Integrated Report2023

Introduction

Dreaming of thenext 50 years
Nidec marked its 50th anniversary on July 23,
2023, and started treading new paths to embrace
profound changes potentially involved in achieving
another 50 years of sustainable growth. Under thewatchword “One NIDEC,” we are taking consistent
steps forward to evolve from a founder-led company
into a founder-inspired, collectively led one.
The underlying idea of “One NIDEC” is to view
our diverse management resources (people,
goods, money, technology, and information) as
a coherent whole and optimally realign themwith the company’s shared objectives. With
particular reference to people management,“One Nidec” represents an environment that helps
unleash individual potentials beyond differencesin nationality, race, gender, age, faith, cultural
background, or personality.
Our march toward “One Nidec” started with afew cornerstone events—unifying the company
names, establishing a Nomination Committee,
and formulating a succession plan for a seamless
transition to a more collective, interactive
leadership style.
Meanwhile, what remains unchanged is ourunwavering aspiration—fueled by passion,
enthusiasm, and tenacity—for giving a concrete
shape to grand dreams. That has always been andwill continue to be the cultural and ideologicalcommon thread running through Nidec fromgeneration to generation.
Over the next 50 years, the NIDEC Group aims tobecome a truly global company that firmly stands
on a unique culture and philosophy, which is like a
big tree supported by robust roots and trunk, withpeople from all over the world coming together
and blossoming into various flowers. In order tomake this dream come true, we will not be afraidof change and will boldly take on the challengeof entering a new world through the creation of
excellent products.

Welcome to Nidec Integrated Report 2023
When Nidec was founded in 1973, we dreamed of becoming
a global company representing Japan. Today, as we celebrate
our 50th anniversary, we are moving forward with ournext dream: to become a top-rated global company that
continues to be needed by society for the next 50 years andbeyond. We believe that it is essential to realize sustainable
management in order to coexist with and be needed by theinternational community in the future. In other words, weneed to closely align our business strategies with solutions
to universal issues and thereby to achieve consistent,
dynamic growth.
We began publishing the integrated report in 2021 with
the intention of incorporating the perspectives of our
stakeholders into management to review the directionof our business strategies. This year, Integrated Report
2023 focuses on changes in our management structure
as we celebrate our 50th anniversary. Among the manychanges, we particularly focus on those related to people,
such as the transition to a collective management system,
the resulting changes in human resources strategies, andthe formulation of new personnel policies. In addition, we
provide interview articles as a special feature on the five new
executive vice presidents, who are of great interest to ourstakeholders, so that everyone can learn more about theirbackgrounds and ways of thinking.
This report has been created with reference to the IFRSFoundation’s International Integrated Reporting Frameworkand the Ministry of Economy, Trade and Industry’s Guidance
for Collaborative Value Creation. We declare that the
preparation processes and the contents of this report
are legitimate.
We hope this report gives you a good picture of oursustainability journey and look forward to receiving yourvaluable, candid feedback. We appreciate your continued
support as we strive to continuously improve ourcorporate value.

Shigenobu Nagamori

Founder, Representative Director and Chairman

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NIDEC CORPORATIONINTEGRATED REPORT 2023

02

Table of Contents
POLICY

PolicyThe aim of Nidec Corporation is to contribute to the development of society and thewelfare of the general public around the world. Nidec aims to do so by supplying thehighest quality products. Our company is sincerely and enthusiastically dedicated tothe trinity of technology, skillfulness, and modern science. Thereby, Nidec strives topromote the prosperity of our society, our company, and all our employees.

MISSION

MissionWe contribute to the Earth by producing the highest quality motors in the world.

01

VISION

VisionN idec is a global company that grows sustainably for the next 100 years and beyond.
Nidec is the world’s leading solution-providing business group that solves numerous
problems for the people in the world.

05

“Creativity,” “Respect,” “Collaboration,” “Integrity,” “Decision Making,” “Team Building,”and “Grow Talent.”

DISCIPLINE / CODES even Articles of Nidec Employees, 3Ps (Be proactive, productive, and professional),
and eliminating six bad habits
Three Basic Management PhilosophiesT hree Management Methods Three Management Attitudes Three Conditions for Success
CSR Charter (social responsibility, respect for diversity, etc.)

The Nidec Group joined the UN Global Compact in August 2015 and officially announced its support for the 10 Principles.

03

NIDEC CORPORATION

47

Materiality

53

Environment

62

Products

65

Human Resources69

Supply Chain

07

71

Corporate GovernancePresident’s Message
Interviews

87	
Financial/Non-financial
Data

15	
Value Creation of Nidec
Group

21

Materiality

05 Chairman’s Message

15

History of Nidec Group

17

Value Creation Process

Value Creation Strategy
21

Business Operations

23

Performance Highlights

25 Nidec Group’s Competitive

90

87

Financial Data89

Non-financial Data

Corporate Information
90

Group Companies

91

Company Profile

91

Stock Information

92

External Evaluation

Advantages 	

27 Overview of the Medium-Term
Strategic Goal

39

30

Financial Strategy

33

Human Resources Strategy

37

Technology Strategy

Business Strategies
39

Small Precision Motors

41

Automotive Products

43 Appliance, Commercial &Industrial Products
45

3Q6S

Three Management Principles  Management Message

09 Executive Vice President“Nidec Way” “The Challenging Road”
Three Corporate Policies: “Passion, Enthusiasm, and Tenacity,” “Work smart,”and “Do your work now; do it without hesitation; do it until completed.”

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Report 2023

VALUE

Value

Dreaming of the next 50 years

02 Welcome to Nidec Integrated

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,
and contribute to making better lives for people all over the world.

Discipline & CodeIntroduction

Corporate Philosophies

Other Products

Reporting Period: April 1, 2022–March 31, 2023
This report includes information before and after the reporting period.
Reporting Guidelines
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 thedate of publication of this report. Please be aware that actual performance may vary significantly due to various uncertainties, suchas market price conditions and exchange rate fluctuations. Nidec undertakes no obligation to update any information regarding theforward-looking statements contained in this report.

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04

Eying Consolidated Net Sales of 10 Trillion Yen
Achieving consolidated net sales of 10
trillion yen is my long-cherished dream.
Admittedly, that is a lofty dream, but not
impossible if Nidec people release theirfull potentials. Well-matched businessacquisitions, not to mention innovative,
value-added products, will also help us
make it happen.
Nidec has historically leveraged M&As forbusiness growth at a pace unmatched byany other Japanese company, including a
few attempts made without the consent ofMarking the 50th Anniversary
Fifty years ago, I started Nidec Corporation
with three like-minded colleagues andsince then we have worked our way
to becoming an internationally active
business with over 100,000 employees in
47 countries and regions. Thanks to all our
employees for their continued hard workand to our shareholders and stakeholders
for supporting us on our journey, we are
now proud to see our consolidated annual
sales exceed 2.2 trillion yen to finallyplace Nidec first among all Kyoto-based,internationally competitive firms. However,time waits for no one—or company. I heara warning bell signaling us to press ahead
with transformational changes to prepare
ourselves for what the next 50 years willbring. The coming transformation, whatever
shape it might take, can be likened togiving a rebirth to the company and will
mean a tough and testing time for us.
I often use this analogy in front of people
here at Nidec lately to express my hope to
see Nidec emerge stronger from a period of

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NIDEC CORPORATION

unprecedented challenges withgreater resilience worthy of a truly
world-class enterprise.
At the outset of FY2023, we shed ourJapanese brand name Nippon Densan
under a unified name Nidec, and thenplaced it ahead of all the names of ourJapan-based subsidiaries. Marketing a vast
range of products under a single brandname will help expand our global market
reach more effectively.
On the governance front, our Nomination
Committee selected five executive vicepresidents, one of whom will be appointed
the president of Nidec Corporation in April
2024. The current president Hiroshi Kobe
will be supporting the new president for
four years as new Chairman and CEO.
I will be leaving all my current positions
to assume the role of observing progressunder the new management team. My focus
will continue to be on “walking the talk” oncorporate values.

Management Message“One Nidec” will keep us in sync with new
dynamics arising in the next 50 years.

Chairman’s Message

the counterparty. These so-called takeoverbids are still uncommon or can often becontroversial in Japan, but I find it very
motivating to see the resulting benefits
expand far beyond any one company,
or industry, into a vast variety of markets.
Whenever a business acquisition comes
into the picture as a viable option, I will
spare no effort to share all my knowledge
and experiences with our new management
team to help them make the best
possible choice.

Bringing “One NIDEC” into action
After a few years of devoting a fair amountof energy to tackling pressing issues, suchas the succession plan and slumping stock
prices, now I am seeing positive changes
taking place in Nidec as it builds a solid
basis for navigating the next 50 years.
I am excited to witness Nidec set out on
a journey of a profound, unprecedented
transformation where everyone’s
contribution is recognized for his or her
achievements, regardless of attributes suchas academic background, seniority, age,gender, or nationality. And it is only whenthat happens that we would deserve to becalled a global enterprise in the true senseof the word. I am strongly convinced thatlike-minded Nidec colleagues numbering
more than100,000 will unlock a new chapter

of company growth, powered by the sharedcollaborative mindset of “Do it now; do it
without hesitation; do it until completed.”
September 2023

Shigenobu Nagamori
Founder, Representative Director and Chairman

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06

We aim to become a top-rated global company
by resolutely exploring a new world.

Management Message

President’s Message

Aiming to Continue to Be a Socially Indispensable
Top-rated Global Company for the Next 50 YearsBusiness Strategies for FY2023
In FY2022, Nidec’s consolidated net
sales stood at a record high of ¥2,242.8
billion, 17% higher Y/Y. On the other
hand, operating profit decreased 41%
Y/Y to ¥100.1 billion due to posting oflarge-scale structural reform expenses.
We have renewed our resolve to achievea V-shaped recovery in FY2023.
In FY2023, we will shift directions to apolicy that emphasizes profitability. We will
focus management efforts even more on
achieving the plans set at the beginningof the fiscal year and ensuring financial
soundness, and we will begin building asolid foundation for growth over the next
50 years. In our day-to-day operations,
we will continue to make the most of ourbusiness execution capabilities, which
are backed by our strengths of speedy
management and the spirit of “Do it until
completed.”
In the automotive products segment,
which is considered one of the two major
growth fields in our business portfolio, we

07

NIDEC CORPORATION

place sales expansion of the new generation
model of the electric vehicle (EV) drive
motor E-Axle at the center of our strategy.
Meanwhile, in the appliance, commercial andindustrial businesses, which are also growthfields, we focus on capturing replacement
demand for high-efficiency motors andgreen innovation-related demand. In the
precision small motor business, we willcontinue to meet IT-related demand while
focusing on developing new fields such as
electric motorcycle motors and small EV
motors with an output of 30 kW or less.
In other product groups, we will aim tofurther expand the scale of our business byproactively utilizing M&A in product fields
such as reducers, press machines, andmachine tools handled by the Machineryand Automation Business Unit, which has
started operations this fiscal year. In the fieldof machine tools in particular, we believe thatenriching our product portfolio with a view todeveloping new markets will hold the key toour future.

Our mission is to contribute throughour business to the resolution ofimportant issues common to humanity
and the advancement and spread of newtechnologies that will be essential in
the future.
Climate change is one of the important
issues common to all humankind. It may
be still fresh in your memory that UN
Secretary-General António Guterres
sounded the alarm, describing thisever-increasing problem with the phrase“era of global boiling.” We hope to help
solve climate change by promoting
decarbonization of society through thedevelopment of highly efficient and lowcost EV motors and renewable energyrelated solution businesses, such asbattery energy storage systems (BESS).
Meanwhile, we announced in June 2023
that we have entered the business of Flying
Cars (eVTOLs), one of the new technologies
that will support future society. It is anurgent issue to establish technology toefficiently and sustainably transport people
and goods in urban areas with concentrated
populations. As a solution to this problem,eVTOL is attracting attention, and themarket is expected to expand in the near

future. Nidec has signed an agreement with
Embraer, a global aircraft manufacturer
headquartered in Brazil, to establish a joint
venture related to electric drive systems
for the aviation industry. By combining thetechnologies of both companies, we will
work together to increase the possibilities ofa new means of transportation for society inthe near future.
Our company intends to contribute to
the resolution of various issues related tothe environment and society, and we dare
to jump into the world of technologicalinnovation under a management system
underpinned by thorough governance.
As a result of continuing these businessactivities, we believe that Nidec will bea top-rated global company needed bysociety even 50 or 100 years from now.
September 2023

Hiroshi Kobe
Representative Director and President(Chief Operating Officer)

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08

At the extraordinary board of directors meeting held on
March 10, 2023, the board resolved to appoint fiveexecutive vice presidents as of April 1, 2023. Having
been rigorously examined by the Nomination Committee,
the five new executive vice presidents were selected
as individuals who have demonstrated outstandingtransformational leadership in their executive positions
at Nidec and president positions at its group company andhave contributed to business results. It was also confirmedthat they have sufficient potential as a president.
We asked the five new executive vice presidents, who are
expected to move the Nidec Group forward together with
its employees, about their thoughts on the company andits business.

Toshihiko Koseki
Mitsuya Kishida
Yoshihisa Kitao
Tatsuya Nishimoto
Toshiyuki Otsuka

Biography
April 1983	Joined Nippon Steel Corporation
April 2001
Senior Chief Researcher of Technology
Development Division
October 2004 Professor, School of Engineering,
The University of Tokyo
April 2017
Executive Vice President of the University
April 2018
Advisor of Nippon Densan Corporation(currently Nidec Corporation)
April 2019
First Senior Vice President, Head of Nidec
Center for Production Technology R&D
May 2022
Chief Technology Officer (CTO)(current post)

Management Message

Executive Vice President Interviews

Toshihiko Koseki

Common
Q&A

Common Q&As

These are common questions for all five executive vice presidents to
dig deeper into each person’s personality.

1. Please tell us about your career at Nidec.
2. What kind of company do you want Nidec to be?
Also, how do you think Nidec should change?
3. What do you think Nidec lacks currently but should havein order to realize your ideal vision?
4. What do you think of sustainability management and
ESG management at Nidec?

Individual
Q&A

Executive Vice President,
Chief Technology Officer

1. After working with Nidec for one year as a part-time advisor, I officially joined the company in 2019. At that time,
the Nidec Center for Production Technology R&D (currently the Nidec Keihanna Technology Center) had just been
formed, and I had to establish the Center’s functions and roles that span the entire Nidec Group. From then until
now, I can say that I have spent four years pursuing the question “What is a corporate research institute?”
This spring, we reorganized our R&D departments, creating a system in which the R&D departments serve as a
hub for developing various technologies and solving problems for all Nidec Group companies.
2. I believe that we need to have unique and advanced technological capabilities and continually evolve them.
Up until now, Nidec has achieved growth by supplying motors and parts with a high level of responsiveness tocustomer requests, but in the future, we will additionally need the ability to create modules, systems, and solutions
in a wide range of fields centered on motors.
3. We need the ability to combine, sophisticate, and integrate the technologies cultivated through the development andproduction of motors. In order to continue to grow and coexist with society over the next 50 years, we must continue
to be a company that can respond flexibly to social changes and contribute to society through technology.
4. It is important first to understand both the contribution and burden to the global environment that are created by ouractivities to manufacture motors and other products, and then consider what we can do. The manufacturing process
places a burden on the environment due to the use of materials and electricity, but on the other hand, motors with anenergy-saving design can significantly reduce the amount of electricity consumed around the world. In addition, theamount of electricity used to cool IT equipment will continue to grow. Nevertheless, further improvements to our fan
motors, heat pipes, and water cooling technology will greatly contribute to power savings in this field.

Individual Q&As

These questions are tailored to each person’s background andcurrent duties.
Questions are listed on each page.

Q. W
 hat is the philosophy of the three research and development departments newly established in April 2023 (Nidec Product
Technology R&D Center, Nidec Center for Production Technology R&D, and Nidec System Manufacturing Engineering Center)?
A. It is to realize One NIDEC of technology. Up until now, each research institute had developed products and researched
production technologies individually. Now, we have clarified the functions and roles of each research institute and establisheda function to connect them so that everything from product design to production technology can be integrated to enableconsistent, efficient development. The research institutes will also play the role of a hub that promotes sharing andcollaboration of technologies owned by the Nidec Group.
Q. What technologies are you currently focusing your research on?
A. We are focusing on establishing the basis for and developing the systems and solutions that combine multiple technologies, aswell as the software technology that supports them. For example, in the future, EVs are expected to be referred to as “driving
smartphones.” This means that we need to utilize both hardware and software to create added value. From this perspective, we
are focusing on the development of our E-Axle, with a view to creating a connected car* with functions that go one step further
than the basic vehicle functions of running, stopping, and turning.
* A car equipped with a function to constantly connect to the Internet

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NIDEC CORPORATIONINTEGRATED REPORT 2023

10

Biography
April 1983
Joined Sony Corporation
January 2001	Vice President Product Planning, Sony
Ericsson Mobile Communications AB
April 2011	Executive General Manager of
Production, Sony Corporation
June 2016	Executive Officer, Business Executive,
Sony Corporation
April 2018	Representative and President, Sony
Mobile Communications Inc.
April 2021	Executive Vice President in Charge ofManaging Mobile Communications
Unit, Sony Corporation
January 2022	Joined Nippon Densan Corporation(currently Nidec Corporation), SeniorVice President, Deputy Executive
General Manager of Automotive
Motor & Electronic Control
Business Unit
July 2022
First Senior Vice President
September 2022	Executive General Manager ofAutomotive Motor & Electronic
Control Business Unit (current post)

Biography
April 1982	Joined Sumitomo Bank, Ltd. (currently
Sumitomo Mitsui Banking Corporation)
April 2011	Director, Manager of Corporate Sales
Dept. 1, Namba, Sumitomo Mitsui Banking
Corporation
April 2012	Joined Nippon Densan Corporation(currently Nidec Corporation)
July 2012	General Manager of Affiliates Management
Department (currently Group Companies
Performance Management Department)
April 2013 Vice President
May 2016 Senior Vice President
June 2021 First Senior Vice President
June 2023	Executive General Manager of Small
Platform Motor & Solutions Business Unit
(current post)
In Charge of Managing Group Companies(current post)

Mitsuya Kishida
Common Q&As

Executive Vice President, Executive General Manager ofAutomotive Motor & Electronic Control Business Unit

1. I joined Nidec in January 2022 and immediately took charge of the automotive business in Europe. I strived tostrengthen our foundation and conduct structural reforms in preparation for the development of our automotive
business, centered on Stuttgart, Germany, which is famous as the city of cars. It was a year in which we madesteady progress in resolving issues necessary for future business development and clearing up the past.
2. I believe that we should go beyond the framework of a motor company and become a platformer. Just as major
mobile phone carriers have now lost their positions to IT companies, I am confident that companies that can
provide not only hardware but also the entire platform, including software, will win the top spot in the automotive
industry.
3. W
 e need to increase synergies between group companies and cultivate software technology. For this purpose,
it is necessary to improve the product development and design environment. We have the environment in place
to improve the perfection of our hardware. However, when it comes to software, it’s a different story; we stilllack development and design systems, human resources with knowledge, work style options to secure humanresources, and collaboration within the group. By making full use of the technology and know-how that we haveaccumulated in-house through our business, I am sure that we will be able to resolve these issues.
4. I n order to survive the next 50 years, or even 100 years, Nidec must become a company that puts globalizationand diversity at the forefront. The Nidec Group’s operations span a truly diverse range of countries and regions,and even among its Japanese peers, there are few examples of this level. We should be able to appeal more to theworld the true diversity fostered within the Nidec Group, which is a strength created by people from all over theworld working together, transcending all attributes such as race, nationality, gender, skills, and expertise.

Individual Q&As
Q. Are there any situations in which your experience from your previous job was put to good use?
A. B
 efore joining Nidec, I was involved in the mobile phone business for a long time. I have experience in domestic
sales, overseas marketing, accounting, business strategy and planning, and as a factory president, but I havenever been involved in the automotive business. In that sense, I am tackling every task here for the first time.
Nevertheless, I naturally utilize all of my previous work experience in the Nidec Group, where the on-siteactual-item principle is always required. I can say that I am summarizing all the work I have experienced in myprevious job when dealing with customers.
Q. What are the strengths of the Nidec Group that you found while visiting various production,
development, and sales sites?
A. T he Nidec Group’s greatest strength is its integrated production and sales system. For example, when it comes tosales, we explain our company’s advantages, starting with how to make parts. We are able to not only talk about
product specification, but also go into the manufacturing process together with our customers. I believe this is
proof that the Nidec Group has continued for 50 years to refine its manufacturing spirit, which is represented by
3Q6S principles, and that this spirit has been passed on to all employees, regardless of their duties.

11

NIDEC CORPORATIONManagement Message

Executive Vice President Interviews

Yoshihisa Kitao
Common Q&As

Executive Vice President
Executive General Manager of Small Platform Motor & Solutions Business Unit
In Charge of Managing Group Companies

1. I n my previous job at a bank, I was in charge of corporate sales and company-wide performance management. I joined Nidec in 2012 and was
assigned to work in the Affiliates Management Department (at that time) due to my experience at the previous job. I have mainly been in chargeof domestic group companies. In particular, I have traveled with Chairman Nagamori to companies that have newly joined the group throughM&A and have served as a liaison between Nidec and its group companies. In addition, in June this year, I was also appointed as Executive
General Manager of the Small Platform Motor & Solutions Business Unit.
2. A s I am in charge of the Small Platform Motor & Solutions Business Unit, which is the company’s founding business, I aim to build a corporategroup that endeavors based on Nidec’s identity represented by the slogan “Do it now; do it without hesitation; do it until completed,” as wellas the strengths and technologies of each group company that has newly joined the group. Rather than completely absorbing these newcompanies, we are strengthening collaboration among group companies to help them leverage their own characteristics and ensure that thesame intentions are shared among the group.
3. W
 e must maintain good communication between group companies. To this end, we need to remove all barriers to facilitate the movement ofpeople, goods, technology, and information. In other words, this is to achieve One NIDEC. For this purpose, I believe that it is important for all
employees of the Nidec Group to fully understand the concept of 3Q6S, which is regarded as our company’s constitution, act accordingly, andcommunicate closely.
4. N idec can contribute to reducing power consumption around the world by increasing the efficiency of motors and pursuing the developmentof environmentally friendly products. For example, in recent years, the power consumption and heat generation of electronic components haveincreased dramatically due to faster and larger data transmission. In this regard, Nidec can contribute to reducing the power consumption of
ICT* equipment by providing a solution that efficiently cools high-performance semiconductors through cooperation with Nidec CCI, which
joined the group in 2018. In addition, we have quickly started working on the development of water cooling modules as a new thermal solution.
This enables cooling with less than half the electricity and CO2 emissions compared to conventional heat exhaust systems.
* ICT: Information and communication technology. It refers to technology that exchanges digitized information through communication and technology that uses communication
technology to connect people to people and people to the Internet.

Individual Q&As
Q. Y ou were involved in setting up overseas factories for group companies. Are there any memorable episodes?
A. W
 hen we built factories in overseas countries such as Vietnam and China, I was involved in the negotiations with all my heart and soul. As aresult of repeated negotiations with local government officials, I believe that we were able to go beyond just building a new factory. We havesuccessfully managed to strengthen the relationship of trust between Nidec and the governments of each country.
Q. W
 hat are the technologies and products that will become the pillars of Nidec’s business in the field of small motors in the future?
A. A s mentioned earlier, I believe that thermal solutions will become a major pillar. From now on, dealing with the huge amount of heat dissipated
due to the higher functionality of data centers and the expansion of the market will become an urgent issue. Conventional solutions centeredon air cooling are no longer sufficient, and solutions centered on water cooling are expected to expand significantly in the future. In responseto the HPC server market, which continues to grow as the use of AI expands, and the demand that increases due to the increasing output of
microprocessors, we will expand our business with a sense of speed unique to Nidec, with products that use water cooling technology that wehave already been developing. In addition, we will utilize the technology cultivated in the Small Platform Motor & Solutions Business Unit toaddress the issue of electrification, which is sweeping across fields, not only of automobiles but also of motorcycles.

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12

Biography
April 1979	Joined Mitsui Bank, Ltd. (currently
Sumitomo Mitsui Banking Corporation)
April 2008	Vice President, General Manager ofCorporate Sales Division of Shibuya andYokohama, Sumitomo Mitsui Banking
Corporation
May 2009	Joined Nippon Densan Corporation(currently Nidec Corporation)
June 2009	First Senior Vice President, Nidec-Shimpo
Corporation (currently Nidec Drive
Technology Corporation)
April 2013
Representative Director and President
August 2021	Chairman, Nidec Machine Tools Co., Ltd.
(currently Nidec Machine Tools
Corporation) (current post)
June 2022	Chairman, Nidec OKK Co., Ltd.
(currently Nidec OKK Corporation)
April 2023	Representative Director and Chairman,
Nidec OKK Corporation (current post)
June 2023	Representative Director and Chairman,
Nidec Drive Technology Corporation(current post)

Common Q&As

Tatsuya Nishimoto

Toshiyuki Otsuka

Executive Vice President, Executive General Manager ofMachinery and Automation Business Unit

Executive Vice President

1. I joined Nidec in 2009. Immediately after that, I was appointed as First Senior Vice President of Nidec-Shimpo
Corporation (currently Nidec Drive Technology Corporation), with which I had a connection through my previous job.
2. I want Nidec to be a company that realizes sustainable growth and talks about dreams and turns them into reality.
3. I believe that we need to promote business selection and concentration to realize sustainable growth. I thinkthat we are now at a point where we need to take a bird’s-eye view of the group’s businesses, analyze them, andreorganize some areas depending on the situation. Furthermore, in order to achieve sustainable growth, it isnecessary to diversify our business portfolio to some extent. This may seem to contradict the concept of selection
and concentration of business. However, it is risky to concentrate management resources on a limited numberof companies or industries. I think that large-scale investments targeting specific companies or industries must
be examined carefully. In order to make Nidec a company that talks about dreams and turns them into reality, wemust develop employees who faithfully adhere to and carry out Chairman Nagamori’s basic philosophy of “Do it
now; do it without hesitation; do it until completed” to follow his path.
4. Regarding future sustainability management and social contribution, I think it would be a good idea to emphasize
the significant contribution that the Nidec Group has already made through its projects. For example, Nidec
Minster Corporation handles aluminum cans with a high recycling rate in its canning press business.

Individual Q&As

Q. Please tell us the points to focus on when conducting M&A.
A. W
 e assess the current situation of our existing core businesses, identify areas that are lacking, and look forbusiness entities that can supplement them. In 2011, Nidec-Shimpo Corporation (currently Nidec Drive Technology
Corporation) merged with Nippon Densan Kyori Co., Ltd. and entered the press business. At that time, we madeM&A strategy one of our major measures for growth. Having acquired Nippon Densan Kyori Co., Ltd., a smallpress machine business based on the Japanese market, we decided that we needed a medium and large pressmachine business with strong markets in Western countries. Accordingly, we acquired the current Nidec Minster
Corporation and Nidec Arisa S.L.U. Subsequently, we acquired peripheral equipment manufacturers that could
create a high synergy effect through cooperation with the above stated companies.
	When considering an acquisition, it is important to meet with the management of the target company manytimes and assess the potential partner. As we get to know the personalities of the other party, we try to make themtrust us, thinking that they can work with us.
Q. Next, please tell us the key points regarding PMI (Post Merger Integration).
A. In many M&A transactions around the world, the acquirer’s promotion manager is not involved in the PMI
process. However, in the Nidec Group, not only the person in charge of promoting the acquisition project but also
the company’s top person, Nagamori, will be deeply involved in the PMI process after the acquisition. Anothercharacteristic of the Nidec Group’s M&A strategy is that it does not involve major changes in the management
team of the acquired company or mass layoffs of its employees. We give management authority to the existing
management team of the acquired company. At the same time, we share the basic management philosophy of the
Nidec Group with all members of the company, provide investment support as necessary, and raise its profitability
while increasing its employee morale.

