Nidec's restatement reaches back five years and cut deeper into the balance sheet than the latest year's loss alone suggests. A recovery presentation dated 1 October 2026 shows the company restating the years from March 2021 to March 2025, with net assets at March 2025 ¥476.9bn lower than first reported. Tokyo Brief's earlier report on the net loss and impairment figures covers the current year; this document adds the history behind them.
What the restatement changed
Nidec said the restatement follows the third-party committee's findings, plus corrections of items it had left uncorrected as immaterial and others found during the investigation. Of the net-asset reduction, ¥208.0bn is the committee's own figure for improper accounting at March 2025. A further ¥288.0bn is impairment losses booked to earlier years as a knock-on effect.
Five-year cumulative operating profit is restated to ¥437.3bn from ¥819.9bn, a net adjustment of ¥382.6bn. The largest single item is a ¥204.2bn impairment on the AMEC automotive-motor business, which the presentation places in the year to March 2023 and says was triggered once the restated accounts showed persistently falling profitability. The equity ratio at March 2025 falls to 42.5% from 51.8%. Nidec says the restatement corrects accounting and does not affect cash flow.
Payouts above the distributable amount
The parent-company effect is separate. Nidec wrote down its holdings in group companies and booked provisions for subsidiary deficits, and the lower net assets left dividends and share buybacks based on the results for each of the five years above the distributable amount. The presentation does not say how Nidec intends to deal with the excess.
| Period end | Restated distributable amount | Next-period dividends and buybacks | Excess over distributable amount |
|---|---|---|---|
| March 2021 | 74.5 | 92.6 | 18.2 |
| March 2022 | 18.6 | 94.0 | 75.4 |
| March 2023 | -57.9 | 41.3 | 99.2 |
| March 2024 | 19.3 | 53.8 | 34.5 |
| March 2025 | 14.6 | 22.9 | 8.3 |
The current year and the recovery pitch
For the year to March 2026, the presentation repeats the operating loss of ¥519.0bn and ¥632.1bn of impairments. The equity ratio fell 16.9 points to 25.6%. Management assessed internal control over financial reporting as "not effective" at 31 March 2026, and says a material weakness found earlier in a tariff-related trade-compliance matter is not resolved because new company-wide weaknesses were identified.
Management guides to sales of ¥2.8tn, operating profit of ¥200bn (a 7.1% margin) and net profit of ¥100bn for the year to March 2027, with the dividend undecided. First-half targets are sales of ¥1.4tn and operating profit of ¥120bn. Nidec says operating profit excluding non-recurring and structural items would be ¥160bn against ¥150bn the previous year.
A new president (chief executive and chief technology officer) and a new representative director, who is also chief compliance and chief human resources officer, took office on 29 September 2026. The president has been Nidec's chief technology officer since April 2024. The representative director joined Nidec in January 2025 after a career that included human-resources roles at Toyota. Management says it will concentrate on data-centre-linked power generation, storage and power conversion, and on storage and cooling modules, and cut back appliance and automotive operations. It cites alternator and hard-disk spindle-motor leadership and roughly 40% sales growth in power generation, battery storage and water-cooling modules.
The audit test
The presentation's timeline records the auditor declining to express an opinion on annual securities reports, and no review conclusion on a half-year report. Nidec says it will clear the remaining issues in October, mindful of the deadlines, to obtain an audit opinion. The presentation also warns that the results could be amended again if further material misstatements are identified.