Aiming to become
the world’s leading
comprehensive
motor manufacturer

Integrated Report 2021

Global Challenges 1

Carbon Neutral
Society
Global CO2 emissions in 2018

Approx.

33.5

billion tons

Approximately 23% of the world’s carbon emissions come from transportation.
* International Energy Agency (IEA) report (2020)

Nidec’s founding mission isto provide comprehensive,
top-quality motor solutions wellcapable of making a globally
meaningful difference.

Extreme weather events occurring around the world today are widely assumed
to stem form global warming—a phenomenon caused by human-induced
greenhouse gases (GHGs) —of which 70% is attributed to CO2 emissions. The
Paris Agreement, a landmark international accord adopted in 2015, is pushingfor a strong global response pivotal in achieving carbon neutrality worldwide
by 2050. Given the fact that transportation accounts for about 23% of theworld’s carbon emissions, automotive decarbonization can play a huge role inmaking it happen.

Our initiatives

To combat global warming, the whole automotive industry is racing towardvehicle electrification. The number of new electric vehicles to be sold in 2030 is
expected to increase several-dozen-fold from 2020. In recent years, Nidec’s EV
traction motor systems, collectively known as E-Axle, have been powering an
increasing number of electric vehicles on the road, keeping our path to market
leadership aligned with the industry’s decarbonization goal.

01

E-Axle, an EV traction motor system

INTEGRATED REPORT 2021

NIDEC CORPORATION

Nidec is committed to addressing critical global
challenges at every stage of its business activities.

02

Global Challenges 2

Declining
Birthrateand Aging
Population

Global Challenges 3

Digitalization
Global data traffic in 2025

175

Reducer lineup

zettabytes* Materials for Intel Architecture Day 2020
* 1 zettabyte = 1 billion terabytes

A projected decrease in the working age population(15 to 64) in China

Approx.

170(Forecast 2020-2050)

million people

Servo motor

HDD motor* UN World Population Prospects 2019

NIDEC CORPORATION

Our initiatives

03

Industrial robots are drawing a great deal of attention as a viable solution tothis problem. Nidec places a strategic focus on the development of motors andreducers for arm robots used in a vast range of industrial fields.

The COVID-19 pandemic and associated national emergency procedures, including
lockdown restrictions, rapidly increased our reliance on various digital platforms,
leading to a boost in overall data traffic with more people getting online for
shopping, working and education purposes. Network data traffic will continue togrow as the Internet of Things (IoT) and artificial intelligence (AI) become woven
further into the fabric of society, smartphones catch on in emerging countries,
and 5G networks take hold across the world. Global data traffic is expected totriple between 2020 and 2025 to an estimated 175 zettabytes.

Our initiatives

Datacenters rely on a large quantity of hard disk drives (HDDs) for online storageand long-term archiving, collectively known as nearline storage. At the sametime, they are facing a pressing need for more effective thermal management toprevent their servers from overheating. Nidec’s HDD motors and cooling fan
systems come with mission-critical functionalities that fit the demanding
requirements of today’s datacenters.

INTEGRATED REPORT 2021

Declining birthrate and aging population are causing workforce demographics
to shrink in high GDP economies, including the U.S., China, Europe and Japan.
China, generally known as the “world’s factory,” is likely to be hardest hit,with its working age population projected to decline by approximately 170
million between 2020 and 2050. How to make up for the shortfall is the key tomaintaining productivity.

04

Table of Contents

Welcome to Nidec Integral Report 2021

Sustainable business growth takes hold when strategies align closely with solutions
to universal issues. That is a firm belief of mine and the common thread running

1 Cover Story

37 Materiality Initiatives
37 Environment
40 Products
42 Human Resources
46 Supply Chain
47 Corporate Governance5	Welcome to Nidec

Integral Report 2021

through our growth-oriented thinking.
to give a fresh insight into our historical, ongoing strengths and weaknesses in thecontext of the rapid paradigm shift now getting underway. Integrated Report
2021 provides financial and non-financial information that sets the scene for
Nidec’s sustainable growth and value creation going forward. It aims to help our
stakeholders stay informed of the progress on Nidec’s key initiatives, including
the outline of the new medium-term strategic goal Vision 2025, our technologicaland financial strategies, as well as a discussion on material ESG issues that may
have a particular impact on society and the company’s business sustainability.
We would be happy to see it facilitate active dialogue with our stakeholders.
Embedding stakeholder insights into all aspects of our operations will enable us to

7 Management Message

63 Business Strategies
63 Small Precision Motors
64 Automotive Products
65 Appliance, Commercial &Industrial Products
66 Other Products

		 07 Message from the Chairman
		 09 Message from the CEO

11 Nidec Corporation Profile
11 History of Nidec Corporation
13 Nidec’s Competitive Advantages
15 Business Operations
17 Performance Highlights
19 Value Creation Process
21 Nidec’s Materiality

67	Financial andnavigate and grow in ways consistent with stakeholder expectations even during
this period of unprecedented change and uncertainty.
This report has been created with reference to the International Integrated
Reporting Framework published by the Value Reporting Foundation (VRF) and
the Guidance for Collaborative Value Creation released by the Ministry of Economy,
Trade and Industry.
We hope this report gives you a good picture of our sustainability journey andlook forward to receiving your valuable, candid feedback.

Shigenobu Nagamori
Founder, Representative Director and Chairman

25 Management Strategy

Corporate Information
67
70
71
71
72

Financial/Non-financial Data
Group Companies
Company Profile
Stock Information
External Evaluation

25 Outline of the Medium-Term
Strategic Goal
29 Technology Strategy
31 Human Resources Strategy
33 Financial Strategy
35 Toward Achieving Sustainability

Reporting Period
April 1, 2020–March 31, 2021
This report includes information before and after the reporting period.

NIDEC CORPORATION

Reporting Guidelines

05- International Integrated Reporting Framework, Value Reporting Foundation (VRF)-G uidance 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- I SO (International Organization for Standardization) 26000 Guidance Standard on Social Responsibility
Disclaimer Regarding Forward-Looking Statements
The forecasts and forward-looking statements contained in this report are based on the information and forecasts available as of the date of publication of this report.
Please be aware that actual performance may vary significantly due to various uncertainties, such as market price conditions and exchange rate fluctuations. Nidec
undertakes no obligation to update any information regarding the forward-looking statements contained in this report.

INTEGRATED REPORT 2021

This is the launch issue of Nidec Integrated Report that reflects our motivation

06

Nidec’s Mission

Change in the Business
Management System

Implementation of
Necessary Reforms

in 1973, has grown to a company that achieved(Chief Executive Officer) to President Seki. His man-est opportunities since our founding. First of all, ourconsolidated net sales of 1,618.1 billion yen and anagement style is very similar to mine, and I believe he

EV traction motor system E-Axle has contributed tooperating profit of 160.0 billion yen in FY2020. We

is the right person to be the CEO in terms of quick

the trend of automotive electrification, which is said

will never remain satisfied with our growth to date,decision making, leadership and humanity. From now

to occur once every 100 years. Moreover, we see a

and will continue to accelerate our further growth,on, President Seki will assume responsibility for thedramatic expansion of the fields where our motor

aiming to become a company with consolidated net

business performance of the Group as CEO. As

technology can provide solutions to global issues,

sales of 10 trillion yen by FY2030.

Representative Director and Chairman, I will continue

represented by the Five Big Waves.* In addition toto participate in the important management decision-

seizing such opportunities, we will not hesitate toues to grow for the next 100 years and beyond.

making process of the Nidec Group, supporting

make the necessary reforms to make Nidec a global

I believe that recognizing Nidec’s mission and thePresident and CEO Seki. I will also put even morecompany that continues to grow for the next 100

significance of its existence will be important for oureffort into the work that I am supposed to as theyears and beyond. We have already implemented

further growth. Keeping in mind again its mission,founder. I will work on my duties with more passion

the necessary reforms for the sustainable growthwhich is to contribute to the Earth by producing thethan ever before, including ensuring that our missionof the company, including the declaration ofhighest quality motors in the world, and the signifi-

statement is well understood by the management

achievement of carbon neutrality, personnel systemcance of its existence, which is to provide products

teams and employees, examining new M&A deals,

reforms (change in the appraisal system to improveand solutions required by society, we will work

improving management after M&A, and dealing withproductivity, transition to a job-based personnel

together as a group toward our growth.

long-term business management issues.

system, etc.), and the enhancement of the

Nidec will celebrate its 50th anniversary in 2023.
Nidec, which I established with my three colleagues

We aim to become a global company that contin-

In the first half of FY2021, the business environ-

In June 2021, I handed over my position as CEO

A change in the business management system

It can be said that we are currently facing the great-

governance system (transition to a company

ment surrounding our company was not smooth,

does not produce results overnight. It takes time towith an Audit and Supervisory Committee and themainly due to a drastic decrease in the operation

learn the management philosophy of Nidec, which

establishment of the Remuneration Committee).

rate of our production site in Vietnam, which was

has continued to grow for 48 years since its foun-

Our business environment is changing day by day.

caused by the spread of the COVID-19 pandemic.

dation. As an assistant to the CEO, I will do myUnder these circumstances, we will continue to

It is quite possible that we will face such adversity

utmost to support President Seki until he learns

steadily implement the necessary reforms, keeping

again. I recognize that it is extremely important for

Nidec’s management style and takes control ofin mind the spirit that a company that does not

us to return to the starting point of Nidec andbusiness management.

change will decline, as conveyed by the quotation:

continue to take on challenges, while always thinking

I expect that he will grow further as the leader ofabout “How we can do it” and “How we tackle

Nidec by learning by himself that there is a goodchallenges and go through what others think they

chance for Nidec to grow in tough times when wecannot do” without using adversity as an excuse,face adversity in our business, and that difficult

so that we can continue to fulfill Nidec’s mission.

circumstances will sustain our growth.

Management Message

Aiming to become a global company that
continues to grow for the next 100 years and beyond“A snake that doesn’t shed its skin will die.”*See pages 19 and 20.

December 2021

Shigenobu Nagamori
Founder, Representative Director and Chairman

INTEGRATED REPORT 2021

Message from the Chairman

08

Striving to achieve consolidated net sales of 10 trillion yen
On the Inauguration of CEO
At the general meeting of shareholders in June
2021, I was appointed as CEO in place of the

In July 2021, we announced the new medium-termfounder and Chairman Nagamori. Although I havestrategic goal Vision 2025, in which we plan to

become CEO, I will never stop aiming for lofty goals

achieve consolidated net sales of two trillion yen,for growth, which Chairman Nagamori has continued

which was the target value in the former medium-to pursue since the company was founded.

term strategic goal “Vision 2020,” by FY2022, andTo achieve the new medium-term strategic goalturing. We have begun to consider collaboration
with the Hon Hai Group in Taiwan, which is theworld’s largest electronics manufacturing service(EMS) company. We will accurately grasp the big
waves of change in the automotive industry andfurther accelerate the growth of our business.

(one trillion yen is expected to be gained throughESG Management

achieving consolidated net sales of 10 trillion yen by

new M&A deals). By shifting our business portfolio

We recognize that ESG management is an important

FY2030, I will strive in my daily work while making

to high-growth fields, represented by the EV trac-

element for the sustainable growth of Nidec, andthe most of my experience and remaining humble

tion motor system E-Axle in the automotive busi-

we have decided to incorporate it into the goals of

to learn.

ness, we will achieve our goals of consolidated net

Vision 2025. As actions to address climate change,

sales of 10 trillion yen by FY2030. In Vision 2025, we

which is one of the most important ESG issues, wehave set not only numerical targets but also ESG

have set two goals: (1) achieving carbon neutrality

targets, including declaring the achievement offor business activities (Scope 1 and 2) by FY2040,

carbon neutrality by FY2040. Recognizing that ESG

and (2) laying out a plan to reduce CO2 emissions inmanagement is the core element that determines

the supply chain (Scope 3) by FY2025. Regarding

Nidec’s sustainability and growth potential, we will

the personnel system, we changed the appraisal

steadily advance reforms.

system in FY2020. For the governance system, we

At the same time as the announcement of thefinancial results for the 2nd Quarter of FY2021, werevised our business forecasts upward for this fiscal
year. The new business forecasts are 1,800 billion
yen for consolidated net sales and 190 billion yen

NIDEC CORPORATION

consolidated net sales of four trillion yen by FY2025

industries, and the acceleration of fabless manufac-

Vision 2025, which is an intermediate goal toward

Business Environment in
FY202109

New Medium-Term Strategic
Goal Vision 2025

for operating profit. In the first half of this fiscal

Automotive Business

year, the business environment was severe for us

To achieve the new medium-term strategic goal

due to a drastic decrease in the operation rate of

Vision 2025, high growth in the automotive

our production site in Vietnam, which was caused bybusiness will be essential. We have already received

the spread of the COVID-19 pandemic, production

orders for 3.5 million units of E-Axle, an EV traction

adjustment by customers, and the rising prices ofmotor system, for FY2025, and we expect thatraw materials. I recognize that our business envi-

orders will continue to increase in the future. Withronment will be still challenging in the second half

the tightening of environmental regulations aroundof this fiscal year. Without using adversity in our

the world, the EV market is expected to expand to abusiness environment as an excuse, we will returnmarket of tens of millions of vehicles annually in theto the basic spirit of Nidec, “Do it now; do it without

2030s. Consequently, major structural changes arehesitation; do it until completed,” and make every

occurring, including the rise of emerging EV manu-

effort to achieve our goals.

facturers, entry into the EV market from different

shifted to a company with an Audit and Supervisory
Committee in June 2020 and established the Remuneration Committee in February 2021. Thus, we will
steadily improve the ESG management system.
December 2021

Jun Seki
Representative Director and President(Chief Executive Officer)

Management Message

Message from the CEOHistory of Nidec Corporation

2030:

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

Consolidated sales target:

2025:

10 trillion yen

Consolidated sales target:

4 trillion yen

As the world’s leading comprehensive motor manufacturer,
Nidec has achieved continuous growth through businessdiversification and by continuing to meet the needs of society.

2012:

Implemented structural reforms and shifted
growth focus to automotive, appliance, andcommercial and industrial products.
Started production of the E-Axle traction
motor system for electric vehicles.

Nidec’s share of the global HDD motor market
reaches 90%.

2000:
1979:

Started production of HDD motors.

New medium-term
strategic goal

Vision 2025

2020:

Launched production of HDD motors that use
FDB (Fluid Dynamic Bearing) technology andautomotive electric power steering motors.

Nidec Corporation Profile

2019:

1989:

Consolidated sales exceed

1.6 trillion yen

2014:
Consolidated sales exceed

Nippon Densan Corporation (now Nidec) established.
1973

1980

NIDEC CORPORATION

11

Consolidated sales exceed

100 billion yen

500 billion yen

2000

Social trends

Takeoff and expansion of
the PC market

In front of the prefabricated shed where thecompany started(Nagamori, now Representative Director andChairman, lower left)

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 in his school days. However, thebrushless DC motor market was still small in those days, and brushless DC
motors were used only for limited applications such as fish finders.
At the request of an electric equipment manufacture in the United States,
Nidec developed a direct-drive*1 motor for hard disc drives (HDDs) using brushless
DC technology, and successfully launched mass production in 1979. Nidec’s directdrive brushless DC motor enabled miniaturization and high storage capacity of
HDDs, and the HDD rapidly became widespread as a computer storage device.
Since then, brushless DC motors have been the pillar of Nidec’s business. As theworld’s No.1 manufacturer of brushless DC motors, Nidec has established adominant position in a broad range of markets from IT and automotive devices
to home appliances.
Hard disc

Consolidated sales exceed

1981-2000

The big dream of four men started ina small prefabricated shed
On July 23, 1973, Shigenobu Nagamori,
who was then 28 years old and who now
serves as Representative Director andChairman, established Nippon Densan
Corporation (now Nidec Corporation) withthree friends in Nishikyo-ku, Kyoto. With
the aspiration of “becoming No. 1 in theworld,” the four young men started to
manufacture and sell small AC motors.
Mr. Nagamori flew to the United States, where
he visited promising enterprises without
appointments to cultivate new customers.

2005:

1990

1973-1980:

Spindle (precisionrotating axis)

Built-in motor
Motor

Belt drive method

Spindle (precisionrotating axis)

Direct drive method2010

2001-2010
Social trends

Spread of the Internet andemergence of new digital devices

2020

2011-20202021Progress ofdecarbonization andan aging population
with a lower birthrate

Nidec becomes the world’s
top HDD motor manufacturer

Strengthening the HDD motor
business and promoting
business diversification

Growing into a global
comprehensive motor
manufacturer through M&As

In 2001, Nidec was listed on the New York Stock
Exchange. In 2003, construction of the company’s
Head Office and Central Technical Laboratorybuilding was completed in Minami-ku in the cityof Kyoto. To meet the increasing demand for
HDDs with higher density and capacity, Nidec
introduced fluid dynamic bearing (FDB) technology*2 and in 2000, launched mass productionof HDD spindle motors that use FDBs. Having
succeeded in shifting to this new technology,
Nidec has firmly established its position as theworld’s top HDD motor manufacturer.
In the meantime, Nidec strengthened its
business of mid-sized motors used in automobiles, home appliances, and commercial andindustrial equipment, thereby diversifying its
business portfolio. Nidec launched the productionof motors for electric power steering in 2000,
and also expanded its motor business, focusing
on motors for home appliances such as air
conditioners, cleaners, washing machines, andmotors for water supply pumps.
With the launch of the first smartphone in2007 and the first tablet in 2010, global shipmentsof PCs and HDDs thereafter declined.

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 technologicalinnovation in manufacturing. In the meantime,against the background of decreased demandfor HDD motors, Nidec conducted major
structural reforms, shifting its growth focus
to automotive, appliance, and commercial
and industrial products. At the same time, Nidec
conducted many M&As with companies thathave strengths in these fields. In FY2017, salesof 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 a wide variety of motors
ranging from micro-size to large, which are usedin various industrial fields.
Looking ahead to the decarbonization
trend, Nidec developed an EV traction motor
system called E-Axle and launched its mass
production in 2019.

*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
from the bearings and rotates it smoothly. Although ballbearings were used conventionally, low noise and low
vibration have been achieved by shifting to FDBs.

(Fiscal Year)

Permeation of smart devices into
people’s everyday lives and increased
awareness of climate change
Nidec’s initiatives*1 Belt drive method and direct drive method
In those days, AC motors were used to drive HDDs, andthe belt drive method, which uses a belt to spin thespindle (precision rotation axis), was the mainstream.
Belt-drive HDDs were used mainly as storage devices forlarge computers. In order to spread computers to ordinary
people, it was essential to miniaturize and increase thestorage capacity of HDDs, and what made this possible
was the direct drive method, which integrates the spindle
and motor in a single unit. Nidec played a critical role indeveloping and commercializing a direct drive spindle
motor for HDDs.

2030

Social trends

Nidec’s initiatives

In 1983, business-use personal computers (PCs)equipped with HDDs capable of high-speed,
random processing were released in the
United States, and PC demand expanded
rapidly. In response to the miniaturization ofPCs, Nidec, which had produced motors for5.25-inch HDDs from 1981, launched the production of 3.5-inch and 2.5-inch HDD motors in1984 and 1988, respectively. In 1989, Nidec
acquired a competitor called Shinano Tokki Co.,
Ltd., 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. Furthermore, Nidec developed
a comprehensive family of small precision
motors for IT equipment, whose market was
growing. In 1998, Nidec was listed on the firstsection of the Tokyo Stock Exchange.

2025

Social trends

Nidec’s initiatives

Hard discBelt

1 trillion yen

1997:

Nidec’s initiatives

Becoming a
growth company
that can responddynamically toenvironmental
changesNidec is striving to provide
solutions to common issues ofhumankind in five areas thatalign with global mega trends:“automotive electrification,”“expansion of robot applications,” “home appliances
driven by brushless DC motors,”“manpower-saving in agriculture and logistics,” and“spread of 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 Neutral Declaration.”

INTEGRATED REPORT 2021

1973:

12

Business Strategy

Nidec’s DNA

Business strategies that distinguish Nidec from other companies

Corporate culture that turns adversity into opportunity for growth

Q. W hat is the core business strategy that has supported and will

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

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 make advance investments before theoccurrence of demand for a product and capture amajority market share when the demand occurs. After

A2.

that, we drive down costs to keep our competitors atbay and create a situation where we have an advantage
over our competitors. By using this strategy, Nidec
has captured the world’s top share for many products,
including HDD motors. Given the fact that oligopolies
involving a few big companies are found in manyindustries, the strategy of “pursuing No. 1 global market
share” is perfectly rational.

