NIDEC CORPORATION — Call Transcript 2026

Hello, everyone. My name is Misaki, the assistant of the third-party committee. I would like to introduce to you our presenters today. Here are our presenters. Mr. Kaku Hirao, the Chairperson of the committee. Mr. Tomoki Inoue, a member of the committee. Mr. Makoto Shirai, another member of the committee. First of all, Mr. Hirao, the Chairperson, will provide you with the result of the investigation, followed by the question and answer session. Mr. Hirao, please start your presentation. Thank you. Can you hear me okay? This is Kaku Hirao, the Chairperson of the third-party committee established by the Nidec Corporation. I'm the alternate law in charge of a foreign law joint enterprise at the Nishimura & Asahi Law Firm. Please take a look at the document, the outline of the investigation report. Please take a look at the document in front of you. This is a summary of our investigations. Based on that investigation, I would like to provide you with some verbal explanations as we go forward. Prior to launching the presentation, I would like to let you know that the investigation by our committee are still ongoing. Investigations so far have revealed various facts. We have analyzed various facts, and we have accumulated facts enough for us to be able to make proposals and recommendations. For a long time we have had these investigations ongoing. We have had root cause analysis. I believe this is the right timing for us to make the announcement of those findings. The purpose of this committee is as follows. This committee was launched to reveal all the facts relevant to the issues involving Nidec Corporation, and to make recommendations for recurrence prevention. This committee is not intended for finding someone responsible for any areas of business-related responsibilities. Please take a look at the document in front of you that I've mentioned. Please take a look at the document over there. Starting from September 3rd, 2015, that's the start of the period of our investigation range, time range. The investigations are ongoing, as I've said already. We have three of these members. These members are all in charge of those investigations based on the guidelines established by the Japan Federation of Bar Associations. Based on those guidelines, we have launched our investigations. We examined all the relevant documents. We launched forensic investigations as well. We interviewed via a questionnaire, various managerial and executive employees. We established a hotline on various issues. We have covered 319 people, including former Nidec employees. 532 times we interviewed various individuals. Forensic investigations include former Nidec employees, 113 people in total. We have covered past fiscal years, 2020 through 2025's first fiscal quarter. When necessary, we expanded, we went further back in time. Now, I would like to provide you with an outline of Nidec Corporation as a company. You may know, may not know all of them. Mr. Nagamori established this company back in 1973. It's a corporation, this company has expanded their businesses very, very rapidly. M&A was one of the driving factors of this company. Back in 1984, the fan motor business was purchased by Nidec. Since then, Nidec has been expanding itself and its businesses through M&A. The small, the precision motors and appliance, commercial, industrial, and motion energy, and various areas are now Nidec's business fields. Nidec started with hard disk drive motor business, which supported its rapid growth. Due to the changes in the market, Nidec has expanded its areas into automotive and appliance and industrial other motor-related areas. Nidec Corporation is not the only entity within the Nidec Group. 354 subsidiaries and affiliated companies exist within the Nidec Group. Business group system have been and were introduced in 2014 or so. We have SPMS, ASIM, MOEN business units, as well as machine learning and automation. These five different business entities are in existence as of today. In addition to these business units, there is another unit of business management called the Group Companies, 15 companies. There is one exception is that one company with the ad offices. All of these companies are managed by Nidec Corporation's Group Company Management Department. I'd like to give you some findings as a result of our investigations. Section one, findings, outline. I'm not going to details as we have 250 pages or so long document. I refrain from printing all of these making copies. We didn't make all of these copies for all of you today. We have a large number of findings, as you can see in the document. The investigation are still ongoing. The numbers of inappropriate accounting practices were found in numbers of Nidec Group business bases. There is a variety of incident that there are, you know, such practices. Low profitability, low profit materials. Intentionally, the material loss was not really recorded despite its low future prospect. There was a case of avoidance of financial impairment. Inappropriate personal expenses were recorded as fixed costs in order to postpone the recording of fixed assets or pick fixed costs, actually. There were some subsidiaries regarding the return of subsidiaries. There are some subsidiaries whose nature were falsified intentionally. Inappropriate recordings of the allowance for bad loans. These cases were just among various the inappropriate practices that we found. I have just picked up 12 of all of these cases. I would like to pick up 12 of these cases to explain them in detail in the document. In 2025 quarter first end, there is ¥139.7 billion is the amount of negative impact on the latest covered earnings of Nidec Corporation. There was excessive pressure on people to achieve company provided profit targets under the strong leadership by Mr. Nagamori, who for a long time and also has been in existence that it is a sin to be in a deficit. It was mandatory for each entity to achieve its own target. For a long time, Mr. Nagamori has made established these targets for individual subsidiaries on a top-down way. These the targets were based on a future expected growth. It was above the capability of some of these subsidiaries and other entities. To the CFO of the head office as well as other executives, Mr. Nagamori applied a strong pressure to achieve these targets from himself. When it comes to these pressures, these pressures were applied to these executives, organizations, and subsidiaries. This is just one example. One of the examples we have understood is that if you cannot achieve the target, each and every day, Nidec MCJ executives held meetings each and every day to force or blame these managerial executives for not achieving the target. Such unreasonable instructions were given to these subsidiaries managerial and executive employees. Even after the end of fiscal term, if a certain organization fails to achieve its target, the instructions were given to achieve its target even after the end of a certain quarter. There was sometimes direct pressure applied from Mr. Nagamori directly to those executives. Such a strong pressure was applied from Mr. Nagamori to others. Fixed avoidance of in financial impairment cost was made into assets by these manipulations. In some cases of some organizations, they tried to achieve their targets. When it comes to CFOs and other organizations, executives came up with a way and explained those method to financial the auditing firms for approval. Sometimes, people falsified facts, and sometimes people neglected giving explanation. Of course, asset calculation method as well as other methods, there is some range of accounting processes. Not all of these methods were incorrect, but our investigations found sometimes those processes were beyond the realm of proper processing, and that's the inappropriate accounting practices. In order to achieve the consolidated performance targets of the Nidec Group as a whole, Nidec Group CFO and other executives were under the pressure to achieve the company's target. If they failed to achieve the target, they were reprimanded very severely by Mr. Nagamori. Now I'd like to mention negative legacy. I would like to explain that in detail here. There were some results, efforts made to eliminate it, eliminate such legacies. This was part of the reasons for this committee to have been established. In internal investigations prior to the establishment of this committee, there were quite a few issues in existence. There were some documents about the suspicious activities or conducts by Nidec executives. Sometimes assets were created as a result of stagnation, and those assets were called the negative legacy in Nidec's term. Nidec groups collected information about these negative legacies. The actions were launched to handle those negative assets or negative legacies. On a periodical basis, Mr. Nagamori and other executives would receive the information about those negative elements. In announcement, the announcement made on a structural reform instead of reporting the negative legacies. Self-funding was one of the terms used in Nidec Group. Self-funding was a term to cover the negative performance with something that you can use, and that's so-called self-funding. In a recording loss means that deterioration in your organization's performance. You can only do so much about taking such a method to handle or process such losses. While having those process, new losses will be created in some cases. Under this situation, the internal audit department has completed the project to normalize the assets quality. In replace with that, the structural reform was launched in the first quarter of the FY22. These two initiatives are similar, therefore, I'd like to introduce what it is. In the first quarter of the FY22, under the leadership of the Nidec head office CFO, under the name of the structural reform, the process of the negative assets or negative legacy was started. In order to facilitate the candid reports from facilities and BUs for this initiative, the CFO believed that this should not be incorporated into the performance evaluation of the BUs and the subsidiaries, meaning that the self-funding was not severe enough, this was not regarded as self-funding. In other words, this would be processed outside of the performance evaluation of the BUs and the subsidiaries. That is a scheme for this. This was proposed to Mr. Nagamori, and approval was given. As a result of that, around ¥160 billion of the self-report for the negative legacy was made. However, when the CFO got the approval from Mr. Nagamori, throughout the year for FY 2022, the policy not to go below ¥100 billion of operating profit was reported to Mr. Nagamori, and approval was given. In addition to that, Mr. Nagamori gave the instruction that a V-shaped recovery should be achieved in FY 2023, and then in total, around ¥160 billion of negative assets were reported. At which, the assets that require the process highly and the necessary assets for the V-shaped recovery were prioritized. Other deals or other assets were put on hold to be covered in FY 2023 onward. This is called the planned process at each BU and subsidiary. This planned treatment or assessment should be done at each BU. Or at the subsidiaries that... Now, this is so-called, the self-funding, meaning that they have to achieve the performance forecast while they have to process the loss. This loss must be absorbed by the profit. As a result of that, ¥56.6 billion of negative legacy was processed in the fourth quarter of the FY 2022. At the same time, prerequisite is not to go below ¥100 billion of operating profit throughout the year. The simple subtraction tells you that the negative legacies reported by BUs and subsidiaries, most of them are outside of the structural reform. Our committee found that when this structural reform was made, although there were made report made, however, the appropriate process was not conducted because of the self-funding. This is the situation for the fourth quarter of the FY 2022. I'd like to explain what happened after that. The negative legacy going through the planned process required the expenses. These expenses were covered by self-funding, and therefore actual implementation was not done. For example, in the fourth quarter of the FY 2023, because of the launch of new businesses, ¥59.8 billion was recorded as the expenses for the structural reform. In addition to that, the expenses necessary for the process of the negative legacy was not incorporated into the performance assessment of BUs and subsidiaries, meaning that this is irrelated to the self-funding. President Kishida explained the necessity for this initiative over and over again to Mr. Nagamori. However, Mr. Nagamori insisted that the operating profit target must be achieved, and therefore this request was turned down. Regarding the authority of the approval of Mr. Nagamori, as you found in the official version of the investigation report around page 44, up until August 2025. Nagamori, including the personnel change, as well as the allocation of fixed assets, all of them have to get the approval by Mr. Nagamori. In this sense, former President Seki and now former President Mr. Yoshimoto, although they are called president, but they didn't have the authority as you imagined, because everything must get the approval from Mr. Nagamori. This request was turned down, therefore as a result of that, in the fourth quarter of FY 2024, the negative legacy must have been processed. However, there's no treatment made. That is the situation regarding this situation for the untreated or unprocessed negative legacy. Mr. Kishida has recognized it. That's all for the situation for the negative legacy. Furthermore, what happened furthermore at Nidec, I'd like to explain what kind of fraudulent happened before that. One of the characteristics for the company who got the fraudulent, in many cases, the fragile or the internal audit function was pointed out. This was not applied to Nidec. In the 1990s, Mr. Nagamori found the situations where subsidiaries committed accounting fraud. Therefore he felt the necessity to set up the dedicated functions. That's why Mr. Nagamori reinforced now the personnel by hiring the certified accountants externally, for example. At the same time, he established the department for the internal audit. This is really rare for other companies because Nidec has established the internal audit department dedicated to the audit activities. This internal audit department covered around 60 sites. In addition to that, throughout the whistleblowing system, if the suspicious case was reported, special investigation was implemented. This is so-called the official public initiative. At the same time, Mr. Nagamori has found that there are some employees who are regarded as not having highly capable for the audit of functions, then he asked them to conduct audit activities mainly for the bribes and other accounting fraud. If the suspicious case was reported, special instructions were given by Nagamori, Mr. Nagamori, to conduct the focused investigation. This audit or investigations were conducted anonymously around in 2011 to June 2020. This anonymous audit was conducted. The contents of this anonymous audit was not reported to the internal audit department nor the accounting firm. This employee found any accounting fraud, he or she asked the correction immediately. If the amount is huge, instead of immediate correction, instruction was given to process those the accounting fraud more than one year to prevent the huge loss of the operating profit. This act itself should be regarded as accounting fraud because such a loss should be recognized as loss. Upon the report from the employee, Mr. Nagamori recognized that there are some cases where the immediate actions were not taken. He has accepted those cases such that the secret audit was ongoing. Apart from that, if the whistleblowing was made and then the official investigation was conducted within the Nidec Group, each year more than one accounting fraud was found, and each time the internal audit department has implemented special investigations, and there's no delay of the fiscal statement announcement. All of these accounting fraudulent cases were not published at all. The former executive said in our interview that Mr. Nagamori believed that it's very important to announce the fiscal financial statements faster than any other companies, and it's impossible to be delayed in the schedule for the financial statement announcement. Therefore, they have to prioritize to make it in time as the most important time. At any rate, whenever acting fraud was captured, the internal audit department has taken function. In the second half of the FY 2018, the external law firm has conducted the investigation. This period, the second half of the FY 2018, there was a report by the a party who were in charge of the audit for the United States sites, external audit investigations were made as a result of that. More than 1 accounting frauds were captured. In addition to that, as part of this investigation, forensic investigation was conducted, this forensic investigation has found that the similar accounting frauds were committed at many cases within Nidec Group. Emails and the documents have been shared with PwC Kyoto, it should be reviewed by the internal audit department. This relevant email correspondences and documents are related to the negative legacies related to the asset normalization project. That's why CFO of the head office, as well as the accounting department head, had explained what happened for this project for the asset normalization to PWC Kyoto. If you refer the list of the negative legacy prepared by the internal audit department that was shared with PWC Kyoto, says that the total amount of the negative legacy as of the third quarter of the FY 2018, ¥6.3 billion. Quite a number of negative legacies were generated due to the intentional fraudulent actions. This forensic investigation found that the anonymous audit was conducted for a subsidiary, and this report was also shared with PWC Kyoto. As a result of this forensic investigation, emails and other documents were confirmed, and based on them, seven cases were illegal accounting process. The total amount was estimated as ¥1.66 billion. However, by the end of FY 18, corrective actions were taken, and therefore, the all the necessary actions were taken. As a result of that, the announcement of the fiscal financial statements were done on time. PwC Kyoto submitted that there's a report of the appropriateness of their financial statements. As I have mentioned, legacy, negative legacies include the cases where the intentional wrongdoings or the fraudulent acts were not denied. If you see the mark of the intentional in the draft of this list, we have not yet confirmed whether the actual intentional fraudulent act was committed or not. There's no confirmation on that. There was no explanation for the PWC Kyoto for the actual situation of that. This external, audit firmAs a result of this audit, firm, although the auditor opinion of the appropriateness was submitted, however, a series of accounting flaws were identified every time the investigation by the internal audit department was conducted. There was a strong excessive pressure from the Nidec's head office. Mr. Nagamori's this style, but people refrain from trying to change the way Mr. Nagamori tries to force people to achieve the company's target. I'd like to give you an example here. This is about Nidec Servo Corporation. Please take a look at the page two or three or so. Please, if you have an electronic version of the document, please take a look at the page. Internal audit has confirmed various facts. Nidec Servo executives committed internal misconduct because of the excessive pressure to achieve sales targets. Despite all that, internal audit excluded such information about the department from the meeting minutes, and there was no reference made about the incident in any document. Mr. Nagamori had a favorite person and people thought that if this issue was written in the document, that would upset Mr. Nagamori, according to the from Nidec Servo executive. Well, when it comes to Nidec head office's managers provided the pressure, the information, relevant information was shared with the PwC Kyoto. NCJ, which means the Nidec's head office. NCJ has applied various excessive pressure. That is the root cause, allegedly. The comment about the such reference to the excessive pressure was made. We have a hearing minute meetings was found as well. From such executives, there was a strong pressure. Such a reference was excluded from minutes or documents. In meeting minutes, according to this Nidec Servo employees, they knew that it was necessary to achieve the target, but they had no choice but to process those negative legacies within a limited time range. There was a strong excessive pressure from Nidec's head office. There was a comment requesting additional, you know, the interviews with the NCJ executives. There were some comments, corrections were made to some comments as necessary in internal emails. NCJ's involvement was very aggressive, and some corrections are made in the documents to make the situation look normal. Such comments were eventually accepted by parties concerned. We reviewed all the accounting books. We didn't do it, actually. We didn't get to check accounting books. We didn't have hearing sessions with the this auditing firm personnel. We are referring to describe some objective opinions here in the document. From PwC Japan, we received a reply in paper. PwC Japan said in the document, based on the inquiry request received, as you can see here on the page here, we received. I'm going to read that reply out. With respect to the investigation, that First Senior Vice President as well as other executives, and we had a.NSRV, Nidec Servo is our acronym there. In order to achieve the targets and such, explanations from the teleconference was there, but there are some incoherent facts included in the meeting minutes. Hearing minutes were corrected to check the facts. When it comes to this partner, in prior to fact-checking, inappropriate as well excessive pressure were needed to be confirmed to be non-existent. Such a reply was made to us. With respect to this series of these accounting misconducts, there was found some cases, such cases were found in every single fiscal year. I'd like to explain how these facts were explained. These facts were reported to the Auditor Supervisory Board. There was no report made about excessive pressure from Nidec's head office to various group entities. There was a strong pressure from the Nidec's head office, but these board members, audit members didn't realize that these problems occurred because of the existence of excessive pressure from the Nidec's head office. In various areas, we have found these accounting misconducts. It is because of the excessively high sales standards set by Nidec's head office. That was our notion initially. Targets were set very high by this is with Mr. Nagamori's management method itself. It's very difficult to fight such a method head-on. Such information was never shared with outside members of the board of directors. Next, please go to the next section of the document out there. We never found any facts about the instructions, leadership taken by Mr. Nagamori about this excessive pressure. Mr. Nagamori knew that there are some corrections are made to accounting information that itself would be could be accounting misconduct. It's inevitable that Mr. Nagamori at least tried to accept the manipulated accounting information. There was a strong pressure, once again, for all the employees to achieve sales target, and those pressures were coming from Mr. Nagamori himself. It's very unusual for a department to be established to be in charge of handling or processing accounting information. Mr. Nagamori still continued to request everyone to achieve excessively high sales target. Mr. Kishida and others requested to Mr. Nagamori to go to a structural reform several times to go, you know, not to use the this negative legacy related method, but Mr. Nagamori rejected such a idea for reform. Therefore, Mr. Nagamori himself would be the very individual to be blamed for, to be responsible for all of these misconducts. There was no evidence found of Mr. Kishida's involvement. Mr. Kishida made efforts to improve the situation in our opinion. The final decision, approve authority was in Mr. Nagamori's hands. Due to the lack of the launch of the reform efforts, Mr. Kishida and the rest of his companies are in the current situation. Mr. Kishida himself should have being proactive in handling those negative legacy related issues, even in violation of Mr. Nagamori's instruction. Mr. Kishida should have acted more strongly, in our committee's opinion. Mr. Kobe, who was once such a person, he has long been in charge of sales operations of the company. Mr. Kobe wasn't found to be responsible for giving instructions for forcing people to achieve excessively high sales targets. There was no evidence we were able to find. Still, Mr. Kobe, even though less frequently than Mr. Nagamori, would receive reports from people in behaving committing misconducts. Mr. Kobe was aware of such misconducts in our committee's opinion. Kobe was regarded as the Mr. Yoshimoto and Mr. Seki were both regarded as successors to Mr. Nagamori. There was no evidence found these two individuals to have been aware of such misconducts. Once again, the outside members of board of directors, as well as members of audit and supervisory board, internal audit department made reports to them, but those reports never touched the root causes of misconduct. They were doing all that because of extremely pressure for a better business performance. That's a reason for this misconduct, and nobody was aware of that. Outside directors, none of them, based on our committee hearing interviews. For these companies had to reflect owner Mr. Nagamori's management principles and aspired always to perform high year, and achievement of that target was essential. That pressure was not recognized as anything extraordinary, and negative legacy issues were never shared with outside directors. Out of those that we interviewed amongst outside directors. They were not aware of Nidec having a long time issues of negative legacies and those efforts to resolve that issues were carried out for quite some time under the name of structural reform or making the asset a more healthier project. Those were not recognized either. To get to the root cause analysis, I believe that for our committee, we wanted to focus on the root causes, narrow down to the fundamental causes. The first issue is massive pressure for a better business performance. That is a core reason for this fraud and accounting practice. First of all, unrealistic target was established. To achieve that target, they faced enormous pressures. That pressure started from Mr. Nagamori, and that is passed on via Nidec's management executives and to all the business units and subsidiaries executives. That, in the end, resulted in fraud and accounting practice. Nidec had this very unique internal audit entities with accounting audit dedicated division. In that sense, compared to other companies, there are fewer opportunities to commit to account practice. The amount of pressure is way more than those possible fraudulent pre-prevention functionality that accounting dedicated internal auditing team they fulfill. What's in the context is Mr. Nagamori's absolute power within Nidec and all the authority decision-makings were in fact conscripted to Mr. Nagamori. Mr. Nagamori is first of all has the ultimate authority over personal matters for our group's executives. That is causing the accounting fraud, the enormous pressure to meet all the monthly target. This negative legacy that they have are facing for a long time, and there's been some efforts to reduce that sometimes, they were not drastic enough. All that is because of this enormous pressure from Mr. Nagamori to achieve the business performance target. In the background of that, Nagamori had sole-handedly had a power over appointments and nomination for executives, personal matters. Regarding the divisions that were not functioning. First, accounting division. We have discovered that frauds were conduct involves accounting departments of a business division and sub-subsidiaries. Accounting irregularities involving accounting departments at Nidec's headquarters are also discovered as well. The reason why accounting department to act as they're supposed to act as a second line of defense, but and supposed to act to check and validate the accounting practice of the company, but that was not functioning. We have consulted at least with external legal firms and as a preventative measure with external legal firm, they were asked to install a special report line at the business unit and subsidiaries accounting. That never realized. Actually that's mentioned in the report as well. They were quite weak in cross-divisional functionalities. One of the typical example is to try to grasp the negative legacy, but they were not, despite the fact that they are within a same group. Regarding internal audit divisions, the reason why the fraud accounting practice repeatedly happened, internal audit department recognized that the origin, the core reason resides in Mr. Nagamori, but and also together with that, business performance pressure. They didn't dive right in to the core issues. Internal audits, research reviews, could not possibly delays all the business settlement, fixed year closing schedules. That was most importance. Internal audit departments, auditing committee, auditing board members and regular auditors, and committee members were aware that core reason for accounting fraud practice were because of the enormous pressure from Mr. Nagamori. Regular audit members were saying directly that because of this high aspirational target and to do the best to achieve it. That is Nagamori's management style itself. It was quite difficult to question that straight on. There was no governance working at all. External auditor, there's been some individual cases explanation in the past, but those explanation were remaining in the surface level. There was no core reason for this accounting fraud shared with external directors. Outside auditors were not aware of the fundamental reasons or core reason that Nidec's was facing. This issue, this problem awareness were not aligned amongst the group and the Nidec group at various different sites are constantly, repeatedly having a wrong accounting practice is quite abnormal. There has been no outside director who saw some oddities in that situation. The committee concretely agrees that anyone with a professional knowledge, a different knowledge or experience looking at such a unique situation, they might handle it differently. When our third-party investigation committee faced these issues, this amount of significant account wrongdoings were already discovered within the group, we were surprised with that. It wasn't the first time they discovered it. Nidec's executives and employee provided inaccurate and misleading information to accounting firms to elicit a favorable opinions. Nidec's directors were seeing personnel of PwC Kyoto as a easy one's target to persuade or to give in to. What's recently discovered is some of them were on extension of aggressive accounting practice. Because they saw PwC personnel's counterparts as a easy target to persuade, that also led to this nonstop practice of accounting fraud. That's also a possibility. Amongst this accounting fraud, we saw the Nidec employees hiding some of the evidences or testified in the false manner to PwC Kyoto. Even if the auditing entities were not fully aware of those evidences, the ones who were, they shouldn't be blamed for the wrong accounting practice. The ones who are actually doing it is not the auditing entity, it's Nidec itself. Nidec lacked in understanding that they are fully responsible in providing the correct and accurate financial statements. Nidec's reform, reconstruction committee head, is led by the current CEO and the president. Nidec's improvement measures, from our committee's perspective, do have certain concerning point, but fundamentally, we believe that those measures are beneficial to prevent accounting fraud from happening again. Our assessment is that their improvement measures were valid. On this occasion, we would like to provide additional advice from this committee. First is complete ejection of Mr. Nagamori presidency. He needs to be leaving the company completely because this was a company that he founded. His management principle was permeated throughout the company. This whole series of accounting practice cases root causes is because of Mr. Nagamori's management styles and his governance are not working. In order for Nidec to reform itself, Nidec needs to exit Mr. Nagamori's presence. In order to reduce the impact from Mr. Nagamori, other shareholders, I do believe there is a discussion, that's worth doing, for the possible termination or the rejection, ejection or cancellation of the shares or under some consensus, to limit the certain rights exercise. It's not something that Nidec's can do through its own initiatives, but it can be a part of a preventive measure. Many of these measures that the company put out are on the surface level. What's important for Nidec is not only Mr. Nagamori, but only the part of Mr. Nagamori's surroundings making significant impact for the appropriate business practice. How to prevent that, the key player will be outside directors, of course. What's the problem here is a business manager may be influenced by only a certain limited number of stakeholders. Strategy to sort appropriate succession business operation. The most powerful countermeasure is via not the supervision functionality under the direction of management, the one with legally backed up authority. That means external directors. It's easy to be said, the external directors participate in the board meeting only once a month. It's quite difficult to understand the root cause that is hidden behind businesses. Even if they recognize certain agendas that are challenges the company bears, and they make a comment at the board meeting levels, but it's quite difficult to combat the counterargument from the director who are in executive positions, who are involved in day-to-day business. Given all that advice, even if we were to include accounting professional or someone with a significant management experience in external advice, will not completely guarantee that any tinted, colored looking glass when making a completely independent audit responsibilities. In order to fulfill the functionality of Outside Director as the way it should be, we believe that we need to improve the information that is shared to Outside Director. That's essential. Also, we need to have a system where Outside Director can work with other external parties to strengthen his or her advice. First of all, the information quality is essential. That's been our biggest issue here. Outside Directors are legally backed to save the company in the times of emergency. It is essential for outside director to provide advice to save and rescue the businesses through the Nidec management in the time of needs, and regarding necessary support. Having a dedicated staff may be too excessive, but whenever external director requires some support, companies need to provide that as well. As needed, for the outside directors, strengthening, it's probably beneficial for these companies to have attorneys, or to get advice, seek out from legal professionals. Outside director has strong authorities, but the reality may be different because there may be a certain reservation, certain consideration, paid to the regular directors. Outside directors also are human too. It's unavoidable, and that's mentioned in the improvement measures taken by Nidec. Getting a teams involved is essential to improve this company. One person will not be able to save this company. If there were three peoples with aligned issues awareness, then they can cope with those issues, and then we will be able to combat those difficult challenges. I think that is quite important. In the end, sincerity to the investors, to the open capital market is essential and that needs to be done thoroughly, as I mentioned in the root cause explanation sections. Disclosing inaccurate financial statement that are approved or disapproved by auditors is a fraud, and it's a fraud against the capital market. They need to recognize that Nidec is losing the trust of investors now. In order-- That is the first step to Nidec to restore the trust is to show the true and honest business situation openly to the capital market. That is essential work that needs to be carried out by CEO and CFO. Last but not least, I don't think this accounting fraud practice gives questions to Nidec's capability as a manufacturing manufacturer. The issue is because they were so focused on meeting the targets, and that pressure causes accounting practice. Nidec's core business value of monozukuri company still remains. The company is not what Nagamori San imagined to be. If Nidec can prove to the market that the real capability as a manufacturer, I think the market can trust the Nidec's again. I have to emphasize that the current investigation is still ongoing. For my officers and the current officers, I really appreciate your support and assistance, especially for the current officers at Nidec. Please not they make new born Nidec, and that attitude has been felt quite strongly throughout our investigation. Therefore, on behalf of the committee, I'd like to appreciate your support. Because you are member of Nidec and therefore as a human as well as the manufacturing enterprise, you are the base and true strengths of Nidec. I believe Nidec can regain the trust from the market and investigators, the investors because of you. Sorry for occupying the stage for a long time, but that's all for the result of the committee investigation. Thank you very much for your kind attention. Thank you very much. Now, I'd like to open the floor for the Q&A session. Today, we'd like to receive as many questions as possible from the audience, can you please limit yourself to raise one question per person. If you have a question, please raise your hand and the moderator will assign who can speak up. Please wait till a microphone alerts you and please identify your name and affiliation before stating your questions. Now, please raise your hand if you have any questions. Okay, the person in the third row, please. I'm Amori from Toyo Keizai. I have just one question. Now, this time investigation and its result, it's concluded that responsibility should be filled out or by no means there is no such that the gravest case is identified in this investigation. Oh, sorry, it's not chronological, but criminal. That's right. Okay. As I mentioned at the very beginning, the role of our committee is to analyze the root causes for the fraudulent a-accounts. At the same time, we expected to present the recommendations. Of course, there's the criminal penalties are put in place based on that prerequisites, whether we have to ask criminal responsibility or not. That is outside of the scope of our role of a committee, and this was not what I have to do as the attorney at law. Because it's related to the ethical issue for the attorney, they please understand that. It's very difficult to respond to that question as an attorney or lawyer. Okay, thank you very much. The next question, the person in the jacket at the front row, please. Thank you very much. I'm Murai from Diamond Corporation.This time, accounting fraudulent, when I read the report, at each company there are wide varieties of the fraudulent activities such as the avoidance of the impairment processes or the deferral of the profits, and these activities were identified throughout the group companies. Because of the very strong aggressive and pressure imposed by Mr. Nagamori, this is one of the reasons. In addition to that, regarding the fraudulent accounting process, there are no cases where the instructions or orders given by Mr. Nagamori. However, regarding the disposition of the legacy liabilities or involvement of the CFO to legacy liabilities or the organization of a special audit department processed and disposed of legal legacy liabilities in a very planned manner. When I look at these activities, is that regarded as the systemic and the disposition of the accounting activities are conducted? There's no instruction nor order from Mr. Nagamori for these fraudulent cases. I read it in the report. However, special audit included disposition of legacy liabilities. Each time there is actual conduct of the fraudulent accounting, and therefore to what degree Mr. Nagamori was aware of these conducts or activities, and then based on those recognition, what kind of instructions given by Mr. Nagamori? For example, did he say that he didn't know anything? Thank you very much for very good question because to begin with, I should have explained it in my presentation by spending enough time. That's why I really appreciate your question. First of all, regarding the legacy liabilities, let me elaborate on what it is. These legacy liabilities are not caused by the fraudulent accounting necessarily. Of course, not the future impairment process is necessary or the possibility of the impairment loss should be reviewed and the legacy liabilities are most of such nature. However, some of them, some of the legacy liabilities must be disposed right now here, or some legacy liabilities must have been disposed in the past. However, some of them still remain, and therefore, when you hear legacy liabilities, you believe everything is negative. However, it's kind of risky assets. However, because they are risky existing as asset for each fiscal year, that is a problem because disposition is necessary. Although some of the employees believe that they wanted to dispose of the legacy liabilities, however, if they did so, they could not achieve the expected performance, and they had to defer the disposition of the legacy liabilities. Because of that, they have lost in a good timing. Recognition of legacy liabilities as a whole, and they should be disposed in a planned manner. However, they are not equal to the recognition of the fraudulent accounting. In this sense, the CFO at the Nidec head office, He had used all the planned and disposal. However, it's not good because not ¥100 billion should not exist as legacy liabilities. He has to look into the details to identify which one should be disposed and which one can be remained. The order is important for these activities and therefore for CFO. For example, although the SCFO recognized some of them as the bad liabilities and that they though they should be disposed, Did he that much? No. That level of recognition was not done by the CFO. What is your question? Sorry. Then to what degree Mr. Nagamori was aware of this. Regarding this special audit, nature is different from usual audit. To be more precise, please refer the Nippon Densan Copal description in the official report. Let me see the page number. Sorry, I don't remember it, but you can see the detailed explanation for that. If you happen to have the report, I believe it's around page one or two, approximately speaking, where you can see the descriptions related to Nippon Densan Copal. Suppose that there's a certain fixed asset, and it's inevitable to apply impairment accounting. However, in the process of impairment, in a process, Mr. Nagamori himself negotiated with the counterpart. It's failed, and that's why the inevitable impairment process was applied. You see the detailed process, who were involved in the special audit and report, how report was raised to Mr. Nagamori. Mr. Nagamori was aware of this. Although this is just one of the examples, but then regarding the special audit to its activity, we believe that the Mr. Nagamori was aware of the detailed information and therefore based on that, we regarded that Mr. Nagamori accepted the fraudulent accounting. That means that Mr. Nagamori himself was aware of and accepted the fraudulent accounting. Please refer the description of the report. To begin with, I should have instructed that these assets should be disposed immediately. However, the employee in charge of the special audit said that the special disposal was made, and therefore he accepted it. By the way, Mr. Nagamori accepted this time interview? Yes. He was interviewed. I don't remember how many times we got interviews, but I remember at least four or five interviews were made with Mr. Nagamori. Thank you very much. Any other questions? If I may, I have a follow-up question regarding the detailed in a report. Pages of 108 and 109, you can see the exact descriptions referred in this Q&A. Thank you very much. Now, the next goes to the person in the second row from the back. Emi Sato from Morgan Stanley. First of all, thank you very much for your explanation.At this moment of time, investigation is still ongoing, as I heard. At the end of the day, the report from the investigation will be available. When can we see the report? At that time, can we see the amount of impact onto the assets, net assets, compared to the previous fiscal year? There's a negative impact of ¥139.7 billion, according to the current report. Are there any possibilities that this amount may change? In addition to that, because investigation is ongoing, the reason why the investigation is going on, what's the missing points? Thank you very much for your question. Let me answer to the questions where I would be the best person to reply. Final report of the investigation, I assume you'd like to know when the final report will be coming out. All I can say is TBD. Nothing is determined yet regarding the timing of when the final report will come out. The third question, probably I should answer to the third question, but can you please state your third question once again? I don't know when, but now the ¥139.7 billion, this is the impact onto the assets, net assets, and additionally, what your committee has to investigate. Thank you very much for repeating your questions once again. Regarding the question two, we have completed the root cause analysis. What remains, that is the each case of fraudulent accounting investigation. We have to complete this investigation. That's why in this report, there are 12 specific cases. This is just a part of the fraudulent accounting, in addition to them, there may be other fraudulent accounting. Our committee is still conducting investigation. What internal audit has done, what audit and supervisory committee has done and what is the special audit was, these are the related to the root cause analysis, we believe that our committee has exhausted the root cause analysis of such. The second question or the first point in the original questions, probably I need to ask Mr. Inoue to respond to that. Thank you very much. This amount of ¥139.7 billion may change or not. Our investigation is still ongoing, just one week or another would be suffice to complete our investigation. I myself cannot say it clearly. We have to wait 'til investigation completion. There may be the further negative impact onto the net assets. How much will it be? I cannot say it right now. Please understand the following regarding the seventh impact onto the consolidated financial statements. Probably, usually, you'd like to see the impact for each fiscal year. What we got this time is now FY 2025, the end of June, as of the end of June 2025. That is a timing of calculating the impact onto the net assets in order to disclose and publish this report. We have completed the root cause analysis. We have confirmed almost all facts. Now, the committee believe that it's better to share some numbers, although it's still working in process. However, we believe it's better for us to share some numbers, and therefore, it's not a number for each year that we'd like to share the latest number. That is ¥139.7 billion as of June of 2025. That's why from now on, we'd like to finalize the number for each year. There are some deferrable. However, as a result of the investigation, we may see some deferred numbers. However, we have to wait till the investigation completes. Once we complete the investigation, we'd like to share the number. Most important point is that now, what is the amount of the fraudulent accounting for each year? We have to clarify the number for each year. That's why we needed to investigate the matters more. How many years do you go back in time when you do investigate? It's from 2020 fiscal year till 2024 fiscal year. Plus our first quarter of 2025 fiscal year. Five years and three months, actually. The investigation has spanned over six months, and your numbers are yet to be finalized. Does that mean that Nidec does not have enough information or documents? Or what... Would it be because of a lack of appropriate personnel at accounting or financial departments? Let me answer the question once again. There are quite a few factors involved in here. If I may give you some information. As you can see in the investigation report, we conducted digital forensics, questionnaire, interviews, hotlines. We used all of these methods to understand what issues were. There are quite a few issues we found. It's a huge number of issues we found, actually. We at the committee checked all of these issues one by one, and some issues were truly terrible. We had to cover all over the world. Issues all over the world. It was difficult for us to be able to handle all of these alone. We recommended the voluntary accounting inspection. That's the approach we took. We cover all the CFOs, accounting GMs, to go back over the past six fiscal years, starting from 2019 of... They have to cover all of the six fiscal years to check for any problems or misconducts that they were able to find. In order to help them, we found various method schemes for misconducts in inventory assets. For example, they're overestimating the quantity or the amounts. All of these, the schemes have to be covered, we need to come up with a checklist to cover all the related affiliates as well as subsidiaries around the world. No one would trust you if you could do it, everything yourself. You need to come up with evidence. We had these people provide us with evidence from the past. That way helped us to understand various relevant matters. We had the cross-checking method introduced as well. Our company's CFO or accounting GM were checked by equally experienced accounting personnel from another organization. We did this cross-checking at all these different business bases all over the world. This process is almost over, and we have edited more than 1,000 issues. Cross-checking is still ongoing. There are some 10% to 15% of the entire business bases that are yet to be finished with this approach. Nidec head office is supporting, well, we're getting support from outside experts, and these experts need to check evidence as well. There's a triple checking method we have employed. We, the third-party