Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company”)
today submitted amendment reports to its Securities Reports,
Quarterly Reports and Internal Control Report audited by our
auditor and submitted in previous fiscal years, to Kanto Local
Finance Bureau. The Company also partially amended previous
financial statements summary and disclose the documents. We
sincerely apologize for the considerable inconvenience caused to
our shareholders, investors, business partners, and all the
stakeholders.
1.
Details and Reasons for Amendment
It became clear that, at Nidec Drive
Technology, a consolidated subsidiary of the Company, the wrong
data was identified for part of the adjustment, such as sales
accompanied by transactions between consolidated subsidiaries of
the Company’s business group in its consolidated account closing
procedure, resulting in sales recorded in an inflated manner.
We discussed this issue and the amount of
the impact with PricewaterhouseCoopers Japan LLC, the accounting
auditor of the Company. Considering the importance of the
influences, we finally concluded to amend previous years’
Securities Reports and Financial Statements Summary. And we also
decided to amend Internal Control Report in accordance with Article
24-4-5(1) of the Financial Instruments and Exchange Act.
We have also revised the amount that had
been disclosed through provisional accounting by the implementation
of business combinations to the amount after the revision of the
initial allocation of acquisition costs due to the finalization of
the processing.
Moreover, in revising Securities Reports
and Financial Statements Summary, we have revised uncorrected
matters that were individually immaterial, and properly reflected
the revisions in the consolidated financial statements after
amendment.
2.
Securities Reports, Quarterly Reports and
Internal Control Report to be amended
Securities Reports
The 50th Business Term (From April 1, 2022
to March 31, 2023)
Quarterly Reports
The 1st Quarter of the 50th Business Term
(From April 1, 2022 to June 30, 2022)
The 2nd Quarter of the 50th Business Term
(From July 1, 2022 to September 30, 2022)
The 3rd Quarter of the 50th Business Term
(From October 1, 2022 to December 31, 2022)
The 1st Quarter of the 51st Business Term
(From April 1, 2023 to June 30, 2023)
The 2nd Quarter of the 51st Business Term
(From July 1, 2023 to September 30, 2023)
The 3rd Quarter of the 51st Business Term
(From October 1, 2023 to December 31, 2023)
Internal Control Report
The 50th Business Term (From April 1, 2022
to March 31, 2023)
3.
Financial Statements Summary to be
amended
Financial Statements Summary
Financial Statements Summary for the Year
Ended March 31, 2024 [IFRS] (Consolidated)
4. Impact to the previous years’
Consolidated Results by the amendments.
(Yen in millions)
Period
Items
Before amendment (A)
After amendment (B)
Difference (B-A)
Rate of change (%)
50th Business Term FY2023 1Q
Net Sales
540,369
530,183
△ 10,186
△1.9%
Operating Profit
44,660
38,696
△ 5,964
△13.4%
Profit before income taxes
56,989
51,025
△ 5,964
△10.5%
Profit attributable to owners of the
parent
41,321
36,613
△ 4,708
△11.4%
Total assets
2,903,214
2,896,745
△ 6,469
△0.2%
Total equity
1,452,748
1,447,793
△ 4,955
△0.3%
50th Business Term FY2023 1st
Half
Net Sales
1,130,767
1,118,571
△ 12,196
△1.1%
Operating Profit
96,368
88,670
△ 7,698
△8.0%
Profit before income taxes
118,375
110,677
△ 7,698
△6.5%
Profit attributable to owners of the
parent
86,649
80,571
△ 6,078
△7.0%
Total assets
3,023,437
3,014,808
△ 8,629
△0.3%
Total equity
1,543,650
1,537,104
△ 6,546
△0.4%
50th Business Term FY2023 9
months ended December 31
Net Sales
1,699,747
1,686,573
△ 13,174
△0.8%
Operating Profit
124,404
115,157
△ 9,247
△7.4%
Profit before income taxes
141,944
132,697
△ 9,247
△6.5%
Profit attributable to owners of the
parent
104,077
96,774
△ 7,303
△7.0%
Total assets
2,876,302
2,866,771
△ 9,531
△0.3%
Total equity
1,412,636
1,405,512
△ 7,124
△0.5%
50th Business Term FY2023 Full
Year
Net Sales
2,242,824
2,230,027
△ 12,797
△0.6%
Operating Profit
100,081
89,923
