challenges.
To this end, the Board of Directors should play a more
important role than ever. It is necessary to have an
overview of the trends of the world from a multifaceted
and broad perspective, and energetically discuss andexamine at the Board of Directors’ meetings the issues thatshould not be overlooked. I appreciate the intense but
fruitful discussions taking place at the Board of Directors

meetings. I also see the internal members of the Board of
Directors listening sincerely to opinions from outside
members and giving thorough explanations in response tothese questions.
As an outside member of the Board of Directors, I willcontinue my efforts to collect various information from a
global perspective and, at the same time, make use of myexperience and knowledge in carefully overseeing the
progress in achieving the targets and the status ofgovernance. While paying attention to communication withvarious stakeholders, I will raise issues and proposals
necessary for further improvement of corporate value.

I see active discussions taking place at Nidec’s Board of
Directors’ meetings, and explanations and answers toquestions by internal members of the Board are very clear
and thorough. However, at the meetings held online due
to COVID-19, communication was mostly on a one-on-one
basis between a speaker and a questioner. I hope more
active discussions will be held in the next face-to-facemeetings, including discussions among members of theBoard of Directors. I myself will try to speak out to help
improve the effectiveness of the Board of Directors.
ESG management is positioned as a major pillar of our
medium-term strategic goal Vision 2025, on which
sufficient discussions are being held at the Board of

Directors’ meetings. One of Nidec’s strengths is that its
efforts to refine the quality of motors, the core of its
business, will directly lead to the realization of a carbonfree society. I expect that ongoing efforts to achieve thetargets announced in Vision 2025 will be steadily made.
Regarding diversity, I see particular emphasis has beenplaced on the empowerment of non-Japanese and female
employees in recent years. Aiming to achieve thegovernment’s target of raising the percentage of women in
leadership positions to around 30% as soon as possible inthe 2020s, Nidec has been making efforts to promote
more women to managerial and executive positions, which
I expect will show results in specific figures.

In the future, it is predicted that technological innovation
will advance in all fields. Nidec has been working to
optimize existing technologies while engaging indeveloping new technologies, which makes me confident
that the company will be able to respond to the futureneeds of society and the market. To continue to respond toneeds, I think it is necessary to promote active industryacademia collaborations and proper intellectual property
management. I will do my best to gather information
related to technological innovation and thereby fulfill myrole as an outside member of the Board of Directors.

I appreciate the active discussions held at Nidec’s Board of
Directors’ meetings, as outside members of the Board areallowed to actively give their opinions and ask questions on
explanations by the directors in charge. With new female
members appointed to the Board of Directors in FY2022,
I think the company has been steadily building anappropriate governance structure as a company engaging
in global business activities.
Looking back on FY2021, the first year of the mediumterm strategic goal Vision 2025, I think a significant
achievement was that the company incorporated Nidec
Machine Tool Corporation and Nidec OKK Corporation into
the Group to expand the machine tool business as animportant segment of the Group. I also highly appreciate

the measures to ensure stable procurement ofsemiconductors and the allocation of specialized personnel
to the automotive business, a pillar of Nidec, to executestrategies boldly and steadily. In order to capture what
Nidec sees as Five Big Waves, advanced technology
development is necessary over the medium to long term.
Going forward, I think Nidec should make strategic efforts toenhance its human resources with specialized knowledge
particularly in the semiconductor field. To this end, I will
carefully examine every proposal submitted to the Board of
Directors while paying attention to Vision 2025.
Today, in the so-called era of VUCA (volatility, uncertainty,
complexity and ambiguity), the economic environment has
been continuing to be uncertain. Nidec is also in an

unprecedentedly difficult phase as the timing of thetransformation of its business portfolio and that of thegeneration change in management are coming at thesame time. However, the goal to be aimed at isdetermined, and I feel that all employees share the same
perspective. Nidec is still a young, and very hungry
company. Toward achieving the goal of consolidated net
sales of 10 trillion yen, Nidec is passionately developing
technologies while carefully formulating management
strategies, thereby overcoming difficulties and tirelessly
advancing. I will strive in my daily work while calmly
focusing on the goal.

INTEGRATED REPORT 2022

Shinichi SatoToday, drastic changes are taking place in our businessenvironment, such as the COVID-19 pandemic and theRussian invasion of Ukraine. With global warming and DX(digital transformation) accelerating, it is predicted that theera of hyper globalization will soon end and decoupling will
progress in each economic sector, indicating that we haveentered an era of paradigm shift.
Nidec has been swiftly reforming its governance system
under the management policy and philosophy that
Chairman Nagamori has fostered over a long time. I see it
is also a company a step ahead of others in such aspects
as corporate management, working environment, andproduct safety and quality standards. Now that a global

Materiality Initiatives

Nidec Corporation is committed to enhancing its governance for the purpose of achieving its sustainable growth and improved corporate value. The following are messages fromour six Outside Members of the Board of Directors, describing their evaluation of our Board of Directors and its future challenges, as well as their expectations of Nidec.

70

Audit and Supervisory
Committee Member
Remuneration Committee
MemberAs an outside member of the Board,
I am focusing efforts on the realizationof global-level governanceTamame Akamatsu
Audit and Supervisory
Committee Member
Sustainability Committee
Member

Expecting that Nidec will contribute tosolving global-scale environmental/social issues

Junko Watanabe

NIDEC CORPORATION

Audit and Supervisory
Committee Member
Sustainability Committee
Member71

Fulfilling duties with a sense of
responsibility and integrity, while
supporting ESG activities andsuccession of intangible assets

appointing members who have management experienceat global enterprises, including non-Japanese people, andyoung entrepreneurs.
Nidec is now promoting its medium-term strategic goal
Vision 2025. How the company can motivate the nextgeneration employees is the key to its future growth.
At R&D presentations and other opportunities, I have seen
many talented people making great efforts. To maintainand enhance these talents, it is necessary to strengthen
cooperation with universities and research institutions
both inside and outside Japan and improve their treatment.
For administrative departments, which will play a more
important role than before in global business expansion,achieving ESG-related targets, and expanding Investor

Relations activities, I think it is important to further
enhance the quality of human resources and provide
advanced post-recruitment education.
As for global business expansion, greater considerationfor each local country/region will be required. It is not
simply adapting to local customs and practices, but thesituation, culture, working conditions, and the social/environmental impacts associated with the Nidec’s
operations in each country/region should be thoroughly
analyzed, based on which the company should fulfill its
social responsibility required as a global company, before
advancing business development. As an outside memberof the Board, I will continue to focus efforts on therealization of global-level governance.