committee, examined the results of all of this checking. It was huge amount of volume we had to cover, and schemes were various. It had to go through various people's eyes to understand the truth. This is why it took as long as six months or even longer. Thank you very much for explanation. Thank you.I would like to cover questions from as many people as possible. One question per person, please. The person over there, wearing a pink shirt. This is Chikao of Nikkei Cross Tech. I would like to ask a question regarding Mr. Nagamori. Power harassing management, it was very infamous from the past, around a long time ago. That person was very strict about achieving a target from the very beginning and the foundation of Nidec. Since approximately when this misconduct started taking place? Mr. Nagamori's strictness was shifted into a misconduct-related approach. What would you say would be the timing? Thank you very much for your question. To give you a conclusion first. We couldn't find out exactly when this misconduct started. Still, at least we can say that, 2020s or even 2012 or even 2013, even around that time, ¥10 billion orstarted. so of negative legacies existed. The facts were checked or confirmed 'cause I believe that's when as the accounting misconducts were being conducted back then. Mr. Nagamori himself in a hearing session with us, told us as follows. Mr. Nagamori himself liked his so-called hands-on approach, according to Mr. Nagamori himself. His approach, according to himself, was not really perfect enough. In the recent years that we have checked, I believe his hands-on approach was insufficient. The business targets were decided based on shareholders' perspective. Because of that, these targets were unrealistic. It was unavoidable for such unreasonable targets to be created, and that is what I could say to your question. When the sales exceeded ¥1 trillion, for example, when the company launched the E-Axle business in 2020 fiscal year or so, he started explaining in a very large blueprint, in my impression. How would you say to those situation events? With respect to financial impairment, there was a huge impairment. That's a fact that happened. When it comes to accounting misconduct, I believe that occurred far before such event took place. This is something that I've mentioned in our investigation report. Mr. Nagamori himself were talking about achieving the sales target. It was ¥3 trillion or even more. Mr.Nagamori was around the 40th anniversary of the company. I believe he probably started saying something his company could not achieve. Is that Mr. Nagamori's own words? That is correct. In our interview with him, he said that. He knew he was reaching the target. He didn't say the exact words, but he was feeling that way. It's not exactly related to the accounting misconduct themselves. It wasn't that there was a certain trigger for all the accounting misconducts. There was excessie pressure for people to achieve very excessively high targets. Under the such circumstances, a misconducts occurred. Thank you. Please. This is Shirai, member of the committee. I would like to add some points to Mr. Hirao's point. During the company's 40th anniversary. Page 40 is where this fact is mentioned. Around 2023, Nidec was 40 years old. He started thinking that he was saying something that is rather unreachable as a company. Thank you. Any other questions? Okay. On that line, the person fourth right from the top. This is Kanai with Yomiuri newspaper. Thank you very much for your explanation. In your explanation, you said Mr. Nagamori, Kishida-san, Mr. Kobe. Mr. Kobe, Mr. Nagamori, Mr. Kishida weren't really leading these negative efforts, but CFO related organizations were in charge of those problematic issues. Some people thought about these manipulating methods. What layer of people came up with such methods? Were these people able to come up with such methods after being told of such methods by other people? We have identified various schemes at different timings. If you take a look at the document, we have 12 different cases. These people are very various. These people vary. A CFO of a subsidiary, and after giving approval from the subsidiary's president, he came up with the scheme for misconducts in one case. In another case, a head office's accounting personnel led such efforts. As a background, people were forced to achieve the targets. The subsidiaries were so forced to achieve their own targets. CFOs of head office, they need to achieve their consolidated targets of the company. Head office's accounting personnel try to help subsidiaries achieve their targets based on a conversation between the head office and its subsidiaries. There are quite a few variations. It's all a part of the same background. You have a CFO of the head office, you have the executives of subsidiary, related group companies, and other personnel concerned were involved in this misconduct in many cases, in my opinion. Any other questions from anyone? Okay. The person wearing a cap or hat, the fifth line from the top. This is Miyajima of Monthly FACTA magazine. Thank you very much for your efforts. Thank you. The question that I ask you the most is about the internal investigation. Mr. Nagamori was never interviewed internally. Here, you have, I would say, interviewed five to six times with him. How frequently did he accept an interview request from him? He himself says that he himself was to blame, but what type of statement did he make to your committee? Did he really apologize truly from the bottom of his heart? Did he give any instructions? He says there's no instruction made from him, but he says forensics, et cetera. There is no live voice or opinions from him. It's like the groups of wolves as well as sheep. you know, each group says various things, shouted various things, a royal way of business managements, et cetera. Is it true that there was no instructions? My people knew that what results were going to be created as a result of such instructions. Who is going to be responsible, I wonder. In that regard, I can see, only see the two different of groups, sheeps, sheep and wolves. It's not about the forensics. We like to know all the words of the true words spoken by Mr.Nagamori. I believe shareholders agreed with me. Our media are, we, the media, are to blame, of course. You are the third-party committee. I'm not sure about your contractual terms with the company, but you need to clarify the truth about Mr. Nagamori. Otherwise, this third-party committee will be meaningless in my true opinion. What do you think?Thank you very much for your honest opinion in advance. Thank you very much for your question. You definitely have a point. I appreciate your candid opinion on this topic. I personally think that those words from Mr. Nagamori, raw voices from Mr. Nagamori, I think it's worth sharing. How much interviews have we conducted? We can't share exactly what date, but frequency-wise, I think I'm correct. I met with him. We met with him four to five times, and we spend two to three hours each time. I am not in position to disclose all the exact words and comments shared by Mr. Nagamori. Everything that we need to disclose are within the report. That's everything, nothing more. Regarding your point about sheep versus wolf, I think you have a point. Mr.Nagamori talking about that, traditional accounting, traditional management, mainstream, that is true. He really wanted to have the proper management of that committee, I am not, and nobody in this committee members are in a position to deny that. It is true that he was in part acknowledging accounting fraud, and that originated from enormous pressure, unrealistic business target put up by Nagamori-san. I'm sure, including President Miyajima and the media, has expressed their thoughts, and I do understand your sentiment from that question, too. I do recognize there are various views against the report that we have compiled as well. Thank you very much. We have a limited time for this session because there will be additional press conference by the company. I would like to take two more questions, please. Sei from Asahi Newspapers. I just would like to ask a question regarding to confirm. You acknowledge the accounting fraud from 2012 time, 2013 times. Is my understanding correct? I don't want to misread anything. In our survey process, there was some story about 2013. If I say starting from 2013, that would be misleading. You can say that from the past, from 2013, that is just simple wrong. That it was one episode from one of the subsidiary, I'm sure what they were shared was true, that's why I picked up in my report. That doesn't mean that accounting misconduct happened from 2012, 2013. Your research scope is, investigation scope is 2020 onwards, you believe that this kind of improper practice happened for quite some time, correct? Our survey period started from fiscal year 2020. Thank you. Okay. You don't need to share the detailed numbers, exact numbers, but, number of misconduct, how many cases were you aware of as the third-party committee? Are you talking about dozens or hundreds or possibly thousands? That level's fine, ballpark. Regarding number of cases of misconduct, it's quite difficult even for us to grasp. The reason for that is because we've been asking self-check by all the stakeholders. What happens is that once the report's filed, there needs to be certain corrections regarding, for example, in journaling process, in that entries like ABC, on the debt size may need to be recorded separately. Because of things like this, we are unable to calculate the number of cases at this time. Furthermore, I don't think we'll be able to get an accurate picture of it either. Regarding your questions, I'm sure the number of misconduct is over 1,000. Regarding the misrepresentation of the business performance, false statements about business performance, did it happen? What do you mean? I would like to have an exact definition of false reporting of business performance. For example, in official performance figures that are written in, let's say, securities report, Yūho Report. Those supposed to be official. I think if there was a false representation, they got to be facing administrative or criminal penalties, I believe. You're talking about the false statements in the U-Report security reports. That did happen. That's a fact. There can be some penalties. I am not sure about what kind of disciplinary action that they will be facing. Okay, understand. I'd like to take the next one as the last one. Person who is sitting way back in the room. Venue, please. Thank you for taking my questions. I am from Nikkan Jidosha Shimbun. Nagamori-san was considered to be the expert in M&A acquisitions. He has acquired various businesses inside Japan and outside.In that process, PMI activities, integrating all the operations, including governance and also treasury, financial accounting work too. That balance perhaps was not well done. Do you think that the failures in the PMI effort is a part of the reason for this incident? Did you hear anything about that from Nagamori-san himself? If you could please share episode, that'd be great. In that sense, we're not looking at this malpractice from the perspective of PMIs from accounting fraud. Because our perspective was conducting accounting fraud. I don't think we'll be able to answer your question 100% because the purpose of the report is different. Survey is different. This is a part of our report too. It's already publicized. What he was adamant regarding subsidiary is to manage it the way he bought it. He's quite persistent in not doing scrap and rebuild of the businesses that they acquire-- what he acquired. That is the reason why Nidec has over 350 subsidiaries. Of course, they are doing sub-consolidation too. In the reporting entity units, the number would be less. The accounting practice is quite complex, and the business headquarter and subsidiaries are not connected apple to apple, so to speak. One subsidiaries are doing multiple different business units work. Those cases definitely exist. It leads to complexity in their accounting practice. That is not the core reason for this accounting fraud. I'm sorry, we are focusing quite a bit on accounting department. Regarding accounting department, doing work across the division, that is 1 improvement that is the 1 organization work that they can do. Sorry, I'm not directly answering to your question about the impact of PMI. Thank you. I'm sorry. You asked me about the number of cases, and I answered a little bit. I don't want to mislead anybody regarding the number of misfraud cases. If you could please refer to our full report, page 163, please. Sorry, not 163. Please go to page 155, Chapter seven, regarding the impact of consolidated financial statement. This times ¥139.7 billion, and this is mispractice and also mistakes that are discovered in this self-check process. There is simple error in accounting. Error is not misconduct. It's not fraud. We don't want to add fraud with errors. I don't want to mislead you with a number of cases. I definitely like to have all the journalists refrain from referring to the number of fraud cases in your report. That's what I ask as an accountant as well. How would you see this situation? Rather, I would like you to notice that this kind of mispractice fraud were happening at various different sites over multiple different system and fashions. From that, you can make your own assessment. It's not of one particular business unit or one particular country or the site. There's a segment information in page 163 too. There's a misconduct in the small motors, there's misconduct in group companies. 6, all 6 places, that practice were discovered. It's not a number of cases, it's a significant diversity. Okay, this concludes the third-party committee's press conference. Thank you very much. Now we would like to start the press conference. First, we would like to introduce to you our presenters, Mr. Mitsuya Kishida, the President and CEO of Nidec Corporation. Mr.Kazuho Nakagawa, the Vice President and Acting CFO of the company. Mr. Masayuki Iminagi, the Vice President and Chief Compliance Officer. I am Keita Watanabe of Nidec Corporation's Corporate Communication Department. In this presentation, first Mr. Kishida will give his opening remarks, followed by his presentation on the investigation report and our company's response. We like to have the question and answer session after that. Mr. Kishida, please start your opening remarks. Thank you. I am Mitsuya Kishida, the company's President and CEO. It was September the third of last year that we launched a third-party committee on a series of issues. For the following six-plus month period, the committee conducted objective and comprehensive investigations to identify those issues, root causes, make proposals for recurrence prevention purposes, et cetera. On February the 27th, which was last week, Nidec Corporation received the committee's initial investigation report. We are truly grateful to the members of the committees. As they explained the report in detail already, I will explain how Nidec will regard this report. The investigation revealed numbers of inappropriate accounting practices at many of the Nidec Group's business bases. The identified inappropriate accounting practices and errors will make a financial impact on our net assets by approximately ¥137.9 billion on Nidec's consolidated financial statement as of the end of fiscal 2025's first quarter. The aforementioned findings include inappropriate accounting practices were conducted based on unrealistic business targets and under excessive pressure to achieve them. The company's management could not correct the circumstances. Accounting and internal audit departments could not perform their check-and-balance functions. Further, employees submitted the wrong information and disclosed inaccurate financial statements to the auditing firm, acting insincerely to the shareholders and investors in the market. We take extremely seriously the fact that we caused such serious accounting misconduct. To all people concerned, we deeply apologize about the fact that we disclosed inaccurate information and failed to meet expectations of shareholders, investors, and people of the market. The inappropriate accounting practices have been causing anxiety and trouble among our business partners, and that we have caused anxiety and trouble to society. To all of the people concerned, we deeply apologize. From the bottom of our hearts, we are truly sorry. Please allow the presenters to sit on their chairs. Mr. Kishida explains how Nidec will consider investigation report and the company's actions going forward. I would like to explain our response to the investigation report. Please take a look at this document. It was back in September 27, we received the actual report, and we did some masking and other adjustments. The investigation by the committee is still ongoing. We will continue to be fully cooperative and fully committed to cooperating with members of the committee. As soon as we receive the final version of the document, we will disclose its contents. The investigation is still ongoing. At many of our business bases, inappropriate accounting practices have been identified. An avoidance of recognizing valuation losses, avoidance of impairment losses based on the sales plans and low profitability of achievement. The impact on the consolidated net sales as of the end of first quarter of fiscal year 2025, resulting from the correction of misconduct and errors identified to date is approximately negative ¥139.7 billion. We extremely seriously take this fact. We will launch following appointments of our personnel. Please take out the middle section of this slide. I will remain committed to doing my very best to reforming Nidec. In order to have the current status of Special Alert Status lifted, we will do everything we can. I will return 100% of monthly base compensation until submission of the written confirmation of internal management system. As of today, March 3rd, Mr. Kobe, the Chairman, Mr. Kitao, Executive Vice President, Mr. Samura, Senior Vice President, Mr. Nishimoto, Executive Consultant, they have resigned from office as of today. In addition, First Senior Vice President, Valter Taranzano, has his job suspended, and his retirement process has started as of today. CPO, chief performance officer, will be abandoned as a position as of today. You can see the compensation will be reduced as follows beginning in March 2026. First, senior vice presidents, senior vice president and vice presidents, 50% of monthly base compensation for four months. With respect to the members of the board of directors, outside of board members, 30% of monthly base compensation for four months. Based on voluntary request, this compensation reduction will take place. Based on these personnel actions, as of the 1st of March and as of April 1st, there will be a major change to our personnel system. Based on the third-party committee's report and these personnel changes, all the business bases in and outside of Japan, we will make sure to make our company transparent, and we will rebuild Nidec. To be more specific, Michael Briggs will be in charge of ASM and MOAM business unit. Mr. Wada will be in charge of AMX business unit. We have the senior GM system. Some people will be promoted to the vice president's level from the level of senior GMs. This will be a one giant step for our bright future as a company. I, as a CEO, will take a strong leadership to unify this company. We need to regain trust from all of our stakeholders. As a company, we need to rebuild, fundamentally rebuild our governance system. We will check the configuration of the board by inviting individuals with corporate management experience and accounting expertise. We will build a management oversight structure that combines professional expertise with diverse perspectives. We will establish a truly sufficient and a mandatory supervisory system. In this third-party committee's report, we have received some factual information. We will promptly establish the Responsibility Investigation Committee. We will target the current and former directors and executive officers. We will investigate whether they bear any legal responsibility, including whether they breached their duties in execution of their responsibilities. The timing of the committee's establishment and its overview will be promptly disclosed once determined. It was last year, at October the 30th, that we established a Nidec Corporate Reform Committee. Based on the improvement plan and the status reports, specific improvement measures are currently being reviewed and implemented. Based on the latest report from third-party committee, we are promoting highly effective measures to prevent a recurrence by making timely revisions to the improvement plan. With respect to restoring the market trust, we will complete the establishment of our internal control system and submit the written confirmation of internal management system to the Tokyo Stock Exchange. Here's our upcoming schedule, but before that, I would like to give you some more information here on this slide. As of fiscal year 2025, the first half and second half year, we will have no division, year-end division. The investigation is still ongoing based on the material impact, this, I believe, will be the right decision for us to make as a company. For us to be able to restart the division process, we will stay unified. Please go on to the next slide. Dividend will be provided in the... and hopefully... Please look at this document, the impairment losses. There is a possibility that additional impairment losses may need to be recognized as derivative impacts of downward revisions to past fiscal years, profits and losses based on the findings of the third-party committee. This information has been disclosed just today. Next slide, please. As of our business situation, I would like to give you a brief summary of that. Since last time, we've been continuing to communicate with you that under any circumstances, we will not have disruption with our existing customers and our suppliers. Regarding business overview, our sales, manufacturing status, and also about our financing, I would like to give a brief update. The current order status remains strong, and there's been no major changes to our existing production plan. On the right-hand side of this table, under Q3, what used to be ¥6.2 billion in sales in the last year, Q3, has increased to ¥677.7 billion. At a total of ¥1.98 trillion levels as a cumulative total. Our production base are operating normally and have maintained a supply capacity. On the bottom right, regarding our financing situation and regarding interest-bearing debt, you can see from Q2 to Q3, we are at, ¥1 trillion and ¥1.2 trillion yen against ¥12 billion yen. That means, that a re-shuffling of debt, we have cash in hand of ¥500 billion. Plus cash and cash equivalent, is at ¥344.5 billion, became ¥890 billion. That is a borrowing of ¥500 billion itself, plus a cash flow on operation improvement of ¥50 billion. ¥550 billion improvement is included. Q3 is ¥890 billion. We are not tampering any commitment line of ¥600 billion regarding this cash situation. Well, as additional note, various disclosure that we shared on February 27th and March 3rd. This is our company's response, and we are waiting to receive the third-party committee's final report to continue to enhance our improvement measure. We plan to file the submit a confirmation of our internal control system on upcoming October 28th. Thank you. Now, I would like to take questions from the floor. For those of you with question, please raise your hand and please state your name and your affiliations. I would like to take as many questions as possible, so please keep your question to one per person at a time. For the press and for the analysts, this is a joint, we have analysts, and we have a press, present in this venue. I would like to nominate one each. I'll like to alternate. First, the press person. The male person sitting on the front row, please. Hello, I'm Hiraoka from Nikkei newspaper. Thank you for your presentation. Regarding the scope of a possible impairment loss of ¥250 billion, if you could please give additional information on that, what that would be, and the relationship with our current, this time's, accounting, inappropriate, practice regarding the timing of this impairment loss. I would like to have Nakagawa explain. I will provide additional explanation, too, as needed. Thank you for your question. The third-party committees reported, I mean, we are reporting at the same time, it can be confusing. First of all, this ¥250 billion is separate from ¥139.7 billion that came from inappropriate accounting practice that impact our equity. That is separate things. This third-party investigation on our wrong accounting practice will continue, not finalized yet, at the moment, that loss will be at ¥139.7 billion. The third party will continue to work to deliver the final results, we would determine the impact for every year. We will conduct impairment loss check tracking back to the past. That's what you're seeing right now. At this moment, we don't know by when and how much. We would like to first set a certain premise as a hypothesis and have made the simulation based on that. This is not necessarily a final amount. When we close our book once more time, and we will do a calculation once again, then we would scrutinize again about the amount of impairment loss. Let me add to that. As I mentioned in the beginning, this has nothing to do with inappropriate accounting practice. This time, ¥139 billion loss that we would go back to the past. That is a rough impairment loss scope that we have recognized now. Thank you very much. My second question. Within your, the third-party report, there was an explanation about the negative legacy. That is the same as President Kishida's comment. How is that situation today right now? What's you r awareness levels? Well, negative legacy doesn't necessarily equals to inappropriate accounting practice. That was mentioned in the third-party investigation report, press release as, press conference as well. It's a list of asset which can contain risk assets. For example, I was in charge of automotive business, and we were discussing a few times about how to recognize such a negative legacy in our book. In this time's investigation report, It's a first, it's a news for me, that this kind of a discussion were taking place in various different part of the company too. We need to put that in the right practice in terms of having a formal process and have a systematic approach so that we won't repeat this kind of a misconduct to happen again. That's my understanding. Regarding a negative legacy, what is the scale in terms of amount currently, and what kind of policy do you have regarding how to handle the negative legacy? Regarding how much is remains as negative legacy is not something that we have a clear understanding. In future, we will have appropriate accounting practice and accounting timing. Like self-funding or plan postponement, to have a phased approach in the impairment loss is not something that we would do everything to avoid. We'll be working together with the global operation teams to make sure that we'll have a firm process to prevent from this kind of practice to happen again. Next question is, we need to take from analyst. Person in the backshare, please. Thank you for taking my question. I am Takayama from Goldman Sachs. I have some question about numbers to make sure that there's no misunderstanding on my side. This ¥250 billion, this is of the past, and you have studied every year's impact, and this is amount of scale. It's not the wrong practice or errors. It's illegal, but this is something that you should have done. Is that how you're seeing it? Is there overlap to so-called negative legacy, to this asset scope of that is, this is a scope for the impairment loss of¥250 billion? Please let me know your thoughts. In the additional press release, it says additional loss of ¥23 billion. I'm not sure whether it's something that will come in the future or of the past. Let me first answer, Nakagawa to take the first part of the question and for the future from Minai. This assessment for the impairment loss this time, it has nothing to do again with an appropriate accounting practice. We have went back to the past because actual figures are being replaced. When looking at the future with the new figures, we now have revisited the forecast. Of course, we are validating the necessary impa irment loss every year, but our financial statement was affixed, revised this time, so we have to go back in the past and to check again. Regarding when we would impair each asset, that is yet to be decided. What we have discovered under the scope of investigation period, for example, the asset at the end of June end in 2025, how much of that we should book as impairment loss? That amount is¥250 billion. I hope my answer is clear. This is because you need to revise the Yuho of the past. In addition to ¥139.7 billion, you would need to record impairment loss of ¥250 billion. There will be more of that? It really depends. We first went back to the first fiscal year and looked at the impairment loss booking was appropriate or not. We keep going back all the way to the five years in the past. This is based on our simulations. Regarding additional tariff impact of ¥23 billion, this is still yet to be seen. I mean, we are still investigating. This has to do with FIR misconduct, having to pay for additional tariff. We are investigating to see whether similar practice was taken by other overseas subsidiary entities. With those errors found, we would need to pay additional tariff, and that amount is ¥23 billion. That we will be paying in future. To whom is against what is regarding past five years of import, we were paying a wrong amount of tariff. This is ¥23 billion for the wrong filing of tariff duties of the past. When we investigate, investigation completed, when we know for which year we should have paid this amount of tariff, we would match in impairment loss, we have a provision for that to be ready for that payment. Okay. My assumption is that there will be a major negative hit to the OP levels, right? As you can see on our earnings call, we, there has been some sudden impairment losses. Based on that, we would like to mitigate those volatility, we need to have a regular booking on impairment losses when needed. That's why we are doing checks after checks, and we're doing that as soon as possible. When we reflect the revision necessary for the past financial statement, this is a probability amount that we need to book as a loss. And of course, we will need to get the external auditing regarding this cost. Are there still more negative legacy remaining after this ¥250 billion loss that you're going to book? As our President Mitsuya Kishida mentioned earlier, our current negative legacy will be solved all the way to cover to June 2025. That's what the final report will clarify. At that time, we will know how much is left. That's something that we need to give it another try. What I mean is, as Kishida mentioned, how much risk asset we have right now, we'll take the stock count. We'll have involved the expert too with our internal accounting team, our auditors and. Our auditing and supervisory committees included, will disclose that negative asset and what to do about it. Of course, we are doing business, so when there's risk, in order to minimize that risk, what kind of countermeasure we can implement, that's the first thing that we'll think about. Once we are determined that we need to have a right accounting practice or process and to book it as a loss, we will. Amount is not something that we know now. If I say one word, we can mitigate the risk for the future quite precipitously in our recognition. If I may, today, because there are so many participants, therefore please limit yourself only to two questions. This from journalist. From your viewpoint, the person from second from the left and third from the front wall. Ashihara from Kyoto Newspaper. Thank you very much for your presentation. Regarding the third-party committee presentation, I found the key that is for the reborn Nidec. One of them is not going away from Mr. Nagamori's influence at a glance. This to be very difficult, and it cannot be achieved overnight. However, the way Mr. Nagamori should be put behind, how are you going to do that? Sorry for talking about a very severe point. No, not at all. This is a very important point. When we established the rehabilitations committee, and as we have mentioned in the previous meetings, we have to be Nidec. We have to be who we are based on the corporate cultures and philosophy, and we have to respect them. Some of them should be handed over to the future in our recognition. Because for us, we needed to add more. That is, we have to do anything in the right manner all the time. Therefore, based on this concept, the recommendations, including the improvement document submitted by the rehabilitation committee or the Reform Committee, we'd like to apply this concept or split. Because we are going to do anything right, the processes, including the way we have done the business in the past, should be abandoned. However, we have to do it courageously, because doing it right, this should be the basis for the corporate culture to be at the center of whatever we are going to do. I'd like to share this split. Mr. Iminagi, do you have anything to add? No, no, not at all. I totally agree with you. First of all, doing right. This should be applied to all of the activities in daily businesses. In order to practice this split, we can consider what we have to do in what way. As you heard in our improvement plan that we have shared the other day, we will implement this improvement plan. But we have to walk the talk. Meaning that all of the employees have to do their work in the right manner, and we have to check the actual status. And then across the globe, all of the colleagues in the Nidec groups can follow this by getting aligned on this concept. And this is what we have to do. Thank you very much. In the interest of time, I can raise just one question. Right now, even now, Mr. Nagamori is one of the major shareholders. Therefore, do you see how you can eliminate the negative influence of Mr. Nagamori, and what kind of countermeasures you are going to take, if any? Thank you very much for your question. As you see in the report from the third-party investigation committee report. Yes, Mr. Nagamori is still one of the major stakeholders, and this may not change. However, for us, we have many stakeholders, including shareholders. Therefore, all in all, we have to consider how we can operate our businesses soundly. This is the most important thing for the company, we should not focus only on the part of the stakeholders, because the partial stakeholders should not distort our operations and the businesses. Let alone the smooth operation of the businesses, that is the best for us to establish process and schemes, we take this as a mission for us. Thank you very much. Now the analyst sits over there. I saw your hands up. Thank you very much. I'm Sato from Morgan Stanley. I really appreciate your explanation. On the 14th of November, when the financial statements were announced, there were some discrepancies between those numbers and this time numbers. First of all, ¥87.7 billion impairment loss was registered in the first quarter. In addition to that, ¥139.7 billion and ¥260 billion losses happen. Therefore, how they have impact onto the net assets at the end of the first quarter of this fiscal year. That is ¥1.167 billion. We have to subtract ¥139.7 billion. This calculation is right? This is the first question. The second question is related to the change in the cash flow. Are there any changes in cash flow? I understood that there's no change in cash flow, please confirm these two questions. Yes, we have announced the financial statements on the 14th of November due to the impairment loss for the first quarter. However, this is a result of the third party... However, this number may change depending on the result of the third-party committee, and we said it in the disclaimer. However, after the tax, this now ¥877 billion have the impact on to the net asset, and this has been already incorporated. Therefore, regarding the next step, this time of ¥139.7 billion will be offset internally. In addition to that, ¥250 billion, although the timing is not clear, but this will have the impact onto the equity at the future date. How about cash flow? Both of them don't have any impact onto the cash flow. Thank you very much. Now, the second point. I'd like to know when the next the announcement of the financial statements will come. You said it's TBD, however, towards the next announcement, President Kishida, are you going to issue the internal governance report as the demonstration that your internal governance is sound and good? Thank you very much for your question. We'd like to share our financial statements as soon as possible in the correct manner for each quarter. We'd like to share the update for each quarter. We'd like to return to such a they should be status as soon as possible. As of today, as you heard in the third-party committee meeting, their final report timing is not finalized yet. We'd like to make sure that on everything could make it in time to ensure the no delay of the reports toward the shareholders' meeting slated for June. We'd like to make all-out effort to realize it. Regarding the internal governance report. You will make the description that there's no problem in the internal governance in that report. We have not found out that much. What we would like to pursue regarding to such targets, we'd like to hold the meeting to share the financial statements or financial results for the FY 2025 as soon as possible, and we'd like to make an all-out effort to realize it. Thank you very much. The next question, we'd like to take the gentleman in the blue tie. I'm Igami from The Asahi Shimbun. I'd like to ask about governance. The report of the third-party committee says that the diversity is not sufficient, including the outside officers. There are many people who had experiences as the bureaucrats. At the same time, there are not so many people who had an expertise in accounting and management, and how this structure is accepted, or why this generational structure was accepted, although there is no enough diversity, especially the former bureaucrats. For example, to like to establish better interpersonal relationships by hiring the former bureaucrats. Are there any influences about Mr. Nagamori? Thank you very much for your question. We'd like to reform our organizational structure from the very bottom, and we'd like to reflect it in our personnel change. You see it in the personnel change in the executives and officials, we have to respect the expertise, especially in the business management and accounting. They are essential. Therefore, as soon as possible, we'd like to proceed our reform to reflect this concept. Why we have had such organizational structure for this matter, from my perspective, I myself would like to reform this structure. That's what I say. How about the intention of Dr. Nagamori? Was his view reflected on this? Needless to say, Mr. Nagamori has served as the representative of Nidec. In addition to that, he has assumed all of the responsibilities for the management, and so is for the structures and members of the executives and officials. The reason why there are so many former bureaucrats and how Mr. Nagamori's intention was reflected, for example, two person from MOFA, another two person from MOF, why those former bureaucrats were hired? Are there any criteria to hire former bureaucrats? Regarding the selection of the outside officers, there's a so-called knowledge matrix, capability list put in place, therefore, we refer this to determine the members of the executives, we have made it open. Regarding the responsibilities of the outside officers, what do you think about that? We see the handling of the executives. However, there are different treatments for officers and executives, I know there are background reasons. Regarding the outside officials, what would you do? Including outside officials, responsibilities of the executives, we need to consider them even for the future. As you saw in today's presentation, you saw the change in the executive structure, and therefore, as you said already, in the future, we'd like to assign a person who has good experiences in the business management as well as the expertise in the accounting. We'd like to reinforce our top management structure, and this way, as you saw in the previous presentation, we'd like to establish the Responsibility Investigation Committee in the very near future, where we'd like to investigate how the person involved has taken his or her responsibilities legally. We'd like to investigate it. And based on that result, we'd like to take the robust actions. The target is not the former and current executives. All of the top executives should be covered by this investigation. In the future, we'd like to take these opportunities to explain the accountability and the legal responsibility objectively. In order to do that, we'd like to conduct good investigations. Sorry for being so persistent about it. However, regarding the existing executive with the, because of the commitment to the accounting accounts, depending on that, there are different treatments. For example, self-resignation as well as the suspension of the duty. These two applied to the overseas executives. Because of the local requirements, local legal requirements, we have to take these actions, and this is the reason. Those who resign him or herself, there were a severe commitment into the accounting misconduct. That's why he resigned on his own. I didn't understand what you'd like to know exactly. Regarding the suspension of the duty as well as the self-resignation, I believe that the influences are the same. That is our commission. As he mentioned, regarding the suspension of the duty, we have to comply with the local applicable laws and regulations. That's why we didn't say that in a self-resignation, because this is not in compliance with the local legal requirements. The next turn is for analysts. I'm Akizuki from Securities and Finance. I have two questions. First of all, this amount of ¥139.7 billion, you said there was no breakdown that you could share this time. On the other hand, the target of impairment loss is mainly from the automotive businesses, and therefore, this amount of ¥139.7 billion, in order to get a clearer image, if you can share the segments as well as the target businesses, if you can share those information, that really helpful. The other question is, in addition to the question one, this amount of ¥139.7 billion of assets, or the assets will be reduced because of the impairment loss. In addition to that additional ¥250 billion reduction happens, and then, I don't know the level of the profit. However, ROIC must be really high. Operating profit is right, and then, based on this prerequisite, ROIC should be very high because usually, especially for the manufacturing companies, your ROIC must be really higher than usual. Comparatively speaking, probably your impairment loss is too aggressive. That is the outside view. This is accounting treatment, and therefore, it can be arranged. I believe there are some people who are leaving the office. As a negative aspect, I believe there will be a future possibility for such assets to be calculated. How are you going to secure profitability in the future? Nakagawa, please go ahead. First of all, in terms of scale of profitability and in which area of businesses, please go to page 163 of the document. You can see the amounts in individual businesses. Small business, modern business, ¥1.3 billion. Attraction and AMEC Organic, ¥5.74 billion. ¥8.6 billion. AC, ¥15 point some of several billion yen. Group companies is ¥39.3 billion. That's the breakdown of ¥139.7 billion. You can see how much additional amount will be made based on this calculation. When it comes to ¥250 billion, which is the second amount, it's approximately ¥250 billion to be subject to financial impairment. We need to recalculate and reexamine the exact situation in detail to understand the exact amount of this, assets to be subject to the financial impairment. We need to go back in the past to understand a proper way of doing businesses, and we need to discuss with our auditors to come to conclusion. I'm not sure about this correctness of this term, aggressive or not aggressive, but these are what we are doing at. As has been explained by Mr. Kishida a few minutes ago, this is basically in a primarily in connection with the automotive business. If there is any financial impairment, and there was significant reduction in the future amount of such impairment, a goodwill is also included, if I may add. Thank you very much. There is one more question from me. You, I believe, announced the midterm business plan, the plan was unrealistic according to the comment by the third-party committee. You may not want to hear this, did you announce the midterm business plan realizing the plan itself will be unrealistic from the outsiders, those will be looked very aggressive. As an analyst, I thought part of the plan was rather unrealistic. As you announced the midterm business plan, objectively speaking, did you think that the plan was unrealistic, or did you accept the plan as such were you willing to achieve the target at that time? That was a very deep question. Thank you very much for that. Far in the third-party committee's report, there is a reference to that from a different perspective. With respect to the midterm report we submitted, Mr. Nagamori said that it's a very conservative plan. Basically direction, we should have a slightly stretched target. Back then, we thought that if we stretch ourselves a little bit, we will be able to achieve the target. That's what I thought back then. I believe you understood some points we have made in the past. In addition to active investments, infrastructure in IS, for example, to connect information with other piece of information. Looking back now, I believe that. We have to cover more than 300 business bases, as has been explained by third-party committee. We need to build infrastructure to connect all of these bases. That was actually the basis of our midterm business plan. We believe that's part of our target at this moment as well. When it comes to figures, given the current circumstances, we need to re-examine. We'll be able to provide you with the realistic figures in the future. That is all from me. Thank you. Next person, someone from the mass media. From your right, the person up in the front, male person here. I'm Murai of Diamond Publishing. Thank you very much for your explanation. I'd like to ask you about Mr. Nagamori. He resigned the office from the chairperson emeritus. How is he now? When he became chairperson emeritus, he was a non-full-time executive. What is the difference between then and now? I believe the chairperson's office now is now gone. As chairperson emeritus, he was receiving a salary, but not anymore, I believe. What are we... What are the major differences between then and now about Mr. Nagamori? What type of thoughts, feelings do you have now about this third-party committee's report? You have worked with Mr. Nagamori. You became president after being promoted by Mr. Nagamori after giving a positive e-evaluation by him. Now, Mr. Nagamori is being accused, criticized. You were taught by Mr. Nagamori in one way, I believe. What thoughts do you have about Mr. Nagamori? Thank you very much for your question. To Murai was superficial differences, physical differences between then and now about Mr. Nagamori is no longer a chairperson emeritus. He's no longer receiving money or salary from the company, and his former office, based on his will, is now being reorganized. It will be removed from the company to somewhere outside the company, in my understanding. That's the major physical changes between then and now about Mr. Nagamori. It's been four years since I joined Nidec. In the first year, I was overseas. I became working closely to him and having conversation with him only after I became president two years ago. In fact, he taught me a lot. In this company, it was totally different from my previous occupation. I learned a lot. I learned a lot about this company's corporate culture. I need to understand what to master. I received several important lessons from him. Now we have received this report from third-party committee, so it's a very candid, straightforward report about him. I honestly was surprised. My own mission, as I've said at the beginning of my presentation, is to unify very strong technological capabilities with sincerity of Nidec employees. We need to make this company more global and better company. I would like to dedicate myself for that purpose. That's what I have thought so far, and I'm going to have this thought more strong, strongly than before. Mr. Nagamori's, his office is gone, as you said. Going forward, in the past, Mr. Nagamori, as the founder of the company, he would like to visit the company, you know, sometimes when the timing is right, et cetera, as the founder of the company. Is there going to be such interactions between you and Mr. Nagamori going forward? It has been said there is no plan like that. When did you see Mr. Nagamori last time? When he quit, Chairman Emeritus, the morning of December the 19th, I was contacted by him. That was the end. That was the last time that I communicated with him. Are you going to meet with him? Not in my schedule is there such a plan to meet with him. Thank you. Someone in the audience? Don't. Someone in the front of mass media. From your left, second row. The fifth row. The lady over there. I'm Nagayo, TV Tokyo. I would like to give you two questions, Mr. Kishida. First of all, about the contents of the this midterm business report. What are you going to review, based on the third-party committee's report? There are quite a few points made by the Third-Party Committee's report, the departure from Mr. Nagamori's business method among others. In addition to all the points you have made already, what are the additional points you would like to make as changes or improvement? Thank you very much. First of all, in the Third-Party Committee's report, we have this improvement plan. I believe the direction of the improvement plan has been endorsed. It's a very. That's something that is recognized very strongly. In addition to that, what we need to achieve is a shift from Mr. Nagamori's company to a different and a better company. We need to establish a process for the shift. That's the important mission, theme for us. It says Mr. Nagamori in the third-party committee's report about, we as a company, we need to improve our corporate culture. We need to improve our corporate systems. That's our major and largest mission for us. Some of those actions may take