13

NIDEC CORPORATION

Biography
April 1989	Joined Saitama Bank, Ltd.
(currently Resona Bank, Limited.)
November 2004	Joined Nidec-Read Corporation(currently Nidec Advance Technology
Corporation)
April 2015	Representative Director and President,
Nidec-Read Korea Corporation(currently Nidec Advance Technology
Korea CO., LTD.)
June 2017	Vice President, Nidec-Read
Corporation
October 2017
Senior Vice President
April 2018
Representative Director and President
May 2022	Representative Director and President,
Nidec Sankyo Corporation(currently Nidec Instruments
Corporation) (current post)

Management Message

Executive Vice President Interviews

Common Q&As

1. In 2004, I joined Nidec-Read Corporation (currently Nidec Advance Technology Corporation), one of our groupcompanies, and was subsequently transferred to South Korea to help set up a base. I returned to Japan as an
executive in 2017 and served as the company’s representative director and president for four years starting in April
2018. Although this industry was characterized by sales instability due to the strong influence of the demand cyclein the semiconductor market, we have worked to build a foundation that would allow us to continue to generatehigh levels of profits. Since May 2022, I have been in my current position.
2. I want Nidec to continue to grow more and have a strong presence over the next 50 years. While inheriting thecorporate culture and spirit of our founder that have served as the foundation for our growth, we must continue tomake changes in line with the times by pursuing cutting-edge technology and following social demands in order tosurvive in the new era. I believe that such efforts to break with conventions will pave the way for growth.
3. I believe that it will become even more necessary to look at things from the perspective of the entire group,
positioning overall optimization as a prerequisite. For example, it is essential to further promote the sharing oftechnology and purchase-related information, the mobility of human resources, and the effective mutual useof assets. By accelerating the One NIDEC movement that removes barriers between group companies, we will
increase the value of the entire group.
4. We are a company, so our management purpose is to increase our business performance and stock price, which isalso a mission as an executive. We believe that this purpose and mission and sustainability and ESG management
are not contradictory, but that they mutually influence each other and create synergistic effects. For example,
automotive motors (E-Axle) greatly contribute to decarbonization, and decarbonization leads to improving the
Nidec Group’s corporate value, creating new markets, and ultimately generating profits. The same applies tohuman rights issues, diversity promotion, and building a competitive supply chain, which the Nidec Group is
actively working on. As a globally operating company, Nidec aims to make business decisions from the perspectiveof sustainability and ESG management and eventually benefit all stakeholders.

Individual Q&As

Q. What were the key points in stabilizing the performance of Nidec-Read Corporation (currently Nidec
Advance Technology Corporation)?
A. As mentioned earlier, the company’s main product, inspection equipment for substrates and semiconductors, hasbeen experiencing large fluctuations in demand. In order to compensate for the gap in demand, we focused on
the consumables business, such as inspection jigs and probe cards, and gradually built up our product portfolio byleveraging M&A to generate constant demand.
Q. You are currently the representative director and president of Nidec Instruments. What is the focus instrengthening the company’s business foundation?
A. The goal is to instill management methods and attitudes based on the Nidec Policy and Nagamori-ism and to
put them into practice. We aim to continue to achieve our business plans by aligning our employees with theabove stated philosophies. This will strengthen our business foundation and lead to future growth. Achieving theplan requires not only will power but also detailed implementation of policies. Nevertheless, I instruct my teammembers to always maintain “Backbone and Tenacity,” a truly critical notion cherished at Nidec.
INTEGRATED REPORT 2023

14

Value Creation Process
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.

INPUT

OUTCOMEOUTPUTOUTCOME

Financial capital

Financial capital
Net sales: 2,242,800 million yen

Consolidated total assets:

2,872,800 million yen
Shareholders’ equity ratio: 47.1%

E-Axle / Automotive motors

Brushless DC motors

Reducer modules

Operating profit ratio: 4.5%

Profit attributable to owners of theIntellectual capitalparent: 45,000 million yen

R&D expenses:

Fan motors, vapor chambers

81,300 million yen
Human capitalCompetitive advantage 2 :Business strategy

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

employees: 106,592
Global human resources
Diverse human resources
Employee training hours perperson (non-consolidated): 13 hrs

Nearline HDD motors

Intellectual capital
Number of patents held

*1

Business activities
Automotive
Products

Small Precision
MotorsAppliance,
Commercial &Industrial Products

Other
Products

P.25

P.39

Medium-Term Strategic Goal Vision 2025

Number of group companies: 347

11,482

Human capital
Average length of service(non-consolidated): 11.8 years
women and female directors:

P.27

Number of countries/regionswith business sites: 46

		 23.9%

Social capital

Materiality

Joint research with universities,

Participation in national projects

research institutes and companies

of industry-government-academia

Manufacturing capital

Environment

Products

Human Resources

Supply Chain Corporate Governancecollaboration NEDO* Green
2

P.47

More than 200 production bases

Innovation Fund*3 project“Development of nextgeneration

Capital investment:

motors”

Competitive advantage 1 : Corporate culture

137,800 million yen“Do it now; do it without hesitation; do it until completed,” passion, enthusiasm andtenacity, “Work hard and smart,” viewing adversity as an opportunity

Natural capital

P.25

Total energy input:

1,767,741 MWh

Policy, Mission, Vision, Value, Discipline and Code7,548,000 m

3

1 Carbon neutral society

Five Big Waves

2 Power saving and post-COVID-19 pandemic

4 5G & Thermal solutions

5 Digital data explosion

Social issues / Mega trends

Manufacturing capital
Manufacturing high-quality
products

Corporate Philosophy

Water resources input:

NIDEC CORPORATION(as of March 31, 2023):

Managerial positions held by

Social capital

15

	Operating profit: 100,100 million yen

Promoting cost reduction activities
P.03

Natural capital
Renewable energy introduction

3 Manpower saving

ratio: 8.2%

CO2 emissions (Scope 1, Scope 2):
10% reduction

IMPACT
IMPACT

Providing the E-Axle traction motor
system for electric vehicles

 ontributing toCdecarbonization
Providing brushless DC motors forhome appliancesC ontributing 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

C ontributing to
the solution ofissues relating to
the large amountof heat generated
by 5G devices
Providing key components (spindle
motors) for nearline HDDs for data
centersC ontributing toaddressing the
explosive increasein digital data

*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.

INTEGRATED REPORT 2023

Value Creation of Nidec GroupOUTPUT

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

INPUT

16

History of Nidec Group

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

1973

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 the world,” 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.

M&A as the growth driver
Nidec has completed 71 M&A deals since its founding up to September 2023. In its 50-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

Value Creation of Nidec GroupAs 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 andThree founding members

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

Katsura Factory

Chairman when the company started

History of growth through M&A

An encounter with the brushless DC motor
Fascinated by brushless DC motors, which feature low noise, long life and compact size, Nagamori was immersed in its research inhis school days. However, the brushless DC motor market was still small in those days, and brushless DC motors were used only forlimited applications such as fish finders.
At the request of an electric equipment manufacturer in the United States, Nidec developed a directdrive*1 motor for harddisc drives (HDDs) using brushless DC technology, and successfully launched mass 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 of brushless DC
motors, Nidec has established a dominant position in a broad range of markets from IT and automotive devices to home appliances.
Hard discSpindle (precision rotating axis)

Built-in
motor
Motor

Belt drive method

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 the mainstream. Belt-drive HDDs wereused mainly as storage devices for large computers. In order to spread computers to ordinary people, it was essential to miniaturize and increase the storage capacity of HDDs, andwhat made this possible was the direct drive method, which integrates the spindle and motor in a single unit. Nidec played a critical role in developing and commercializing a directdrive spindle motor for HDDs.

NIDEC CORPORATIONCountry

1984
1989
1995
1995
1997
1997
1997
1998
1998

United States
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

Acquired companies/businesses

Torin Corporation, Axial fan division
Shinano Tokki
Kyoritsu Machinery
Shimpo Industries
Tosok
Read Electronics
Kyori Kogyo
Copal
Shibaura Densan

Specialized businesses/technologies/products

Small axial-flow fans
HDD motors
Automatic motor assembly equipment, automatic inspection
Equipment
Continuously variable transmissions
Measuring instruments, semiconductor measuring equipment
Industrial inspection devices
High-speed precision automatic press machines
Manufacture of camera shutters* Major companies are picked up and listed in this table.

Hard disc

Belt

17

Year

Ball bearings were initially used for HDD motors. But around
1995, it became necessary to improve the rotation accuracy of
motors in line with the increase in the capacity of HDDs.
Although there were studies on using FDBs for HDD motors, nobearing 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 andassembled them into HDD motors. Therefore, Nidec acquired
several companies that had the technologies necessary for thedevelopment and production of FDBs. For example, Tosok had
advanced measuring technology while Kyori Kogyo and Copal
had press 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, andhas 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 2023

18

FY2030

History of Nidec Group

Consolidated
sales target:

FY2025

FY2022

Sales Trend

FY2014

Consolidated
sales exceed:

FY2005

Consolidated
net sales:

4 trillion yen

2022

2025

2 trillion yen

1 trillion yen

Consolidated
sales exceed:

Consolidated
sales target:

10 trillion yen

Value Creation of Nidec Group500 billion yen

2000

2010

2000s～

Social trends

Spread of the Internet and emergence 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 Laboratorybuilding 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 business portfolio 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.

History of growth through M&A
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 forplant control, etc.
Motors for power generators for wind and hydroelectric power
generation, and rolling mills, etc.
Control equipment for industrial motors
Commercial motors for elevators, escalators, etc.
Automotive electronic control units (ECU)
Automotive pumps

19

NIDEC CORPORATION

2021

2010s～

2020s～

Nidec’s initiatives

Nidec’s initiatives
Social trends

Permeation of smart devices into people’s everyday
lives and increased awareness of climate change

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 research on 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 andindustrial businesses by actively conducting M&A with companies that have strengths inthese fields. As a result of the success in this transformation of the business portfolio, in
FY2017, sales of the appliance, commercial and industrial products business exceeded
those of the precision small motor business, which had been Nidec’s core business since
its founding. Nidec has thus grown into a comprehensive motor manufacturer offering awide variety of motors ranging from micro-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.

Social trends

Becoming a growth company
that can respond dynamically toenvironmental changes

In July 2023, Nidec celebrated its 50th anniversary. Accordingly, starting in
April 2023, Nidec changed its Japanese company name from “Nippon Densan”
to “Nidec” and changed its group companies’ names to include “Nidec.”
Nidec will work to create new functions and value by skillfully combining thestrengths of the Nidec Group companies, which have various technologies ina wide range of fields.
In particular, Nidec is striving to provide solutions to common issues ofhumankind in five areas that align with global mega trends: “automotive
electrification,” “expansion of robot applications,” “home appliances driven bybrushless DC motors,” “labor-saving in agriculture and logistics,” and “spreadof next-generation technology stemming from 5G communications.” Nidec
is committed to actively engaging with the Sustainable Development Goals(SDGs) and will contribute to building a sustainable and prosperous society
through various initiatives including the “2040 Carbon Neutrality Declaration.”

History of growth through M&A
Country

Acquired companies/businesses

2017
2017
2019
2019
2021
2022
2023

FranceUnited Kingdom

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

(Fiscal Year)

Progress of decarbonization and an aging
population with a lower birthrate

Year

Brazil
Japan
Japan
Japan
Italy

2030

Specialized businesses/technologies/products

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

* 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 core business
was HDD motors. Therefore, in case we failed in this big 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

2020

into the field of appliances, commercial and industrial products.
For power steering motors, we faced difficulty in increasing thenumber of customers because of the high entry barriers. However,
the acquisition of the motor division of Valeo S.A. in France in 2006
dramatically expanded our market.

In response to the shrinkage of the HDD market, Nidec promoted diversificationof its business by leveraging the technologies it had developed until then andthrough M&A in the fields of automotive, appliance, commercial and industrial
products, where further growth could be expected. In the automotive business,
pursuing synergies between Nidec’s automotive motors and the technologies
acquired through M&A, Nidec started developing high value-added products formodules and systems. For example, Nidec’s electric power steering (EPS) motor
and an electronic control unit (ECU) of Nidec Elesys, which became a Nidec Group

company in 2014, were integrated to develop a compact, light power pack withminimum noise. Moreover, for E-Axle, an EV traction motor system, Nidec Elesys wasin charge of the development of the inverter. By shifting from production and salesof motors alone to production and sales of modules and systems, Nidec aimed at atransformation from a Tier 2 parts manufacturer to a Tier 1 manufacturer.
In 2021, Nidec acquired Mitsubishi Heavy Industries Machine Tool Co., Ltd., which
specializes in the production of gear cutting machines, and entered the machine
tool business.

INTEGRATED REPORT 2023

20

Business Operations

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

Small Precision Motors

Others

Machinery

Other countries
in Asia

HDD

Shutters
Other small
motorsfor digital
precision motors
cameras273.3 billion yen
12.2%

Tactile devices
High precision reduction
gears for robots

560.7 billion yen
25.0%

Consolidated net sales (for FY2022)

2,242.8

United States

511.0 billion yen
22.8%

billion yen

Electric waterpump

2,242.8billion yen

China

Driving motors

Consolidated
net sales(for FY2022)

Blade pitch control motors

Others84.2 billion yen
3.8%

Consolidated Net Sales by Product GroupElectronic & Optical Components

Consolidated Sales by Region*

Value Creation Strategy

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 ofpeople’s lives and the development of industries by continuing to deliver highest quality, indispensable,
and widely desired products for the common good of all, through active M&As and organic growth.

Japan

Electric oil
pump

Europe392.7 billion yen
17.5%

Electric power
steering motors

420.9 billion yen
18.8%

Household refrigerator compressors* Based on the countries where consolidated Group companies selling products to external customers are located
E-Axle electric vehicle
traction motor system
Air-conditioner motors

Appliance, and Commercial and Industrial Products

Business Sites

Automotive Products

Nidec Group operates globally with business sites in 47 countries/regions.
FY2022

Product group

Operating profit(Billions of Yen)

(Billions of Yen)

ratio (%)

425.3

26.7

6.3

Automotive products

519.7

–42.3

–8.1

914

70.8

7.7

296.5

45.5

15.4

Electronic & optical components

83

13.6

16.4

Others

4.4

0.5

10.9

2,242.8

100.1

4.5

Machinery

Total

NIDEC CORPORATION

Operating profit

Small precision motors
Appliance, and commercial and industrial products

21

Net sales

Number of group
Companies

347

Number of
employees

106,592

Number of countries/regionswith business sites

47(as of March 31, 2023)

INTEGRATED REPORT 2023

22

Performance Highlights
Non-financial Information

Net sales

Operating profit / Operating profit ratio

2,242,824(Millions of Yen)

2,400,000(Millions of Yen)(%)

(1,000 t-CO2)

200,000

20

160,000

159,970

1,918,174
1,800,000

1,534,800

1,475,436

Greenhouse gas (GHG) emissions*2

1,618,064

9.9

8.8

1,200,000

12

2018

2019

2020

2021

2022

2,000
4

2018

2019

2020

2021

2022

(FY)

0

0

Scope1

Operating profit ratio (right axis)

Total assets / Shareholders’ equity ratio(Millions of Yen)

(Yen)

(Millions of Yen)

180,000280

3,200,000

135,759
208.19135,000

109,960210

2,400,000

2,122,493

2,256,024

1,884,008
52.9

90,000140

58,45999.37

100

2,678,483

121,945186.49(%)

2,872,789

232.4045,00344.6

1,600,000

48.6

75

48.2

47.1
50

78.19

45,00070

18,000

2,700

2,295

2,330

593 73577 62511 60457 57

2018

2019

2020

2021

Scope 2 (market standard)*3

720
2022

2018

2019

2020

2021

2022

(FY)

0

(persons)

100

90,00050.6

25.9

112,551

49.1

28.2

2018

2019

Profit attributable to owners of the parent (left axis)

Total assets (left axis)

Earnings per share (EPS) (right axis)

Shareholders’ equity ratio (right axis)

2020

2021

2022

0

114,371

48.2

27.2

106,59280

47.0

R&D expenses / R&D expenses to net sales ratio(Millions of Yen)

(Millions of Yen)

(%)

(%)

300,000

100,000

10

80

100,000

219,156
170,233

118,588

0-100,000-200,000–160,844 –143,464-300,000-400,000

60,000–17,603–100,568

8

2021

23.9

2022

61.3

56.5

60

4.2

4.1

3.6

(FY)

2

20,0002019

Cash flow from operating activities
Free cash flow

2020

2021

2022

Cash flow from investing activities

(FY)

0

2018

2019

2020

2021

2022

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 Data coverage rate relative to sales: FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, FY2021: 53.5%, FY2022: 62.8%*3 For calculation of the FY2022 data, IEA country-specific emission factors have started to be used. To calculate the data of FY2021 and before, the Ministry of the Environment's
Calculation Method and Emission Factors Chart in the Accounting, Reporting, and Disclosure System was referred to.
*4 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 ).
The GHG emissions significantly increased in FY2022 compared to FY2021 as calculations for categories 8, 11, 12, and 15 started.

NIDEC CORPORATION

(FY)

0

Male

24
25

38

34

17

48

2018

2019

2020

2021

(persons)

(%)

10

100

60.0

75

9

2022

(FY)

0

(FY)

Female

60.9

2021

2022

12

3

2020

19

Number of directors

20

2019

50

7

 ercentage of employees who returned from childcare leave (non-consolidated) (right
P
axis)

6

2018

43

41

Number of employees who took childcare leave (non-consolidated) (left axis)

40

0

75

8

0

–311,513
2018

40
2

25

0

(%)

100

68

9

9

8

8

5

5

2

2

55.6

55.6

0

6
50.0

25.0

–164,943

(FY)

96.0

4

40,000

2022

25

69.0
64.5

100

20

6

5.1
4.3

–112,597

78,01567,28062,912–21,458

9,389

78,63080,00094,994

2020

90.0

75

40

Acquisition rate of annual paid leave (non-consolidated)

81,337

143,485

168,049

2019

2021

92.5
89.3

50

20

2018

2020

60

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)

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

200,000

23

(FY)

0

2018

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

108,9062019

10,180

Scope3*4

100

25

0

0

(FY)

(persons)

120,000

8,947

9,000

150,000

117,206

9,636

71

30,00008,052

Number of employees (consolidated) / Female employee
ratio (consolidated*6) / Ratio of managerial and director
positions*7 held by women (consolidated*6)

60,000800,000

2,287

1,000

Operating profit (left axis)

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

2,858

8

4.5

0

(FY)

3,365

3,000

40,000

0

1,906
2,934

8.9

7.1

80,000600,000

4,000

100,081

32,46327,000129,222
108,558(t)

36,000

4,750

5,000

16

120,000

150,837
150,046

170,374

160,000

Amount of final waste disposal*2, *5

Value Creation Strategy

Financial Information

25.0

0.0

0.0

2018

2019

22.2

2020

22.2

50

25

2021

2022

(FY) 0

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

Female director ratio (right axis)*5 For FY2021 and before, calculation was performed based on solid waste only.
*6 Calculation of consolidated data began from FY2019. In FY2022, 95.0% of employees of consolidated Group companies were surveyed.
*7 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 2023

24

Nidec Group’s Competitive Advantages

Business strategies that distinguish Nidec from other companies

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

A1. 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, and ③ Thorough pursuit of cost competitiveness. Specifically, we makeadvance investments before the occurrence of demand 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 a situation where we have an advantage over our competitors. By using thisstrategy, Nidec has captured the world’s top share for many products, including HDD motors.
Given the fact that oligopolies involving a few big companies are found in many industries, thestrategy of “pursuing No. 1 global market share” is perfectly rational.

A2. Speedy management
Speed is Nidec’s greatest weapon. Make a decision and take action as quickly as possible—thisis 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 order because it had accepted on
the spot 3M’s extremely difficult request to “reduce the size of the motor by 30%.” For automotive
products, the lead time is usually three to four years, but we continue to work at the same kind of
speed as when we developed that motor for 3M. In the case of the E-Axle traction motor systemfor electric vehicles, for which we received orders from the Guangzhou Automobile Group in
2017, we commenced mass-production from zero—no plant, no facilities and no people—in only
about one year. Nidec clearly practices speedy management.

A3. 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 to take 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 the electric vehicle (EV) product business, we are making advanceinvestments without hesitation and working to establish a production system for a traction
motor system for EVs, whose demand is expected to grow rapidly in and after 2025.

Abundant management resources that support the company’s business strategies

1. Numerous products with the largest market share in the industry(Financial foundation)
2. Over 100,000 employees around the world (Human resource foundation)
3. More than 200 production sites around the world (Production foundation)
4. Strong experience and expertise in M&As (Growth foundation)

25

NIDEC CORPORATIONNIDEC’s DNA

Corporate culture that turns adversity into opportunity for growth

Q. What are the characteristics of Nidec’s corporate culture thatsees adversity as an opportunity and takes on challenges forcontinuous growth?

A1. The existence of a corporate culture that forms the basis of all business activities
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 of thinking you will do it tomorrow or sometime later, and do it until it’s completed.
2 “Passion, enthusiasm and tenacity”

Value Creation Strategy

Business Strategy

	Gushing passion, welling enthusiasm, and tenacity that fights against difficulties—these are the three core 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.

A2. Corporate culture instilled throughout the organization
Nidec’s corporate culture is not just for the management. In the WPR®* Project, which was launchedin 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.

A3. Corporate culture that views adversity as an opportunity“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 submerged by 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 in the first quarter of FY2020 due to the suspension of operations 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 in operating profit.

Philosophy that lies at the root of the corporate culture:“Pursuit of the world’s No. 1 position for continuous growth”
As exemplified by Nagamori’s remarks such as “Anything but first is equivalent to last place,”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 been able to survive in many industries, and there 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 can be said to be perfectly rational as a business strategy.

INTEGRATED REPORT 2023

26

Overview of the Medium-Term Strategic Goal

Vision 2025
2025

Business model transformation
to become a company withconsolidated net sales of over
10 trillion yen

2030

Consolidated net sales:

10

trillion yen(target)4Consolidated net sales:

11.6

10.3

Becoming a global company that
continues to grow for the next

100 years and beyond

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.

2 Incorporation of the ROIC target:

In Vision 2020, ROE (return on 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 achievecarbon neutrality and strengthen governance have been expressly adopted
as ESG goals.

1.18

1.20

2015

2016

Sales (trillion yen)

7.8

1.46

1.48

1.53

1.62

2017

2018

2019

2020

Operating profit ratio (%)

M&A

10.0

7.1
5.0

trillion yen

4.5
3.00
trillion yen

2.24

Organic
growth

2025

2022

(FY)

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)

Framework for the New Medium-Term Strategic Goal

2

Consolidated net sales for FY2020 were 1.6 trillion yen. To achieve theconsolidated 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 business, we expect in FY2025 sales of approximately
3 million units of our EV traction motor system, E-Axle, whose market
is expected to expand significantly in the future. We expect its sales toincrease by several hundred billion yen by the same fiscal year. In addition,
there are many product groups, such as electric power steering (EPS)
motors, whose annual sales growth rate can be expected to exceed 10%

Business Portfolio Management
on an order basis. The automotive business is expected to have high sales
growth rate as a whole.
In the small precision motor segment, we cannot expect significant sales
growth for HDD motors, which have been the driving force behind ourbusiness 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 withheat management systems, which is another growth field.

Achieve high growth with aggressive investment in key growth areas

Medium-Term Strategic Goal

4 trillion yen

Productivity improvement

To double sales and profit per employee

over

15%

FY2025
Consolidated net sales:

Vision2025

4,000

To be a top-rated ESG company

FY20203  Strengthen the unified organization of the Nidec Groupand its governancebillion yen (target)

1,300

1,300

100
billion yen

100billion yen

Consolidated net sales:

1 Address social issues with the accumulated skills ofcreating the world’s first and No. 1 product2 Promote ESG management centered on carbon neutrality

1,618.1 billion yen

800

601.6
443.6

Small
Precision
Motors

NIDEC CORPORATION

8.8

15.0%*
15.0%* We target an operating profit ratio of 15% for a sales target of 3 trillion yen by FY2025 attributable to organic growth.

Review of Vision 2020 and Road to Vision 2025

27

9.9

8.7

8.5

4

11.4

10.0

7.4

2021

ROIC (return on invested capital):

management 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 the evaluation
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 our management strategy and eventuallycontribute to improving the management indicators of the entire company.

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

Target for consolidated net sales:

Achieving an Increase in Both Sales and Profits

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 are committed 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 15% ormore in FY2025.
For existing businesses, we will seek growth opportunities throughtrillion yen

trillion yen

Consolidated net sales in FY2020 were1,618.1 billion yen, and we failed toreach the consolidated sales targetof two trillion yen, which we aimed toachieve in the medium-term strategic
goal Vision 2020 covering the period
FY2015 to FY2020. In Vision 2025, we
aim to achieve consolidated net salesof 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 listedon the right.

1

Consolidated net sales:

2022

2

Framework for the New Medium-Term Strategic Goal

Value Creation Strategy

The new medium-term strategic goal Vision 2025 is a milestone
for achieving consolidated net sales of 10 trillion yen by FY2030.
In Vision 2025, we plan to increase consolidated net sales 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 centered on growth fields inexisting businesses.

358.1

Automotive
Products

214.8
Appliances,
Commercial
and Industrial
Products

Other
Product
Groups600
billion yen
Organic
growth(Target)

Small
Precision
MotorsOrganic
growth(Target)Automotive
Products

Organic
growth(Target)Appliances,
Commercial
and Industrial
Products

Additional amountthrough new M&A(challenging target)
Consolidated net sales:
Total of 1,000 billion yen (target)
600
40 billion yen
Organic growth(Target)Other
Product
GroupsINTEGRATED REPORT 2023

28

Overview of the Medium-Term Strategic Goal

3

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
be necessary 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

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

Implementation of activities for ROIC improvement

Examples of auto businesses
EV platform

Trillions of yen

EPS
powerpack

Electric oilpump module

are
t sh
arke f scale
m
l
o
a
ies )
lob
nom
c’s g
ts
Nide ugh eco n of par
e
s
a
o
o
e
r
i
r
t
h
c
c
t
① In uction e produ
ous
t red
(Cos and in-hLiquid Crystal Display (LCD)
panel handling robot

Tens ofbillions of yen

AC servo
motor
Motor

Reducer

Device alone

Small Precision Motor &Solutions Business Unit
ROIC

e
t siz
arke s
m
d
iou
pan
onsc
d ex
s an f price-c arket)
t
e
k
o
ar
m
etite
new
ew m
te n the app reate a
a
e
r
c
e
d
②C
ulat
s an
(Stim sumer
con
ROIC

Logistics solution

Examples of robotic businesses

Geared servo motor

ModuleSystem

4

Appliance, Commercial &Industrial Motor Business
Unit ROIC

Expansion ofbusiness areasR atio of cost of goods soldIn-house parts production rate

Optimize invested capitalC ash Conversion Cycle (CCC)
Automated production rate,etc.

Increase profitabilityR atio of cost of goods soldIn-house parts production rate

Optimize invested capitalC ash Conversion Cycle (CCC)
Automated production rate,etc.

Increase profitabilityR atio of cost of goods soldIn-house parts production rate

Optimize invested capitalC ash Conversion Cycle (CCC)
Automated production rate,etc.

Solution

Basic Policy for EV Traction Motors
market share is accelerating due to low price competition.
Even in this environment, we have already launched the 2nd generation
E-Axle model, which has significantly reduced costs. Furthermore,with the launch of the 3rd generation model, which has further reduced
costs, we believe that we will be able to survive the competition going
forward. In addition to the shipments in China, a joint venture with
Stellantis has already begun mass production of E-Axles in Europe,and we expect further volume increases from 2024 onwards.

We anticipate a significant increase in the demand for EVs in 2025,
marking a watershed year in the industry, mainly due to a decline in
EV prices caused by a decrease in battery prices. China’s EV market has
been showing rapid growth in recent years. In 2022, the number ofNEVs (BEVs + PHEVs) sold in China reached 6.89 million vehicles (figure
published by the China Association of Automobile Manufacturers),
making it the world’s largest EV market. On the other hand, competition
among automakers and suppliers is becoming fiercer, and the battle for

Automotive Motor & Electronic
Control Business Unit
ROIC

Increase profitability

Wafer/LCD
transfer robot

Guideless Autonomous
Guided Vehicle (AGV)

Ultra-flat geared
actuator

Framework for the New Medium-Term Strategic Goal

results. It is important to implement improvement activities
based on the characteristics of each department.
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.