Speedy management

Speed is Nidec’s greatest weapon. Make a decision andtake action as quickly as possible—this is another pillarof 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 sizeof the motor by 30%.” For automotive products, theA3.

lead time is usually three to four years, but we continue
to work at the same kind of speed as when we developedthat motor for 3M. In the case of the E-Axle traction
motor system for electric vehicles, for which we received
orders from the Guangzhou Automobile Group in 2017,
we commenced mass-production from zero—no plant,
no facilities and no people—in only about 16 months.
Nidec clearly practices speedy management.

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 takerisks and your market entry is delayed, then you will fallbehind 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 aremaking advance investments without hesitation andworking to establish a production system for a traction
motor system for EVs, whose demand is expected to
grow rapidly in and after 2025.

NIDEC CORPORATION

Abundant management resources that support the company’s business strategies

13

1. Numerous products with the largest market share in the industry (Financial foundation)
2. Over 110,000 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)

sees 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 “Passion, enthusiasm and tenacity”
Gushing passion, welling enthusiasm, and tenacitythat fights against difficulties—these are the threecore principles that form the foundation of everything
we do at Nidec.
2 “Work hard and smart”
Work hard and smart to produce output that cannot be
achieved just by working in an ordinary way.

A2.

Corporate culture instilled throughout the organization

Nidec’s corporate culture is not just for the management.
In the WPR®* Project, which was launched in 2009, thousands of ideas has been submitted from frontline workers
on the manufacturing floor for cost reduction and efficiency
improvement. These ideas have become a big driving
force for the progress of the project. Nidec’s growth isA3.

3 “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.
Nidec has achieved continuous growth since its foundation on July 23, 1973. This has been possible only becauseof 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 towhen we face difficulties.

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.

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 plantfor 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 bytransforming adversity into opportunity. When sales fellby 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 aresult, the company managed to maintain operating profit
at around the break-even point in the fourth quarter ofthe 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 lastplace,” and “A snake that doesn’t shed its skin will die,” pursuit of the world’s No. 1 position
for continuous growth has been upheld since Nidec’s founding and is built into the DNA of
the company.
Only high-ranking companies have been able to survive in many industries, and there aresome 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 2021

continue to support Nidec’s growth journey from its founding to
the present, and from the present to the future?

Nidec Corporation Profile

Nidec’s Competitive Advantages

14

Business Operations

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

Consolidated Net Sales by Product GroupElectronic &Optical Components

Others329.3 billion yen
20.4%
26.8 billion yen
1.7%

Machinery
Shutters for
digital cameras

GermanyHigh precision reduction
gears for robots
Tactile devices

1,618.1

New-type
sensorfusion units

Air-conditioner motors

1,618.1 billion yen

333.4 billion yen
20.6%

Japan

128.3 billion yen
7.9%

Driving motors

billion yen

Household refrigerator compressors

United States

Consolidated net sales (for FY2020)

ThailandConsolidated net sales(for FY2020)
Blade pitch control motors

428.9 billion yen
26.5%

102.3 billion yen
6.3%

Other small
precision motors

HDD
motorsChina

Singapore

Small Precision Motors

OthersConsolidated Sales by Region*

Nidec Corporation Profile

Nidec offers a wide variety of motors ranging from precision small to super-large, as well as applied
products and services in IT, office automation, home appliances, automobiles, commercial andindustrial systems, environment and energy, and many other fields. We will contribute to theenhancement of people’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.

269.0 billion yen
16.6%* Based on the countries where consolidated Group companies selling products toexternal customers are locatedElectric power
steering motors

Business Sites

E-Axle electric vehicle
traction motor system

Nidec Group operates globally with business sites in 43 countries/regions.
Appliance, and Commercial
and Industrial Products

Automotive Products

NIDEC CORPORATION

15

Net sales (Billions of Yen)

Operating profit (Billions of Yen)

Operating profit ratio (%)

Small precision motors

443.6

66.9

15

Number of group companies

Number of employees

Automotive products

358.1

19.5

5

 ppliance, and commercial andA
industrial products

601.6

53.0

9

Machinery

150.6

26.4

18

334

112,551

Electronic & optical components

60.8

6.3

10

Others

3.4

0.4

12

INTEGRATED REPORT 2021

FY2020
Product group1016

Elimination or corporate
Total

–12.6
1,618.1

160.0

Number of countries/
regions with business sites

43(as of March 31, 2021)

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

(Millions of Yen)

2,000,000

200,000

1,618,064
1,459,039

1,500,000

1,475,436

159,970

165,9031,534,800

160,000

11.6

120,000

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

(t)

20

5,000

12,0004,285
16139,366

1,199,311

Greenhouse gas (GHG) emissions*2
(%)

4,000

3,365

129,22211.4

9.9

108,558

12

2,854

3,000

8.8

1,000,000
80,000500,000

6,000

7.1

40,000

8

2,000

4

1,000

2,176

2018

2017

2016

2020

2019

0

(FY)

2016

2017

2018

2019

2020

(FY)

0

0

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

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

150,000

208.19130,834 220.96

120,000 111,007 187.14

Scope 1

(Millions of Yen)

250

2,500,000

2,256,024

121,945

88

612

92

2016

2017

Scope 2

Scope 3

593
2018

577
2019

200

90,000150

2,000,000

1,500,000

1,678,997
50.4

1,773,199

1,884,008

52.6

100

2020

0

(FY)

2016

0

2016

2017

2020

2019

2018

(FY)

50

500,000

00(persons)(%)

100

150,000

80

120,000

100

107,062

107,554

108,906

90,000117,206

50.6

100

60

112,551
80

49.1

96.3

34
2

60

28.2

60,000

Profit attributable to owners of the parent (left axis)
Earnings per share (EPS) (right axis)

2019

2020

(FY)

0

0

2016

2017

2018

2019

2020

(FY)

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

0

15

0

90.0

100

40
2

41

75

7

25
22
1

40

20

89.3

50

8

32

21

38

34

2016

2017

2018

2019

25

17
2020

0

(FY)

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

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

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

(Millions of Yen)

(%)

(%)

(persons)(%)

100,000

10

80

10

200,000

219,156
175,568

129,853

170,233

168,049

118,588

61,653100,000–100,000–200,000–160,844 –143,464

40,000–100,568

67,280855,438
3.8

5.1
4.3

61.3

61.4

61.3

64.5

56.5

4.2

Number of directors

8

60

6

6

4

2

20,0007

2017

Cash flow from operating activities
Free cash flow

2018

2019

2020

Cash flow from investing activities

(FY)

0

2016

2017

2018

2019

2020

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 FY2016.
*2 Target sites: 88 companies*3 Calculation of consolidated data began from the FY2019 survey; 87.9% of employees of consolidated Group companies were surveyed.

2

8

8

2

2

2

4
20

28.6

2

14.3

0

2016

–311,513
2016

9

9

100

5

80

55.6
60

40

–211,476–300,000–400,000

52,807
4.4–113,915

Acquisition rate of annual paid leave (non-consolidated)

62,91260,000–81,623

78,63080,0009,389

0NIDEC CORPORATION

2018

30,000Total assets (left axis)
Shareholders’ equity ratio (right axis)

300,000

17

2017

20

97.8

45

30
40

2016

(FY)

(persons)(%)

25.9
30,000

2018

(%)

60

1,000,000

2017

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

44.6

58,459 99.37
60,000

48.6

52.9

2020

3,000

60

62

2,122,493

109,960 186.49

2019

5,405

2,287

2,295

73

5,029

Number of employees (consolidated) / Female employee
ratio (consolidated*3) / Ratio of managerial and director
positions*4 held by women (consolidated*3)

Total assets / Shareholders’ equity ratio
(Yen)

2,700

511
591

0

3,582

8,947

8,052

9,000

2,859

2,934

9,636

(FY)

0

0

2016

2017

2018

2019

2020

(FY)

22.2

25.0

25.0

22.2

20

11.1

2017

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

40

0.0

0.0

2018

2019

2020

(FY) 0Female director ratio (right axis)*4 Managerial positions of section chief level or higher, and executive officers. Directors or auditors who concurrently serve as executive officers are included among executive officers.
Department manager 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 2021

Net sales

Nidec Corporation Profile

Financial Information

18

OUTPUTOUTCOME & IMPACT

Business strategies

Medium-Term
Strategic Goal
Vision 2025

Nidec’s
product group

Providing solutions
to global challenges

1 Pursuit of No. 1 global
market share
2 Speedy management
3 Risk taking

Corporate culture

Five Big Waves

1 Existence of a corporate
culture that forms the basisof all business activities
2 Corporate culture instilled
throughout the organization
3 Viewing adversity as anopportunity

1 Carbon neutral

society

2 Power saving andpost-COVID-19
pandemicsavingexplosion

The Five Big Waves are concepts
that are subdivided from the threesocial issues described in pages
1 to 4 (1. Carbon neutral society
2. Declining birthrate and aging
population, 3. Digitalization) fromthe perspective of the Company’sbusiness opportunities.

Management resources
1 Financial foundation(as of March 31, 2021)

Consolidated total assets:

2,256,067 million yen

Shareholders’ equity ratio:

NIDEC CORPORATION

48.6%

2 Human resource foundation(as of March 31, 2021)

Consolidated number of employees:

112,551



3 Production foundation(as of March 31, 2021)

More than 200
production bases in 43
countries or regions

P. 1-419

Consolidated sales:

4 trillion yen

ROIC:
Productivity: DoubleBrushless DC motors

sales and profit per
employee comparedto FY2020 levels

ESG targets for FY2025
1 Address social issues withthe accumulated skills ofcreating the world’s firstand No. 1 product2 Promote ESG management
centered on carbon
neutrality

Providing reducer modules
for cooperative robots
Reducer modules

Fan motors
Vapor chambers	Achieve carbon neutrality
in business activities by
FY2040 (Scope 1, 2)

3 Strengthen unified
organization of Nidec(“One Nidec”) and its
governance

Nearline HDD motors(as of September 30, 2021)

Impairment of goodwill from M&A:

0 cases(as of September 30, 2021)

 . 21-24
P“Nidec’s Materiality”
P. 25-28“Outline of the Medium-Term
Strategic Goal”

 ontributing toCmeeting demand for
manpower saving tocope with the labor
shortage
Providing heat management
products for electronic devices
such as smartphones and PCs

 ontributing toCthe solution ofissues relating to
the large amount ofheat generated by
5G devices
Providing key components(spindle motors) for nearline
HDDs for data centers

Number of companies that
Nidec has acquired through M&A:

67

Providing brushless DC
motors for home appliances ontributing toCenergy saving

4 Growth foundation

Providing the E-Axle
traction motor systemfor electric vehicles

 ontributing toCdecarbonization

15%

INPUT

solutions

5 Digital data

E-Axle / Automotive motors

P. 13-14 “Nidec’s Competitive Advantages”

3 Manpower
4 5G & Thermal

Financial targets for
FY2025

 . 63-66
P“Business
Strategies”

P. 15-16 “Business Operations”

 ontributing toCaddressing the
explosive increase indigital data

Nidec Corporation Profile

STRATEGY

INTEGRATED REPORT 2021

COMPETITIVE ADVANTAGE

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

Nidec will fulfill its mission of “contributing to the world by producing the highest quality motors in the world”
by providing solutions to the common issues of humankind through its business activities.

Business activities

Value Creation Process20

Nidec’s Materiality

Steps to identify materiality (material issues) to be prioritized
STEP

1

Understanding and organizing material issues

Results of questionnaire survey of investors

As a result of conducting a questionnaire survey targeting institutional investors in Japan,
Asia, Europe, and the U.S. as part of the materiality identification process, we received thefollowing opinions in addition to a quantitative evaluation for each candidate item. These
opinions were referred to when identifying materiality.

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

Based on the Global Reporting Initiative (GRI) Standards, the Sustainability AccountingStandards Board (SASB) Standards, the items on which ESG evaluation institutions place
importance, social issues, and our business environment, we have organized the items	I place great importance on enhancing corporate governance, and in particular, I consider it
essential to introduce a succession plan for top management and appoint outside directors
with management experience.

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

STEP

2

engagement to evaluate the importance of each candidate item.

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

For the 44 candidate items for material issues, we conducted a questionnaire survey
who hold many shares of our company and investors who have experience in ESG

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

Evaluating material issues from the perspective of stakeholders
targeting institutional investors in Japan, Asia, Europe, and the U.S. We asked investors

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

Nidec Corporation Profile

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

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

Identification of Materiality

Nidec’s materiality
Environment

High

Contribute to environmental
sustainability

Products

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

NIDEC CORPORATION

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

21

Human resources

Retain and develop diverse
talentSupply chain

Build an internationallycompetitive supply chain tosolve social issues

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

Corporate governance
Create a solid governancesystemmateriality categories and 15 themes after the deliberation of the Board of Directors.
High* Senior Management Committee: currently Management Committee

Importance for Nidec	Please see the next pagefor details.

INTEGRATED REPORT 2021

4

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

Importance for stakeholders

STEP

Provide products and services
adapted to social change

22

Theme to be addressed
Realize a carbon-free society

Environment

Contribute toenvironmental
sustainability

We have set KPIs, which we intend to achieve by FY2025, for each theme to address theidentified materiality. We incorporate the KPIs into the new medium-term strategic goal
Vision 2025, and work on them to enhance the sustainability of our business.

Phase1 ﾠ (April 2021–March 2026)

Manage waste and hazardous waste
Handle water risks

Materiality
1

Pursue product safety and quality

Products

Provide products andservices adapted tosocial change

Contribute toenvironmental
sustainability

Theme to be addressed

Realize a carbon-free society
P.37

	Respond to changes in the technologicalenvironment and the industrial structure
2

Protect and utilize intellectual properties3

	Maintain and foster globally competitive

Retain anddevelopdiverse talent

Respect human rights
and follow properlabor practices

Create a solid
governancesystemBuild a fair, transparent
and highly effective
governance system

Retain and develop
diverse talent

Human Resources

Materiality
1

labor practices

Supply Chain

Build an internationallycompetitive supply
chain to solve social
issues

Theme to be addressed

Pursue productsafety and quality

2

Provideproducts andservices
adapted tosocial change

environmental and social aspects
34
Retain anddevelopdiverse talent	Build a fair, transparent and highly effective
governance system

NIDEC CORPORATION

23

Corporate Governance	Follow thorough compliance with laws
and regulations
	Build a risk management system
	Promote information security measures larify human rights policies for workers including those in the supply chain, andC
spread them among employees
Board of Directors

 ontinue to have the effectiveness of the Board of Directors evaluated by a third partyC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

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

P.40

5

6

7

 reate a database for chemical substances contained in products to make it easier for the development
Cdepartment 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 product safety risks
 ontinuously launch new products that lead the Five Big Waves to resolve social issues
CContinue to pursue the high efficiency and miniaturization of motors that contribute to energy andresource saving

P.40

Protect and utilize
intellectual properties

P.41

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

P.44

 heck safety activities at production sites where the lost-time-injury frequency exceeds the average BU
C
rate: Six sites or more (per year)
Carry out a remote safety check: Six sites or more (per quarter)
Receive certification as a White 500 Company (in the large enterprise category) under the 2023 CertifiedHealth & Productivity Management Outstanding Organizations Recognition Program

Promote occupationalsafety and health, andhealth-oriented business
management


Follow thorough compliancewith laws and regulations

Create a solid
governancesystemKPI (FY2025)

Respond to changes inthe technologicalenvironment and theindustrial structure

Create a solid
governance system

Increase the introduction ratio of renewable energy to 40% in FY2025 on a consolidatedbasisAnnually disclose a climate change scenario in line with the Task Force on ClimateRelated Financial Disclosures (TCFD) recommendations

P.47

	Respect human rights and follow proper	Sustainable procurement considering

Reduce CO2
emissions
attributable tobusiness activities

Phase2 ﾠ (November 2021–March 2026)

	Promote occupational safety and health, andhealth-oriented business management

KPI (FY2025)
 educe CO2 emissions by introducing the EV traction motor system E-Axle:
R
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

P.45

human resources
Promote diversity

Sub-theme
Contribute todecarbonization
through products

P.54

Build a risk management system
P.55

Promote information
security measures

P.56

Phase3 ﾠ (April 2023–March 2026)

Expand the legal affairs and compliance system to all Group companies starting from Nidec Corporationand 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
 ll risks disclosed on the securities reports are evaluated by the department in charge, and the risks toA
be addressed in priority are identified
Reduce the impact of the risks to be addressed in priority on our business
Manage the progress of reducing such impact and the residual risks
Reduce the number of serious information security incidents to zero

INTEGRATED REPORT 2021

Materiality

Nidec Corporation Profile

Materiality Initiatives

24Overview of the Medium-Term Strategic Goal

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

2030

Vision 2025
Consolidated
net sales:

Consolidated
net sales:trillion
yen

4

10

11.6

trillionyen

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

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

Vision 2020 to 25

Target for consolidated net sales:

2 trillion yen

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

1.18

1.20

2015

2016

25

Sales target for Automotive:

700 billion to 1 trillion yen arget for consolidatedT
operating profit ratio: arget for ROE
T(return on equity): 

over
over

15%
18%

(assuming shareholders’ equity ratio of 60%)

 stablishment of five regional HQ
Emanagement units

Productivity improvement

ROIC (return on invested capital):

over

10%

2.00

1.48

1.53

1.62

2017

2018

2019

2020

Framework for the New
Medium-Term Strategic Goal

2

Business Portfolio Management
expected to have a high sales growth rate as a whole.
In the small precision motor department, we cannot expect
significant sales growth for HDD motors, which have been thedriving force behind our business performance for many years.
We will shift management resources to the mobility field, suchas motors for small EVs, for which business opportunities are
expected to expand due to automotive electrification, andmotors for electric two-wheeled vehicles. Thus, we hope thatthese products in the mobility field will contribute to sales
growth together with heat management systems, which isanother growth field.

Consolidated net sales for FY2020 were 1.6 trillion yen. To achieve
the consolidated sales target of four trillion yen by FY2025(including one trillion yen expected to be gained through new
M&A deals), we will actively shift our focus to growth businesses.
In the automotive department, we have secured orders for3.5 million units in the E-Axle business, whose market is expected
to expand significantly in the future, and we expect sales toincrease by several hundred billion yen by FY2025. 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% on an order basis. The automotive business is

FY2025 Consolidated net sales:

4,000 billion yen (target)
13,000

double sales and13,000

FY2020 Consolidated net sales:

profit per employee

1,618.1 billion yen

ROIC (return on invested capital):

over

(FY)

ROIC (return on invested capital) (%)

4 trillion yen

To

2025

2022

Achieve high growth with aggressive investment in key growth areas

Productivity improvement

30

3.00
Organic growthtrillion yen* We target an operating profit ratio of 15% for a sales target of 3 trillion yen by FY2025 attributable to organic growth.

Vision 2025
Target for consolidated net sales:

To increase sales andprofit per employee by
%

M&A

7.8

1.46

Operating profit ratio (%)

trillion yen

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)

FY2023 to FY2025

Target for consolidated net sales:

2 trillion yen

5.0

15.0%*
15.0%

10.0

7.1

trillionyen

FY2021 to FY2022

Vision 2020

8.8

8.7

8.5

Try again to accomplish sales of 2 trillion yen by FY2022
FY2015 to FY2020

9.9

10.3

(target)

4

11.4

10.0

Sales (trillion yen)

Review of Vision 2020 and Road to Vision 2025

(visualizing business opportunities by creating a matrix of products by business and region), while pursuing optimization ofcapital efficiency by using ROIC as the evaluation axis. The main
focus of new M&A deals is to complement our technologies andcommercial distribution services required for our strategy tosucceed. We place an emphasis on M&A deals that not only leadto an increase in sales but also have a synergistic effect with ourmanagement strategy and eventually contribute to improving
the management indicators of the entire company.