time, but we need to do everything correctly. That's the center of our mission as we go forward. We'd like to brush up our improvement plan as we go forward. Do you have anything else to add, Maesan? Mr. President, it's absolutely right. In addition, if I may add something, from the third-party committee report, there's a strong mention about, particular emphasis on the supremacy and restraint. I believe that's quite important. Especially our auditors and outside auditors and all the internal auditing department personnel, they would need to strengthen the governance within our company and work together, integrate, and to strengthen the problem awareness mindset. When they need support, those outside resources, needs to be available. That kind of working environment needs to be better prepared. We do recognize as a company, we need to create a better place to work, for those who are in charge of auditing activities. I myself as deeply feeling that we need to rely more heavily on outside directors' opinion and also we need to seek expert as well. Outside directors bears legal responsibility as well, also in this third-party dialogue, including audit, we need to strengthen these quality of review mention that we passed to auditing entities. That needs to be a part of improvement idea. Thank you very much. Second question is Hirao-san mentioned in the third-party committee report that he has uncovered so many numbers of accounting mispractice, malpractice. Even under the significant pressure from Nagamori-san as the president for the entire company, this fraudulent accounting was a commonplace for the entire companies, it's become your entire corporate culture. I think that concept is already permeated within, ingrained in the companies. Is that something you can change? I'm taking this report from the third-party committee quite seriously, I understand that from a long time in the past that this kind of accounting practice, wrong accounting practice, were done at many different sites of our companies. As a company, we must develop measures to prevent this kind of practice from happening ever again. To respond to the capital market and all the partners and all the suppliers and all of our stakeholders, we need to respond to their needs sincerely and taking this report firmly to come up with solid improvement ideas and act accordingly. President Kishida, this fraudulent accounting has taken a root already in your organization. What do you think about that? Are you aware of that? Well, there are many new discoveries for me after receiving this report. As a president and a CEO, I was not fully grasping the scope of this kind of practice taking place within our organization. I regret that quite seriously, I need to look at this fact straight on so that I can implement the improvement measures and systemize it so that we would never repeat this kind of incidents happen again. Now I'd like to take questions from the floor. Hello, I'm Miyajima from Monthly FACTA. In the investigation report says what's the key for the improvement is outside directors, strengthening outside directors' governance. There are many outside directors they needed, and they didn't recognize there was such a significant pressure coming from the top of your organization. Regarding this significant amount of negative legacies, they weren't aware of that either. I think they were not doing their job. It's clearly, their dereliction of duty. I think you need to clarify the kind of penalties that you'd be requesting to the outside directors because they were not doing their job. I don't think otherwise you can start your revitalization process in a proper way. I think they need to file their resignation letters or, all these retirees from tax agencies and the Ministry of Finance, all those people, they have created some group of superpowers. That's what the report says. One more thing. The presidents were, back then, before you, were reporting to the chairperson, but they're being ignored. At that time, usually president should consult with outside directors, but they weren't doing that. That's a wrong governance. Governance is not working. This is really equals to a breach of the outside director's duty. It's they're not doing breach of a duty of care. I would like to clarify about the kind of penalties that you need to impose to those people who are not doing their jobs. Usually, when a company faces serious incidents like this, usually directors goes to outside director for consulting, but didn't happen. Thank you very much for you to point out this very important point. It's very serious. I myself do recognize that I need to consult and leverage our experts, outside directors' opinions. As this report mentions, the quality of information that our companies were providing to the outside directors were not all that great. Didn't raise the alert concerning mindsets amongst outside directors. I myself did not act enough to seek support from outside directors. All the directors included, including outside and full-time, including legal responsibilities, we would investigate what kind of penalties needs to be imposed once we establish the Responsibility Investigation Committee, including legal responsibility too. Thank you. Thank you very much. I'm Furukawa from Bloomberg. I have two questions to President Kishida. Before you start this press release, this Securities Investigation Surveillance Commission announced that there's been a possible infringement. It may even violate the Financial Instruments and Exchange Act. Third-party investigation committee, Hiroshi mentioned that there is a misrepresentation in the statements in the Yuho as well. Is that your understanding as well? Regarding the first point of the questions, I have no ideas about us infringing this Financial Instruments and Exchange Act. I will look up this report and to confirm what is the situation, what's the claim. Second point regarding Yuho's security reports. Are we going to go back to the past report and make the revision? As Committee Chair Hirao mentioned, I do recognize that when the Yuho needs to be revised, we will. We need to. After receiving this time's investigation report, once we know the amount and the timing of the revision necessary, we would like to conduct a change. You think that the current misconduct would require changes to the Yuho security report? If necessary, we will. Thank you. The second question, regarding these currently implementing various reform because you are determined to maintain being listed. I would like to ask, Mr. President, do you think that being a listed company is essential? If so, why? Thank you for your questions. I myself and for the company today, for October 20th's report that we need to file to the authorities, is we are working to get delisted from the security, our stock as a Security on Special Alert. There are certain choices of going private too, and I think some companies who are in a similar troubles did consider such measures too. At the moment, we are designated as a Security on Special Alert, our first effort is to be delisted, dedesignated as a Security on Special Alert. I'm sorry. My whole question is the reason for maintaining the listing in the stock exchange. What is the real reason? We maintain large extensive fundraising capabilities and also resulting in a broader business canvas, I'll say. If you have anything else to add, please. I'm okay. Thank you. You are comprehensive. Hello, I'm Sei from Asahi Newspapers. I would like to ask questions regard to confirm. Chairperson Kobe and four others are resigning on the press release, but resigning from the position but will still have a position in the company. They all resign from the company. They still do have some roles in the subsidiaries. Including those roles as subsidiary, they would exit from our group. They don't have any seats in your company as of today. Correct. Thank you. My next question is regarding the legal responsibility of your directors. To pursue that, you will establish the Responsibility Investigation Committee. You said swiftly. By when you are going to launch that, and what kind of study this Responsibility Investigation Committee will study? What will be the scope? Would Nagamori-san be a part of the investigation as well? Let me give it a first try in answering it. Please get provide additional information. Now that we are receiving this external party, third party's committee report, Existing and the past director executive officers. We will study the legal responsibility of those management levels, including the opinions from outside experts, with objective viewpoint. We are already selecting the nominees, people's makeup, for this investigation committee. Responsibility Investigation Committee. As long as we know more, we will share it with you. Are you going to possibly file for possible damages before possibly face a claim for something that is driven by shareholders? Class lawsuit. Thank you. We are considering various options. One more questions. In this report, there was comments about President Kishida regarding the settlement of negative liabilities, process of negative liabilities. In 2024, Kishida-san mentioned to Nagamori-san about the need to process negative legacies many times, but Nagamori-san said, "No." What does that mean? What really happened, Kishida-san? Would you please explain with your own words? Thank you very much for your question. What is negative legacy? That's something that we explained already. It's not that the entire negative legacy equals all the misconduct in accounting practice. I myself, since I joined this company, regarding the businesses that I was leading, had a certain structural reform. At that time, I didn't know there were over 300 subsidiaries. Back then, various businesses there, we had to consolidate some of the manufacturing plants. That need was definitely there as a business unit leader. Under this slogan of structural reform, I kept mentioning about the need of that many times to Mr. Nagamori. This time, the third party's committee report mentions is about the one of Nidec's business, about the automotive business regarding the processing of a structural reform outside our operating profit layers. It will be the extraordinary loss, if any. It won't be within the OP, above the OP line. It will be outside this, you know, OP target under this enormous pressure. A part of what should've been processed was not something that was executed within that given fiscal year. That's what I mentioned. Whether everything is a result of the accounting misconducts or not, it's not clear. As a result of all of these activities, there are legacy liabilities. You are aware of that as the person in charge of the businesses, and therefore, what kind of wording or phrases did you use to appeal for the necessity to disposal? Can you please explain the situation? Regarding the situation, including interviews and the forensics, this is part of the investigation, therefore actually seen, and now what kind of discussions went on, everything was captured in the report by the investigation committee, and therefore there's nothing I have to add or I can add. Sorry, please limit yourself only to two questions. All right. Thank you very much. The person in the front row here. I'm Takeuchi from NHK. Thank you very much for this opportunity. Including Mr. Kobe, there were four people who resigned the company. This time, regarding Mr. Kobe, based on the points identified by the third party committee, Mr. Kobe should be regarded that he was aware of the misconduct, accounting misconduct in the planned manner. That's why this treatment was given. However, including other executives and officials regarding this fraudulent accounting as well as the recognition of those misconducts, did they recognize all of them? Because now there are high involvement, and that's why these people had to resign the company. Thank you very much for your question. Regarding the report issued by the third-party committee, if you see the actual name, all of them are basically the executives and therefore non-executives such as the officers. I cannot explain the specific descriptions. However, as the executive side, we reviewed the contents of the report, and based on that, we made this decision, and we have shared that decision today. Thank you very much. The other point. Regarding President Kishida, you made the recommendations over and over again to Mr. Nagamori. Despite of those, the repetitious recommendations, all of your requests were turned down. How did you feel back then? After being turned down your requests, there was nothing conducted. Therefore, even though it's the kind of the objection opposition to Mr. Nagamori's intention, however, you had to proceed with the proceeding according to the report by the third-party investigation committee. What did you think? What do you think? Thank you very much for your question. Right now, I would deeply regret that, and I should go furthermore, because for four years after joining Nidec, I tried to normalize the asset quality of the company toward the future sound operation of the assets. I'd like to lay the foundation for the future growth. Every time, everything I tried to do was not executed. I had to go deeper to give the in-depth insights, probably, or I should have been able to do something more. This is very regrettable. In order to prevent such things from happening in the future, I'd like to make my resolution anew. Thank you very much. The person over there in pink shirt. I'm Takaoka from Nikkei xTECH. Regarding the selection of Mr. Nagamori, is to nurture the copy of Mr. Nagamori, and that is the process for promotion. That concept is represented by President Kishida sitting over there. Because there are many Nagamori, or the copied Nagamoris, mainly the executives and officials, and then, there are many people still remain in the company. Therefore, I wonder whether you can eliminate all of the misconduct, including fraud accounting. Now there is no more Mr. Nagamori. Still, Nidec can maintain a high profitability by growing furthermore, both at the top line and the bottom line. Thank you very much for your question. I take the situation quite seriously. Of course, now the company should be business concerned, and therefore can we eliminate anything totally to move on to the next step. It's impossible because there are something we have to inherit, especially in the manufacturing company, and therefore, we have to make the selection and concentration to determine what we have to take over. I believe we can achieve the high profitability. I myself would like to stick to that concept. I believe we can turn Nidec highly profitable company once again. You have to set a high target, otherwise you cannot expect growth. How you define the high target regarding the growth, if the target is high enough, can we achieve that high target? No way, because we are manufacturing company. We have to sophisticate our technologies through the discussions and dialogues with our customers. We can generate something new, totally new that has not yet existed in the world. We have to generate such noble products. In order to do that, we have to develop our technologies and human talents. I believe that Nidec can be the highly profitable company after rebirth. It's interesting. However, there are many impairment loss related to the automotive business, and I believe this is actually related to E-Axle. What is the actual situation of E-Axle right now? It's a rumor, however, you have stopped new development. I don't know whether it's fact or not. Right now, this E-Axle, as part of the automotive business, can you please explain that? Because we see so much development in the EV. Did you see the sales increase or the increase of the production units? There was no such announcement, I'd like to know the current status of the E-Axle. Thank you very much for your question. There are mainly two sites for the businesses of the E-Axle. One is at the joint venture or NPE. This is a joint venture with Stellantis, where the manufacturing and the business development were done for E-Axle. The other site is in the joint venture with Kaisha Kisha in China. We call this company GACC. Joint venture of GACC is the other manufacturing site for E-Axle. Regarding the production in China, as of today, Japanese company related to the joint venture of the government of a Chinese company. Right now production level has been stabilized, and therefore, based on this site in China, probably Japanese company or Indian company can be a partner to develop new products for our customers. You still work on new development, is that right? That's right. We don't discontinue the new product development. Thank you very much. The person in the third row over there. The second from the right. Yes. Thank you very much for raising your hand. I'm Tokuda from Toyo Keizai. Thank you very much. First of all, as you mentioned, there were five officials resigning the company. Because their influences, negative influences over the corporate culture will be huge, that's why company has determined to ask them to leave the company. Is that right? Yes. The people who resigned the company this time, it's a result of our managerial decision, because their influences are quite huge. Regarding the operation of the business, they have had high influence over the businesses and in order to change our operations in a new way, their resignation is essential, and that is the business management by considering many things comprehensively. Thank you very much. Next, I'd like to ask about the future generation, because pruning may happen. However, thanks to M&A, you have grown this much. However, when I refer the improvement plan, you said regrettably that the management of many M&As were poor and therefore, for the future, you have to be lean. Do you do anything to be a more lean organization, including BUs and the sites? Thank you very much for your question. I believe previous question is quite similar to yours. In our midterm plan, further, bigger scales M&A and then a further, growth should be there. Before that, we have to integrate and eliminate unnecessary manufacturing sites and the businesses to be more lean. In addition to that, we have to make a system investment, and then we can put together necessary information that should be the basis for the future growth. That is our intention. You can see that policy in the report. Even after receiving the investigation committee report, this policy will be maintained. When I look at the message of Mr. Nagamori as the Chairperson Emeritus, he will work on the human development as one of the dreams. As Nidec, he will still be involved in the human developments, or there's no involvement how Mr. Nagamori will be involved or not involved regarding the human development at Nidec. It's not their intention. He has the schools and the other educational organizations, and therefore, we assume that now he will focus on these institutions, not Nidec. Thank you very much. Any other questions? Yes. Person in the fifth row on this side. Thank you very much for raising your hands. I'm Nomura from TV Tokyo. Regarding the recognition or awareness of the accounting misconduct, President Kishida was described as he didn't recognize the misconduct, the accounting misconduct. How about Mr. Nakagawa, is that true? Suppose that you didn't recognize the accounting misconduct, how you should assume the responsibility as executive? First of all, I'd like to answer to your question. After that, Mr. Nakagawa will answer to this question. First of all, to me, I believe I have to assume the managerial responsibility. That's why, regarding the this time scandal, I'd like to give a much deeper thought to take actions, or I should have get involved deeper to take appropriate actions. Including this, regarding my own policy, I spontaneously or voluntarily return my remunerations 100%. Still, I'd like to get involved in the management of this company. Mr. Nakagawa, please. According the report. There has been the huge pressures imposed on to the all of the employees. I don't have any personal recognition of this accounting misconduct. I try to reduce the financial costs as main activities of the financial personnel, I was immune to that pressure. Thank you very much. It's my turn. I don't have a recognition of accounting misconduct. Regarding the pressure for the business performance, I'm aware that the pressure on to the better performance was very strong. Whether that related to the attitude of that or not, I wasn't aware of that pressure. You mentioned that there has been strong pressures across the board. To you, what kind of pressure you were exposed to, including how you felt at that time? Can you please share the specific wording and how you felt? I'm a member of administrative department, and therefore, I don't have a direct pressure regarding the performance. However, every year, I saw that now the all of the business units have to set up really high targets each year. That's how I felt. Thank you very much. I see many people still raising up their hands, but now I'd like to cover you row by row. First of all, the person in this row, please. Thank you very much. I'm Yamamoto from Nikkan Jidosha Shimbun. I'd like to ask two questions to Mr. Kishida. First of all, toward October. Sorry for asking qualitative questions, but are you sure that you can get away from the current status in October? Regarding the cultural change, it's really hard to capture it quantitatively, and therefore, how the organizational structure should be and how the corporate culture changes. It's not only the structure, but also you have to walk the talk. How do you take it? Just one question. Thank you very much for your very precious question. When it comes to the set date, October 28th, we will make sure to achieve our task by that date. There are quite a few hurdles go over towards that goal, but we need to be cooperate, working together with other people concerned as we go towards, and go towards that goal. We need to change our culture, corporate culture as a company. It will take time. I do realize that. First of all, in our improvement plan and towards the deadline of October 28th, for the next eight months, there are things need to do, and there are quite a few things for us to do in the next two to three years. We need to make such a roadmap. We need to share the roadmap firmly among those concerned. That's what's important in my opinion. We need to visualize the status. We would like to share information with everyone involved in this process. Thank you very much. Related to my previous speaker's question, you need to bring some masculinity. You need to make your organization stronger. As necessary, you borrow some capabilities, some help from the outside. Do you already have any specific plan for that? Thank you very much for your question. In that regard, we have gone through M&As, and we have constantly been growing as a company. That's the history of our company, Nidec. At least, during this time, we need to be firmly steadfast and committed to our belief to understand what we need to do. We need to introduce our new ROI system, based on that perspective as well. We need to review our management system, and we need to make sure to work on those various issues. Are you going to differentiate the core businesses from non-core businesses? Yes, exactly. As part of our midterm business plan, we have core businesses and non-core businesses. We have future hurdles to go over. We need to understand what's currently profitable as businesses. Beyond that, as a manufacturer, we need to understand, we need to anticipate the future. Towards our future goal, we will make firm steps going forward. Thank you. From your right, the person over there, the far right. Thank you. Thank you very much for your explanation. This is Naito of Citigroup Securities. I would like to give you two questions. First of all, with respect to AMEC business unit, what was the problem with the business unit? What would be your opinion about for improvement? According to the third-party committee's report and improvement plan, I believe the major problems lies with the AMEC business unit. We have been tracking AMEC business unit profitabilities. Do you think you have to downward make or downward revisions about AMEC's profitability? What would be the major reasons for the current struggles of this AMEC business unit? What was the reason for you to have to incur negative legacies? Can you provide us with your opinions? Thank you. With respect to AMEC, our automotive motor business, the scales of investment is huge compared with the other businesses. The financial impact is huge, is that, it tends to be regarded as issue generators, problem generators. They are in a very, currently very severe competitive situation. In the past, we have been trying to reform the business unit, AMEC business unit. We are continuingly making efforts to improve the business. As a motor business, we have automotive motors. You have to have high-quality motors, high-quality performance, level performance as well. Technologically, it's very difficult to make these automotive motors. We will continue to produce those motors together with the other motors that are difficult to make. That will be part of our product portfolio we need to reexamine. I believe the Project company have had some problems in the AMEC business unit, et cetera. It's not that the M&A has had problems within our Project companies. Within this, ¥250 billion goodwill is included. Goodwill as of M&A could become at zero in value. Not only our own business, but there are quite a few parties to businesses whose issues have to be solved. Thank you. There is one more question which is related to the previous speaker's question. With respect to cost, it's about. A strategic investment is very important, as I understand. In order to make yourself a very new rip on Nidec, are you going to make investment in human resources or infrastructure? What type of cost increases are you expecting to see occur in the future? In the end, we need to be able to disclose our midterm business plan. That will be the right time for us to answer your question in detail. My gut feeling as of today is that 1% infrastructure investment in human resources, for example. We have this more than 300 business entities. We need to consolidate them. We need to educate people to do the right thing when they work, as they work. We need to increase our investment in such infrastructure. That's what we need to discuss internally. Thank you very much. It makes a lot of sense. Thank you. The second person from the right. The fourth person, male. This is Iwao, TBS News Broadcasting Station. Thank you very much. There's a huge financial impact that will make a huge impact in your own company as a whole. As you try to rebuild Nidec, you may decide to shut down factories, you may lay off people. Would that be a possibility? Thank you very much for your question. Production facilities and the larger scale consolidations, we are not making any of that yet. In our day-to-day operations, we may decide. We will continue to work on consolidations and improvement of our businesses operations. With respect to business consolidations, portfolio reviewing will take place, we may realize a larger scale of a need for reforming portfolio. We will have no sanctuary as we go forward with our reform efforts. Thank you. The person from there in this row. The third person from the top. Thank you. Thank you very much. I'm Yamada with Toyo Keizai, a magazine. I have two questions for you. First of all, I would like to know what has been done in this secret audit report or investigations. Based on Mr. Nagamori's secret request, there was a person on a special missions. This part is very black in my opinion. Nothing is very clear. In other words, I believe there are some facts hidden here. As of now, as a company, what did you find, and what information do you have about this special mission? Special mission audits, I do not know anything about them. I do not know anything more than the reports report established by the Third-Party Committee. It may be difficult for you, but do you have any plan to investigate into these special audits as a company? With respect to the contents of special audit, I do not have any plan or thoughts about it. My second question is as follows: With respect to the negative legacies, according to your explanation rhetoric, you did not understand any misconducts. Of course, the third-party committee says not everything was a misconduct, but with respect to the negative legacies as a whole, there were quite a few issues and problems. Kishida-san, you Mr. Kishida, you yourself had some very strict request to Mr. Nagamori. Did you really not recognize the misconducts, but did you think that to some extent such misconducts will be okay? Did you have such a recognition or did you not have such a recognition at all? That's a very important point you, that you pointed out. In the third-party committee's report, I am referred to there as one of the individuals to be mentioned in the report. I need to make one step further. I should have made one step further to try to address those issues. That's something that I'm reflective of. In order to prevent a recurrence of such misconduct, we would like to build a new Nidec as a group-wide project. Thank you. There is one more question from me related to the first question. With respect to the corporate reform, corporate culture reform, we have people from Diamond Publishing and from us, Toyo Keizai publishing. Some of us have been prohibited from contacting you or visiting you. Now we are allowed to be here, and we are grateful to be part of this press conference. Are you going to try to. I believe Mr. Nagamori's personality was to refrain from communicating with such a highly critical mass media media outlets. I don't want to do that, Mr. Kishida. Can I ask your opinions about this? It's a very important opinion. Thank you very much. In this meeting as well, we like to have as many people as possible. We like to have many opinions from as many people as possible as we try to operate our businesses. That's my strong determination. Going forward, we like to have opinions from as many people as possible. Thank you very much. Ito from Nikkei Business. I would like to ask you about how you recognize the need for governance. In the third-party report, it says up to August 2025, your power was quite limited. The final decision-making, especially in the personal matters, were given to Mr. Nagamori. The president and CEO's authority were quite small. Did you ever question about the level of governance? Did you and any other management levels ever questions the all the powers concerted to Nagamori-san? I became a president in April 2024. In June 2024, we became a Representative Director and President and Executive Officer. Until the August 2025... Third-party report states that all the final decisions were made by Mr. Nagamori. That is true. From 2024 June onwards, I was on a role as Representative Director, President, and Executive Officer. I have no intention to indicate that the kind of responsibility, the tasks that are bestowed on me were anything small. I do believe that I was fulfilled my role as a CEO. In order for this company to truly revitalize itself, I would like to put my all in this effort once again. This is a question to Mr. President Kishida, as well as all the top management levels. Final decisions belongs to Mr. Nagamori. That was a common sense. How was it perceived by all? First year of becoming a president is really a transitional year in many ways. I do recognize there were issues in our company and actually starting to make change to our internal approval systems. That started around that time. Actually, the time that the responsibility was given to me was not until the 2025 August time. There's been a discussion that how to transition and pass this decision-making power from Nagamori-san to myself. It's been discussed for quite some time. Under the new management leaderships, how to manage and how to set the right decision-making authority. We need to establish operations and systems and processes based on these learning. Hello, I am Kishi from Major Market. Regarding getting delisted, that is an option for some companies too. If that's the case, I would think that the investment plan are activated. I wonder whether they are making unwise special proposals like that? You would like to maintain the position of a listed company, going forward, I wonder whether you are saying definitely no to going private or else? Upon the filing of the internal audit plan, structure confirmation documentations, we are aiming to be de-designated as the Security on Special Alert. That is our first priority. We have no intention of going private at this moment. Thank you. I'm Kato, I'm a free journalist. I have a question regarding audit. First one is in the third-party report. The fraudulent report, dishonest report information shared to the audit firms. CFO is now resigned. The report says that there were comments like many incidences like that, misinformation, misrepresentations were found from various different parties, it looks like it's a corporate culture. I wonder have three of you recognized the same. What do you feel? Finding, seeing the current accounting firm as a easy target to persuade. I have no sense like that against the PwC Kyoto. I echo the same opinion as the president. Okay, thank you very much. Another questions related to audit. You have switched from a company with audit and supervisory board to a company with a committee. 10 years ago, you have established audit and supervisory committee and they supposed to do a organization audit. Does that mean that the shifting to committee level was mistake for you? It would have been better to depend the audit's responsibility to a single person, highly independent board of directors, don't you think? I also need to improve my capability as an auditor, as a member of the audit and supervisory committee and taking on the lessons learned from the report of third party committees. We would like to carry out the various improvement measures to manage this business better. Hello. Tsushima from Diamond. I have a question to President Kishida. Regarding your responsibility as a business executive officer regarding business execution. You joined Nidec in 2020, then you became a VP or CEO of Europe of AMEC business. In this time's impairment scope, the biggest one is against the AMEC business. You can't be forgiven just by saying, "No, I didn't know." I think you were in charge of meeting the business target. I understand that the relationship with Mr. Nagamori deepened only after you stepped up as a president. Regarding your execution responsibilities, I wonder, what were the difference between those who resigned and you remaining as a president? I don't think it was something that some people were forcing everyone to come up with those numbers and some were bringing in. I don't think it's that simple. I joined the business actually in 2022. Ever since I joined this group, I've been proposing various structural reform and try to drive that reform myself too. The first business that I joined is Europe, Nidec. I was given a specific task to handle various claims. I've been continuing to do so until today. I would like to go 1 step further and to revisit some of the measures that I have implemented. I could have done a step deeper and been told to do it differently. That's something that I take quite seriously. I will continue to work toward the soundness of this company's assets management and make operations more efficient. Thank you. My second question related to the first one. From outside perspective like us, when trying to revitalize a new company, I think it would only make sense to bring in a new person to lead that organization. Mr. Kishida, some of my colleagues called you as a miniature Nagamori. You were appointed by Mr. Nagamori. I think you are considered as a person, undoubtedly who helped encourage Nagamori the way he was. I wonder, what kind of feeling do you have against those claim? I never saw myself as a miniature Nagamori or copies of Nagamori. My most important effort is to redesignate Nidec stock as currently under Security on Special Alert. That is the most important theme for our management. That's what I'm fully concentrated on achieving. In this report, there were quite a few hard comments against Mr. Nagamori, and it makes sense because he was the head of your organization. It also can be read as if Nagamori-san is the only one who's doing this wrongdoing. What about the responsibility of outside directors? Have a question by my colleagues. What about the executive management, including President Kishida, your business execution responsibilities or each business responsibilities heads? I wonder whether you are purposely directing all the responsibility concentrated to Nagamori. I understand your point of view, but I personally think that this report is not about that, only blaming Nagamori. Rather, for us, the business manager, it contains a lot of good ideas, suggestions, and improvement measures, advices. The starting point of the improper accounting practice started from Mr. Nagamori's. Regarding company structure, mechanism, process, and cultures, what kind of those things led to these incidents were mentioned clearly in this report. We will take this report as a serious lesson learned and try to work as one unit, the entire company together to turn this company around. Hello, I am Kurokawa from Sankei Newspaper. I don't mean to repeat my colleagues' questions, but regarding this Responsibility Investigation Committee's future activities and how Mr. Nagamori and how other people who led to improper accounting practice, this committee will investigate the legal responsibility. Once they were found guilty, is it true that there may be actions taken, such as filing a lawsuit seeking damages? Let me take that question. Thank you for your question. That is very much the task of Responsibility Investigation Committee, and we would. The scope is all the director and executive officer of present and the past, and including Nagamori. What to do with our finding is not yet decided. Thank you. One more question. This is a bit outside my specialty. I hope I'm not asking a question completely off the tangent. This press conference started at 8:00 P.M. It's already close to 10:00 P.M. Why didn't you decide to start this press conference earlier? It's quite a difficult time for even the media to cover. Why did you choose this late evening to hold this press conference? You have a point. I would like to thank you for gathering us this such a late time of the day. The timing of disclosing this committee's report and I wanted to, we wanted to have the press conference soon after that at this kind of official venues to make sure I address to all of your concerning point in the Q&A sessions. We wanted to piggyback one after the other, first from a third-party committee report, then our own press release. I apologize for having you attend to our press conference until very late evening. Thank you very much for your explanation and presentation. I am Takasago from Electronic Device Industry Newspaper. I have a question from a different angle. Your order taking manufacturing is on track according to your forecast and plan. Okay, business is proceeding as usual. Regarding CapEx plan for the future, I believe you are planning to spend ¥140 billion. Majority of that is for India. Currently, I think for your plan, you are trying to build six new plant in India. Out of that, I believe 4 plants are already in construction. This ¥140 billion of CapEx budget, is this something that you are progressing as planned, or perhaps you are postponing or suspending some of those CapEx plan? That's my first question, please. Thank you very much for a very important question about our business. Regarding the CapEx budget of $140 billion, because of the current circumstance, what is most important for us is secure our cash on hand. Right after Nidec stocks being designated as a Security on Special Alert, we have a strict scrutiny of every single investment. This year we will not be able to exercise our entire $140 billion on CapEx and budget. Within the India's CapEx, four plants plus two more. Those are AMEC business plants, for India market and also a compressor plant, for white goods. Those constructions or studies or land surveys are conducting as planned. Demand in the India market is progressing as we have forecasted, and we are carrying out the investment to India market as planned. You mentioned that, in order to secure the cash, you will spend less than ¥140 billion in CapEx. Of course, you haven't closed the year, so it's quite difficult perhaps for you to disclose the details. To what extent do you spend this CapEx? It's not that we have revised the plan for the entire budget for the CapEx. We haven't suspended any of the major CapEx project. We are trying to control the spend. We would prioritizing the spend as well. And, um- The other question is related to the automotive business, because if I recall correctly, in China, magnet of E-Axle will be launched in China in 2028. Before that, in 2027, 7-in-1 will be launched. There were such specific plans presented that the exhibitions and so on. For example, the magnet-free component in 2028. All of these automotive related plans will go on as planned or are there any changes in those plans? Let me explain the current status for the development. 7-in-1 has already been launched, meaning that it's already available on the market. The next item, magnet-free item, this has a really hard hurdle. That's why including our research institutes, all of the research activities has gone well. Thank you very much for your question. Thank you. The other point regarding the financial statements, when the next statement will be issued? According to your explanation regarding the quarter three, based on today's press release, that's all, and then we have to wait for the shareholders' meeting slated for June, and then I'll be able to see more information related to the financial statements. Is this understanding correct? Now, I'd like to ask Mr. Nakagawa to respond to that. Thank you very much for your question. Regarding the third quarter, it's estimate, not the finalized financial statements. Therefore, we'd like to share the revenue and the profit at the third quarter flash report. Therefore, please wait till the end of March because now we will close our books. Usually toward the announcement in June, we prepare for the official financial statements. We'd like to follow this timeline. Thank you very much. It's already passing 10:00 AM in the morning and therefore, we'd like to take this question as the last question for today's press release conference. On the right-hand side, the person in the front row, please. Thank you very much. I'm Higashi from Kyodo News. Those who resigned, including those people, how you take the legal responsibilities? Are they the criminal responsibilities or civil responsibility? If you don't mind, I, Iminagi, would like to respond to this question. Yes. We have to consider all the possibilities. Including criminal procedures, yes. The criminal cases should be considered. Next question is related to the impairment loss, because you mentioned that amount to be around ¥250 billion, is it possible that an impairment loss will be zero? Regarding ¥250 billion, this amount, if I strictly answer to this question, this is the amount subjected to the impairment loss. Therefore, yes, it can be zero. However, once again, as we explained, we needed to go through duly processes to finalize the exact amount for the impairment loss. Thank you very much. How about you, the person in the back? Thank you very much. I'm Koganezaki from Monthly FACTA Magazine. My question goes to President Kishida because I'd like to know the relationships between Nidec and the accounting firm. According to the report by the third-party investigation committee, the explanation shared with the accounting firm was different from the fact and inconvenient truth was not shared with the accounting firms, according to the report. This may be the problems on their side. On the other hand, regarding with the accounting misconduct count is more than 1,000 as found in this investigation. In addition to that amount is also huge. Therefore, I believe there must be the problems on the side of accounting firm because now they didn't do what they had to do as the accounting firm. I assume your accounting firm is PwC Kyoto. Actually, this PwC Kyoto was working for the KDDI, where the misconducts were identified. However, right now it's become PwC Kyoto, and that's why they can work for you as accounting firm. Now, I'd like to ask your evaluation or assessment of PwC Kyoto. In addition to that, this problem or the scale of the issue is so huge and therefore you may want to consider to change your accounting firm. If so, can you please share your plans? Thank you very much for your question. First of all, regarding the assessment of our accounting firm, we are not in the position to do that, and therefore, please refrain from making any comments for that. For us, all the time through accounting firm, we have to face the market because we have to disseminate the correct information over the time. This is a very basic point, that's why we have to go back to this, the starting point to review our positions and the way we work. In addition to that, whether or not we would like to change the accounting firm from PwC Kyoto, no intention of such. Thank you very much. Regarding with the report issued by the third-party investigation committee, it stated the very aggressive comments by Mr. Nagamori. For example, he said that everyone was not motivated at all, and I'd like all of them to resign the company. It's really out of the day. That's why the Mr. Nagamori's business style was criticized as the power harassment. Now, when you, Mr. Kishida, looked at the comments and the statements of Mr. Nagamori and his business style, do you think it's a power harassment? President Kishida, did you have such experiences regarding the harassment? Probably it may be regarded as the harassment when I look at his actions and behaviors and statements described in the report. They may be regarded as harassment. I saw some examples in the report. It's not the investigation for the harassments and therefore, please bear with me. How about you, yourself? Me, including myself, email correspondences described in the third-party committee reports, I understood that there were such correspondences via email. Thank you very much. The person wearing the tie over there. I'm Kanie from Yomiuri Newspapers. Let me make a follow-up question. In the improvement report issued, in generally, it's not done by only one person, but due to the corporate culture, these three z-book problems were caused. The most important person who has to have ultimate responsibility is Mr. Nagamori. President Kishida, when he was in Nidec, you may frequently see such behaviors and statements. Back then, did you say that Mr. Nagamori, "You have done too much," or the, "What you have done or said is out of the time." Did you make such comment to Mr. Nagamori? Thank you very much for your question. I myself said in the previous similar conferences, regardless of the cause of the pressure, how the person perceives those statements and behaviors, it's very important because no matter how strong the pressure would be, how the person should perceive it, because that person should be able to change it for the positive way. Whether we can do that or not, that is a very important basic point. Therefore, we'd like to incorporate it in our improvement plan. Then we can execute it. Actually, as you saw, whether I myself was exposed to the pressures, including harassments in daily businesses, I myself did not have such experiences. When I look at the history, long history of the company, I now recognize that another situations have happened, and I found it by reading the reports. Going away from Mr. Nagamori's influence regarding this point, internally and externally, there are organizations, institutions that has the name of Mr. Nagamori. For example, foundation would be totally irrelevant to the businesses. However, there are name included in the title of the organizations and institutions. Therefore, in this sense, you cannot eliminate the image of Mr. Nagamori. Of course, not you alone, Nidec alone cannot do anything. However, what to do with those names containing Mr. Nagamori, for example, Nagamori Gallery, Nagamori Institute, do you consider the change of the names of those institutions and organizations? I'd like to ask Mr. Iminagi to respond to that. Thank you very much for your question. Honestly, we have to consider them from now on. Doing right, that should be the corporate culture we have to pursue. Under this spirit, we need to identify what way we have to do, and including all of the relevant people in the company, we'd like to determine what to do for those organizations and institutions. Thank you very much. This will be the last question. The person in the back. I'm Matsuoka from TV Asahi. I'd like to ask a question to Mr. Kishida, because this time report said that Mr. Nagamori's engagement was so huge, although he has already resigned the company. Mr. Nagamori and then Mr. Komori are not here because of the company decision, I assume. Do you think that is the right decision as a company? How about you, Mr. Kishida? Thank you very much for your question. Actually, I had to reflect this. I said this in the similar occasions over and over again. Starting in the April of 2024, I have assumed the position of CEO and the presidency. What happens at Nidec, I have to explain it as the CEO representing the company. With regard to Mr. Nagamori, he's totally irrelevant to the company. Based on the result of the third-party investigation committee, what the company is going to do, that is the main objective for this press conference. That's why I have to stand up to explain it. What you said or what you recognize is correct. Thank you very much. Last question. Mr. Nagamori has resigned as the Chairperson Emeritus with a statement. This statement includes his dreams and hopes for the future. The scandal happened, and because of this big dreams and so on, these statements do not reflect the regret. Do you think that it would be risky and dangerous for the company, Nidec? Thank you very much for your point once again. As the Chairperson Emeritus, this is the last message from Mr. Nagamori, and that's how our company has perceived, and that's why we have disclosed his statement externally. That means that there's no modification, amendment. After receiving his message, we perceive that that is the last message from Mr. Nagamori in the capacity of the Chairperson Emeritus, and that's why we have shared that in a statement. Thank you very much. With this, we'd like to conclude today's press conference, despite of it's very late at night. Thank you very much for your participation and attention. Thank you very much.