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 inline with the strategy of each business department. For instance,since the small precision motor department and the automotive
department have different customer bases and different businesslead times, there is a difference in the measures required to
improve ROIC and in the timeline until the measures produce

Expansion of expected market size

Hundreds ofbillions of yen

ROIC Management

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

Diagram of business model shift in the auto and robotic areas

EV traction motor system E-Axle

5

Framework for the New Medium-Term Strategic Goal

carbon neutrality. Our declaration consists of two goals:

10,000(1,000 units)

Energy consumption is expected to rise in proportion to anincrease in sales. To address this, we plan to reduce net CO2
emissions to zero by FY2040 (Scope 1 and 2) by 1 promoting(Scope 1 and 2) by FY2040 and 2 laying out a plan to reduceenergy saving, 2 shifting to renewable energy sources in theCO2 emissions in the supply chain (Scope 3) by FY2025.

energy mix, and 3 investing in carbon offset projects.

Achieving carbon neutral by FY2040 (Scope 1 and 2)
Developing supply chain (Scope 3) action plans by FY2025
Changes in CO2 emissions due to the introduction of renewable electricity
Consolidated sales target:
10 trillion yen

8,000

6,000

Consolidated sales target:

448,000 units
CO2 emissions(10,000 tons)

2,000

49

83

226

339

2019

2020

2021

2022

2023

(Forecast)

AMEC (Automotive Motor & Electronic Control Business Unit)
NIDEC CORPORATION

100

545
2024

(Target)2025(Target)NPe (Nidec PSA emotors)

2026(Target)2027(Target)Other regions (North America, etc.)

2030(Target)

(FY)

2020

180

Renewable shift &energy savings(Renewables: 40%)

FY2040Carbon Neutrality

50
2025

Avoidable CO2 emissions through the use of renewable electricity

Renewables-led CO2
emission reductions

Renewable shift &energy savings(Renewables: 80%)

4 trillion yen

China (AMEC)

4,000

29

F actory production load rate
Sales per employee,etc.

1 achieving carbon neutrality for business activities

10,0000F actory production load rate
Sales per employee,
etc.

Pathways to Carbon Neutrality

In Vision 2025, we have newly declared the goal of achieving

Lead the EV era as a company that triggers creative disruption and goes beyond the automobile industry tradition
E-Axle sales forecast

6

Framework for the New Medium-Term Strategic GoalF actory production load rate
Sales per employee,
etc.

Value Creation Strategy

Framework for the New Medium-Term Strategic Goal

2030
CO2 emissions from purchased fossil-based electricity

0

2040

(FY)

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

CO2 emissions from the direct use of fossil fuels
INTEGRATED REPORT 2023

30

Financial Strategy

Image of a cash management system for fund concentration

Steadily implementing measures
to build a financial foundationfor our future growth

EuropeChina

Americas

Akinobu Samura

Management overview

Financing policy and effective use of funds within the Group
profits over the past few years, turned into the black thisfiscal year, entering a stage of contributing to our profits.
Against the backdrop of the spread of COVID-19
and the Russian invasion of Ukraine, the soaring raw
materials prices, longer lead times, and confusions
in logistics had a significant impact on business
management on a global basis. As a result, we wereforced to secure raw materials through large-lot orders,
while inventory adjustments by customers prolonged
due to rapid fluctuations in demand, which continued
to put pressure on our balance sheet. However, thebusiness environment is gradually returning to normal.

Shift to a dream-filled business portfolio
In FY2022, our sales were 2,242.8 billion yen andoperating profit was 100.1 billion yen. Operating profit
decreased significantly by 41.3% from the previous fiscal
year due to recording of 75.7 billion yen as structuralreform expenses.
In this business environment, toward achieving the net
sales target of 4 trillion yen announced in Vision 2025
and further 10 trillion yen in FY2030, we are working onelectrification-related businesses, including not only theautomotive E-Axle business but also motors for small
EVs and electric motorcycles; entry into the machine

tool business; new initiatives in the field of equipment
and devices, such as reducers for cooperative robots;businesses for the aerospace market, such as motors for
Flying Cars (eVTOLs) and stratospheric communication
platforms; and the introduction of green innovationrelated projects, such as battery energy storage systems
and charging stations. By not only leveraging organic
growth but also employing M&A strategies, we arestrongly promoting a shift to a dream-filled businessportfolio incorporating growth areas for the future.

31

NIDEC CORPORATION

at the same time strongly promote various measures,such as significantly improving the cash conversion
cycle and increasing investment efficiency by balancing
investment with depreciation costs, from the perspectiveof One NIDEC/total optimization. Through thesemeasures, we will ensure robust financing capacity sothat we will not miss any growth opportunity.

In addition, to ensure effective use of funds within
the Group, a cash management system has been
introduced for each region, such as Japan, China, and
the Americas, to effectively utilize surplus funds. We havealso introduced a CMS that connects different countries,
expanding the CMS network globally. Furthermore, inconsideration of recent geopolitical risks, we aim tohedge risks and also reduce interest-bearing debt by
redirecting surplus funds to Japan from other countries.

Evolution of ESG management“Sustainable business growth takes hold when strategiesalign closely with solutions to universal issues. That is our
firm belief and the common thread running through our
growth-oriented thinking.” Under this basic belief, Nidec
upholds the promotion of ESG management as one of its
medium-term strategic targets. Last year, we establishedthe Sustainability Committee within the Board of Directors.

Image diagram

New
Board of Directors

Building a solid financial foundation to support growth strategies
Now the top priority in our financial strategy is to build
a solid financial foundation that supports the growthstrategy for the next leap forward. For this reason, we
carried out a large-scale structural reform last fiscal year
and advanced a shift in the structure of fixed costs to
one that matches the future business portfolio. Based on
this, we will realize a V-shaped recovery in earnings andIn financing, we raise funds for medium- to long-term
growth while incorporating the perspective of asset andliability management (ALM), such as cash flow projections
for each fiscal year and matching sales and procurement
currencies, as well as taking various factors, including thefollowing, into consideration: both growth and financial
discipline, the balance between direct and indirect
financing, and the balance between long-term and shortterm procurement. Through these measures, we aim tostabilize our financing structure.

Value Creation Strategy

Asia

Senior Vice President
Chief Financial Officer (CFO)

Nidec celebrates its 50th anniversary this year. Since
its founding in 1973, despite multiple difficulties it has
encountered, Nidec has rapidly expanded its sales scalein growth fields, which reached 1 trillion yen in FY2014
and exceeded 2 trillion yen in FY2022. Along with thegrowth in sales, profits have also steadily increased.
In 2019, as a result of quickly sensing signs of rapid
progress of the shift to EVs in the automotive field anddeploying a “standby” strategy by making advanceinvestments, we gained the top share in the E-Axle
external manufacturing market in China. On the other
hand, the E-Axle business, which was a heavy burden on

Japan

With the knowledge of Outside Members of the Boardof Directors, who make up the majority of the committee
members, active discussions are held from a longterm and wide-ranging perspective. Through earnest,
continuous discussions, we will enhance the sustainabilityof our business management.

Quarterly

Sustainability 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 upervising the executive organization
S
Reflecting external opinions inmanagement
The majority of committee members
are Outside Directors, including the
Chairperson.

Monthly
ESG Materiality
Steering Committee

To implement materiality-related
initiatives and monitor theirprogress

Executive organization
 embers are theMManagement Committee
members and, in principle,
all Vice Presidents.

INTEGRATED REPORT 2023

32

Human Resources Strategy

Tomoko Hirata

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

Toward enhancing human capital
A distinctive feature of Nidec’s business strategy isto actively engage in M&As. Because of this, we have
conventionally respected the autonomy of each of theacquired companies and promoted the “federal-style”
management system, in which companies mutuallycompete and grow within the Group. However, nowthat market boundaries have been removed due toglobalization, we are advancing a shift to “group-wide
unified management,” which connects technologies
and human resources developed at different companies
to address management issues for the entire Group.
One NIDEC is a keyword in aiming to realize
management based on total optimization, which is
to create synergies within the Group, in other words,“group-wide unified management.”
However, in order to ensure that the foundation of the
Nidec Group’s strengths will not be shaken due to thechange in management style, it is also important to passon Nagamori-ism, which is the values and behavioral
patterns of our founder Shigenobu Nagamori, and the
Nidec Way, which is the action guidelines and norms
for employees, to the next generation. By inheriting
the competitive advantage we have cultivated so far

The Nidec Group’s approach to human capital management
Human capital management is a way of managementthat views human resources as capital and maximizes
their value to improve corporate value over the medium
to long term. At the Nidec Group, the founder’s spirit
is placed at the core of its human capital management,from which the NIDEC Global Personnel Policies andother personnel guidelines and measures are developed.
We believe these guidelines and measures will lead to

NIDEC Global Personnel Policies and major personnel measureswhile also building a foundation on which all our Group
employees can fight together across all boundaries,
I believe that we will be able to become “a global
company that grows sustainably for the next 100 years
and beyond” and “the world’s leading solution-providing
business group that solves numerous problems for thepeople of the world,” which are the Vision held in our
Corporate Philosophy.
Furthermore, the NIDEC Global Personnel Policies
are new important guidelines for realizing the
Vision, compiling our basic approaches to company
organization and human resources. The aim is to put
into words the basic policies and principles for various
personnel strategies and measures that we will deploy
in the future and thereby ensure consistency in theawareness and intentions shared on a global scale.
This includes policies related to systems that allow over
100,000 employees working in the Nidec Group to play
active roles in a fair framework and freely move between
businesses and companies, which are expected toeventually strengthen the governance of theentire group.

The most basic policy of the NIDEC Global Personnel Policies is “For Our Future, For Our Dream—Our organizations andhuman resources will continue to take on challenges for the future of people around the world and our dreams.” Under
this are a policy related to organizational and human resources development and a policy related to personnel systems.

 rganizational and human resourcesO
development policy
Encourage Uniqueness, Respect Team Spirit

This is a policy regarding the software area of personnel
affairs (“people” = measures related to individuals andautonomous employee groups). Based on this policy, we
promote organizational development measures to fostera culture that accepts diverse perspectives while sharing
a vision, and human resources development measures tohone individual uniqueness.

Founder’s spirit (The Challenging Road, NIDEC Way)

Recruitment/retirement“For Our Future, For Our Dream” We will continue to be an organization that is always ready to take on challenges for the future of people around the world and for our dreams.
Organizational and human resources development policy (for software area)

Personnel system policy (for hardware area)

Organizational development

Strengthen public relations for recruitment

Personnel allocation

Encourage
UniquenessE stablishing relocation rules common to both
inside and outside Japan evelopment, disclosure and utilization of job
D
descriptions

Reward Based on
Contributions without Bias

Welfare benefitsE stablishing the Group-wide integrated
welfare systems

Respect Team Spirit

Reward Based on Contributions without Bias

* The personnel measures in the above diagram are mainly applied to the Japan region.

We are open to diverse opinions
and create new value throughhonest communication.

Performance will always be rewarded in a correct, fair, open, andimpartial manner using simple criteria, and appropriate career
opportunities will be provided.

Details of our specific personnel-related activities aredisclosed in the annual securities report for the fiscal
year ended March 2023. Regarding measures for theGroup’s unification and the establishment of humancapital management, in particular, we will proactively
disclose the specific details of activities andtheir progress.

Planning and operation of personnel systems

Appraisal, compensation, ranking and other systems, recruitment, attendance, salary, etc.

Fostering organizational cultureE nhancing support for career development, providing
customized training programs for management

Ranking

We respect individuals who
proactively demonstrate theirvalue.

Human resources development

Human resources development

Overtime work management
Human rights due diligence

Organizational management(corporate governance)

Building a global personnel system
Nomination Committee, Remuneration Committee,
executive remuneration managementP romoting organizational development tailored toworkplace conditions

Human rights, compliance, safety and health

Encourage Uniqueness

Skill development, career support, training of executives, etc.

Respect
Team Spirit

Training candidates for President
Visualization and development of human resources
with high potential

Relocation

NIDEC Global Personnel Policies

This is a policy regarding the hardware area of personnel
affairs (“things” = measures related to systems andframeworks). Based on this policy, we develop the coresystems (ranking, compensation, appraisal) necessary
as the company’s personnel infrastructure and theirassociated systems and frameworks for organizational
management, relocation rules, welfare benefits, etc.
from a fair, transparent, and impartial perspective.

Our organizations and human resources will continue to “take on challenges” for the future of people around the world and our dreams.

In-house job posting/rotation in the Group Nidec is a global company that will grow sustainably for the next 100 years and beyond.
 Nidec is the world’s leading solution-providing business group that solves numerous problems forthe people in the world.

Personnel system policy
Reward Based on Contribution without Bias

“For Our Future, For Our Dream”

Successor (executive) development

Visioncontributing to the company’s business performanceand other achievements from organizational or
personnel aspects. To achieve consolidated net sales of
10 trillion yen in FY2030 and become a global company
that continues to grow for the next 100 years andbeyond, we will steadily advance the development andimplementation of guidelines and measures based on
the above approach to human capital management.

Value Creation Strategy

Focusing on the Group’s unity throughinitiatives to achieve medium- tolong-term growth and enhance
human resources

Appraisal

 perating Group-wide common evaluation andOpromotion criteria

CompensationI nitiatives to increase annual income by 30% comparedto FY2020
Adopting Group-wide common bonus payment standards

In addition, how we create a framework to continuously
produce management talents is explained in thefollowing content. We have established systems andmechanisms to avoid concentration of the decisionmaking rights on specific individuals.
Please click the URL below to see our specific personnel-related activities.
https://www.nidec.com/-/media/www-nidec-com/ir/library/reports/FY22Q4_en.pdf

Penetration of philosophies, organizational development, health-oriented business management, etc.

33

NIDEC CORPORATIONINTEGRATED REPORT 2023

34

Human Resources Strategy

Developing next-generation leaders

Concept of talent pooling
Talent pools (from management rank to responsible staff rank)

Chairperson
Meeting body
Nomination Committee(advisory body)

Board of Directors

1 Management structure after April 2024 (scheduled)
Shigenobu Nagamori, now Representative Director, Chairman
and CEO (Chief Executive Officer), is scheduled to leave thepositions of Chairman and CEO and will take on the newly
established “Group Representative of the Board of Directors,”
without the right to represent the company. He will oversee
the management operation from FY2024 onwards andoccasionally take the lead in providing guidance for thesmooth operation of the management structure, with theaim of helping to build a system that will not overlook thecompany’s performance worsening or slowdown in growth

as the founder. Hiroshi Kobe, now Representative Director,
President and COO (Chief Operating Officer), will assume theposition of Representative Director and Chairman from April
2024 to March 2028, serving as CEO (Chief Executive Officer).
In April 2024, one of the five persons who are currently
Executive Vice Presidents will become President and serve as
Representative Director, President and COO (Chief Operating
Officer) until March 2028.

Human Resources
Development Committee

President
Executive Vice
Presidents
CxO and other officers
Presidents of Group companies

Officers/executives classManagement to leaders class* The above information includes matters requiring resolution at the General
Shareholders’ Meeting and therefore is stated as unconfirmed information.

Management structure after April 2024

Career Development Meeting

Responsible staff class

Nagamori Group Representative of the Board of Directors

Chairman
Nagamori (CEO)Chairman Kobe (CEO)New Chairperson (CEO)New Chairperson (CEO)New Chairperson(CEO)

President
Kobe (COO)

New President (COO)

New President (COO)

New President (COO)

New President
(COO)

2024

2028

2032

2036

(FY)

2 Succession planning
We have established a talent pooling system, in which, forexample, Vice Presidents are pooled as candidates for CxOs
(Chief x Officers) and Presidents of Group companies, CxOs
and other officers and Presidents of Group companies arepooled as candidates for Executive Vice Presidents, andExecutive Vice Presidents are pooled as candidates for
President, so that candidate talents are always prepared
for all ranks and those suitable for President are graduallypromoted to higher pools. We set the necessary criteria foreach pool and select only those who are capable of fulfilling
the responsibilities and duties of the relevant role.
In shifting from the traditional top-down management
system to a group management system, a possible risk isthat the speed of decision making and other management
actions may slow down. However, because only those who
fully understand the NIDEC Way, which defines our corporate

35

NIDEC CORPORATION

Succession to Executive
Vice President
Succession to important
positions in the Nidec Group
Selection and training ofexecutive management
candidates in the Nidec
Group
Visualization, discovery,
and development of
human resources withhigh potential for the
futureMatters related to the selection of candidates and human resources development in each rank are discussed mainly at
meetings of the committees below.

Kobe Deputy Group Representative of the Board of Directors

2023

Succession to Chairperson
Succession to President

Value Creation Strategy

Celebrating our 50th anniversary this year, we have formulated a new successor development plan with an eye
toward the next 50 years. Under the new plan, a leader selected from within the Nidec Group will be in charge ofmanagement in a group management framework, which will ensure that sustainable management can be maintained
no matter who becomes the leader. To implement this plan, it is necessary to continuously develop candidates for
managers within the Group. We have also established a meeting body for matters related to succession planning
while working to create systems to avoid concentration of decision-making rights on specific individuals.

culture and the action guidelines and norms that should
be shared by all our employees, and also understand theimportant matters for our business management are selected
as candidates for President, it is unlikely that the speed ofmanagement, which is a part of our corporate culture, will be
reduced. How can the abilities of candidates for President beensured? Is there anyone who has the abilities equivalent tothose of the founder? To address these risks, we will adopt
a group management system in which multiple people withvarious abilities jointly manage the company. We believe
this will lead to the maintenance and improvement of stableabilities of the company and the Group as a whole.
Based on the recognition that understanding of ourcorporate culture is the most important thing for the
management of our company, we have adopted the methodof selecting successors from within the Group.

Nomination Committee

On November 5, 2022, the Nomination Committee was
set up as an advisory body to the Board of Directors.
It discusses mainly the selection and appointment ofmanagement (Directors, Executive Officers). The purpose isto ensure fairness, transparency, and objectivity in deciding
the selection policy, selection criteria, prospective candidates,etc. for our Directors and Executive Officers by obtaining
appropriate involvement and advice of independent Outside
Directors, and to thereby further enhance our corporate
governance structure.

Human Resources Development Committee

The Human Resources Development Committee has beenin place since FY2020, consisting of the President, Vice
Presidents, CxO or other officers, and the Human Resources
Department as members. It discusses mainly succession
plans for important positions and medium- to long-term
training plans for management candidates. Important
positions mentioned here refer to positions such as
business unit heads and function leaders.

3 Policy and criteria to select President and Executive Vice President, etc.
The policy and criteria that the Nomination Committee deliberated to select the Members of the Board of Directors,
Vice Presidents, etc. are as follows.
President

Executive, etc.

The candidate must have excellent leadership skills tobe able to contribute to making comfortable societies
globally via the Nidec Group’s products (solution
businesses), and control and lead the entire Nidec Group.

The candidate must be able to exercise Nidec Way, andlead the Nidec Group in a positive direction. The candidate
must be able to maximize the Nidec Group’s corporate
value, and possess firm record of achievements thatare convincing to everyone. The candidate must haveexcellent knowledge and experience, and insight for
global diversity to execute the Nidec Group’s businesses.

Executive Vice President
Among Nidec’s executives and Nidec Group companies’
Presidents, the candidate must be able to demonstrate
outstanding leadership skills for reform, and have madeexcellent contributions to the Nidec Group. The candidate
must demonstrate potential to serve as President.

* Nidec Way: Code of conduct and management knowhow to serve as guidance for theentire Nidec Group globally.

INTEGRATED REPORT 2023

36

Technology Strategy

Expanding the E-Axle lineup
and quickly getting ready formass production

Effects of collaboration ~Efficiency and performance improvement through integration~

Integration of parts by X-in-1, ECU integration

Senior Vice President, Deputy Chief Technology Officer
Head of Nidec Semiconductor Solutions Center andGeneral Manager of Business Planning and Strategy Department

Reduction of high-voltage harnesses, connectors
Optimization of coolant channels
Optimization of in-car communication cables
and connectors such as CAN

Collaboration on semiconductor solutions
On June 5, 2023, Nidec and Renesas Electronics
Corporation announced collaboration on semiconductor
solutions for a next-generation E-Axle for EVs.
The following day, the two companies held a jointpress conference.

EVs are increasingly adopting the EV drive motor
system called E-Axle, a 3-in-1 unit which integrates
a motor, inverter, and gearbox, and Nidec has been
shipping the 3-in-1 E-Axles since 2019. The latest trend
to respond to the growing demand for smaller size,
light weight and lower cost is the accelerating moveto integrate power electronics controls such as DC-DC
converters, on-board chargers (OBCs), and power
distribution units (PDUs) into a X-in-1 platform. This moveis especially remarkable in China. We are also planningto adopt the X-in-1 for the third generation E-Axle, whichis scheduled to be launched on the market after 2024.
While we can expect benefits from X-in-1 such as higher
efficiency due to total optimization, reduction in weightand volume, reduction of high-voltage cables and coolingcables, and reduction of the number of semiconductors
and harnesses between electronic control units (ECUs),there remain issues such as concerns about safety
integrity, decline in maintainability, complicated coolingsystems, and requirements for higher reliability of parts.
To solve these issues, Nidec has decided to collaborate
with Renesas Electronics Corporation to develop a highly
reliable and high-performance proof of concept (PoC)
for the X-in-1 system. The PoC is designed to support
the industry’s highest performance and efficiency aswell as smaller size, lighter weight and lower cost for

37

NIDEC CORPORATION

MCU/PMIC

Micro controller unit, power management IC

High-voltage harness

INV: Inverter		
OBC: On-Board-Charger
BMS: Battery-Management-System

PDU

In-car communication

DCDC: DCDC converter
PDU:     Power-Distribution-Unit

Example of X-in-1 ECU
integration optimization

Current separated X-in-1

the X-in-1 system. We plan to launch the first PoC by theend of 2023, which will feature a 6-in-1 system with a
DC-DC converter, on-board charger (OBC), and power
distribution unit (PDU) as well as a motor, inverter, andgearbox. This PoC will include power devices basedon SiC (silicon carbide). As a second phase in 2024,
we plan to develop a highly integrated X-in-1 PoC thatincorporates a battery management system (BMS) alongwith other components. The second PoC will replace
the power devices with GaN (gallium nitride), offering
excellent performance in high-frequency operation, tofurther reduce size and cost.
Nidec selected Renesas Electronics Corporation as a
strategic partner for EV semiconductor solutions, andthrough RFQ (Request for Quote) of the company, we
will define the necessary specs for the next-generation
E-Axle and advance its development. Building on the PoC
developed through this collaboration, we plan to rapidly
productize E-Axle systems to expand our E-Axle lineup
and quickly get ready for mass production.

Coolant channel

Value Creation Strategy

Integration of semiconductor components,
control boards

Ryuji Omura

MCU/PMIC

PDU
Inv
Gear

Inv

MCU
PMIC

DCDC

BMS

DCDC

OBC

BMS

MCU
PMIC

MCU
PMIC

MCU
PMIC

MCU
PMIC

Gear

OBC

MCU/PMIC

3 in 1
Coolant

Coolant

CAN BusCAN Bus

Trends in next-generation E-Axle (X-in-1 system)
1st generation -2019

2nd generation 2020-2023

3rd generation 2024-

Motor

Motor

Motor

Transmission

Transmission

Inverter + MCU

Inverter + MCU
e-Powertrain 3-in-1

E-Axle
DC-DC

OBC

DC-DC

OBC

PDU

PDU

BCU (individual function)

Power management 3-in-1

Power electronics control

VCU (partially individual control)

Transmission
Inverter + MCU
DC-DC

OBC
PDU

Vehicle Computer(centralized control)

Units for each individual function

Partial function integration

X-in-1 unit

(Individual control)(Partially individual control)(Centralized control)

Trends in E-Axle/power electronics
control devices
Packaging progresses from combinations of individualfunction units to partially integrated function units,
while integration of power control units progresses fromindividual control of motor, inverter, and electric power
to integrated control of multiple functions, and then to
centralized control, to form an X-in-1 unit.
VCU:
MCU:
DC-DC:
OBC:
PDU:
BCU:

Vehicle-Control-Unit
Motor Control Unit
DC-DC cconverter
On-Board Charger
Power Distribution Unit
Body Control Unit     Through integration, it is necessary to develop a platform with a  reduced number of common parts to achieve higher development efficiency and ease of vehicle model deployment.
INTEGRATED REPORT 2023

38

Business Strategies

Small Precision Motors

Sales increased 0.1% from the previous year to 425,333
million yen, including the impact of foreign exchange
fluctuations (an increase of approx. 63,400 million
yen from the previous year). Net sales of HDD motors
decreased by 20.6% year on year to 78,462 million yen,including the impact of foreign exchange fluctuations(an increase of approx. 21,000 million yen from theprevious year), mainly due to a decrease in the sales
volume. Net sales of other small motors increased
6.4% from the previous year to 346,871 million yen,including the impact of foreign exchange fluctuations(an increase of approx. 42,400 million yen from theprevious year). Operating profit decreased 37.1% fromthe previous year to 26,680 million yen, including theimpact of foreign exchange fluctuations (an increase of
approx. 4,700 million yen from the previous year), as aresult of the recording of approx. 5,600 million yen as
structural reform expenses in FY2022.

In FY2022, the business environment surrounding
this segment was severe. Global shipments of HDDs
decreased from around 260 million units in FY2021 toaround 170 million units in FY2022. Regarding HDDs
for data centers, a slowdown in investment by major
IT companies led to inventory adjustments, which had
a significant impact on the profitability of our motors
for HDDs. Regarding motors other than HDD motors,
shipments of data centers, PCs, smartphones, etc. all
decreased, which affected the shipment volume andprofitability of our motors.
In FY2023, many predict that recovery in markets
of data centers, PCs, smartphones, etc., including
completion of inventory adjustments, will take sometime, and the declining trend in HDD shipments is
expected to continue. Therefore, we expect that thebusiness environment for this segment will continue
to be severe.

As the sales volume of IT devices such as PCs andsmartphones is leveling off, it is difficult to expect
further growth of the existing businesses of thissegment. Therefore, transformation of our businessportfolio is crucial for our continued growth in
the future.
As part of the initiative for business portfoliotransformation, in addition to thermal management(invested in Chaun-Choung Technology Corporation(CCI) in 2018), we have been focusing on motors forsmall EVs and electric two-wheeled vehicles. As forsmall EVs, a low-price EV released in China in 2020
became the top seller in the EV market in China forthe second straight year in 2022. We have received
orders for and inquiries about motors for small EVs,
and mass production for customers began in FY2022.
We estimate the potential demand for low-price EVs to
be in the hundreds of millions units, and we thus expect
further business expansion in this field.

Net sales

Operating profit / Operating profit ratio(Millions of yen)

(Millions of yen)(%)

80,00020

750,000

Organic growth
600 billion yen (target)

As for two-wheeled vehicles, the wave of electrification
is surging as it has for four-wheeled vehicles.
We recognize that it is a market in which demand
for motors for drive units is expected to increasesignificantly. The existing market scale of two-wheeledvehicles 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 are for exports) are thelargest markets. Nidec is conducting its sales activities
mainly in these two countries and has obtained orders
from several top manufacturers. In India, Nidec built
a plant in Neemrana, Rajasthan, and has establisheda system capable of responding to the Make in India
policy. We will expand this plant to establish a system tosupply motors for electric two-wheeled vehicles in India.
Regarding areas other than the above, we see
opportunities for significant business growth in areas
such as drones, metaverse, and medical care.
We therefore recognize these areas as priority areas for
our Three News Activity (new markets, new customers,
new products).

Business Strategies

Medium- to long-term growth strategies

Review of FY2022

66,92315.1
60,000500,000

441,467

424,288443,598

424,907425,333

15

54,55612.4

45,11642,43810.6

40,00010

10.0
26,680250,000

6.3
5

20,000

0

2018

2019

2020

2021

2022

2025

(FY)

0

2018

2019

2020

2021

2022

(FY)

0

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

39

NIDEC CORPORATIONINTEGRATED REPORT 2023

40

Business Strategies

Automotive Products

1. E-Axle profitability improvement plan

Sales increased 24.4% from the previous year to519,654 million yen, including the impact of foreignexchange fluctuations (an increase of approx. 46,600
million yen from the previous year), due mainly to anincrease in sales of E-Axle drive motor systems for EVs,
despite the ongoing impact of the Russian invasionof Ukraine and difficulty for customers in procuring
semiconductors and other electronic parts. Operating

profit decreased by 52,966 million yen from theprevious year to a loss of 42,291 million yen, including
the impact of foreign exchange fluctuations (anincrease in profit of approx. 2,900 million yen from theprevious year), as a result of the recording of approx.
54,100 million yen as structural reform expenses in thefiscal year under review.