Tackle both growth strategy (organic growth + M&A) andenhancement of profitability on capital
Consolidated
net sales:

2021

Commitment to Profitable
Small Precision Motor Department Growth

To achieve consolidated net sales of four trillion yen (including
one trillion yen expected to be gained through new M&A deals)
by FY2025, we are required to attain a high growth rate. We arecommitted not only to increasing sales but also to achieving
profitable growth. Accordingly, we have adopted ROIC (return on
invested capital) as a management index in Vision 2025 insteadof ROE (return on equity) in Vision 2020, and have set the ROIC
target at 10% or more in FY2022 and 15% or more in FY2025.
For existing businesses, we will seek growth opportunities
through management in a business and geographic scope

2025

2022

2

100

the next
years
and beyond

1

15%

8,000

6,016
 o be a top-rated ESG company
T
1 Address social issues with the accumulated skills of creating the world’s first andNo. 1 product2 Promote ESG management centered on carbon neutrality
3 Strengthen the unified organization of the Nidec Group and its governance

4,436

Small Precision
Motors3,581

Automotive
Products

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

6,000

2,148

Appliances,
Other ProductCommercial andGroupsIndustrial Products

600

billion yen

1,000

billion yen

1,000

billion yen

400billion yen

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

Appliances,
Commercial andIndustrial Products

Other ProductGroupsINTEGRATED REPORT 2021

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
two trillion yen by FY2022 and to four trillion yen by FY2025. We
anticipate an increase in consolidated net sales through new
M&A deals (by approximately one trillion yen) in addition toorganic growth centered on growth fields in existing businesses.

Framework for the New
Medium-Term Strategic GoalManagement Strategy

Becoming a global company
that continues to grow for26

3

Measures for Boosting Top-Line Growth

Framework for the New
Medium-Term Strategic Goal

integration 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 business department, we will secure the growth opportunities necessary toachieve consolidated net sales of 10 trillion yen by FY2030.

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

Implementation of activities for ROIC improvement

Expansion of expected market size

ize
et s
ark usmand onscio
exp
-c
t)
and price arke
s
t
f
m
e
ark etite o a newmew e app eate
te n
d cr
e th
rea
2. C imulat ers an
t
m
(S
su
con

Examples of auto businesses
EV platform
Trillions of yen

e
har
et s
ark ies ofmbal onom arts)
glo
fp
ec
ec’s
gh tion o
d
u
i
o
N
r
c
e
h
u
t
s
d
a
n
pro
cre
ctio
1. In t redu -house
Liquid Crystal
n
s
i
o
(C
nd
Display (LCD) panel
le ahandling robotsca

EV traction motor system
E-AxleElectric oilpump module

Tens ofbillions of yen

AC servo
motor
Motor

Reducer

Device alone

Framework for the New
Medium-Term Strategic Goal

4

ROIC
Wafer/
LCD
transfer
robot

Guideless Autonomous
Guided Vehicle (AGV)

Ultra-flat geared
actuator

System atio of cost of goods soldRIn-house parts production rate
Factory production load rate
Sales per employee, etc.

ROIC

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

Automotive Motor &Electronic Control Business Unit

Increase profitability

 atio of cost of goods soldR
In-house parts production rate
Factory production load rate
Sales per employee, etc.

ROIC

Optimize invested capital

Cash Conversion Cycle (CCC)
Automated production rate, etc.

Appliance, Commercial &Industrial Motor Business Unit

Increase profitability

 atio of cost of goods soldRIn-house parts production rate
Factory production load rate
Sales per employee, etc.

ROIC

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

Expansion ofbusiness areas

Solution

Basic Policy for EV Traction Motors

Framework for the New
Medium-Term Strategic Goal

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

The environment surrounding the EV industry is changing day byday, and major changes are occurring such as the promotion of
automotive electrification due to the tightening of environmental
regulations around the world, entry into the EV market fromdifferent industries, and the emergence of fabless manufacturers.
We anticipate an explosive increase in the sales of EV traction
motors after 2025 mainly due to a decline in EV prices caused
by a decrease in battery prices. We have already secured orders
for 3.5 million E-Axle units for FY2025, and we expect their sales
to reach 10 million units in FY2030.

Small Precision Motor &Solutions Business Unit

Increase profitability

Logistics solution

Examples of robotic businesses

Geared servo motor

Moduleresults. It is important to implement improvement activities basedon 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.

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

Diagram of business model shift in the auto and robotic areas

EPS
powerpack

ROIC Management

In Vision 2025, ROIC (return on invested capital) has been included
as a new management index, and specific activities to improve
ROIC will be implemented based on numerical targets in linewith 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

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

Hundreds ofbillions of yen

5

Lead the EV era as a company that triggers creative disruption andgoes beyond the automobile industry tradition

6

Management Strategy

Framework for the New
Medium-Term Strategic Goal

Pathways to Carbon Neutrality

In Vision 2025, we have newly declared the goal of achieving carbon
neutrality. Our declaration consists of two goals: 1 achievingcarbon neutrality for business activities (Scope 1 and 2) by FY2040
and 2 laying out a plan to reduce CO2 emissions in the supply
chain (Scope 3) by FY2025.
Energy consumption is expected to rise in proportion to anincrease in sales. To address this, we plan to reduce net CO2
emissions to zero by FY2040 (Scope 1 and 2) by 1 promoting
energy saving, 2 shifting to renewable energy sources in theenergy mix, and 3 investing in carbon offset projects. The
percentage of our total energy consumption sourced fromrenewables is planned to be 40% by FY2025 and 80% by 2030.

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

Nidec’s E-Axle shipment forecast
Turning point

Consolidated sales target:

NIDEC CORPORATION

Preparing for mass production
for rapid growth of the market

27

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

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

FY2030:[Battery price]
Approx. 14 yen/Wh

2020

FY2025:
Approx.
10 yen/Wh

Introduction

4 trillion yen

CO2 emissions(10,000 tons)

100

10 million units

3.5 million units

2020

180

Renewable shift &energy savings(Renewables: 40%)

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

2025

2035

2045

Growth2050 (FY)FY2040Carbon Neutrality

50
2025

Renewables-led CO2
emission reductions

Renewable shift &energy savings(Renewables: 80%)

2030

0

2040 (FY)

CO2 emissions from purchased fossil-based electricity

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

INTEGRATED REPORT 2021

Key action

28

Technology Strategy
Each business department mainly conducts the following
research and development.

Evolving the R&D system
toward consolidated
net sales of 10 trillion yen
by FY2030

Small Precision Motor & Solutions BusinessToshihiko KosekiFirst Senior Vice President

Automotive Motor & Electric Control BusinessOur company is paying attention to market trends associated with the Five Big Waves* of technologicalinnovation: “automotive electrification,” “expansion of robot applications,” “home appliances driven bybrushless DC motors,” “manpower-saving in agriculture and logistics,” and “next-generation technology
stemming from 5G communications.” These themes are connected to global issues, such as the reductionof CO2 emissions and responses to the aging of the working population. I believe that the developmentof product groups that provide solutions to these issues will lead to the fulfillment of Nidec’s mission of“contributing to the Earth by producing the highest quality motors in the world.” We will proceed withresearch and development while recognizing the importance of the fusion of technology between researchand development organizations, leading to the provision of solutions to global issues.
See page 19.

technology, and data analysis and simulation.
For open innovation, we established the Nidec Center
for Industrial Science in 2015 with the aim of strengthening
the foundation of manufacturing and creating technologies
that contribute to the world via our academia-institutecorporation networks. In addition, the Nidec Researchand Development Center, Taiwan, which was opened in
September 2012 and is located in STIR (Southern Taiwan
Innovation & Research Park) in the southern district of
Taiwan, collaborates with the highly skilled ITRI (Industries
Technology Research Institute), MIRDC (Metal Industries
Research & Development Centre), major universities, andTaiwanese companies on basic research subjects, such as
motor structures and motor control.

NIDEC CORPORATION

29

Nidec Research and Development Center (Kawasaki)

This department conducts research and development on
motors for home appliances, such as motors for washingmachines, dryers, and dishwashers, compressors forrefrigerators, and motors for compressors. For residential
and commercial motors, it is engaged in research anddevelopment on motors for air conditioning equipment,
refrigerators, and cooking equipment, geared motors, andmotion control motors. For industrial motors, it is involved in
the development of motors for water and sewage pumps,
irrigation pumps, gas mining pumps, and various otherpumps, as well as industrial vehicle driving motors andcomprehensive solutions that integrate various power
generation and storage systems.

R&D Expenses

R&D System
We are engaged in research on elemental technologies formotors in general at the development department set up
in each business unit as well as at the Nidec Research andDevelopment Center, Japan and the Nidec Research andDevelopment Center, Taiwan, both of which are companywide common organizations. Our aim is to promote thefurther advancement of research on elemental technologies,
including electronic circuit technology, thermal technology,
noise and vibration technology, and control technology.
At the Nidec Center for Industrial Science, we are also
engaged in research and development with a focus on theevolution of production engineering, which is not bound by
existing manufacturing methods, including the realizationof smart factories using robots and IoT, the developmentof new materials and systems, innovation in inspection

Appliance, Commercial & Industrial Motor
Business

Nidec Center for Industrial Science (Kyoto)

R&D expenses for the entire Nidec Group in FY2020 were 67.3 billion yen, accounting for about 4% of consolidated net sales.
We plan to continue investing in R&D in the future.

Role of Research and Development in Vision 2025
To achieve the consolidated sales target of 4 trillion yen
in Vision 2025, it is important to enhance the productcompetitiveness of E-Axle, whose market is expanding
rapidly. Of particular importance is the development of
next-generation models of E-Axle. We recognize that it isdifficult to significantly reduce the cost of E-Axle unless
its design is fundamentally changed from the existingmodels. We are currently working on the development of
next-generation models while setting a specific cost
reduction target for each of the three main componentsof E-Axle: a motor, a gear, and an inverter.
In particular, what is most important is that we plan to
manufacture main parts, materials and equipment in-housenecessary to create E-Axle, which will have two advantages:
1 cost reduction and 2 stable supply. Regarding cost
reduction, we aim to reduce costs by eliminating extra
functions included in externally purchased parts andmaterials and focusing on necessary functions in-housemanufacturing. For stable supply, our strategy is to eliminate
bottlenecks in the supply caused by sourcing parts,
materials, and equipment from outside, through in-housemanufacturing. In a market that is expected to expand
rapidly, like the EV market, the in-house manufacturing ofparts, materials, and equipment will create an overwhelming
competitive advantage over the competitors that arelikely to emerge with a major expansion of the market.
Another important point in the development of nextgeneration models of E-Axle is the standardization of theplatform. Currently, the development of E-Axle is individually
optimized for each model according to the customer’s
requests. However, by accelerating a common design for
all models, we can improve resource efficiency, including thehuman resources required for their development, and as aresult, reduce product costs and enhance competitiveness.
With the establishment of the “Platform Development
Center” in 2021, we have started a project to support thestandardization of E-Axle from an organizational aspect.
Research and development will serve as a cornerstone
for Nidec to continue to grow to achieve consolidated net
sales of 10 trillion yen. We will conduct research anddevelopment on a daily basis without forgetting Nidec’s
mission of linking social needs with company growth.

INTEGRATED REPORT 2021*

The Nidec Shiga Technical Center (Shiga) and the Nidec(Dalian) Limited Technical Center (China) play a central role
in research and development aimed at the mass productionof new products and models related to various automotive
motors, including the EV traction motor system E-Axle,
which contribute to the realization of a carbon-freesociety, as well as the improvement of product quality. The
establishment of the Nidec (Dalian) Limited Technical Centerin China, where we operate the EV-related business,enables us to provide prompt support to customers andhire local engineers, and this serves as a cornerstone tosupport our EV-related business.

Nidec (Dalian) Limited Technical Center (China)

Management Strategy

This department is involved in basic and applied research on
small precision motors in general, such as small precision
DC motors and fan motors, in research and development
on new products, and in technical support research for eachR&D facility. It also conducts research and development
aimed at the mass production of new models of HDD
motors and the improvement of product quality.

30

Human Resources Strategy

Toward sustainable growthof Nidec
Fumiaki Ushio

Senior Vice President
Chief Administrative Officer*

See page 52.

Ranking system
Human resources strategy is becoming an increasingly important issue for Nidec to grow sustainably
over the next 100 years and beyond. In the new medium-term strategic goal Vision 2025, we have set a
goal of increasing sales and operating profit per employee by 30% by FY2022 and doubling them by
FY2025 (compared to FY2020). This goal is a prerequisite for a 30% increase in employee salaries by
FY2023 (compared to FY2020). We are working on achieving this goal as an urgent issue for enhancing
our competitiveness. We recognize that expansion and promotion of diversity as well as improvement of
productivity is an important issue for the sustainable growth of Nidec. In the medium to long term, we
would like to raise diversity management to a level where it becomes the strength of the Nidec Group.

31

As the first step towards work style reform, we established
the Work Style Reform Committee in 2016 and conducted
an interview with on-site employees to identify organizational issues with the aim of improving productivity. As aresult, we decided that the following three systems werenecessary: a home working system, a staggered shift work
system, and a by-the-hour annual paid leave system.
A home working system was introduced in April 2017,and a by-the-hour annual paid leave system also started
at the same time. For the staggered shift work system,
the range of eligible reasons was expanded in April 2017
to include operational reasons, childcare needs, longterm care needs, and personal development, enabling
employees to use the system more flexibly.
All three systems have enabled employees to work
flexibly. The home working system also plays a major role
as a Business Continuity Planning (BCP) measure. With
the spread of the COVID-19 pandemic, we have eliminatedthe eligibility for the system and the limit on days available
for the system, placing top priority on the health of employees
and their families, so that employees can make the mostof the system.

Appraisal
systemRegarding Digital Transformation (DX), we established the
DX Promotion Office in December 2020 with the aim of
improving productivity and have promoted DX from thefollowing three perspectives:
1 DX for three “news” (new markets, new products, andnew customers):
Digital transformation for sales
2 DX for manufacturing:
Digital transformation for design and manufacturing
3 DX for employees:
	Digital transformation for the improvement of productivity
per employee
We aim to realize “One Nidec Platform” by introducing
advanced sales support tools that stimulate DX and using asystem common to all Group companies in the future. We
will continue to make investments that we deem necessary
to improve operational efficiency and productivity.

Compensation
systemDiversity
Improving productivity to achieve
management goals

Realize a doubling of productivity	Pursuing work efficiency instead of doing
hard work for the sake of it	Shifting the focus to productivity and awayfrom working hours

2. Personnel system reform

Regarding the personnel system, the appraisal system,
the ranking system, and the compensation system havebeen significantly revised. In the new appraisal system
introduced in FY2020, the ability and achievements of
employees are more clearly reflected in their evaluation
made on a quarterly basis, with a focus on rewarding
personnel who lead the company to a better future.
The ranking system and the compensation system aredesigned in line with the idea of a job-based personnel
system and have begun to be implemented from FY2021.
The ranking system clarifies the responsibility and authorityof employees by job rank to help employees develop
expertise and clarify their career vision. The compensation
system aims to treat employees fairly based on their
responsibility and performance. The appraisal system,

Nidec recognizes diversity as the source of its competitiveness and an important foundation for its sustainablegrowth in the future. The Nidec Group, which operates
globally, employs people from diverse backgrounds. We
conduct personnel evaluation and promotion in such a waythat individual employees can demonstrate their full potential
regardless of their attributes and values, and we work tocreate work environments that can achieve that purpose.
Regarding women’s empowerment, we established theDiversity Promotion Office (currently D&I Promotion Groupof the Human Resources Department), an organization
dedicated to promoting diversity, in 2017. Our actions have
led to an increase in the number of female managerial
employees and candidates for managerial positions and to
more male employees participating in child-rearing. The
ratio of female managerial employees at Nidec Corporation
was 5.7% (female employee ratio: 20.6%) in FY2020 on a
non-consolidated basis.
In 2018, as a measure to support employees’ work-lifebalance, we introduced a spouse transfer leave system andrevised the comeback system (the former re-employment
system). In 2020, we revised our sick/injured childcare andnursing care leave system to enable employees to take time
off “by the hour,” an improvement from “half a day.” Throughthese systems in addition to the above-mentioned by-thehour annual leave system, we support the flexible working
styles of employees.

As actions for LGBT employees, our work rules stipulatethat employees must respect each other’s personality andwork together regardless of gender differences, sexual
orientation, and gender identity, and as part of such actions,
we apply the personnel rules for employees’ spouses tosame-sex partners as well.
Regarding the employment of people with disabilities,
we have a corporate culture where employees are promotedwith emphasis on their ability regardless of gender, academic
background, age, and other personal attributes. In addition,
we actively promote barrier-free working environments by,for example, building slopes, multi-purpose toilets, andparking spaces for people in wheelchairs.
Employee breakdown by region
Central &South Americas:

North
America:(17,767)(4,467)15.79%
Japan:

8.33%(9,379)Europe,Middle East &Africa:12.01%(13,516)

3.97%

Total:

112,551
Asia &
Oceania:59.90%(67,422)(As of March 31, 2021)

INTEGRATED REPORT 2021

NIDEC CORPORATION

Measures to Improve Productivity
1. Work style reform

Optimization of organizations,human resources, and treatment

3. Promotion of DX

Management Strategy

the ranking system, and the compensation system arelinked together to enable the optimization of organizations,human resources, and treatment.
The above reform is intended for employees. Meanwhile,for the treatment of directors, the performance-linked
share-based compensation system* has been introduced
to increase incentives to achieve their goals.

32

Financial Strategy

Accelerating Nidec’s growth
toward the consolidated
sales target of 10 trillion yen
by FY2030

ESG goals

In Vision 2025, we have incorporated the perspectives of
ESG management into our goals. We have announced thefollowing three ESG goals: 1 addressing social issues
with the accumulated skills of creating the world’s first andNo. 1 products, 2 promoting ESG management centeredon carbon neutrality, and 3 strengthening the unified
organization of the Nidec Group and its governance.

Hidetoshi Yokota
Senior Vice President
Chief Financial Officer

1 Addressing social issues with the accumulated skills

In June 2021, our company reached a turning point since its founding, when Representative Director andPresident Seki assumed the office of CEO toward achieving the consolidated sales target of 10 trillion yen
by FY2030. In July 2021, we announced the new medium-term strategic goal Vision 2025, which aims toachieve consolidated net sales of four trillion yen by FY2025. We will continue to take on further challenges
and reform of the Nidec Group in terms of both financial and non-financial aspects, including balancing
growth investment and financial discipline, and promoting ESG management.

of creating the world’s first and No. 1 products
In our IR presentation materials, we have announced Nidec’s
business solutions that solve the common problems ofhumankind to tackle the Five Big Waves. Recognizing againthat the significance of our existence is to address social issues,
we work to provide products and solutions to our customers.

2 Promoting ESG management centered on carbon

neutrality
As part of our climate change actions, we have set twogoals: (1) achieving carbon neutrality for business activities(Scope 1 and 2) by FY2040 and (2) laying out a plan toreduce CO2 emissions in the supply chain (Scope 3) by FY2025.
We will promote ESG management by working to reduce
CO2 emissions attributable to our business activities andhelping to solve social issues through the provision of
products and solutions that contribute to decarbonizationand energy saving.
3 Strengthening the unified organization of the Nidec
Group and its governanceWe receive many opinions and requests from investors
every day regarding our governance system. To strengthen
our governance system, we shifted to being a company
with an Audit and Supervisory Committee in June 2020and established the Remuneration Committee in February
2021. We will continue to improve the governance system
to further enhance our governance.

Management Strategy

flow. If we need to raise funds, our policy is to choose thebest way to raise money while comprehensively considering
the required amount, financial situation, stock price andrating, financial market environment, and other factors.

IR Activities

NIDEC CORPORATION

Consolidated sales target

33

In the medium-term strategic goal Vision 2020, whose final
year was FY2020, the consolidated sales target of two
trillion yen was not reached. To achieve this target by
FY2022 and further achieve the consolidated sales targetof 10 trillion yen by FY 2030, we have set the new mediumterm strategic goal Vision 2025, which aims to attain the
consolidated sales target of four trillion by FY 2025.
Of the consolidated sales target of four trillion yen by
FY2025, three trillion yen and one trillion yen is expected to
be gained through organic growth and through new M&A
deals, respectively. In order to achieve consolidated net
sales of three trillion yen by FY2025, excluding sales of
one trillion yen through new M&A deals, it is necessary toachieve a CAGR (compound annual growth rate) of about
15%. Accordingly, it is important to shift our business portfolio to growth fields.
We have already secured orders for 3.5 million units ofthe EV traction motor system E-Axle for FY2025. The EV
industry is experiencing structural changes such as thetightening of environmental regulations around the world,
the emergence of fabless manufacturing, and an increaseof new entrants into the EV market, and we believe that
there are significant business growth opportunities forus. In the small precision motor department, we expectthat motors for small EVs and electric two-wheeled vehicles
will make an early contribution to profits as new business.
The Nidec Group will work as one to achieve consolidated
net sales of four trillion yen by FY2025, thereby building astrong bridgehead to attain consolidated net sales of 10
trillion yen by FY2030.