Today, the trend of accepting and respecting diversity isaccelerating in society. We are now in an era where weshould pay attention not only to women’s participation but
to all types of differences, such as people with disabilities,
different nationalities and LGBTQ, and try to findpossibilities in them. I am specialized in human resources
development in the field of art and therefore haveexperience different from Nidec’s business field.
Despite such background, I have had in-depth andthorough explanations on the Corporate Philosophy andpolicies, and discussions at the Board of Directors’ meetings.
This makes me feel that Nidec already has a culture oftrying to embrace diverse values. In order for Nidec tofurther promote diversity, I think the company should try

to recruit more executives who are well-versed in thehistory and culture of various foreign countries.
Besides the diversity issue, the global environment is not
an issue for the future but has become a real challenge
today. As a member of the Sustainability Committee, I will
think along with Nidec what is necessary to create a future
full of hope for younger generations. And I think these
initiatives should be made open to both inside and outside
the company. This will help demonstrate the presence ofNidec as a desirable place to work at or a company to bechosen for those who are feeling uncertain about the
future when the labor force will shrink further because offalling birthrate and the aging population.
Improving corporate value means not only improving

productivity or expanding business performance, but also
continuing to be a company of which its employees aroundthe world and people in local communities are proud.
If Nidec is able to establish a workplace environment
where all Nidec employees around the world understandthe direction to aim for and engage in their respective
duties, I believe it will lead to effective contribution tosolving global environmental and social issues.

I appreciate that Nidec’s corporate governance has
functioned properly through management decisions andPMI (post merger integration), development of internal
control and other efforts for growth, though there arevarious issues remaining. As Nidec will continue to expand
its business and organization on a global scale, it isnecessary to further enhance its governance structure.
As an element to strengthen governance, for example,
I expect moves to accelerate the diversification of themembers of the Board of Directors, such as appointing
certified public accountants and recruiting non-Japanese.
And, the most important point is that individual
members of the Board of Directors fulfill their role ofmonitoring and supervision with a sense of responsibility

and integrity. Being an Audit and Supervisory Committee
member, from the standpoint of an outside member of theBoard of Directors, I will engage in activities placing
particular emphasis on communication with internal
members of the company, as well as monitoring,accountability and transparency in view of the interests ofstakeholders both inside and outside the company.
Today, ESG investment has been rapidly spreading as ameans to encourage companies and individuals to change
their behavior and also contribute to the realization of asustainable society that the international community isaiming for. ESG activities are important in aiming forlong-term corporate growth, contribution to society,and increased corporate value, and they are essential for

Nidec as well. In line with this trend, passing down theintangible assets that Nidec has cultivated to future
generations is also important for increasing its corporate
value. Regarding this issue of succession of intangible
assets, I will actively make proposals from the standpointof an outside member and an objective perspective fromthe outside, thereby fulfilling my own duties.
INTEGRATED REPORT 2022

Aya Yamada

At Nidec, frequent information sharing and strategy
formulation by the Executive Management Meeting andthe Management Committee and timely examination anddecision making at the Board of Directors’ meetings workin coordination and enable Nidec’s governance structure
to meet the requirements of global information sharing
and speedy strategy formulation/decision making, which
are tasks difficult to achieve at the same time. Preparations
for the Board of Directors’ meetings are sufficiently madeand discussions at the meetings are reflected inmanagement policies. Thus, I consider that the Board of
Directors is functioning effectively. On the other hand,regarding the diversity of members of the Board of
Directors, I expect more diversity will be ensured byMateriality Initiatives

Governance72

Business Strategies

Review of FY2021

Net sales decreased 4.2% from the previous year to424,907 million yen (including the increase of approx.
28,500 million yen due to the impact of foreignexchange rates). Net sales of HDD motors decreased by
31.4% year on year to 98,783 million yen mainly due toa decrease in the sales volume. Net sales of other small
motors increased 8.9% from the previous year to326,124 million yen as a result of the market launch ofmany new products. Operating profit decreased 36.6%
from the previous year to 42,438 million yen (including
an increase of approx. 8,800 million yen due to theimpact of foreign exchange rates) mainly due to adecrease in sales.
In FY2021, both net sales and profit of the Small
Precision Motors segment were significantly affected by

the decline in the operation rate of our plants and thetemporary increase in expenses due to the impact of along lockdown in Vietnam in the second quarter, and adecrease in production of our customers due todisruption in supply chains and logistics. In addition,in the fourth quarter, production of our customers
decreased due to lockdowns in China, which, along with
disruption in the supply chain, affected our businessperformance.
In FY2022, we see signs of a decline in demand for
PCs and smartphones, while global shipments of HDDs
are expected to decrease significantly from the result of
FY2021. Therefore, attention should be paid to moves in
the IT industry, the main customer of the segment.

Net sales

Operating profit / Operating profit ratio(Millions of Yen)

(Millions of Yen)

500,000

452,376

80,000441,467

424,288443,598(%)

Growth strategies in Vision 2025
To achieve the net sales target of 800 billion yen (sales of
600 billion yen by organic growth and sales of 200 billion
yen through M&A) for the Small Precision Motors segment,
since the sales volume of IT devices such as PCs andsmartphones is leveling off as described above, it isnecessary to transform our business portfolio and place
greater focus on high-growth areas.
As an initiative to this end, in addition to thermal
management product (invested in Chaun-Choung
Technology Corporation (CCI), Taiwan in 2018), we havebeen focusing on motors for small EVs and electric twowheeled vehicles. As for small EVs, a low-price EV at aroundthe 400,000 yen level released in China in 2020 (the pricehas been rising in 2022 due to soaring raw material prices
and the weak yen) became the top seller in the EV market
in China in 2021, leading the expansion of the EV market.
Not only in China, export to Europe and emerging
countries has begun, which is expected to further expand
the market scale. We have received orders for andinquiries about motors for small EVs, and mass production
for customers is scheduled to begin in FY2022.
We estimate the potential demand for low-price EVs to bein the hundreds of millions units, and we thus expect
further business expansion in this field.