Medium- to long-term growth strategies
Although the target year for achieving the estimatedsales volume of 4 million E-Axle units was postponedby a year to FY2026, our EV-related products will stillbe the core of our future growth. While the number ofcustomers in China has increased from two to five (all ofwhich are top BEV selling manufacturers in China), ourjoint venture with the Stellantis (formerly PSA) Group in
Europe started mass production of E-Axle in September

2022. Thus, the estimated E-Axle sales volume of 4
million units for FY2026 is the total of the sales by Nidec
for China and the sales by the joint venture with theStellantis Group for Europe.
As the environment surrounding the EV industry
is rapidly changing, we are evolving our businessstrategies for EV-related products to adapt tosuch changes.

Net sales

Operating profit / Operating profit ratio(Millions of yen)

(Millions of yen)(%)

45,00030

Organic growth
1 trillion yen (target)

1,200,000

1,000,000

32,90030,00011.1
800,000

400,000

19,526

6.4

5.5

15,000600,000

297,298

358,075

10,67520

2.6

0519,654333,241

20

21,196

0417,643–8.1–15,000

200,000–10–30,000

In the field of EV-related businesses, both automakers
and suppliers expect that severe competition
will continue for a long time to come. Under thisrecognition, Nidec positioned turning the E-Axle
business, which has been in the red since its launch,
into the black as one of the top management priorities
in FY2023. Mass production of the second-generation
E-Axle, which achieved a significant cost reduction
from the first-generation model, started on a fullscale in April 2023, increasing its ratio in shipment.
In addition to this, as a result of the shipment control
of unprofitable models and the efforts to reduce
costs, including general administrative expenses
and development costs, profitability of the E-Axle
business improved significantly. We believe that further
increasing the profit margin of this business anddeveloping it as a sustainable business without relying
on borrowed capital or cash flows from other businesssegments for future investment will greatly contributeto securing our competitive advantage.

2. Direction of E-Axle development

Customer needs for E-Axle in the Chinese EV market are
rapidly changing these days. Specific changes in needs
include the following: (1) Lower power: Major output
demand is shifting from 100 kW-150 kW to around70 kW. (2) Higher voltage: The need to shorten charging
time has generated demand for higher voltage
inverters around 800V. (3) Demand for X-in-1: Demand
for X-in-1 systems integrating a DC-DC converter,
on-board charger (OBC), power distribution unit (PDU),
PTC heater, etc., in addition to a motor, inverter, andgearbox 3-in-1 unit, is rapidly increasing. In light ofthese changes, we aim to launch the third-generation
E-Axle, which is planned to achieve a significant cost
reduction from the second-generation model,
in mid-FY2024, earlier than the initial schedule.

3. Enhancing the E-Axle components businessNidec has set a new EV-related sales target of 500
billion yen in total for E-Axles and components for
E-Axles in FY2025. While many major automakers
producing EVs are continuing to manufacture drive
units in-house, demand for external manufacturing of
E-Axle components has been increasing. This trend isparticularly strong among major automakers in Europe
and the U.S. Considering that the growth rate of theChinese EV market has peaked while the future EV
market growth rate is expected to be higher in Europe
and the U.S., it is reasonable to implement measuresto (1) respond to customer needs, (2) respond to needsof European and American markets, and (3) improve
the profit margin of our EV-related businesses as our
strategy to enhance the E-Axle components business.
Investment in components for E-Axle, mainly motors, isless costly than investment in E-Axles, and it is expected
to take less time to obtain a certain profit margin.
By steadily implementing these measures, we will
ensure not only increased sales but also improved
profitability of EV-related businesses.
In addition to E-Axle, for existing automotive motors,
such as motors for electric power steering (EPS), we
expect also a significant increase of CAGR 13% in sales
between FY2020 and FY2025. In particular, the sales
volume of Nidec’s EPS motors is expected to increase
due to two factors: 1) a rise in the rate of vehicle
models using EPS and 2) a rise in our market share of
motors for EPS. Regarding factor 2), the reasons arethat automobile manufacturers have been increasingly
choosing to outsource non-core activities as a resultof the streamlining of their businesses and that ourcompetitors are withdrawing from the market.

Business Strategies

Review of FY2022–20–42,291
0

2018

2019

2020

2021

2022

2025

(FY)

–45,000

2018

2019

2020

2021

2022

(FY)

–30

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

41

NIDEC CORPORATIONINTEGRATED REPORT 2023

42

Business Strategies

Review of FY2022
Sales increased 16.2% from the previous year to913,986 million yen, including the impact of foreignexchange fluctuations (an increase of approx. 140,500
million yen from the previous year), due mainly to
an increase in revenue from the power generator
business, which received many orders for large-scale
projects despite the ongoing impact of the Russian

to the regional market expansion and a shift tocommercial demand, recovery in demand from major
customers and expansion of the customer base are
expected for motors and gears for transfer robots used
at distribution centers of E-commerce companies.

invasion of Ukraine. Operating profit decreased
9.4% from the previous year to 70,817 million yen,including the impact of foreign exchange fluctuations(an increase of approx. 15,600 million yen from theprevious year), as a result of the recording of approx.
12,400 million yen as structural reform expenses in
the fiscal year under review.

2. Growth under medium- to long-term themes

Medium- to long-term growth strategies
Since the outbreak of COVID-19 in FY2020, businesses
producing household refrigerator compressors andmotors for air-conditioners, as well as motors andgears for transfer robots used at distribution centersof E-commerce companies, have driven the growth of
this segment. Meanwhile, as global demand for home
appliances and capital investment by E-commercecompanies have peaked out, the driving force for
performance in FY2023 has shifted to industrial
products, mainly power generators for construction
machines. Among the various businesses of thissegment, we expect growth in the following areas in themedium to long term.

1. Growth of existing businesses

Demand for compressors for refrigerators and motors
for air-conditioners is expected to recover after peaking
out in advanced countries, while demand in emerging
countries is expected to expand over the medium tolong term due to an increase in personal income. It isalso predicted that housing-related and commercial
demand will increase in advanced countries. In addition

Net sales

Operating profit / Operating profit ratio(Millions of yen)

(Millions of yen)

Organic growth

1,200,000

1 trillion yen (target)

1,000,000

12

90,00078,1679.9

913,986

562,604

70,817

8.8

786,588

800,000

600,000(%)

60,0007.7

53,025

6.9

8

6.0

601,611495,432

34,061400,000

33,940430,000200,000

0

2018

2019

2020

2021

2022

2025

(FY)

0

2018

2019

2020

2021

2022

(FY)

0

(1) Solution to labor shortage
Labor shortage is an urgent issue mainly in advanced
countries. Therefore, the FA-related products (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 withthe advancement of factory automation. The businessof power generators for construction machines is
expected to expand as demand for mining has been
increasing due to changes in the industrial structure.
(2) Solution related to renewable energy
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 renewable energy, thereby contributing to therealization of a carbon-neutral society. In this field,
Nidec announced on August 30, 2022 that it hadconcluded a joint venture agreement with FREYR
Battery, a Norwegian semi-solid lithium-ion battery

Solution related to next-generationmeans of transportation

In the medium to long term, business for electric
vertical take-off and landing aircrafts (eVTOL), a nextgeneration means of transportation and also known
as “flying cars,” is expected to be a growth field. In
addition, the market for urban air mobility systems,
including eVTOL, is predicted to expand and reach thescale of 3 trillion yen in 2030 and 20 trillion yen in 2035.
The business related to eVTOL, which contributes todiversification and greening of mobility, is therefore
an area with a significant growth potential over the
medium to long term. In order to enter this business,
Nidec announced an agreement to establish a joint
venture with Brazil’s Embraer in June 2023. The joint

manufacturer. FREYR will enter into a power purchaseagreement with a renewable energy producer forthe supply of 100% renewable energy and plans to
manufacture semi-solid lithium-ion batteries that
do not emit CO2 in the manufacturing process.
This partnership will enable us to significantly reduce
CO2 emissions in all processes, from manufacturingof batteries through the use of our BESS solutions
by customers. Along with the increase in renewableenergy, our BESS-related business is expected to
grow significantly.

Business Strategies

Appliance, Commercial &Industrial Products* Battery Energy Storage System

Power management
system (PMS)Power generation
systemWind power
generation

Battery (ESS)
Solar power
generation

venture will be provided with control technologies of
Embraer, the world’s third largest aircraft manufacturer,
and motor technologies of Nidec, and it will supply
electric propulsion systems for eVTOL.

Electric vertical take-off and landing aircraft “eVTOL”

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

43

NIDEC CORPORATIONINTEGRATED REPORT 2023

44

Business Strategies

Other Products(Machinery, Electronic and
Optical Components, etc.)

Sales from the Machinery segment increased byapproximately 37.5% to 296,482 million yen comparedto the previous year. This growth was driven by
the strong demand for semiconductor inspection
equipment for 5G applications, higher sales of canningpress machines that reflect the world’s step toward
ending plastic pollution, and expanded reach into themachine tools market. The exchange fluctuations (anincrease of approximately 15,800 million yen from ayear earlier) also had a positive effect on the revenue
growth. The operating profit increased by 10.4% to45,538 million yen compared to the previous year,
including the positive impact of exchange fluctuations(an increase of approximately 1,200 million yen froma year earlier) and structural reform expenses of
2,100 million yen.
Sales from the Electronic and Optics Components
segment increased by approximately 19.1% comparedto the previous year, amounting to 83,011 million yen,including the positive impact of exchange fluctuations(an increase of approximately 4,700 million yen froma year earlier). Operating profit from this segment
increased by 23.1% to 13,582 million yen comparedto the previous year, including the positive impact of
exchange fluctuations (an increase of approximately
100 million yen from a year earlier).

Net sales

Operating profit / Operating profit ratio(Millions of yen)

(Millions of yen)(%)

50,00025

500,000

Organic growth
400 billion yen (target)

41,23240,000400,000

296,482

72,672100,000

22,329

0

2018

2019

60,8242020

Machinery
Electronic and Optical Components

26,36469,6992021

2022

10,000

2025

(FY)

0

15.4

15

10.4
6.7

83,011

15.8

21,73820,000150,575

60,39614.5

13.6

30,000215,588
149,74020

16.4

300,000

200,000 163,966

17.5

45,53819.1

11,029
5.3

4,870

2018

10

13,582In this segment, the newly established Machineryand Automation Business Unit is expected to become
the core for future growth. Nidec Drive Technology
Corporation (formerly Nidec Shimpo Corporation), oneof our Group companies, used to engage in mainly
the reducer and press business. With the acquisitionof Nidec Machine Tool Corporation and Nidec OKK
Corporation in Japan in FY2021 and PAMAS.p.A in Italy
in FY2022, it also started a machine tool business,
expanding its business scale. In September 2023, Nidec
commenced a tender offer for TAKISAWA Machine
Tool Co., Ltd. (as result of dialogue with Nidec, in which
the target company TAKISAWA Machine Tool Co., Ltd.
agreed to the tender offer).
Initially, the acquisition of Nidec Machine Tool
Corporation was aimed at obtaining synergistic effects,
such as securing in-house manufacturing capacity forthe gears necessary to promote the E-Axle EV traction
motor system business. However, in working to improvebusiness management after the acquisition, we haveshifted to a strategy in which we not only pursue
synergy within the Group but also promote theexpansion of the machine tool business itself. Nidec
Machine Tool Corporation, which was in the red at thetime of the acquisition, improved its quarterly operating
profit ratio to over 10% in a short period of time as aresult of post merger integration (PMI). The company
demonstrated that a machine tool manufacturer
with excellent products/technologies can be turned
into a profitable company by introducing Nidec-style
management. We aim to expand profits by enhancing
the product lineup, including the possibility of further
business expansion through M&A in the future, andstabilize the segment performance and sophisticate ourbusiness in China.

Regarding the reducer business, it is predicted thatdemand will expand due to labor shortages spreading
mainly in advanced countries, which is behind the wave
of manpower saving that Nidec has identified as one of
the Five Big Waves. Declining birthrates and an aging
population are causing the working-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 therefore
expected that the use of cooperative robots in
production processes will accelerate.
FLEXWAVETM, our high-accuracy reduction gearfor precision control, has already shipped mainly forcooperative robots, and a production system has been
established in Japan and the Philippines. While we haveso far focused mainly on small robots, we are now
considering entering the medium-sized robot market,
including capital investment, with the aim of expanding
the business area.
In the press business, we will enhance the products
for growth fields, such as canning (plastic-free) and
EVs. At the same time, we will further enhance our
product lineup, from small, high-speed machines tolarge machines, thereby expanding and stabilizing thebusiness. In August 2023, Nidec acquired full ownershipof Automatic Feed Company and two other press
peripheral equipment manufacturers to expand the
product lineup.
We aim to achieve net sales of 500 billion yen in
FY2025 and 1 trillion yen in FY2030 in the reducer
business, press business and machine tool businessin total.

Business Strategies

Medium- to long-term growth strategies

Review of FY2022

5

6,315

3,201
2019

2020

2021

2022

(FY)

0

Operating profit (left axis)
Machinery

Electronic and Optical Components

Operating profit ratio (right axis)
Machinery

45

NIDEC CORPORATIONElectronic and Optical Components

INTEGRATED REPORT 2023

46

Materiality
Toward Achieving Sustainability

Establishment of the Sustainability Committee

Basic stance

In FY2022, we established the Sustainability Committee within the Board of Directors asa meeting body to manage and supervise the ESG Materiality Steering Committee.
The operation of the Sustainability Committee allows us to secure a longer-term and broader
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,” and promote
initiatives. By doing so, we will enhance the sustainability of our management.

improvement activities for each theme. For example, to checkthe progress of the improvement activities on a regular basis,the ESG Materiality Steering Committee was organized.
We have also established a risk management system coveringboth financial and nonfinancial domains so as to promptly
address risks that may arise in the future. Moreover, the CSR
Charter, which was established in 2008 and has served as themost important guidelines for Nidec’s CSR to date, the CSR
Declaration on the Conduct, which clarifies the actions that
our employees should choose to take from the perspectiveof fulfilling their social responsibilities, and all the otherdocuments and regulations concerning CSR constitute thefoundation for our materiality initiatives.
We will continue to launch effective sustainability strategies
by leveraging all of our philosophies and experience, with theaim of making our businesses more sustainable.

Organization to promote materiality actions
The five materiality issues Nidec has identified are associatedwith a total of 15 action themes, which are classified into
three phases according to the timing of the start 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 COO(Chief Operating Officer), the ESG Materiality Steering

Committee meets every month, affording almost all officers
an opportunity to report on the progress and problems of
their action themes on a phase-by-phase basis. Reports are
given directly by the officers in charge of each action theme.
The matters discussed and decided at the Committee
meetings are immediately reflected in the action plan.

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

Our definition of “sustainable business management” is toensure that the direction of business strategies that thecompany pursues conforms with the path the world seeks inorder to solve social issues, and to continue the company’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, in orderto ensure the sustainability of our businesses, we identified
five issues of materiality based on the medium-to long-term
visions of our stakeholders both inside and outside thecompany, and clarified 15 action themes, including “Realize acarbon-free society,” “Respect human rights and follow properlabor practices,” and “maintain and foster globally competitive
human resources.” We have also established various systems
to ensure the implementation of proactive and continuous

Operation of the Sustainability Committee

This committee meets quarterly. For each meeting, the main agenda is set for each category of ESG materiality
issues. Similar to the ESG Materiality Steering Committee meetings, officers in charge report on the progress ofactivities related to materiality and important topics for maintaining sustainability of management in line withthe main agenda. The committee chairperson reports to the Board of Directors on the committee meetings
held and the status of execution of duties.

Sustainability Committee members

Organization of the ESG Materiality Steering Committee
Contribute to environmental sustainability
Officers in charge: Mitsuya Kishida Executive Vice President
Yoshihisa Kitao Senior Executive Vice President
Akinobu Samura Senior Vice President

Steering Committee
Chairperson: Hiroshi Kobe

Representative Director, President and Chief
Executive Officer

Executive member: Akinobu Samura

Senior Vice President

Participating members:
Management Committee members
and, in principle, all Vice Presidents

Secretariat(Investor Relations &CSR Promotion Department)

Provide products and services adapted to social change
Officers in charge: Toshihiko Koseki Executive 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

NIDEC CORPORATION

Outside Director

Outside Director

Outside Director

Chairperson

MemberMemberTakako Sakai

Junko Watanabe	Maintain and foster globally competitive
human resources	Promote diversity
	Promote occupational safety and health,and health-oriented business management	Respect human rights and follow properlabor practices

Hiroe Toyoshima
Four main agenda
items of the
Sustainability
Committee

	Sustainable procurement considering
environmental and social aspects

1 Environment
2 Governance(Currently, the head of the department in charge ofmateriality KPIs is responsible for reporting.)

Officers in charge: Fumiaki Ushio Senior Vice President
Maki Okajima Vice President
Tomonori Seta Vice President
Masahiro Hishida First Senior Vice President

47

Control product safety and quality
	Respond to changes in the technologicalenvironment and the industrial structure	Protect and utilize intellectual properties

Officers in charge: V acant

Create a solid governance system*1 As of September 2023

Realize a carbon-free society	Manage waste and hazardous waste
Handle water risks	Build a fair, transparent and highly
effective governance system
	Follow thorough compliance with laws
and regulations
	Build a risk management system
	Promote information security measures

Internal Director

Internal Director

MemberMemberHiroshi Kobe

Hiroyuki Ochiai

3 Human resources andsupply chain
4 Products*2 The Vice Presidents of Nidec assume the roles and responsibilities of a managerial position generally known as the Executive Officer.

INTEGRATED REPORT 2023

48

Materiality

Materiality Initiatives
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 our business. We may change the materiality
issues, action themes and KPIs taking into consideration their validity according to the businessenvironment in the future.

Provide products and services
adapted to social change

Products

Materiality

Respond to changes in thetechnological environment and theindustrial structure
Protect and utilize intellectual
properties

Realize acarbon-freesociety

Theme to beaddressed

Sub-theme

KPI (FY2025)

Progress in FY2022

Contribute todecarbonization
through products

Contribute todecarbonization
through products

 educe CO2 emissions byR
introducing 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 700,000 units as ofApril 2023. Accordingly, reduced
253,000 tons of CO2 during
FY2022.

 educe CO2 emissions byR
introducing electric power
steering (EPS) motors:
Cumulative total from FY2020
to FY2025: 26,261,000 t-CO2

Regarding E-Axle itself, started
mass production of secondgeneration model, which issmaller, resource-saving, andquieter than the previous model.

 FY2025, increase theByintroduction ratio ofrenewable energy to 40%
on a consolidated basis

As a result of efforts at eachbusiness site, the ratio ofrenewable energy introduction
in FY2023 reached 8.2%.
Regarding TCFD, defined theautomotive business as thebusiness that is most likely to be
substantially affected by climatechange, and conducted scenario
analysis regarding the climatechange impact.

P. 53

Environment

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

 nnually disclose a climateAchange scenario in line with
the Task Force on ClimateRelated Financial Disclosures(TCFD) recommendations

Respect human rights and follow
proper labor practices

Build an internationally

Sustainable procurement considering
environmental and social aspects

competitive supply chain toManage waste
and hazardous
waste

—

P. 61

solve social issues

 educe the volume of wasteR
generated in intensity per unit
sales by at least 3% from thelevel of FY2022

Build a fair, transparent and highly
effective governance systemgovernance system

Corporate GovernanceFollow thorough compliance with laws
and regulations
Build a risk management system

Started ascertaining the amountof waste and valuable resources
generated by classifying
resources, based on the main
procured materials for products.
Regarding chemical substancemanagement, kept track ofand disclosed information on
the amounts of released andtransferred chemical substancesthat are designated by the
PRTR system and used by Nidec
Group’s sites in Japan.

Supply Chain

Create a solid

Materiality

Pursue product safety and quality

Handle water
risks

P. 61

—

 ully complete water riskFassessments at all production
sites

Assessed water risks in all global
regions where manufacturing
sites are located.

Promote information security measures

49

NIDEC CORPORATIONINTEGRATED REPORT 2023

50

Materiality
Provide products
and services
adapted to socialchangeTheme to beaddressed

Sub-theme

Pursue productsafety and quality

P. 62

Products

Respond tochanges in thetechnologicalenvironment andthe industrial
structure

KPI (FY2025)

Progress in FY2022

 reate a database for chemical substancesC
contained in products to make it easier forthe development department to determine
the choice of materials, and shift to an
environment-oriented development system
Implement quality management reforms
in the automotive-related business,and establish an overall quality control
organization and system by FY2025
Conduct assessment of all newly developed
products and all products during the
manufacturing process to reduce productsafety risks

By utilizing the material selection
database that was completed in FY2021,
the Small Precision Motor & Solutions
Business Group recommended the use ofmaterials with less environmental impact
within the Business Group.
In the Automotive Motor & Electronic
Control Business Unit, as a resultof continuing management reform
related to quality, the Global Quality
Management Division was established asa horizontal function to oversee quality
assurance for the entire Nidec Group.

 ontinuously launch new products that leadC
the Five Big Waves to resolve social issues
Continue to pursue the high efficiency andminiaturization of motors that contribute toenergy and resource saving

Conducted quantification of theenvironmental impact of major products
based on LCA (life cycle assessment).
Also created a technology roadmap thatincorporates environmental response
indicators for major products, andworked to promote environmental value
in product development and to fosterand spread awareness.

P. 63
Protect andutilize intellectual
properties

P. 63
Retain anddevelop diverse
talentHuman
Resources

Maintain andfoster globallycompetitive
human resources

P. 65
Promote diversity

P. 66

T ransform our IP portfolio to one that
responds to social and business changes,
including decarbonization and power andmanpower saving, and use the new
IP portfolio

Built and transformed our IP portfolio
for mainly products related to the Five
Big Waves. Raised the proportion of
products related to the Five Big Waves in
the IP portfolio to 56%.

Develop and train global leaders:ー Identify overseas local personnel to be
candidates for executives in FY2022
ー Start training of executives, including
overseas personnel, from FY2023

Proceeded with the cultivation of (1)personnel for senior management andkey positions and (2) next-generation
leaders (management and people
in charge). Also promoted the early
identification, development andstrengthening of human resources on a
global scale.

 chieve the targets below related toAwomen’s empowerment (non-consolidated)
in FY2022:
ー Ratio of female directors*: 10% or higher
ー All managerial positions held by women:
8% or higher
ー Ratio of female candidates for
managerial positions*: 15% or higher

Conducted the Organizational
Performance Survey to visualize thecurrent situation of each workplace.
Introduced Workplace Workshops ateach workplace where employees cantalk with each other, based on the
results of a Survey. Also introduced
career interviews, Career Plan Sheet,in-house job posting, and otherinitiatives.

* Executive officer or higher position, including
outside directors* Referring to female employees in positions
immediately prior to managerial positions

Materiality
Build aninternationallycompetitive
supply chain tosolve social issues

Supply
Chain

—

P. 67

Respect humanrights and follow
proper labor
practices

P. 68

51

NIDEC CORPORATION—

E nsure a safe and comfortable work
environment
Reduce the number of serious accidents(those resulting in death or permanent
disability) to zeroImprove the Lost-time injury frequency rate
Receive certification as a White 500
Company (in the large enterprise category)under the 2023 Certified Health &Productivity Management Outstanding
Organizations Recognition Program

Held seminars by industrial physicians.
For employees with high health risks,
provided individual health guidance
based on the results of health checkups
and encouraged them to undergo athorough medical examination.

 larify human rights policies for workers
C
including those in the supply chain, andspread them among employees
Manage working hours of employees,
including those in managerial positions,from the perspective of occupational safety
Reduce average overtime hours by
improving productivity

Conducted e-learning on the theme of“Respect for Human Rights in Business
Activities.” At the same time, establishedand disseminated the “Nidec Group’s
Basic Policy on Human Rights” to all
Group companies.
Regarding management of working
hours, conducted micro managementof working hours of employees, andreported to and cooperated with
relevant parties.

KPI (FY2025)

Progress in FY2022

 onduct human rights due diligenceCon major suppliers: Implementation
rate for high-risk suppliers by 2025:
100%

Made the “Nidec Group Basic Policyon Human Rights” known to major
suppliers. Also participated in a
subcommittee of the United Nations
Global Compact Japan to keep abreastof industry trends regarding humanrights due diligence.

Board ofDirectors

 ontinue to have the effectiveness ofC
the Board of Directors evaluated by athird party
Always maintain the ratio of outside
directors in the Board of Directors at
50% or more, and the ratio of female
directors at 20% or more

Sent out questionnaires to all members of
the Board of Directors, including Outside
Members, to evaluate the effectivenessand analyze current issues. In FY2021,
introduced a third-party (external law firm)
evaluation system.

Nominating
Committee /Remuneration
CommitteeI ncrease transparency and fairness in
the retirement and dismissal processof directors
Improve the effectiveness of theRemuneration Committee and ensure
the objectivity and transparency of
remuneration decisions for directors

Established the Nomination Committee
as an advisory body to the Board of
Directors’ Meeting to deliberate on thepolicy on the appointment of Directors
and Executive Officers, the criteria
for appointment, and the decision on
candidate proposals.
Regarding remuneration of officers,
after deliberation, the Remuneration
Committee reported to the Board of
Directors a review of remunerationlevels.

Management andenforcement ofinternal control

 ased on the assumption of 5 trillionB
yen for sales volume, enhance audit
resources in both quality and quantity

Strengthened the self-audit system (forall business sites of NIDEC Corporation)and conducted monitoring at all
consolidated sites using DX.

E xpand the legal affairs andcompliance system to all Group
companies starting from Nidec
Corporation and the regional
management companies(China, the U.S. and Europe)Identify serious non-compliance risks
and take priority measures
Provide compliance education to all
employees once a year

Continued the hazard map project.
Identified high-risk Group companies
by referring to factors such as theirremoteness from major sites andcorruption risk information of thecountries where they are located.
Implemented prevention measures in
consultation with management of suchcompanies to reduce risks.

 ll risks disclosed on the securities
A
reports are evaluated by thedepartment in charge, and the risks to
be addressed in priority are identified
Reduce the impact of the risks to beaddressed in priority on our business
Manage the progress of reducing suchimpact and the residual risks

Identified areas for improvement bycontinuing to conduct risk assessment,
priority risk identification and risk
reduction activities for the Business
Unit level (L2). Promoted the initiative
to interconnect the risk management
activities of different hierarchical levels.

R educe the number of serious
information security incidents to zero

Thoroughly implemented basic
measures, such as establishing andstrictly operating an information
security management system, disclosureof important information property,
and education for officers and staff
members. For cyber attacks, promoted
the introduction of defense mechanisms
to prevent unauthorized access fromoutside the company and to detect andimmediately block malicious programs
such as computer viruses.

Sustainableprocurement
considering
environmental
and social
aspects

Build a fair,transparent andhighly effective
governancesystemP. 73

Follow thoroughcompliancewith laws andregulations

P. 81

Recruit non-Japanese directors
Promoteoccupationalsafety and health,and healthoriented business
management

Sub-theme

P. 69
Create a solid
governancesystemCorporate
Governance

Theme to beaddressed

Build a risk
management
systemP. 83

Promoteinformation
security
measuresP. 84

INTEGRATED REPORT 2023

Materiality

Materiality

52

Environment

Realize a carbon-free society
Strategy

Initiatives related to the TCFD Recommendations

In April 2022, the Nidec Group announced its support for the TCFD recommendations.
Through scenario analysis, we will grasp the possible financial impact of climate-related risks
and opportunities and incorporate them into our management strategies. By doing so, we willfurther enhance our efforts to realize a carbon-free society.
Governance

The ESG Materiality Steering Committee, whichis the business executive organization related tosustainability, and the Sustainability Committee,
an organization to supervise the business execution
activities of the Steering Committee and report to

the Board of Directors, are responsible for thegovernance function of climate change activities.
The Sustainability Committee, consisting of threeoutside members and two internal members of theBoard of Directors, meets once every quarter.