Financial targets

In Vision 2025, a new medium-term strategic goal for
FY2025, we have adopted ROIC (return on invested capital)
as a new management target instead of ROE (return on
equity), which was adopted in Vision 2020. We aim toreach 10% ROIC by FY2022 and 15% ROIC by FY2025
from an ROIC of 7.8%, which we achieved in FY2020.
The reason for adopting ROIC as a new management
index is that we emphasize commitment to profitable growth
and aim for growth through both “organic growth + new M&A
deals” and “enhancement of profitability on capital.” For ROIC
targets, we have broken down the targets for each businessdepartment to promote daily improvement activities.
Regarding investment, we expect to make a growthinvestment of over one trillion yen in total (mainly CAPEX
and M&A) toward FY2025. Meanwhile, we foresee a CAPEX tosales ratio of about 5% in FY2025. For Cash Conversion Cycle(CCC), the actual result in FY2020 was less than 75 days. We
will continue to work to improve CCC mainly by optimizing
inventory while minimizing production continuity risk due tosoaring raw material prices and disruption in the supply ofparts and materials.
Regarding the procurement of funds necessary forinvestment in growth businesses and new M&A deals, ourbasic stance is to thoroughly manage funds within the Group
mainly by shortening CCC and use funds from operating cash

We attach great importance to communication with investors(investor relations). In FY2020, we conducted many interviews
with investors to respond to their interest in our stock,interviewing about 3,500 investors in total. As a result of
these efforts, Nidec Corporation ranked No. 1 in all categories
in the Electronics/Components business sector on Institu-

tional Investor’s 2021 All-Japan Executive Team.
We also focus on IR for individual investors. We not only
hold regular briefings for individual investors and securities
companies’ sales staff but also take new measures, including
participating in various events for individual investors andcreating and publishing YouTube videos for them.

Shareholder Return Policy
While improving corporate value through business growthand expansion is an important issue for management, we
also recognize shareholder returns as a key management
theme. For dividends, we will continue to return profits toshareholders, while considering capital efficiency, after
securing the necessary internal reserves for researchand development, and the CAPEX and M&A required for
future growth. For the acquisition of treasury stock, ourbasic policy is to purchase treasury stock as a means of
implementing agile capital policies in response to changes
in the business environment.
Regarding dividends, the dividend per share has steadily
increased over the past 10 years, reaching an annual
dividend of 60 yen per share and a dividend payout ratioof 28.8% in FY2020. For the acquisition of treasury stock, wepurchased 2,850,200 shares (equivalent to 18,527,768,000yen) between January 24, 2020 and January 22, 2021. We
have also set limits for treasury stock acquisition at 50
billion yen (or 4,000,000 shares) for the period from January
26, 2021 to January 25, 2022.

Our dividend record for the past 10 years(actual dividend per share)
(yen)
70.00

57.50

60.00

47.50

50.00

40.00

42.50

35.00

40.00
30.00

60.00

52.50

22.50 21.25

25.00

20.00
10.00
0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)* A two-for-one stock split was conducted for shares of common stock as of April 1,2014 and April 1, 2020. Dividends per share are calculated on the assumption thatthe stock split was conducted at the beginning of FY2011.

We will strive to improve shareholder value, not only byaccelerating growth investment to achieve the mediumterm strategic goal while keeping balance with financial
discipline, but also by promoting ESG management andother non-financial goals.

INTEGRATED REPORT 2021

New Medium-Term Strategic Goal Vision 2025

34

Toward Achieving Sustainability
Stakeholder engagement
activities for each theme. For example, to check the progressof the improvement activities on a regular basis, the ESG
Materiality Steering Committee headed by the President(CEO) was organized. We have also established a risk
management system covering both financial and nonfinancial domains so as to promptly address risks that may
arise in the future. Moreover, the CSR Charter, which wasestablished in 2008 and has served as the most important
guidelines for Nidec’s CSR to date, the CSR Declaration on
the Conduct, which clarifies the actions that our employees
should choose to take from the perspective of fulfilling
their social responsibilities, and all the other documents
and regulations concerning CSR constitute the foundationfor our materiality initiatives. We will continue to launcheffective sustainability strategies by leveraging all of ourphilosophies and experience, with the aim of making ourbusinesses 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 system to check that each activity is being conducted
steadily and effectively, we regularly hold meetings of the
ESG Materiality Steering Committee. The ESG Materiality
Steering Committee is placed directly under the Management
Committee and is headed by Jun Seki, Representative Director,

President and Chief Executive Officer. The Committee meetsonce every quarter to report on the progress and problemsof the action themes in each Phase. Reports are given directlyby the directors in charge of each action theme. The matters
discussed and decided on at the Committee meetings are
immediately reflected in the action plan.
*

Provide products and services adapted
to social change
Steering Committee
Owner: Jun Seki Representative Director, President

NIDEC CORPORATION

and Chief Executive Officer

35

Executive member:
Hidetoshi Yokota Senior Vice President
Participating members:	Management Committee members
and persons in charge of KPIs

Secretariat(Investor Relations &CSR Promotion Department)

Officers in charge: Kazuya Hayafune First Senior Vice President
Toshihiko Koseki First Senior Vice President
Eiji Miyamoto Vice President

Retain and develop diverse talent
Officers in charge: Fumiaki Ushio Senior Vice President
Keitaro Tanaka Vice President

Build an internationally competitive
supply chain to solve social issues
Officers in charge: To be decided after the start of Phase 3

Create a solid governance system
Officers in charge: Fumiaki Ushio Senior Vice President
Koichiro Yasunaga Senior Vice President
Maki Okajima Vice President
Keitaro Tanaka Vice President

Nidec wishes to continuously improve its corporate value byachieving high growth, high profits and high stock prices in
the medium to long term, and promotes active IR activities,
including face-to-face communications between our top executives
and investors.

Nidec has established QCDSSS* as
the basis for its business activities,
and all of its R&D, production,and sales departments work
together to improve customer
satisfaction and build relationshipsof trust. We have also launched
the “made-in-the-market” strategy
by establishing business sites invarious regions around the world
to respond quickly to the needsof customers.

Communications
	Holding shareholders’ meetings, quarterly briefings, individual
investors’ meetings, and other IR events
Providing information via websites
	Issuing an Integrated Report and Shareholder Newsletter

Shareholders
andinvestors

Business
partners

Customers

Our basic approach is to ensurethat our business partners andsupply chain as a whole achieve
continuous growth while balancing
cultural diversity and international
business rules. For importantbusiness partners, we conduct
on-site audits to promote CSRoriented business activities.
Communications* QCDSSS: Quality, Cost, Delivery, Service,
Speed, and Specialization

Local
communities

Employees

	Communication throughpurchasing activities	CSR procurement
	Setting inquiry contacts

	Communication throughsales activities
	Providing information via
websites, etc.
	Online inquiry contacts

Organization of the ESG Materiality Steering Committee
Contribute to environmental sustainability

Nidec’s major stakeholders

Communications

See page 24.

Officers in charge: Hidetoshi Yokota Senior Vice President
Kazuya Hayafune First Senior Vice President

Nidec’s major stakeholders include its shareholders and investors, customers, business partners, local communities,
and employees. It is our important business management task to meet the expectations of our stakeholders throughcommunications with them.

	Realize a carbon-free society	Manage waste and hazardous waste	Handle water risks	Control product safety and quality
	Respond to changes in the technological environment andthe industrial structure	Protect and utilize intellectual properties	Maintain and foster globally competitive human resources	Promote diversity
	Promote occupational safety and health, and health-oriented
business management	Respect human rights and follow proper labor practices

	Sustainable procurement considering environmental andsocial aspects

	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*1 As of November 2021
*2 The Vice Presidents of Nidec assume the roles and responsibilities of a managerial position generally known as the Executive Officer.

We have bases in each country/region to enable two-way
communications with local communities, and engage in social
contribution activities to address issues for the future identified
through the communications.
Communications
	Contributing to education
	Supporting disaster control measures
	Fund-raising, donations, and activities to contribute to
local communities	Participating in international initiatives

Based on the Three Essential Attitudes of “Passion, enthusiasm
and tenacity,” “Work hard and smart,” and “Do it now; do it
without hesitation; do it until completed,” we are committed todeveloping globally competent talents and building a working
environment where diversity is respected so that all employees
can exercise their abilities to the full.
Communications
	Transmitting information by company newsletters and the intranet
	Regular exchanges with management
	Internal awarding system, R&D presentations
	Organizing meetings between representatives of the employees’
association and company management as the employee
satisfaction improvement committee

INTEGRATED REPORT 2021

Our definition of “sustainable business management” is toensure that the direction of business strategies that thecompany pursues conforms with the path the world seeks
in order to solve social issues, and to continue 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, inorder to ensure the sustainability of our businesses, we
identified five issues of materiality based on the medium- tolong-term visions of our stakeholders both inside andoutside the company, and clarified 15 action themes,
including “Realize a carbon-free society,” “Respect humanrights and follow proper labor practices,” and “maintainand foster globally competitive human resources.” We
have also established various systems to ensure theimplementation of proactive and continuous improvement

Management Strategy

Basic stance36

Environment

Environment

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

Realize a carbon-free society
Nidec announces that it will achieve carbon neutrality in fiscal
2040 as a major pillar of its new medium-term strategic goal
Vision 2025 and materiality initiatives, with the aim ofcontributing to the realization of a carbon-free society. Thisis our new, higher-level environmental target establishedbased on the SMART2030 environmental target set in2018, in view of the accelerating moves of the international
community toward decarbonization.
To achieve this target, we will first aim to substantiallyreduce the CO2 that Nidec emits directly through its businessactivities at present (Scope 1), and CO2 that is emitted in

the production stage of heat or energy used in businessactivities (Scope 2), by making our businesses more energy
efficient and proactively introducing renewable energies.
After building a solid foundation for renewable energyoriented CO2 emissions reduction, we will promote a shift
to energy-saving, low-carbon fuels and employ carbon
offset investments and other measures, thereby achievingcarbon neutrality in our business activities in fiscal 2040.
For CO2 emitted in the supply chain (Scope 3), we will
decide a reduction plan by fiscal 2025.

We will identify a further reduction in CO2 emissions dueto the introduction of electric power steering (EPS)
motors, and further work to make visible our contribution
to decarbonization through many other products.
Materiality Phase 1 KPI	Reduce CO2 emissions by introducing the EV traction motor
system E-Axle:

	Cumulative total
from FY2020 to FY2025:

11,700,000 t-CO

2

	Reduce CO2 emissions by introducing EPS motors:	Cumulative total
from FY2020 to FY2025:

26,261,000 t-CO

Specific product example: Provision ofhigh-efficiency, energy-saving motors
The key to reducing CO2 emissions from automobiles is to
reduce the load on the engine and improve fuel efficiency.
From this perspective, many car manufacturers around theworld are increasingly adopting electric power steerings (EPS).
The Nidec Group supplies EPS motors expected to improvefuel economy by about 5% compared to hydraulic motors.
The Group also offers electric oil pump motors toenable the idling stop function, and many other productsthat will lead to the reduction of emissions of CO2 andother air pollutants.

2

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

For other products, please see below.
https://www.nidec.com/en/sustainability/environment/system/motor/

CO2 emissions reduction due to renewable energy-derived electricity
Total CO2 emissions derived from thermal power
Total CO2 emissions derived from gas, petroleum, etc.

Reducing CO2 emitted in business activities
10 trillion yen

600

4 trillion yen(Renewable energy
introduction rate: 80%)

Renewable energy +energy saving effect

300

180

FY2020FY2040(Renewable energy
introduction rate: 40%)

100

Carbonneutrality
50

FY2025

Renewableenergy-oriented
CO2 emissions
reduction

Renewable energy +energy saving effect

Consolidated sales target

0

Basic stance

Consolidated sales target

900

FY20300
FY2040

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

Contributing to decarbonization through products

NIDEC CORPORATION

Basic stance37

As global trends toward decarbonization are acceleratingin response to intensifying climate change, Nidec, as a
global business operator, is committed to the development
and supply of products that will contribute to decarbonization.
Specifically, focusing on products for automobiles, which
are said to account for over 10% of CO2 emissions aroundthe world, we have decided to set as a KPI the sales
volume of products that reflect the global automobile

electrification trend by converting it into the volume of CO2
emissions reduced.
While our contribution to decarbonization throughour products has been recognized to some extent by ourinvestors and other stakeholders, we are aware that thenumerical data to support it is insufficient. In November
2020, we disclosed a reduction in CO2 emissions due tothe introduction of the E-Axle EV traction motor system.

In addition to contributing to decarbonization throughproducts, we will also be committed to reducing CO2
emissions in business activities. As the Nidec Group’s
energy use is expected to continue to increase due to the
expansion of its production scale, including M&As, we must
establish a system whereby CO2 emissions can be reduced
despite an increase in the total amount of energy use. Sinceelectricity from thermal power generation accounts forover 80% of the total consolidated energy consumption of
the Nidec Group, we have decided to achieve a dynamic
shift to renewable energy as our goal for the moment andset a KPI for it.
The Nidec Group is currently working to achieve carbon
neutrality in fiscal 2040. However, the Group has so far
introduced equipment to improve the energy efficiency ofits business operations and renewable energy facilities
only within a range that would not incur any cost increase,on the ground of drastic changes in the market environment.
As a result, the ratio of renewable energies in the Nidec
Group as a whole remains less than 10%. We will therefore
make further efforts to reduce CO2 emissions in ourbusiness activities.

Materiality Phase 1 KPI	Increase the introduction ratio of renewable energy to 40% in
FY2025 on a consolidated basis.
	Annually disclose a climate change scenario in line with the
Task Force on Climate-Related Financial Disclosures (TCFD)
recommendations.

Specific action example: Use of renewableenergySome of our operation sites have installed solar panels on
their buildings to provide a small percentage of the electric
power they use. In recent years, around 20% of our sites inJapan and Asia have begun to purchase renewable energy
electricity directly from electric power companies to cover
100% of their electricity usage, or purchase Green Power
Certificates for 10 to 100% of their electricity usage. We will
expand our renewable energy use in all possible forms.
For other actions, please see below.
	https://www.nidec.com/en/sustainability/environment/system/
re-impact/global_warming/

INTEGRATED REPORT 2021

1,200

Materiality Initiatives(CO2 emissions: Ten thousand tons)

38

Environment

Products

Nidec’s Technological Capabilities

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

Provide products and services adapted to social change

As increasing waste has been a global social problem inrecent years, Nidec is working to establish a businesssystem to help realize the effective reuse of raw materials.
We have been making efforts not only to eliminate waste
in manufacturing processes, but also to minimize the useof containers and packaging materials. Besides these, we
are making continuous efforts to promote the recycling ofwaste by encouraging thorough sorting.
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 aspart of the initiative to improve and innovate production
processes. The Group also utilizes its information systems
and analysis techniques to satisfy international regulations
concerning hazardous chemical substances containedin products.
It will be our policy to work for the careful managementof waste and hazardous waste to respond to rising social
demand, and to avoid undermining our corporate value
due to delay in action.

Specific actions

Waste management

In FY2020, due to efforts to improve the recycling rate
and reduce the use of paper, the volume of final waste
disposal at our production sites decreased by around 7%
from the FY2019 level. Non-production sites achieved a
reduction of around 40% mainly due to an increase in thenumber of work-from-home employees as a result of the
spread of COVID-19 infection.

Monitoring and disclosure of releases andtransfers of chemical substances

In accordance with the PRTR system* based on Japaneselaw, the Nidec Group monitors and discloses the amountsof released and transferred chemical substances that aredesignated under the system and used at the Nidec Group’s
sites in Japan. The Group voluntarily monitors the releaseand transfer of chemical substances that are not subject
to the PRTR system.
* Pollutant Release and Transfer Register

Handle water risks
Basic stance

NIDEC CORPORATION

Water is the most important resource and is indispensablefor people’s lives and industries. It is said that excluding
seawater, icebergs and glaciers, only around 1% of water
resources on the Earth are actually utilizable. Nidec recognizes the significant impact that depletion of water resources
may have on its business continuation, such as shorteningof operation hours or suspension of operations at plants, andhas implemented initiatives to minimize the environmentalload (conservation of water resources) at each stage ofthe intake, use and discharge of water. We are also engagedin water risk management through such measures as
identifying risks in water intake and discharge for thecontinuation of business activities, and determining theimpact of our water intake/discharge on peripheral areas
and the water source areas.

39

Specific actions

Recycling of water

As demonstrated by Nidec Copal (Zhejiang) Co., Ltd., wherereused/recycled water exceeded 50% of total water use in
FY2020, active efforts have been made to promote reuse
and recycling of water at some of our business sites.
However, looking at all the business sites covered in the
Sixth Medium-term Environmental Conservation Plan,*
the water reuse/recycling rate in FY2020 remained as low
as 2.9%. We will make further improvement efforts byintroducing the practices of business sites where waterreuse/recycling is actively promoted to other sites.
The total amount of water discharge at our production
sites in FY2020 decreased by around 11% from the FY2019
level mainly due to the lower plant operation rate as aresult of the spread of COVID-19 infection. Non-production
sites achieved a reduction of around 5% due to an increasein the number of work-from-home employees. We willcontinue our efforts for further improvement.
* For details of the Sixth Medium-term Environmental Conservation Plan, please see below.
https://www.nidec.com/en/sustainability/environment/system/overview/

Pursue product safety and quality
Basic stanceAs the world’s leading comprehensive motor manufacturer,
Nidec has a duty to contribute to building a safe, secure, andsustainable social infrastructure by providing environmentfriendly products. To fulfill this duty, it is necessary to establish
a supply chain that enables the continuous reduction ofenvironmentally hazardous substances in each product. As
applications of our products are rapidly expanding, ourpresent tasks are to formulate uniform material procurement
standards to stabilize the environmental performance ofour broad range of products at high levels, and to establish
a rating system of environment-friendliness of purchased
parts and components based on the standards.
Moreover, now that the automotive products businesshas developed into a major segment accounting for over
20% of our consolidated net sales, in order to satisfy all
the quality needs of car manufacturers, it is important tohave globally uniform methods of quality management andquality assurance. To strengthen the cross-departmental
management of the automotive business covering all
automotive products, we plan to establish an overall quality
control organization and system by FY2025.
Meanwhile, risks associated with our automotive-related
products have been increasing in line with the expansionof our market presence. The safety of automotive products
is a matter of the highest priority with respect to human
lives. We will conduct strict safety assessments of finishedand in-process products (mainly newly developed products)
to prevent the quality failure of any of the automotive
products Nidec provides from having a significant impact.

Respond to changes in thetechnological environment andthe industrial structure
Basic stance
The COVID-19 pandemic has been accelerating the paceof changes in technologies, while the powerful trend
toward carbon neutrality is dramatically transforming theindustrial structure. Nidec expects new Five Big Waves insociety and recognizes the importance of advancing
product development and improving the business portfolio
in response to the new waves. While actively promoting thedevelopment of new products adapting to the Five Big
Waves, we will also continue to pursue the high efficiency
and miniaturization of motors that contribute to energy
and resource saving in line with the globally accelerating
movement toward decarbonization.
Materiality Phase 2 KPI	Continuously launch new products that lead the Five Big
Waves to resolve social issues.

Materiality Initiatives

Basic stance	Continue to pursue the high efficiency and miniaturization of
motors that contribute to energy and resource saving.

Materiality Phase 2 KPI	Create a database for chemical substances contained in products to make it easier for the development department todetermine the choice of materials, and shift to an environment-oriented development system.
	Implement quality management reforms in the automotiverelated 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.

INTEGRATED REPORT 2021

Manage waste and hazardous waste

40

Products

Human Resources

Employees

To promote active product development in the fields of theFive Big Waves, a major market trend based on social issues,
and achieve the sustainable development of the company,
technological collaboration among R&D organizations isnecessary to link the social needs to the sustainable
development of the company. Nidec’s research anddevelopment centers are the functions to conduct suchbroad and integrated R&D activities. The Nidec Researchand Development Center, Japan and the Nidec Researchand Development Center, Taiwan are company-wideorganizations transcending the boundaries of Business
Units, and engage in research on elemental technologies
for motors in general. The Nidec Center for Industrial
Science established in 2018 conducts research anddevelopment focusing on advanced production technologies beyond the existing framework of manufacturing, withthe aim of strengthening the manufacturing foundation andcreating globally useful technologies through networking
with universities, research institutions and companies.
All these research centers are headed in the common
directions of miniaturization and high efficiency andenergy saving, which are also the major approaches to
the Five Big Waves. For example, for the decarbonization
wave, the EV traction motor system E-Axle, which supports
the dissemination of EVs, will be the driving force, while
HDD motors and cooling devices (vapor chambers, etc.)
will play key roles in the waves of digital data explosion
and 5G & thermal solutions. Further reduction of the size
and weight of these strategic products will contributesignificantly to improving the energy efficiency of the final
products of our customers in which these components will
be installed, and reducing the amounts of resources usedin them.
Furthermore, we will formulate a roadmap to continuously
launch new products in an effective manner and visualize
the amount of social contribution of each product. Throughthese efforts, we will solidify the base of development that
supports Nidec’s sustainable growth.