As for two-wheeled vehicles, the wave of electrification issurging as it has for four-wheeled vehicles. We recognizethat it is a market in which demand for motors for drive
units is expected to increase significantly. The existing
market scale of two-wheeled vehicles is about 60 million
units globally, of which India with around 25 million units
and China with around 15 million units (a part of them arefor exports) are the largest markets. Nidec is conducting its
sales activities mainly in these two countries and has
obtained orders from several top manufacturers.
Specifically, Nidec’s first in-wheel motor for electricmotorcycles was adopted for Huan Dian Shou 01, an
electric motorcycle released by Yadea Group Holdings Ltd.
in October 2021. The motor boasts the world’s top-leveltorque characteristics and utilizes Nidec’s single-micronscale magnetic circuit design technology cultivated in
making compact and fast rotating HDDs.
In India, Nidec built a plant in Neemrana, Rajasthan andhas established a system capable of responding to theMake in India policy. We will expand this plant to establish
a system to supply motors for electric two-wheeledvehicles in India.

Business Strategies

Small Precision Motors

20

72,714424,907

66,923400,000

60,000

16.1

15.1

12.4

300,000

15

54,556
45,11642,43810.6

40,00010.0

10200,000

5

20,000

73

0

2017

2018

2019

2020

2021

(FY)

0

2017

2018

2019

2020

2021

(FY) 0Operating profit (left axis)
Operating profit ratio (right axis)

In-wheel motor for electric motorcycles
Yadea’s 換電獣 01 (Huan Dian Shou 01)(Maximum output: 48 V/2.8 kW)

INTEGRATED REPORT 2022

NIDEC CORPORATION

100,000

74

The net sales target for the Automotive Products segment
in FY2025 is 1,300 billion yen (sales of 1,000 billion yen byorganic growth and sales of 300 billion yen through M&A)
with a CAGR (compound annual growth rate) of 29%
between FY2020 and FY2025, the highest growth rate
expected among all segments. In particular, the E-Axle EVtraction motor system is expected to have high growthpotential. We have already received orders for 4 million
units for FY2025. Taking into consideration the recent risein the unit price of the E-Axle, net sales are likely to exceed
the initial estimate and reach over 500 billion yen in FY2025.
As for the breakdown of the estimated sales volume,orders for FY2025 are composed of 2.65 million units for
China and 1.35 million units for Europe as the number ofcustomers in China is expected to increase from two to fiveand the joint venture with the Stellantis (former PSA)
Group in Europe started mass production of E-Axle in
September 2022. With orders from the U.S. and Asian
countries other than China likely in the future, the sales
volume estimate is expected to increase.
We have been making steady preparations to secure an
overwhelming competitive advantage, including
establishing production facilities capable of responding toa rapid increase in EVs.
As for the next-generation model of the E-Axle, Nidec
started production of the second-generation model, which
achieved a cost reduction of 30 to 35% from the firstgeneration model, in September 2022. This is expected to
substantially improve the profitability of E-Axle. The switch
to the second-generation model is scheduled to becompleted by the end of FY2023. Moreover, we havestarted developing the models of third and subsequent
generations. We are thus promoting the E-Axle business in

Net sales

Operating profit / Operating profit ratio(Millions of Yen)

450,000

417,643

Plan to increase E-Axle production capacity(Millions of Yen)(%)

45,00030

38,973
333,241
300,000

32,900297,298
20

30,000NIDEC CORPORATION

21,19675

The E-Axle flagship factory aims for EV-dedicated integrated production covering assembly and theparts business.
Example in China

In China, production at five factories, including
those in Pinghu and Dalian, is planned.

358,075
295,360

As for the production system, under the belief that in a
rapidly expanding market, the player with a superior
supply capacity will win, we have set the basic policy of
preparing a production system for double the number ofunits demanded so as to be ready to respond to incoming
demand, and are working to establish a production systemwith the capacity for double the planned sales volume by
FY2025. Specifically, we are planning to expand the Pinghu
Factory in China, which has an annual production capacityof 1 million units, to be the fourth E-Axle assembly plant in
China. With a view to further increasing orders in the
future, we are planning to further enhance the production
capacity in China and establish production capacity inNorth America. Along with the plants of our joint venture

1. E-Axle flagship factory: Pinghu City, Zhejiang
Province, China

Example in Europe

In Europe, E-Axle is also scheduled to be
manufactured by the joint venture with theStellantis Group.

19,526

10

10,675
6.4

Capacity
2 million
units

5.5
2.6

0

2017

2018

2019

2020

2021

(FY)

0

2017

2018

Operating profit (left axis)
Operating profit ratio (right axis)

2019

2020

Capacity
6 million
units
Capacity
4 million
units

11.1

15,000(Annual volume basis)

6. Nidec Electric Motor Serbia

13.2
150,000

E-Axle production capacity plan

2021

(FY)

0

Production items: E-Axle, inverters, gears, etc.
Production capacity: 1 million units per year . Nidec Tosok (Zhejiang) Corporation
2
3. Nidec Automotive Motor (Zhejiang) Corporation
4. Guangzhou Nidec Auto Drive System Co., Ltd.
5. Nidec (Dalian) Limited

7. Nidec PSA emotors

We are planning to set up the 8th,
9th, 10th and further global
production bases.

Upwardrevision

Sales volume
4 million
units(Plan)

2021 2022 2023 2024 2025 (FY)
Turning
point

INTEGRATED REPORT 2022

Growth strategies in Vision 2025

*1 A project aimed at decarbonization and the enhancement of industrial
competitiveness in the automotive field by conducting research and development on
the performance improvement, resource saving, recycling, etc. of storage batteries
and motors, which are crucial for the realization of a carbon-neutral society*2 A fund established within NEDO on December 25, 2020 under 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 avirtuous cycle of the economy and the environment

with the Stellantis Group and the Serbia Plant in Europe,
we will work to establish a global production system.
For production of E-Axle, we pursue in-housemanufacturing of all necessary components, including
equipment. We pursue in-house manufacturing of partsand even equipment because we believe that it isnecessary, in order to secure a competitive advantage in a
rapidly expanding market, to 1) reduce costs by eliminating
extra functions included in externally manufactured parts
and 2) have a supply system that will not be affected by theexternal environment. In particular, 2) is a principle
determined based on the experience when demand for
HDD motors rapidly increased and caused tightening of
supply and demand of manufacturing devices.
In addition to E-Axle, for existing automotive motors,
such as electric power steering (EPS) motors, we expect also
a significant increase of CAGR 13% in sales between FY2020
and FY2025. In particular, for EPS motors, Nidec’s
production volume is expected to increase due to two
factors: 1) a rise in the rate of vehicle models using electric
power steering, and 2) a rise in our market share of motors
for EPS. Regarding factor 2), the reasons for the rise in ourmarket share are that automobile manufacturers have been
increasingly choosing to outsource non-core activities as aresult of the streamlining of their businesses, and that ourcompetitors are withdrawing from the market.