Speaker 21: Hello, everyone. My name is Misaki, the assistant of the third-party committee. I would like to introduce to you our presenters today. Here are our presenters. Mr. Kaku Hirao, the Chairperson of the committee. Mr. Tomoki Inoue, a member of the committee. Mr. Makoto Shirai, another member of the committee. First of all, Mr. Hirao, the Chairperson, will provide you with the result of the investigation, followed by the question and answer session. Mr. Hirao, please start your presentation. Thank you. Hello, everyone. hello everyone My name is Misaki, the assistant of the third-party committee. my name is misaki the assistant of the third-party committee I would like to introduce to you our presenters today. i would like to introduce to you our presenters today Here are our presenters. here are our presenters Mr. Kaku Hirao, the Chairperson of the committee. mr kaku hirao the chairperson of the committee Mr. Tomoki Inoue, a member of the committee. mr tomoki inoue a member of the committee Mr. Makoto Shirai, another member of the committee. mr makoto shirai another member of the committee First of all, Mr. Hirao, the Chairperson, will provide you with the result of the investigation, followed by the question and answer session. first of all mr hirao the chairperson will provide you with the result of the investigation followed by the question and answer session Mr. Hirao, please start your presentation. mr hirao please start your presentation Thank you. thank you

Speaker 8: Can you hear me okay? This is Kaku Hirao, the Chairperson of the third-party committee established by the Nidec Corporation. Can you hear me okay? can you hear me okay This is Kaku Hirao, the Chairperson of the third-party committee established by the Nidec Corporation. this is kaku hirao the chairperson of the third-party committee established by the nidec corporation I'm the alternate law in charge of a foreign law joint enterprise at the Nishimura & Asahi Law Firm. Please take a look at the document, the outline of the investigation report. Please take a look at the document in front of you. This is a summary of our investigations. Based on that investigation, I would like to provide you with some verbal explanations as we go forward. Prior to launching the presentation, I would like to let you know that the investigation by our committee are still ongoing. Investigations so far have revealed various facts. We have analyzed various facts, and we have accumulated facts enough for us to be able to make proposals and recommendations. For a long time we have had these investigations ongoing. I'm the alternate law in charge of a foreign law joint enterprise at the Nishimura & Asahi Law Firm. i'm the alternate law in charge of a foreign law joint enterprise at the nishimura & asahi law firm Please take a look at the document, the outline of the investigation report. please take a look at the document the outline of the investigation report Please take a look at the document in front of you. please take a look at the document in front of you This is a summary of our investigations. this is a summary of our investigations Based on that investigation, I would like to provide you with some verbal explanations as we go forward. based on that investigation i would like to provide you with some verbal explanations as we go forward Prior to launching the presentation, I would like to let you know that the investigation by our committee are still ongoing. prior to launching the presentation i would like to let you know that the investigation by our committee are still ongoing Investigations so far have revealed various facts. investigations so far have revealed various facts We have analyzed various facts, and we have accumulated facts enough for us to be able to make proposals and recommendations. we have analyzed various facts and we have accumulated facts enough for us to be able to make proposals and recommendations For a long time we have had these investigations ongoing. for a long time we have had these investigations ongoing We have had root cause analysis. I believe this is the right timing for us to make the announcement of those findings. The purpose of this committee is as follows. This committee was launched to reveal all the facts relevant to the issues involving Nidec Corporation, and to make recommendations for recurrence prevention. This committee is not intended for finding someone responsible for any areas of business-related responsibilities. Please take a look at the document in front of you that I've mentioned. Please take a look at the document over there. Starting from September 3rd, 2015, that's the start of the period of our investigation range, time range. The investigations are ongoing, as I've said already. We have three of these members. We have had root cause analysis. we have had root cause analysis I believe this is the right timing for us to make the announcement of those findings. i believe this is the right timing for us to make the announcement of those findings The purpose of this committee is as follows. the purpose of this committee is as follows This committee was launched to reveal all the facts relevant to the issues involving Nidec Corporation, and to make recommendations for recurrence prevention. this committee was launched to reveal all the facts relevant to the issues involving nidec corporation and to make recommendations for recurrence prevention This committee is not intended for finding someone responsible for any areas of business-related responsibilities. this committee is not intended for finding someone responsible for any areas of business-related responsibilities Please take a look at the document in front of you that I've mentioned. please take a look at the document in front of you that i've mentioned Please take a look at the document over there. please take a look at the document over there Starting from September 3rd, 2015, that's the start of the period of our investigation range, time range. starting from september 3rd 2015 that's the start of the period of our investigation range time range The investigations are ongoing, as I've said already. the investigations are ongoing as i've said already We have three of these members. we have three of these members These members are all in charge of those investigations based on the guidelines established by the Japan Federation of Bar Associations. Based on those guidelines, we have launched our investigations. We examined all the relevant documents. We launched forensic investigations as well. We interviewed via a questionnaire, various managerial and executive employees. We established a hotline on various issues. We have covered 319 people, including former Nidec employees. 532 times we interviewed various individuals. Forensic investigations include former Nidec employees, 113 people in total. We have covered past fiscal years, 2020 through 2025's first fiscal quarter. When necessary, we expanded, we went further back in time. Now, I would like to provide you with an outline of Nidec Corporation as a company. These members are all in charge of those investigations based on the guidelines established by the Japan Federation of Bar Associations. these members are all in charge of those investigations based on the guidelines established by the japan federation of bar associations Based on those guidelines, we have launched our investigations. based on those guidelines we have launched our investigations We examined all the relevant documents. we examined all the relevant documents We launched forensic investigations as well. we launched forensic investigations as well We interviewed via a questionnaire, various managerial and executive employees. we interviewed via a questionnaire various managerial and executive employees We established a hotline on various issues. we established a hotline on various issues We have covered 319 people, including former Nidec employees. 532 times we interviewed various individuals. we have covered 319 people including former nidec employees 532 times we interviewed various individuals Forensic investigations include former Nidec employees, 113 people in total. forensic investigations include former nidec employees 113 people in total We have covered past fiscal years, 2020 through 2025's first fiscal quarter. we have covered past fiscal years 2020 through 2025's first fiscal quarter When necessary, we expanded, we went further back in time. when necessary we expanded we went further back in time Now, I would like to provide you with an outline of Nidec Corporation as a company. now i would like to provide you with an outline of nidec corporation as a company You may know, may not know all of them. Mr. Nagamori established this company back in 1973. It's a corporation, this company has expanded their businesses very, very rapidly. M&A was one of the driving factors of this company. Back in 1984, the fan motor business was purchased by Nidec. Since then, Nidec has been expanding itself and its businesses through M&A. The small, the precision motors and appliance, commercial, industrial, and motion energy, and various areas are now Nidec's business fields. Nidec started with hard disk drive motor business, which supported its rapid growth. Due to the changes in the market, Nidec has expanded its areas into automotive and appliance and industrial other motor-related areas. You may know, may not know all of them. you may know may not know all of them Mr. Nagamori established this company back in 1973. mr nagamori established this company back in 1973 It's a corporation, this company has expanded their businesses very, very rapidly. it's a corporation this company has expanded their businesses very very rapidly M&A was one of the driving factors of this company. m&a was one of the driving factors of this company Back in 1984, the fan motor business was purchased by Nidec. back in 1984 the fan motor business was purchased by nidec Since then, Nidec has been expanding itself and its businesses through M&A. since then nidec has been expanding itself and its businesses through m&a The small, the precision motors and appliance, commercial, industrial, and motion energy, and various areas are now Nidec's business fields. the small the precision motors and appliance commercial industrial and motion energy and various areas are now nidec's business fields Nidec started with hard disk drive motor business, which supported its rapid growth. nidec started with hard disk drive motor business which supported its rapid growth Due to the changes in the market, Nidec has expanded its areas into automotive and appliance and industrial other motor-related areas. due to the changes in the market nidec has expanded its areas into automotive and appliance and industrial other motor-related areas Nidec Corporation is not the only entity within the Nidec Group. 354 subsidiaries and affiliated companies exist within the Nidec Group. Business group system have been and were introduced in 2014 or so. We have SPMS, ASIM, MOEN business units, as well as machine learning and automation. These five different business entities are in existence as of today. In addition to these business units, there is another unit of business management called the Group Companies, 15 companies. There is one exception is that one company with the ad offices. All of these companies are managed by Nidec Corporation's Group Company Management Department. I'd like to give you some findings as a result of our investigations. Section one, findings, outline. Nidec Corporation is not the only entity within the Nidec Group. 354 subsidiaries and affiliated companies exist within the Nidec Group. nidec corporation is not the only entity within the nidec group 354 subsidiaries and affiliated companies exist within the nidec group Business group system have been and were introduced in 2014 or so. business group system have been and were introduced in 2014 or so We have SPMS, ASIM, MOEN business units, as well as machine learning and automation. we have spms asim moen business units as well as machine learning and automation These five different business entities are in existence as of today. these five different business entities are in existence as of today In addition to these business units, there is another unit of business management called the Group Companies, 15 companies. in addition to these business units there is another unit of business management called the group companies 15 companies There is one exception is that one company with the ad offices. there is one exception is that one company with the ad offices All of these companies are managed by Nidec Corporation's Group Company Management Department. all of these companies are managed by nidec corporation's group company management department I'd like to give you some findings as a result of our investigations. i'd like to give you some findings as a result of our investigations Section one, findings, outline. section one findings outline I'm not going to details as we have 250 pages or so long document. I refrain from printing all of these making copies. We didn't make all of these copies for all of you today. We have a large number of findings, as you can see in the document. The investigation are still ongoing. The numbers of inappropriate accounting practices were found in numbers of Nidec Group business bases. There is a variety of incident that there are, you know, such practices. Low profitability, low profit materials. Intentionally, the material loss was not really recorded despite its low future prospect. There was a case of avoidance of financial impairment. I'm not going to details as we have 250 pages or so long document. i'm not going to details as we have 250 pages or so long document I refrain from printing all of these making copies. i refrain from printing all of these making copies We didn't make all of these copies for all of you today. we didn't make all of these copies for all of you today We have a large number of findings, as you can see in the document. we have a large number of findings as you can see in the document The investigation are still ongoing. the investigation are still ongoing The numbers of inappropriate accounting practices were found in numbers of Nidec Group business bases. the numbers of inappropriate accounting practices were found in numbers of nidec group business bases There is a variety of incident that there are, you know, such practices. there is a variety of incident that there are you know such practices Low profitability, low profit materials. low profitability low profit materials Intentionally, the material loss was not really recorded despite its low future prospect. intentionally the material loss was not really recorded despite its low future prospect There was a case of avoidance of financial impairment. there was a case of avoidance of financial impairment Inappropriate personal expenses were recorded as fixed costs in order to postpone the recording of fixed assets or pick fixed costs, actually. There were some subsidiaries regarding the return of subsidiaries. There are some subsidiaries whose nature were falsified intentionally. Inappropriate recordings of the allowance for bad loans. These cases were just among various the inappropriate practices that we found. I have just picked up 12 of all of these cases. I would like to pick up 12 of these cases to explain them in detail in the document. In 2025 quarter first end, there is ¥139.7 billion is the amount of negative impact on the latest covered earnings of Nidec Corporation. Inappropriate personal expenses were recorded as fixed costs in order to postpone the recording of fixed assets or pick fixed costs, actually. inappropriate personal expenses were recorded as fixed costs in order to postpone the recording of fixed assets or pick fixed costs actually There were some subsidiaries regarding the return of subsidiaries. there were some subsidiaries regarding the return of subsidiaries There are some subsidiaries whose nature were falsified intentionally. there are some subsidiaries whose nature were falsified intentionally Inappropriate recordings of the allowance for bad loans. inappropriate recordings of the allowance for bad loans These cases were just among various the inappropriate practices that we found. these cases were just among various the inappropriate practices that we found I have just picked up 12 of all of these cases. i have just picked up 12 of all of these cases I would like to pick up 12 of these cases to explain them in detail in the document. i would like to pick up 12 of these cases to explain them in detail in the document In 2025 quarter first end, there is ¥ 139.7 billion is the amount of negative impact on the latest covered earnings of Nidec Corporation. in 2025 quarter first end there is ¥ 139.7 billion is the amount of negative impact on the latest covered earnings of nidec corporation There was excessive pressure on people to achieve company provided profit targets under the strong leadership by Mr. Nagamori, who for a long time and also has been in existence that it is a sin to be in a deficit. It was mandatory for each entity to achieve its own target. For a long time, Mr. Nagamori has made established these targets for individual subsidiaries on a top-down way. These the targets were based on a future expected growth. It was above the capability of some of these subsidiaries and other entities. To the CFO of the head office as well as other executives, Mr. Nagamori applied a strong pressure to achieve these targets from himself. When it comes to these pressures, these pressures were applied to these executives, organizations, and subsidiaries. This is just one example. There was excessive pressure on people to achieve company provided profit targets under the strong leadership by Mr. Nagamori, who for a long time and also has been in existence that it is a sin to be in a deficit. there was excessive pressure on people to achieve company provided profit targets under the strong leadership by mr nagamori who for a long time and also has been in existence that it is a sin to be in a deficit It was mandatory for each entity to achieve its own target. it was mandatory for each entity to achieve its own target For a long time, Mr. Nagamori has made established these targets for individual subsidiaries on a top-down way. for a long time mr nagamori has made established these targets for individual subsidiaries on a top-down way These the targets were based on a future expected growth. these the targets were based on a future expected growth It was above the capability of some of these subsidiaries and other entities. it was above the capability of some of these subsidiaries and other entities To the CFO of the head office as well as other executives, Mr. Nagamori applied a strong pressure to achieve these targets from himself. to the cfo of the head office as well as other executives mr nagamori applied a strong pressure to achieve these targets from himself When it comes to these pressures, these pressures were applied to these executives, organizations, and subsidiaries. when it comes to these pressures these pressures were applied to these executives organizations and subsidiaries This is just one example. this is just one example One of the examples we have understood is that if you cannot achieve the target, each and every day, Nidec MCJ executives held meetings each and every day to force or blame these managerial executives for not achieving the target. Such unreasonable instructions were given to these subsidiaries managerial and executive employees. Even after the end of fiscal term, if a certain organization fails to achieve its target, the instructions were given to achieve its target even after the end of a certain quarter. There was sometimes direct pressure applied from Mr. Nagamori directly to those executives. Such a strong pressure was applied from Mr. Nagamori to others. Fixed avoidance of in financial impairment cost was made into assets by these manipulations. One of the examples we have understood is that if you cannot achieve the target, each and every day, Nidec MCJ executives held meetings each and every day to force or blame these managerial executives for not achieving the target. one of the examples we have understood is that if you cannot achieve the target each and every day nidec mcj executives held meetings each and every day to force or blame these managerial executives for not achieving the target Such unreasonable instructions were given to these subsidiaries managerial and executive employees. such unreasonable instructions were given to these subsidiaries managerial and executive employees Even after the end of fiscal term, if a certain organization fails to achieve its target, the instructions were given to achieve its target even after the end of a certain quarter. There was sometimes direct pressure applied from Mr. Nagamori directly to those executives. even after the end of fiscal term if a certain organization fails to achieve its target the instructions were given to achieve its target even after the end of a certain quarter. there was sometimes direct pressure applied from mr nagamori directly to those executives Such a strong pressure was applied from Mr. Nagamori to others. such a strong pressure was applied from mr nagamori to others Fixed avoidance of in financial impairment cost was made into assets by these manipulations. fixed avoidance of in financial impairment cost was made into assets by these manipulations In some cases of some organizations, they tried to achieve their targets. When it comes to CFOs and other organizations, executives came up with a way and explained those method to financial the auditing firms for approval. Sometimes, people falsified facts, and sometimes people neglected giving explanation. Of course, asset calculation method as well as other methods, there is some range of accounting processes. Not all of these methods were incorrect, but our investigations found sometimes those processes were beyond the realm of proper processing, and that's the inappropriate accounting practices. In order to achieve the consolidated performance targets of the Nidec Group as a whole, Nidec Group CFO and other executives were under the pressure to achieve the company's target. In some cases of some organizations, they tried to achieve their targets. in some cases of some organizations they tried to achieve their targets When it comes to CFOs and other organizations, executives came up with a way and explained those method to financial the auditing firms for approval. when it comes to cfos and other organizations executives came up with a way and explained those method to financial the auditing firms for approval Sometimes, people falsified facts, and sometimes people neglected giving explanation. sometimes people falsified facts and sometimes people neglected giving explanation Of course, asset calculation method as well as other methods, there is some range of accounting processes. of course asset calculation method as well as other methods there is some range of accounting processes Not all of these methods were incorrect, but our investigations found sometimes those processes were beyond the realm of proper processing, and that's the inappropriate accounting practices. not all of these methods were incorrect but our investigations found sometimes those processes were beyond the realm of proper processing and that's the inappropriate accounting practices In order to achieve the consolidated performance targets of the Nidec Group as a whole, Nidec Group CFO and other executives were under the pressure to achieve the company's target. in order to achieve the consolidated performance targets of the nidec group as a whole nidec group cfo and other executives were under the pressure to achieve the company's target If they failed to achieve the target, they were reprimanded very severely by Mr. Nagamori. Now I'd like to mention negative legacy. I would like to explain that in detail here. There were some results, efforts made to eliminate it, eliminate such legacies. This was part of the reasons for this committee to have been established. In internal investigations prior to the establishment of this committee, there were quite a few issues in existence. There were some documents about the suspicious activities or conducts by Nidec executives. Sometimes assets were created as a result of stagnation, and those assets were called the negative legacy in Nidec's term. Nidec groups collected information about these negative legacies. If they failed to achieve the target, they were reprimanded very severely by Mr. Nagamori. if they failed to achieve the target they were reprimanded very severely by mr nagamori Now I'd like to mention negative legacy. now i'd like to mention negative legacy I would like to explain that in detail here. i would like to explain that in detail here There were some results, efforts made to eliminate it, eliminate such legacies. there were some results efforts made to eliminate it eliminate such legacies This was part of the reasons for this committee to have been established. this was part of the reasons for this committee to have been established In internal investigations prior to the establishment of this committee, there were quite a few issues in existence. in internal investigations prior to the establishment of this committee there were quite a few issues in existence There were some documents about the suspicious activities or conducts by Nidec executives. there were some documents about the suspicious activities or conducts by nidec executives Sometimes assets were created as a result of stagnation, and those assets were called the negative legacy in Nidec's term. sometimes assets were created as a result of stagnation and those assets were called the negative legacy in nidec's term Nidec groups collected information about these negative legacies. nidec groups collected information about these negative legacies The actions were launched to handle those negative assets or negative legacies. On a periodical basis, Mr. Nagamori and other executives would receive the information about those negative elements. In announcement, the announcement made on a structural reform instead of reporting the negative legacies. Self-funding was one of the terms used in Nidec Group. Self-funding was a term to cover the negative performance with something that you can use, and that's so-called self-funding. In a recording loss means that deterioration in your organization's performance. You can only do so much about taking such a method to handle or process such losses. While having those process, new losses will be created in some cases. The actions were launched to handle those negative assets or negative legacies. the actions were launched to handle those negative assets or negative legacies On a periodical basis, Mr. Nagamori and other executives would receive the information about those negative elements. on a periodical basis mr nagamori and other executives would receive the information about those negative elements In announcement, the announcement made on a structural reform instead of reporting the negative legacies. in announcement the announcement made on a structural reform instead of reporting the negative legacies Self-funding was one of the terms used in Nidec Group. self-funding was one of the terms used in nidec group Self-funding was a term to cover the negative performance with something that you can use, and that's so-called self-funding. self-funding was a term to cover the negative performance with something that you can use and that's so-called self-funding In a recording loss means that deterioration in your organization's performance. in a recording loss means that deterioration in your organization's performance You can only do so much about taking such a method to handle or process such losses. you can only do so much about taking such a method to handle or process such losses While having those process, new losses will be created in some cases. while having those process new losses will be created in some cases

