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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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/
Contacts
Teruaki Urago
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