Standby with about

Net sales recovered slightly from the previous year andincreased 16.6% to 417,643 million yen (including theincrease of approx. 19,300 million yen due to the impact offoreign exchange rates). The global production volume in
2021 of automobile manufacturers, the main customers of
this segment, recovered slightly from the previous year but
did not reach 80 million units, lower than the level before
the outbreak of COVID-19. Accordingly, demand for our
products has not recovered yet. Operating profit
decreased by 45.3% from the previous year to 10,675
million yen (including the increase of approx. 300 million
yen due to the impact of foreign exchange rates) due tothe decrease in the production volumes of automobile
manufacturers, as well as the impact of the cost of
structural reform of around 2,500 million yen recorded inEurope, etc., and recording of the development cost, etc.
for EV traction motor system E-Axle, for which inquiries
and orders are rapidly increasing.

a development system based on a medium- to long-term
vision. Incidentally, Nidec’s development of E-Axle has beenchosen as a Next-generation Storage Battery and Motor
Development project*1 of the Green Innovation Fund*2 by
NEDO (New Energy and Industrial Technology
Development Organization).

double the capacity

Review of FY2021

Business Strategies

Automotive Products

76

Review of FY2021
Net sales increased 30.7% from the previous year to786,588 million yen (including an increase of approx.
44,000 million yen due to the impact of foreign exchange
rates) mainly due to increases in revenue from household
refrigerator compressors and motors for air-conditioners,
as well as motors and gears for transfer robots used at
distribution centers of E-commerce companies.
This significant increase in revenue was attributed to thestrong performance of existing businesses due to booming
global demand for home appliances and the steady increasein housing construction in the U.S., along with active capital
investment made by E-commerce companies. Operating
profit increased substantially by 47.4% from the previous
year to 78,167 million yen (including an increase of approx.
4,200 million yen due to the impact of foreign exchange
rates), as a result of the ongoing efforts made against
soaring raw material prices to reduce costs, optimize fixed
costs and reflect them in selling prices, in addition to theeffect of the increase in revenue.

Growth strategies in Vision 2025
The net sales target for the Appliance, Commercial andIndustrial Products segment in Vision 2025 is 1.3 trillion
yen (sales of 1 trillion yen by organic growth and sales of
300 billion yen through M&A). The increase in both sales
and profit in FY2021 is mainly attributable to the growth ofbusinesses producing household refrigerator compressors
and motors for air-conditioners, as well as motors andgears for transfer robots used at distribution centers ofE-commerce companies. Meanwhile, however, signs ofpeaking out are beginning to be seen in global demandfor home appliances, housing construction in the U.S.,
and capital investment by E-commerce companies.
We therefore believe that the growth strategies below
are necessary.

1. Growth through expansion of area andcustomers of existing businesses

Demand for compressors for refrigerators and motors for
air-conditioners has been supported mainly by advanced
countries. Now we can expect expansion of demand in
emerging countries along with an increase in people’s
income. It is also predicted that in advanced countries,
housing-related demand will further expand while
commercial demand will increase along with the end of the
spread of COVID-19. In addition to the expansion ofregional demand and a shift to commercial demand,
expansion of the customer base is expected for motors
and gears for transfer robots used at distribution centersof E-commerce companies. We thus expect growththrough the expansion of the area and the customer baseof existing businesses.

Net sales

Operating profit / Operating profit ratio(Millions of Yen)

(Millions of Yen)

900,000

90,000601,61160,000NIDEC CORPORATION

77

9.9

7.9

8

53,025

6.9

495,432

34,061

Battery Energy Storage System

33,940430,0002018

HVAC*-related uses

6.0

300,0002017

Growth driver

12

38,8510

The battery energy storage system (BESS) of Nidec
Industrial Solutions provides the power transmission
utilities of each country with the ability to store and stably
supply the electric power generated with renewableenergy, thereby contributing to the realization of a carbonneutral society. To date, we have provided BESS for a totalof 1.3 GW. In March 2022, we received an order for BESS
for 129.8 MW in Scotland, UK. We are planning to further
expand the business.

2019

2020

2021

(FY)

0

2017

2018

Operating profit (left axis)
Operating profit ratio (right axis)

2019

2020

2021

(FY)

0

PM traction motor, power generator

FA-related (servo motors)* HVAC: Heating, ventilation and air-conditioning

INTEGRATED REPORT 2022

489,591

2 Solution related to renewable energy

78,167
8.8

562,604

As labor shortage is an urgent issue mainly in advanced
countries, the factory automation (FA) products such as
servo motors business is likely to become a growth driver
over the medium to long term, and shipments to robot
manufacturers are expected to increase along with theadvancement of factory automation. The business of
power generators for construction machines is expected
to expand as demand for mining has been increasing due
to soaring raw material prices.

In this field, Nidec announced on August 30, 2022 that it
had concluded a joint venture agreement with FREYR
Battery (hereinafter, “FREYR”), a Norwegian semi-solid
lithium-ion battery manufacturer. FREYR will enter into a
power purchase agreement with a renewable energy
producer for the supply of 100% renewable energy andplans to manufacture semi-solid lithium-ion batteries that
do not emit CO2 in the manufacturing process.
With this partnership, our BESS solutions using
batteries of FREYR can be provided for customers, which
will enable Nidec to establish a leading position in the fieldof BESS for power transmission utilities and also to
significantly reduce CO2 emissions in all processes frommanufacturing of batteries through the use of our BESS
solutions by customers.
Through the strategic partnership with FREYR, we will
provide innovative power storage technology and electric
power management technology for society, thereby
promoting the spread of renewable energy andcontributing to the realization of a carbon-neutral society.