Speaker 16: Under this situation, the internal audit department has completed the project to normalize the assets quality. In replace with that, the structural reform was launched in the first quarter of the FY22. These two initiatives are similar, therefore, I'd like to introduce what it is. In the first quarter of the FY22, under the leadership of the Nidec head office CFO, under the name of the structural reform, the process of the negative assets or negative legacy was started. In order to facilitate the candid reports from facilities and BUs for this initiative, the CFO believed that this should not be incorporated into the performance evaluation of the BUs and the subsidiaries, meaning that the self-funding was not severe enough, this was not regarded as self-funding. Under this situation, the internal audit department has completed the project to normalize the assets quality. under this situation the internal audit department has completed the project to normalize the assets quality In replace with that, the structural reform was launched in the first quarter of the FY22. in replace with that the structural reform was launched in the first quarter of the fy22 These two initiatives are similar, therefore, I'd like to introduce what it is. these two initiatives are similar therefore i'd like to introduce what it is In the first quarter of the FY22, under the leadership of the Nidec head office CFO, under the name of the structural reform, the process of the negative assets or negative legacy was started. in the first quarter of the fy22 under the leadership of the nidec head office cfo under the name of the structural reform the process of the negative assets or negative legacy was started In order to facilitate the candid reports from facilities and BUs for this initiative, the CFO believed that this should not be incorporated into the performance evaluation of the BUs and the subsidiaries, meaning that the self-funding was not severe enough, this was not regarded as self-funding. in order to facilitate the candid reports from facilities and bus for this initiative the cfo believed that this should not be incorporated into the performance evaluation of the bus and the subsidiaries meaning that the self-funding was not severe enough this was not regarded as self-funding In other words, this would be processed outside of the performance evaluation of the BUs and the subsidiaries. That is a scheme for this. This was proposed to Mr. Nagamori, and approval was given. As a result of that, around ¥160 billion of the self-report for the negative legacy was made. However, when the CFO got the approval from Mr. Nagamori, throughout the year for FY 2022, the policy not to go below ¥100 billion of operating profit was reported to Mr. Nagamori, and approval was given. In addition to that, Mr. Nagamori gave the instruction that a V-shaped recovery should be achieved in FY 2023, and then in total, around ¥160 billion of negative assets were reported. In other words, this would be processed outside of the performance evaluation of the BUs and the subsidiaries. in other words this would be processed outside of the performance evaluation of the bus and the subsidiaries That is a scheme for this. that is a scheme for this This was proposed to Mr. Nagamori, and approval was given. this was proposed to mr nagamori and approval was given As a result of that, around ¥ 160 billion of the self-report for the negative legacy was made. as a result of that around ¥ 160 billion of the self-report for the negative legacy was made However, when the CFO got the approval from Mr. Nagamori, throughout the year for FY 2022, the policy not to go below ¥ 100 billion of operating profit was reported to Mr. Nagamori, and approval was given. however when the cfo got the approval from mr nagamori throughout the year for fy 2022 the policy not to go below ¥ 100 billion of operating profit was reported to mr nagamori and approval was given In addition to that, Mr. Nagamori gave the instruction that a V-shaped recovery should be achieved in FY 2023, and then in total, around ¥ 160 billion of negative assets were reported. in addition to that mr nagamori gave the instruction that a v-shaped recovery should be achieved in fy 2023 and then in total around ¥ 160 billion of negative assets were reported At which, the assets that require the process highly and the necessary assets for the V-shaped recovery were prioritized. Other deals or other assets were put on hold to be covered in FY 2023 onward. This is called the planned process at each BU and subsidiary. This planned treatment or assessment should be done at each BU. Or at the subsidiaries that... Now, this is so-called, the self-funding, meaning that they have to achieve the performance forecast while they have to process the loss. This loss must be absorbed by the profit. As a result of that, ¥56.6 billion of negative legacy was processed in the fourth quarter of the FY 2022. At which, the assets that require the process highly and the necessary assets for the V-shaped recovery were prioritized. at which the assets that require the process highly and the necessary assets for the v-shaped recovery were prioritized Other deals or other assets were put on hold to be covered in FY 2023 onward. other deals or other assets were put on hold to be covered in fy 2023 onward This is called the planned process at each BU and subsidiary. this is called the planned process at each bu and subsidiary This planned treatment or assessment should be done at each BU. this planned treatment or assessment should be done at each bu Or at the subsidiaries that... or at the subsidiaries that Now, this is so-called, the self-funding, meaning that they have to achieve the performance forecast while they have to process the loss. now this is so-called the self-funding meaning that they have to achieve the performance forecast while they have to process the loss This loss must be absorbed by the profit. this loss must be absorbed by the profit As a result of that, ¥ 56.6 billion of negative legacy was processed in the fourth quarter of the FY 2022. as a result of that ¥ 56.6 billion of negative legacy was processed in the fourth quarter of the fy 2022 At the same time, prerequisite is not to go below ¥100 billion of operating profit throughout the year. The simple subtraction tells you that the negative legacies reported by BUs and subsidiaries, most of them are outside of the structural reform. Our committee found that when this structural reform was made, although there were made report made, however, the appropriate process was not conducted because of the self-funding. This is the situation for the fourth quarter of the FY 2022. I'd like to explain what happened after that. The negative legacy going through the planned process required the expenses. These expenses were covered by self-funding, and therefore actual implementation was not done. At the same time, prerequisite is not to go below ¥ 100 billion of operating profit throughout the year. at the same time prerequisite is not to go below ¥ 100 billion of operating profit throughout the year The simple subtraction tells you that the negative legacies reported by BUs and subsidiaries, most of them are outside of the structural reform. the simple subtraction tells you that the negative legacies reported by bus and subsidiaries most of them are outside of the structural reform Our committee found that when this structural reform was made, although there were made report made, however, the appropriate process was not conducted because of the self-funding. our committee found that when this structural reform was made although there were made report made however the appropriate process was not conducted because of the self-funding This is the situation for the fourth quarter of the FY 2022. this is the situation for the fourth quarter of the fy 2022 I'd like to explain what happened after that. i'd like to explain what happened after that The negative legacy going through the planned process required the expenses. the negative legacy going through the planned process required the expenses These expenses were covered by self-funding, and therefore actual implementation was not done. these expenses were covered by self-funding and therefore actual implementation was not done For example, in the fourth quarter of the FY 2023, because of the launch of new businesses, ¥59.8 billion was recorded as the expenses for the structural reform. In addition to that, the expenses necessary for the process of the negative legacy was not incorporated into the performance assessment of BUs and subsidiaries, meaning that this is irrelated to the self-funding. President Kishida explained the necessity for this initiative over and over again to Mr. Nagamori. However, Mr. Nagamori insisted that the operating profit target must be achieved, and therefore this request was turned down. Regarding the authority of the approval of Mr. Nagamori, as you found in the official version of the investigation report around page 44, up until August 2025. For example, in the fourth quarter of the FY 2023, because of the launch of new businesses, ¥ 59.8 billion was recorded as the expenses for the structural reform. for example in the fourth quarter of the fy 2023 because of the launch of new businesses ¥ 59.8 billion was recorded as the expenses for the structural reform In addition to that, the expenses necessary for the process of the negative legacy was not incorporated into the performance assessment of BUs and subsidiaries, meaning that this is irrelated to the self-funding. in addition to that the expenses necessary for the process of the negative legacy was not incorporated into the performance assessment of bus and subsidiaries meaning that this is irrelated to the self-funding President Kishida explained the necessity for this initiative over and over again to Mr. Nagamori. president kishida explained the necessity for this initiative over and over again to mr nagamori However, Mr. Nagamori insisted that the operating profit target must be achieved, and therefore this request was turned down. however mr nagamori insisted that the operating profit target must be achieved and therefore this request was turned down Regarding the authority of the approval of Mr. Nagamori, as you found in the official version of the investigation report around page 44, up until August 2025. regarding the authority of the approval of mr nagamori as you found in the official version of the investigation report around page 44 up until august 2025 Nagamori, including the personnel change, as well as the allocation of fixed assets, all of them have to get the approval by Mr. Nagamori. In this sense, former President Seki and now former President Mr. Yoshimoto, although they are called president, but they didn't have the authority as you imagined, because everything must get the approval from Mr. Nagamori. This request was turned down, therefore as a result of that, in the fourth quarter of FY 2024, the negative legacy must have been processed. However, there's no treatment made. That is the situation regarding this situation for the untreated or unprocessed negative legacy. Mr. Kishida has recognized it. That's all for the situation for the negative legacy. Furthermore, what happened furthermore at Nidec, I'd like to explain what kind of fraudulent happened before that. Nagamori, including the personnel change, as well as the allocation of fixed assets, all of them have to get the approval by Mr. Nagamori. nagamori including the personnel change as well as the allocation of fixed assets all of them have to get the approval by mr nagamori In this sense, former President Seki and now former President Mr. Yoshimoto, although they are called president, but they didn't have the authority as you imagined, because everything must get the approval from Mr. Nagamori. in this sense former president seki and now former president mr yoshimoto although they are called president but they didn't have the authority as you imagined because everything must get the approval from mr nagamori This request was turned down, therefore as a result of that, in the fourth quarter of FY 2024, the negative legacy must have been processed. this request was turned down therefore as a result of that in the fourth quarter of fy 2024 the negative legacy must have been processed However, there's no treatment made. however there's no treatment made That is the situation regarding this situation for the untreated or unprocessed negative legacy. that is the situation regarding this situation for the untreated or unprocessed negative legacy Mr. Kishida has recognized it. mr kishida has recognized it That's all for the situation for the negative legacy. that's all for the situation for the negative legacy Furthermore, what happened furthermore at Nidec, I'd like to explain what kind of fraudulent happened before that. furthermore what happened furthermore at nidec i'd like to explain what kind of fraudulent happened before that One of the characteristics for the company who got the fraudulent, in many cases, the fragile or the internal audit function was pointed out. This was not applied to Nidec. In the 1990s, Mr. Nagamori found the situations where subsidiaries committed accounting fraud. Therefore he felt the necessity to set up the dedicated functions. That's why Mr. Nagamori reinforced now the personnel by hiring the certified accountants externally, for example. At the same time, he established the department for the internal audit. This is really rare for other companies because Nidec has established the internal audit department dedicated to the audit activities. This internal audit department covered around 60 sites. In addition to that, throughout the whistleblowing system, if the suspicious case was reported, special investigation was implemented. This is so-called the official public initiative. One of the characteristics for the company who got the fraudulent, in many cases, the fragile or the internal audit function was pointed out. one of the characteristics for the company who got the fraudulent in many cases the fragile or the internal audit function was pointed out This was not applied to Nidec. this was not applied to nidec In the 1990s, Mr. Nagamori found the situations where subsidiaries committed accounting fraud. in the 1990s mr nagamori found the situations where subsidiaries committed accounting fraud Therefore he felt the necessity to set up the dedicated functions. therefore he felt the necessity to set up the dedicated functions That's why Mr. Nagamori reinforced now the personnel by hiring the certified accountants externally, for example. that's why mr nagamori reinforced now the personnel by hiring the certified accountants externally for example At the same time, he established the department for the internal audit. at the same time he established the department for the internal audit This is really rare for other companies because Nidec has established the internal audit department dedicated to the audit activities. this is really rare for other companies because nidec has established the internal audit department dedicated to the audit activities This internal audit department covered around 60 sites. this internal audit department covered around 60 sites In addition to that, throughout the whistleblowing system, if the suspicious case was reported, special investigation was implemented. in addition to that throughout the whistleblowing system if the suspicious case was reported special investigation was implemented This is so-called the official public initiative. this is so-called the official public initiative At the same time, Mr. Nagamori has found that there are some employees who are regarded as not having highly capable for the audit of functions, then he asked them to conduct audit activities mainly for the bribes and other accounting fraud. If the suspicious case was reported, special instructions were given by Nagamori, Mr. Nagamori, to conduct the focused investigation. This audit or investigations were conducted anonymously around in 2011 to June 2020. This anonymous audit was conducted. The contents of this anonymous audit was not reported to the internal audit department nor the accounting firm. This employee found any accounting fraud, he or she asked the correction immediately. At the same time, Mr. Nagamori has found that there are some employees who are regarded as not having highly capable for the audit of functions, then he asked them to conduct audit activities mainly for the bribes and other accounting fraud. at the same time mr nagamori has found that there are some employees who are regarded as not having highly capable for the audit of functions then he asked them to conduct audit activities mainly for the bribes and other accounting fraud If the suspicious case was reported, special instructions were given by Nagamori, Mr. Nagamori, to conduct the focused investigation. if the suspicious case was reported special instructions were given by nagamori mr nagamori to conduct the focused investigation This audit or investigations were conducted anonymously around in 2011 to June 2020. this audit or investigations were conducted anonymously around in 2011 to june 2020 This anonymous audit was conducted. this anonymous audit was conducted The contents of this anonymous audit was not reported to the internal audit department nor the accounting firm. the contents of this anonymous audit was not reported to the internal audit department nor the accounting firm This employee found any accounting fraud, he or she asked the correction immediately. this employee found any accounting fraud he or she asked the correction immediately If the amount is huge, instead of immediate correction, instruction was given to process those the accounting fraud more than one year to prevent the huge loss of the operating profit. This act itself should be regarded as accounting fraud because such a loss should be recognized as loss. Upon the report from the employee, Mr. Nagamori recognized that there are some cases where the immediate actions were not taken. He has accepted those cases such that the secret audit was ongoing. Apart from that, if the whistleblowing was made and then the official investigation was conducted within the Nidec Group, each year more than one accounting fraud was found, and each time the internal audit department has implemented special investigations, and there's no delay of the fiscal statement announcement. If the amount is huge, instead of immediate correction, instruction was given to process those the accounting fraud more than one year to prevent the huge loss of the operating profit. if the amount is huge instead of immediate correction instruction was given to process those the accounting fraud more than one year to prevent the huge loss of the operating profit This act itself should be regarded as accounting fraud because such a loss should be recognized as loss. this act itself should be regarded as accounting fraud because such a loss should be recognized as loss Upon the report from the employee, Mr. Nagamori recognized that there are some cases where the immediate actions were not taken. upon the report from the employee mr nagamori recognized that there are some cases where the immediate actions were not taken He has accepted those cases such that the secret audit was ongoing. he has accepted those cases such that the secret audit was ongoing Apart from that, if the whistleblowing was made and then the official investigation was conducted within the Nidec Group, each year more than one accounting fraud was found, and each time the internal audit department has implemented special investigations, and there's no delay of the fiscal statement announcement. apart from that if the whistleblowing was made and then the official investigation was conducted within the nidec group each year more than one accounting fraud was found and each time the internal audit department has implemented special investigations and there's no delay of the fiscal statement announcement All of these accounting fraudulent cases were not published at all. The former executive said in our interview that Mr. Nagamori believed that it's very important to announce the fiscal financial statements faster than any other companies, and it's impossible to be delayed in the schedule for the financial statement announcement. Therefore, they have to prioritize to make it in time as the most important time. At any rate, whenever acting fraud was captured, the internal audit department has taken function. In the second half of the FY 2018, the external law firm has conducted the investigation. All of these accounting fraudulent cases were not published at all. all of these accounting fraudulent cases were not published at all The former executive said in our interview that Mr. Nagamori believed that it's very important to announce the fiscal financial statements faster than any other companies, and it's impossible to be delayed in the schedule for the financial statement announcement. the former executive said in our interview that mr nagamori believed that it's very important to announce the fiscal financial statements faster than any other companies and it's impossible to be delayed in the schedule for the financial statement announcement Therefore, they have to prioritize to make it in time as the most important time. therefore they have to prioritize to make it in time as the most important time At any rate, whenever acting fraud was captured, the internal audit department has taken function. at any rate whenever acting fraud was captured the internal audit department has taken function In the second half of the FY 2018, the external law firm has conducted the investigation. in the second half of the fy 2018 the external law firm has conducted the investigation This period, the second half of the FY 2018, there was a report by the a party who were in charge of the audit for the United States sites, external audit investigations were made as a result of that. More than 1 accounting frauds were captured. In addition to that, as part of this investigation, forensic investigation was conducted, this forensic investigation has found that the similar accounting frauds were committed at many cases within Nidec Group. Emails and the documents have been shared with PwC Kyoto, it should be reviewed by the internal audit department. This relevant email correspondences and documents are related to the negative legacies related to the asset normalization project. This period, the second half of the FY 2018, there was a report by the a party who were in charge of the audit for the United States sites, external audit investigations were made as a result of that. this period the second half of the fy 2018 there was a report by the a party who were in charge of the audit for the united states sites external audit investigations were made as a result of that More than 1 accounting frauds were captured. more than 1 accounting frauds were captured In addition to that, as part of this investigation, forensic investigation was conducted, this forensic investigation has found that the similar accounting frauds were committed at many cases within Nidec Group. in addition to that as part of this investigation forensic investigation was conducted this forensic investigation has found that the similar accounting frauds were committed at many cases within nidec group Emails and the documents have been shared with PwC Kyoto, it should be reviewed by the internal audit department. emails and the documents have been shared with pwc kyoto it should be reviewed by the internal audit department This relevant email correspondences and documents are related to the negative legacies related to the asset normalization project. this relevant email correspondences and documents are related to the negative legacies related to the asset normalization project That's why CFO of the head office, as well as the accounting department head, had explained what happened for this project for the asset normalization to PWC Kyoto. If you refer the list of the negative legacy prepared by the internal audit department that was shared with PWC Kyoto, says that the total amount of the negative legacy as of the third quarter of the FY 2018, ¥6.3 billion. Quite a number of negative legacies were generated due to the intentional fraudulent actions. This forensic investigation found that the anonymous audit was conducted for a subsidiary, and this report was also shared with PWC Kyoto. As a result of this forensic investigation, emails and other documents were confirmed, and based on them, seven cases were illegal accounting process. That's why CFO of the head office, as well as the accounting department head, had explained what happened for this project for the asset normalization to PWC Kyoto. that's why cfo of the head office as well as the accounting department head had explained what happened for this project for the asset normalization to pwc kyoto If you refer the list of the negative legacy prepared by the internal audit department that was shared with PWC Kyoto, says that the total amount of the negative legacy as of the third quarter of the FY 2018, ¥ 6.3 billion. if you refer the list of the negative legacy prepared by the internal audit department that was shared with pwc kyoto says that the total amount of the negative legacy as of the third quarter of the fy 2018 ¥ 6.3 billion Quite a number of negative legacies were generated due to the intentional fraudulent actions. quite a number of negative legacies were generated due to the intentional fraudulent actions This forensic investigation found that the anonymous audit was conducted for a subsidiary, and this report was also shared with PWC Kyoto. this forensic investigation found that the anonymous audit was conducted for a subsidiary and this report was also shared with pwc kyoto As a result of this forensic investigation, emails and other documents were confirmed, and based on them, seven cases were illegal accounting process. as a result of this forensic investigation emails and other documents were confirmed and based on them seven cases were illegal accounting process The total amount was estimated as ¥1.66 billion. However, by the end of FY 18, corrective actions were taken, and therefore, the all the necessary actions were taken. As a result of that, the announcement of the fiscal financial statements were done on time. PwC Kyoto submitted that there's a report of the appropriateness of their financial statements. As I have mentioned, legacy, negative legacies include the cases where the intentional wrongdoings or the fraudulent acts were not denied. If you see the mark of the intentional in the draft of this list, we have not yet confirmed whether the actual intentional fraudulent act was committed or not. The total amount was estimated as ¥ 1.66 billion. the total amount was estimated as ¥ 1.66 billion However, by the end of FY 18, corrective actions were taken, and therefore, the all the necessary actions were taken. however by the end of fy 18 corrective actions were taken and therefore the all the necessary actions were taken As a result of that, the announcement of the fiscal financial statements were done on time. as a result of that the announcement of the fiscal financial statements were done on time PwC Kyoto submitted that there's a report of the appropriateness of their financial statements. pwc kyoto submitted that there's a report of the appropriateness of their financial statements As I have mentioned, legacy, negative legacies include the cases where the intentional wrongdoings or the fraudulent acts were not denied. as i have mentioned legacy negative legacies include the cases where the intentional wrongdoings or the fraudulent acts were not denied If you see the mark of the intentional in the draft of this list, we have not yet confirmed whether the actual intentional fraudulent act was committed or not. if you see the mark of the intentional in the draft of this list we have not yet confirmed whether the actual intentional fraudulent act was committed or not There's no confirmation on that. There was no explanation for the PWC Kyoto for the actual situation of that. This external, audit firmAs a result of this audit, firm, although the auditor opinion of the appropriateness was submitted, however, a series of accounting flaws were identified every time the investigation by the internal audit department was conducted. There's no confirmation on that. there's no confirmation on that There was no explanation for the PWC Kyoto for the actual situation of that. there was no explanation for the pwc kyoto for the actual situation of that This external, audit firm As a result of this audit, firm, although the auditor opinion of the appropriateness was submitted, however, a series of accounting flaws were identified every time the investigation by the internal audit department was conducted. this external audit firm as a result of this audit firm although the auditor opinion of the appropriateness was submitted however a series of accounting flaws were identified every time the investigation by the internal audit department was conducted

Speaker 7: There was a strong excessive pressure from the Nidec's head office. Mr. Nagamori's this style, but people refrain from trying to change the way Mr. Nagamori tries to force people to achieve the company's target. I'd like to give you an example here. This is about Nidec Servo Corporation. Please take a look at the page two or three or so. Please, if you have an electronic version of the document, please take a look at the page. Internal audit has confirmed various facts. There was a strong excessive pressure from the Nidec's head office. there was a strong excessive pressure from the nidec's head office Mr. Nagamori's this style, but people refrain from trying to change the way Mr. Nagamori tries to force people to achieve the company's target. mr nagamori's this style but people refrain from trying to change the way mr nagamori tries to force people to achieve the company's target I'd like to give you an example here. i'd like to give you an example here This is about Nidec Servo Corporation. this is about nidec servo corporation Please take a look at the page two or three or so. please take a look at the page two or three or so Please, if you have an electronic version of the document, please take a look at the page. please if you have an electronic version of the document please take a look at the page Internal audit has confirmed various facts. internal audit has confirmed various facts Nidec Servo executives committed internal misconduct because of the excessive pressure to achieve sales targets. Despite all that, internal audit excluded such information about the department from the meeting minutes, and there was no reference made about the incident in any document. Mr. Nagamori had a favorite person and people thought that if this issue was written in the document, that would upset Mr. Nagamori, according to the from Nidec Servo executive. Well, when it comes to Nidec head office's managers provided the pressure, the information, relevant information was shared with the PwC Kyoto. NCJ, which means the Nidec's head office. NCJ has applied various excessive pressure. That is the root cause, allegedly. Nidec Servo executives committed internal misconduct because of the excessive pressure to achieve sales targets. nidec servo executives committed internal misconduct because of the excessive pressure to achieve sales targets Despite all that, internal audit excluded such information about the department from the meeting minutes, and there was no reference made about the incident in any document. despite all that internal audit excluded such information about the department from the meeting minutes and there was no reference made about the incident in any document Mr. Nagamori had a favorite person and people thought that if this issue was written in the document, that would upset Mr. Nagamori, according to the from Nidec Servo executive. mr nagamori had a favorite person and people thought that if this issue was written in the document that would upset mr nagamori according to the from nidec servo executive Well, when it comes to Nidec head office's managers provided the pressure, the information, relevant information was shared with the PwC Kyoto. well when it comes to nidec head office's managers provided the pressure the information relevant information was shared with the pwc kyoto NCJ, which means the Nidec's head office. ncj which means the nidec's head office NCJ has applied various excessive pressure. ncj has applied various excessive pressure That is the root cause, allegedly. that is the root cause allegedly The comment about the such reference to the excessive pressure was made. We have a hearing minute meetings was found as well. From such executives, there was a strong pressure. Such a reference was excluded from minutes or documents. In meeting minutes, according to this Nidec Servo employees, they knew that it was necessary to achieve the target, but they had no choice but to process those negative legacies within a limited time range. There was a strong excessive pressure from Nidec's head office. There was a comment requesting additional, you know, the interviews with the NCJ executives. There were some comments, corrections were made to some comments as necessary in internal emails. The comment about the such reference to the excessive pressure was made. the comment about the such reference to the excessive pressure was made We have a hearing minute meetings was found as well. we have a hearing minute meetings was found as well From such executives, there was a strong pressure. from such executives there was a strong pressure Such a reference was excluded from minutes or documents. such a reference was excluded from minutes or documents In meeting minutes, according to this Nidec Servo employees, they knew that it was necessary to achieve the target, but they had no choice but to process those negative legacies within a limited time range. in meeting minutes according to this nidec servo employees they knew that it was necessary to achieve the target but they had no choice but to process those negative legacies within a limited time range There was a strong excessive pressure from Nidec's head office. there was a strong excessive pressure from nidec's head office There was a comment requesting additional, you know, the interviews with the NCJ executives. there was a comment requesting additional you know the interviews with the ncj executives There were some comments, corrections were made to some comments as necessary in internal emails. there were some comments corrections were made to some comments as necessary in internal emails NCJ's involvement was very aggressive, and some corrections are made in the documents to make the situation look normal. Such comments were eventually accepted by parties concerned. We reviewed all the accounting books. We didn't do it, actually. We didn't get to check accounting books. We didn't have hearing sessions with the this auditing firm personnel. We are referring to describe some objective opinions here in the document. From PwC Japan, we received a reply in paper. PwC Japan said in the document, based on the inquiry request received, as you can see here on the page here, we received. I'm going to read that reply out. With respect to the investigation, that First Senior Vice President as well as other executives, and we had a.NSRV, Nidec Servo is our acronym there. NCJ's involvement was very aggressive, and some corrections are made in the documents to make the situation look normal. ncj's involvement was very aggressive and some corrections are made in the documents to make the situation look normal Such comments were eventually accepted by parties concerned. such comments were eventually accepted by parties concerned We reviewed all the accounting books. we reviewed all the accounting books We didn't do it, actually. we didn't do it actually We didn't get to check accounting books. we didn't get to check accounting books We didn't have hearing sessions with the this auditing firm personnel. we didn't have hearing sessions with the this auditing firm personnel We are referring to describe some objective opinions here in the document. we are referring to describe some objective opinions here in the document From PwC Japan, we received a reply in paper. from pwc japan we received a reply in paper PwC Japan said in the document, based on the inquiry request received, as you can see here on the page here, we received. pwc japan said in the document based on the inquiry request received as you can see here on the page here we received I'm going to read that reply out. i'm going to read that reply out With respect to the investigation, that First Senior Vice President as well as other executives, and we had a. with respect to the investigation that first senior vice president as well as other executives and we had a NSRV, Nidec Servo is our acronym there. nsrv nidec servo is our acronym there In order to achieve the targets and such, explanations from the teleconference was there, but there are some incoherent facts included in the meeting minutes. Hearing minutes were corrected to check the facts. When it comes to this partner, in prior to fact-checking, inappropriate as well excessive pressure were needed to be confirmed to be non-existent. Such a reply was made to us. With respect to this series of these accounting misconducts, there was found some cases, such cases were found in every single fiscal year. I'd like to explain how these facts were explained. In order to achieve the targets and such, explanations from the teleconference was there, but there are some incoherent facts included in the meeting minutes. in order to achieve the targets and such explanations from the teleconference was there but there are some incoherent facts included in the meeting minutes Hearing minutes were corrected to check the facts. hearing minutes were corrected to check the facts When it comes to this partner, in prior to fact-checking, inappropriate as well excessive pressure were needed to be confirmed to be non-existent. when it comes to this partner in prior to fact-checking inappropriate as well excessive pressure were needed to be confirmed to be non-existent Such a reply was made to us. such a reply was made to us With respect to this series of these accounting misconducts, there was found some cases, such cases were found in every single fiscal year. with respect to this series of these accounting misconducts there was found some cases such cases were found in every single fiscal year I'd like to explain how these facts were explained. i'd like to explain how these facts were explained These facts were reported to the Auditor Supervisory Board. There was no report made about excessive pressure from Nidec's head office to various group entities. There was a strong pressure from the Nidec's head office, but these board members, audit members didn't realize that these problems occurred because of the existence of excessive pressure from the Nidec's head office. In various areas, we have found these accounting misconducts. It is because of the excessively high sales standards set by Nidec's head office. That was our notion initially. Targets were set very high by this is with Mr. Nagamori's management method itself. It's very difficult to fight such a method head-on. These facts were reported to the Auditor Supervisory Board. these facts were reported to the auditor supervisory board There was no report made about excessive pressure from Nidec's head office to various group entities. there was no report made about excessive pressure from nidec's head office to various group entities There was a strong pressure from the Nidec's head office, but these board members, audit members didn't realize that these problems occurred because of the existence of excessive pressure from the Nidec's head office. there was a strong pressure from the nidec's head office but these board members audit members didn't realize that these problems occurred because of the existence of excessive pressure from the nidec's head office In various areas, we have found these accounting misconducts. in various areas we have found these accounting misconducts It is because of the excessively high sales standards set by Nidec's head office. it is because of the excessively high sales standards set by nidec's head office That was our notion initially. that was our notion initially Targets were set very high by this is with Mr. Nagamori's management method itself. targets were set very high by this is with mr nagamori's management method itself It's very difficult to fight such a method head-on. it's very difficult to fight such a method head-on Such information was never shared with outside members of the board of directors. Next, please go to the next section of the document out there. We never found any facts about the instructions, leadership taken by Mr. Nagamori about this excessive pressure. Mr. Nagamori knew that there are some corrections are made to accounting information that itself would be could be accounting misconduct. It's inevitable that Mr. Nagamori at least tried to accept the manipulated accounting information. There was a strong pressure, once again, for all the employees to achieve sales target, and those pressures were coming from Mr. Nagamori himself. It's very unusual for a department to be established to be in charge of handling or processing accounting information. Such information was never shared with outside members of the board of directors. such information was never shared with outside members of the board of directors Next, please go to the next section of the document out there. next please go to the next section of the document out there We never found any facts about the instructions, leadership taken by Mr. Nagamori about this excessive pressure. we never found any facts about the instructions leadership taken by mr nagamori about this excessive pressure Mr. Nagamori knew that there are some corrections are made to accounting information that itself would be could be accounting misconduct. mr nagamori knew that there are some corrections are made to accounting information that itself would be could be accounting misconduct It's inevitable that Mr. Nagamori at least tried to accept the manipulated accounting information. it's inevitable that mr nagamori at least tried to accept the manipulated accounting information There was a strong pressure, once again, for all the employees to achieve sales target, and those pressures were coming from Mr. Nagamori himself. there was a strong pressure once again for all the employees to achieve sales target and those pressures were coming from mr nagamori himself It's very unusual for a department to be established to be in charge of handling or processing accounting information. it's very unusual for a department to be established to be in charge of handling or processing accounting information Mr. Nagamori still continued to request everyone to achieve excessively high sales target. Mr. Kishida and others requested to Mr. Nagamori to go to a structural reform several times to go, you know, not to use the this negative legacy related method, but Mr. Nagamori rejected such a idea for reform. Therefore, Mr. Nagamori himself would be the very individual to be blamed for, to be responsible for all of these misconducts. There was no evidence found of Mr. Kishida's involvement. Mr. Kishida made efforts to improve the situation in our opinion. The final decision, approve authority was in Mr. Nagamori's hands. Due to the lack of the launch of the reform efforts, Mr. Kishida and the rest of his companies are in the current situation. Mr. Nagamori still continued to request everyone to achieve excessively high sales target. mr nagamori still continued to request everyone to achieve excessively high sales target Mr. Kishida and others requested to Mr. Nagamori to go to a structural reform several times to go, you know, not to use the this negative legacy related method, but Mr. Nagamori rejected such a idea for reform. mr kishida and others requested to mr nagamori to go to a structural reform several times to go you know not to use the this negative legacy related method but mr nagamori rejected such a idea for reform Therefore, Mr. Nagamori himself would be the very individual to be blamed for, to be responsible for all of these misconducts. therefore mr nagamori himself would be the very individual to be blamed for to be responsible for all of these misconducts There was no evidence found of Mr. Kishida's involvement. there was no evidence found of mr kishida's involvement Mr. Kishida made efforts to improve the situation in our opinion. mr kishida made efforts to improve the situation in our opinion The final decision, approve authority was in Mr. Nagamori's hands. the final decision approve authority was in mr nagamori's hands Due to the lack of the launch of the reform efforts, Mr. Kishida and the rest of his companies are in the current situation. due to the lack of the launch of the reform efforts mr kishida and the rest of his companies are in the current situation Mr. Kishida himself should have being proactive in handling those negative legacy related issues, even in violation of Mr. Nagamori's instruction. Mr. Kishida should have acted more strongly, in our committee's opinion. Mr. Kobe, who was once such a person, he has long been in charge of sales operations of the company. Mr. Kobe wasn't found to be responsible for giving instructions for forcing people to achieve excessively high sales targets. There was no evidence we were able to find. Still, Mr. Kobe, even though less frequently than Mr. Nagamori, would receive reports from people in behaving committing misconducts. Mr. Kobe was aware of such misconducts in our committee's opinion. Mr. Kishida himself should have being proactive in handling those negative legacy related issues, even in violation of Mr. Nagamori's instruction. mr kishida himself should have being proactive in handling those negative legacy related issues even in violation of mr nagamori's instruction Mr. Kishida should have acted more strongly, in our committee's opinion. mr kishida should have acted more strongly in our committee's opinion Mr. Kobe, who was once such a person, he has long been in charge of sales operations of the company. mr kobe who was once such a person he has long been in charge of sales operations of the company Mr. Kobe wasn't found to be responsible for giving instructions for forcing people to achieve excessively high sales targets. mr kobe wasn't found to be responsible for giving instructions for forcing people to achieve excessively high sales targets There was no evidence we were able to find. there was no evidence we were able to find Still, Mr. Kobe, even though less frequently than Mr. Nagamori, would receive reports from people in behaving committing misconducts. still mr kobe even though less frequently than mr nagamori would receive reports from people in behaving committing misconducts Mr. Kobe was aware of such misconducts in our committee's opinion. mr kobe was aware of such misconducts in our committee's opinion Kobe was regarded as the Mr. Yoshimoto and Mr. Seki were both regarded as successors to Mr. Nagamori. There was no evidence found these two individuals to have been aware of such misconducts. Once again, the outside members of board of directors, as well as members of audit and supervisory board, internal audit department made reports to them, but those reports never touched the root causes of misconduct. Kobe was regarded as the Mr. Yoshimoto and Mr. Seki were both regarded as successors to Mr. Nagamori. kobe was regarded as the mr yoshimoto and mr seki were both regarded as successors to mr nagamori There was no evidence found these two individuals to have been aware of such misconducts. there was no evidence found these two individuals to have been aware of such misconducts Once again, the outside members of board of directors, as well as members of audit and supervisory board, internal audit department made reports to them, but those reports never touched the root causes of misconduct. once again the outside members of board of directors as well as members of audit and supervisory board internal audit department made reports to them but those reports never touched the root causes of misconduct