△ 10,158
△10.1%
Profit before income taxes
120,593
110,435
△ 10,158
△8.4%
Profit attributable to owners of the
parent
45,003
36,982
△ 8,021
△17.8%
Total assets
2,872,591
2,862,749
△ 9,842
△0.3%
Total equity
1,373,694
1,365,754
△ 7,940
△0.6%
51st Business Term FY2024 1Q
Net Sales
566,055
564,362
△ 1,693
△0.3%
Operating Profit
60,152
60,176
24
0.0%
Profit before income taxes
86,081
86,105
24
0.0%
Profit attributable to owners of the
parent
64,041
64,066
25
0.0%
Total assets
3,087,586
3,076,404
△ 11,182
△0.4%
Total equity
1,539,565
1,531,125
△ 8,440
△0.5%
51st Business Term FY2024 1st
Half
Net Sales
1,160,662
1,157,448
△ 3,214
△0.3%
Operating Profit
115,782
115,381
△ 401
△0.3%
Profit before income taxes
145,359
144,958
△ 401
△0.3%
Profit attributable to owners of the
parent
106,081
105,782
△ 299
△0.3%
Total assets
3,163,757
3,151,520
△ 12,237
△0.4%
Total equity
1,628,727
1,619,906
△ 8,821
△0.5%
51st Business Term FY2024 9
months ended December 31
Net Sales
1,754,688
1,745,073
△ 9,615
△0.5%
Operating Profit
169,321
167,983
△ 1,338
△0.8%
Profit before income taxes
193,744
192,406
△ 1,338
△0.7%
Profit attributable to owners of the
parent
145,908
144,894
△ 1,014
△0.7%
Total assets
3,107,768
3,094,998
△ 12,770
△0.4%
Total equity
1,581,951
1,573,099
△ 8,852
△0.6%
51st Business Term FY2024 Full
Year
Net Sales
2,348,202
2,347,159
△ 1,043
△0.0%
Operating Profit
163,106
162,799
△ 307
△0.2%
Profit before income taxes
202,919
202,612
△ 307
△0.2%
Profit attributable to owners of the
parent
125,387
125,144
△ 243
△0.2%
Total assets
3,171,535
3,160,635
△ 10,900
△0.3%
Total equity
1,667,797
1,659,186
△ 8,611
△0.5%
Note) Amount “Before amendment” is the disclosed amount at the
time of each report issuance.
5. Amendments of the Internal Control Report It became clear
that, at Nidec Drive Technology, a consolidated subsidiary of the
Company, there were errors in the consolidation adjustment, such as
sales accompanied by transactions between consolidated subsidiaries
of the Company’s business group in its consolidated account closing
procedure. As a result of conducting evaluation procedures for
internal control over financial reporting processes, deficiencies
in internal control were identified, and we have amended the
internal control report. Specifically, although we judged that our
internal control over financial reporting processes as of March 31,
2023 was effective, we finally decided the deficiencies constitute
material weakness. Therefore, we have concluded that the Company's
internal control over financial reporting processes as of March 31,
2023 was not effective.
6. Correction policy for the material weakness We will promptly
design and implement recurrence prevention measures such as a
multiple viewpoints-based verification of the book-closing process
and having the person with approval authority introduce a stricter
approval procedure, to secure the reliability of its financial
reporting. Specifically, we will:
(1)
Thoroughly review consolidated closing
entries included in documents disclosed in past fiscal years and in
corrected consolidated financial statements, to identify other
related issues, and to better process and present accounts;
(2)
Update the Company’s policy on its
consolidated account closing procedure, enhance the system to
understand the proper and comprehensive information when
identifying adjustment-requiring cases that are related to
transactions between consolidated subsidiaries, and hold lectures
focused on the verification of consolidated book closing and on the
approval process by those with approval authority; and
(3)
Enhance the comprehensive monitoring
function of the Company’s and its subsidiaries’ accounting and
financial managers over the consolidated account closing procedure,
and enhance the reviewing and approval procedures on the
coordination of transactions between consolidated subsidiaries in
account closing and financial reporting processes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240524424111/en/
Teruaki Urago General Manager Investor Relations +81-75-935-6140
ir@nidec.com