(%)

786,588

600,000

2. Growth under medium- to long-term themes
1 Solution to labor shortage

Business Strategies

Appliance, Commercial & Industrial Products

78

Other Products

Growth strategies in Vision 2025

Net sales of the Machinery segment increased by 43.2%
from the previous year to 215,588 million yen (including an
increase of approx. 7,500 million yen due to the impact offoreign exchange rates) due to a significant increase inrevenue from semiconductor inspection equipment,
transfer robots, reduction gears, etc., and the effect ofacquisition of Nidec Machine Tool Corporation (former
Mitsubishi Heavy Industries Machine Tool Co., Ltd.) andNidec OKK Corporation. Operating profit substantially
increased by 56.4% from the previous year to 41,232 million
yen (including an increase of approx. 800 million yen due toforeign exchange rates) mainly due to an increase in sales.
Net sales of the Electronic and Optical Components
segment increased by 14.6% from the previous year to
69,699 million yen (including the increase of approx.
4,200 million yen due to foreign exchange rates).
Operating profit increased by 74.6% from the previous year
to 11,029 million yen (including an increase of approx.
600 million yen due to the impact of foreign exchange
rates) due to an increase in sales and the effect of thecontinuous launch of new products.

The net sales target for the Other Products segment in
Vision 2025 is 600 billion yen (sales of 400 billion yen byorganic growth and sales of 200 billion yen through M&A).
The machine tool and reduction gear business in the
Machinery segment is expected to become a major driver
for achieving the targets of Vision 2025. Especially, thebusiness of Nidec Shimpo Corporation, our subsidiary,
will be the key. Nidec Shimpo used to engage in mainly the
reducer and press business. With the acquisition of Nidec
Machine Tool Corporation and Nidec OKK Corporation in
2021, the machine tool business was added to the lineup.
Initially, the acquisition of Nidec Machine Tool Corporation
was aimed at obtaining synergistic effects such as securingin-house manufacturing capacity for the gears necessary to
promote the E-Axle EV traction motor system business.
However, in working to improve business management after
the acquisition, we have shifted to a strategy in which we
not only pursue synergy within the Group but also promote
the expansion of the machine tool business itself. Nidec
Machine Tool Corporation, which was in the red at the timeof the acquisition, improved its quarterly operating profit
ratio to over 10% in a short period of time as a result of the

Net sales

Operating profit / Operating profit ratio(Millions of Yen)

(Millions of Yen)(%)

240,000

50,00025

215,58818.6

40,00017.5

163,966
160,000

149,740

146,561

150,575
30,00027,24713.7

22,329120,000

80,00013.6

70,976

72,67260,39660,824NIDEC CORPORATION

79

0

6.7
10,0002017

2018

Machinery
Electronic and Optical Components

2019

2020

2021

26,36410.4

9,720
40,000

(FY)

0

15

21,73820,00069,699

20

19.1
15.8

14.5

4,870

2017

2018

1 Reducer business2 Press business

FLEXWAVE®

Succeed in sales expansion
in overseas market

Establish a monthly

100,000

units structure in FY2023

2019

2020

(FY)

 tarted selling VAMCO products in JapanS
and China.
Developed an integrated product of
VAMCO’s feeder and press.

0

Operating profit (left axis)
Machinery

Electronic and Optical Components
Electronic and Optical Components

Following the success formula ofthe press business,develop a global market
through organic growth and M&A

Major products

Nidec Machine Tool

Gear machine tools

Double-column 5-faceprocessing machines

Nidec OKK

2019 Acquired SYS (Germany)

Operating profit ratio (right axis)
MachineryS tarted selling KYORI products in U.S.
and Mexico.

3 Machine tool business2017 Acquired VAMCO (U.S.)

Major applications
2021

2012 Acquired MINSTER (U.S.)

Third
pillar

Started selling ARISA products in Japanand China.

5

6,315

3,201

through global M&A strategy

2015 Acquired ARISA (Spain)

10

11,0295.3

therefore expected that the use of cooperative robots in
production processes will accelerate.
FLEXWAVE®, our high-accuracy reduction gear for
precision control, has already shipped mainly forcooperative robots, and a production system has been
established in Japan and the Philippines. In the future, inorder to respond to market expansion, we plan to raise themonthly production capacity, which was 20,000 units in
FY2020, to 100,000 units in FY2023, and establish a
production system capable of winning the top share in theindustry. We are also developing Smart-FLEXWAVE, a new
product incorporating multiple sensors (torque sensor,
temperature sensor, angle sensor), which is expected tocontribute to reducing the size and weight of cooperative
robots and introducing IoT in various machine equipment.
We have received many inquiries from customers.
Furthermore, we are planning to enter the medium-sized
robot market, with the aim of expanding the business areafrom the one mainly for small robots. We aim to achieve net
sales of 500 billion yen in FY2025 in the reducer business,press business and machine tool business in total.

Nidec Shimpo

41,232200,000

post merger integration (PMI). The company demonstrated
that a machine tool manufacturer with excellent products/
technologies can be turned into a profitable company byintroducing Nidec-style management. In the past, as we saw
in the press business, new acquisitions led to the expansionof product lineups and helped reduce fluctuations inbusiness performance. Similarly, for the machine toolbusiness, we aim to expand profits by enhancing the
product lineup, including the possibility of businessexpansion through M&A in the future, and to stabilize thesegment performance.
Nidec will need to make a large-scale investment mainlyin the automotive field. As sales of the HDD motor businessis on a declining trend, we aim to make the machine toolbusiness a cash cow to replace HDD motors business.
Another growth business is the reducer business. Behind
the wave of manpower saving, which Nidec has identified
as one of the Five Big Waves, is labor shortage, which isspreading mainly in advanced countries. Declining
birthrates and an aging population are causing theworking-age population (15 to 64) to shrink in high GDP
economies, including the U.S., China, Europe and Japan,
which makes automation at factories an urgent task. It is

Started selling KYORI products in Europe.
For cooperative
robotsFor small/medium-sized
multijoint
robotsFor wafertransfer
robots2020 Acquired CHS (U.S.)
Strengthened
service in North America forpress machines as a whole.

Verticalmachining
centerGrinding center

Horizontal
machining
centerINTEGRATED REPORT 2022

Review of FY2021

Business Strategies(Machinery, Electronic and Optical Components, etc.)