NIDEC CORPORATION

Major products in the Five Big Waves fields

41

Carbon neutral society

EV traction motor system E-Axle
Automotive motor

Power saving andpost-COVID-19 pandemic

Refrigerator compressor
Home appliance motor

Manpower saving

Automated guided vehicle
AC servo motor
Reducer
Motor for drones

5G & thermal solutions

Heat pipe / Vapor chamber
Fan motor

Digital data explosion

HDD motor for digital servers

Protect and utilize intellectual
properties

Retain and develop diverse talent

Basic stance

Maintain and foster globally competitive human resources

Nidec aims to contribute to businesses through the creationof intellectual added value, and endeavors to improve thevalue of its intellectual properties by establishing andreinforcing a professional IP organization and an internationallycompetitive IP portfolio. We believe that effective patents
can be achieved through the integrated three-party system
based on close collaboration among the business, R&D andintellectual property departments under a management
policy of carefully cultivating individual invention ideas. To
encourage the “work smart”, one of our Three Essential
Attitudes, by engineers to create ideas and know-how for
new technologies, Nidec has an awarding system torecognize efforts to develop inventions and contributions tobusiness. At the same time, Nidec respects the intellectual
property rights of other companies, receiving licenses ortechnologies from them as necessary or allowing them touse our intellectual property rights, thereby promoting
multiple utilizations of intellectual properties.
At present, Nidec’s target consolidated net sales in FY2025
are 4 trillion yen. To achieve this target, we must enter newmarkets. To this end, our group companies are engaged incross-departmental research and development activities
in line with the new medium-term strategic goal Vision 2025,
creating new technologies adapted to upcoming social andbusiness changes, such as decarbonization, power saving
and manpower saving. And to protect these technologies
and maintain competitive advantages, we will develop an
IP portfolio suited to our future businesses and advancethe portfolio transformation by continuously evaluating
the value of our intellectual properties. Based on thisapproach, we will set KPIs and conduct IP-related activities.

Basic stance

Developing global human resources

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

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

FY

Training programs2017

 ext-Generation Global Business Leader Training ProgramN
started.
Overseas trainee program started.

2016

Nidec Global Business School opened.

2015

 agamori Business School established.
NNidec Motor College started.

2013

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

2012 rofessional skills training programs for engineers, sales
P
staff, etc. started.
Challenge seminars, online education programs, etc. started.
(Training themes: strategic thinking, leadership, negotiation
skills, etc.)2010 ompany-wide TOEIC test started for all employees (twiceCa year).
English study seminars held at each business site.

Materiality Phase 2 KPI	Transform our IP portfolio to one that responds to social andbusiness changes, including decarbonization and power andmanpower saving, and use the new IP portfolio.

Framework for IP activities and global bases
Business strategies

R&D strategies

Next Generation Global Business Leader Training Program

Integrated
three-party system
Intellectual
property strategies

Intellectual Property
Department
Overseas base

Nagamori Business School

INTEGRATED REPORT 2021

Research and development to support thesustainable growth of the company

Materiality Initiatives

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

42Human Resources

Promote occupational safety and health, and health-oriented
business management

The Nidec Group recognizes diversity as a source of competitiveness. In conducting businesses globally, we believethat we can effectively respond to a rapidly changing
business environment and customer needs by respecting
and accepting the differences among individuals and making
the best use of such differences.
The Nidec Group has its development, production, sales
and research sites all over the world, where diverse humanresources are actively working. We are committed to hiring
talented, motivated individuals regardless of their personal
characteristics and values, while working to establish evaluation and promotion systems and a working environmentthat allow employees to fully exercise their potential abilities.
Meanwhile, although female managers have beensteadily increasing at Nidec, we are aware of the need to
implement measures to improve the ratio of managerial
positions held by women, and promote the active participation of female directors. As the company has so far focusedon developing systems and an environment contributing
to the improved productivity and career development of
employees, our next task is to operate and promote systems
that are tailored to diverse employees. In addition, to build
a foundation for the medium to long term for employees
to bring the best out of themselves, enhanced efforts are

required to promote the health of the employees andencourage them to autonomously think about their career
paths and take action. In view of these tasks, Nidec
released the plans below (non-consolidated) in March 2020.
	Raise the ratio of managerial positions held by women to
8% by FY2020, and increase the number of female directors
to two or more by FY2021.
	* As of the end of FY2020: 5.7% of all managerial positions held by women,
three female directors

	Raise the percentage of employees using one of the threesystems (home working, staggered shift work, and by-thehour annual paid days-off systems) to 40% or more by FY2022.
* As of the end of FY2020, 29%, 24% and 45% of all employees used working from
home, staggered shift work and by-the-hour annual paid leave system, respectively

	Raise the percentage of male employees taking childcare
leave to 10% by FY2025.
* As of the end of FY2020: 9.0%

The percentage of managerial positions held by womenwas 5.7% at the end of FY2020, failing to reach the target of
8%. We will continue to make efforts to achieve a percentage
of 8% or higher for managerial positions held by womenby the end of FY2022.

Efforts to promote female empowerment
Phase 1

Phase 2Phase 3

Support work-life balance

Support active participation

Active participation

2005

Started efforts to promote
female empowerment
Launched measures to support
work-life balance

2015

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

2020

Enhanced training programs
Enhanced and operated talentmanagement

2007

Established a system to promote
activities at each business site

2008

NIDEC CORPORATION

Organized lectures for careeradvancement, workplace gatherings, and a role-model development project43

Basic stanceThe declining working population is a social challenge forthe world, including Japan. Companies are required to takegood care of their limited labor resources by supporting
the health management of individuals, and thereby help tomaximize the value of their human resources. To this end, it
is crucial to create a working environment where employees
can be motivated and productive.
The Nidec Group declares in its CSR Charter, “Based oncooperation between our management and employees,
we strive to ensure workplace safety and good health toestablish a work environment that brings out the best in eachindividual.” Nidec’s health-oriented business management isbased on the promotion of making a safe and comfortable
work environment, and securing the safety and good healthof its employees.
Nidec released the Declaration on Promoting Good
Health in June 2020 to announce its determination toenhance “health and productivity management,” and thecompany was certified as an Outstanding Health andProductivity Management Organization 2021 (in the large
enterprise category) by the Ministry of Economy, Trade andIndustry (METI) in March 2021. In addition, Nidec has set
up a cross-departmental Health Promotion Committee toenhance systems for health management and promotion,
while organizing health seminars by industrial doctors andconducting a health awareness survey on all employees,with the aim of improving the health literacy of employees.
Furthermore, with the aim of achieving a total smoking ban
at all operation sites by the end of FY2021, Nidec is currently
promoting a partial smoking ban with understanding of
the importance of health and productivity management. By
promoting health and productivity management, we will
improve our competitiveness and corporate value.

Materiality Phase 2 KPI	Check safety activities at production sites where the lost-timeinjury frequency exceeds the average BU rate: Six sites or more(per year).
	Carry out a remote safety check: Six sites or more (per quarter).
	Receive certification as a White 500 Company (in the large enterprise category) under the 2023 Certified Health & Productivity
Management Outstanding Organizations Recognition Program.

SafetyTo build a safe and comfortable work environment, all groupcompanies’ business bases, including newly built bases andthose that newly joined by way of M&A, place the highest
priority on the safety of their employees and promote
safety activities. The Nidec sites in Japan have a safety andhealth committee in place to discuss measures to secure
the safety of all the sites, including plants. Our goal is tomaintain a safe working environment and achieve a zero
lost-time injury frequency rate.
Lost-time injury frequency rate
(Frequency rate)
1.4
1.2

2016

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

2017

Nidec’s Declaration on Promoting Good Health

Employees participating in a project activity

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

Proposing measures to top executives

The Nidec Group, which considers its employees’ good
health and work satisfaction to be important sources of
its business management, promotes actions for a “healthoriented management.” Good health is extremely precious
for an employee and his/her family. In addition, ouremployees’ lively and continued action to achieve successwill form the basis of Nidec as a “company that grows
sustainably for the next 100 years.” We hereby declarethat we will work in good health, which will constitute an
infrastructure for our employees and their families tosupport the next-generation society, so that each employee
can continue to work with passion and enthusiasm todemonstrate his/her highest-level performance.
June 2020
Shigenobu Nagamori

The Nidec Group representative

1.20

1.15

1.20

1.21

1.02

1.0

0.78
0.8

0.64

0.6

0.4

0.4

0.4

0.1

0.2

0
0.0

Poster for the Positive Action campaign

Materiality Initiatives

Basic stance

2016

Whole Nidec0
2017
Non-consolidated

2018

2019

2020

(FY)

Manufacturing industry in Japan (average)*L ost 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.

INTEGRATED REPORT 2021

Promote diversity

44Supply Chain

Responsibility for the entire supply chain

https://www.nidec.com/en/sustainability/social/humanrights/

HealthBasic stance

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

Recognizing the importance of considering human rights inglobal business environments, Nidec upholds internationalguidelines such as the UN Guiding Principles on Business andHuman Rights, the UN Global Compact, the UN Universal
Declaration of Human Rights, and the ILO Declaration on
Fundamental Principles and Rights at Work in response todiversifying human rights-related issues. The Nidec GroupCSR Charter provides for respect for human rights, while the
Nidec Group Declaration on CSR Conduct, which complements the CSR Charter, prohibits forced labor, child labor, anddiscrimination and inhumane treatment, and guarantees
proper wages, work hours, non-work days, leaves, freedomof association, and the right to collective bargaining.
At present, the Nidec Group has over 300 operationsites in 43 countries and regions, as well as several times
that number of business partners supporting our businessactivities in each country/region. Many of the key plants
and their supplier plants are operating in countries where
the legal systems to protect human rights are said to be
insufficient. Most of the labor and ethical problems arising
at workplaces these days are said to be attributable toinadequate management of human rights. It is importantfor companies to be aware that they are responsible for not
only human rights issues inside their business sites, but also
labor and ethical issues arising in their supply chains. As acompany conducting business activities across various
countries, religions, customs and cultural values, the Nidec
Group recognizes its role to uphold policies at the head
office and take the initiative, and has set as a KPI: Clarify
human rights policies for workers including those in the
supply chain, and spread them among employees. We aredetermined to fulfill our responsibility in respecting humanrights, and advance efforts to create safe and secure workplaces where diverse human resources can play active roles.

Health management promotion system
Collaboration
Management(Executive Management
Meeting, etc.)

Health insurance union

Report anddeliberation

Health Promotion
Committee

Leader: Director in charge ofhuman resources

Industrial doctors
Occupational health& safety staff

Execution andpromotion

Business sites andemployees

NIDEC CORPORATION

Response to COVID-19

45

Employees’ association(representing employees)

Nidec considers ensuring the safety of its employees andbusiness partners as its highest priority, and is committed
to the continuous provision of products and services,while striving to prevent the transmission of COVID-19
inside and outside of the company. In January 2020, Nidec
set up a crisis management headquarters to organize theprocedure in the event that infection occurs, formulate
and implement measures to prevent infection within its
business sites, and establish policies according to the
medical system and infection status of each country. The
company encouraged employees to make full use of thework-from-home and staggered work shift systems as
measures to prevent infection. To minimize the impact in thecase of infection, zoning of business sites, temporary closureof cafeterias, and strict control of individuals who may havecontact with an infected person and other measures arealso flexibly employed according to the situation. Also,
workplace vaccination is provided for employees in Japanand their family members, thereby ensuring a workplaceenvironment where employees can feel safe in fulfilling theirduties. Amid the expected “with COVID” environment, theNidec Group will continue to take concerted action promptly
and appropriately in cooperation with all relevant parties.

Materiality Phase 1 KPI	Clarify human rights policies for workers including those in
the supply chain, and spread them among employees.

Specific actions
The Nidec Group’s human rights-related risk assessment
is focused primarily on Asia, where more than 70% of its
employees operate. In partnership with a third-party
certification organization, we regularly implement audits
at our major factories in Asia, using the set of standards
substantially equivalent to the RBA Code of Conduct.* The
audit encompasses the seven essential dimensions ofhuman rights, including at-will employment, child/younglabor, and work hours.
* RBA (Responsible Business Alliance) is an organization established for the purpose of solvingsocial, environmental and ethical issues in the supply chains of the electronics industry.

Build an internationally competitive supply chain tosolve social issues
Sustainable procurement considering environmental and social aspects
Basic stance

CSR audit of business partners

Working in collaboration with its business partners, theNidec Group promotes CSR activities throughout theentire supply chain. To ensure that our business partners
fulfill their corporate social responsibility, we require themto comply with the Nidec Group CSR Charter in basic business
contracts with them. Additionally, in the Nidec Group SupplyChain CSR Promotion Guidebook, we describe specificstandards based on the pillars of the CSR Charter, and sharethem with our business partners.
We set sustainable procurement considering environmental and social aspects as a new materiality theme.
Through the procurement activities considering social
aspects, such as prohibiting child labor and forced laborand eliminating long working hours, and environmental
aspects, such as energy consumption by suppliers, bio
diversity, and utilization of waste/resources, we ask business
partners for their further cooperation.

Since FY2010, the Nidec Group has audited its main business
partners on-site. In FY2020, the Nidec Group audited 138
of its business partners on-site in Asia and other regions.

CSR procurement flow
1 Work sincerely andhonestly

2 Respect human rights

and labor

3 Coexist harmoniously

Nidec
Purchase materials
and components

with the environment

Business
partners

4 Ensure occupationalsafety and hygieneSale

5 Maintain good relations

with society

6 Management system

Holding CSR seminars at major sites
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 haveconducted CSR seminars for purchasing personnel based on
the Nidec Group Supply-Chain CSR Promotion Guidebook.
In FY2020, to prevent COVID-19 infections, lectures were
held in the forms of e-learning and remote classes, attended
by 169 people.

Number of participants in
the CSR seminar forpurchasing personnel

FY2018FY2019FY2020

434

308

169

Materiality Initiatives

Respect human rights and follow
proper labor practices

https://www.nidec.com/en/sustainability/social/supplychain/partner/

Nidec Electronics (Thailand) Co., Ltd. held a session to
explain the Responsible Business Alliance (RBA) to ensurethat all of its business partners understand Nidec’s CSR.
Nidec Electronics (Thailand) also held presentation meetings
on CSR procurement for its major business partners, andaudits them on-site based on the results of advance survey
sheets. Since FY2013, our CSR audit standard has been
based on the RBA. In FY2020, we launched activities withthe target of requesting 121 of our business partners tocomply with the CSR audit standards.

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

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

FY2018FY2019FY2020

705

672

698

INTEGRATED REPORT 2021

Human Rights

46

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

Create a solid governance system

Corporate governance structure

Build a fair, transparent and highly effective governance system
Appoint / Dismiss

Separation ofsupervision andexecution

NIDEC CORPORATION

Outside members of
the Board of Directors

47

2011

2012

Outside directors’
meeting(informal meeting)Board of Directors
Effectiveness evaluation

Audit & Supervisory
Committee
Members of theCommittee

Cooperate

Chairperson
Director in chargeof CSR
Secretariat
Investor Relations & CSR
Promotion Department

ReportRisk Management
Committee

Cooperate

CSR Committee

Audit / Supervise

2

Audit / Supervise

Members of theBoard of Directors

Compliance
Committee

Investor Relations &CSR Promotion Dept.

Risk Management OfficeInternal audit

Corporate Administration& Internal Audit Dept.

Group
companies

Sites

Accounting
Auditor

Audit

Executive
Management
Meeting

Materiality Initiatives

Execution ofbusiness operations

Information Security
Management Office

5Management
Committee

Cooperate
(FY)
2013

2014

2015 2016 2017 2018 20192020

Corporate Philosophy and Action Principles

2021(Mission Statement, Governance Policy, Policy Manual)Company with an Audit &Supervisory Committee(As of June 22, 2021)

1 Board of Directors

Status of operation

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

Outsidemembers of
the Board of
Directors
increased

Themes of deliberations at the Board of Directors meetings

Further improve
effectiveness of
the Board of
Directors

Themes ofdeliberations/
reports at theBoard of Directors
meetings(FY2020)

FemaleAdvisory committee for
the Board of Directors

Board of Directors

Appoint / Dismiss

Superviseremoval process of directors.
2 	Improve the effectiveness of the Remuneration Committee, andensure the objectivity and transparency of remuneration decisions
for directors.

Outside directors
Male1	Nominating Committee / Remuneration Committee

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

Improve diversity

Consult

Information
Security
Committee

1 	Increase transparency and fairness in the appointment andExecutive officer system introduced

Improve theeffectiveness ofmanagement
oversight andtransparency indecision making

Report4

6

	Board of Directors
1 	Continue to have the effectiveness of the Board of Directors
evaluated by a third party.
2 	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.

Enhance the supervisory function of
the Board of Directors and improve
the soundness and transparencyof business management.

Female outside
members of
the Board of
Directors
introduced

Remuneration
Committee
Members of theCommittee

Representative Director and Chairman

Materiality Phase 1 KPICompany with an Audit & Supervisory Board

Outsidemember of
the Board of
Directors
appointed

FemaleRemuneration Committee

Category

Percentage

Financial results

42.4%

Individual matters

33.9%

Compliance, risk management, internal control

7.6%

Business strategies, sustainability, governance

6.8%

M&A

6.8%

Shareholders’ meeting, shareholders

2.5%

INTEGRATED REPORT 2021

Board of Directors
system design

2010

3

Appoint / Dismiss

Legal &
Compliance Dept.

internationality, gender, etc. Going forward, when selecting
candidates for the Board of Directors, Nidec will continue
to take into account, among others, the balance of theknowledge, experience and qualifications of the Board of
Directors as a whole, and the number of its members
based on its diversity in gender, career history, age, etc. andon Nidec’s business scale.
Based on the understanding that corporate governanceis one of the highest-priority issues for the sustainablegrowth and improved corporate value of the company, we
will make persistent efforts to enhance and improve therelevant systems.

History of Nidec’s corporate governance2008 2009

Male

Shareholders’ Meeting

Basic stance
The purpose of corporate governance of the Nidec Group
is to become a conscientious and principled company thatearns society’s trust, and to increase corporate value sustainably based on the motto, “High growth, high profit, andhigh share price.” To this end, we maintain and enhance ourinternal control, run our business healthily and efficiently,
and disclose information appropriately to increase thetransparency of the company’s business operations.
Nidec became a company with an Audit and Supervisory
Committee in 2020, and has been working to enhance
the supervisory function of the Board of Directors bysetting up a Remuneration Committee. To further improvethe effectiveness of the Board of Directors, we will consider
introducing effectiveness evaluation of the Board of
Directors by a third-party organization and setting up a
Nominating Committee.
Nidec is also committed to ensuring the independence
and diversity of the Board of Directors. The Board of Directorsof Nidec comprises nine members, including five outside
members. All nine members are individually selected with agood balance, based on their knowledge, experience andqualifications in a diversity of areas, as well as on Nidec’s
businesses, business environment, and the like. The members
include those with broad experience of working overseas,
as well as women, in order to secure diversity in terms of

Outside member ofthe Board of Directors

Internal member ofthe Board of Directors

48

Governance

Questionnaire survey on the effectiveness of theBoard of Directors (efforts and evaluation)
Efforts made in FY2020

	Executive directors provided a business overview for members of existing informal meetings (for Outside Membersof the Board of Directors who are not members of the
Audit and Supervisory Committee, and Members of theBoard of Directors who are members of the Audit andSupervisory Committee).
	Promoted understanding of our business at informal
meetings (explanation of the business and online plant tour)

Summary of FY2020 evaluation results	Evaluated appropriate in that the Board of Directors’
meetings on the whole functioned sufficiently and that
discussions and operation of the Board of Directors’
meetings have been improved, in addition to the composition, frequency and length of the Board of Directors’
meetings and the quality of information and explanation
provided thereat

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

Composition of members and the chairperson
Total committee
members

Full-time members

Internal Members of
the Board of Directors

Outside Members of
the Board of Directors

Chairperson

5

2

2

3

Internal Member of theBoard of Directors

Composition

Efforts that have been made in FY2021
	Take measures to ensure that proposals andexplanation materials be submitted by the deadline
so that sufficient time can be taken for examination
concerning the operation of internal meetings ofthe Board of Directors.
	Continue to provide advance explanation for
Outside Members of the Board of Directors so thatthey can be provided with sufficient informationand opportunities for discussion.
	Promote understanding of our business bymembers of informal meetings (explanation ofbusiness overview by executive directors, advance
explanation, and online plant tours).
	Examine information provided by investors andother stakeholders at informal meetings so thatsufficient discussions can be held at Board of
Directors’ meetings.

