On October 28, 2025, the Company’s shares were designated by the Tokyo Stock Exchange as Security on Special Alert. As one year has passed since this designation, we would like to inform you of the status of the development and operation of the Company’s internal management system as shown in the attachment.

In addition, the Company today submitted a Written Confirmation of Internal Management System, as stipulated in the Securities Listing Regulations, to the Tokyo Stock Exchange. Going forward, the Tokyo Stock Exchange will conduct an examination based on the contents of this written confirmation, and if it is deemed that the internal management system, etc., is properly established and implemented, the designation of Security on Special Alert will be lifted.

Until now, based on the Revised Improvement Plan and the Status Report published in the “Notice Regarding Disclosure of the Revised Improvement Plan and the Status Report” dated April 27, 2026 (hereinafter referred to as the “Revised Improvement Plan and the Status Report”), the Company has been working to reform its corporate culture, systems, and processes. As we move forward with these reforms, our management team continues to engage in dialogue with employees and listen sincerely to their voices as we work to build a relationship of trust with them. As a result, we have been fostering an organizational culture in which employees can speak up about their concerns and issues in a straightforward manner. At the same time, we have been instilling in each and every employee the value of “always doing the right thing.” In addition, we have begun to establish the attitude of thinking and acting on our own, and of always seeking the right way through active discussion and mutual confirmation, and positive changes are steadily emerging.

In addition, we are sincerely addressing each and every issue that has come to light through initiatives strengthening the internal management system and fostering an organizational culture in which employees can speak up frankly, broadly gathering the wide range of problems that we have faced, and carefully examining and investigating them before making every effort to advance necessary corrective measures and recurrence prevention measures. As part of these efforts, the opinions of our employees led to a supplementary investigation, which was triggered by the nonpayment of customs duties as described in the Revised Improvement Plan and the Status Report, as well as to an overall quality control inspection and subsequent investigation by the Investigation Committee, both of which were disclosed in the “Disclosure of Investigation Report and Nidec’s Actions in Response to It” dated September 4, 2026. However, since reforming an organizational culture cannot be accomplished in a short period of time, we will ensure that these changes are not merely temporary and will continue to steadily reform our corporate culture so that these changes take root.

We deeply regret the inconvenience and concern we have caused to our shareholders, investors, and other related parties. We will face all stakeholders sincerely and transform ourselves into a company that places top priority on being “right” in high ethical standards. We will continue to steadily reform our corporate culture, systems, and processes through the combined efforts of our executives and employees, and we ask for your continued support.

Please see the full release:

https://www.nidec.com/files/user/www-nidec-com/corporate/news/2026/1030-01/261030-01en.pdf

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