80Financial/Non-financial Data
Financial Data
(FY)

U.S. GAAP
2012

2013

IFRS
2014

2015

2016

2017

2018

2019

2020

2021

709,270875,109

1,028,385

1,178,290

1,199,311

1,459,039

1,475,436

1,534,800

1,618,064

1,918,174

Operating profit

17,59884,864110,939

117,662

139,366

165,903129,222

108,558

159,970

170,374

Profit before income taxes

13,39884,460107,092

117,164

141,313

163,260

129,830

105,160

152,937

170,032

Profit attributable to owners of the parent

7,986

56,27276,01589,945

111,007

130,834

109,960

58,459

121,945

135,759

CAPEX

61,36840,03658,04281,89868,71890,841

120,555

132,926

88,911

98,580Depreciation

38,25544,41351,44564,95059,737

68,69771,01687,80896,802

104,932

R&D

34,27837,80845,17951,97852,80755,43862,912

78,63067,28078,015

1,005,417

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

Shareholders’ equity

415,653

517,971744,972

763,023

846,572

932,501

996,795

947,290

1,096,020

1,292,241

Operating cash flow

110,286

87,21991,875

147,659

129,853

175,568

170,233

168,049

219,156

94,994

Investment cash flow

–133,854–63,178–81,230–95,377–211,476–113,915–160,844–311,513–100,568–112,597

Free cash flow

–23,568

24,041

10,64552,282–81,623

61,6539,389–143,464

118,588–17,603

Financial cash flow

61,117

13,471–19,508

7,775

95,848–116,858–32,683

128,546–136,191–64,393

Total assets

Per-share information* 1(Yen)Profit (EPS)

14.82

103.41135.81151.52

187.14220.96186.4999.37

208.19232.40

Dividends

21.25

25.00

35.00

40.00

42.50

47.50

52.50

57.50

60.00

65.00

NIDEC CORPORATION

Major financial indicators

81

(%)

Operating profit ratio

2.5

9.7

10.8

10.0

11.6

11.4

8.8

7.1

9.9

8.9

Shareholders’ equity ratio

41.3

44.4

54.9

55.4

50.4

52.6

52.9

44.6

48.6

48.2

*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 FY2012.
*2 Starting 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.

INTEGRATED REPORT 2022

Net sales

Financial and Corporate Information(Millions of yen)82

Group Companies
Company name

E/ Environment
2020

(FY)
2021

12,623,308 12,932,079 12,963,913 12,000,633
1,171
1,220
1,242
1,180
14,396
17,242
13,17913,157
18.8
8.1
8.6
7.9
9,499
8,396
8,307
7,437
11
16
15
10
4,122
3,417
3,595
3,271
3,999
3,606
3,351
2,835
1,170
1,186
1,103
1,102
6
8
0
0
4,285
3,365
2,934
2,859
92
73
62
60
612
593
577
511
3,582
2,700
2,295
2,287
—
—
—
—

11,553,416
1,131
13,531
6.1
7,326
9
3,262
2,826
958
0
4,749
57
457
4,236
124,9972017

Environmental performance index*
Total energy input

1

Total (Gj)Electric power (million kWh)Gas (t)Fuel (thousand kl)
Total (thousand m3)
Rainwater (thousand m3)
Industrial water (thousand m3)
Potable water (thousand m3)
Groundwater (thousand m3)
Surface water (thousand m3)
Total (thousand t-CO2)
Scope 1 (thousand t-CO2)
Scope 2 (thousand t-CO2)
Scope 3 (thousand t-CO2) *2
Total discharge of waste, etc.
(including solids and liquids) (t)*3
Total discharge of waste, etc.
(solid only) (t)Of which, specially controlledindustrial waste (hazardous waste)emissions (solid only) (t)Recycled waste (solid only) (t)Final disposal of waste (solid only) (t)Waste recycling rate (solid only) (%)

Total water usage

Greenhouse gas emissions

Total waste discharged

Environment conservation cost (million yen)*4
Environmental education sessions held (times)*5
The sales ratio of environmentally contributing
products (%)*6

2018

2019

97,14997,618100,546

101,380

111,993

5,400

8,384

9,691

11,011

11,47391,743
5,405
94.4
466
9
—

89,024
8,052
91.2
313
8
13.4

90,910
9,636
90.4
254
11
14.4

91,842
8,947
90.6
2,027
7
11.5

101,812
10,180
90.9
4,339
16
12.5

2017

2018

2019

2020

(FY)
2021

S/ Society
CSR audits conducted by business partner(s) (times)*
Employees (persons) (consolidated)
Ratio of female employees (%) (consolidated)*8
Ratio of female managers and officers*9 (%) (consolidated)*8
Rate of industrial accidents involving lost working time(consolidated)*10
Employees (persons) (non-consolidated)
Ratio of female employees (%) (non-consolidated)
Number of female managers (non-consolidated)
Ratio of female managers (%) (non-consolidated)
Number of female officers (non-consolidated)
Ratio of female officers (%) (non-consolidated)
Rate of persons with disabilities employed (%)(non-consolidated)
Employee training (hours) (non-consolidated)
7

Average monthly overtime hours (hours)(non-consolidated)
Percentage of annual paid leave taken (%)(non-consolidated)
Rate of industrial accidents involving lost working time*8(non-consolidated)
Number of employees who have taken maternity leave(non-consolidated)
Number of employees who have taken childcare leave(non-consolidated)
Percentage of male employees who have taken
childcare leave (%) (non-consolidated)
Return rate after taking childcare leave (%)(non-consolidated)
Number of employees using the short-time work
system (non-consolidated)

Employee training hours per person(hours)Male employees (persons)94
107,554———86
108,906———

93
117,206
50.6
25.9
0.78

132
112,551
49.1
28.2
0.66

132
114,371
48.2
27.2
0.73

2,576
17.4
21
3.2
2
4.6
1.89

2,794
19.7
32
5.0
1
2.4
1.98

2,756
20.4
34
5.5
1
2.4
2.19

2,568
20.6
33
5.7
3
7.9
2.24

2,511
19.9
37
6.2
4
10.0
2.40

112,28743.6

119,67642.8

110,077
39.9

112,16243.7

71,154
31.0

15.3

16.2

16.3

11.2

17.3

61.4

61.3

64.5

56.5

60.9

0.0

0.4

0.4

0.1

0.5

26

41

30

24

22

22

40

41

25

68

1
1.0

2
1.9

7
8.0

8
9.0

20
19.8

97.8

89.3

90.0

100

96.0

91

112

102

115

86

2017

2018

2019

2020

(FY)
2021

NIDEC CORPORATION

G/ Governance83

Directors (persons)
Directors who are also Executive Officers (persons)Outside Directors (persons)Ratio of Outside Directors (%)
Female Directors (persons)Ratio of female Directors (%)
Age of the youngest Director
Age of the oldest Director
Average age of Directors