Cooperation between the Audit and Supervisory Committee and accounting auditors

In addition to quarterly meetings, the Audit and Supervisory Committee and the accounting auditors meet whenevernecessary. In these meetings, they exchange information and opinions on audit results, audit systems, audit plans, audit
implementation status and the like. In FY2020, the accounting auditors were invited to six meetings of the Audit andSupervisory Committee to closely exchange information.

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

The Corporate Administration & Internal Audit Department, Nidec’s internal audit department, regularly reports to the
Audit and Supervisory Committee on the results of the Nidec Group’s internal audits. The department also exchanges
opinions and shares information with the Audit and Supervisory Committee as necessary, and conducts on-site audits at
the request of the Audit and Supervisory Committee.
3 Remuneration Committee
The Remuneration Committee consists of two internal members and three outside members of the Board of Directors,
headed by Jun Seki, Representative Director and President (Chief Executive Officer) as the chairperson. The Committee
members discuss basic policies and systems for remunerations of directors in response to consultation from the Boardof Directors, and reports the results back to the Board of Directors.
4 Various committees
Name

Skills matrix

Businessstrategy

Technology
and R&DInternationality,
globalexperience

Human
resourcesdevelopment

Environmentand society

Legal affairs,
compliance

Finance andaccounting

Governance,risk
management

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, issue punishments for delays or
negligence in reporting, and submit 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 and Group companies formulate and carry out their respective annual risk management plans.

Compliance Committee

The Compliance Committee is placed under the Board of Directors to discuss and decide basic compliance policies 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 two months and the Legal & Compliance Department serves
as the secretariat for the meetings.

Information Security
Committee

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

CSR Committee

The CSR Committee is placed under the Board of Directors and is headed by Hidetoshi Yokota, Senior Vice President (chief
financial officer) in charge of CSR, who has been appointed by the Board of Directors as the chairperson. The chairperson
and the committee members appointed at each site discuss and make decisions on CSR activity policies and annual plansand other important matters. Matters decided at the CSR Committee meetings are reported, or discussed if necessary, at
the Board of Directors’ meeting, and are put into action by the Investor Relations & CSR Promotion Department, which
serves as the dedicated secretariat, in cooperation with business sites inside and outside of Japan.

Shigenobu Nagamori
Jun SekiKazuya Murakami
Hiroyuki Ochiai
Teiichi Sato

NIDEC CORPORATION

Osamu Shimizu

49

Takeshi Nakane
Aya Yamada
Takako Sakai

Description

Risk Management
Committee
Professional skills and experience required of members of the Board of Directors  * Maximum of three

Name

Materiality Initiatives

Annually, Nidec sends out questionnaires to all members of theBoard of Directors, including Outside Members, on the effectiveness of the Board of Directors’ meetings, and the Board of
Directors discusses, analyzes and assesses the results of thequestionnaires. Based on the results of the questionnaires,
Nidec formulates measures for constant improvement.

	Problems found include inappropriate timing of provisionof materials for meetings, and insufficiency of efforts torealize the medium- to long-term plan and analysis of thecause of failure to achieve targets.

5 Executive Management Meeting
The Executive Management Meeting convenes once a month to assess the present state of business and determine thenext course of action, based on the monthly performance data and outcome of discussions at respective meetings whereimportant group-wide concerns are shared among administrative departments, subsidiaries and business units.
6 Management Committee
The Management Committee, the consultative body to the Representative Director and Chairman, is held and chaired by
the President and Chief Executive Officer twice a month in principle to discuss overall operational directions, plans andother important considerations in the execution of business.

INTEGRATED REPORT 2021

Effectiveness evaluation of the Board of Directors

50

Governance

Board ofDirectors

Audit &
Supervisory
Committee

Remuneration
Committee

Activities

Mr. Sato has held prominent posts at the Ministry of
Education, Culture, Sports, Science and Technology ofJapan, the Japan Society for the Promotion of Science,and other organizations. He will provide Nidec withadvice on its overall business matters based on hishigh level of expertise, which will further enhance thecompany’s corporate governance function.
Since he meets all the requirements for independent
directors from the past to the present in accordancewith 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.

22

－

1

Osamu Shimizu

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

20－

He actively provides opinions at the Board of
Directors’ meetings based on his experienceand deep insight in a broad range of fields,
including human resources development. He is
also a member of the Remuneration Committee
established as a consultative body to the Boardof Directors of Nidec in February 2021. He plays
an important role in ensuring the transparency of the process to decide remunerations
for directors, and determining the adequacyof the remunerations, thereby overseeing
the management from an independent andobjective standpoint.

1

Takeshi Nakane

Mr. Nakane has held prominent posts at the Ministry ofForeign Affairs of Japan and other organizations. His
advice based on his abundant experience and expertisefrom an independent position will help the Board of
Directors strengthen its decision-making and audit andsupervisory functions.
Since he meets all the requirements for independent
directors from the past to the present in accordancewith the regulations of the Tokyo Stock Exchange,
Nidec judged that there were no potential conflicts ofinterest between him and the ordinary shareholders,
and therefore designated him as a member of theBoard of Directors who is also a member of the Audit
and Supervisory Committee.

22

15

－

He actively provides opinions at the Board of
Directors’ meetings based on his abundant
experience in the fiscal and monetary fields,
and also from the professional perspective of alawyer. He is also a member of the Remuneration
Committee established as a consultative bodyto the Board of Directors of Nidec in February
2021. He plays an important role in ensuring
the transparency of the process to decide
remunerations for directors and determining
the adequacy of their remunerations, thereby
overseeing the management from an independent and objective standpoint.

Ms. Yamada currently works as a professor of the
Graduate School of Law, 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,”
held by Kyoto University Graduate School of Engineering.
The amount of the donation, 1.3 million yen in fiscal 2016
(compared to the total amount of donation to the university during the same fiscal year, of 4,756 million yen), 49
million yen in fiscal 2017 (compared to a total of 4,848
million yen), 45 million yen in fiscal 2018 (compared to
5,163 million yen), 39 million yen in fiscal 2019 (comparedto 5,352 million yen), and 39 million yen in fiscal 2020, is
insignificant compared to the total amount of donation
to the university. In addition, given that Ms. Yamada’s
department is not the one to whom Nidec made its
donations, and that Ms. Yamada is not in a position torepresent the university, Nidec believes there is no conflictof interest between Nidec and Ms. Yamada, and therefore
there is no problem regarding her independency.

16

Ms. Sakai currently works as a professor of the
Graduate School of Economics, Osaka Prefecture
University. Her advice, based on high-level expertiseas a university professor from an independent position,
will help the Board of Directors strengthen its decisionmaking and the audit and supervisory functions.
Since she meets all the requirements for independent
directors from the past to the present in accordancewith the regulations of the Tokyo Stock Exchange,
Nidec judged that there were no potential conflicts ofinterest between her and the ordinary shareholders,
and therefore designated her as a member of theBoard of Directors who is also a member of the Audit
and Supervisory Committee.

17

Takako Sakai

NIDEC CORPORATION

Status of attendance(number of meetings attended)

Teiichi Sato

Aya Yamada

51

Reasons for appointment

10－

He actively provides opinions at the meetingsof the Board of Directors and the Audit andSupervisory Committee based on his abundant
experience and broad knowledge of foreign
policy from an independent and objective
standpoint, fulfilling the supervisory functionof management. As a member of the Audit andSupervisory Committee, he also contributed toaudits by the Audit and Supervisory Committee
on the execution of duties by members of theBoard of Directors.

She actively provides opinions at the meetingsof the Board of Directors and the Audit andSupervisory Committee based on her high-level
academic expertise as a professor in the fieldof law from an independent and 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 and Supervisory Committee on the execution of duties bymembers of the Board of Directors.

The 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
through day-to-day communication. With regard to themeetings of the Board of Directors, the General Affairs
Department provides all members of the Board of Directors
with materials related to the proposals for the meetings
and accounting information, at the latest one day before
the day of 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 andSupervisory Committee is held, meeting notices are sentout to all the Audit and Supervisory Committee Members by

Executive remuneration
1. Policies on remuneration for Members of the Board of Directors
1 Basic policy

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

1

She actively provides opinions at the meetingsof the Board of Directors and the Audit andSupervisory Committee based on her high-level
academic expertise as a professor in the field oftaxation and accounting from an independentand objective standpoint, fulfilling the supervisory function of management. She is also amember of the Remuneration Committee
established as a consultative body to the Boardof Directors of Nidec in February 2021. She
plays an important role in ensuring transparencyof the process to decide remunerations for
directors and determining the adequacy of theirremunerations. As a member of the Audit andSupervisory Committee, she also contributed toaudits by the Audit and Supervisory Committee
on the execution of duties by members of theBoard of Directors.

*1 During the fiscal year under review, the Board of Directors held 22 meetings, the Audit and Supervisory Committee held 10 meetings, the Audit & Supervisory Board before transition
to the Audit and Supervisory Committee held five meetings, and the Remuneration Committee met once.
*2 The number of meetings of the Audit and Supervisory Committee attended by Takeshi Nakane includes five meetings of the Audit & Supervisory Board.
*3 A ya Yamada and Takako Sakai were newly appointed at the 47th Annual General Meeting of Shareholders held on June 17, 2020. After this, 17 meetings of the Board of Directors and
10 meetings of the Audit and Supervisory Committee were held during the fiscal year under review.

2 Composition of the remuneration

	Outside Members of the Board of Directors (excluding those
who are 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

	Increase motivation toward improving corporate value;of the Audit and Supervisory Committee)

	Contribute to securing talented managerial human	Fixed remuneration : Variable remuneration (bonuses) :resources; andPerformance-linked share-based remuneration = 3 : 1.5 : 1

	Ensure that the level of the remuneration is appropriate
for the scale and area of Nidec’s businesses.
Remuneration type10

three days prior to the day of the meeting, while documents
related to the proposals to be deliberated in the meetingof the Audit and Supervisory Committee are sent to themembers, at the latest one day before the meeting. After ameeting of the Audit and Supervisory Committee, meeting
minutes are sent to all Audit and Supervisory Committee
Members. Furthermore, for Outside Members of the Boardof Directors who are Audit and Supervisory Committee
Members, various information is reported and provided asnecessary by full-time Audit and Supervisory Committee
Members and Nidec’s executive officers.
Outside Members of the Board of Directors who are notmembers of the Audit and Supervisory Committee haveinformal meetings with the Audit and Supervisory Committee
members, where various information is provided by Nidec’s
executive officers. They also visit the field sites of subsidiaries.

Materiality Initiatives

Name

Support systems for Outside Members of the Board of Directors

Description

Payment method

Fixed remuneration

Determined based on job rank

Monthly in cash

Variable remuneration(bonuses)	Degree of achievement of the target consolidated net sales and consolidated operating profit of theprevious 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 and the amountof 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,
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.

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

INTEGRATED REPORT 2021

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

52

Governance

Cross-shareholding

2. T otal amount of remuneration by category of directors and by type of remuneration, andthe number of eligible directors

Policy for cross-shareholding

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

122

132

–10

－

7

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

25

25

－

－

2

Audit & Supervisory Board members (excluding
outside members)

9

9

－

－

2

Outside directors

34

34

－

－

7

Criteria for exercising voting rights for cross-shareholding

Fixed
remuneration

Performance-linked
remuneration

Retirement
benefits*1 The figures above include five members of the Board of Directors and two outside members of the Audit & Supervisory Board who resigned during the fiscal year under review.
*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 of expenses recorded for the fiscal year under review according to the Japanese standard are provided above. Outside members of the Board of Directors are notcovered by the system.
*3 The target period of the performance-linked share-based remuneration system is three years from the fiscal year ended March 31, 2019 to the fiscal year ended March 31, 2021,
which was the remaining period of the Vision 2020 medium-term strategic goal. The fiscal year under review is the final year of the period. Since the amount of the performancelinked share-based remuneration including the portion linked to the medium-term performance is finalized in the final fiscal year, the amount of the performance-linked sharebased remuneration finalized during the fiscal year under review is less than the total accumulated amount calculated as of the end of the previous fiscal year. Therefore, theamount of difference is provided in the table above.
*4 Based on the resolution at the 47th Annual General Meeting of Shareholders held on June 17, 2020, the company became a company with an Audit and Supervisory Committee on
the same day.
*5 The amounts and numbers of recipients of the remuneration received as members of the Audit & Supervisory Board and the remuneration received as members of the Board of
Directors who are members of the Audit and Supervisory Committee during the fiscal year under review are provided separately.

3. Total amount of consolidated remuneration, etc. of each director
Not provided as there are no individuals whose total amount of consolidated remuneration, etc. is 100 million yen or more.

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,
the Group has compiled its basic policies related to internal
control as the “Nidec Policy Manual.” Through the auditing
activities of the Corporate Administration & Internal Audit
Department, the Group aims to maintain and improve theeffectiveness of its internal control over financial reporting
required by Article 24-4-4, Paragraph 1 of the Financial

Instruments and Exchange Act. In addition, the Legal &Compliance Department, the Risk Management Committee,
the Information Security Committee and the CSR Committee
are organized under the Board of Directors, under which
the Legal & Compliance Office, the Risk Management
Office, the Information Security Management Office, andthe IR & CSR Promotion Department are placed as thesecretariat respectively, working to create a corporate culture
and enhance management systems for internal control.

NIDEC CORPORATION

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, haveWith 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 ofwhether appropriate governance and compliance structures
are in place at investee companies.

(Basic views on exercising voting rights)

With regard to the individual proposals submitted to theshareholders’ meetings of the companies Nidec invests in,

Nidec decides to vote for or against after confirming thefollowing points: whether the proposals suit the purposesof the shareholding which are to maintain and strengthen
the trade and cooperation relationships through medium-tolong-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

Internal control

53

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 theshareholding 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 cross-heldshares are not expected to bring significant benefits.

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

Category

Number of
eligible persons

Materiality Initiatives

Total amount by type of remuneration (million yen)sufficient 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.

Basic stance

Organization

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

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

Materiality Phase 2 KPI	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 take priority measures.
	Provide compliance education to all employees once a year.

INTEGRATED REPORT 2021

Total amount of
remuneration(million yen)54

GovernanceRisk management system

As part of the comprehensive, group-wide compliancesystem, we have established an internal reporting section(the Nidec Global Compliance Hotline) available for allboard members, executives and employees (including
regular and part-time employees, those dispatched fromoutside agencies, and limited-term employees). Fiscal 2020
saw a total of 116 cases of whistleblowing and consultations
made on suspected misconducts and harassment, among
others, a decrease of 26 cases from the previous fiscal year.
The status of internal reports is reported to the Board of
Directors and the Audit and Supervisory Committee on aregular basis.

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 areheld on such topics as cartels, bribery and human rights
issues, with the Regional Compliance Officers serving as
lecturers using the Nidec Compliance Handbook as teachingmaterial. The compliance seminar for board members andexecutives is also held once a year, with the invitation of an
outside lecturer.

The Nidec Group uses a medium-term business plan, which
is designed to realize the group’s long-term vision that isdefined as a set of specific numerical and qualitative targets,as a basis of the group’s business plan for each fiscal year.
The medium-term plan is formulated based on discussions
on its feasibility as a medium-term goal, consistency withthe long-term vision, and issues and risks to overcome for
its achievement. The plan may be revised (rolled) during its
execution phase according to changes in the market andthe status of progress.
We have also formulated the Risk Management Regulations
to establish a risk management system for the entire Nidec
Group, and have in place a Risk Management Committee
under the Board of Directors. Important information is
promptly reported and shared in the risk management
meeting held every morning, so that the information canbe utilized in our daily operations. It is also discussed andshared in the Management Meeting as necessary.

FY2018

Number of cases

106

FY2019142

FY2020116

The Nidec Group’s global compliance system

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 fire, at its sites both inside and outside Japan. As of
March 31, 2021, over 3,100 employees had participatedin the training. At the end of January 2020, we set up a
COVID-19 Crisis Management Headquarters, working torevise the company’s BCP based on the assumption thatthe pandemic would be prolonged.

Materiality Initiatives

Compliance seminars

Shareholders’ Meeting
Audit and Supervisory Committee

Working on specific compliance measures
for the entire Group

Board of Directors
Compliance Committee

Compliance Promoters are placed
in individual organizations under thesupervision of the Compliance Managers.

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

Compliance Managers and Promoters
Business Units

Administrative
departments

Group companies(including overseas subsidiaries)

Managers

Head of eachbusiness unit

Director in charge ofeach department

President

Promoters

GM of each organization/department

Legal & Compliance Department
Regional Compliance Officers

Addressing compliance issues unique
to individual countries/regions

Head of administrative department

Build a risk management system

NIDEC CORPORATION

Basic stance55

It is necessary and important to identify and manage risks
for the purpose of preventing the expansion of losses due
to lack of readiness for possible risks, loss of business
opportunities, decline of ratings, and other negative
impacts. Nidec has identified risks facing the Nidec Group,
clarified the relevant departments, and determined therisks that should be reduced in order of priority. The company
manages the progress of reducing the impact of such risks
on our business, while working to enhance its initiatives to
identify signs of risks.

Materiality Phase 2 KPI	All risks disclosed on the securities reports are evaluated by
the department in charge, and the risks to be addressed inpriority are identified.
	Reduce the impact of the risks to be addressed in priority on
our business.
Manage the progress of reducing such impact and any residual
risks.

Promote information security measures
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 and use
these information assets properly and appropriately.
Information that should be protected includes management
information, technical information, financial informationand personal information, which are extremely important.
Deterioration or leakage of any such information may leadto loss of trust in us from our customers or the market, as
well as a decline in our competitiveness. It may also resultin a legal penalty.
Based on this understanding, in 2019, Nidec appointed
a Chief Information Security Officer and set up an Information
Security Committee, under which an Information Security
Management Office was placed as a department dedicatedto information security. Also, each organization of the Group
has an information security manager and an information
security promoter in place to support the Group’s information security management.
Since FY2019, information security training has been
continuously provided for directors and employees. During
the information security enhancement month each year,
information on the theme for the year is communicated toraise the awareness of information security of directors
and employees.

We will continue to identify and assess rapidly changing
and increasing information security risks, and make efforts
to ensure the proper protection and use of our information
assets by operating effective systems appropriate forindividual risks under the Group’s information security
structure, with the aim of achieving the target of zero serious
security incidents.
Materiality Phase 2 KPI	Reduce the number of serious information security incidents
to zero.