Speaker 35: They were doing all that because of extremely pressure for a better business performance. That's a reason for this misconduct, and nobody was aware of that. Outside directors, none of them, based on our committee hearing interviews. For these companies had to reflect owner Mr. Nagamori's management principles and aspired always to perform high year, and achievement of that target was essential. That pressure was not recognized as anything extraordinary, and negative legacy issues were never shared with outside directors. Out of those that we interviewed amongst outside directors. They were not aware of Nidec having a long time issues of negative legacies and those efforts to resolve that issues were carried out for quite some time under the name of structural reform or making the asset a more healthier project. Those were not recognized either. They were doing all that because of extremely pressure for a better business performance. they were doing all that because of extremely pressure for a better business performance That's a reason for this misconduct, and nobody was aware of that. that's a reason for this misconduct and nobody was aware of that Outside directors, none of them, based on our committee hearing interviews. outside directors none of them based on our committee hearing interviews For these companies had to reflect owner Mr. Nagamori's management principles and aspired always to perform high year, and achievement of that target was essential. for these companies had to reflect owner mr nagamori's management principles and aspired always to perform high year and achievement of that target was essential That pressure was not recognized as anything extraordinary, and negative legacy issues were never shared with outside directors. that pressure was not recognized as anything extraordinary and negative legacy issues were never shared with outside directors Out of those that we interviewed amongst outside directors. out of those that we interviewed amongst outside directors They were not aware of Nidec having a long time issues of negative legacies and those efforts to resolve that issues were carried out for quite some time under the name of structural reform or making the asset a more healthier project. they were not aware of nidec having a long time issues of negative legacies and those efforts to resolve that issues were carried out for quite some time under the name of structural reform or making the asset a more healthier project Those were not recognized either. those were not recognized either To get to the root cause analysis, I believe that for our committee, we wanted to focus on the root causes, narrow down to the fundamental causes. The first issue is massive pressure for a better business performance. That is a core reason for this fraud and accounting practice. First of all, unrealistic target was established. To achieve that target, they faced enormous pressures. That pressure started from Mr. Nagamori, and that is passed on via Nidec's management executives and to all the business units and subsidiaries executives. That, in the end, resulted in fraud and accounting practice. Nidec had this very unique internal audit entities with accounting audit dedicated division. In that sense, compared to other companies, there are fewer opportunities to commit to account practice. To get to the root cause analysis, I believe that for our committee, we wanted to focus on the root causes, narrow down to the fundamental causes. to get to the root cause analysis i believe that for our committee we wanted to focus on the root causes narrow down to the fundamental causes The first issue is massive pressure for a better business performance. the first issue is massive pressure for a better business performance That is a core reason for this fraud and accounting practice. that is a core reason for this fraud and accounting practice First of all, unrealistic target was established. first of all unrealistic target was established To achieve that target, they faced enormous pressures. to achieve that target they faced enormous pressures That pressure started from Mr. Nagamori, and that is passed on via Nidec's management executives and to all the business units and subsidiaries executives. that pressure started from mr nagamori and that is passed on via nidec's management executives and to all the business units and subsidiaries executives That, in the end, resulted in fraud and accounting practice. that in the end resulted in fraud and accounting practice Nidec had this very unique internal audit entities with accounting audit dedicated division. nidec had this very unique internal audit entities with accounting audit dedicated division In that sense, compared to other companies, there are fewer opportunities to commit to account practice. in that sense compared to other companies there are fewer opportunities to commit to account practice The amount of pressure is way more than those possible fraudulent pre-prevention functionality that accounting dedicated internal auditing team they fulfill. What's in the context is Mr. Nagamori's absolute power within Nidec and all the authority decision-makings were in fact conscripted to Mr. Nagamori. Mr. Nagamori is first of all has the ultimate authority over personal matters for our group's executives. That is causing the accounting fraud, the enormous pressure to meet all the monthly target. This negative legacy that they have are facing for a long time, and there's been some efforts to reduce that sometimes, they were not drastic enough. All that is because of this enormous pressure from Mr. Nagamori to achieve the business performance target. The amount of pressure is way more than those possible fraudulent pre-prevention functionality that accounting dedicated internal auditing team they fulfill. the amount of pressure is way more than those possible fraudulent pre-prevention functionality that accounting dedicated internal auditing team they fulfill What's in the context is Mr. Nagamori's absolute power within Nidec and all the authority decision-makings were in fact conscripted to Mr. Nagamori. what's in the context is mr nagamori's absolute power within nidec and all the authority decision-makings were in fact conscripted to mr nagamori Mr. Nagamori is first of all has the ultimate authority over personal matters for our group's executives. mr nagamori is first of all has the ultimate authority over personal matters for our group's executives That is causing the accounting fraud, the enormous pressure to meet all the monthly target. that is causing the accounting fraud the enormous pressure to meet all the monthly target This negative legacy that they have are facing for a long time, and there's been some efforts to reduce that sometimes, they were not drastic enough. this negative legacy that they have are facing for a long time and there's been some efforts to reduce that sometimes they were not drastic enough All that is because of this enormous pressure from Mr. Nagamori to achieve the business performance target. all that is because of this enormous pressure from mr nagamori to achieve the business performance target In the background of that, Nagamori had sole-handedly had a power over appointments and nomination for executives, personal matters. Regarding the divisions that were not functioning. First, accounting division. We have discovered that frauds were conduct involves accounting departments of a business division and sub-subsidiaries. Accounting irregularities involving accounting departments at Nidec's headquarters are also discovered as well. The reason why accounting department to act as they're supposed to act as a second line of defense, but and supposed to act to check and validate the accounting practice of the company, but that was not functioning. In the background of that, Nagamori had sole-handedly had a power over appointments and nomination for executives, personal matters. in the background of that nagamori had sole-handedly had a power over appointments and nomination for executives personal matters Regarding the divisions that were not functioning. regarding the divisions that were not functioning First, accounting division. first accounting division We have discovered that frauds were conduct involves accounting departments of a business division and sub-subsidiaries. we have discovered that frauds were conduct involves accounting departments of a business division and sub-subsidiaries Accounting irregularities involving accounting departments at Nidec's headquarters are also discovered as well. accounting irregularities involving accounting departments at nidec's headquarters are also discovered as well The reason why accounting department to act as they're supposed to act as a second line of defense, but and supposed to act to check and validate the accounting practice of the company, but that was not functioning. the reason why accounting department to act as they're supposed to act as a second line of defense but and supposed to act to check and validate the accounting practice of the company but that was not functioning We have consulted at least with external legal firms and as a preventative measure with external legal firm, they were asked to install a special report line at the business unit and subsidiaries accounting. That never realized. Actually that's mentioned in the report as well. They were quite weak in cross-divisional functionalities. One of the typical example is to try to grasp the negative legacy, but they were not, despite the fact that they are within a same group. Regarding internal audit divisions, the reason why the fraud accounting practice repeatedly happened, internal audit department recognized that the origin, the core reason resides in Mr. Nagamori, but and also together with that, business performance pressure. We have consulted at least with external legal firms and as a preventative measure with external legal firm, they were asked to install a special report line at the business unit and subsidiaries accounting. we have consulted at least with external legal firms and as a preventative measure with external legal firm they were asked to install a special report line at the business unit and subsidiaries accounting That never realized. that never realized Actually that's mentioned in the report as well. actually that's mentioned in the report as well They were quite weak in cross-divisional functionalities. they were quite weak in cross-divisional functionalities One of the typical example is to try to grasp the negative legacy, but they were not, despite the fact that they are within a same group. one of the typical example is to try to grasp the negative legacy but they were not despite the fact that they are within a same group Regarding internal audit divisions, the reason why the fraud accounting practice repeatedly happened, internal audit department recognized that the origin, the core reason resides in Mr. Nagamori, but and also together with that, business performance pressure. regarding internal audit divisions the reason why the fraud accounting practice repeatedly happened internal audit department recognized that the origin the core reason resides in mr nagamori but and also together with that business performance pressure They didn't dive right in to the core issues. Internal audits, research reviews, could not possibly delays all the business settlement, fixed year closing schedules. That was most importance. Internal audit departments, auditing committee, auditing board members and regular auditors, and committee members were aware that core reason for accounting fraud practice were because of the enormous pressure from Mr. Nagamori. Regular audit members were saying directly that because of this high aspirational target and to do the best to achieve it. That is Nagamori's management style itself. It was quite difficult to question that straight on. There was no governance working at all. They didn't dive right in to the core issues. they didn't dive right in to the core issues Internal audits, research reviews, could not possibly delays all the business settlement, fixed year closing schedules. internal audits research reviews could not possibly delays all the business settlement fixed year closing schedules That was most importance. that was most importance Internal audit departments, auditing committee, auditing board members and regular auditors, and committee members were aware that core reason for accounting fraud practice were because of the enormous pressure from Mr. Nagamori. internal audit departments auditing committee auditing board members and regular auditors and committee members were aware that core reason for accounting fraud practice were because of the enormous pressure from mr nagamori Regular audit members were saying directly that because of this high aspirational target and to do the best to achieve it. regular audit members were saying directly that because of this high aspirational target and to do the best to achieve it That is Nagamori's management style itself. that is nagamori's management style itself It was quite difficult to question that straight on. it was quite difficult to question that straight on There was no governance working at all. there was no governance working at all External auditor, there's been some individual cases explanation in the past, but those explanation were remaining in the surface level. There was no core reason for this accounting fraud shared with external directors. Outside auditors were not aware of the fundamental reasons or core reason that Nidec's was facing. This issue, this problem awareness were not aligned amongst the group and the Nidec group at various different sites are constantly, repeatedly having a wrong accounting practice is quite abnormal. There has been no outside director who saw some oddities in that situation. The committee concretely agrees that anyone with a professional knowledge, a different knowledge or experience looking at such a unique situation, they might handle it differently. External auditor, there's been some individual cases explanation in the past, but those explanation were remaining in the surface level. external auditor there's been some individual cases explanation in the past but those explanation were remaining in the surface level There was no core reason for this accounting fraud shared with external directors. there was no core reason for this accounting fraud shared with external directors Outside auditors were not aware of the fundamental reasons or core reason that Nidec's was facing. outside auditors were not aware of the fundamental reasons or core reason that nidec's was facing This issue, this problem awareness were not aligned amongst the group and the Nidec group at various different sites are constantly, repeatedly having a wrong accounting practice is quite abnormal. this issue this problem awareness were not aligned amongst the group and the nidec group at various different sites are constantly repeatedly having a wrong accounting practice is quite abnormal There has been no outside director who saw some oddities in that situation. there has been no outside director who saw some oddities in that situation The committee concretely agrees that anyone with a professional knowledge, a different knowledge or experience looking at such a unique situation, they might handle it differently. the committee concretely agrees that anyone with a professional knowledge a different knowledge or experience looking at such a unique situation they might handle it differently When our third-party investigation committee faced these issues, this amount of significant account wrongdoings were already discovered within the group, we were surprised with that. It wasn't the first time they discovered it. Nidec's executives and employee provided inaccurate and misleading information to accounting firms to elicit a favorable opinions. Nidec's directors were seeing personnel of PwC Kyoto as a easy one's target to persuade or to give in to. What's recently discovered is some of them were on extension of aggressive accounting practice. Because they saw PwC personnel's counterparts as a easy target to persuade, that also led to this nonstop practice of accounting fraud. That's also a possibility. When our third-party investigation committee faced these issues, this amount of significant account wrongdoings were already discovered within the group, we were surprised with that. when our third-party investigation committee faced these issues this amount of significant account wrongdoings were already discovered within the group we were surprised with that It wasn't the first time they discovered it. it wasn't the first time they discovered it Nidec's executives and employee provided inaccurate and misleading information to accounting firms to elicit a favorable opinions. nidec's executives and employee provided inaccurate and misleading information to accounting firms to elicit a favorable opinions Nidec's directors were seeing personnel of PwC Kyoto as a easy one's target to persuade or to give in to. nidec's directors were seeing personnel of pwc kyoto as a easy one's target to persuade or to give in to What's recently discovered is some of them were on extension of aggressive accounting practice. what's recently discovered is some of them were on extension of aggressive accounting practice Because they saw PwC personnel's counterparts as a easy target to persuade, that also led to this nonstop practice of accounting fraud. because they saw pwc personnel's counterparts as a easy target to persuade that also led to this nonstop practice of accounting fraud That's also a possibility. that's also a possibility Amongst this accounting fraud, we saw the Nidec employees hiding some of the evidences or testified in the false manner to PwC Kyoto. Even if the auditing entities were not fully aware of those evidences, the ones who were, they shouldn't be blamed for the wrong accounting practice. The ones who are actually doing it is not the auditing entity, it's Nidec itself. Nidec lacked in understanding that they are fully responsible in providing the correct and accurate financial statements. Nidec's reform, reconstruction committee head, is led by the current CEO and the president. Nidec's improvement measures, from our committee's perspective, do have certain concerning point, but fundamentally, we believe that those measures are beneficial to prevent accounting fraud from happening again. Amongst this accounting fraud, we saw the Nidec employees hiding some of the evidences or testified in the false manner to PwC Kyoto. amongst this accounting fraud we saw the nidec employees hiding some of the evidences or testified in the false manner to pwc kyoto Even if the auditing entities were not fully aware of those evidences, the ones who were, they shouldn't be blamed for the wrong accounting practice. even if the auditing entities were not fully aware of those evidences the ones who were they shouldn't be blamed for the wrong accounting practice The ones who are actually doing it is not the auditing entity, it's Nidec itself. the ones who are actually doing it is not the auditing entity it's nidec itself Nidec lacked in understanding that they are fully responsible in providing the correct and accurate financial statements. nidec lacked in understanding that they are fully responsible in providing the correct and accurate financial statements Nidec's reform, reconstruction committee head, is led by the current CEO and the president. nidec's reform reconstruction committee head is led by the current ceo and the president Nidec's improvement measures, from our committee's perspective, do have certain concerning point, but fundamentally, we believe that those measures are beneficial to prevent accounting fraud from happening again. nidec's improvement measures from our committee's perspective do have certain concerning point but fundamentally we believe that those measures are beneficial to prevent accounting fraud from happening again Our assessment is that their improvement measures were valid. On this occasion, we would like to provide additional advice from this committee. First is complete ejection of Mr. Nagamori presidency. He needs to be leaving the company completely because this was a company that he founded. His management principle was permeated throughout the company. This whole series of accounting practice cases root causes is because of Mr. Nagamori's management styles and his governance are not working. In order for Nidec to reform itself, Nidec needs to exit Mr. Nagamori's presence. Our assessment is that their improvement measures were valid. our assessment is that their improvement measures were valid On this occasion, we would like to provide additional advice from this committee. on this occasion we would like to provide additional advice from this committee First is complete ejection of Mr. Nagamori presidency. first is complete ejection of mr nagamori presidency He needs to be leaving the company completely because this was a company that he founded. he needs to be leaving the company completely because this was a company that he founded His management principle was permeated throughout the company. his management principle was permeated throughout the company This whole series of accounting practice cases root causes is because of Mr. Nagamori's management styles and his governance are not working. this whole series of accounting practice cases root causes is because of mr nagamori's management styles and his governance are not working In order for Nidec to reform itself, Nidec needs to exit Mr. Nagamori's presence. in order for nidec to reform itself nidec needs to exit mr nagamori's presence In order to reduce the impact from Mr. Nagamori, other shareholders, I do believe there is a discussion, that's worth doing, for the possible termination or the rejection, ejection or cancellation of the shares or under some consensus, to limit the certain rights exercise. It's not something that Nidec's can do through its own initiatives, but it can be a part of a preventive measure. Many of these measures that the company put out are on the surface level. What's important for Nidec is not only Mr. Nagamori, but only the part of Mr. Nagamori's surroundings making significant impact for the appropriate business practice. How to prevent that, the key player will be outside directors, of course. In order to reduce the impact from Mr. Nagamori, other shareholders, I do believe there is a discussion, that's worth doing, for the possible termination or the rejection, ejection or cancellation of the shares or under some consensus, to limit the certain rights exercise. in order to reduce the impact from mr nagamori other shareholders i do believe there is a discussion that's worth doing for the possible termination or the rejection ejection or cancellation of the shares or under some consensus to limit the certain rights exercise It's not something that Nidec's can do through its own initiatives, but it can be a part of a preventive measure. it's not something that nidec's can do through its own initiatives but it can be a part of a preventive measure Many of these measures that the company put out are on the surface level. many of these measures that the company put out are on the surface level What's important for Nidec is not only Mr. Nagamori, but only the part of Mr. Nagamori's surroundings making significant impact for the appropriate business practice. what's important for nidec is not only mr nagamori but only the part of mr nagamori's surroundings making significant impact for the appropriate business practice How to prevent that, the key player will be outside directors, of course. how to prevent that the key player will be outside directors of course What's the problem here is a business manager may be influenced by only a certain limited number of stakeholders. Strategy to sort appropriate succession business operation. The most powerful countermeasure is via not the supervision functionality under the direction of management, the one with legally backed up authority. That means external directors. It's easy to be said, the external directors participate in the board meeting only once a month. It's quite difficult to understand the root cause that is hidden behind businesses. Even if they recognize certain agendas that are challenges the company bears, and they make a comment at the board meeting levels, but it's quite difficult to combat the counterargument from the director who are in executive positions, who are involved in day-to-day business. What's the problem here is a business manager may be influenced by only a certain limited number of stakeholders. what's the problem here is a business manager may be influenced by only a certain limited number of stakeholders Strategy to sort appropriate succession business operation. strategy to sort appropriate succession business operation The most powerful countermeasure is via not the supervision functionality under the direction of management, the one with legally backed up authority. the most powerful countermeasure is via not the supervision functionality under the direction of management the one with legally backed up authority That means external directors. that means external directors It's easy to be said, the external directors participate in the board meeting only once a month. it's easy to be said the external directors participate in the board meeting only once a month It's quite difficult to understand the root cause that is hidden behind businesses. it's quite difficult to understand the root cause that is hidden behind businesses Even if they recognize certain agendas that are challenges the company bears, and they make a comment at the board meeting levels, but it's quite difficult to combat the counterargument from the director who are in executive positions, who are involved in day-to-day business. even if they recognize certain agendas that are challenges the company bears and they make a comment at the board meeting levels but it's quite difficult to combat the counterargument from the director who are in executive positions who are involved in day-to-day business Given all that advice, even if we were to include accounting professional or someone with a significant management experience in external advice, will not completely guarantee that any tinted, colored looking glass when making a completely independent audit responsibilities. In order to fulfill the functionality of Outside Director as the way it should be, we believe that we need to improve the information that is shared to Outside Director. That's essential. Also, we need to have a system where Outside Director can work with other external parties to strengthen his or her advice. First of all, the information quality is essential. That's been our biggest issue here. Outside Directors are legally backed to save the company in the times of emergency. Given all that advice, even if we were to include accounting professional or someone with a significant management experience in external advice, will not completely guarantee that any tinted, colored looking glass when making a completely independent audit responsibilities. given all that advice even if we were to include accounting professional or someone with a significant management experience in external advice will not completely guarantee that any tinted colored looking glass when making a completely independent audit responsibilities In order to fulfill the functionality of Outside Director as the way it should be, we believe that we need to improve the information that is shared to Outside Director. in order to fulfill the functionality of outside director as the way it should be we believe that we need to improve the information that is shared to outside director That's essential. that's essential Also, we need to have a system where Outside Director can work with other external parties to strengthen his or her advice. also we need to have a system where outside director can work with other external parties to strengthen his or her advice First of all, the information quality is essential. first of all the information quality is essential That's been our biggest issue here. that's been our biggest issue here Outside Directors are legally backed to save the company in the times of emergency. outside directors are legally backed to save the company in the times of emergency It is essential for outside director to provide advice to save and rescue the businesses through the Nidec management in the time of needs, and regarding necessary support. Having a dedicated staff may be too excessive, but whenever external director requires some support, companies need to provide that as well. As needed, for the outside directors, strengthening, it's probably beneficial for these companies to have attorneys, or to get advice, seek out from legal professionals. Outside director has strong authorities, but the reality may be different because there may be a certain reservation, certain consideration, paid to the regular directors. Outside directors also are human too. It's unavoidable, and that's mentioned in the improvement measures taken by Nidec. It is essential for outside director to provide advice to save and rescue the businesses through the Nidec management in the time of needs, and regarding necessary support. it is essential for outside director to provide advice to save and rescue the businesses through the nidec management in the time of needs and regarding necessary support Having a dedicated staff may be too excessive, but whenever external director requires some support, companies need to provide that as well. having a dedicated staff may be too excessive but whenever external director requires some support companies need to provide that as well As needed, for the outside directors, strengthening, it's probably beneficial for these companies to have attorneys, or to get advice, seek out from legal professionals. as needed for the outside directors strengthening it's probably beneficial for these companies to have attorneys or to get advice seek out from legal professionals Outside director has strong authorities, but the reality may be different because there may be a certain reservation, certain consideration, paid to the regular directors. outside director has strong authorities but the reality may be different because there may be a certain reservation certain consideration paid to the regular directors Outside directors also are human too. outside directors also are human too It's unavoidable, and that's mentioned in the improvement measures taken by Nidec. it's unavoidable and that's mentioned in the improvement measures taken by nidec Getting a teams involved is essential to improve this company. One person will not be able to save this company. If there were three peoples with aligned issues awareness, then they can cope with those issues, and then we will be able to combat those difficult challenges. I think that is quite important. In the end, sincerity to the investors, to the open capital market is essential and that needs to be done thoroughly, as I mentioned in the root cause explanation sections. Disclosing inaccurate financial statement that are approved or disapproved by auditors is a fraud, and it's a fraud against the capital market. They need to recognize that Nidec is losing the trust of investors now. Getting a teams involved is essential to improve this company. getting a teams involved is essential to improve this company One person will not be able to save this company. one person will not be able to save this company If there were three peoples with aligned issues awareness, then they can cope with those issues, and then we will be able to combat those difficult challenges. if there were three peoples with aligned issues awareness then they can cope with those issues and then we will be able to combat those difficult challenges I think that is quite important. i think that is quite important In the end, sincerity to the investors, to the open capital market is essential and that needs to be done thoroughly, as I mentioned in the root cause explanation sections. in the end sincerity to the investors to the open capital market is essential and that needs to be done thoroughly as i mentioned in the root cause explanation sections Disclosing inaccurate financial statement that are approved or disapproved by auditors is a fraud, and it's a fraud against the capital market. disclosing inaccurate financial statement that are approved or disapproved by auditors is a fraud and it's a fraud against the capital market They need to recognize that Nidec is losing the trust of investors now. they need to recognize that nidec is losing the trust of investors now In order-- That is the first step to Nidec to restore the trust is to show the true and honest business situation openly to the capital market. That is essential work that needs to be carried out by CEO and CFO. Last but not least, I don't think this accounting fraud practice gives questions to Nidec's capability as a manufacturing manufacturer. The issue is because they were so focused on meeting the targets, and that pressure causes accounting practice. Nidec's core business value of monozukuri company still remains. The company is not what Nagamori San imagined to be. If Nidec can prove to the market that the real capability as a manufacturer, I think the market can trust the Nidec's again. In order-- That is the first step to Nidec to restore the trust is to show the true and honest business situation openly to the capital market. in order-- that is the first step to nidec to restore the trust is to show the true and honest business situation openly to the capital market That is essential work that needs to be carried out by CEO and CFO. that is essential work that needs to be carried out by ceo and cfo Last but not least, I don't think this accounting fraud practice gives questions to Nidec's capability as a manufacturing manufacturer. last but not least i don't think this accounting fraud practice gives questions to nidec's capability as a manufacturing manufacturer The issue is because they were so focused on meeting the targets, and that pressure causes accounting practice. the issue is because they were so focused on meeting the targets and that pressure causes accounting practice Nidec's core business value of monozukuri company still remains. nidec's core business value of monozukuri company still remains The company is not what Nagamori San imagined to be. the company is not what nagamori san imagined to be If Nidec can prove to the market that the real capability as a manufacturer, I think the market can trust the Nidec's again. if nidec can prove to the market that the real capability as a manufacturer i think the market can trust the nidec's again

Speaker 8: I have to emphasize that the current investigation is still ongoing. For my officers and the current officers, I really appreciate your support and assistance, especially for the current officers at Nidec. Please not they make new born Nidec, and that attitude has been felt quite strongly throughout our investigation. Therefore, on behalf of the committee, I'd like to appreciate your support. Because you are member of Nidec and therefore as a human as well as the manufacturing enterprise, you are the base and true strengths of Nidec. I believe Nidec can regain the trust from the market and investigators, the investors because of you. Sorry for occupying the stage for a long time, but that's all for the result of the committee investigation. Thank you very much for your kind attention. Thank you very much. I have to emphasize that the current investigation is still ongoing. i have to emphasize that the current investigation is still ongoing For my officers and the current officers, I really appreciate your support and assistance, especially for the current officers at Nidec. for my officers and the current officers i really appreciate your support and assistance especially for the current officers at nidec Please not they make new born Nidec, and that attitude has been felt quite strongly throughout our investigation. please not they make new born nidec and that attitude has been felt quite strongly throughout our investigation Therefore, on behalf of the committee, I'd like to appreciate your support. therefore on behalf of the committee i'd like to appreciate your support Because you are member of Nidec and therefore as a human as well as the manufacturing enterprise, you are the base and true strengths of Nidec. because you are member of nidec and therefore as a human as well as the manufacturing enterprise you are the base and true strengths of nidec I believe Nidec can regain the trust from the market and investigators, the investors because of you. i believe nidec can regain the trust from the market and investigators the investors because of you Sorry for occupying the stage for a long time, but that's all for the result of the committee investigation. sorry for occupying the stage for a long time but that's all for the result of the committee investigation Thank you very much for your kind attention. thank you very much for your kind attention Thank you very much. thank you very much

Speaker 21: Now, I'd like to open the floor for the Q&A session. Today, we'd like to receive as many questions as possible from the audience, can you please limit yourself to raise one question per person. If you have a question, please raise your hand and the moderator will assign who can speak up. Please wait till a microphone alerts you and please identify your name and affiliation before stating your questions. Now, please raise your hand if you have any questions. Okay, the person in the third row, please. Now, I'd like to open the floor for the Q&A session. now i'd like to open the floor for the q&a session Today, we'd like to receive as many questions as possible from the audience, can you please limit yourself to raise one question per person. today we'd like to receive as many questions as possible from the audience can you please limit yourself to raise one question per person If you have a question, please raise your hand and the moderator will assign who can speak up. if you have a question please raise your hand and the moderator will assign who can speak up Please wait till a microphone alerts you and please identify your name and affiliation before stating your questions. please wait till a microphone alerts you and please identify your name and affiliation before stating your questions Now, please raise your hand if you have any questions. now please raise your hand if you have any questions Okay, the person in the third row, please. okay the person in the third row please

Speaker 28: I'm Amori from Toyo Keizai. I have just one question. Now, this time investigation and its result, it's concluded that responsibility should be filled out or by no means there is no such that the gravest case is identified in this investigation. Oh, sorry, it's not chronological, but criminal. That's right. I'm Amori from Toyo Keizai. i'm amori from toyo keizai I have just one question. i have just one question Now, this time investigation and its result, it's concluded that responsibility should be filled out or by no means there is no such that the gravest case is identified in this investigation. now this time investigation and its result it's concluded that responsibility should be filled out or by no means there is no such that the gravest case is identified in this investigation Oh, sorry, it's not chronological, but criminal. oh sorry it's not chronological but criminal That's right. that's right

Speaker 8: Okay. As I mentioned at the very beginning, the role of our committee is to analyze the root causes for the fraudulent a-accounts. At the same time, we expected to present the recommendations. Of course, there's the criminal penalties are put in place based on that prerequisites, whether we have to ask criminal responsibility or not. That is outside of the scope of our role of a committee, and this was not what I have to do as the attorney at law. Because it's related to the ethical issue for the attorney, they please understand that. It's very difficult to respond to that question as an attorney or lawyer. Okay. okay As I mentioned at the very beginning, the role of our committee is to analyze the root causes for the fraudulent a-accounts. as i mentioned at the very beginning the role of our committee is to analyze the root causes for the fraudulent a-accounts At the same time, we expected to present the recommendations. at the same time we expected to present the recommendations Of course, there's the criminal penalties are put in place based on that prerequisites, whether we have to ask criminal responsibility or not. of course there's the criminal penalties are put in place based on that prerequisites whether we have to ask criminal responsibility or not That is outside of the scope of our role of a committee, and this was not what I have to do as the attorney at law. that is outside of the scope of our role of a committee and this was not what i have to do as the attorney at law Because it's related to the ethical issue for the attorney, they please understand that. because it's related to the ethical issue for the attorney they please understand that It's very difficult to respond to that question as an attorney or lawyer. it's very difficult to respond to that question as an attorney or lawyer

Speaker 28: Okay, thank you very much. Okay, thank you very much. okay thank you very much

Speaker 21: The next question, the person in the jacket at the front row, please. The next question, the person in the jacket at the front row, please. the next question the person in the jacket at the front row please

Speaker 44: Thank you very much. I'm Murai from Diamond Corporation.This time, accounting fraudulent, when I read the report, at each company there are wide varieties of the fraudulent activities such as the avoidance of the impairment processes or the deferral of the profits, and these activities were identified throughout the group companies. Because of the very strong aggressive and pressure imposed by Mr. Nagamori, this is one of the reasons. In addition to that, regarding the fraudulent accounting process, there are no cases where the instructions or orders given by Mr. Nagamori. However, regarding the disposition of the legacy liabilities or involvement of the CFO to legacy liabilities or the organization of a special audit department processed and disposed of legal legacy liabilities in a very planned manner. Thank you very much. thank you very much I'm Murai from Diamond Corporation. i'm murai from diamond corporation This time, accounting fraudulent, when I read the report, at each company there are wide varieties of the fraudulent activities such as the avoidance of the impairment processes or the deferral of the profits, and these activities were identified throughout the group companies. this time accounting fraudulent when i read the report at each company there are wide varieties of the fraudulent activities such as the avoidance of the impairment processes or the deferral of the profits and these activities were identified throughout the group companies Because of the very strong aggressive and pressure imposed by Mr. Nagamori, this is one of the reasons. because of the very strong aggressive and pressure imposed by mr nagamori this is one of the reasons In addition to that, regarding the fraudulent accounting process, there are no cases where the instructions or orders given by Mr. Nagamori. in addition to that regarding the fraudulent accounting process there are no cases where the instructions or orders given by mr nagamori However, regarding the disposition of the legacy liabilities or involvement of the CFO to legacy liabilities or the organization of a special audit department processed and disposed of legal legacy liabilities in a very planned manner. however regarding the disposition of the legacy liabilities or involvement of the cfo to legacy liabilities or the organization of a special audit department processed and disposed of legal legacy liabilities in a very planned manner When I look at these activities, is that regarded as the systemic and the disposition of the accounting activities are conducted? There's no instruction nor order from Mr. Nagamori for these fraudulent cases. I read it in the report. However, special audit included disposition of legacy liabilities. Each time there is actual conduct of the fraudulent accounting, and therefore to what degree Mr. Nagamori was aware of these conducts or activities, and then based on those recognition, what kind of instructions given by Mr. Nagamori? For example, did he say that he didn't know anything? When I look at these activities, is that regarded as the systemic and the disposition of the accounting activities are conducted? when i look at these activities is that regarded as the systemic and the disposition of the accounting activities are conducted There's no instruction nor order from Mr. Nagamori for these fraudulent cases. there's no instruction nor order from mr nagamori for these fraudulent cases I read it in the report. i read it in the report However, special audit included disposition of legacy liabilities. however special audit included disposition of legacy liabilities Each time there is actual conduct of the fraudulent accounting, and therefore to what degree Mr. Nagamori was aware of these conducts or activities, and then based on those recognition, what kind of instructions given by Mr. Nagamori? each time there is actual conduct of the fraudulent accounting and therefore to what degree mr nagamori was aware of these conducts or activities and then based on those recognition what kind of instructions given by mr nagamori For example, did he say that he didn't know anything? for example did he say that he didn't know anything

Speaker 8: Thank you very much for very good question because to begin with, I should have explained it in my presentation by spending enough time. That's why I really appreciate your question. First of all, regarding the legacy liabilities, let me elaborate on what it is. Thank you very much for very good question because to begin with, I should have explained it in my presentation by spending enough time. thank you very much for very good question because to begin with i should have explained it in my presentation by spending enough time That's why I really appreciate your question. that's why i really appreciate your question First of all, regarding the legacy liabilities, let me elaborate on what it is. first of all regarding the legacy liabilities let me elaborate on what it is

Speaker 16: These legacy liabilities are not caused by the fraudulent accounting necessarily. Of course, not the future impairment process is necessary or the possibility of the impairment loss should be reviewed and the legacy liabilities are most of such nature. However, some of them, some of the legacy liabilities must be disposed right now here, or some legacy liabilities must have been disposed in the past. However, some of them still remain, and therefore, when you hear legacy liabilities, you believe everything is negative. However, it's kind of risky assets. However, because they are risky existing as asset for each fiscal year, that is a problem because disposition is necessary. These legacy liabilities are not caused by the fraudulent accounting necessarily. these legacy liabilities are not caused by the fraudulent accounting necessarily Of course, not the future impairment process is necessary or the possibility of the impairment loss should be reviewed and the legacy liabilities are most of such nature. of course not the future impairment process is necessary or the possibility of the impairment loss should be reviewed and the legacy liabilities are most of such nature However, some of them, some of the legacy liabilities must be disposed right now here, or some legacy liabilities must have been disposed in the past. however some of them some of the legacy liabilities must be disposed right now here or some legacy liabilities must have been disposed in the past However, some of them still remain, and therefore, when you hear legacy liabilities, you believe everything is negative. however some of them still remain and therefore when you hear legacy liabilities you believe everything is negative However, it's kind of risky assets. however it's kind of risky assets However, because they are risky existing as asset for each fiscal year, that is a problem because disposition is necessary. however because they are risky existing as asset for each fiscal year that is a problem because disposition is necessary Although some of the employees believe that they wanted to dispose of the legacy liabilities, however, if they did so, they could not achieve the expected performance, and they had to defer the disposition of the legacy liabilities. Because of that, they have lost in a good timing. Recognition of legacy liabilities as a whole, and they should be disposed in a planned manner. However, they are not equal to the recognition of the fraudulent accounting. In this sense, the CFO at the Nidec head office, He had used all the planned and disposal. However, it's not good because not ¥100 billion should not exist as legacy liabilities. He has to look into the details to identify which one should be disposed and which one can be remained. The order is important for these activities and therefore for CFO. Although some of the employees believe that they wanted to dispose of the legacy liabilities, however, if they did so, they could not achieve the expected performance, and they had to defer the disposition of the legacy liabilities. although some of the employees believe that they wanted to dispose of the legacy liabilities however if they did so they could not achieve the expected performance and they had to defer the disposition of the legacy liabilities Because of that, they have lost in a good timing. because of that they have lost in a good timing Recognition of legacy liabilities as a whole, and they should be disposed in a planned manner. recognition of legacy liabilities as a whole and they should be disposed in a planned manner However, they are not equal to the recognition of the fraudulent accounting. however they are not equal to the recognition of the fraudulent accounting In this sense, the CFO at the Nidec head office, He had used all the planned and disposal. in this sense the cfo at the nidec head office he had used all the planned and disposal However, it's not good because not ¥ 100 billion should not exist as legacy liabilities. however it's not good because not ¥ 100 billion should not exist as legacy liabilities He has to look into the details to identify which one should be disposed and which one can be remained. he has to look into the details to identify which one should be disposed and which one can be remained The order is important for these activities and therefore for CFO. the order is important for these activities and therefore for cfo For example, although the SCFO recognized some of them as the bad liabilities and that they though they should be disposed, Did he that much? No. That level of recognition was not done by the CFO. For example, although the SCFO recognized some of them as the bad liabilities and that they though they should be disposed, Did he that much? for example although the scfo recognized some of them as the bad liabilities and that they though they should be disposed did he that much No. no That level of recognition was not done by the CFO. that level of recognition was not done by the cfo

Speaker 8: What is your question? Sorry. Then to what degree Mr. Nagamori was aware of this. Regarding this special audit, nature is different from usual audit. To be more precise, please refer the Nippon Densan Copal description in the official report. Let me see the page number. Sorry, I don't remember it, but you can see the detailed explanation for that. If you happen to have the report, I believe it's around page one or two, approximately speaking, where you can see the descriptions related to Nippon Densan Copal. What is your question? what is your question Sorry. sorry Then to what degree Mr. Nagamori was aware of this. then to what degree mr nagamori was aware of this Regarding this special audit, nature is different from usual audit. regarding this special audit nature is different from usual audit To be more precise, please refer the Nippon Densan Copal description in the official report. to be more precise please refer the nippon densan copal description in the official report Let me see the page number. let me see the page number Sorry, I don't remember it, but you can see the detailed explanation for that. sorry i don't remember it but you can see the detailed explanation for that If you happen to have the report, I believe it's around page one or two, approximately speaking, where you can see the descriptions related to Nippon Densan Copal. if you happen to have the report i believe it's around page one or two approximately speaking where you can see the descriptions related to nippon densan copal Suppose that there's a certain fixed asset, and it's inevitable to apply impairment accounting. However, in the process of impairment, in a process, Mr. Nagamori himself negotiated with the counterpart. It's failed, and that's why the inevitable impairment process was applied. You see the detailed process, who were involved in the special audit and report, how report was raised to Mr. Nagamori. Mr. Nagamori was aware of this. Although this is just one of the examples, but then regarding the special audit to its activity, we believe that the Mr. Nagamori was aware of the detailed information and therefore based on that, we regarded that Mr. Nagamori accepted the fraudulent accounting. That means that Mr. Nagamori himself was aware of and accepted the fraudulent accounting. Please refer the description of the report. Suppose that there's a certain fixed asset, and it's inevitable to apply impairment accounting. However, in the process of impairment, in a process, Mr. Nagamori himself negotiated with the counterpart. suppose that there's a certain fixed asset and it's inevitable to apply impairment accounting. however in the process of impairment in a process mr nagamori himself negotiated with the counterpart It's failed, and that's why the inevitable impairment process was applied. it's failed and that's why the inevitable impairment process was applied You see the detailed process, who were involved in the special audit and report, how report was raised to Mr. Nagamori. you see the detailed process who were involved in the special audit and report how report was raised to mr nagamori Mr. Nagamori was aware of this. mr nagamori was aware of this Although this is just one of the examples, but then regarding the special audit to its activity, we believe that the Mr. Nagamori was aware of the detailed information and therefore based on that, we regarded that Mr. Nagamori accepted the fraudulent accounting. although this is just one of the examples but then regarding the special audit to its activity we believe that the mr nagamori was aware of the detailed information and therefore based on that we regarded that mr nagamori accepted the fraudulent accounting That means that Mr. Nagamori himself was aware of and accepted the fraudulent accounting. that means that mr nagamori himself was aware of and accepted the fraudulent accounting Please refer the description of the report. please refer the description of the report To begin with, I should have instructed that these assets should be disposed immediately. However, the employee in charge of the special audit said that the special disposal was made, and therefore he accepted it. By the way, Mr. Nagamori accepted this time interview? Yes. He was interviewed. I don't remember how many times we got interviews, but I remember at least four or five interviews were made with Mr. Nagamori. Thank you very much. To begin with, I should have instructed that these assets should be disposed immediately. to begin with i should have instructed that these assets should be disposed immediately However, the employee in charge of the special audit said that the special disposal was made, and therefore he accepted it. however the employee in charge of the special audit said that the special disposal was made and therefore he accepted it By the way, Mr. Nagamori accepted this time interview? by the way mr nagamori accepted this time interview Yes. yes He was interviewed. he was interviewed I don't remember how many times we got interviews, but I remember at least four or five interviews were made with Mr. Nagamori. i don't remember how many times we got interviews but i remember at least four or five interviews were made with mr nagamori Thank you very much. thank you very much

Speaker 21: Any other questions? If I may, I have a follow-up question regarding the detailed in a report. Pages of 108 and 109, you can see the exact descriptions referred in this Q&A. Thank you very much. Now, the next goes to the person in the second row from the back. Emi Sato from Morgan Stanley. Any other questions? any other questions If I may, I have a follow-up question regarding the detailed in a report. if i may i have a follow-up question regarding the detailed in a report Pages of 108 and 109, you can see the exact descriptions referred in this Q&A. pages of 108 and 109 you can see the exact descriptions referred in this q&a Thank you very much. thank you very much Now, the next goes to the person in the second row from the back. now the next goes to the person in the second row from the back Emi Sato from Morgan Stanley. emi sato from morgan stanley

Speaker 5: First of all, thank you very much for your explanation.At this moment of time, investigation is still ongoing, as I heard. At the end of the day, the report from the investigation will be available. When can we see the report? At that time, can we see the amount of impact onto the assets, net assets, compared to the previous fiscal year? There's a negative impact of ¥139.7 billion, according to the current report. Are there any possibilities that this amount may change? In addition to that, because investigation is ongoing, the reason why the investigation is going on, what's the missing points? First of all, thank you very much for your explanation. first of all thank you very much for your explanation At this moment of time, investigation is still ongoing, as I heard. at this moment of time investigation is still ongoing as i heard At the end of the day, the report from the investigation will be available. at the end of the day the report from the investigation will be available When can we see the report? when can we see the report At that time, can we see the amount of impact onto the assets, net assets, compared to the previous fiscal year? at that time can we see the amount of impact onto the assets net assets compared to the previous fiscal year There's a negative impact of ¥ 139.7 billion, according to the current report. there's a negative impact of ¥ 139.7 billion according to the current report Are there any possibilities that this amount may change? are there any possibilities that this amount may change In addition to that, because investigation is ongoing, the reason why the investigation is going on, what's the missing points? in addition to that because investigation is ongoing the reason why the investigation is going on what's the missing points

Speaker 8: Thank you very much for your question. Let me answer to the questions where I would be the best person to reply. Final report of the investigation, I assume you'd like to know when the final report will be coming out. Thank you very much for your question. thank you very much for your question Let me answer to the questions where I would be the best person to reply. let me answer to the questions where i would be the best person to reply Final report of the investigation, I assume you'd like to know when the final report will be coming out. final report of the investigation i assume you'd like to know when the final report will be coming out All I can say is TBD. Nothing is determined yet regarding the timing of when the final report will come out. The third question, probably I should answer to the third question, but can you please state your third question once again? All I can say is TBD. all i can say is tbd Nothing is determined yet regarding the timing of when the final report will come out. nothing is determined yet regarding the timing of when the final report will come out The third question, probably I should answer to the third question, but can you please state your third question once again? the third question probably i should answer to the third question but can you please state your third question once again