9
6
2
22.2
1
11.1
50
73
64

8
5
2
25.0
0
0.0
51
77
65

8
5
2
25.0
0
0.0
52
78
66

9
1
5
55.6
2
22.2
48
79
65

*1 Business sites covered by the Medium-term Environmental Conservation Plan: 86 companies*2 C ategories included (as defined by the GHG Protocol): 1 - 8 and 13 - 15.
For Category 1, our emissions doubled in FY2021 from the FY2020 level because the number of businesses subject to data collection increased.
*3 Aggregation began in FY2021.
*4 Nidec business sites in Japan and 10 companies overseas*5 Nidec Head Office*6 The products meet the requirements of the FTSE Green Revenues Classification System.
*7 Eight companies overseas*8 In FY2021, the survey was conducted to cover 87.7% of all Nidec Group employees.
*9 A
 ll levels of management, including junior, middle and senior level management and outside board directors. Junior management: Employees falling under either of the following supervisory roles,or those with a similar level of responsibility:(A) typically responsible for directing and executing the day-to-day operational objectives of organizations, conveying the directions of higher level officials and managers to subordinate personnel.
(B) supervise around 10 full-time employees and/or perform supervisory functions where judgment is exercised in at least two small operational teams/groups.
*10 Calculation of consolidated data began from FY2019. Number of deaths and injuries per 1 million hours worked in total.

9
2
5
55.6
2
22.2
49
80
66

Business activities

Nidec-Read Corporation
https://www.nidec.com/jp/nidec-read/

Development, manufacture and sales of inspection systems for semiconductor
packages and printed circuit boards, optical inspection systems, FPD
inspection systems, and other automatic measurement and control systems
and inspection tools

Nidec Sankyo Corporation
https://www.nidec.com/jp/nidec-sankyo/

Development, manufacture and sales of motors, motor drive units, card
readers, industrial robots, plastic mold parts, music boxes, etc.

Nidec-Shimpo Corporation
https://www.nidec.com/jp/nidec-shimpo/

Manufacturer of variable speed drive, manufacturer and sales of gearboxes,
manufacturer of ceramic art equipment, manufacturer of various measuring
instruments, manufacturer and sales of forge rolling machines and precisepressforming machines, manufacturer and sales of other machinery, sales ofmaintenance, engineering, and technology related to above

Nidec Techno Motor Corporation
https://www.nidec.com/jp/nidec-technomotor/

Development, manufacture and sales of small and medium-sized motors for
HVAC, home appliances and industrial machinery, electric tools, motor-based
equipment and others

Nidec Mobility Corporation
https://www.nidec.com/jp/nidec-mobility/

Marketing, development, manufacture and sales of automotive electriccomponents

Nidec Tosok Corporation
https://www.nidec.com/jp/nidec-tosok/

Development, manufacture and sales of automobile parts and measuring
instruments

Nidec Copal Electronics Corp.
https://www.nidec-copal-electronics.com/j/

Development, manufacture and sales of electronic circuit parts, pressure
sensors, actuators, potentiometers, and encoders

Nidec Copal Corporation
https://www.nidec.com/jp/nidec-copal/

Development, manufacture and sales of optical devices, electronic devices,precision parts and dies, image devices, FA and industrial devices

Nidec Elesys Corporation
https://www.nidec.com/jp/nidec-elesys/

Development, manufacture and sales of automobile electronic control units
for vehicle bodies

Nidec Servo Corporation
https://www.nidec.com/jp/nidec-servo/

Development, manufacture and sales of motors (brushless, stepping, fan,blower), sensors and motor-applied products

Nidec Machine Tool Corporation
https://www.nidec.com/jp/nidec-machinetool/

Design, manufacture and sales of machine tools, cutting tools and theirrelated products, and consulting

Nidec Global Service Corporation
https://www.nidec.com/jp/nidec-globalservice/

Various insurance agency operations, real estate service, vending machine
business, sales of various goods, operation of company stores, staffing
agencies, hotel business, beverage sales, etc.

Nidec Machinery Corporation
https://www.nidec.com/jp/nidec-machinery/

Design, manufacture, sales and technical support of various automatic machines,
FA equipment, measuring and testing equipment

Nidec OKK Corporation
https://www.nidec.com/jp/nidec-okk/corporate/

Manufacture, sales of machine tools

Nidec Motors & Actuators (Germany) GmbHhttps://www.nidec-ma.com/en/

Development, manufacture and sales of automotive motors (for engine cooling,
ABS, steering column adjustment, seat adjustment, power windows, air suspension
compressors, sunroof, and trunk opening and closing)Nidec GPM GmbHhttps://www.nidec.com/jp/corporate/network/group/nidec-gpm/

Development, manufacture and sales of water pumps, oil pumps, and automotive
modulesNidec Motor Corporation
https://www.nidec.com/jp/corporate/network/group/nidec-motor/

Development, manufacture and sales of industrial, commercial and appliancemotors, and control equipment

Nidec Global Appliance Europe SRL
https://www.nidec.com/jp/corporate/network/group/nidec-global-appliance-europe/

Manufacture and sales of motors for home appliances (washing machines,
dryer machines and dishwashers

Nidec ASI S.p.A.
https://www.nidec.com/jp/corporate/network/group/nidec-asi/

Development, manufacture and sales of medium- to large-sized industrial
motors, power generators, and low- to medium-voltage drives; developmentof industrial systems and automation systems in the metal and power
generation (regenerated energy) fields

Nidec Leroy-Somer Holding
https://www.nidec.com/jp/corporate/network/group/nidec-leroysomer/

Development, manufacture and sales of alternators, motors, variable speed
drives, and automation solutions for industry

Nidec Control Techniques Limited
https://www.nidec.com/jp/corporate/network/group/nidec-controltechniques/

Development, manufacture and sales of AC and DC variable speed drives,
servos and power conversion technologies for commercial and industrial
applications

Nidec Global Appliance Compressores e Soluções em
Refrigeração Ltda.
https://www.nidec.com/jp/corporate/network/group/nidec-globalappliance-compressors/

Manufacture and sales of compressors for commercial and domestic refrigerators

CHAUN-CHOUNG TECHNOLOGY CORP.
http://www.ccic.com.tw/index.php

Development, manufacture and sales of thermal management devices* This table lists a selection of major group companies.