Information security structure
Board of Directors
Information Security
Committee

CISO
Chief Information
Security Officer

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

Information Security Promoter
Each business unit, group company

INTEGRATED REPORT 2021

Internal reporting system

56

GovernanceManagement (as of November 1, 2021)
Board of Directors
Career summary

Career summary

July 1973	Founded Nidec Corporation,
Representative Director andPresident		
Chief Executive Officer (CEO)October 2014	Representative Director, Chairmanof the Board and President		
Chief Executive Officer (CEO)June 2018	Representative Director andChairman		
Chief Executive Officer (CEO)June 2021	Representative Director andChairman (current position)

Significant concurrent positions

Significant concurrent positions

Member of the Board of Directors and Chairman:
Nidec Sankyo Corporation
Nidec Techno Motor Corporation
Nidec-Shimpo Corporation
Nidec Mobility Corporation
Nidec Copal Corporation
Chairman of the Board, Nagamori Gakuen
Educational Foundation

Shigenobu Nagamori
Representative Director and Chairman
Remuneration Committee Member(Born on August 28, 1944)

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

Career summary

April 1986
Nissan Motor Co., Ltd.
April 2014
Senior Vice President
December 2019 Executive Officer, Vice-COO
January 2020	Special Executive Consultant, Nidec
Corporation
April 2020
President		
Chief Operating Officer
June 2020	Representative Director andPresident (current position)
June 2021	Chief Executive Officer (CEO)(current position)
Executive General Manager of Appliance, Commercial& Industrial Motor Business Unit
Member of the Board of Directors and Chairman:
Nidec Tosok Corporation
Nidec Elesys Corporation
Nidec India Private Limited
Member of the Board of Directors: Nidec Mobility
Corporation
Nidec Machinery Corporation

Jun SekiTakeshi Nakane

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

Outside Member of the Board of Directors
Audit and Supervisory Committee Member(Born on May 9, 1961)

Number of the Company’s
shares possessed:

Number of the Company’s
shares possessed:

(Born on June 24, 1949)

00April 1974	Ministry of Foreign Affairs of Japan
February 1996	Director, Overseas Establishments
Division, Minister’s Secretariat
April 1998	Minister, Japanese Embassy in the
Republic of Korea
May 2000	Consul-General in Munich, Germany
August 2002	Assistant Vice-Minister
August 2005	Director-General, Disarmament,
Non-proliferation and Science
Department, Foreign Policy Bureau
July 2008	Envoy Extraordinary and Minister
Plenipotentiary, Permanent Mission ofJapan to the International Organizations
in Vienna
July 2009	Ambassador Extraordinary andPlenipotentiary, Permanent Mission ofJapan to the International Organizations
in Vienna
January 2012	Ambassador Extraordinary andPlenipotentiary of Japan to the Federal
Republic of Germany
January 2016	Left the Ministry of Foreign Affairs of Japan
February 2016	Special Assistant to the Ministry ofForeign Affairs of Japan (current position)
March 2018	Director, Kyoto Gakuen Educational
Foundation (currently Nagamori
Gakuen Educational Foundation)
June 2019	Outside Member of the Audit andSupervisory Board, Nidec Corporation
June 2020	Outside Member of the Board of
Directors who is an Audit andSupervisory Committee Member(current position)

Career summary

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	Member of the Board of Directors
who is an Audit and Supervisory
Committee Member (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 Member(Born on February 12, 1967)

Number of the Company’s
shares possessed:

—Significant concurrent positions

Career summary

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

Number of the Company’s
shares possessed:

3,000

Significant concurrent positions

Career summary

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

Number of the Company’s
shares possessed:

1,000

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

NIDEC CORPORATION

57

Teiichi Sato
Outside Member of the Board of Directors
Remuneration Committee Member(Born on October 15, 1941)

Number of the Company’s
shares possessed:

1,000

Significant concurrent positions

Member of the Board of Directors, NHK Promotions Inc.

Career summary

April 2002	Research Associate, Graduate Schoolof Law, 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 a Doctor of Laws (LL. D.)
October 2007	Associate Professor, Graduate Schoolof Economics, Osaka Prefecture University
April 2018	Professor, Graduate School of
Economics, Osaka Prefecture
University (current position)
June 2020	Outside Member of the Board of
Directors who is an Audit andSupervisory Committee Member(current position)

Significant concurrent positions

Professor, Graduate School of Economics, Osaka
Prefecture University

Takako Sakai
Outside Member of the Board of Directors
Audit and Supervisory Committee Member
Remuneration Committee Member(Born on August 28, 1972)

Number of the Company’s
shares possessed:

0

Significant concurrent positions

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

Career summary

April 1964	Ministry of Education, Science,Sports and Culture of Japan(currently the Ministry of Education,
Culture, Sports, Science andTechnology of Japan)
July 1990	Deputy Director-General (Higher
Education Bureau)
July 1992	Deputy Commissioner, Agency for
Cultural Affairs
July 1993	Director-General, Science andInternational Affairs Bureau
July 1994	Director-General, Minister’s
Secretariat
July 1997	Vice Minister of Education, Science,Sports and Culture of Japan
July 2000	Director-General, Japan Society for
the Promotion of Science
January 2003	Ambassador Extraordinary andPlenipotentiary, Permanent
Delegation of Japan to UNESCO
April 2007	Executive Director, Tokyo National
MuseumOctober 2009	Professor, Graduate School ofInternational University of Healthand Welfare
June 2015	Member of the Board of Directors,
NHK Promotions Inc. (current
position)
June 2018 	Outside Member of the Board of
Directors, Nidec Corporation(current position)

April 1983	Ministry of International Trade andIndustry of Japan (currently the
Ministry of Economy, Trade andIndustry of Japan (METI))
July 2000	Director, Foreign Exchange andTrade Finance Division, Trade Bureau
July 2002	Director-General, International
Cooperation Department, New
Energy and Industrial Technology
Development Organization(currently National Research andDevelopment Agency New Energy
and Industrial Technology Development Organization)
July 2003	Director, Personnel Division, Japan
Patent Office
October 2005	Director, Trade Promotion Division,
Trade and Economic Cooperation
BureauAugust 2006	Counsellor, Minister’s Secretariat,
Ministry of Agriculture, 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 Instituteof Economy, Trade and Industry
December 2012 Left METI
March 2013	General Manager, General Affairs
Department, Nidec Corporation
June 2018	Full-time Member of the Audit &Supervisory Board
June 2020	Member of the Board of Directors
who is an Audit and Supervisory
Committee Member (current position)

Career summary

Osamu Shimizu
Outside Member of the Board of Directors
Remuneration Committee Member(Born on September 21, 1953)

Number of the Company’s
shares possessed:

0

April 1976	Ministry of Finance of Japan
June 1984	Executive Director, African
Development Bank
November 1996	Personal Secretary to Minister ofFinance of Japan
January 1998	Director for Inter-Division Affairs,
Budget Bureau
July 1999	Director, Income Tax and Corporation
Tax Policy Division, Tax Bureau
July 2001	Director, Planning and Administration
Division, Tax Bureau
July 2003	Director-General, Fukuoka Regional
Taxation Bureau, National Tax Agency
July 2004	Deputy Director-General of the
Minister’s Secretariat (Local
Administrative and Financial
Reform), Ministry of Internal Affairs
and Communications of Japan
July 2006	Deputy Director-General (International Bureau, Tax Bureau andMinister’s Secretariat), Ministry of
Finance of Japan
January 2007	Director-General, Okinawa
Development and Promotion
Bureau, Cabinet Office
July 2010	Director-General (Okinawa Affairs),
Cabinet Office
January 2012	Vice-Minister for Policy Coordination,
Cabinet Office
April 2014	Professor, Faculty of Political Scienceand Economics, Waseda University(current position)
June 2018	Outside Member of the Board of
Directors, Nidec Corporation(current position)
October 2018	Registered as an attorney-at-law,
Dai-Ichi Tokyo Bar Association

Significant concurrent positions

Professor, Faculty of Political Science and Economics,
Waseda University

Vice Presidents
Vice Chairman

Executive Vice President

First Senior Vice President

First Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Senior Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Hiroshi Kobe
Fumiaki Ushio

Noboru Kaneko
Yujin Okochi
Shingo Tsuji

Yoshimitsu Gushiken

Toshihiko Miyabe
Kintaro Izumida

Hideki Nishimura
Toru Takahashi
Takamitsu Araki
Takahiro Sato

Kazuya Hayafune
Hidetoshi Yokota

Koichiro Yasunaga
Keitaro Murakoshi
Maki Okajima
Junichi Nagai

Yoshihisa Kitao

First Senior Vice President

Toshihiko Koseki

Kuniyasu Tampo
Takeshi Horie
Kenji Ito

Keitaro Tanaka
Kazutsugu Igarashi

Eiji Miyamoto
Junichiro Nakayama

Nakaba Kataoka
Tomoko Hirata

Yoshiko Fujii*1 The number of shares owned are rounded off to the nearest thousand.
*2 The Vice Presidents of Nidec assume the roles and responsibilities of a managerial position generally known as the Executive Officer.

INTEGRATED REPORT 2021

Kazuya Murakami

April 1977
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, Fukuoka Local
Finance Branch Bureau, Ministry of
Finance of Japan
July 2004	Deputy Director-General, Minister’s
Secretariat (in charge of Customs
and Tariff Bureau)
July 2005
Board Director, EBRD
July 2008	Director-General, Kanto Local
Finance Bureau, Ministry of Financeof JapanAugust 2009	Executive Director, Organization for
Small & Medium Enterprises andRegional Innovation, Japan
June 2012	Full-time Member of the Audit andSupervisory Board, Nidec
Corporation
February 2013	Registered as an attorney-at-law,
Kyoto Bar Association
June 2013
Vice President
June 2017	Full-time Member of the Audit andSupervisory Board
June 2020	Member of the Board of Directors
who is an Audit and Supervisory
Committee Member (current position)

Materiality Initiatives

Special Assistant to the Ministry of Foreign Affairs of Japan58

Governance

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

Outside Member of theBoard of Directors
Remuneration Committee
MemberTeiichi Sato

NIDEC CORPORATION

Expecting Nidec to be advancedin ESG initiatives

59

Outside Member of theBoard of Directors
Remuneration Committee
MemberOsamu Shimizu

are emerging, I expect Nidec to see the world from a
broad perspective and discuss the challenges and problems
it faces at the Board of Directors’ meetings, thereby
expanding its profits and continuing to grow. I will monitor
the progress in the efforts to achieve the targets bygathering information from a global perspective, including
information on initiatives in other industries, and will
provide necessary proposals.
Nidec’s high-performance motors contribute to thecreation of a sustainable society. While the efforts toimprove these products contribute to the creation of afuture sustainable society, Nidec examines its products
from a broader perspective, throughout all processes
from upstream to downstream, which I highly appreciate.
Meanwhile, regarding diversity, further improvement
efforts should be made from a global perspective, though
Nidec gives sufficient consideration to this issue atthis stage.

Nidec upholds the commitment, “We contribute to
the Earth by producing the highest quality motors in theworld,” as its corporate mission. Working to enhance its
present structure and thoroughly implement the initiatives
presented in Vision 2025 will directly lead to the achievementof the mission. I hope you will make steady progress.

Seeing the efforts to enhance governance, such as
becoming a company with an Audit and Supervisory
Committee and establishing a Remuneration Committee,
I think Nidec has a proper governance structure from theperspectives of the continuous expansion of corporate
value and consideration to stakeholders and social value.
Discussions at the Board of Directors’ meetings focus on
the prospects of and countermeasures against various
risks in relation to the Group’s important investment andfinancial issues. Future priority themes of discussions
should include the issues and risks that will be constantly
identified and examined in the fields of production, sales,finance, R&D, etc. in view of the situations of Nidec’s many
operation sites around the world, various business fields,
and Group companies. I think it is also important to examine
whether a horizontal management structure is effective incomparison to a vertical organizational structure comprisingproduction, sales and R&D, and also to review medium- tolong-term strategies on a quarterly basis.
In fiscal 2020, we faced the unprecedented crisis of
the COVID-19 pandemic. In such a situation, Nidec, as theworld’s leading comprehensive motor manufacturer, worked
to secure the supply of motors, supporting the foundationof economic activities, while maintaining the basic principleof respecting human life. I think this was appropriate.
FY2025 will be an important milestone toward achieving
consolidated net sales of 10 trillion yen in FY2030. It will
also be a target year for expediting the spread of electricvehicles and other actions to tackle climate change, which
is a key to the further growth of the Nidec Group. The new
medium-term strategic goal Vision 2025 was formulated
based on these points, and I highly appreciate it as a
medium-term strategy clarifying the targets that the Nidec
Group should achieve. At the same time, Group-wide
efforts are strongly needed to achieve the targets. As forsustainability management, active discussions are held

on climate change actions and disclosure of related information, measures to enhance human resources, such as
improving the treatment of employees and recruiting more
women, supply chain management, and the like. Expecting
Nidec to become an advanced company in ESG initiatives
by paying attention to sustainability and diversity, I willkeep an eye on your future activities. I will contribute to theachievement of the Vision 2025 goal by monitoring andidentifying the management and risk-related situations,predicting the trends and changes in society and theeconomy, and raising and examining issues at the Boardof Directors’ meetings.

Materiality Initiatives

I appreciate the efforts that Nidec has made to swiftly
reform its governance system reflecting the needs of thetimes under the management policy and philosophy that
Chairman Nagamori has fostered over a long time. While
the meetings of the Board of Directors are good opportunities to share information on important matters, I think it
is necessary to enhance functional cooperation with theVice Presidents.
The Vision 2025 new medium-term strategic goal setstargets properly reflecting the situation of the company.
However, as the spread of COVID-19 has dramaticallychanged society, various changes are expected in thebusiness environment. Therefore, I think it is necessary to
be able to constantly review and revise the targets in
response to rapid changes in society. In the era of VUCA
(volatility, uncertainty, complexity and ambiguity), where
many challenges, such as environmental issues and theshrinking labor population along with the aging of society,

INTEGRATED REPORT 2021

I expect Nidec to see the world from a
broad perspective and discuss thechallenges and problems facing them at
the Board of Directors’ meetings.

60

Outside Member of theBoard of Directors
Audit and Supervisory
Committee Member

Takeshi Nakane

Expecting Nidec to see a step ahead ofcommon-sense visions, maintain andimprove its presence in the global market,
and realize its ideal corporate image

Outside Member of theBoard of Directors
Audit and Supervisory
Committee Member

Aya Yamada

NIDEC CORPORATIONIn the important phase of portfoliotransformation, supporting the company’s
growth and sustainability activities

61

Outside Member of theBoard of Directors
Audit and Supervisory
Committee Member
Remuneration Committee
MemberTakako Sakai

Over the past two years, Nidec has been steadily advancing
its efforts to enhance its governance, including transitioning
to a company with an Audit and Supervisory Committee,
setting up a voluntary Remuneration Committee to improvetransparency in deciding remuneration, and strengthening
internal control including that of consolidated subsidiaries.
Along with the enhancement of governance, the functionof the Board of Directors is shifting toward a so-called
monitoring role, focusing on deciding management policies
and other strategic matters of the company and supervising
the business execution of management. I think this shift
helps the company grow sustainably and improve its
medium- to long-term corporate value. While this shift should
be solidified, additional measures to further enhance governance, such as appointing an Outside Member of theBoard of Directors as the chairperson of the remunerationcommittee, should also be considered.
Nidec has released its new medium-term strategic goal
Vision 2025, announcing that while relentlessly implementing
growth strategies and pursuing optimal capital efficiency, it
will fulfill its social responsibilities as a global corporation
by launching full-scale ESG initiatives to make a greater
contribution to conservation of the global environment. I
see that the importance of ESG management is frequently
discussed at Nidec, and I highly appreciate that actions
and targets related to ESG have been incorporated in the
new management strategy. Nidec’s high-performance
motors are expected to play a greater role along with the
expansion of electric vehicles. I believe that Nidec’s sustainable growth and the spread of its products worldwide will
greatly help to reduce CO2 emissions, curb global warming,and protect the global environment. Furthermore, tomake effective use of diverse human resources, opportunities should be provided to allow them to exercise theirabilities to the fullest, and such opportunities will lead to thecreation of innovations and new values. To this end, ideas
to improve the workplace environment are actively discussed.
In the future, it will be important to take a step forward andconsider actively appointing women for executive positions
and recruiting foreigners as members of the Board of
Directors. I would like to contribute to proper decision-makingof the Board of Directors toward achieving the Vision 2025
targets, by expressing my opinions on investments and M&As
overseas including the political and economic situationsof the investee countries, as well as international trends
concerning ESG and human rights due diligence.

I highly appreciate Nidec’s relationships with its shareholders
and its guarantee of the exercise of shareholders’ rights,
which form the core of governance. On the other hand, I
think relationships with stakeholders other than shareholders,such as local communities and employees, need to bestrengthened. For example, while the working environment
for employees has been improved in various aspects,
promoting diversity in gender and nationality will be thekey to attracting human resources from around the world
who are capable of maintaining global standards with flexible
and resilient ideas. For the nomination and appointment ofmembers of the Board of Directors and Vice Presidents, thecompany needs to have a process to examine the key factors
in a more open manner. Although it should be carefully
considered whether a Nomination Committee is the mostappropriate organ, I believe that introducing viewpoints

from outside to reinforce the personnel aspect of management will lead to the continuous growth of the company.
On the other hand, I see that Nidec controls improperaccounting and other scandals very effectively despite its
corporate scale. For further enhancement, it will be necessary
to introduce control of multiple networks including overseas
Group companies, and an advanced whistleblowing system,
which has seen increasing demand in recent years.
Nidec’s true value lies in the fact that it is growing asa global manufacturer and expanding its profits while
promoting the mission statement “We contribute to the
Earth by producing the highest quality motors in theworld” at the same time. Products made by utilizing thetechnological capabilities of the Nidec Group contribute to
the protection of the global environment. I hope you will
actively demonstrate how Nidec’s products can contributeto protecting the environment.
Today, globalization is progressing in corporate management, the working environment, product safety andquality standards, and many other fields beyond common
understanding in Japan. Nidec already seems to be a company
a step ahead of its rivals, but rather than resting on its
laurels, it aims to be a company seeing a step ahead of amere common-sense vision. I hope Nidec will continue tomaintain and improve its presence in the global market while
actively engaging in constructive communication with its
stakeholders, thereby realizing its ideal corporate image.

Nidec became a company with an Audit and Supervisory
Committee in 2020 and set up a Remuneration Committee
in 2021, demonstrating the fact that its governance has
been steadily enhanced. Sustainability is recognized as animportant factor of management, and priority ESG matters
are discussed at the Board of Directors. In the environment
aspect, in particular, actions and measures corresponding
to the company’s growth stages have been formulated andthe future vision is clarified, which I highly appreciate. In
the social aspect, Nidec, as a company with operation sites
all over the world, has been adopting diversity-oriented
management through the fostering of female executives
and Vice Presidents, holding management meetings participated in by foreign executives of the overseas Group
companies, and other actions. I hope such actions will be
continued in the future.

Another point that I highly appreciate is the fact thatthe internal members of the Board of Directors earnestly
listen to the Outside Members of the Board of Directors,
and that they explain their answers to our questions until
they are understood. Every time I asked a question, I wasable to get a proper answer from the internal membersof the Board based on their abundant knowledge andinformation concerning the economic situations both
inside and outside the company and related matters. From
those attitudes of the internal members of the Board of
Directors, I understand that Nidec is well aware of theimportance of corporate governance. I was appointed as
an Outside Member of the Board of Directors in 2020. Whilethe company was significantly affected by the spread of
COVID-19, the members answered my questions promptly
and provided sufficient information. I understood that suchsmooth responses came from their long-rooted corporate
attitude, which I think is also effective in crisis management.
Nidec has entered an important phase of portfoliotransformation in view of global trends. In this phase, while
carefully managing its operations on one hand, Nidec has
been investing in many aggressive and devoted researchand development projects that will lead to an increase insales on the other hand, toward the goal of reaching consolidated net sales of 10 trillion yen in FY2030. Group-wide
efforts are continuously being made for the growth of thecompany and the implementation of sustainability activities,
which I mentioned earlier. I would like to support you byutilizing my career experience and fulfilling the role of an
Outside Member of the Board of Directors.

INTEGRATED REPORT 2021

Highly appreciating Nidec’s declarationin Vision 2025 of implementing growthstrategies and optimizing capital efficiency,
as well as a full-scale launch of ESG initiatives

Materiality Initiatives

Governance62

Business Strategies

Small Precision
MotorsAutomotive
Products

Review of FY2020

Review of FY2020

NIDEC CORPORATION

63

To achieve the net sales target of 800 billion yen (600billion yen for existing businesses) for the Small Precision
Motors segment, it is necessary to transform our business portfolio and place greater focus on high-growthareas. In addition to thermal management (invested in
Chaung-Choung Technology Corporation, Taiwan in 2018),
we currently focus on motors for small EVs and electric
two-wheel vehicles as a field with high growth potential.
As for small EVs, a low-price EV at around 400,000 yen level
released in China in 2020 has ranked as one of the highest
selling EVs in China, demonstrating that EVs can be sold if
the prices are lower. The small EV market is expected to
grow explosively. The wave of electrification is likely tocome to two-wheel vehicles as it has come to four wheelers,and India and China will be the largest markets. We havealready received many orders for and inquiries about
motors for small EVs and electric two-wheel vehicles, andwe expect further sales growth in this field.