Speaker 5: I don't know when, but now the ¥139.7 billion, this is the impact onto the assets, net assets, and additionally, what your committee has to investigate. I don't know when, but now the ¥ 139.7 billion, this is the impact onto the assets, net assets, and additionally, what your committee has to investigate. i don't know when but now the ¥ 139.7 billion this is the impact onto the assets net assets and additionally what your committee has to investigate

Speaker 8: Thank you very much for repeating your questions once again. Regarding the question two, we have completed the root cause analysis. What remains, that is the each case of fraudulent accounting investigation. We have to complete this investigation. That's why in this report, there are 12 specific cases. Thank you very much for repeating your questions once again. thank you very much for repeating your questions once again Regarding the question two, we have completed the root cause analysis. regarding the question two we have completed the root cause analysis What remains, that is the each case of fraudulent accounting investigation. what remains that is the each case of fraudulent accounting investigation We have to complete this investigation. we have to complete this investigation That's why in this report, there are 12 specific cases. that's why in this report there are 12 specific cases This is just a part of the fraudulent accounting, in addition to them, there may be other fraudulent accounting. Our committee is still conducting investigation. What internal audit has done, what audit and supervisory committee has done and what is the special audit was, these are the related to the root cause analysis, we believe that our committee has exhausted the root cause analysis of such. The second question or the first point in the original questions, probably I need to ask Mr. Inoue to respond to that. This is just a part of the fraudulent accounting, in addition to them, there may be other fraudulent accounting. this is just a part of the fraudulent accounting in addition to them there may be other fraudulent accounting Our committee is still conducting investigation. our committee is still conducting investigation What internal audit has done, what audit and supervisory committee has done and what is the special audit was, these are the related to the root cause analysis, we believe that our committee has exhausted the root cause analysis of such. what internal audit has done what audit and supervisory committee has done and what is the special audit was these are the related to the root cause analysis we believe that our committee has exhausted the root cause analysis of such The second question or the first point in the original questions, probably I need to ask Mr. Inoue to respond to that. the second question or the first point in the original questions probably i need to ask mr inoue to respond to that

Speaker 35: Thank you very much. This amount of ¥139.7 billion may change or not. Our investigation is still ongoing, just one week or another would be suffice to complete our investigation. Thank you very much. thank you very much This amount of ¥139.7 billion may change or not. this amount of ¥139.7 billion may change or not Our investigation is still ongoing, just one week or another would be suffice to complete our investigation. our investigation is still ongoing just one week or another would be suffice to complete our investigation I myself cannot say it clearly. We have to wait 'til investigation completion. There may be the further negative impact onto the net assets. How much will it be? I cannot say it right now. Please understand the following regarding the seventh impact onto the consolidated financial statements. Probably, usually, you'd like to see the impact for each fiscal year. What we got this time is now FY 2025, the end of June, as of the end of June 2025. That is a timing of calculating the impact onto the net assets in order to disclose and publish this report. We have completed the root cause analysis. We have confirmed almost all facts. Now, the committee believe that it's better to share some numbers, although it's still working in process. I myself cannot say it clearly. i myself cannot say it clearly We have to wait 'til investigation completion. we have to wait 'til investigation completion There may be the further negative impact onto the net assets. there may be the further negative impact onto the net assets How much will it be? how much will it be I cannot say it right now. i cannot say it right now Please understand the following regarding the seventh impact onto the consolidated financial statements. please understand the following regarding the seventh impact onto the consolidated financial statements Probably, usually, you'd like to see the impact for each fiscal year. probably usually you'd like to see the impact for each fiscal year What we got this time is now FY 2025, the end of June, as of the end of June 2025. what we got this time is now fy 2025 the end of june as of the end of june 2025 That is a timing of calculating the impact onto the net assets in order to disclose and publish this report. that is a timing of calculating the impact onto the net assets in order to disclose and publish this report We have completed the root cause analysis. we have completed the root cause analysis We have confirmed almost all facts. we have confirmed almost all facts Now, the committee believe that it's better to share some numbers, although it's still working in process. now the committee believe that it's better to share some numbers although it's still working in process However, we believe it's better for us to share some numbers, and therefore, it's not a number for each year that we'd like to share the latest number. That is ¥139.7 billion as of June of 2025. That's why from now on, we'd like to finalize the number for each year. However, we believe it's better for us to share some numbers, and therefore, it's not a number for each year that we'd like to share the latest number. however we believe it's better for us to share some numbers and therefore it's not a number for each year that we'd like to share the latest number That is ¥ 139.7 billion as of June of 2025. that is ¥ 139.7 billion as of june of 2025 That's why from now on, we'd like to finalize the number for each year. that's why from now on we'd like to finalize the number for each year There are some deferrable. However, as a result of the investigation, we may see some deferred numbers. However, we have to wait till the investigation completes. Once we complete the investigation, we'd like to share the number. Most important point is that now, what is the amount of the fraudulent accounting for each year? We have to clarify the number for each year. That's why we needed to investigate the matters more. There are some deferrable. there are some deferrable However, as a result of the investigation, we may see some deferred numbers. however as a result of the investigation we may see some deferred numbers However, we have to wait till the investigation completes. however we have to wait till the investigation completes Once we complete the investigation, we'd like to share the number. once we complete the investigation we'd like to share the number Most important point is that now, what is the amount of the fraudulent accounting for each year? most important point is that now what is the amount of the fraudulent accounting for each year We have to clarify the number for each year. we have to clarify the number for each year That's why we needed to investigate the matters more. that's why we needed to investigate the matters more

Speaker 5: How many years do you go back in time when you do investigate? How many years do you go back in time when you do investigate? how many years do you go back in time when you do investigate

Speaker 7: It's from 2020 fiscal year till 2024 fiscal year. Plus our first quarter of 2025 fiscal year. Five years and three months, actually. The investigation has spanned over six months, and your numbers are yet to be finalized. Does that mean that Nidec does not have enough information or documents? Or what... Would it be because of a lack of appropriate personnel at accounting or financial departments? Let me answer the question once again. There are quite a few factors involved in here. If I may give you some information. As you can see in the investigation report, we conducted digital forensics, questionnaire, interviews, hotlines. We used all of these methods to understand what issues were. There are quite a few issues we found. It's a huge number of issues we found, actually. It's from 2020 fiscal year till 2024 fiscal year. it's from 2020 fiscal year till 2024 fiscal year Plus our first quarter of 2025 fiscal year. plus our first quarter of 2025 fiscal year Five years and three months, actually. five years and three months actually The investigation has spanned over six months, and your numbers are yet to be finalized. the investigation has spanned over six months and your numbers are yet to be finalized Does that mean that Nidec does not have enough information or documents? does that mean that nidec does not have enough information or documents Or what... or what Would it be because of a lack of appropriate personnel at accounting or financial departments? would it be because of a lack of appropriate personnel at accounting or financial departments Let me answer the question once again. let me answer the question once again There are quite a few factors involved in here. there are quite a few factors involved in here If I may give you some information. if i may give you some information As you can see in the investigation report, we conducted digital forensics, questionnaire, interviews, hotlines. as you can see in the investigation report we conducted digital forensics questionnaire interviews hotlines We used all of these methods to understand what issues were. we used all of these methods to understand what issues were There are quite a few issues we found. there are quite a few issues we found It's a huge number of issues we found, actually. it's a huge number of issues we found actually We at the committee checked all of these issues one by one, and some issues were truly terrible. We had to cover all over the world. Issues all over the world. It was difficult for us to be able to handle all of these alone. We recommended the voluntary accounting inspection. That's the approach we took. We cover all the CFOs, accounting GMs, to go back over the past six fiscal years, starting from 2019 of... They have to cover all of the six fiscal years to check for any problems or misconducts that they were able to find. In order to help them, we found various method schemes for misconducts in inventory assets. For example, they're overestimating the quantity or the amounts. We at the committee checked all of these issues one by one, and some issues were truly terrible. we at the committee checked all of these issues one by one and some issues were truly terrible We had to cover all over the world. we had to cover all over the world Issues all over the world. issues all over the world It was difficult for us to be able to handle all of these alone. it was difficult for us to be able to handle all of these alone We recommended the voluntary accounting inspection. we recommended the voluntary accounting inspection That's the approach we took. that's the approach we took We cover all the CFOs, accounting GMs, to go back over the past six fiscal years, starting from 2019 of... we cover all the cfos accounting gms to go back over the past six fiscal years starting from 2019 of They have to cover all of the six fiscal years to check for any problems or misconducts that they were able to find. they have to cover all of the six fiscal years to check for any problems or misconducts that they were able to find In order to help them, we found various method schemes for misconducts in inventory assets. in order to help them we found various method schemes for misconducts in inventory assets For example, they're overestimating the quantity or the amounts. for example they're overestimating the quantity or the amounts All of these, the schemes have to be covered, we need to come up with a checklist to cover all the related affiliates as well as subsidiaries around the world. No one would trust you if you could do it, everything yourself. You need to come up with evidence. We had these people provide us with evidence from the past. That way helped us to understand various relevant matters. We had the cross-checking method introduced as well. Our company's CFO or accounting GM were checked by equally experienced accounting personnel from another organization. We did this cross-checking at all these different business bases all over the world. This process is almost over, and we have edited more than 1,000 issues. Cross-checking is still ongoing. All of these, the schemes have to be covered, we need to come up with a checklist to cover all the related affiliates as well as subsidiaries around the world. all of these the schemes have to be covered we need to come up with a checklist to cover all the related affiliates as well as subsidiaries around the world No one would trust you if you could do it, everything yourself. no one would trust you if you could do it everything yourself You need to come up with evidence. you need to come up with evidence We had these people provide us with evidence from the past. we had these people provide us with evidence from the past That way helped us to understand various relevant matters. that way helped us to understand various relevant matters We had the cross-checking method introduced as well. we had the cross-checking method introduced as well Our company's CFO or accounting GM were checked by equally experienced accounting personnel from another organization. our company's cfo or accounting gm were checked by equally experienced accounting personnel from another organization We did this cross-checking at all these different business bases all over the world. we did this cross-checking at all these different business bases all over the world This process is almost over, and we have edited more than 1,000 issues. this process is almost over and we have edited more than 1,000 issues Cross-checking is still ongoing. cross-checking is still ongoing There are some 10% to 15% of the entire business bases that are yet to be finished with this approach. Nidec head office is supporting, well, we're getting support from outside experts, and these experts need to check evidence as well. There's a triple checking method we have employed. We, the third-party committee, examined the results of all of this checking. It was huge amount of volume we had to cover, and schemes were various. It had to go through various people's eyes to understand the truth. This is why it took as long as six months or even longer. There are some 10% to 15% of the entire business bases that are yet to be finished with this approach. there are some 10% to 15% of the entire business bases that are yet to be finished with this approach Nidec head office is supporting, well, we're getting support from outside experts, and these experts need to check evidence as well. nidec head office is supporting well we're getting support from outside experts and these experts need to check evidence as well There's a triple checking method we have employed. there's a triple checking method we have employed We, the third-party committee, examined the results of all of this checking. we the third-party committee examined the results of all of this checking It was huge amount of volume we had to cover, and schemes were various. it was huge amount of volume we had to cover and schemes were various It had to go through various people's eyes to understand the truth. it had to go through various people's eyes to understand the truth This is why it took as long as six months or even longer. this is why it took as long as six months or even longer

Speaker 5: Thank you very much for explanation. Thank you very much for explanation. thank you very much for explanation

Speaker 21: Thank you.I would like to cover questions from as many people as possible. One question per person, please. The person over there, wearing a pink shirt. Thank you. thank you I would like to cover questions from as many people as possible. i would like to cover questions from as many people as possible One question per person, please. one question per person please The person over there, wearing a pink shirt. the person over there wearing a pink shirt

Speaker 3: This is Chikao of Nikkei Cross Tech. I would like to ask a question regarding Mr. Nagamori. Power harassing management, it was very infamous from the past, around a long time ago. That person was very strict about achieving a target from the very beginning and the foundation of Nidec. Since approximately when this misconduct started taking place? Mr. Nagamori's strictness was shifted into a misconduct-related approach. What would you say would be the timing? This is Chikao of Nikkei Cross Tech. this is chikao of nikkei cross tech I would like to ask a question regarding Mr. Nagamori. i would like to ask a question regarding mr nagamori Power harassing management, it was very infamous from the past, around a long time ago. power harassing management it was very infamous from the past around a long time ago That person was very strict about achieving a target from the very beginning and the foundation of Nidec. that person was very strict about achieving a target from the very beginning and the foundation of nidec Since approximately when this misconduct started taking place? since approximately when this misconduct started taking place Mr. Nagamori's strictness was shifted into a misconduct-related approach. mr nagamori's strictness was shifted into a misconduct-related approach What would you say would be the timing? what would you say would be the timing

Speaker 8: Thank you very much for your question. To give you a conclusion first. We couldn't find out exactly when this misconduct started. Still, at least we can say that, 2020s or even 2012 or even 2013, even around that time, ¥10 billion orstarted. so of negative legacies existed. The facts were checked or confirmed 'cause I believe that's when as the accounting misconducts were being conducted back then. Mr. Nagamori himself in a hearing session with us, told us as follows. Mr. Nagamori himself liked his so-called hands-on approach, according to Mr. Nagamori himself. His approach, according to himself, was not really perfect enough. In the recent years that we have checked, I believe his hands-on approach was insufficient. The business targets were decided based on shareholders' perspective. Because of that, these targets were unrealistic. Thank you very much for your question. thank you very much for your question To give you a conclusion first. We couldn't find out exactly when this misconduct started. to give you a conclusion first. we couldn't find out exactly when this misconduct started Still, at least we can say that, 2020s or even 2012 or even 2013, even around that time, ¥10 billion orstarted. so of negative legacies existed. still at least we can say that 2020s or even 2012 or even 2013 even around that time ¥10 billion orstarted so of negative legacies existed The facts were checked or confirmed 'cause I believe that's when as the accounting misconducts were being conducted back then. the facts were checked or confirmed 'cause i believe that's when as the accounting misconducts were being conducted back then Mr. Nagamori himself in a hearing session with us, told us as follows. mr nagamori himself in a hearing session with us told us as follows Mr. Nagamori himself liked his so-called hands-on approach, according to Mr. Nagamori himself. mr nagamori himself liked his so-called hands-on approach according to mr nagamori himself His approach, according to himself, was not really perfect enough. his approach according to himself was not really perfect enough In the recent years that we have checked, I believe his hands-on approach was insufficient. in the recent years that we have checked i believe his hands-on approach was insufficient The business targets were decided based on shareholders' perspective. the business targets were decided based on shareholders' perspective Because of that, these targets were unrealistic. because of that these targets were unrealistic

Speaker 7: It was unavoidable for such unreasonable targets to be created, and that is what I could say to your question. When the sales exceeded ¥1 trillion, for example, when the company launched the E-Axle business in 2020 fiscal year or so, he started explaining in a very large blueprint, in my impression. How would you say to those situation events? With respect to financial impairment, there was a huge impairment. That's a fact that happened. When it comes to accounting misconduct, I believe that occurred far before such event took place. This is something that I've mentioned in our investigation report. Mr. Nagamori himself were talking about achieving the sales target. It was ¥3 trillion or even more. It was unavoidable for such unreasonable targets to be created, and that is what I could say to your question. it was unavoidable for such unreasonable targets to be created and that is what i could say to your question When the sales exceeded ¥ 1 trillion, for example, when the company launched the E-Axle business in 2020 fiscal year or so, he started explaining in a very large blueprint, in my impression. when the sales exceeded ¥ 1 trillion for example when the company launched the e-axle business in 2020 fiscal year or so he started explaining in a very large blueprint in my impression How would you say to those situation events? how would you say to those situation events With respect to financial impairment, there was a huge impairment. with respect to financial impairment there was a huge impairment That's a fact that happened. that's a fact that happened When it comes to accounting misconduct, I believe that occurred far before such event took place. when it comes to accounting misconduct i believe that occurred far before such event took place This is something that I've mentioned in our investigation report. this is something that i've mentioned in our investigation report Mr. Nagamori himself were talking about achieving the sales target. mr nagamori himself were talking about achieving the sales target It was ¥3 trillion or even more. it was ¥3 trillion or even more Mr.Nagamori was around the 40th anniversary of the company. I believe he probably started saying something his company could not achieve. Is that Mr. Nagamori's own words? That is correct. In our interview with him, he said that. He knew he was reaching the target. He didn't say the exact words, but he was feeling that way. It's not exactly related to the accounting misconduct themselves. It wasn't that there was a certain trigger for all the accounting misconducts. There was excessie pressure for people to achieve very excessively high targets. Under the such circumstances, a misconducts occurred. Thank you. Please. Mr. Nagamori was around the 40th anniversary of the company. mr nagamori was around the 40th anniversary of the company I believe he probably started saying something his company could not achieve. i believe he probably started saying something his company could not achieve Is that Mr. Nagamori's own words? is that mr nagamori's own words That is correct. that is correct In our interview with him, he said that. in our interview with him he said that He knew he was reaching the target. he knew he was reaching the target He didn't say the exact words, but he was feeling that way. he didn't say the exact words but he was feeling that way It's not exactly related to the accounting misconduct themselves. it's not exactly related to the accounting misconduct themselves It wasn't that there was a certain trigger for all the accounting misconducts. it wasn't that there was a certain trigger for all the accounting misconducts There was excessie pressure for people to achieve very excessively high targets. there was excessie pressure for people to achieve very excessively high targets Under the such circumstances, a misconducts occurred. under the such circumstances a misconducts occurred Thank you. thank you Please. please

Speaker 16: This is Shirai, member of the committee. I would like to add some points to Mr. Hirao's point. During the company's 40th anniversary. Page 40 is where this fact is mentioned. Around 2023, Nidec was 40 years old. He started thinking that he was saying something that is rather unreachable as a company. This is Shirai, member of the committee. this is shirai member of the committee I would like to add some points to Mr. Hirao's point. i would like to add some points to mr hirao's point During the company's 40th anniversary . during the company's 40th anniversary Page 40 is where this fact is mentioned. page 40 is where this fact is mentioned Around 2023, Nidec was 40 years old. around 2023 nidec was 40 years old He started thinking that he was saying something that is rather unreachable as a company. he started thinking that he was saying something that is rather unreachable as a company

Speaker 21: Thank you. Any other questions? Okay. On that line, the person fourth right from the top. Thank you. thank you Any other questions? any other questions Okay. okay On that line, the person fourth right from the top. on that line the person fourth right from the top

Speaker 34: This is Kanai with Yomiuri newspaper. Thank you very much for your explanation. In your explanation, you said Mr. Nagamori, Kishida-san, Mr. Kobe. Mr. Kobe, Mr. Nagamori, Mr. Kishida weren't really leading these negative efforts, but CFO related organizations were in charge of those problematic issues. Some people thought about these manipulating methods. What layer of people came up with such methods? Were these people able to come up with such methods after being told of such methods by other people? This is Kanai with Yomiuri newspaper. this is kanai with yomiuri newspaper Thank you very much for your explanation. thank you very much for your explanation In your explanation, you said Mr. Nagamori, Kishida-san, Mr. Kobe. in your explanation you said mr nagamori kishida-san mr kobe Mr. Kobe, Mr. Nagamori, Mr. Kishida weren't really leading these negative efforts, but CFO related organizations were in charge of those problematic issues. mr kobe mr nagamori mr kishida weren't really leading these negative efforts but cfo related organizations were in charge of those problematic issues Some people thought about these manipulating methods. some people thought about these manipulating methods What layer of people came up with such methods? what layer of people came up with such methods Were these people able to come up with such methods after being told of such methods by other people? were these people able to come up with such methods after being told of such methods by other people

Speaker 7: We have identified various schemes at different timings. If you take a look at the document, we have 12 different cases. These people are very various. These people vary. A CFO of a subsidiary, and after giving approval from the subsidiary's president, he came up with the scheme for misconducts in one case. In another case, a head office's accounting personnel led such efforts. As a background, people were forced to achieve the targets. The subsidiaries were so forced to achieve their own targets. CFOs of head office, they need to achieve their consolidated targets of the company. Head office's accounting personnel try to help subsidiaries achieve their targets based on a conversation between the head office and its subsidiaries. There are quite a few variations. We have identified various schemes at different timings. we have identified various schemes at different timings If you take a look at the document, we have 12 different cases. if you take a look at the document we have 12 different cases These people are very various. these people are very various These people vary. these people vary A CFO of a subsidiary, and after giving approval from the subsidiary's president, he came up with the scheme for misconducts in one case. a cfo of a subsidiary and after giving approval from the subsidiary's president he came up with the scheme for misconducts in one case In another case, a head office's accounting personnel led such efforts. in another case a head office's accounting personnel led such efforts As a background, people were forced to achieve the targets. as a background people were forced to achieve the targets The subsidiaries were so forced to achieve their own targets. the subsidiaries were so forced to achieve their own targets CFOs of head office, they need to achieve their consolidated targets of the company. cfos of head office they need to achieve their consolidated targets of the company Head office's accounting personnel try to help subsidiaries achieve their targets based on a conversation between the head office and its subsidiaries. head office's accounting personnel try to help subsidiaries achieve their targets based on a conversation between the head office and its subsidiaries There are quite a few variations. there are quite a few variations It's all a part of the same background. You have a CFO of the head office, you have the executives of subsidiary, related group companies, and other personnel concerned were involved in this misconduct in many cases, in my opinion. It's all a part of the same background. it's all a part of the same background You have a CFO of the head office, you have the executives of subsidiary, related group companies, and other personnel concerned were involved in this misconduct in many cases, in my opinion. you have a cfo of the head office you have the executives of subsidiary related group companies and other personnel concerned were involved in this misconduct in many cases in my opinion

Speaker 21: Any other questions from anyone? Okay. The person wearing a cap or hat, the fifth line from the top. Any other questions from anyone? any other questions from anyone Okay. okay The person wearing a cap or hat, the fifth line from the top. the person wearing a cap or hat the fifth line from the top

Speaker 27: This is Miyajima of Monthly FACTA magazine. Thank you very much for your efforts. Thank you. The question that I ask you the most is about the internal investigation. Mr. Nagamori was never interviewed internally. Here, you have, I would say, interviewed five to six times with him. How frequently did he accept an interview request from him? He himself says that he himself was to blame, but what type of statement did he make to your committee? Did he really apologize truly from the bottom of his heart? Did he give any instructions? This is Miyajima of Monthly FACTA magazine. this is miyajima of monthly facta magazine Thank you very much for your efforts. thank you very much for your efforts Thank you. thank you The question that I ask you the most is about the internal investigation. the question that i ask you the most is about the internal investigation Mr. Nagamori was never interviewed internally. mr nagamori was never interviewed internally Here, you have, I would say, interviewed five to six times with him. here you have i would say interviewed five to six times with him How frequently did he accept an interview request from him? how frequently did he accept an interview request from him He himself says that he himself was to blame, but what type of statement did he make to your committee? he himself says that he himself was to blame but what type of statement did he make to your committee Did he really apologize truly from the bottom of his heart? did he really apologize truly from the bottom of his heart Did he give any instructions? did he give any instructions

Speaker 7: He says there's no instruction made from him, but he says forensics, et cetera. There is no live voice or opinions from him. It's like the groups of wolves as well as sheep. you know, each group says various things, shouted various things, a royal way of business managements, et cetera. He says there's no instruction made from him, but he says forensics, et cetera. he says there's no instruction made from him but he says forensics et cetera There is no live voice or opinions from him. there is no live voice or opinions from him It's like the groups of wolves as well as sheep. you know, each group says various things, shouted various things, a royal way of business managements, et cetera. it's like the groups of wolves as well as sheep you know each group says various things shouted various things a royal way of business managements et cetera

Speaker 27: Is it true that there was no instructions? My people knew that what results were going to be created as a result of such instructions. Who is going to be responsible, I wonder. In that regard, I can see, only see the two different of groups, sheeps, sheep and wolves. It's not about the forensics. We like to know all the words of the true words spoken by Mr.Nagamori. Is it true that there was no instructions? is it true that there was no instructions My people knew that what results were going to be created as a result of such instructions. my people knew that what results were going to be created as a result of such instructions Who is going to be responsible, I wonder. who is going to be responsible i wonder In that regard, I can see, only see the two different of groups, sheeps, sheep and wolves. in that regard i can see only see the two different of groups sheeps sheep and wolves It's not about the forensics. it's not about the forensics We like to know all the words of the true words spoken by Mr. Nagamori. we like to know all the words of the true words spoken by mr nagamori I believe shareholders agreed with me. Our media are, we, the media, are to blame, of course. You are the third-party committee. I'm not sure about your contractual terms with the company, but you need to clarify the truth about Mr. Nagamori. Otherwise, this third-party committee will be meaningless in my true opinion. What do you think?Thank you very much for your honest opinion in advance. I believe shareholders agreed with me. i believe shareholders agreed with me Our media are, we, the media, are to blame, of course. our media are we the media are to blame of course You are the third-party committee. you are the third-party committee I'm not sure about your contractual terms with the company, but you need to clarify the truth about Mr. Nagamori. i'm not sure about your contractual terms with the company but you need to clarify the truth about mr nagamori Otherwise, this third-party committee will be meaningless in my true opinion. otherwise this third-party committee will be meaningless in my true opinion What do you think? what do you think Thank you very much for your honest opinion in advance. thank you very much for your honest opinion in advance

Speaker 35: Thank you very much for your question. You definitely have a point. I appreciate your candid opinion on this topic. I personally think that those words from Mr. Nagamori, raw voices from Mr. Nagamori, I think it's worth sharing. How much interviews have we conducted? We can't share exactly what date, but frequency-wise, I think I'm correct. I met with him. We met with him four to five times, and we spend two to three hours each time. I am not in position to disclose all the exact words and comments shared by Mr. Nagamori. Everything that we need to disclose are within the report. That's everything, nothing more. Regarding your point about sheep versus wolf, I think you have a point. Thank you very much for your question. thank you very much for your question You definitely have a point. you definitely have a point I appreciate your candid opinion on this topic. i appreciate your candid opinion on this topic I personally think that those words from Mr. Nagamori, raw voices from Mr. Nagamori, I think it's worth sharing. i personally think that those words from mr nagamori raw voices from mr nagamori i think it's worth sharing How much interviews have we conducted? how much interviews have we conducted We can't share exactly what date, but frequency-wise, I think I'm correct. we can't share exactly what date but frequency-wise i think i'm correct I met with him. i met with him We met with him four to five times, and we spend two to three hours each time. we met with him four to five times and we spend two to three hours each time I am not in position to disclose all the exact words and comments shared by Mr. Nagamori. i am not in position to disclose all the exact words and comments shared by mr nagamori Everything that we need to disclose are within the report. everything that we need to disclose are within the report That's everything, nothing more. that's everything nothing more Regarding your point about sheep versus wolf, I think you have a point. regarding your point about sheep versus wolf i think you have a point Mr.Nagamori talking about that, traditional accounting, traditional management, mainstream, that is true. He really wanted to have the proper management of that committee, I am not, and nobody in this committee members are in a position to deny that. It is true that he was in part acknowledging accounting fraud, and that originated from enormous pressure, unrealistic business target put up by Nagamori-san. I'm sure, including President Miyajima and the media, has expressed their thoughts, and I do understand your sentiment from that question, too. I do recognize there are various views against the report that we have compiled as well. Thank you very much. We have a limited time for this session because there will be additional press conference by the company. Mr. Nagamori talking about that, traditional accounting, traditional management, mainstream, that is true. mr nagamori talking about that traditional accounting traditional management mainstream that is true He really wanted to have the proper management of that committee, I am not, and nobody in this committee members are in a position to deny that. he really wanted to have the proper management of that committee i am not and nobody in this committee members are in a position to deny that It is true that he was in part acknowledging accounting fraud, and that originated from enormous pressure, unrealistic business target put up by Nagamori-san. it is true that he was in part acknowledging accounting fraud and that originated from enormous pressure unrealistic business target put up by nagamori-san I'm sure, including President Miyajima and the media, has expressed their thoughts, and I do understand your sentiment from that question, too. i'm sure including president miyajima and the media has expressed their thoughts and i do understand your sentiment from that question too I do recognize there are various views against the report that we have compiled as well. i do recognize there are various views against the report that we have compiled as well Thank you very much. thank you very much We have a limited time for this session because there will be additional press conference by the company. we have a limited time for this session because there will be additional press conference by the company I would like to take two more questions, please. I would like to take two more questions, please. i would like to take two more questions please Sei from Asahi Newspapers. Sei from Asahi Newspapers. sei from asahi newspapers

Speaker 26: I just would like to ask a question regarding to confirm. You acknowledge the accounting fraud from 2012 time, 2013 times. Is my understanding correct? I don't want to misread anything. In our survey process, there was some story about 2013. If I say starting from 2013, that would be misleading. You can say that from the past, from 2013, that is just simple wrong. That it was one episode from one of the subsidiary, I'm sure what they were shared was true, that's why I picked up in my report. That doesn't mean that accounting misconduct happened from 2012, 2013. I just would like to ask a question regarding to confirm. i just would like to ask a question regarding to confirm You acknowledge the accounting fraud from 2012 time, 2013 times. you acknowledge the accounting fraud from 2012 time 2013 times Is my understanding correct? is my understanding correct I don't want to misread anything. i don't want to misread anything In our survey process, there was some story about 2013. in our survey process there was some story about 2013 If I say starting from 2013, that would be misleading. if i say starting from 2013 that would be misleading You can say that from the past, from 2013, that is just simple wrong. you can say that from the past from 2013 that is just simple wrong That it was one episode from one of the subsidiary, I'm sure what they were shared was true, that's why I picked up in my report. that it was one episode from one of the subsidiary i'm sure what they were shared was true that's why i picked up in my report That doesn't mean that accounting misconduct happened from 2012, 2013. that doesn't mean that accounting misconduct happened from 2012 2013 Your research scope is, investigation scope is 2020 onwards, you believe that this kind of improper practice happened for quite some time, correct? Our survey period started from fiscal year 2020. Thank you. Okay. You don't need to share the detailed numbers, exact numbers, but, number of misconduct, how many cases were you aware of as the third-party committee? Your research scope is, investigation scope is 2020 onwards, you believe that this kind of improper practice happened for quite some time, correct? your research scope is investigation scope is 2020 onwards you believe that this kind of improper practice happened for quite some time correct Our survey period started from fiscal year 2020. our survey period started from fiscal year 2020 Thank you. thank you Okay. okay You don't need to share the detailed numbers, exact numbers, but, number of misconduct, how many cases were you aware of as the third-party committee? you don't need to share the detailed numbers exact numbers but number of misconduct how many cases were you aware of as the third-party committee

Speaker 35: Are you talking about dozens or hundreds or possibly thousands? That level's fine, ballpark. Regarding number of cases of misconduct, it's quite difficult even for us to grasp. The reason for that is because we've been asking self-check by all the stakeholders. Are you talking about dozens or hundreds or possibly thousands? are you talking about dozens or hundreds or possibly thousands That level's fine, ballpark. that level's fine ballpark Regarding number of cases of misconduct, it's quite difficult even for us to grasp. regarding number of cases of misconduct it's quite difficult even for us to grasp The reason for that is because we've been asking self-check by all the stakeholders. the reason for that is because we've been asking self-check by all the stakeholders What happens is that once the report's filed, there needs to be certain corrections regarding, for example, in journaling process, in that entries like ABC, on the debt size may need to be recorded separately. Because of things like this, we are unable to calculate the number of cases at this time. Furthermore, I don't think we'll be able to get an accurate picture of it either. Regarding your questions, I'm sure the number of misconduct is over 1,000. Regarding the misrepresentation of the business performance, false statements about business performance, did it happen? What do you mean? I would like to have an exact definition of false reporting of business performance. What happens is that once the report's filed, there needs to be certain corrections regarding, for example, in journaling process, in that entries like ABC, on the debt size may need to be recorded separately. what happens is that once the report's filed there needs to be certain corrections regarding for example in journaling process in that entries like abc on the debt size may need to be recorded separately Because of things like this, we are unable to calculate the number of cases at this time. because of things like this we are unable to calculate the number of cases at this time Furthermore, I don't think we'll be able to get an accurate picture of it either. furthermore i don't think we'll be able to get an accurate picture of it either Regarding your questions, I'm sure the number of misconduct is over 1,000. regarding your questions i'm sure the number of misconduct is over 1,000 Regarding the misrepresentation of the business performance, false statements about business performance, did it happen? regarding the misrepresentation of the business performance false statements about business performance did it happen What do you mean? what do you mean I would like to have an exact definition of false reporting of business performance. i would like to have an exact definition of false reporting of business performance For example, in official performance figures that are written in, let's say, securities report, Yūho Report. Those supposed to be official. I think if there was a false representation, they got to be facing administrative or criminal penalties, I believe. You're talking about the false statements in the U-Report security reports. That did happen. That's a fact. There can be some penalties. I am not sure about what kind of disciplinary action that they will be facing. For example, in official performance figures that are written in, let's say, securities report, Yūho Report. for example in official performance figures that are written in let's say securities report yūho report Those supposed to be official. those supposed to be official I think if there was a false representation, they got to be facing administrative or criminal penalties, I believe. i think if there was a false representation they got to be facing administrative or criminal penalties i believe You're talking about the false statements in the U-Report security reports. you're talking about the false statements in the u-report security reports That did happen. that did happen That's a fact. that's a fact There can be some penalties. there can be some penalties I am not sure about what kind of disciplinary action that they will be facing. i am not sure about what kind of disciplinary action that they will be facing

Speaker 26: Okay, understand. Okay, understand. okay understand

Speaker 35: I'd like to take the next one as the last one. Person who is sitting way back in the room. Venue, please. I'd like to take the next one as the last one. i'd like to take the next one as the last one Person who is sitting way back in the room. person who is sitting way back in the room Venue, please. venue please

Speaker 41: Thank you for taking my questions. I am from Nikkan Jidosha Shimbun. Nagamori-san was considered to be the expert in M&A acquisitions. He has acquired various businesses inside Japan and outside.In that process, PMI activities, integrating all the operations, including governance and also treasury, financial accounting work too. That balance perhaps was not well done. Do you think that the failures in the PMI effort is a part of the reason for this incident? Did you hear anything about that from Nagamori-san himself? If you could please share episode, that'd be great. Thank you for taking my questions. thank you for taking my questions I am from Nikkan Jidosha Shimbun. i am from nikkan jidosha shimbun Nagamori-san was considered to be the expert in M&A acquisitions. nagamori-san was considered to be the expert in m&a acquisitions He has acquired various businesses inside Japan and outside. he has acquired various businesses inside japan and outside In that process, PMI activities, integrating all the operations, including governance and also treasury, financial accounting work too. in that process pmi activities integrating all the operations including governance and also treasury financial accounting work too That balance perhaps was not well done. that balance perhaps was not well done Do you think that the failures in the PMI effort is a part of the reason for this incident? do you think that the failures in the pmi effort is a part of the reason for this incident Did you hear anything about that from Nagamori-san himself? did you hear anything about that from nagamori-san himself If you could please share episode, that'd be great. if you could please share episode that'd be great