The automotive products business, which is a core of
our strategy, is an area that benefits from abundant
growth opportunities associated with the advancementof global climate actions while at the same time isrequired to get carefully prepared for risks. Nidec
defined the automotive business as the business thatis most likely to be substantially affected by climatechange, and it conducted scenario analysis regarding
the climate change impact. Employees involved indifferent processes, from planning and development
to quality management, purchasing, sales and finance,

participated in a workshop and conducteda scenario analysis following the procedure below.
The results of the scenario analysis andcountermeasures were reported to the General
Manager, Deputy General Manager, and officer incharge of the Automotive Motor & Electronic Control
Business Unit and to the Sustainability Committee.
Moving forward, we will conduct scenario analysis
for other business segments and proceed with thequantitative analysis of the identified climate risks andopportunities.

Sustainability Committee meetings agenda
Agenda1st: September 2022

 lection of the head of Secretariat
EOverview of sustainability management andour activities

 SG materiality issues and the ESG Materiality
E
Steering Committee
Operation of the Sustainability Committee

2nd: December 2022

 eport on the progress of the ESG materiality
Raction theme “Retain and develop diverse
talent” uman rights due diligenceHResponse to the TCFD recommendations

3rd: March 2023

 idec’s technological actions that contribute toNdecarbonization
Report of the ESG Materiality Steering
Committee

Report on ESG briefing
Setting of policies for social contribution
activities and the priority areas

4th: June 2023

 omination of candidates for committeeNmembersReport on results of the TCFD scenario analysis
Regarding the FY2023 ESG briefing

 olicy for production of the Integrated ReportP
2023
Setting of policies for social contribution
activities and the priority areas

Sustainability promotion system
Sustainability Committee

Supervision

ReportChairperson: Outside Director
Members:	3 outside and 2 internal membersof the Board of Directors
Meeting:
held every quarter

ReportMateriality

Date of meeting

The workshop

Steps of scenario analysis

Examine countermeasures

Identify climate risks
and opportunities

Board of Directors
ReportCSR Committee

Chairperson: Officer in charge of CSR
Members:	Head Office administrative departments,
sales departments, R&D departments,and overseas production sites
Meeting:
held every half year

List a total of 40 climate-relatedrisks and opportunities, basedon the climate-related risks andopportunities exemplified in the
TCFD recommendations

STEP

2

STEP

3

Business execution
CEO

Management Committee
ESG Materiality
Steering Committee
Chairperson:	Representative Director and President
Members:	Management Committee members and,in principle, all Vice Presidents
Meeting:
held every month

53

NIDEC CORPORATION

STEP

1

COO

Head Officeadministrative
departments

R&D
departments

 ransition risk scenarioT(2°C/1.5°C scenario)

Businesssites/Group
companies

Assess business impact
Assess the business impact from theperspectives of the degree of impact on
business, the timing of climate risks/
opportunities becoming apparent, andthe need for prompt action

Determine the assumptions for scenario analysis
Scenario

Vice Presidents

4

Examine countermeasures forclimate risks and opportunities
that were evaluated to have alarge impact on businessSupervision

Senior Managers’ Meeting

STEP

Based on the IPCC’s SSP1-2.6
scenario and RCP2.6 scenario,
and IEA’s NZE scenario, assume aworld where various measures andregulations to realize a carbon-freesociety are introduced

 hysical risk scenarioP(4°C scenario)

Based on the IPCC’s SSP5-8.5 scenario
and RCP8.5 scenario, assume a world
where the introduction of measuresand regulations to realize a carbon-freesociety is slow and weather disasters are
becoming severe.

Timeline
Short-term:
2025 /
Medium term: 2030 /Long-term: 2050

TargetAutomotive products business

INTEGRATED REPORT 2023

54

Environment

Impacts of climate-related risks and opportunities

Policies andIntroduction oflegal regulations carbon taxes

Transition risks

Physical risks

Tightening of
regulations forfuel efficiency
and ZEVsCountermeasures

Reduction of Scope 1 emissions
through actions such as switching to
LED lighting, introduction of energysaving equipment, replacement with
low-carbon fuels, and optimization of
manufacturing processes
Reduction of Scope 2 emissions byintroduction of renewable energyI ncrease in costs for introducing renewableenergy* If measures are taken against carbon taxes

Introduction of renewable energy at low
cost through long-term contracts suchas corporate PPA

Increase in procurement costs due to carbon
taxes imposed on raw materials

Use of low-carbon materials (including
recycled raw materials)
Reduction of size and weight, andresource saving by employing the “light,
thin, short, and small” technology
Introduction of multi-sourcing forprocurement
Reduction of supply chain greenhousegas (Scope 3) emissions

Impairment of manufacturing facilities forinternal combustion engine-related products

Adoption of highly versatile design thatallows conversion to other models
Conversion of manufacturing
equipment to other products

Intensifying competition and price destruction
due to an increase in newcomers

Development of products with hightechnological and price competitiveness
Gaining economies of scale due to themarket share expansion

Technologies

Failure in
investment in
new technologies

Loss of business opportunities if theenvironmental performance required bycustomers cannot be satisfied

Joint development with customers
Reduction of size and weight, andresource saving by employing the “light,
thin, short, and small” technology

MarketRise in raw
material costs,
difficulty inobtaining raw
materials

Difficulty in obtaining rare minerals, steel
materials, and other non-ferrous metals, suchas high-end aluminum and copper, risingprocurement costs

Use of recycled raw materials
Reduction of size and weight, andresource saving by employing the “light,
thin, short, and small” technology
Development of products that do notuse heavy rare earths or magnets
Building a supply chain with highsupply capacity

Acute

Impact of floods,
submergence,
torrential rain or
typhoons

Suspension of factory operation
Outage of infrastructure networks such as
electricity and water supply
Incurrence of costs for production andtransportation of other factories
Disruption of supply chain
Increase in insurance fees

Geographical distribution of
production plants
Introduction of multi-sourcing forprocurement
Implementation of BCP(business continuity plan)

Impact ofdroughts, water
shortage, andchanges in the
precipitation
pattern

Difficulty in stably securing water, shortage offactory water due to water intake restrictions
Increase in costs due to rising water prices
Factory shutdowns due to tight electricity
supply, constraints on raw material production
and procurement capacity, increase inmaterial purchasing costs
Deterioration of water quality due to changes
in precipitation and temperature patterns

Geographical distribution of
production plants
Optimization of manufacturing
processes to reduce water usage
Improving water reuse andrecycling rates

Products/
services

Expansion of
the market for
products that
contribute todecarbonization

Increase in demand for automotive products(E-Axle, EPS motors, brake motors, electric
oil pump motors, etc.) due to the expansionof the electric vehicle market

Reduction of size and weight, andresource saving by employing
the “light, thin, short, and small”
technology

MarketExpansion of EV
marketChronic

Opportunities

55

Increase in production costs and decline inprice competitiveness due to carbon taxes

NIDEC CORPORATION

Nidec’s actions
Geographical distribution of production plants
Nidec has a group network covering over 300 companies
in more than 40 countries around the world and aims to
reduce geopolitical risks and climate-related physical risks

by geographically distributing its operation sites.
For the automotive products business, in anticipation of the
expansion of the EV market, we are accelerating the buildingof a mass production system for our EV traction motor
systems (E-Axle) in China, Europe, and other parts of the world.

Group network (all global sites)

Europe87

MiddleEast/Africa

3

Asia

198

North
America

33

Materiality

Climate-related risks and opportunities with significant business impacts, and their countermeasures

Centraland South
America

26

Reduction of size and weight, and resource saving by
employing the “light, thin, short, and small” technology
Nidec manufactures socially and environmentally conscious
products by making motors smaller and lighter andresource-saving. The first-generation model (Gen.1) of our
EV traction motor system (E-Axle) achieved an overwhelming
miniaturization of the motor by employing “light, thin, short,and small” technology and the oil cooling structure we had
cultivated in the small precision motor business. The second
generation (Gen.2) E-Axle, which began mass production

Second-generation model
has significantly reduced
the use of minerals
Aluminum
Magnetic steel sheet
CopperRare earth

in September 2022, achieved a 19% reduction in weightcompared to Gen.1 thanks to the use of smaller magnetic
circuits and inverters, based on the high-space-factor wirewinding technology, and also a substantial reduction in theamount of minerals used. In addition, the newly developed
two-way oil-circulation system has improved the coolingcapability, making it possible to use magnets that requiresignificantly less amounts of dysprosium (Dy), terbium (Tb),and other kinds of heavy rare earth. Moving forward, we areplanning to develop motors that do not use heavy rare earthor magnets.

19% lighter
Secondgeneration
model

Firstgeneration
model

–25%
–21%
– 7%

Significantly reduced the use of rare earth,aiming to achieve complete non-use in the future
INTEGRATED REPORT 2023

56

Environment

We established a framework in which risk surveys are
conducted for each of the levels illustrated below andthe survey results are shared and mutually used.
Corporate level(Department in charge of the risk)

Business Unit level

Business site level

L3
L2
L1
L = Level

For serious contingent risks that may lead to businessinterruption, the Business Unit level (L2) organizations
will periodically check the status of the formulation of
BCPs (Business Continuity Plans) of the major businesssite* level (L1) organizations under their control,
thereby ensuring that improvement activities arecontinuously conducted for risk reduction.
In addition, we are working to quickly detect factorsthat may inhibit business continuity and properly
address them mainly through risk managers assigned
to all sites around the world. We have conducted
BCP simulation training, assuming such risks as anearthquake, flooding, and drought, at our sites both
inside and outside Japan.
In FY2022, we conducted scenario analysis in theautomotive business segment and identified climaterelated risks (transition risks and physical risks) thathave a large business impact. Going forward, we willconsider incorporating the identified climate risks into
company-wide risk management items.

Changes in CO2 emissions along with introduction of renewable energy-derived electricity(CO2 emissions: Ten thousand tons)

1,200

Avoidable CO2 emissions through the use of renewable electricity
CO2 emissions from purchased fossil-based electricity
CO2 emissions from the direct use of fossil fuels
Consolidated sales target

900

10 trillion yen

600

Consolidated sales target* Major business sites: Business sites that are selected to cover 80% of the salesof the Business Unit or Group company to which they belong

Indicators and targets

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

180

100
0

(Renewable energy
introduction rate: 80%)

4 trillion yen
Renewable energy +energy saving effect300

FY2040(Renewable energy
introduction rate: 40%)

Carbonneutrality
50

FY2020

FY20250

FY2030FY2040

Greenhouse gas (GHG) emissions*1
160,000

Scope1

Reduce CO2 emissions by introducing electric power steering (EPS) motors: Cumulative total from FY2020 to FY2025:
26,261,000 t-CO2
P. 59

Scope 2 (market standard)*2

150,046

Scope3*3
4,750

5,000

P. 60

Increase the introduction ratio of renewable energy to 40% by FY2025 on a consolidated basis.
Fully complete water risk assessments at all production sites.

 educing CO2
Remissions bypromoting
Energy saving
Shift to low-carbon
fuels, and Carbon offset
investments

150,837(1,000 t-CO2)

Reduce CO2 emissions by introducing the EV traction motor system E-Axle: Cumulative total from FY2020 to FY2025:
11,700,000 t-CO2
P. 59

Renewableenergy-oriented
CO2 emissions
reduction

Renewable energy +energy saving effect

Materiality

Risk management

P. 61

4,000

1,906
3,365

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 business activities at present (Scope 1) andCO2 that is emitted in the production stage of heat orenergy purchased or used in business activities(Scope 2) by making our businesses more energy
efficient and proactively introducing renewableelectricity. After building a solid foundation forrenewable energy-oriented CO2 emissions reduction,
we will promote a shift to energy-saving, low-carbon
fuels and employ carbon offset investments and othermeasures, thereby achieving carbon neutrality in ourbusiness activities by FY2040. For CO2 emitted in the
supply chain (Scope 3), we will decide a reduction plan
by FY2025.

57

NIDEC CORPORATION

3,000

Introduction ratio of renewable energy*1

2,934

2,858

2,295

2,287

(%)

12

2,000

10.6

8
0

5.4

0

720
593

2.8

2.6

2018

2019

2,330

1,000

8.2

4

2,700

FY201873577

FY201962511

FY202060

457

FY2021

71

57

FY2022*1 Data coverage rate relative to sales: FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, FY2021: 53.5%, FY2022: 62.8%*2 For calculation of the FY2022 data, IEA country-specific emission factors have started to be used. To calculate the data of FY2021 and before, the Ministry of the Environment’s
Calculation Method and Emission Factors Chart in the Accounting, Reporting, and Disclosure System was referred to.
*3 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 ).
The GHG emissions significantly increased in FY2022 compared to FY2021 as calculations for categories 8, 11, 12, and 15 started.

2020

2021

2022

(FY)

INTEGRATED REPORT 2023

58

Environment

Contributing to decarbonization through products

Reducing CO2 emitted in business activities

Basic stance

Basic stanceMateriality
	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

Specific product example ❶Provision of “E-Axle” EV traction
motor system

E-Axle is a traction motor system that is the heart of anelectric vehicle (EV). It comprises a motor, an inverter,
and a reducer and generates rotating torque when
installed in a car and connected to its drive shaft.
This product alone is enough to run a vehicle. In an
extremely harsh competitive environment, speed is
the indispensable lifeline for auto manufacturers in EV
development. E-Axle, the product that combines aninverter and a reducer, can help auto makers to develop
their models more quickly than before.

59

NIDEC CORPORATION

Specific product example ❷Provision of high-efficiency, energy-saving
motorsThe key to reducing CO2 emissions from automobiles
is to reduce the load on the engine and improvefuel efficiency. From this perspective, many car
manufacturers around the world are increasingly
adopting electric power steering (EPS). The Nidec Groupsupplies EPS motors expected to improve fuel economy
by about 5% compared to hydraulic motors.
The Group also offers electric oil pump motors
to enable the idling stop function and many otherproducts that will lead to the reduction of emissions of
CO2 and other air pollutants.
 or other products, please see below
F
https://www.nidec.com/en/sustainability/environment/ecofriendly/

While contributing to decarbonization throughproducts, NIDEC is also committed to reducing CO2
emissions in business activities. As the Nidec Group’s
energy use is expected to continue to increase dueto the expansion of its business scale, including
through M&A, we must establish a system whereby
CO2 emissions can be reduced despite an increasein the total amount of energy used. Under thesecircumstances, our goal for the moment is to achieve adynamic shift to renewable energy.

Regarding the introduction of renewable electricity,
we have focused on efforts at each business site.
As a result of such efforts, the ratio of renewable energy
introduction in FY2022 was 8.2%. Regarding TCFD,
we defined the automotive business as the businessthat is most likely to be substantially affected by climatechange and conducted scenario analysis regarding theclimate change impact.

Materiality
	Increase the introduction ratio of renewable energy
to 40% by FY2025 on a consolidated basis

Materiality

As global trends toward decarbonization are
accelerating in response to intensifying climate change,
Nidec, as a global business operator, is committed
to the development and supply of products that willcontribute to decarbonization. Specifically, focusing
on products related to automobiles, which are said
to account for over 10% of CO2 emissions around theworld, we calculate and monitor the amount of CO2
emissions that can be reduced if conventionally usedproducts are replaced with our products.
While our contribution to decarbonization throughour products has been recognized to some extent by
our investors and other stakeholders, we are aware thatvisualization of the degree of contribution to a carbonfree society through our products and appropriate
information communication are insufficient. Not only
the reduction of CO2 emissions due to the introductionof the E-Axle EV traction motor system and electric
power steering (EPS) motors, we will further work
to make visible our contribution to decarbonization
through many other products, such as motors for small
EVs and electric two-wheeled vehicles.

	Annually disclose a climate change scenario in linewith the Task Force on Climate-Related Financial
Disclosures (TCFD) recommendations

Initiatives in FY2022

The total number of units of our EV traction motor
system “E-Axle” sold exceeded 700,000 (as ofApril 2023). A major initiative in FY2022 was thecommencement of mass production of the secondgeneration model of E-Axle, which we had been
producing since 2019, in September 2022. Comparedto the preceding model, the second-generation model
has achieved (1) 19% weight reduction (20% better
torque and power density) thanks to the use of smaller
magnetic circuits and inverters, (2) significant reductionin the use of heavy rare earth thanks to the adoptionof new cooling technology, and (3) reduction in noise.
By providing products that are smaller and higher inperformance and have less environmental impact, we
contribute to the electrification of automobiles andconsequently the reduction of CO2 emissions.
Through the replacement with E-Axle (switching fromgasoline vehicles to EVs), a reduction of 253,000 tons*of CO2 emissions was achieved in FY2022 alone.

Initiatives in FY2022

Starting with a simplified energy efficiency check, weare advancing the initiative to improve the efficiency of
air-conditioning systems. Nidec Motor (Dalian) Limited
installed large fans, taking advantage of the high ceilingof the press factory to reduce power consumption in
the summer.

Power consumption

78% reduction* Calculated based on the number of E-Axle units sold in FY2022.

Toward the future

We are proceeding with the development of thethird-generation model of E-Axle following the secondgeneration model, with a view to starting sales in 2024.
In addition to achieving further size reduction andhigher performance, the new E-Axle will be developed
from the preceding “3-in-1” E-Axle model, which
comprises a motor, an inverter, and a reducer, into an“X-in-1” unit with other major components added.
We will contribute to the accelerating movement toward
decarbonization through replacement with the nextgeneration models with less environmental impact andthe expansion of their sales.

BeforeAfter
improvement improvement

Nidec Precision (Thailand) Co., Ltd. promoting the introduction ofrenewable electricity

Toward the future

We will continue to make these two efforts as acomplementary pair: to improve the energy efficiencyof our business and to introduce renewable electricity.
First, by utilizing a tool to check the company’s energy
efficiency and sharing best practices, we will improvethe energy efficiency of facilities and equipment at
each business site. Next, we will improve the total
consolidated introduction ratio of renewable electricity
by combining the introduction of renewable electricity
at each business site and comprehensive renewableelectricity procurement at the regional level. As for the
TCFD, we will proceed with the quantitative analysis ofclimate-related risks and opportunities identified for the
automotive products business, and we will also conduct
scenario analysis for other business segments.

Nidec Motor (Dalian) Limited installed largefans to reduce power consumption in
the summer

INTEGRATED REPORT 2023

60

Manage waste and hazardous waste

Pursue product safety and quality

Basic stance

Basic stance

As increasing waste has been a global social problem
in recent years, Nidec is working to establish a businesssystem to help realize the effective use of raw materials.
In addition to eliminating waste as much as possible
in the manufacturing process, we are also working tominimize the use of containers and packaging materials.
Besides these, we are making continuous efforts topromote recycling by thoroughly sorting waste.
The Nidec Group pays sufficient attention to the use
and storage of chemical substances at its business sites
to prevent leakage thereof, while striving to reduce
the use and emissions of chemical substances as far
as possible as part of the initiative to improve andinnovate production processes. The Group also utilizes
its information systems and analysis techniques tosatisfy international regulations concerning hazardous
chemical substances contained in products.

Materiality
	Reduce the volume of waste and valuable resources
generated in intensity per unit sales by at least 3%
from the level of FY2022.

Initiatives in FY2022

The amount of waste and valuable resources generated
in FY2022 was 135,580 tons. As one way to reduce thisamount by 3% per unit of sales by FY2025, we started
to identify the amount of waste generated by resourceclassification based on the main procurement materials
for products. With this method, it is possible to estimate
the material yield by comparing with procurement data.
Regarding chemical substance management, in
accordance with the PRTR system* based on Japaneselaws, the Nidec Group keeps track of and discloses
information on the amounts of released and transferredchemical substances that are designated by the system
and used by the Nidec Group’s sites in Japan.
* Pollutant Release and Transfer Register

Toward the future

We will save resources by reviewing development
and design on the product side as an initiative to
reduce the amount of waste generated in the future.
Furthermore, it is important to improve the material
yield in the production process, so we will work to solve
the problem by analyzing the generation of waste byresource and visualizing the loss.

Handle water risks
Basic stance

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 that the risk of water resource depletion
has a significant impact on business continuity, suchas shortening or suspending plant operations. So we
implement water reuse and recycling initiatives toconserve water resources. We are also working on waterrisk management, such as identifying the risks associatedwith water withdrawals and discharge to continue ourbusiness activities and assessing the impact of water
withdrawals and discharge on surrounding areas andwater source areas.

Materiality	Fully complete water risk assessments at all
production sites.

61

NIDEC CORPORATION

Initiatives in FY2022

We evaluated the magnitude of water risk in all global
regions where our manufacturing sites are located inorder to understand and reduce the impact of wateron business activities. In the evaluation, we used the
Aqueduct from the World Resources Institute (WRI)
and the Water Risk Filter from the World Wide Fundfor Nature (WWF), which can evaluate not only physicalrisks such as water shortages but also water-related
regulations and local reputational risks.

Toward the future

We will collect local information, such as local weather,external general conditions regarding water, andgovernment administration, from manufacturing sites
in areas where water risk may be high in the future.
We will analyze the impact on business activities indetail by referencing this local information and detailed
business site information, such as water consumption.
We will consider risk mitigation measures while steadily
proceeding with the water risk assessment process.

As a manufacturer featuring an extensive productline-up and large supply volume, Nidec has a duty
besides simply providing products; we must ensure
safety in every aspect, from the selection of parts inlight of environmental friendliness to the safety of
products, as well as disposal and recycling. We believethat we can help create sustainable social infrastructureby providing our customers with products that can beused in a safe and dependable manner. To realize thisidea, it is necessary to maintain a high level of productperformance in terms of environmental friendliness,requiring a database that serves as a guide to selecting
materials at the time of component design.
Moreover, now that the automotive products
business has developed into a major segment
accounting for over 20% of the Nidec Group’s
consolidated net sales, in order to satisfy the quality
needs of all customers in the automotive industry,
it is important to establish a globally unified quality
assurance system.

Materiality	Create a database for chemical substances containedin 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
and all products during the manufacturing process to
reduce product safety risks.

Initiatives in FY2022

By utilizing the material selection database that wascompleted in FY2021, the Small Platform Motor &Solutions Business Unit recommended the use ofmaterials with less environmental impact within theBusiness Unit, and it began using low-lead materials
for some customers. The Business Unit will further
promote this activity and contribute to reducing the useof environmentally hazardous substances. The Business
Unit is expanding the scope of its efforts and has
initiated the development of new materials to reduce
the use of organofluorine compounds, which haverecently been viewed as problematic.
The Automotive Motor & Electronic Control
Business Unit has been implementing management
reforms related to quality since FY2021, with theaim of establishing an overall quality management
organization and system by FY2025. As a result, theGlobal Quality Management Division was establishedon January 1, 2023 as a horizontal function to oversee
quality assurance not only for the automotive-related
business but also for the entire Nidec Group. Currently,
the Division is working in collaboration with the quality
assurance department in each business unit.

Materiality

Products

 rovide products and services
P
adapted to social change 

Toward the future

The Small Platform Motor & Solutions Business Unit
will continue to utilize the material selection databasementioned above to develop products that meetcustomer needs, such as reducing environmentallyhazardous substances.
The Automotive Motor & Electronic Control
Business Unit will continue to conduct assessment of
all newly developed products and all products in the
manufacturing process to reduce product safety risks.
The newly established Global Quality Management
Division will hold regular meetings attended by the
Quality Assurance Departments of Nidec Group
companies to ascertain the quality status of eachcompany and to share good practices throughout
the Group. We have already started to establish basic
quality assurance practices and standard documents
to guide them in the product development flow of theentire Nidec Group, from understanding customer
requirements to product and manufacturing process
design, and after-sales service after mass production.
We aim to establish a system in which the Global
Quality Management Division will take overall control of
quality assurance for the entire Nidec Group, regardlessof business division or company boundaries.

INTEGRATED REPORT 2023

62

Products

Basic stance

Toward the realization of a sustainable society, Nidec
is committed to promoting product development andR&D to solve global social issues through its products
and business activities. We regard business fields
related to issues that need to be given priority forsolutions as promising growth markets, namely, the“Five Big Waves,” and we are making a concerted effort
to strengthen technology development to continuously
launch new products in these fields.
For more information on the “Five Big Waves,” please click the URL below.
https://www.nidec.com/en/ir/management/strategy/

Materiality
	Continuously launch new products that lead the Five
Big Waves to resolve social issues.
	Continue to pursue the high efficiency andminiaturization of motors that contribute to energy
and resource saving.

Initiatives in FY2022

To promote activities to reduce CO2 emissions throughcontinuous product development and businessactivities, we worked to quantify the environmental
impact of our major products, i.e., the amount of
CO2 emitted by the products, based on Life Cycle
Assessment (LCA). We have also created a technology
roadmap that incorporates environmental response
indicators for our major products, and we areworking to promote environmental value in productdevelopment and to foster and spread awareness.

Toward the future

In order to provide products and system solutions that
contribute to reducing environmental impact, we will
strive to develop design and production technologies
that take into account the reduction of environmental
impact of products. In pursuit of environmental value,
we will promote research and development that enableenergy saving, resource saving, and recycling (useof recycled materials) by encouraging group-wide
application of the Group companies’ technologies
conducive to environmental conservation and effective
use of resources.

Research and development to support
the sustainable growth of the company

As the world’s leading comprehensive motor
manufacturer, the Nidec Group has established R&D
facilities that collaborate globally with the aim ofcontributing to a wide range of industrial fields. We havealso undertaken laboratory reforms to enhance ourunique technologies. As part of such efforts, we further
strengthened the foundation of product and production
technologies and pursued products with high added value
and environmental performance. The missions of the R&D
facilities are to develop innovative products that accelerate
the growth of the Nidec Group, to advance and upgrade
production technology to strengthen the foundationof manufacturing, and to create and disseminate
technologies conducive to solving social issues.
With its eyes focused on the needs of future society andthe seeds of Nidec, the Nidec Product Technology R&D
Center puts its energies into research and development
to create new products and technologies that will realize
a sustainable society, as well as into research in the motor
application field that will lead the growth of the Nidec
Group. The Nidec Center for Production Technology R&D
promotes research and development to achieve more
efficient manufacturing by pursuing material and process
innovation and developing cutting-edge production
technology that utilizes digital transformation and AI.
The Nidec System Manufacturing Engineering Center
develops production methods that accompany
technological innovation and supports theimplementation of such methods in order to realize
manufacturing excellence with a system that integrates
the entire process, from the starting stage of productdevelopment to mass production.
The Platform Development Center is accelerating
the development of E-Axle, a drive motor system fornext-generation electric vehicles, to further strengthen
our competitiveness. The Nidec Semiconductor
Solutions Center, which was established in May 2022,
is conducting development with a view to establishinga sustainable semiconductor supply chain and providing
high-value-added solutions through synergy between
semiconductors and motors.
We are confident that we will continue to contributeto the development of society by providing solutions
through our products and technological development.
The Nidec Group has more than 330 business companies
in and outside Japan, featuring the accumulation ofdiverse technologies. We will continue to aim to create
new innovations by sharing and utilizing the knowledge
that each Group company has cultivated to date and by
conducting further research and development.

Protect and utilize intellectual properties
Basic stance

Aiming to contribute to the growth of its businessthrough the 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 stageof the product lifecycle. In addition, to carry out businessactivities while respecting intellectual property rights
of other companies, we conduct in-depth research onother companies’ intellectual property rights in advance.
Meanwhile, toward the realization of a sustainable
society, we are working on developing products tosolve social issues, such as SDGs, focusing mainly on
the Five Big Waves. We will develop an IP portfolio thatcan protect these products and ensure competitive
advantages and will transform our IP portfolio to one
tailored to our business.

Materiality
	Transform our IP portfolio to one that responds
to social and business changes, including
decarbonization and power and manpower saving,
and use the new IP portfolio.

Initiatives in FY2022

We promoted IP portfolio building and transformation
with a focus on products related to the Five Big Waves,increasing the ratio of those products to 56% of our IP
portfolio. In particular, we promoted patent application

NIDEC CORPORATION* Number of cases based on LexisNexis’ analysis tool “PatentSight®”

Toward the future

We will strengthen our information gathering andanalytical capabilities by further utilizing analytical
tools, etc., and promote business activities strategicallywhile analyzing the intellectual property information
obtained, toward realizing a sustainable society.
Furthermore, in addition to making Group-wide
concerted efforts to build an IP portfolio to ensure
a competitive advantage, we will actively publicize
these activities to make known to external parties ourtechnological and patent strengths that can contributeto society.