Financial and Corporate Information

Non-financial Data

INTEGRATED REPORT 2022

ESG Data List
https://www.nidec.com/en/sustainability/principle/esg-list/

84

Company Profile

Changes in stock price and trading volume(As of March 31, 2022)

Stock price (yen)Trade name

NIDEC CORPORATIONFoundedJuly 23, 1973

Location of Head Office

338 Kuzetonoshiro-cho, Minami-ku, Kyoto

Capital

JPY 87,784 million

Fiscal year end

March 31

Employees

Nidec Corporation: 2,511
Consolidated:

Business sites in Japan

75,00060,000Nidec (left axis)

114,371

Nagano Technical Center, Nidec Research and Development Center, and Nidec Center

TOPIX (left axis)

9,000

45,0006,000

30,0003,000

15,0000for Industrial Science

Mar. 2012

Mar. 2013

Mar. 2014

Mar. 2015

Mar. 2016

Mar. 2019

Mar. 2020

Mar. 2021

Mar. 2022

0(As of October 1, 2022)

596,284,468

shares outstanding
Number of123,718

2.60%

7.45%

(15,547,000 shares)(44,449,000 shares)
21.47%

shareholders
33.12%

Awards and commendations

FTSE4Good Index Series

Nadeshiko Brand
Nidec was selected as a Nadeshiko Brand in FY2021

Since 2018, Nidec has been included in the FTSE4Good

19.15%(114,219,000 shares)

Inclusion in ESG indexes

Number ofshares ownedbase(128,039,000 shares)by the Japan Ministry of Economy, Trade andIndex Series, designed to measure the performance ofIndustry (METI) and the Tokyo Stock Exchange (TSE).

companies demonstrating excellent environmental, socialand governance (ESG) practices.

ESG-themed brand

FTSE Blossom Japan Sector Relative Index
16.18%(197,537,000 shares)(96,489,000 shares)

Trust banks

Other financial institutions

Foreign institutions

Individuals and othersJapanese securities firms andother Japanese corporations

Treasury shares

In the first “ESG brands” selection in 2012 at the Tokyo Stock Exchange,
which identifies themed brands for individual investors based on specificSince 2022, in addition to ESG evaluation, Nidec has been

themes and indexes, Nidec was selected as an ESG-themed brand.

Included in the FTSE Blossom Japan Sector Relative Index,
an index to evaluate the management stance of companies
with respect to climate change risks and opportunities.

Receiving three-star “eruboshi” status

FTSE Blossom Japan Indexof “eruboshi” status granted by the Minister of Health,

In 2018, Nidec received a three-star rating (highest level)
Labour and Welfare to companies that have madeSince 2018, Nidec has been included in the FTSE Blossom

excellent efforts related to the promotion of women’s

Japan Index, an index that reflects the performance ofparticipation and advancement in the workplace.

Japanese companies demonstrating excellent ESG practices.

* 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

Principal shareholders(WIN) index, which includes companies selected out of the top 700 brands
Name

Number of shares owned(thousands)

in market capitalization ranking (the MSCI Japan IMI Top 700 Index) based
Holding ratio (%)

The Master Trust Bank of Japan, Ltd. (trust account)

79,058

13.61

Shigenobu Nagamori

49,473

8.51

Custody Bank of Japan, Ltd. (trust account)

26,354

4.53

The Bank of Kyoto, Ltd.

24,798

4.27

S.N. Kosan, LLC.

20,245

3.48

SSBTC CLIENT OMNIBUS ACCOUNT

16,554

2.85

THE BANK OF NEW YORK MELLON 140042

14,956

2.57

MUFG Bank, Ltd.

14,851

2.55

Nippon Life Insurance Company

13,1592.26

Meiji Yasuda Life Insurance Company

12,8042.20*1 F igures less than one thousand in the number of shares owned are rounded off.
*2 T he Company’s holding of 15,547,506 treasury stocks is excluded from the above major shareholders. The shareholding ratio was calculated excluding treasury stocks.
Treasury stocks do not include shares of the Company held by the BIP (Board Incentive Plan) Trust and the ESOP (Employee Stock Ownership Plan) Trust.

on their gender-related

Evaluation of IR activities
Gomez IR Site Ranking 2020 Bronze Award
Nidec received a Bronze Award in the overall “Gomez IR Site Ranking 2020”
published by Morningstar Japan K.K. In the electrical equipment industry

diversity (women’s active
participation in the

ranking, Nidec was ranked 20th.

workforce) in each industry.

Nikko IR All Japanese Listed Companies’ Website Ranking* The inclusion of Nidec Corporation in any MSCI index and the use of MSCI logos,
trademarks, service marks or index names herein do not constitute a sponsorship,
recommendation or advertising of Nidec Corporation by MSCI or any of its affiliates.
The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names
and logos are trademarks or service marks of MSCI or its affiliates.

Nidec’s website was selected as a grade AAA site in the annual survey of allCo., Ltd. in FY2021.

Daiwa IR Internet IR Commendation Award 2017by Daiwa Investor Relations Co., Ltd.

Announced

TargetLong-term
RatingShort-term
RatingJapan Credit Rating
Agency, Ltd. (JCR)

December
2021

IssuerAA—

Rating and Investment
Information, Inc. (R&I)

December
2021

IssuerAA–

a-1+

Moody’s

February
2021

IssuerA3—

Rating agency

Japanese listed companies’ websites conducted by Nikko Investor Relations

Nidec received the Commendation Award in the “Internet IR Award 2017”

Rating information

Financial and Corporate Information

Shareholder mix

Award for Excellence in Corporate Disclosure
In 2021, Nidec was ranked seventh in the Electric/Precision section in 2021
Awards for Excellence in Corporat

INTEGRATED REPORT 2022

Share status

NIDEC CORPORATION

Mar. 2018

External Evaluation(As of March 31, 2022)

85

Mar. 2017*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.
*2 Figures 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.

https://www.nidec.com/en/

Stock Information

Number of

Trading volume (thousands of shares)

12,000

Head Office, Tokyo Office, Central Technical Laboratory, Shiga Technical Center,

Corporate website

TOPIX (points)

15,00086