(Millions of Yen)

500,000

437,105452,376

441,467

424,288443,598

400,000

300,000

200,000

Net sales(Millions of Yen)

400,000

358,075
333,241

300,000

295,360

297,298

2017

2018

261,146

200,000

100,000
100,000

0

Growth strategies in Vision 2025
2016

2017

2018

2019

2020

(FY)

Operating profit / Operating profit ratio(Millions of Yen)(%)

80,00020

72,71467,92960,00015.5

66,923
16.1

12.4

15

15.1

54,556
45,11610.6

40,00010

520,000

0

2016

2017

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

2018

2019

2020

(FY)

0

The net sales target for the Automotive Products segment in FY2025 is 1.3 trillion yen (1 trillion yen for existing
businesses), the highest growth rate expected among all
segments. In particular, the E-Axle EV traction motor
system is expected to have high growth potential. In fact,
we have already received orders for 3.5 million units for
FY2025, which is likely to boost net sales to some hundredsof billions of yen. Today, the EV market is undergoingsignificant structural change. Governments around theworld have announced tightening of their environmental
regulations, while the emergence of new EV manufacturers
and market entry from non-automotive industries havebeen accelerating. The electronics manufacturing service(EMS) has been increasing its presence as a key player infabless production. Nidec started mass production of theE-Axle in 2019. Based on this experience, the company
has started developing next-generation models aimed atcost reduction and standardization of specifications. We
have thus been making steady preparations to secure an
overwhelming competitive advantage, including establishing production facilities capable of responding to a rapid
increase in EVs. Meanwhile, to keep up with the accelerating
trend of fabless EV production, we have started talks with
the Hon Hai Group. Moreover, for existing motor-related
products, such as EPS motors, we expect, based on orders
received, a substantial increase in sales from FY2020 toFY2025. We will also launch M&As in a timely manner.

0

2016

2019

2020

(FY)

Business Strategies

Growth strategies in Vision 2025

Net sales of FY2020 increased by 7.5% from the previous
year to 358,075 million yen due to a rapid recovery ofsales after hitting the bottom in the first quarter, as wellas the effect of the acquisition of Omron Automotive
Electronics (now Nidec Mobility Corporation). Although
operating profit ratio of existing products recovered to adouble-digit level as a result of all-out efforts for cost
reduction, operating profit ended up as 19,526 million
yen, a 7.9% decrease from the previous year, affected
mainly by the upfront costs of development of the E-Axle
traction motor system for EVs.

Net sales

Operating profit / Operating profit ratio(Millions of Yen)

(%)

30

45,00038,97332,90030,00029,05920

21,196

19,52613.2
15,000

11.1

11.1

10

6.4

0

2016

2017

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

2018

2019

5.5

2020

(FY)

0

INTEGRATED REPORT 2021

Net sales of FY2020 increased 4.6% from the previous
year to 443,598 million yen. Although the sales volume of
HDD motors decreased by about 22% year on year due tothe impact of a decrease in the number of customers, net
sales turned out to be 144,000 million yen, down 8.4%
from the previous year mainly due to the efforts toimprove the product mix. Net sales of other small motors
increased 12.2% year on year to 299,600 million yen as aresult of the market launch of new products, such as IT
fan motors, motors for high-efficiency appliances, andthermal solutions for game machines.
Operating profit increased 48.3% year on year to66,923 million yen. This was due to the all-out efforts to
reduce costs by promoting the internal production ofparts and other measures, in addition to an improvementin product mix of HDD motors and an increase in sales of
IT fan motors and other high value-added new small
motor products.

64Appliance, Commercial& Industrial Products

Other ProductsReview of FY2020

Review of FY2020(Millions of Yen)

700,000

601,611562,604

600,000

489,591

500,000

495,432

400,000

310,939300,000
200,000

Growth strategies in Vision 2025

NIDEC CORPORATIONIn FY2020, housing-related demand, mainly for home
appliances, supported profit of this segment. Since thebeginning of FY2021, as indicated by a significant
increase in sales of motors and gears for transfer robots
used at distribution centers of E-commerce companies,
and a rise in sales of power generators of servo motors
or construction machines for factory automation (FA),commercial and industrial demand has driven the profitof the segment. Sales of motors for commercial vehicles,
battery energy storage systems (BESS), and EV charging
stations are also expected to grow in the future. While thecomposition of profit-making products may change,
demand for high-efficiency brushless DC motors is likely
to grow steadily. Up to FY2025, we predict a high annual
average growth rate for sales of existing businesses.
Operating profit ratio for the second quarter of FY2021
was over 10%. By implementing additional cost reduction
measures, we aim to achieve 15% for the full year in
FY2023. To achieve Vision 2025’s segment sales target of
1.3 trillion yen (1 trillion yen for existing businesses), weplan to launch M&As in a timely manner.

65

100,000
0

2016

2017

2018

2019

2020

Operating profit / Operating profit ratio(Millions of Yen)(%)

60,00012

53,0257.9

40,00030,00010

9.0

38,8518.8
6.9

8

33,94034,061

28,0616

6.0

420,0002

10,000

0

2016

2017

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

2018

2019

2020

(FY)

(Millions of Yen)

180,000

0

Toward the consolidated sales targets of 4 trillion yen in
Vision 2025 and 10 trillion yen for FY2030, Nidec focuseson the robot business in the Machinery segment. NidecShimpo Corporation, our group company, has developedand sells FLEXWAVE, a high-accuracy reduction gear for
precision control. It is a joint module for robots andmachine tools, expected to attract demand particularly forcollaborative robots. As many countries around the world,
including Japan, are predicted to shift from the “demographic
bonus” to the “demographic onus” phase, the production
volume of FLEXWAVE is expected to expand in response to
the significant expansion of the collaborative robot market
as a solution to labor shortage. Nidec Machine Tool Corporation (formerly, “Mitsubishi Heavy Industries MachineTool”) joined the Nidec Group in FY2021 and has been
showing rapid recovery in profitability as a result of the post
merger integration (PMI) implemented after consolidation.
In the future, it is expected to contribute to in-houseproduction of gears for the E-Axle EV traction motor
system and also to expanding the machine tool business.
For the machine tool business, the purchase of a stakein OKK Corporation via private placement was resolved by
the Board of Directors, and we will carry out post merger
integration (PMI) to create synergetic effects.

163,966
149,740

146,561

150,000

150,575

122,341
120,000

90,00064,07270,976

72,67260,82460,39660,00030,0000(FY)

Growth strategies in Vision 2025

50,000Net sales

2016

2017

2018

2019

2020

(FY)

Machinery
Electronic and Optical Components

Business Strategies

In FY2020, net sales of the Machinery segment increased
by 0.6% from the previous year to 150,575 million yen
mainly due to an increase in revenue from semiconductor
inspection equipment supported by steady 5G-related
demand. Operating profit increased by 21.3% year on
year to 26,364 million yen due to an increase in profit
associated with rising demand for the 5G-related new
products, and the effect of cost reduction and optimizationof fixed costs. Net sales of the Electronic and Optical
Components segment increased by 0.7% from the previous year to 60,824 million yen, and operating profit
increased by 97.3% year on year to 6,315 million yen
mainly due to the sales increase as a result of the launchof new products and the improvement in fixed costs.

Net sales

Operating profit / Operating profit ratio(%)(Millions of Yen)

30,00024

27,24725,00021,791

18.6

26,364
22,32917.8

20,00015.4

13.7

21,738

16

13.6

14.5

15,000

12

10.4
9,862

10,000

9,720

8

6.7
5.3

4,870

6,315

3,201

5,000

0

20

17.5

2016

2017

2018

2019

Operating profit (left axis)
Machinery
Electronic and Optical Components
Operating profit ratio (right axis)
Machinery
Electronic and Optical Components

4

2020

(FY)

0

INTEGRATED REPORT 2021

Net sales of FY2020 increased 6.9% from the previous
year to 601,611 million yen, mainly due to the acquisitionof Embraco, whose sales of household refrigerator
compressors increased significantly.
Although around 5,700 million yen was recorded as
structural reform expenses, operating profit increased
56.2% year on year to 53,025 million yen due to theincrease in revenue and the implementation of all-out
cost reduction measures. The operating profit ratio wasover 10%, excluding structural reform expenses, consecutively in both the third and fourth quarters.

(Machinery, Electronic and
Optical Components, etc.)

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

U.S. GAAP
2011

2012

IFRS
2013

2014

2015

2016

2017

2018

2019

2020

682,320709,270875,109

1,028,385

1,178,290

1,199,311

1,459,039

1,475,436

1,534,800

1,618,064

Operating profit

73,07017,59884,864110,939

117,662

139,366

165,903129,222

108,558

159,970

Profit before income taxes

70,856

13,39884,460107,092

117,164

141,313

163,260

129,830

105,160

152,937

Profit attributable to owners of the parent

40,731

7,986

56,27276,01589,945

111,007

130,834

109,960

58,459

121,945

CAPEX

41,44661,36840,03658,04281,89868,71890,841

120,555

132,926

88,911

Depreciation

32,55638,25544,41351,44564,95059,737

68,69771,01687,80896,802

R&D

30,05034,27837,80845,17951,97852,80755,43862,912

78,63067,280Total assets

800,401

1,005,417

1,166,938

1,357,340

1,376,636

1,678,997

1,773,199

1,884,008

2,122,493

2,256,024

Shareholders’ equity

370,182415,653

517,971744,972

763,023

846,572

932,501

996,795

947,290

1,096,020

Operating cash flow

56,712110,286

87,21991,875

147,659

129,853

175,568

170,233

168,049

219,156

Investment cash flow

–19,918–133,854–63,178–81,230–95,377–211,476–113,915–160,844–311,513–100,568

Free cash flow

36,794–23,568

24,041

10,64552,282–81,623

61,6539,389–143,464

118,588–814

61,117

13,471–19,508

7,775

95,848–116,858–32,683

128,546–136,191

Financial cash flow

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

74.06

14.82

103.41135.81151.52

187.14220.96186.4999.37

208.19Dividends

22.50

21.25

25.00

35.00

40.00

42.50

47.50

52.50

57.50

60.00

NIDEC CORPORATION

Major financial indicators

67

(%)

Operating profit ratio

10.7

2.5

9.7

10.8

10.0

11.6

11.4

8.8

7.1

9.9

Shareholders’ equity ratio

46.2

41.3

44.4

54.9

55.4

50.4

52.6

52.9

44.6

48.6

*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 FY2011.
*2 Starting from the first quarter of FY2016, the International Financial Reporting Standards (IFRS) have been applied to the consolidated financial statements. Therefore, the figures presented are based on the International Financial Reporting Standards (IFRS) for FY2015 and later, and on the U.S. accounting standards for FY2014 and before.

INTEGRATED REPORT 2021

Net sales

Financial and Corporate Information(Millions of yen)

68

Group Companies
Company name

E/ Environment
Environmental performance index*
Total energy input

Total water usage (thousand m3)
Water intake breakdown

Greenhouse gas emissions

Total waste discharged (t)Recycled waste (t)Final disposal of waste (t)Recycled waste rate (%)
Environment conservation cost (million yen)*2
Environmental education sessions held (times)*3

2019

(FY)
2020

11,945,040 12,623,308 12,932,079 12,963,913
1,122
1,171
1,220
1,242
14,71014,396
17,242
13,179
16.8
18.8
8.1
8.6
9,607
9,499
8,396
8,307
11
11
16
15
4,382
4,122
3,417
3,595
3,997
3,999
3,606
3,351
974
1,170
1,186
1,103
4
6
8
0
2,854
4,285
3,365
2,934
88
92
73
62
591
612
593
577
2,176
3,582
2,700
2,295
84,65097,14997,618100,546
4,058
5,400
8,384
9,691

12,000,633
1,180
13,157
7.9
7,437
10
3,271
2,835
1,102
0
2,859
60
511
2,287
101,380
11,011

2016

1

Total (Gj)Electric power (million kWh)Gas (t)Fuel (thousand kl)
Rainwater (thousand m3)
Industrial water (thousand m3)
Potable water (thousand m3)
Groundwater (thousand m3)
Surface water (thousand m3)
Total (thousand t-CO2)
Scope 1 (thousand t-CO2)
Scope 2 (thousand t-CO2)
Scope 3 (thousand t-CO2)
Specially controlled industrial
waste (hazardous waste)discharged (t)79,621
5,029
94.1
226
9

2017

91,743
5,405
94.4
466
9

2018

89,024
8,052
91.2
313
8

90,910
9,636
90.4
254
11

91,842
8,947
90.6
2,027
7

2019

(FY)
2020

S/ Society
CSR audits conducted by business partner(s) (times)*4
Employees (persons) (consolidated)
Ratio of female employees (%) (consolidated)*5
Ratio of female managers and officers*6 (%) (consolidated)*5
Rate of industrial accidents involving lost working time(consolidated)*7
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)
Average monthly overtime hours (hours) (non-consolidated)
Percentage of annual paid leave taken (%) (non-consolidated)
Rate of industrial accidents involving lost working time*7(non-consolidated)
Number of employees who have taken maternity leave(non-consolidated)
Number of employees who have taken childcare leave(non-consolidated)
Percentage of male employees who have taken childcare
leave (%) (non-consolidated)
Return rate after taking childcare leave (%) (non-consolidated)
Number of employees using the short-time work system(non-consolidated)

2016

Employee training hours perperson (hours)

Male employees (persons)

2017

2018

NIDEC CORPORATION

69

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

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

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

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

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

Development, manufacture and sales of reduction gears, forge rolling machines,
precision-pressed products, and other machines and equipment; development
and manufacture of continuously variable transmissions, craftwork devices;development and manufacture of various measuring instruments; and sales of
their related applied technologies and engineering maintenanceNidec Tosok Corporation
https://www.nidec.com/jp/nidec-tosok/

Development, manufacture and sales of automobile parts and measuring instruments

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

Marketing, development, manufacture and sales of automotive electric components

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

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

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

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

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

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

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

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

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

Development, manufacture and sales of automobile electronic control units forvehicle bodies

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

Various insurance agency operations, real estate rental and management, salesof various goods, operation of company stores, loan/lease business, staffing
agencies, hotel business, beverage sales, etc.

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

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

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

Design, manufacture and sales of machine tools, cutting tools and their related
products, and consulting

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

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

Development, manufacture and sales of water pumps, oil pumps, and automotive modules

Nidec Motor Corporation
https://www.nidec.com/jp/corporate/network/group/nidec-motor/

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

95
107,062———94
107,554———86
108,906———

93
117,206
50.6
25.9
0.78

138
112,551
49.1
28.2
0.64

2,392
17.3
19
2.8
2
4.9
2.02

2,576
17.4
21
3.2
2
4.6
1.89

2,794
19.7
32
5.0
1
2.4
1.98

2,756
20.4
34
5.5
1
2.4
2.19

2,568
20.6
33
5.7
3
7.9
2.24

111,692
46.7

112,28743.6

119,67642.8

110,077
39.9

112,162
43.7

14.0
61.3
0.0

15.3
61.4
0.0

16.2
61.3
0.4

16.3
64.5
0.4

11.2
56.5
0.1

29

26

41

30

24

34

22

40

41

25

2
1.8

1
1.0

2
1.9

7
8.0

8
9.0

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

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

96.3
68

97.8
91

89.3
112

90.0
102

100
115

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

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

2019

(FY)
2020

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

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

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

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

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

Manufacture and sales of compressors for commercial and domestic refrigerators

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

Development, manufacture and sales of thermal management devices

G/ GovernanceDirectors (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

Business activities

2016

7
4
2
28.6
1
14.3
58
72
65

2017

9
6
2
22.2
1
11.1
50
73
64

2018

8
5
2
25.0
0
0.0
51
77
65

8
5
2
25.0
0
0.0
52
78
66

9
1
5
55.6
2
22.2
48
79
65

*1 Business sites covered by the Medium-term Environmental Conservation Plan: 88 companies*2 Nidec business sites in Japan and 10 companies overseas*3 Nidec Head Office*4 Eight companies overseas*5 Calculation of consolidated data began from FY2019. Survey conducted on 87.9% of all consolidated employees.
*6 Managers of department manager level or higher, and executive officers. Directors or Audit & Supervisory Board Members who concurrently serve as executive officers, if any, are included among
executive officers.
*7 Calculation of consolidated data began from FY2019. Number of deaths and injuries per 1 million hours worked in total.

Financial and Corporate Information

Non-financial Data

INTEGRATED REPORT 2021

ESG Data List
https://www.nidec.com/en/sustainability/principle/esg-list/70Company Profile(As of March 31, 2021)

Changes in stock price and trading volume

Trade name

NIDEC CORPORATIONFoundedJuly 23, 1973

Location of
Head Office

338 Kuzetonoshiro-cho, Minami-ku, Kyoto

Capital

JPY 87,784 million

Fiscal year end

March 319,000

45,000

Employees

Nidec Corporation: 2,568
Consolidated:
112,551

6,000

30,000Business sites
in Japan

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

3,000

15,000

Corporate website

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

Stock price (yen, points)

Trading volume (thousands of shares)

15,00075,00012,00060,000Nidec (left axis)0Mar. 2011

TOPIX (left axis)

Mar. 2012

Mar. 2013

Mar. 2014

Mar. 2015

Mar. 2016

Mar. 2017

Mar. 2018

Mar. 2019

Mar. 2020

Mar. 2021

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 at the beginning of 2011.
*2 Figures for Nidec’s stock price and trading volume are those on the First Section of Osaka Securities Exchange for on and before July 15, 2013, and those on the First Section ofTokyo Stock Exchange for on and after July 16, 2013.

Stock Information

External Evaluation(As of March 31, 2021)

Number ofshares outstanding
Number ofshareholders

Shareholder mix

1.74%(10,390,000 shares)

7.53%

596,284,468(44,924,000 shares)
18.13%

100,586

20.70%(108,115,000 shares)(123,436,000 shares)

Number ofshares ownedbase

16.12%(213,256,000 shares)(96,160,000 shares)

Other financial institutions
Individuals and others
Treasury shares

Principal shareholders

NIDEC CORPORATION

71

Number of shares
owned (thousands)

Holding ratio (%)

Shigenobu Nagamori

49,473

8.29

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

41,282

6.92

Custody Bank of Japan, Ltd. (trust account)

24,817

4.16

The Bank of Kyoto, Ltd. (Standing proxy: Custody Bank of Japan, Ltd.)24,798

4.15

S.N. Kosan, LLC.

20,245

3.39

SSBTC CLIENT OMNIBUS ACCOUNT (Standing proxy: The Hongkong and Shanghai Banking Corporation Limited,Tokyo Branch)

18,877

3.16

THE BANK OF NEW YORK MELLON 140042 (Standing proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)15,534

2.60

MUFG Bank, Ltd.

14,851

2.49

JP MORGAN CHASE BANK 385632 (Standing proxy: Settlement & Clearing Services Department, Mizuho Bank, Ltd.)

13,7092.29

Nippon Life Insurance Company (Standing proxy: The Master Trust Bank of Japan, Ltd.)

13,1592.20* Figures less than one thousand in the number of shares owned are rounded off.

FTSE4Good Index Series

Nadeshiko Brand

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

Nidec was selected as a Nadeshiko Brand in FY2018
and a Semi-Nadeshiko Brand in FY2020 by the Japan
Ministry of Economy, Trade and Industry (METI) andthe Tokyo Stock Exchange (TSE).

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

ESG-themed brand

MSCI Japan Empowering Women (WIN)

Receiving three-star “eruboshi” status

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

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) basedon their gender-related
diversity (women’s active
participation in the workforce) in each industry.

* Figures less than one thousand in the number of shares owned are rounded off.

NameAwards and commendations

FTSE Blossom Japan Index

35.76%

Trust banks
Foreign institutions
Japanese securities firms andother Japanese corporations

Inclusion in ESG indexes* The inclusion of Nidec Corporation in any MSCI index and the use of MSCI logos,
trademarks, service marks or index names herein do not constitute a sponsorship,
recommendation or advertising of Nidec Corporation by MSCI or any of its affiliates.
The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index
names and logos are trademarks or service marks of MSCI or its affiliates.

Rating information

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

Evaluation of IR activities
Gomez IR Site Ranking 2020 Silver Award

Nidec received a Silver Award in the overall “Gomez IR Site Ranking 2020”
published by Morningstar Japan K.K. In the electrical equipment industry
ranking, Nidec was ranked 20th.

Daiwa IR Internet IR Commendation Award 2017

Announced

TargetRatingNidec received the Commendation Award in the “Internet IR Award 2017”by Daiwa Investor Relations Co., Ltd.

Japan Credit Rating
Agency, Ltd. (JCR)

October
2020

IssuerAA–

Nikko IR All Japanese Listed Companies’ Website Ranking

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

September
2020

Issuer

AA–

Nidec’s website was selected as a grade AAA site in the annual survey of all
Japanese listed companies’ websites conducted by Nikko Investor Relations
Co., Ltd. in FY2020.

Moody’s

February
2021

Issuer

A3

Award for Excellence in Corporate Disclosure

Rating agency

In 2020, Nidec was ranked sixth in the Electric/Precision section in 2020
Awards for Excellence in Corporate Disclosure, sponsored by the Securities
Analysts Association of Japan.

Financial and Corporate Information

Share status

INTEGRATED REPORT 2021

(As of March 31, 2021)

72