Intellectual property activities in line with the product lifecycle
Market size

IP licensing strategy
Business alliance strategy
IP enhancement strategy
Development policy strategy
Time

Introduction

First-half growthSecond-half growth

Maturity

IP investment

DeclineIP utilization

Percentage of products related to the Five Big Waves in the IP portfolio
FY2022FY20170
Decarbonization

63

and acquisition mainly for products in the early stagesof growth, such as the “E-Axle” drive motor system forelectric vehicles in the “wave of decarbonization” andwater-cooling modules in the “wave of 5G & thermal
solutions,” to transform our IP portfolio to one thatmeets market needs. In addition, the number of ourpatent applications that have been externally evaluatedas SDG-related* has been increasing every year.
We believe that this is a result of our proactive efforts
to address social themes such as the SDGs.
In recognition of these activities, in 2022 Nidec
was selected as one of the Clarivate Top 100 Global
Innovators 2023. This award analyzes intellectual
property, based on four evaluation criteria, namely,
success rate, globality, impact, and rarity, and selects
the top 100 innovative companies and institutions in
the world, and Nidec received a high evaluation.

Materiality

Respond to changes in the technological environment andthe industrial structure

20Power saving

40
Manpower saving

5G & thermal solutions

60
Field related to digital data80

100 (%)

Other fields
INTEGRATED REPORT 2023

64

Human Resources

Retain and develop diverse talent
Promote diversity

Basic stance

Basic stanceMateriality
Develop and train global leaders:	Identify overseas local personnel to be candidates for
executives in FY2022.
	Start training of executives, including overseas
personnel, from FY2023.

Initiatives in FY2022

Based on our basic stance on human resource
development, we are proceeding with the cultivation of(1) personnel for senior management and key positionsand (2) next-generation leaders (managers and people
in charge). At the same time, we are promoting theearly identification, development and strengthening of
human resources on a global scale.
With regard to the development of personnel
for management and key positions, the Human
Resources Development Committee was establishedin FY2020 to visualize key positions in the Nidec
Group and discuss the appropriateness of thesuccession plans (successor development plans)among executives. At the same time, we identify
potential candidates for the next generation ofmanagement personnel and promote strategic early
development initiatives. In FY2022, we accelerated
the development of candidates for managerial
positions. In addition to assigning highly difficult
tasks such as corporate restructuring and promotion,
we have held a monthly “training school,” taught by

NIDEC CORPORATION

the founder, aimed at instilling Nidec’s philosophy
and management mindset. Furthermore,in November 2022, we established the Nomination
Committee as a top-level committee to establish
a system for the appointment of management(directors and executive officers).
To cultivate next-generation leaders, we conduct
training for managers to identify their strengths andweaknesses as leaders. Individual feedback reports
are created and utilized for on-the-job training. In
addition, educational videos on daily dialogue (one-onone meetings) between superiors and subordinates
are distributed throughout the Group companies inJapan to foster the development of subordinates in
the organization and strengthen management skills.
Furthermore, in order to develop and strengthen
professional human resources, we have introduced
the “Function-based Human Resources Management
System,” which supports diverse experiences fromthe perspective of company functions, starting withthe administrative divisions, and we are accelerating
the development of human resources through theworkplace and work that they should experience in theprocess of becoming professional human resources.

Toward the future

We will expand the scope of candidates for nextgeneration management personnel to include
foreign nationals and promote early and systematic
implementation of development measures. We haveestablished the Global Business School (openedin 2016) and the Next-Generation Global Business
School (opened in 2017) to provide opportunities for
management candidates from Nidec Group companies
around the world to acquire high-level management
knowledge required of leaders of global companies.
The Schools were suspended in recent years due to the
COVID-19 pandemic but will be resumed successively.
We will strengthen development of management
personnel by providing opportunities to acquire
knowledge and put it into practice. In the developmentof next-generation leaders and professional humanresources, in order to promote autonomous growth, wewill expand the lineup of human resource development
measures (e.g. a customized training program inwhich employees can take courses of their choice) andstrengthen our career development support.

The Nidec Group recognizes diversity as a source ofcompetitiveness. As we conduct business globally,
we respect and embrace the differences amongindividuals and utilize those differences to the
maximum extent to effectively respond to a rapidlychanging business environment and customer needs.
People from diverse backgrounds work at the Nidec
Group, which has development, production, sales, andresearch bases all around the world. In addition tohiring talented and motivated individuals regardlessof their personal attributes and values, we are working
to develop and promote human resources and createa work environment in order to allow the organizationand individual employees to demonstrate their potential
to the fullest. In addition, we are working to refine our
Nidec Principles, which we have cherished since ourfounding, in line with the times and instill them in allof our employees. At the same time, we are promoting
initiatives to foster a sense of unity (alignment ofvectors) among employees within the diversity that weshould aim for as an organization.

Materiality	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 Including executive officers and above and outside directors*2 Referring to female employees in positions immediately prior to
managerial positions

Initiatives in FY2022

To achieve the empowerment of women set asa materiality KPI, it is important to create a work
environment that allows the organization and individual
employees to demonstrate their potential to the fullest.
To this end, we have been promoting organizational
development with the aim of stimulating relationships
among employees and improving the performanceof each workplace and eventually of the entire
organization. We have introduced an “Organizational
Performance Survey” designed to visualize the situationof each workplace and “Workplace Workshops”

at each workplace where employees can talk franklywith each other, based on the results of the Survey.
We are promoting the creation of an organizational
culture and structure that can promote decision-making
based on a vision while respecting diverse opinions.
In addition, as values regarding careers become
more diverse, we have been strengthening our support
for employees’ autonomous career development
through various initiatives, such as career interviews,
Career Plan Sheet, and in-house job posting. In order
to conduct fixed-point monitoring of the effectivenessof our efforts, we have incorporated items related tocareer awareness into the Organizational Performance
Survey (introduced in FY2021). Through these initiatives,
we aim to achieve sustainable corporate growthcentered on the organization and people that support
the Nidec Group.

Materiality

Maintain and foster globally competitive 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 solutionproviding business group that solves numerous
problems for the people of the world, the Nidec
Group believes that it is crucial to maintain andfoster globally competitive talent, in other words,
human resources capable of actively working globally.
Defining those equipped with 3P attitudes (Proactive,
Productive, Professional), problem solving skills, andcross-cultural communication skills as global humanresources, we develop individuals who can exercise
these abilities at a high level.

65

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

Average score of the Organizational
Performance Survey(item regarding career awareness)

Career awareness(out of 5 points)

FY2021

FY2022

3.19

3.31

Toward the future

Since around 2005, we have been promoting diversity
regarding attributes, such as hiring of women andforeign nationals. In addition to this, we will strengthen
activities focusing on diversity of individual employees’
values and career aspirations. As of the end of FY2022,
the ratios of female directors, female managers, andfemale candidates for managerial positions were15.0%, 7.0%, and 12.9%, respectively. The ratio of
female directors reached the target due to active
participation of female outside directors, whereas
the ratios of female managers and female manager
candidates have increased year by year, but still fell
short of the targets. In order to achieve the targets ofthese indicators, in addition to continuing to support
in-house development and appointment, we willfurther expand the scope of diversity and vigorously
promote diversity and inclusion initiatives to maximizeorganizational performance by leveraging not only
attributes of individual employees but also their values
and aspirations.

INTEGRATED REPORT 2023

66

Human Resources

Basic stanceThe declining working population is a social challenge
for the world, including Japan. Companies are required
to take good care of their limited labor resources by
supporting the health management of individuals,
thereby helping to maximize the value of their humanresources. To this end, it is essential to create a work
environment that increases employee motivationand productivity.
Under cooperation between the company andemployees, the Nidec Group is promoting healthoriented business management, focusing on thecreation of a safe and comfortable work environmentthat enables employees to fully demonstrate theirabilities, and improvement of employee safety andhealth. The Health Promotion Committee, which has
been established as a cross-departmental organization,
plays a central role in enhancing systems for healthmanagement and promotion. In addition, healthseminars by industrial physicians and health awarenesssurveys targeting all employees are conducted to
improve the health literacy of employees. We haveachieved a total smoking ban on the premises ofour domestic business sites. We are thus promoting
health-oriented business management.

Materiality	Ensure a safe and comfortable work environment.
	Reduce the number of serious accidents (thoseresulting in death or permanent disability) to zero.
	Improve the lost-time injury frequency rate.
	Receive certification as a White 500 Company (in thelarge enterprise category) under the 2023 CertifiedHealth & Productivity Management Outstanding
Organizations Recognition Program.

HealthAiming 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 base has health promotion personnel tolaunch measures tailored to its workplace while working
in collaboration with industrial physicians, i.e., healthexperts, and a health insurance union for the entire
company to promote health-oriented
business management.

67

NIDEC CORPORATION

Health management promotion system
Management(Senior Managers’ Meeting, etc.)
Report anddeliberation

Health Promotion Committee
Leader: Director in charge of human resources
Execution andpromotion

Business sites andemployees

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

Initiatives in FY2022

We held health seminars by industrial physicians toimprove employee health literacy and the overall
health of our employees. Each year, the theme of theseminar is decided based on the results of the Nidec
Health Survey, an annual internal health survey.
The seminar in FY2022 focused on the topics that werehighly requested by employees and that were directly
related to their health issues (e.g. stiff shoulders,back pain, sleep, smoking cessation, mental health).
In addition, for employees with high health risks,
we provide effective individual health guidance basedon the results of health checkups and encourage themto undergo a thorough medical examination.

Toward the future

Currently, each Group company in Japan is implementing
its own health management and promotion initiatives,
but eventually we will build a foundation for promoting
health-oriented management throughout the Nidec
Group. We will implement medium- to long-term
initiatives to strengthen our industrial health system,visualize the health status of the entire Group, andoperate a cycle of improvement. We will continue ourefforts to promote the physical and mental health of ouremployees and to create a work environment in which
they can maximize their activities.

SafetyEnsuring the safety of employees is assigned thehighest priority at all the Nidec Group’s business sites,
including those newly established and those that wereadded through M&A. The Nidec sites in Japan havea safety and health committee in place to discuss
measures to secure the safety of all the sites. We willcontinue to maintain a safe work environment and aim
for zero serious accidents.

Initiatives in FY2022

We achieved the planned targets for the materiality
KPIs related to safety activity checks and remotesafety checks.
TargetResults

Safety activity check

3 sites or more (per year)

3 sites (per year)

Remote safety check

36 sites or more (per year)

36 sites (per year)

Toward the future

We will continue to work to prevent similar accidents
on a global level by remotely checking the safety of
manufacturing processes and facilities using webcams.

Lost-time injury frequency rate

Most of the labor and ethical problems arising at
workplaces these days are said to be attributable toinadequate management of human rights. Being fully
aware that we are responsible for not only humanrights issues inside our business sites but also laborand ethical issues arising in our supply chains, we will
endeavor to create safe and secure workplaces where
diverse human resources can play an active role.

Materiality	Clarify human rights policies for workers, including
those in the supply chain, and spread them among
employees.
	Continue to manage the working hours of employees,
including managers.
	Reduce the average overtime hours by improving
productivity.

Materiality

Promote occupational safety and health,and health-oriented business management(Frequency rate)

1.20

1.20

1.21

1.31

Initiatives in FY2022

1.25

1.2

0.78

0.9
0.6

0.4

0.87
0.66

0.4

0.3

0.73
0.5

0.5

2021

2022

0.1

0.0

2018

All of Nidec

2019

Non-consolidated

2020

(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.

Respect human rights andfollow proper labor practices
Basic stance

Recognizing the importance of considering human rights inglobal business environments, Nidec responds to diversifying
human rights-related issues in line with relevant internationalguidelines. The Nidec Group CSR Charter provides for respectfor human 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, leave, freedom of association, and the rightto collective bargaining. In 2021, we established the “Nidec
Group’s Basic Policy on Human Rights,” which organizes ourstance and initiatives regarding respect for human rights.

Each year, we implement various activities to promote
human rights awareness, in conjunction with
International Human Rights Day and Human Rights
Week. In FY2022, we conducted e-learning on the themeof “Respect for Human Rights in Business Activities” andonce again disseminated the “Nidec Group’s Basic Policyon Human Rights” to all Group companies. With regard
to the management of working hours, in addition toproceeding with consideration to optimize the numberof managerial personnel, we micromanaged the working
hours of employees and properly reported to andcoordinated with the relevant parties.
In addition, we advised employees and theirsupervisors who reached a certain number of working
hours in the middle of the month to make work
adjustments through adequate communication.

Toward the future

We will strengthen our human rights due diligencein order to understand and minimize human rights
risks at each Nidec Group site and in our supply chain.
Specifically, we will conduct investigations at all of ourglobal locations on human rights issues centered on
our basic human rights policy and will strive to takeappropriate corrective and preventive measures.
We will continue thorough efforts to ensure proper
working hours and prevent occupational accidents,
thereby fulfilling our social responsibility as a company
that employs over 100,000 people across the Group.

 lease click the URL below to see the Nidec Group’s Basic Policy on
P
Human Rights.
https://www.nidec.com/en/sustainability/social/humanrights/

INTEGRATED REPORT 2023

68

Supply Chain

Build an internationally competitive supply chain to solve social issues
Responsibility for the entire supply chain
https://www.nidec.com/en/sustainability/social/supplychain/partner/

Sustainable procurement considering environmental and social aspects
Working in collaboration with its suppliers, the Nidec
Group promotes CSR activities throughout the entire
supply chain. As part of such efforts, the Nidec Group
Supply Chain CSR Promotion Guidebook and the
Nidec Group’s Basic Policy on Human Rights, which
provide more specific standards established in linewith the pillars of the CSR Charter, are rolled out to all
suppliers. To ensure that suppliers also fulfill their social
responsibilities, we require our suppliers to comply
with the “Nidec Group Supply Chain CSR Promotion
Guidebook” in our basic purchasing agreement.
We will continue to engage in procurement activities
that take into consideration both social aspects, suchas prohibition of child and forced labor and reductionof long working hours, and environmental aspects,
such as energy consumption, biodiversity, and waste/resource use at suppliers. We ask our suppliers for theircontinued cooperation.
 lease click the URL below for the “Nidec Group Supply Chain CSR
PPromotion Guidebook.”
https://www.nidec.com/-/media/www-nidec-com/corporate/
procurement/green/pdf/Supply%20Chain%20CSR%20
Guidebook%20EN.pdf

Materiality

	Conduct human rights due diligence on key suppliers:
100% implementation rate for high risk suppliers asof 2025.

CSR audit of suppliers

Initiatives in FY2022

In cooperation with the Human Resources Department,
we made the “Nidec Group’s Basic Policy on Human
Rights” known to major suppliers.
We also participated in a subcommittee of theUnited Nations Global Compact Japan to keep abreastof industry trends regarding human rights due
diligence. We actively reflect industry trends in ourinternal activities. For example, we have improved thecontent of the Nidec supplier CSR self-assessment tobe conducted in FY2023, based on the information
obtained through the subcommittee meetings.

Toward the future

While continuing to disseminate the “Nidec Group’s
Basic Policy on Human Rights” and keep abreast ofindustry trends regarding human rights due diligence,
we will review the content of the Nidec supplier
CSR self-assessment. From FY2023, we will address
insufficient identification of human rights risks, which
is an issue about the current Nidec supplier CSR
self-assessment.
We will also identify potential human rights risks
mainly in the upstream supply chain, based on the
results of the Nidec supplier CSR self-assessments andinterviews. For the identified human rights risks, we will
determine the priority level of our efforts, based on theprobability of their occurrence and the severity of theirimpact when they occur.

Nidec supplier CSR self-assessment
CSR procurement flow
1 Work sincerely andhonestly

2 Respect humanrights and laborNidec

3 Coexist harmoniously

Suppliers

Purchase materials
and components

4 Ensure occupational

Salewith the environment
safety and hygiene

5 Maintain good

relations with society

6 Management system

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
report on the status of their implementation of the
Nidec Group Supply Chain CSR Promotion Guidebook
and the Nidec Group’s Basic Policy on Human Rights.
The survey is designed to assess the status of eachsupplier’s CSR activities, based on a total of 111 items in
Chapters 1 through 6 of the Nidec Group Supply Chain
CSR Promotion Guidebook. Regardless of whether theevaluation is high or low, feedback, etc. is provided to all
suppliers to encourage further improvement.
Number of suppliers that
conducted a Nidec supplier CSR
self-assessment

69

NIDEC CORPORATION

FY2020

FY2021

FY2022

698

667

732

Holding CSR seminars at major sites

Since FY2010, the Nidec Group has been auditing its
major suppliers* on-site. In FY2022, we conducted
on-site audits on 122 suppliers, mainly in Asia.
* Refers to suppliers and other business partners who frequently go onto and off 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

Numbers of supplier CSR audits conducted(case)

150

132

123

As Nidec promotes CSR activities throughout its supply
chain, it is important that our procurement personnel
first understand Nidec’s CSR policies. Since FY2018,
Nidec Corporation and Nidec Group companies in Japan
have conducted CSR seminars for purchasing personnel
based on the Nidec Group Supply Chain CSR Promotion
Guidebook. With the aim of conducting human rights
due diligence on major suppliers by 2025, in FY2022
we reviewed the training content and discussed future
implementation plans.

122
Number of participants in the
CSR seminar for purchasing
personnel

120

FY2020

FY2021

FY2022

169

250

—

Materiality

Basic stance

90

60

30

0

2020

2021

2022

(FY)

Nidec Electronics (Thailand) holds a session to explain
the Responsible Business Alliance (RBA)* to ensurethat all of its suppliers understand Nidec’s CSR. Nidec
Electronics (Thailand) also holds presentation meetings
on CSR procurement for its major suppliers and audits
them on-site, based on the results of advance survey
sheets. Since FY2013, our CSR audit standard has been
based on the RBA, and we select targets for CSR audits
mainly from new suppliers. In FY2022, we implemented
activities with the target of requesting 27 of our
suppliers to comply with CSR audit standards.
* 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.

INTEGRATED REPORT 2023

70

Corporate Governance

Create a solid governance system

Interview with an Outside Member of the Board of Directors
INTERVIEW

I believe there is great significancein that the Sustainability Committee
Takako Sakai
Nomination Committee Chairperson
serves as a forum to gather andRemuneration Committee Member
Sustainability Committee
Chairperson
consolidate internal knowledge.
—First, let me ask you about Board of Directors’
meetings. Board of Directors’ meetings are important
meetings that even employees have very little
knowledge. What kinds of matters are handled anddiscussed at Board of Directors’ meetings? Do outside
members of the Board also actively express
their opinions?
Sakai: A variety of matters are brought up at the Board of
Directors’ meetings, but I have the impression that they
deal particularly with investment proposals, such as loans
to subsidiaries and acquisitions of companies. All membersof the Board of Directors, including us outside members,
actively discuss the appropriateness and cost-effectivenessof such proposals. Very active discussions are held, and I
feel the great energy of a company seeking to become a10-trillion yen company by 2030. Recently, in connection with“One Nidec,” there has been a noticeable increase in mattersrelated to the chain of command of the entire Group.
The number of matters that require consideration by the
Sustainability Committee and Nomination Committee is also
gradually increasing, indicating that the governance of the
Nidec Group is being further strengthened.
One of the characteristics of Nidec’s Board of Directors
is its prompt and quick response to any matter. Once thediscussion is complete, the matter is dealt with in thefollowing month, and the results and progress reports
come up at that month’s Board of Directors’ meeting.
I was surprised at this speed.
I was also surprised at first that Chairman Nagamori
listened to the opinions of the Board members very
seriously. He always listens carefully to the opinions of theBoard members to the very end, regardless of whether
they are internal or outside members. From this attitudeof Chairman Nagamori, I learn how to be impartial as a

71

NIDEC CORPORATION

chairperson, that is, how to treat members’ opinions fairly.
—A very lively, yet mutually respectful discussion istaking place, isn’t it? How do you yourself express youropinions in discussions?
Sakai: I have tried to present points of discussion, forexample, what is the purpose and significance of the project,
whether it has been deemed necessary and appropriate
based on the market outlook, and whether a rigorous
investigation has been made to ensure that it does not
violate laws and regulations. Over the past three years,
I have learned the “points to which particular attention
should be paid in business activities of Nidec Corporation,”so I try to indicate the meaningful points of discussion byleveraging my experience and knowledge. For example, when
discussing risks associated with acquisition of a company,
I would point out the necessity to check with the accounting
staff of the acquiree company to determine whether there
are any risk factors of concern and to implement robust
preventive measures, or something like that.
Meanwhile, when a problem occurs, I would suggest apoint of view that should be kept in mind when reviewing
and reinforcing measures to prevent recurrence. Eachmember of the Board makes perceptive comments related
to his or her area of expertise, and adequate time is spentfor discussion.
—I have heard that outside members of the Board inparticular are making perceptive points.
Sakai: Each of the outside members of the Board of
Directors has a wealth of knowledge and individuality, andeach has a different perspective backed by his or her career,so they relentlessly dig deeper into the points that internal
members may not easily notice or that they have notconsidered sufficiently. Internal members accept such points
without a sour face, and they immediately take necessary
measures. The speed of their action is truly amazing.
—Next, let me ask you about the Nomination
Committee. This is a new committee that was justestablished at the end of last year, but is it also operated
in a free and open atmosphere? Has an atmospherebeen created in which outside members of the Board can
express their frank opinions to Chairman Nagamori and
President Kobe?
Sakai: Chairman Nagamori is one of Japan’s leadingbusiness leaders. In that sense, I feel a sense of tension
when I meet him at committee meetings. However, allCommittee members have a strong sense of “saying whatneeds to be said,” so discussions never get bogged down
or are monopolized by some particular person. Once,
Chairman Nagamori and President Kobe brought a draft
for the selection process for executive vice presidents, but
after much discussion at the Nomination Committee, drasticchanges were made to some elements. The Committee
members all expressed their honest opinions on the
proposition of “what kind of corporate leader is appropriate
for a company in the new era of Reiwa,” and the conclusions
drawn from discussions are certainly reflected in the
Company’s movements.

lead others and encourage their growth.” In addition tothese important points, we also examined each candidate’s
sincerity and integrity, mental strength to not be easily
swayed, and business foresight, using the results of the360-degree evaluation as a reference. In order to selectindividuals who excel overall in a balanced way, rather thanthose with one particular talent, we also had the opportunity
to interview Chairman Nagamori and President Kobe ingreat detail about the personalities of the candidates.
—It is an extremely difficult task to identify people who
can lead the Nidec Group in the future together with its
global employees.
Sakai: I feel a heavy responsibility far beyond myimagination. That’s why I want to see it through to theend. In the selection of the president, we will continue
discussions until we are all convinced so that we will never
have any regrets.

—You are laying the foundation for human resource
development so that the Nidec Group can continue togrow without problems even as the generation changes.
Sakai: Yes. I believe that if the selection process for
successors has been firmly established, the Nidec Groupshould be able to continue its business for many years tocome with the participation of young people. I am honored
to be involved in important discussions about the future of
the Nidec Group. I am sure the other two outside membersof the Board share this sentiment.

—I would also like to ask you about the Sustainability
Committee, the other committee that you serve as
chairperson. What role do you think the Sustainability
Committee, which has been in existence for about a year,
should play in the future?
Sakai: Until now, Nidec Corporation has focused its energy
mainly on its own growth. In other words, the Company has
been thinking about its own survival for the past 50 years,
but for the next 50 or 100 years, it must also consider thesustainability of the international community and the global
environment at the same time. Under such circumstances,
I believe there is great significance in that the Sustainability
Committee serves as a forum to gather and consolidate
internal knowledge. Although we are still in a trial-and-error
phase, we intend to make it a meaningful meeting bodyfrom the perspective of improving corporate value over the
medium to long term, while referring to the opinions of thecommittee members and the operating secretariat.

—The recent executive vice president selection was thefirst step in the process of selecting successors, which
will be the cornerstone of the Nidec Group. Did you
conduct any interviews with the executive vicepresident candidates?
Sakai: Yes. We conducted online interviews with eachcandidate. Based on the selection criteria, we first checked“whether the candidate understands Nidec’s corporate
culture and practices it.” Next, we paid attention to “whether
or not the candidate is able to add-on his/her thinking to
new trends and clearly envision the future of the Company”
and “whether or not the candidate has the qualities to—Finally, please tell us about your expectations for
Nidec in the future.
Sakai: The Nidec Group is trying to accomplish a majorchange in the form of generational change in this era of
instability and uncertainty. It is not an easy task, but I would
like you to take this opportunity to solidify your approachto human resource development, which will serve as acornerstone for the times to come. I hope that you will
carefully build a system that will enable all individuals todemonstrate their abilities and grow, regardless of theirrank, job responsibility, age, gender, nationality, or any
other attribute.

INTEGRATED REPORT 2023

Materiality

Ms. Takako Sakai has served as an outside director of Nidec since 2020. She also serves as the headof the Nomination Committee and Sustainability Committee, meeting bodies that symbolize thefuture of the Company. The following is an interview with her, in which she talks about how the
Company is changing.

72

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

Governance

The purpose of the corporate governance of the Nidec
Group is to become a conscientious and principledcompany that earns society’s trust and to increase ourcorporate value sustainably, based on the motto “Highgrowth, high profit, and high share price.” To this end,
we maintain and enhance our internal control, thereby
running our business more healthily and efficiently.
Furthermore, we disclose information appropriately
to increase the transparency of the Company’sbusiness operations.
We are also committed to ensuring the independence
and diversity of the Board of Directors by taking into
account, among others, the balance of the knowledge,
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 understandingthat corporate governance is one of the highest-priority
issues for our sustainable growth and medium- to longterm improvement in corporate value, we will makeefforts to enhance the relevant systems.

Materiality
Board of Directors
	Continue to have the effectiveness of the Board of
Directors evaluated by a third party.
	Always maintain the ratio of outside directors on the
Board of Directors at 50% or more and the ratio of
female directors at 20% or more.
Nomination Committee / Remuneration Committee	Increase transparency and fairness in theappointment and dismissal process of directors.
	Improve the effectiveness of the Remuneration
Committee, and ensure the objectivity andtransparency of remuneration decisions for directors.

Initiatives in FY2022

To ensure the effectiveness of the Board of Directors,
Nidec annually sends out questionnaires to allmembers of the Board of Directors, including outside
members, to evaluate its effectiveness and analyze
current issues. In FY2021, we introduced a third-party(external law firm) evaluation system for objective

73

NIDEC CORPORATION

2008 2009

evaluation and analysis. In FY2022, the supervisory
function of the Board of Directors was highly evaluatedas in the previous year, and we confirmed that our
Board of Directors is functioning properly. Based on
the results of the questionnaires, we will continue toformulate measures for constant improvement.
In November 2022, we established the Nomination
Committee as an advisory body to the Board of
Directors. The Nomination Committee deliberates
on the policy on the appointment of directors andexecutive officers, the criteria for appointment, and thedecision on candidate proposals. In FY2022, five vicepresidents were appointed.
Regarding remuneration of officers for FY2023, after
deliberation, the Remuneration Committee reported to
the Board of Directors a review of remuneration levels.

* Meetings to be held to explain management strategies and businesses, conduct site
tours, and share opinions from investors and other stakeholders

2011

2012

Company with an Audit & Supervisory Board

Separation ofsupervisionandexecution

Executive officer system introduced

Outsidemembers of
the Board of
Directors

Toward the future

To ensure the effectiveness of the Board of Directors,
it is important to provide sufficient information andsecure opportunities for discussion on each agenda
item, as well as to provide appropriate informationon the industry and market in advance. These will
promote non-executive directors’ understanding ofour business. Therefore, we plan to continue to holdpreliminary briefings and informal meetings* attended
by the Representative Director and President, Executive
General Managers of Business Units, executive officers,
and others while enhancing discussions atthese meetings.
The Nomination Committee deliberates on thenomination and appointment process, which is thenresolved and stipulated at the Board of Directors’
meeting to enable dissemination of informationinternally and externally as well as to candidates,
thereby enhancing fairness, transparency, andobjectivity. In FY2023, the Nomination Committee plans
to nominate vice presidents for FY2024. The Committee
will also nominate a president for the first time since
it was established. We will also continue efforts toimprove the effectiveness of the Remuneration
Committee by taking necessary measures while taking
into account the social situation and requests fromour stakeholders.

2010

Board ofDirectors
systemdesign

(FY)
2013

2014

2015 2016 2017 2018 2019 2020 2021 2022

2023

Company with an Audit &Supervisory Committee
Enhance the supervisory
function of the Board of
Directors and improve thesoundness and transparencyof business management

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

Outsidemembers of
the Boardof Directors
appointed
Improve theeffectiveness ofmanagement
oversight andtransparency
in decision
makingRatio of Outside
Directors

Femaleoutsidemembers of
the Boardof Directors
introduced
Improvediversity

Outsidemembers of
the Boardof Directors
increased
Further
improveeffectivenessof the Boardof Directors

Ratio of Outside
Directors

20%60%(2 outside
directors out of
10 directors)

Advisory Committee for the Board of Directors

Basic stance

History of Nidec’s corporate governanceMateriality

Build a fair, transparent and highly effective governance system(6 outside
directors out of
10 directors)

Nomination
Committee

Remuneration
Committee

Sustainability
Committee

OutsideDirectors’Meeting(informal
meeting)
Board ofDirectors
effectivenessevaluation

INTEGRATED REPORT 2023

74

GovernanceInternal member of the Board of Directors Male
Outside member of the Board of Directors Male

FemaleShareholders’ Meeting
Appoint / Dismiss

3

Nominating Committee

ReportMembers of the Committee

Consult

4

Remuneration Committee

ReportMembers of the Committee

Consult

Sustainability Committee

Report1

Appoint / Dismiss

Audit / Supervise

Board of Directors

2 Audit & Supervisory

Cooperate

Committee
Members of theCommittee

Members of theBoard of Directors

Appoint / Dismiss

Audit / Supervise

CSR Committee

Committee

Report5 Risk Management

Cooperate

Compliance
Committee

Executionof business
operations

COO
Executive
Management Meeting

Audit

Accounting
Auditor

CFO

Management
Committee

CPO
CCO

ESG materiality
Steering Committee

CTO

Corporate Administration & Internal Audit Dept.
Internal
audit

CAO

Vice President

Vice President

Vice President

R&D Bases

Administrative Bases

Sites/Group Companies

Category

Percentage

Human resources

31.5%

Business strategies, sustainability, governance

4.2%

Financial results

27.4%

M&A

3.6%

Individual matters

24.4%

Shareholders’ meeting, shareholders

1.8%

Compliance, risk management, internal control

7.1%

FY2022 evaluation results
CEO

7

Percentage

	Continued to provide explanation for outside members of the Boardof Directors prior to Board meetings so that they can be provided with
sufficient information on each item of the agenda and opportunities
for discussion.
	Promoted understanding of our business by non-executive directors at
informal meetings (explanation of business and online plant tours) andshared information obtained from investors and other stakeholders on
a continuous basis.

Supervise

6

Category

Efforts made in FY2022 to ensure effectivenessSupervise
Report

Themes of deliberations/reports at the Board of Directors meetings (FY2022)

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

Members of the Committee

Information Security
Committee

Themes of deliberations at the Board of Directors meetings

CSO	In addition to the size, composition (ratio of internal and outside
directors, diversity, etc.), meeting frequency and length, and the qualityof information and explanation provided to Board members, the Boardof Directors was highly evaluated in terms of the following points: “TheBoard functioned sufficiently on the whole,” “Board materials cover allnecessary information,” and “The Board provides sufficient oversight toensure that the development of potential management successors is
carried out in a planned manner with sufficient time andresources given.”	A third party (an outside law firm) also gave high marks to theeffectiveness of the Board of Directors in general, including its
composition and operation, and confirmed that a system has been	Provided information on investment projects by such means as
explaining their relationships with the medium- to long-term strategic
goals at the Board of Directors’ meetings.
	Disclosed a skills matrix at the time of director appointment, andexplained the career background, skills, etc. of the persons appointed
as executive directors or other responsible executive positions
upon appointment.

Materiality

Corporate governance structure

established to facilitate fruitful discussions at Board of Directors’
meetings and that free, lively and fruitful discussions were actually
taking place. In addition, the overall supervisory function of the Boardof Directors was highly rated, and it was also confirmed that substantial
discussions were conducted on issues such as sustainability, which has
been increasingly recognized as an important management issue inrecent years. This third-party evaluation system has been implemented
since FY2021.
	As for issues, several respondents pointed out that Board of Directors’
meeting materials should be provided earlier, while others pointed out
the need for deeper discussions on medium- to long-term management
strategies and issues. Further improvements are considered necessary.

Initiatives for FY2023

CSCO

	Based on the view that appropriate prior provision of industry and market information to non-executive directors will lead toenhanced deliberations, the following initiatives will be implemented to promote their understanding of Nidec’s business.
– Review the themes of the preliminary briefing sessions and informal meetings that are currently being held, and hold them
regularly four times a year.
– Continue to provide business overviews by the Representative Director and President and the Executive General Managers ofBusiness Units at the Audit and Supervisory Committee meetings.
	Consider progress reports on matters to be brought to the Board of Directors at preliminary briefings for non-executive directors.
	Level out the number of items to be discussed each month by, for example, bringing regular agenda items forward for discussion.

Cooperate

Corporate Philosophy and Action Principles(Mission Statement, Governance Policy)(June 30, 2023)

Skills matrix
Professional skills and experience required of members of the Board of Directors  * Maximum of threeName

1 Board of Directors

Status of operation

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

Businessstrategy

Technology
and R&DInternationality,
global experience

Human resources
development

Environmentand society

Legal affairs,
compliance

Finance andaccounting

Governance, risk
management

Shigenobu Nagamori
Hiroshi Kobe
Kazuya Murakami
Hiroyuki Ochiai
Shinichi Sato
Yayoi Komatsu
Takako Sakai
Aya Yamada
Junko Watanabe
Hiroe Toyoshima

75

NIDEC CORPORATIONINTEGRATED REPORT 2023

76

Governance

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
Total committee
members

Full-timemembers

Internal Members of theBoard of Directors

Outside Members of theBoard of Directors

Chairperson

5

2

2

3

Internal Member of the Board of Directors

Composition

Cooperation between the Audit and Supervisory
Committee and accounting auditors

The Corporate Administration & Internal Audit Department, Nidec’sinternal audit department, regularly hold meetings with the Audit andSupervisory Committee to report on the results of the Nidec Group’s
internal audits. In addition, the Audit and Supervisory Committee
exchanges opinions and shares information with the Corporate
Administration & Internal Audit Department as necessary, andrequests the Corporate Administration & Internal Audit Department
to conduct on-site audits.

3 Nomination Committee

The Nomination Committee is headed by Takako Sakai, an outside member of the Board of Directors, and consists of two internal members andthree outside members of the Board of Directors. The Committee deliberates on the policy and criteria for the appointment of directors andexecutive officers, etc., as well as the succession plan and the approach to the succession plan, and the proposed candidates for executive vicepresidents and president.
4 Remuneration Committee

should, on or after the day when his/her right to receive
compensation is finalized, commit an illegal action suchas a material violation of his/her duties or internal rules/
regulations, the company may request that the individual
pay restitution.

Total amount of remuneration by category of directors and by type of remuneration,and the number of eligible directors
Total amount by type of remuneration (million yen)

CategoryTotalamount of
remuneration(million yen)Fixed
remuneration

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

179

158

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

34

Outside directors

41

Cooperation between the Audit and Supervisory
Committee and the internal audit department

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 andthe like.

Description

Payment method

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

Performance-linked
share-based
remuneration

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 andthe amount of money equivalent to the shares converted into cash are provided and paid

After three fiscal years(shares and money)

3. Procedure to decide the remuneration amounts
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,

NIDEC CORPORATION

which is a voluntary advisory body, in accordance withthe criteria specified by this policy. Similarly, the details of
the performance-linked share-based remuneration aredetermined by the Board of Directors based on reports
submitted by the Remuneration Committee.

15

－

5

34

－

－

－

2

41

－

－

－

9

Name

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

Company
category

106

Representative
Director

Company subject
to submission

Shigenobu Nagamori

5 Various committees

Remuneration type6

Total amount of
remuneration(million yen)

Policies on remuneration for Members of the Board of Directors

Fixed remuneration

Retirement
benefits

Total amount of consolidated remuneration, etc. of each director* Only directors whose total amount of remuneration is 100 million yen or more are presented.

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

Numberof eligible
persons

Performancelinked
remuneration

Variable
remuneration*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.

The Remuneration Committee consists of two internal members and three outside members of the Board of Directors, headed by Hiroshi Kobe,
Representative Director and President (Chief Operating Officer) as the chairperson. The Committee members discuss basic policies and systems
for remunerations of directors in response to consultation from the Board of Directors, and reports the results back to the Board of Directors.
1. Basic policy The remuneration for Nidec’s directors is determined based on thefollowing policy, to enhance the company’s global competitivenessand secure the sustainable growth of its businesses.
Increase motivation toward improving corporate value;
Contribute to securing talented managerial human resources; andEnsure that the level of the remuneration is appropriate for the
scale and area of Nidec’s businesses.

77

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

Materiality

2 Audit and Supervisory Committee

Name

Fixed
remuneration

Variable
remuneration

Performancelinked share-based
remuneration

78

6

22

Description

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.

Compliance Committee

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

Risk Management
Committee

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 and measures, and submit reports and proposals to the Boardof Directors. It also monitors the company-wide risk management status and constantly reviews the adequacy of allocationof 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.

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 andthe committee members appointed at each site discuss and make decisions on CSR activity policies and annual plans andother important matters. Matters decided at the CSR Committee meetings are reported, or discussed if necessary, at the Boardof 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.

6 Executive Management Meeting

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

The Management Committee, the consultative body to the Representative Director and Chairman, is held and chairedby the President and Chief Executive Officer twice a month in principle to discuss overall operational directions, plansand other important considerations in the execution of business.
INTEGRATED REPORT 2023

78

GovernanceName

Reasons for appointment

Shinichi Sato

Status of attendance(number of meetings attended)

Activities

Board ofDirectors

Audit &
Supervisory
Committee

Nominating
Committee

Remuneration
Committee

Mr. Sato has held prominent posts at the Ministry of Finance of Japan and other organizations.
He will provide Nidec with advice on its overall business operations based on his high level ofexpertise, which will further enhance the company’s corporate governance function.
Since he meets all the requirements for independent directors from the past to the present inaccordance 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 an independent director.

17/21

―

―

0/0

Mr. Sato actively provides opinions at the Board of Directors’
meetings and supervises the management team from an
independent and objective standpoint by leveraging his
superior insight in finance and accounting as well as abundant
experience and high-level insight in a wide range of fields,
including economics, fiscal affairs and monetary policy.

Yayoi
Komatsu

Ms. Komatsu has held prominent posts at the Ministry of Education, Culture, Sports, Science andTechnology of Japan and other organizations. She will provide Nidec with advice on its overallbusiness operations based on her high level of expertise, which will further enhance the company’s
corporate governance function.
Since she meets all the requirements for independent directors from the past to the present inaccordance 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 an independent director.

20/21

―

3/3

―

Ms. Komatsu actively provides opinions at the Board of Directors’
meetings by drawing on her abundant experience and superior
insight in a wide range of fields, including technical researchand development as well as human resource development.
She serves as a member of the Nomination Committee, which
was set up as an advisory body to the Board of Directors of theCompany, and plays an important role in determining selection
policy and criteria and proposals of candidates for directors andexecutive officers, etc. She thus supervises the management
team from an independent and objective standpoint.

Takako Sakai

Ms. Sakai is currently a professor at the Graduate School of Law, Osaka Metropolitan University.
She will provide Nidec with advice on its overall business operations based on her high level ofexpertise as a university professor, which will further enhance the company’s corporate governancefunction. Since she meets all the requirements for independent directors from the past 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 an independent director.

24/26

4/4

3/3

1/1

Ms. Sakai actively provides opinions at the Board of Directors’
meetings, based on her sophisticated academic and professional
knowledge in the tax and accounting fields as a university
professor. As chair of the Nomination Committee, which was
set up as an advisory body to the Board of the Directors of theCompany and as a member of the Remuneration Committee,
she plays an important role in determining selection policy andcriteria and proposals of candidates for directors and executive
officers, etc., and ensuring transparency of the process to decide
remuneration for directors and determining the adequacy of
their remuneration. She thus supervises the management teamfrom an independent and objective standpoint.

Aya Yamada

Junko
Watanabe

Hiroe
Toyoshima

Ms. 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 the endowed course “Advancing
Electrical Equipment to Realize a Friendly Global Environment” at Kyoto University Graduate Schoolof Engineering. The amount of the donation was 45 million yen in fiscal 2018 (compared to the total
amount of donation to the University during the same fiscal year, 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 millionyen), 39 million yen in fiscal 2021 (compared to 5,416 million yen), and 49 million yen in fiscal 2022.
The donation in FY2022 includes a donation for the 125th anniversary of the University.
We consider that in any year the amount of our donations is insignificant compared to the total
amount donated to the University. In addition, there is an agreement for joint research between
Nidec and the University’s Graduate School of Engineering, and Nidec paid 18 million yen in researchexpenses to the University in the previous fiscal year (FY2022). Given that Ms. Watanabe’s department
is not the one to which Nidec made its donations or paid expenses and that Ms. Watanabe is not in aposition 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.

24/26

Ms. Junko Watanabe currently works as a professor of the Graduate School of Economics,
Kyoto University. Her advice, based on high-level expertise as a university professor from an
independent position, will help the Board of Directors strengthen its decision-making and audit andsupervisory 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 Schoolof Engineering. The amount of 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 millionyen), 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, given that 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.

11/13

Ms. Toyoshima currently practices as an attorney. Her advice, based on her high-level expertise as
an attorney, on Nidec’s overall business operations will further enhance the Company’s corporate
governance function. Since she meets all the requirements for independent directors from the past
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 an independent director.

―

14/14

5/5

3/3

―

0/0

―

Ms. Yamada actively provides opinions at the meetings of theBoard of Directors and the Audit and Supervisory Committee,
based on her high-level academic expertise in the field of law
as a university professor from an independent and objective
standpoint, fulfilling the supervisory function of management.
As a member of 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 theBoard of Directors. She serves as a member of the Nomination
Committee, which was set up as an advisory body to the Boardof Directors of the Company, and plays an important role indetermining selection policy and criteria and proposals of
candidates for directors and executive officers, etc. She thus
supervises the management team from an independent andobjective standpoint.

Ms. Watanabe actively provides opinions at the meetings of theBoard of Directors and the Audit and Supervisory Committee,
based on her high-level academic expertise in the field of
economics as a university professor from an independentand objective standpoint, fulfilling the supervisory functionof management. As a member of the Audit and Supervisory
Committee, she has also contributed to audits by the Audit andSupervisory Committee on the execution of duties by membersof the Board of Directors.

NIDEC CORPORATIONThe General Affairs Department, which acts as the secretariat
for the Board of Directors, supports the Outside Membersof the Board of Directors. The General Affairs Department
provides the outside directors with the company’s information
in a timely manner, and corresponds to their inquiries throughday-to-day communication. With regard to the meetings of theBoard of Directors, the General Affairs Department provides
all members of the Board of Directors with materials related tothe proposals for the meetings and accounting information, atthe latest one day before the day of the meeting. 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 and Supervisory Committee is held, meeting notices aresent out to all the Audit and Supervisory Committee Members

―

―

―

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 are sent to the members, atthe latest one day before the meeting. After a meeting of the
Audit and Supervisory Committee, meeting minutes are sent to
all Audit and Supervisory 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 andSupervisory Committee Members and Nidec’s executive officers.
Outside members of the Board of Directors who are notmembers of the Audit and Supervisory Committee have informal
meetings with the Audit and Supervisory Committee members,
where various information is provided by Nidec’s executive
officers. They also conduct on-site inspections of the businesssites in Japan, in person or online.

Internal control
Basic stance

The Nidec Group commits itself to enhancing its managementsoundness and transparency by establishing a compliancesystem generally required of a listed company in Japan, andclarifying its risk management responsibilities. Specifically,
through the auditing activities of the Corporate Administration& Internal Audit Department, the Group aims to maintain andimprove the effectiveness 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 theLegal & Compliance Office, the Risk Management Office, theInformation System Department, 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

	Expand audit resources qualitatively andquantitatively based on the assumption of a sales
scale of 4 trillion yen.

Initiatives in FY2022

In order to establish a highly effective global internal audit
system based on the assumption of sales of 4 trillion yen in
FY2025, it is essential to further sophisticate and improve theefficiency of internal audit operations. In FY2022, we worked
to prevent errors in financial reporting, visualize risk areas,and deepen audit procedures by strengthening the self-audit
system at the field level (all Nidec Group sites) and conducting
monitoring at all consolidated sites using DX.

Toward the future

We will continue to enhance the sophistication and efficiency
of auditing operations through the use of DX while expanding
the target areas. We will also strive to upgrade our humanresources by, for example, training auditors with specialized
qualifications, language skills, and a deep understanding of
the business environment. Currently, an audit system is inplace in five locations, Japan (Kyoto), Europe (Amsterdam),
Americas (St. Louis), China (Shanghai), and Asia (Singapore), tocover the entire Nidec Group. We will also work to strengthen
the audit system in the European region, where the numberof companies is increasing significantly.

―*1 During the fiscal year under review, the Board of Directors held 26 meetings, the Audit and Supervisory Committee held 14 meetings, the Audit & Supervisory Board before transition
to the Audit and Supervisory Committee held 3 meetings, and the Remuneration Committee met once.
*2 The difference in the number of times held is due to differences in the timing of assuming office.
*3 Ms. Takako Sakai was elected as a member of the Board of Directors at the 49th Annual General Meeting of Shareholders held on June 17, 2022. She had previously attended meetingsof the Board of Directors, the Audit and Supervisory Committee, and the Remuneration Committee as a member of the Board of Directors (Audit and Supervisory Committee member);
therefore, the number of meetings attended by Ms. Sakai includes those meetings attended as a member of the Board of Directors (Audit and Supervisory Committee member).

79

Support systems for Outside Members of the Board of Directors

Materiality

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

Corporate governance of Group companies
The Nidec Group companies operate under Nidec’s mission
statement and policies, and therefore they are incorporated
in Nidec’s internal control system. The Group companies,
to which Nidec sends some directors and employees, havesufficient discussions before making decisions on businessexecution that correspond to the circumstances of eachcompany, based on specialists’ opinions as necessary, thereby
endeavoring to assure their independence.

INTEGRATED REPORT 2023

80

Governance

Policy for cross-shareholding

Nidec holds shares in the companies that Nidec has
relationships with in terms of trading and cooperationin its business and other areas, when it judges that suchshareholding contributes to the company’s corporate
value expansion through stabilization of its business froma medium-tolong-term perspective by maintaining andstrengthening its relationship with those companies. Nidec
assesses its cross-held shares individually at the Boardof Directors meeting every year, on not only qualitative
aspects such as the purpose of the shareholding, but also
on quantitative aspects such as the benefits that can accrue
through the shareholding from the perspective of economic
rationality. According to the results of the assessment, Nidec
intends to reduce the number of shares it holds if the crossheld shares are not expected to bring significant benefits.

Criteria for exercising voting rights forcross-shareholding

With regard to the exercise of voting rights in relation tocross-shareholdings, Nidec makes comprehensive decisions
to vote for or against individual proposals to serve theinvestees’ sustainable growth from the perspective of whether
appropriate governance and compliance structures are inplace 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 medium-to
long-term investment; and particularly, whether there are
any circumstances that might lead to undermining of theshareholders’ value due to the restructuring of organizations,
including asset transfer and mergers. Nidec opposes all
proposals that are considered to violate the law or constituteantisocial behavior, in all circumstances.

Follow thorough compliance with laws and regulations
Basic stance

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 applicablelaws, regulations, internal rules and standards, social ethicalstandards, etc. to raise executives’ and regular employees’
ethical awareness, develop conscience as a company, and winsociety’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 andappropriately. We will also strengthen compliance education for
employees to further raise their compliance awareness, thereby
reducing compliance-related risks.

Materiality

	Expand the legal affairs and compliance system to all Group
companies starting from Nidec Corporation and regional
management companies (China, the U.S. and Europe).
	Identify serious non-compliance risks and takepriority measures.
	Provide compliance education to all employees once a year.

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NIDEC CORPORATION

Efforts made in FY2022

The Nidec Group currently has over 300 group companies in
40 countries around the world. We recognize that building
a governance 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 majorbases. 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 constantly identify
high-risk group companies based on their distance frommajor sites and the information on the risk of corruption incountries where they are operating and implemented specificprevention measures in consultation with the management ofsuch companies and other risk reduction activities.

Toward the future

We will continue the hazard map project for a certain periodof time to identify high-risk companies in order from thosewith the highest risk to reduce the governance risk at remotesmall sites. We will implement risk reduction activities,
including for companies that have newly joined the Nidec
Group through acquisitions.

Nidec’s Legal & Compliance Department, working in
partnership with Regional Compliance Officers of theindividual regions where the Nidec Group’s business bases
operate (the Americas, China, Europe, and Southeast Asia)
and Compliance Managers and Promoters of individual
business departments and group companies, builds andoperates a global compliance system. Compliance Managers
implement and operate compliance-related measures toraise the compliance awareness of the organizations under
their supervision, and bear responsibility for preventing
compliance violations. Compliance Promoters promote thespecific compliance measures of such organizations, whileserving as a liaison with the Legal & Compliance Department
and Regional Compliance Officers, who provide support
for individual regions’ Compliance Managers and accept
whistleblowing cases.

Internal reporting system

As part of the comprehensive, group-wide compliance system,
we have established an internal reporting section (the Nidec
Global Compliance Hotline) available for all board members,
executives and employees (including regular and part-time
employees, those dispatched from outside agencies, limitedterm employees, and those who have retired from the
Nidec Group within a year), and a third-party contact point
outside the company. Fiscal 2021 saw a total of 124 casesof whistleblowing and consultations made on suspected
misconduct and harassment, among others, an increase of
8 cases from the previous fiscal year. The status of internalreports is reported to the Board of Directors and the Audit
and Supervisory Committee on a regular basis.

Number of cases

FY2019FY2020

FY2021

FY2022

142

116

125

119

Compliance seminars

As part of the compliance promotion activities, we holdcompliance seminars for our group’s executives andemployees to maintain and improve their level of complianceawareness. For example, seminars and discussions are heldon such topics as cartels, bribery and human rights issues,
with the Regional Compliance Officers serving as lecturers
using the Nidec Compliance Handbook as teaching material.
The compliance seminar for board members and executives isalso held once a year, with the invitation of an outside lecturer.

Regarding violation of the regulation of
distributable amountAt the Board of Directors’ meeting held on October 24, 2022,
Nidec resolved to pay a dividend of 35 yen per share andimplemented it. However, in the process of examining the
distributable amount for the fiscal year ended March 31,
2023, it was discovered that the interim dividend in question
exceeded the distributable amount calculated in accordancewith the Japanese Companies Act and the Regulation on
Corporate Accounting.
In addition, a subsequent investigation revealed that theCompany’s share repurchase conducted by the trust bankunder the trust agreement from September 1, 2022 throughMarch 31, 2023 also exceeded the distributable amount.
In response to this situation, the Company conducted aninvestigation on this matter by the External Investigation
Committee, consisting of external attorneys. On June 16,2023, the Company received the investigation results fromthe Committee. For details, please refer to the investigation
report posted on our website. Nidec will take measures toprevent recurrence based on the proposals of the External
Investigation Committee and work to further improve theCompany’s corporate governance.

Materiality

Organization

Cross-shareholding the investigation results, click the URL below.
Forhttps://www.nidec.com/en/ir/news/2023/news0616-01/

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

Compliance Managers and Promoters

Managers
Promoters

Business Units

Administrative
departments

Head of eachbusiness unit

Director in charge of eachdepartment

GM of each organization/department

Group companies(including overseas subsidiaries)

Working on specific compliance measures
for the entire Group

Legal & Compliance Department
Regional Compliance Officers

Addressing compliance issues unique toindividual countries/regions

President
Head of administrative department

INTEGRATED REPORT 2023

82

Governance

Basic stance

It is necessary and important to identify and manage risks forthe purpose of preventing the expansion of losses due to lackof 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 the risks that should be reduced
in order of priority. The Company manages the progressof reducing the impact of such risks on our business whileworking to enhance its initiatives to identify signs of risks.

Materiality

	All risks disclosed on the securities reports areevaluated by the department in charge, and the risks
to be addressed in priority are identified.
	Reduce the impact of the risks to be addressed inpriority on our business. Manage the progress of
reducing such impact and any residual risks.

Initiatives in FY2022

In FY2021, we reviewed our risk management system andestablished a system to conduct risk assessment on each levelof the hierarchy shown below and mutually use assessment
results for the measures for other levels. In FY2022, we worked
to identify areas for improvement by continuing to conduct risk
assessment, priority risk identification and risk reduction activities
for the Business Unit level (L2), which were initiated in FY2021.
We interconnect the risk management activities of different
hierarchical levels by checking the risks identified in L2 in thecorporate level (L3) as well and reflecting company-wide issues
that should be addressed under the leadership of L3, if any arefound, in L3-level risk management activities as necessary.
Corporate level(Department in chargeof the risk)

L3

Business Unit level

L2

Business site level

L1

In FY2023, we will establish a new system at all levels,
including L1 (major business site* level). In particular,
for serious contingent risks that could lead to businessinterruptions, the Business Unit level (L2) periodicallychecks the status of the development of the BCP (BusinessContinuity Plan) at the major business site* level (L1) under its
umbrella and works to ensure that improvement activities are

83

NIDEC CORPORATION

continuously conducted for risk reduction.
* Major business sites: Business sites that are selected to cover 80% of the sales of theBusiness Unit or Group company to which they belong

Risk management system

The Nidec Group uses a medium-term business plan, which
is designed to realize the Group’s long-term vision, which isdefined as a set of specific numerical and qualitative targets,as a basis of the Group’s business plan for each fiscal year.
Our medium-term plan is formulated based on discussions on
its feasibility as a medium-term goal, consistency with our longterm vision, and issues and risks for us to overcome to achieve
the vision. Each medium-term plan is revised (rolled) during
its execution phase, based on changes in the market and thestatus of execution.
We have also formulated the Risk Management Regulations toestablish a risk management system for the entire Nidec Groupand have in place a Risk Management Committee under the
Board of Directors. Additionally, we promptly report and shareimportant information in the risk management meeting held
every morning so that the information can be utilized in ourdaily operations. Such information is also extensively discussed
and shared in the Senior Managers’ Meeting as necessary.

BCP (Business Continuity Plan)

Starting from March 2014, the Nidec Group has conducted
BCP simulation training assuming such risks as an earthquake,flooding, drought, outbreak of an infectious disease, and fireat its sites both inside and outside Japan. The training, with a
total of more than 3,430 employees participating as of the endof March 2023, helped them improve their skills to respond tosuch events. To respond to the COVID-19 pandemic, we set up a
COVID-19 Crisis Management Headquarters from January 2020
to May 2023. In FY2022, we were hit by the Shanghai lockdown
and the spread of infection following the dissolution of China’s
zero-COVID policy, but we were able to minimize the impact on
our business by working together as a Group in securing logistics.

Basic stance

The Nidec Group possesses information that is necessary
for conducting its business activities, including not only
the information produced or gathered within the Groupbut also information provided by its business partners.
We understand that it is very important to protect anduse 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 ofany such information may lead to loss of trust in us fromour customers or the market, as well as a decline in ourcompetitiveness. It may also result in a legal penalty.
We will work to prevent serious security incidents
by identifying and assessing rapidly changing andincreasing information security risks and taking
effective measures according to the risks.

Materiality

	Reduce the number of serious information security
incidents to zero.

Information security structure
Board of Directors
Information
Security Committee

Chief Information
Security Officer(CISO)
Information Security
Management Group

Information Security Manager
Each business unit, Group company

Information Security Promoter
Each business unit, Group company

Risk Management Committee

L = Level

Toward the future

Promote information security measures

The Risk Management Committee is placed under the Boardof Directors and chaired by the executive officer in charge ofrisk 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. Basedon the annual policies established by the Risk Management
Committee, department general managers in charge of risk
management and Group companies formulate and carry out
their respective annual risk management plans.

Initiatives in FY2022

In order to strengthen information security measures
for the entire Nidec Group, we established andrigorously operated an information security
management system and thoroughly implemented
basic measures across all Group companies, including
clarifying important information assets and providing
information security training for directors andemployees. In response to increasingly sophisticatedcyber-attacks, we promoted the introduction of defense

mechanisms to prevent unauthorized access fromoutside the Company and to detect and immediately
block malicious programs such as computer viruses,
thereby enhancing information security for the entire
Nidec Group in terms of both structure and technology.
As a result, no serious incidents due to cyber-attacks orother causes occurred in FY2022.

Toward the future

 trengthening measures against internal
S
information leaks

We have actively developed and implemented measuresagainst “external threats” such as cyber-attacks andintrusion of malicious programs into the Company’s
computer network, which are becoming more andmore threatening every year. In the future, we will alsoenhance measures against “internal threats” such as
information leaks.
There are two types of information leaks:“negligence,” which is the result of carelessness or
disregard for rules, and “fraud,” which is the misuseof rights and privileges. To prevent information leaks
due to negligence, we will systematically ensurecompliance with internal rules while raising employees’
awareness of risk management to ensure thoroughimplementation of basic procedures that can prevent
negligence. Meanwhile, in order to prevent fraud byinsiders, we will make known to employees fraudulent
acts that deviate from the rules. We will also introduce
a system to monitor fraudulent acts to strengthen
information management.

Materiality

Build a risk management systemI mproving information security management
capabilities centered on the automotive
business

In the automotive business, we will continue to
implement measures based on cyber security
guidelines for the automotive industry and strengthen
our capabilities to respond to cyber incidents.
We will also establish a voluntary improvement processof self-inspection, evaluation, and improvement for
security risks that change year by year, not only in theautomotive business but also in other businesses.
At the same time, we will improve the information
security management capabilities of the entire Groupby effectively using information security assessment
services provided by external organizations tostrengthen monitoring of vulnerable areas andpromptly make improvements.

INTEGRATED REPORT 2023

84

GovernanceManagement (as of September 1, 2023)
Board of Directors
Career summary

July 1973	Founded Nidec Corporation,
Representative Director,
Chairman of the Board and President
Chief Executive Officer (CEO)October 2014	Representative Director,
Chairman of the Board and President
Chief Executive Officer (CEO)June 2018	Representative Director and Chairman
Chief Executive Officer (CEO)June 2021	Representative Director and Chairman(current position)
April 2022	Chief Executive Officer (CEO)(current position)

July 1973	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 and SeniorVice President
April 1996	Member of the Board of Directors and First
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)

Significant concurrent positions

Chairman of the Board, Nagamori Gakuen Educational
Foundation

Shigenobu Nagamori

Hiroshi Kobe

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

Significant concurrent positions

Representative Director and President
Chief Operating Officer (COO)
Nominating Committee Member
Remuneration Committee Chairperson
Sustainability Committee Member(Born on August 28, 1944)

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

Director of NIDEC ADVANCED MOTOR CORPORATION
Director of NIDEC GLOBAL SERVICE CORPORATION(Born on March 28, 1949)

Number of the Company’s
shares possessed:

948,000

Career summary

April 1977
The Ministry of Finance of Japan
July 1983	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 and Development(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 and Regional
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)

Kazuya Murakami

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

Auditor of NIDEC ADVANCE TECHNOLOGY CORPORATION
Auditor of NIDEC DRIVE TECHNOLOGY CORPORATION
Auditor of NIDEC TECHNO MOTOR
Auditor of NIDEC MACHINE TOOL CORPORATION
Auditor of NIDEC OKK CORPORATION
Auditor of NIDEC GLOBAL SERVICE CORPORATION
Auditor of NIDEC MACHINERY CORPORATION

April 1983	The Ministry of International Trade and Industryof Japan (currently the Ministry of Economy, Tradeand 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, Trade andEconomic Cooperation Bureau
August 2006	Counsellor, Minister’s Secretariat, the Ministry ofAgriculture, Forestry and Fisheries of Japan
July 2008	Counsellor, Cabinet Secretariat (Assistant Chief
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)

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:

Significant concurrent positions

1,000

Shinichi Sato

Outside Member of the Board of
Directors
Remuneration Committee Member(Born on November 4, 1956)

Number of the Company’s
shares possessed:

—Significant concurrent positions

Executive Consultant, Suntory Holdings Limited

85

NIDEC CORPORATION

Auditor of NIDEC INSTRUMENTS CORPORATION
Auditor of NIDEC MOBILITY CORPORATION
Auditor of NIDEC COMPONENTS CORPORATION
Auditor of NIDEC POWERTRAIN SYSTEMS CORPORATION
Auditor of NIDEC PRECISION CORPORATION
Auditor of NIDEC ELESYS CORPORATION
Auditor of NIDEC ADVANCED MOTOR CORPORATION

Significant concurrent positions
Professor, Graduate School of Law, Osaka Metropolitan
University

Takako Sakai

Outside Member of the Board of
Directors
Nominating Committee Member
Remuneration Committee Member
Sustainability Committee Member(Born on August 28, 1972)
Number of the Company’s
shares possessed:

Yayoi Komatsu

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

Number of the Company’s
shares possessed:

0

Significant concurrent positions

Executive Director, The National Museum of Modern Art, Tokyo

April 1990	Research Associate, Faculty of Law, Tohoku
University
April 1995	Assistant Professor, Faculty of Law, Okayama
University
April 2003	Assistant Professor, Graduate School of Law,
Kyoto University
April 2006	Professor, Graduate School of Law, Kyoto
University (current position)
June 2020	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
MemberNominating Committee Member(Born on February 12, 1967)

Number of the Company’s
shares possessed:—0

Career summary

Junko Watanabe

Outside Member of the Board of
Directors
Audit and Supervisory Committee
MemberSustainability Committee Member(Born on October 17, 1965)

Number of the Company’s
shares possessed:

—April 1994	Research Associate, Faculty of Economics,
Hokkaido University
April 1997	Research Associate, Graduate School of
Economics & Faculty of Economics, The
University of Tokyo
April 1998	Assistant Professor, Faculty of Humanities &Social Sciences, Shizuoka University
October 2002	Assistant Professor, Department of
Human Communication, Faculty ofElectro-Communications, The University ofElectro-Communications
April 2004	Assistant Professor, Graduate School of
Economics & Faculty of Economics, Kyoto
University
March 2005	Visiting Scholar, The University of Paris
7 - Denis Diderot (France)
July 2011	Received a Ph.D. in Economics from Kyoto
University
October 2011	Visiting Scholar, Edwin O. Reischauer
Institute of Japanese Studies, Harvard
University
April 2012	Professor, Graduate School of Economics& Faculty of Economics, Kyoto University(current position)
August 2012	Visiting Associate Professor, Graduate
School of Economics & Faculty of
Economics, The University of Tokyo
June 2016	Member of the Audit & Supervisory Board(External), Nidec Corporation April 2020
Outside Member of the Board of Directors(Audit and Supervisory Committee Member),Morozoff Limited (current position)
October 2022	Outside Member of the Board of Directors
who is an Audit and Supervisory Committee
Member, Nidec Corporation (current position)

Career summary

April 1998	Registered as attorney-at-law, the Osaka
Bar Association Joined Nakamoto &Partners
November 2005	Registered as attorney-at-law in theState of New York, USA
April 2009	Partner, Nakamoto & Partners(current position)
October 2015	Outside Member of the Board of
Directors, Sanesu Co., Ltd.
June 2020	Outside Member of the Board of
Directors, Nitta Corporation(current position)
	Outside Member of the Board of
Directors (Audit and Supervisory
Committee Member), Nitto Fuji Flour
Milling Co., LTD. (current position)
Jun 2023	Outside Members of the Board of
Directors who are Audit and Supervisory
Committee Members, Nidec Corporation(current position)

Significant concurrent positions

Hiroe ToyoshimaPartner, Nakamoto & Partners
Outside Member of the Board of Directors,
Nitta Corporation
Outside Member of the Board of Directors(Audit and Supervisory Committee Member),
Nitto Fuji Flour Milling Co., LTD.

Outside Member of the Board of
Directors
Audit and Supervisory Committee
MemberSustainability Committee Member(Born on September 28, 1967)

Number of the Company’s
shares possessed:

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

Career summary

April 1981	The Ministry of Education, Science, Sports
and Culture of Japan (currently the Ministryof Education, Culture, Sports, Science andTechnology 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,
the Cultural Properties Department,
the Agency for Cultural Affairs
April 2007	Director, the Director-General’s Secretariat, theAgency 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 Museumof ArtAugust 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 Museum ofModern Art, Tokyo (current position)
June 2022	Outside Member of the Board of Directors,
Nidec Corporation (current position)

Career summary

April 2002	Research Associate, Graduate School ofLaw, Kyoto University
April 2003	Lecturer, Graduate School of Economics,
Osaka Prefecture University
March 2007	Completed Doctoral Program at Graduate
School of Kyoto University and received aDoctor of Laws (LL. D.)
October 2007	Associate Professor, Graduate School of
Economics, Osaka Prefecture University
April 2018	Professor, Graduate School of Economics,
Osaka Prefecture University
June 2020	Outside Member of the Board of
Directors who is an Audit and Supervisory
Committee Member
April 2022	Professor, Graduate School of Law, Osaka
Metropolitan University (current position)
June 2022	Outside Member of the Board of Directors,
Nidec Corporation (current position)

Career summary

Career summary

April 1980
The Ministry of Finance of Japan (MOF)
July 1985	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
Ministry of Internal Affairs andCommunications)
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, theMinister’s Secretariat, the Ministry of
Finance
July 2009	Deputy Director-General, the Tax Bureau,
the Ministry of Finance
January 2010	Councilor, Cabinet Secretariat (AssistantChief 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)

Career summary

Materiality

Career summary

Vice Presidents
Toshihiko Koseki

Mitsuya Kishida

Yoshihisa Kitao

Tatsuya Nishimoto

Toshiyuki Otsuka

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

Michael Briggs

Valter Taranzano

Noboru Kaneko

Kazuya Hayafune

Hiroshi Onishi

Toru Takahashi

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Ryuji Omura

Akinobu Samura

Kazutsugu Igarashi Takamitsu Araki

Fumiaki Ushio

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Tomoko Hirata

Maki Okajima

Eiji Miyamoto

Junichi Nagai

Takashi Kishimae

Hiroyuki Fujita

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Shin Kishimoto

Tomonori Seta

Kazuo Nakagawa

Shuichiro Sori

Vice President

Vice President

Vice President

Vice President* The number of shares owned are rounded off to the nearest thousand.

INTEGRATED REPORT 2023

86

Financial/Non-financial Data
Financial Data
(FY)

U.S. GAAP
2013

IFRS
2014

2015

2016

2017

2018

2019

2020

2021

2022

Net sales

875,109

1,028,385

1,178,290

1,199,311

1,459,039

1,475,436

1,534,800

1,618,064

1,918,174

2,242,824

Operating profit

84,864110,939

117,662

139,366

165,903129,222

108,558

159,970

170,374

100,081

Profit before income taxes

84,460107,092

117,164

141,313

163,260

129,830

105,160

152,937

170,032

120,593

Profit attributable to owners of
the parent

56,27276,01589,945

111,007

130,834

109,960

58,459

121,945

135,759

45,003

CAPEX

40,03658,04281,89868,71890,841

120,555

132,926

88,911

98,580137,814

Depreciation

44,41351,44564,95059,737

68,69771,01687,80896,802

104,932

119,469

R&D

37,80845,17951,97852,80755,43862,912

78,63067,28078,015

81,337

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

2,872,789

Shareholders’ equity

517,971744,972

763,023

846,572

932,501

996,795

947,290

1,096,020

1,292,241

1,354,505

Operating cash flow

87,21991,875

147,659

129,853

175,568

170,233

168,049

219,156

94,994143,485

Investment cash flow

–63,178–81,230–95,377–211,476–113,915–160,844–311,513–100,568–112,597–164,943

Free cash flow

24,041

10,64552,282–81,623

61,6539,389–143,464

118,588–17,603–21,458

Financial cash flow

13,471–19,508

7,775

95,848–116,858–32,683

128,546–136,191–64,393–19,238

Total assets

Per-share information*1

Financial/Non-financial Data

(Millions of yen)

(Yen)

Profit (EPS)

103.41135.81151.52

187.14220.96186.4999.37

208.19232.4078.19

Dividends

25.00

35.00

40.00

42.50

47.50

52.50

57.50

60.00

65.00

70.00

Major financial indicators(%)

Operating profit ratio

9.7

10.8

10.0

11.6

11.4

8.8

7.1

9.9

8.9

4.5

Shareholders’ equity ratio

44.4

54.9

55.4

50.4

52.6

52.9

44.6

48.6

48.2

47.1

*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 FY2013.
*2 S
 tarting 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.

87

NIDEC CORPORATIONINTEGRATED REPORT 2023

88

Financial/Non-financial Data

Group Companies

Non-financial Data

Company name

E/ Environment*1(FY)

Total GHG emissions (kt-CO2)
Scope1 (kt-CO2)
Scope2 (Location-based, kt-CO2)
Scope2 (Market-based*2, kt-CO2)
Scope3 (kt-CO2)
Total energy consumption*3 (MWh)Non-renewable energy Fuel consumption (MWh)Non-renewable energy Steam, Heat and Cooling consumption (MWh)Total electricity consumption (MWh)Renewable energy electricity consumption (MWh)Renewable energy introduction ratio (%)
Total discharge of waste (including solids and liquids)*4 (t)Total discharge of waste (solid only)*4 (t)Recycled amount*5 (t)Final disposal amount*5 (t)Recycled ratio*5 (%)
Final disposal ratio*5 (t)Total Water Withdrawal*6 (Thousand m3)
Tap water · industrial water (Thousand m3)
GroundwaterRivers, ponds, lakes, rainwater (Thousand m3)
The sales ratio of environmentally contributing products (%)*7

2018

3,365

73
—
593
2,700
1,433,522
213,522—
1,220,000
34,4882.8—
97,61889,024
8,052
91.2
8,384

8,225
7,023

1,186
16
13.4

2019

2020

2021

2,934
62
—
577
2,295
1,403,437
161,437—
1,242,000
32,021
2.6—
100,546
90,910
9,636
90.4
9,691
8,064

2,858
60
—
511
2,287
1,448,027
268,027—
1,180,000
64,0005.4—
101,380
91,842
8,947

4,750
57
—
457
4,236
1,396,802
265,802—
1,131,000
120,000
10.6
124,997
111,993
101,812
10,180

7,218

7,055

1,103
15
14.4

1,102
10

6,946

90.6
11,011

90.9
11,473

6,106

6,088

11.5

12.5

958
9

S/ Society
2018

2019

2020

2021

89

NIDEC CORPORATION

2022

86
108,906
—
—
—
2,794
19.7
32
5.0
1
2.4
1.98
119,676
42.8
16.2
61.3
0.4
41
40
2
1.9
89.3
112

93
117,206
50.6
25.9
0.78
2,756
20.4
34
5.5
1
2.4
2.19
110,077
39.9
16.3
64.5
0.4
30
41
7
8.0
90.0
102

132
112,551
49.1
28.2
0.66
2,568
20.6
33
5.7
3
7.9
2.24
112,162
43.7
11.2
56.5
0.1
24
25
8
9.0
100
115

123
114,371
48.2
27.2
0.73
2,511
19.9
37
6.2
4
10.0
2.40
71,154
31.0
17.3
60.9
0.5
22
68
20
19.8
96.0
86

122
106,592
47.0
23.9
0.85
2,176
19.4
41
7.0
6
15.0
2.28
28,072
12.9
19.6
69.0
0.5
22
43
24
31.2
92.5
96

2018

2019

2020

2021

2022

G/ Governance*1 Data coverage ratio is a numerical value compared to sales. Data coverage rate for
FY2018: 63.0%, FY2019: 59.2%, FY2020: 58.7%, Data coverage rate for FY2021: 53.5%*2 From FY2022 report, the IEA emission factor by country is used. Before FY2021, use“Ministry of the Environment: List of Calculation Methods and Emission Factors in the
Calculation, Reporting and Publication System”.
*3 Unit changed (GJ→MWh). Values for FY2020 and FY2021 are recalculated values.
*4 From FY2022 report, the distinction between solid and liquid has been abolished.
*5 Before FY2021, only solid waste is calculated.
*6 Data for FY2020 and FY2021 have been revised.
*7 The products meet the requirements of the FTSE Green Revenues Classification
System.
*8 Eight companies overseas*9 In FY2022, the survey was conducted to cover 95.0% of all Nidec Group employees.

150,83771805
720
150,046
1,767,741
328,480
10,261
1,429,000
118,000
8.2
135,580—
83,81432,463
61.8
4,375
7,548
6,047
1,240
261
14.6
(FY)

CSR audits conducted by business partner(s) (times)*8
Employees (persons) (consolidated)
Ratio of female employees (%) (consolidated)*9
Ratio of female managers and officers*10 (%) (consolidated)*9
Rate of industrial accidents involving lost working time (consolidated)*11
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)
Employee training hours per person (hours)
Average monthly overtime hours (hours) (non-consolidated)
Percentage of annual paid leave taken (%) (non-consolidated)
Rate of industrial accidents involving lost working time*11 (non-consolidated)
Number of employees who have taken maternity leave (non-consolidated)
Number of employees who have taken childcare leave (non-consolidated)
Male employees (persons)
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)

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

2022

(FY)

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

9
2
5
55.6
2
22.2
49
80
66

10
1
6
60.0
5
50.0
50
78
64

*10 All levels of management, including junior, middle and senior level management andoutside board directors. Junior management: Employees falling under either of thefollowing supervisory roles, or those with a similar level of responsibility:(A) t ypically responsible for directing and executing the day-to-day operational
objectives of organizations, conveying the directions of higher level officials andmanagers 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.
*11 Calculation of consolidated data began from FY2019. Number of deaths and injuries
per 1 million hours worked in total.

Business activities

NIDEC INSTRUMENTS CORPORATION
https://www.nidec.com/en/nidec-instruments/

R&D, manufacturing and sales of Stepping motors, Motor drive units,
Industrial robots, Card readers, Precision plastic molds, Electric contacts andMusic box products

NIDEC ADVANCE TECHNOLOGY CORPORATION
https://www.nidec.com/en/nidec-advancetechnology/corporate/

R&D, manufacturing and sales of semiconductor package/PCB inspection
systems, optical inspection systems, FPD inspection systems, automatic
measurement/control systems and associated fixtures.

NIDEC DRIVE TECHNOLOGY CORPORATION
https://www.nidec.com/en/nidec-drivetechnology/

R&D, manufacturing and sales of power transmission drives, press machines,
control device, measuring, ceramic art equipment, and others.

NIDEC TECHNOMOTOR CORPORATION
https://www.nidec.com/en/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/en/nidec-mobility/

Marketing, development, manufacture and sales of automotive electriccomponents

NIDEC COMPONENTS CORPORATION
https://www.nidec-components.com/e/

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

NIDEC POWERTRAIN SYSTEMS CORPORATION
https://www.nidec.com/en/nidec-powertrainsystems/

Development, manufacture and sales of automobile parts and measuring
instruments

NIDEC PRECISION CORPORATION
https://www.nidec.com/en/nidec-precision/Development, manufacture and sales of optical devices, electronic devices,precision parts and dies, image devices, FA and industrial devices

NIDEC MACHINETOOL CORPORATION
https://www.nidec.com/en/nidec-machinetool/(1) D esign, manufacture, sales and consulting services associated swith
machine tools, cutting tools, and other related products.
(2) I nstallation, technical guidance, and after-sales services related to theabove products.

NIDEC ELESYS CORPORATION
https://www.nidec.com/en/nidec-elesys/

Development, manufacture and sales of automotive inverters and electronic
control devices for automotive bodies

NIDEC ADVANCED MOTOR CORPORATION
https://www.nidec.com/en/nidec-advancedmotor/

Development, manufacture and sales of small precision motors, fans, blowers,
sensors and motor application products for industrial and commercial use

NIDEC OKK CORPORATION
https://www.nidec.com/jp/nidec-okk/(1) D esign, manufacturing, and sale of machine tools (machining centers,
NC milling machines, general-purpose milling machines, and specializedmachine tools)(2) I nstalling, and providing technical Support and customer support for, theabove products.

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/en/nidec-machinery/

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

NIDEC MOTORS & ACTUATORS (GERMANY) GmbH
http://www.nidec-ma.com/

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 ELECTRIC MOTOR SERBIA d.o.o. Novi Sad
https://www.nidec.com/en/corporate/network/group/nidec-electric-motor-serbia/

Preparation for the factory manufacturing automotive motors andrelated products

NIDEC GPM GmbH
http://www.nidec-gpm.com/

R&D and manufacturing of water pumps, oil pumps and modules for the
automotive industry; wide range of OEM customers (passenger cars andcommercial vehicles)

NIDEC MOTOR CORPORATION
https://acim.nidec.com/motors/

R&D, manufacturing, and sales of industrial, commercial and appliance motors,
and control equipment

NIDEC GLOBAL APPLIANCE EUROPE SRL
https://www.nidec.com/en/corporate/network/group/nidec-global-appliance-europe/

R&D, manufacturing and sales of motors for home appliances (washingmachines, dryer machines, and dishwashers)

NIDEC ASI S.p.A.
https://www.nidec-industrial.com/

R&D, manufacturing and sales of mid- to large-sized industrial motors,
power generators, and low- to mid-voltage drives as well as development ofindustrial system and automation systems in the metal and power generation(regenerated energy) fields

Nidec Leroy-Somer Holding
http://www.leroy-somer.com/

R&D, manufacturing and sale of alternators, electric motors, geared motors,
variable speed drives, automation solutions and service offers for industry

NIDEC CONTROL TECHNIQUES LIMITED
http://www.controltechniques.com/

R&D, manufacturing, and sales of AC and DC variable speed drives, servos andpower conversion technologies for commercial and industrial applications

NIDEC GLOBAL APPLIANCE COMPRESSORES E SOLUCOES EMREFRIGERACAO LTDA
https://www.embraco.com

Engineering and manufacturing of household and commercial (merchandisers,
food retail & service, medical and special applications) refrigeration
compressors and condensing units

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

Development, manufacture and sales of thermal management devices

Corporate Information

ESG Data List
https://www.nidec.com/en/sustainability/principle/esg-list/* This table lists a selection of major group companies.

INTEGRATED REPORT 2023

90

Company Profile

Historical stock prices and trading volume
Stock price (yen)(As of March 31, 2023)

Trade name

NIDEC CORPORATION*

FoundedJuly 23, 1973

Location of Head Office

338 Kuzetonoshiro-cho, Minami-ku, Kyoto

Capital

JPY 87,784 million

Fiscal year end
Employees
Business sites in Japan

Trading volume (thousands of shares)
75,00012,00060,000Nidec (left axis)

TOPIX (left axis)

9,000

45,000March 316,000

30,000Nidec Corporation: 2,176
Consolidated: 106,592

3,000

15,000

Head Office, Tokyo Office, Central Technical Laboratory, Shiga Technical Center,
Nagano Technical Center, Nidec Research and Development Center,and Nidec Center for Industrial Science

Corporate website

TOPIX (points)

15,0000Mar. 2012

Mar. 2013

Mar. 2014

Mar. 2015

Mar. 2016

Mar. 2017

Mar. 2018

Mar. 2019

Mar. 2020

Mar. 2021

Mar. 2022

0*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 F
 igures 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. From April 1, 2022, the First Section of the Tokyo Stock Exchange was reorganized into Prime Market.

https://www.nidec.com/en/* On April 1, 2023, the Company’s Japanese name was changed from Nippon Densan Kabushikigaisha to Nidec Kabushikigaisha.

External Evaluation

Stock Information(As of March 31, 2023)

Share status
Number of shares
outstanding
Number ofshareholders

Shareholder mix

Japanese securities firms andother Japanese corporations

596,284,468

Treasury shares

8.24%(49,191,000 shares)

159,838

3.53%(21,059,000 shares)
Trust banks

Individuals and others
21.39%(127,597,000 shares)

22.32%(133,107,000 shares)

Number ofshares ownedbase

Foreign institutions

Other financial institutions

28.04%(167,204,000 shares)

16.45%(98,123,000 shares)* Figures less than one thousand in the number of shares owned are rounded off.

Number of shares owned

Holding ratio (%)(thousands)

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

84,576

14.70

Shigenobu Nagamori

49,473

8.60

Custody Bank of Japan, Ltd. (trust account)

29,980

5.21

The Bank of Kyoto, Ltd.

24,798

4.31

S.N. Kosan, LLC.

20,245

3.51

MUFG Bank, Ltd.

14,851

2.58

THE BANK OF NEW YORK MELLON 140042

14,105

2.45

Nippon Life Insurance Company

13,1592.28

Meiji Yasuda Life Insurance Company

12,804

2.22

SSBTC CLIENT OMNIBUS ACCOUNT

9,605

1.66

*1 Figures less than one thousand in the number of shares owned are rounded off.
*2 TheCompany’s holding of 21,059,236 treasury stock is excluded from the above major shareholders. The shareholding ratio was calculated excluding treasury stock.
Treasury stock do not include shares of the Company held by the BIP (Board Incentive Plan) Trust and the ESOP (Employee Stock Ownership Plan) Trust, but include a total of 3,531
fractional shares arising from the exchange of shares with NIDEC OKK CORPORATION with an effective date of March 1, 2023.

91

NIDEC CORPORATIONAwards and commendations

FTSE4Good Index Series

Nadeshiko Brand

Since 2018, Nidec has been included in the FTSE4Good IndexSeries, designed to measure the performance of companies
demonstrating excellent environmental, social and governance(ESG) practices.

Nidec was selected as a Nadeshiko Brand in FY2021 by
the Japan Ministry of Economy, Trade and Industry (METI)
and the Tokyo Stock Exchange (TSE).

ESG-themed brand

FTSE Blossom Japan Sector Relative Index

In the first “ESG brands” selection in 2012 at the Tokyo Stock Exchange, which
identifies themed brands for individual investors based on specific themes andindexes, Nidec was selected as an ESG-themed brand.

Since 2022, in addition to ESG evaluation, Nidec has been
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

In 2018, Nidec received a three-star rating (highest level) of“eruboshi” status granted by the Minister of Health, Labourand Welfare to companies that have made excellent efforts
related to the promotion of women’s participation andadvancement in the workplace.

FTSE Blossom Japan Index

Since 2018, Nidec has been included in the FTSE Blossom Japan
Index, an index that reflects the performance of Japanesecompanies demonstrating excellent ESG practices.

MSCI Japan Empowering Women (WIN)

Principal shareholders
Name

Inclusion in ESG indexes

Evaluation of IR activities

Since 2017, Nidec has been part of the MSCI Japan Empowering Women (WIN)index, which includes companies selected out of the top 700 brands in market
capitalization ranking (the MSCI Japan IMI Top 700 Index) based on their genderrelated diversity (women’s
active participation in theworkforce) in each industry.

Gomez IR Site Ranking 2022 Silver Award

Nidec received a Silver Award in the overall “Gomez IR Site Ranking 2022” publishedby Morningstar Japan K.K. In the electrical equipment industry ranking, Nidec wasranked 12th.

* 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 theexclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service
marks of MSCI or its affiliates.

Morningstar Japan ex-REIT Gender Diversity Tilt Index

Corporate Information(As of September 1, 2023)

Since 2023, Nidec has been included in the Morningstar Japan ex-REIT Gender
Diversity Tilt Index, an index that focuses on companies whose gender diversity
policies are embedded in their corporate culture and companies committed to equal
opportunities for their employees regardless of gender.

Nikko IR All Japanese Listed Companies’ Website Ranking

Nidec’s website was selected as a grade AAA site in the annual survey of all Japaneselisted companies’ websites conducted by Nikko Investor Relations Co., Ltd. in FY2022.

Daiwa IR Internet IR Commendation Award 2022

Nidec received the Commendation Award in the “Internet IR Award 2022” by Daiwa
Investor Relations Co., Ltd.

Award for Excellence in Corporate Disclosure

In 2022, Nidec was ranked 10th in the Electric/Precision section in 2022 Awards for
Excellence in Corporate Disclosure, sponsored by the Securities Analysts Associationof Japan.

Rating information
Announced

TargetLong-term Rating

Short-term Rating

Japan Credit Rating Agency, Ltd. (JCR)

Rating agency

December 2022

IssuerAA—

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

December 2022

IssuerAA–

a-1+

May 2023

IssuerA3—

Moody’s

INTEGRATED REPORT 2023

92