Speaker 35: In that sense, we're not looking at this malpractice from the perspective of PMIs from accounting fraud. Because our perspective was conducting accounting fraud. I don't think we'll be able to answer your question 100% because the purpose of the report is different. Survey is different. This is a part of our report too. It's already publicized. In that sense, we're not looking at this malpractice from the perspective of PMIs from accounting fraud. in that sense we're not looking at this malpractice from the perspective of pmis from accounting fraud Because our perspective was conducting accounting fraud. because our perspective was conducting accounting fraud I don't think we'll be able to answer your question 100% because the purpose of the report is different. i don't think we'll be able to answer your question 100% because the purpose of the report is different Survey is different. survey is different This is a part of our report too. this is a part of our report too It's already publicized. it's already publicized What he was adamant regarding subsidiary is to manage it the way he bought it. He's quite persistent in not doing scrap and rebuild of the businesses that they acquire-- what he acquired. That is the reason why Nidec has over 350 subsidiaries. Of course, they are doing sub-consolidation too. In the reporting entity units, the number would be less. The accounting practice is quite complex, and the business headquarter and subsidiaries are not connected apple to apple, so to speak. One subsidiaries are doing multiple different business units work. Those cases definitely exist. It leads to complexity in their accounting practice. That is not the core reason for this accounting fraud. I'm sorry, we are focusing quite a bit on accounting department. What he was adamant regarding subsidiary is to manage it the way he bought it. what he was adamant regarding subsidiary is to manage it the way he bought it He's quite persistent in not doing scrap and rebuild of the businesses that they acquire-- what he acquired. he's quite persistent in not doing scrap and rebuild of the businesses that they acquire-- what he acquired That is the reason why Nidec has over 350 subsidiaries. that is the reason why nidec has over 350 subsidiaries Of course, they are doing sub-consolidation too. of course they are doing sub-consolidation too In the reporting entity units, the number would be less. in the reporting entity units the number would be less The accounting practice is quite complex, and the business headquarter and subsidiaries are not connected apple to apple, so to speak. the accounting practice is quite complex and the business headquarter and subsidiaries are not connected apple to apple so to speak One subsidiaries are doing multiple different business units work. one subsidiaries are doing multiple different business units work Those cases definitely exist. those cases definitely exist It leads to complexity in their accounting practice. it leads to complexity in their accounting practice That is not the core reason for this accounting fraud. that is not the core reason for this accounting fraud I'm sorry, we are focusing quite a bit on accounting department. i'm sorry we are focusing quite a bit on accounting department Regarding accounting department, doing work across the division, that is 1 improvement that is the 1 organization work that they can do. Sorry, I'm not directly answering to your question about the impact of PMI. Thank you. I'm sorry. You asked me about the number of cases, and I answered a little bit. I don't want to mislead anybody regarding the number of misfraud cases. If you could please refer to our full report, page 163, please. Regarding accounting department, doing work across the division, that is 1 improvement that is the 1 organization work that they can do. regarding accounting department doing work across the division that is 1 improvement that is the 1 organization work that they can do Sorry, I'm not directly answering to your question about the impact of PMI. sorry i'm not directly answering to your question about the impact of pmi Thank you. thank you I'm sorry. i'm sorry You asked me about the number of cases, and I answered a little bit. you asked me about the number of cases and i answered a little bit I don't want to mislead anybody regarding the number of misfraud cases. i don't want to mislead anybody regarding the number of misfraud cases If you could please refer to our full report, page 163, please. if you could please refer to our full report page 163 please Sorry, not 163. Please go to page 155, Chapter seven, regarding the impact of consolidated financial statement. This times ¥139.7 billion, and this is mispractice and also mistakes that are discovered in this self-check process. There is simple error in accounting. Error is not misconduct. It's not fraud. We don't want to add fraud with errors. I don't want to mislead you with a number of cases. I definitely like to have all the journalists refrain from referring to the number of fraud cases in your report. That's what I ask as an accountant as well. How would you see this situation? Sorry, not 163. sorry not 163 Please go to page 155, Chapter seven, regarding the impact of consolidated financial statement. please go to page 155 chapter seven regarding the impact of consolidated financial statement This times ¥ 139.7 billion, and this is mispractice and also mistakes that are discovered in this self-check process. this times ¥ 139.7 billion and this is mispractice and also mistakes that are discovered in this self-check process There is simple error in accounting. there is simple error in accounting Error is not misconduct. error is not misconduct It's not fraud. it's not fraud We don't want to add fraud with errors. we don't want to add fraud with errors I don't want to mislead you with a number of cases. i don't want to mislead you with a number of cases I definitely like to have all the journalists refrain from referring to the number of fraud cases in your report. i definitely like to have all the journalists refrain from referring to the number of fraud cases in your report That's what I ask as an accountant as well. that's what i ask as an accountant as well How would you see this situation? how would you see this situation Rather, I would like you to notice that this kind of mispractice fraud were happening at various different sites over multiple different system and fashions. From that, you can make your own assessment. It's not of one particular business unit or one particular country or the site. There's a segment information in page 163 too. There's a misconduct in the small motors, there's misconduct in group companies. 6, all 6 places, that practice were discovered. It's not a number of cases, it's a significant diversity. Okay, this concludes the third-party committee's press conference. Thank you very much. Rather, I would like you to notice that this kind of mispractice fraud were happening at various different sites over multiple different system and fashions. rather i would like you to notice that this kind of mispractice fraud were happening at various different sites over multiple different system and fashions From that, you can make your own assessment. from that you can make your own assessment It's not of one particular business unit or one particular country or the site. it's not of one particular business unit or one particular country or the site There's a segment information in page 163 too. there's a segment information in page 163 too There's a misconduct in the small motors, there's misconduct in group companies. 6, all 6 places, that practice were discovered. there's a misconduct in the small motors there's misconduct in group companies 6 all 6 places that practice were discovered It's not a number of cases, it's a significant diversity. it's not a number of cases it's a significant diversity Okay, this concludes the third-party committee's press conference. okay this concludes the third-party committee's press conference Thank you very much. thank you very much

Speaker 11: Now we would like to start the press conference. First, we would like to introduce to you our presenters, Mr. Mitsuya Kishida, the President and CEO of Nidec Corporation. Mr.Kazuho Nakagawa, the Vice President and Acting CFO of the company. Mr. Masayuki Iminagi, the Vice President and Chief Compliance Officer. I am Keita Watanabe of Nidec Corporation's Corporate Communication Department. In this presentation, first Mr. Kishida will give his opening remarks, followed by his presentation on the investigation report and our company's response. We like to have the question and answer session after that. Mr. Kishida, please start your opening remarks. Thank you. Now we would like to start the press conference. now we would like to start the press conference First, we would like to introduce to you our presenters, Mr. Mitsuya Kishida, the President and CEO of Nidec Corporation. first we would like to introduce to you our presenters mr mitsuya kishida the president and ceo of nidec corporation Mr. Kazuho Nakagawa, the Vice President and Acting CFO of the company. mr kazuho nakagawa the vice president and acting cfo of the company Mr. Masayuki Iminagi, the Vice President and Chief Compliance Officer. mr masayuki iminagi the vice president and chief compliance officer I am Keita Watanabe of Nidec Corporation's Corporate Communication Department. i am keita watanabe of nidec corporation's corporate communication department In this presentation, first Mr. Kishida will give his opening remarks, followed by his presentation on the investigation report and our company's response. in this presentation first mr kishida will give his opening remarks followed by his presentation on the investigation report and our company's response We like to have the question and answer session after that. we like to have the question and answer session after that Mr. Kishida, please start your opening remarks. mr kishida please start your opening remarks Thank you. thank you

Speaker 20: I am Mitsuya Kishida, the company's President and CEO. It was September the third of last year that we launched a third-party committee on a series of issues. For the following six-plus month period, the committee conducted objective and comprehensive investigations to identify those issues, root causes, make proposals for recurrence prevention purposes, et cetera. On February the 27th, which was last week, Nidec Corporation received the committee's initial investigation report. We are truly grateful to the members of the committees. As they explained the report in detail already, I will explain how Nidec will regard this report. The investigation revealed numbers of inappropriate accounting practices at many of the Nidec Group's business bases. I am Mitsuya Kishida, the company's President and CEO. i am mitsuya kishida the company's president and ceo It was September the third of last year that we launched a third-party committee on a series of issues. it was september the third of last year that we launched a third-party committee on a series of issues For the following six-plus month period, the committee conducted objective and comprehensive investigations to identify those issues, root causes, make proposals for recurrence prevention purposes, et cetera. for the following six-plus month period the committee conducted objective and comprehensive investigations to identify those issues root causes make proposals for recurrence prevention purposes et cetera On February the 27th, which was last week, Nidec Corporation received the committee's initial investigation report. on february the 27th which was last week nidec corporation received the committee's initial investigation report We are truly grateful to the members of the committees. we are truly grateful to the members of the committees As they explained the report in detail already, I will explain how Nidec will regard this report. as they explained the report in detail already i will explain how nidec will regard this report The investigation revealed numbers of inappropriate accounting practices at many of the Nidec Group's business bases. the investigation revealed numbers of inappropriate accounting practices at many of the nidec group's business bases The identified inappropriate accounting practices and errors will make a financial impact on our net assets by approximately ¥137.9 billion on Nidec's consolidated financial statement as of the end of fiscal 2025's first quarter. The aforementioned findings include inappropriate accounting practices were conducted based on unrealistic business targets and under excessive pressure to achieve them. The company's management could not correct the circumstances. Accounting and internal audit departments could not perform their check-and-balance functions. Further, employees submitted the wrong information and disclosed inaccurate financial statements to the auditing firm, acting insincerely to the shareholders and investors in the market. We take extremely seriously the fact that we caused such serious accounting misconduct. The identified inappropriate accounting practices and errors will make a financial impact on our net assets by approximately ¥ 137.9 billion on Nidec's consolidated financial statement as of the end of fiscal 2025's first quarter. the identified inappropriate accounting practices and errors will make a financial impact on our net assets by approximately ¥ 137.9 billion on nidec's consolidated financial statement as of the end of fiscal 2025's first quarter The aforementioned findings include inappropriate accounting practices were conducted based on unrealistic business targets and under excessive pressure to achieve them. the aforementioned findings include inappropriate accounting practices were conducted based on unrealistic business targets and under excessive pressure to achieve them The company's management could not correct the circumstances. the company's management could not correct the circumstances Accounting and internal audit departments could not perform their check-and-balance functions. accounting and internal audit departments could not perform their check-and-balance functions Further, employees submitted the wrong information and disclosed inaccurate financial statements to the auditing firm, acting insincerely to the shareholders and investors in the market. further employees submitted the wrong information and disclosed inaccurate financial statements to the auditing firm acting insincerely to the shareholders and investors in the market We take extremely seriously the fact that we caused such serious accounting misconduct. we take extremely seriously the fact that we caused such serious accounting misconduct To all people concerned, we deeply apologize about the fact that we disclosed inaccurate information and failed to meet expectations of shareholders, investors, and people of the market. The inappropriate accounting practices have been causing anxiety and trouble among our business partners, and that we have caused anxiety and trouble to society. To all of the people concerned, we deeply apologize. From the bottom of our hearts, we are truly sorry. To all people concerned, we deeply apologize about the fact that we disclosed inaccurate information and failed to meet expectations of shareholders, investors, and people of the market. to all people concerned we deeply apologize about the fact that we disclosed inaccurate information and failed to meet expectations of shareholders investors and people of the market The inappropriate accounting practices have been causing anxiety and trouble among our business partners, and that we have caused anxiety and trouble to society. the inappropriate accounting practices have been causing anxiety and trouble among our business partners and that we have caused anxiety and trouble to society To all of the people concerned, we deeply apologize. to all of the people concerned we deeply apologize From the bottom of our hearts, we are truly sorry. from the bottom of our hearts we are truly sorry

Speaker 8: Please allow the presenters to sit on their chairs. Mr. Kishida explains how Nidec will consider investigation report and the company's actions going forward. I would like to explain our response to the investigation report. Please take a look at this document. It was back in September 27, we received the actual report, and we did some masking and other adjustments. Please allow the presenters to sit on their chairs. please allow the presenters to sit on their chairs Mr. Kishida explains how Nidec will consider investigation report and the company's actions going forward. mr kishida explains how nidec will consider investigation report and the company's actions going forward I would like to explain our response to the investigation report. i would like to explain our response to the investigation report Please take a look at this document. please take a look at this document It was back in September 27, we received the actual report, and we did some masking and other adjustments. it was back in september 27 we received the actual report and we did some masking and other adjustments

Speaker 7: The investigation by the committee is still ongoing. We will continue to be fully cooperative and fully committed to cooperating with members of the committee. As soon as we receive the final version of the document, we will disclose its contents. The investigation is still ongoing. At many of our business bases, inappropriate accounting practices have been identified. An avoidance of recognizing valuation losses, avoidance of impairment losses based on the sales plans and low profitability of achievement. The impact on the consolidated net sales as of the end of first quarter of fiscal year 2025, resulting from the correction of misconduct and errors identified to date is approximately negative ¥139.7 billion. We extremely seriously take this fact. We will launch following appointments of our personnel. The investigation by the committee is still ongoing. the investigation by the committee is still ongoing We will continue to be fully cooperative and fully committed to cooperating with members of the committee. we will continue to be fully cooperative and fully committed to cooperating with members of the committee As soon as we receive the final version of the document, we will disclose its contents. as soon as we receive the final version of the document we will disclose its contents The investigation is still ongoing. the investigation is still ongoing At many of our business bases, inappropriate accounting practices have been identified. at many of our business bases inappropriate accounting practices have been identified An avoidance of recognizing valuation losses, avoidance of impairment losses based on the sales plans and low profitability of achievement. an avoidance of recognizing valuation losses avoidance of impairment losses based on the sales plans and low profitability of achievement The impact on the consolidated net sales as of the end of first quarter of fiscal year 2025, resulting from the correction of misconduct and errors identified to date is approximately negative ¥ 139.7 billion. the impact on the consolidated net sales as of the end of first quarter of fiscal year 2025 resulting from the correction of misconduct and errors identified to date is approximately negative ¥ 139.7 billion We extremely seriously take this fact. we extremely seriously take this fact We will launch following appointments of our personnel. we will launch following appointments of our personnel Please take out the middle section of this slide. I will remain committed to doing my very best to reforming Nidec. In order to have the current status of Special Alert Status lifted, we will do everything we can. I will return 100% of monthly base compensation until submission of the written confirmation of internal management system. As of today, March 3rd, Mr. Kobe, the Chairman, Mr. Kitao, Executive Vice President, Mr. Samura, Senior Vice President, Mr. Nishimoto, Executive Consultant, they have resigned from office as of today. In addition, First Senior Vice President, Valter Taranzano, has his job suspended, and his retirement process has started as of today. CPO, chief performance officer, will be abandoned as a position as of today. You can see the compensation will be reduced as follows beginning in March 2026. Please take out the middle section of this slide. please take out the middle section of this slide I will remain committed to doing my very best to reforming Nidec. i will remain committed to doing my very best to reforming nidec In order to have the current status of Special Alert Status lifted, we will do everything we can. in order to have the current status of special alert status lifted we will do everything we can I will return 100% of monthly base compensation until submission of the written confirmation of internal management system. i will return 100% of monthly base compensation until submission of the written confirmation of internal management system As of today, March 3rd, Mr. Kobe, the Chairman, Mr. Kitao, Executive Vice President, Mr. Samura, Senior Vice President, Mr. Nishimoto, Executive Consultant, they have resigned from office as of today. as of today march 3rd mr kobe the chairman mr kitao executive vice president mr samura senior vice president mr nishimoto executive consultant they have resigned from office as of today In addition, First Senior Vice President, Valter Taranzano, has his job suspended, and his retirement process has started as of today. in addition first senior vice president valter taranzano has his job suspended and his retirement process has started as of today CPO, chief performance officer, will be abandoned as a position as of today. cpo chief performance officer will be abandoned as a position as of today You can see the compensation will be reduced as follows beginning in March 2026. you can see the compensation will be reduced as follows beginning in march 2026 First, senior vice presidents, senior vice president and vice presidents, 50% of monthly base compensation for four months. With respect to the members of the board of directors, outside of board members, 30% of monthly base compensation for four months. Based on voluntary request, this compensation reduction will take place. Based on these personnel actions, as of the 1st of March and as of April 1st, there will be a major change to our personnel system. Based on the third-party committee's report and these personnel changes, all the business bases in and outside of Japan, we will make sure to make our company transparent, and we will rebuild Nidec. To be more specific, Michael Briggs will be in charge of ASM and MOAM business unit. Mr. First, senior vice presidents, senior vice president and vice presidents, 50% of monthly base compensation for four months. first senior vice presidents senior vice president and vice presidents 50% of monthly base compensation for four months With respect to the members of the board of directors, outside of board members, 30% of monthly base compensation for four months. with respect to the members of the board of directors outside of board members 30% of monthly base compensation for four months Based on voluntary request, this compensation reduction will take place. based on voluntary request this compensation reduction will take place Based on these personnel actions, as of the 1st of March and as of April 1st, there will be a major change to our personnel system. based on these personnel actions as of the 1st of march and as of april 1st there will be a major change to our personnel system Based on the third-party committee's report and these personnel changes, all the business bases in and outside of Japan, we will make sure to make our company transparent, and we will rebuild Nidec. based on the third-party committee's report and these personnel changes all the business bases in and outside of japan we will make sure to make our company transparent and we will rebuild nidec To be more specific, Michael Briggs will be in charge of ASM and MOAM business unit. to be more specific michael briggs will be in charge of asm and moam business unit Mr. mr Wada will be in charge of AMX business unit. We have the senior GM system. Some people will be promoted to the vice president's level from the level of senior GMs. This will be a one giant step for our bright future as a company. Wada will be in charge of AMX business unit. wada will be in charge of amx business unit We have the senior GM system. we have the senior gm system Some people will be promoted to the vice president's level from the level of senior GMs. some people will be promoted to the vice president's level from the level of senior gms This will be a one giant step for our bright future as a company. this will be a one giant step for our bright future as a company

Speaker 20: I, as a CEO, will take a strong leadership to unify this company. We need to regain trust from all of our stakeholders. As a company, we need to rebuild, fundamentally rebuild our governance system. I, as a CEO, will take a strong leadership to unify this company. i as a ceo will take a strong leadership to unify this company We need to regain trust from all of our stakeholders. we need to regain trust from all of our stakeholders As a company, we need to rebuild, fundamentally rebuild our governance system. as a company we need to rebuild fundamentally rebuild our governance system We will check the configuration of the board by inviting individuals with corporate management experience and accounting expertise. We will build a management oversight structure that combines professional expertise with diverse perspectives. We will establish a truly sufficient and a mandatory supervisory system. In this third-party committee's report, we have received some factual information. We will promptly establish the Responsibility Investigation Committee. We will target the current and former directors and executive officers. We will investigate whether they bear any legal responsibility, including whether they breached their duties in execution of their responsibilities. The timing of the committee's establishment and its overview will be promptly disclosed once determined. It was last year, at October the 30th, that we established a Nidec Corporate Reform Committee. We will check the configuration of the board by inviting individuals with corporate management experience and accounting expertise. we will check the configuration of the board by inviting individuals with corporate management experience and accounting expertise We will build a management oversight structure that combines professional expertise with diverse perspectives. we will build a management oversight structure that combines professional expertise with diverse perspectives We will establish a truly sufficient and a mandatory supervisory system. we will establish a truly sufficient and a mandatory supervisory system In this third-party committee's report, we have received some factual information. in this third-party committee's report we have received some factual information We will promptly establish the Responsibility Investigation Committee. we will promptly establish the responsibility investigation committee We will target the current and former directors and executive officers. we will target the current and former directors and executive officers We will investigate whether they bear any legal responsibility, including whether they breached their duties in execution of their responsibilities. we will investigate whether they bear any legal responsibility including whether they breached their duties in execution of their responsibilities The timing of the committee's establishment and its overview will be promptly disclosed once determined. the timing of the committee's establishment and its overview will be promptly disclosed once determined It was last year, at October the 30th, that we established a Nidec Corporate Reform Committee. it was last year at october the 30th that we established a nidec corporate reform committee Based on the improvement plan and the status reports, specific improvement measures are currently being reviewed and implemented. Based on the latest report from third-party committee, we are promoting highly effective measures to prevent a recurrence by making timely revisions to the improvement plan. With respect to restoring the market trust, we will complete the establishment of our internal control system and submit the written confirmation of internal management system to the Tokyo Stock Exchange. Here's our upcoming schedule, but before that, I would like to give you some more information here on this slide. As of fiscal year 2025, the first half and second half year, we will have no division, year-end division. Based on the improvement plan and the status reports, specific improvement measures are currently being reviewed and implemented. based on the improvement plan and the status reports specific improvement measures are currently being reviewed and implemented Based on the latest report from third-party committee, we are promoting highly effective measures to prevent a recurrence by making timely revisions to the improvement plan. based on the latest report from third-party committee we are promoting highly effective measures to prevent a recurrence by making timely revisions to the improvement plan With respect to restoring the market trust, we will complete the establishment of our internal control system and submit the written confirmation of internal management system to the Tokyo Stock Exchange. with respect to restoring the market trust we will complete the establishment of our internal control system and submit the written confirmation of internal management system to the tokyo stock exchange Here's our upcoming schedule, but before that, I would like to give you some more information here on this slide. here's our upcoming schedule but before that i would like to give you some more information here on this slide As of fiscal year 2025, the first half and second half year, we will have no division, year-end division. as of fiscal year 2025 the first half and second half year we will have no division year-end division The investigation is still ongoing based on the material impact, this, I believe, will be the right decision for us to make as a company. For us to be able to restart the division process, we will stay unified. Please go on to the next slide. Dividend will be provided in the... and hopefully... Please look at this document, the impairment losses. There is a possibility that additional impairment losses may need to be recognized as derivative impacts of downward revisions to past fiscal years, profits and losses based on the findings of the third-party committee. This information has been disclosed just today. Next slide, please. As of our business situation, I would like to give you a brief summary of that. The investigation is still ongoing based on the material impact, this, I believe, will be the right decision for us to make as a company. the investigation is still ongoing based on the material impact this i believe will be the right decision for us to make as a company For us to be able to restart the division process, we will stay unified. for us to be able to restart the division process we will stay unified Please go on to the next slide. please go on to the next slide Dividend will be provided in the... and hopefully... dividend will be provided in the and hopefully Please look at this document, the impairment losses. please look at this document the impairment losses There is a possibility that additional impairment losses may need to be recognized as derivative impacts of downward revisions to past fiscal years, profits and losses based on the findings of the third-party committee. there is a possibility that additional impairment losses may need to be recognized as derivative impacts of downward revisions to past fiscal years profits and losses based on the findings of the third-party committee This information has been disclosed just today. this information has been disclosed just today Next slide, please. next slide please As of our business situation, I would like to give you a brief summary of that. as of our business situation i would like to give you a brief summary of that

Speaker 10: Since last time, we've been continuing to communicate with you that under any circumstances, we will not have disruption with our existing customers and our suppliers. Regarding business overview, our sales, manufacturing status, and also about our financing, I would like to give a brief update. The current order status remains strong, and there's been no major changes to our existing production plan. On the right-hand side of this table, under Q3, what used to be ¥6.2 billion in sales in the last year, Q3, has increased to ¥677.7 billion. At a total of ¥1.98 trillion levels as a cumulative total. Our production base are operating normally and have maintained a supply capacity. Since last time, we've been continuing to communicate with you that under any circumstances, we will not have disruption with our existing customers and our suppliers. since last time we've been continuing to communicate with you that under any circumstances we will not have disruption with our existing customers and our suppliers Regarding business overview, our sales, manufacturing status, and also about our financing, I would like to give a brief update. regarding business overview our sales manufacturing status and also about our financing i would like to give a brief update The current order status remains strong, and there's been no major changes to our existing production plan. the current order status remains strong and there's been no major changes to our existing production plan On the right-hand side of this table, under Q3, what used to be ¥ 6.2 billion in sales in the last year, Q3, has increased to ¥ 677.7 billion. on the right-hand side of this table under q3 what used to be ¥ 6.2 billion in sales in the last year q3 has increased to ¥ 677.7 billion At a total of ¥ 1.98 trillion levels as a cumulative total. at a total of ¥ 1.98 trillion levels as a cumulative total Our production base are operating normally and have maintained a supply capacity. our production base are operating normally and have maintained a supply capacity On the bottom right, regarding our financing situation and regarding interest-bearing debt, you can see from Q2 to Q3, we are at, ¥1 trillion and ¥1.2 trillion yen against ¥12 billion yen. That means, that a re-shuffling of debt, we have cash in hand of ¥500 billion. Plus cash and cash equivalent, is at ¥344.5 billion, became ¥890 billion. That is a borrowing of ¥500 billion itself, plus a cash flow on operation improvement of ¥50 billion. ¥550 billion improvement is included. Q3 is ¥890 billion. On the bottom right, regarding our financing situation and regarding interest-bearing debt, you can see from Q2 to Q3, we are at, ¥ 1 trillion and ¥ 1.2 trillion yen against ¥ 12 billion yen. on the bottom right regarding our financing situation and regarding interest-bearing debt you can see from q2 to q3 we are at ¥ 1 trillion and ¥ 1.2 trillion yen against ¥ 12 billion yen That means, that a re-shuffling of debt, we have cash in hand of ¥ 500 billion. that means that a re-shuffling of debt we have cash in hand of ¥ 500 billion Plus cash and cash equivalent, is at ¥ 344.5 billion, became ¥ 890 billion. plus cash and cash equivalent is at ¥ 344.5 billion became ¥ 890 billion That is a borrowing of ¥ 500 billion itself, plus a cash flow on operation improvement of ¥50 billion. ¥550 billion improvement is included. that is a borrowing of ¥ 500 billion itself plus a cash flow on operation improvement of ¥50 billion. ¥550 billion improvement is included Q3 is ¥ 890 billion. q3 is ¥ 890 billion

Speaker 11: We are not tampering any commitment line of ¥600 billion regarding this cash situation. Well, as additional note, various disclosure that we shared on February 27th and March 3rd. This is our company's response, and we are waiting to receive the third-party committee's final report to continue to enhance our improvement measure. We plan to file the submit a confirmation of our internal control system on upcoming October 28th. Thank you. Now, I would like to take questions from the floor. For those of you with question, please raise your hand and please state your name and your affiliations. I would like to take as many questions as possible, so please keep your question to one per person at a time. We are not tampering any commitment line of ¥ 600 billion regarding this cash situation. we are not tampering any commitment line of ¥ 600 billion regarding this cash situation Well, as additional note, various disclosure that we shared on February 27th and March 3rd. well as additional note various disclosure that we shared on february 27th and march 3rd This is our company's response, and we are waiting to receive the third-party committee's final report to continue to enhance our improvement measure. this is our company's response and we are waiting to receive the third-party committee's final report to continue to enhance our improvement measure We plan to file the submit a confirmation of our internal control system on upcoming October 28th. we plan to file the submit a confirmation of our internal control system on upcoming october 28th Thank you. thank you Now, I would like to take questions from the floor. now i would like to take questions from the floor For those of you with question, please raise your hand and please state your name and your affiliations. for those of you with question please raise your hand and please state your name and your affiliations I would like to take as many questions as possible, so please keep your question to one per person at a time. i would like to take as many questions as possible so please keep your question to one per person at a time

Speaker 35: For the press and for the analysts, this is a joint, we have analysts, and we have a press, present in this venue. I would like to nominate one each. I'll like to alternate. First, the press person. The male person sitting on the front row, please. For the press and for the analysts, this is a joint, we have analysts, and we have a press, present in this venue. for the press and for the analysts this is a joint we have analysts and we have a press present in this venue I would like to nominate one each. i would like to nominate one each I'll like to alternate. i'll like to alternate First, the press person. first the press person The male person sitting on the front row, please. the male person sitting on the front row please

Speaker 38: Hello, I'm Hiraoka from Nikkei newspaper. Thank you for your presentation. Regarding the scope of a possible impairment loss of ¥250 billion, if you could please give additional information on that, what that would be, and the relationship with our current, this time's, accounting, inappropriate, practice regarding the timing of this impairment loss. I would like to have Nakagawa explain. I will provide additional explanation, too, as needed. Hello, I'm Hiraoka from Nikkei newspaper. hello i'm hiraoka from nikkei newspaper Thank you for your presentation. thank you for your presentation Regarding the scope of a possible impairment loss of ¥ 250 billion, if you could please give additional information on that, what that would be, and the relationship with our current, this time's, accounting, inappropriate, practice regarding the timing of this impairment loss. regarding the scope of a possible impairment loss of ¥ 250 billion if you could please give additional information on that what that would be and the relationship with our current this time's accounting inappropriate practice regarding the timing of this impairment loss I would like to have Nakagawa explain. i would like to have nakagawa explain I will provide additional explanation, too, as needed. i will provide additional explanation too as needed

Speaker 20: Thank you for your question. Thank you for your question. thank you for your question The third-party committees reported, I mean, we are reporting at the same time, it can be confusing. First of all, this ¥250 billion is separate from ¥139.7 billion that came from inappropriate accounting practice that impact our equity. That is separate things. This third-party investigation on our wrong accounting practice will continue, not finalized yet, at the moment, that loss will be at ¥139.7 billion. The third party will continue to work to deliver the final results, we would determine the impact for every year. We will conduct impairment loss check tracking back to the past. That's what you're seeing right now. At this moment, we don't know by when and how much. The third-party committees reported, I mean, we are reporting at the same time, it can be confusing. the third-party committees reported i mean we are reporting at the same time it can be confusing First of all, this ¥ 250 billion is separate from ¥ 139.7 billion that came from inappropriate accounting practice that impact our equity. first of all this ¥ 250 billion is separate from ¥ 139.7 billion that came from inappropriate accounting practice that impact our equity That is separate things. that is separate things This third-party investigation on our wrong accounting practice will continue, not finalized yet, at the moment, that loss will be at ¥ 139.7 billion. this third-party investigation on our wrong accounting practice will continue not finalized yet at the moment that loss will be at ¥ 139.7 billion The third party will continue to work to deliver the final results, we would determine the impact for every year. the third party will continue to work to deliver the final results we would determine the impact for every year We will conduct impairment loss check tracking back to the past. we will conduct impairment loss check tracking back to the past That's what you're seeing right now. that's what you're seeing right now At this moment, we don't know by when and how much. at this moment we don't know by when and how much We would like to first set a certain premise as a hypothesis and have made the simulation based on that. This is not necessarily a final amount. When we close our book once more time, and we will do a calculation once again, then we would scrutinize again about the amount of impairment loss. We would like to first set a certain premise as a hypothesis and have made the simulation based on that. we would like to first set a certain premise as a hypothesis and have made the simulation based on that This is not necessarily a final amount. this is not necessarily a final amount When we close our book once more time, and we will do a calculation once again, then we would scrutinize again about the amount of impairment loss. when we close our book once more time and we will do a calculation once again then we would scrutinize again about the amount of impairment loss Let me add to that. As I mentioned in the beginning, this has nothing to do with inappropriate accounting practice. This time, ¥139 billion loss that we would go back to the past. That is a rough impairment loss scope that we have recognized now. Let me add to that. let me add to that As I mentioned in the beginning, this has nothing to do with inappropriate accounting practice. as i mentioned in the beginning this has nothing to do with inappropriate accounting practice This time, ¥ 139 billion loss that we would go back to the past. this time ¥ 139 billion loss that we would go back to the past That is a rough impairment loss scope that we have recognized now. that is a rough impairment loss scope that we have recognized now

Speaker 38: Thank you very much. My second question. Within your, the third-party report, there was an explanation about the negative legacy. That is the same as President Kishida's comment. How is that situation today right now? Thank you very much. thank you very much My second question. my second question Within your, the third-party report, there was an explanation about the negative legacy. within your the third-party report there was an explanation about the negative legacy That is the same as President Kishida's comment. that is the same as president kishida's comment How is that situation today right now? how is that situation today right now What's you What's you what's you

Speaker 20: r awareness levels? Well, negative legacy doesn't necessarily equals to inappropriate accounting practice. That was mentioned in the third-party investigation report, press release as, press conference as well. It's a list of asset which can contain risk assets. For example, I was in charge of automotive business, and we were discussing a few times about how to recognize such a negative legacy in our book. In this time's investigation report, It's a first, it's a news for me, that this kind of a discussion were taking place in various different part of the company too. r awareness levels? r awareness levels Well, negative legacy doesn't necessarily equals to inappropriate accounting practice. well negative legacy doesn't necessarily equals to inappropriate accounting practice That was mentioned in the third-party investigation report, press release as, press conference as well. that was mentioned in the third-party investigation report press release as press conference as well It's a list of asset which can contain risk assets. it's a list of asset which can contain risk assets For example, I was in charge of automotive business, and we were discussing a few times about how to recognize such a negative legacy in our book. for example i was in charge of automotive business and we were discussing a few times about how to recognize such a negative legacy in our book In this time's investigation report, It's a first, it's a news for me, that this kind of a discussion were taking place in various different part of the company too. in this time's investigation report it's a first it's a news for me that this kind of a discussion were taking place in various different part of the company too We need to put that in the right practice in terms of having a formal process and have a systematic approach so that we won't repeat this kind of a misconduct to happen again. That's my understanding. Regarding a negative legacy, what is the scale in terms of amount currently, and what kind of policy do you have regarding how to handle the negative legacy? Regarding how much is remains as negative legacy is not something that we have a clear understanding. In future, we will have appropriate accounting practice and accounting timing. Like self-funding or plan postponement, to have a phased approach in the impairment loss is not something that we would do everything to avoid. We need to put that in the right practice in terms of having a formal process and have a systematic approach so that we won't repeat this kind of a misconduct to happen again. we need to put that in the right practice in terms of having a formal process and have a systematic approach so that we won't repeat this kind of a misconduct to happen again That's my understanding. that's my understanding Regarding a negative legacy, what is the scale in terms of amount currently, and what kind of policy do you have regarding how to handle the negative legacy? regarding a negative legacy what is the scale in terms of amount currently and what kind of policy do you have regarding how to handle the negative legacy Regarding how much is remains as negative legacy is not something that we have a clear understanding. regarding how much is remains as negative legacy is not something that we have a clear understanding In future, we will have appropriate accounting practice and accounting timing. in future we will have appropriate accounting practice and accounting timing Like self-funding or plan postponement, to have a phased approach in the impairment loss is not something that we would do everything to avoid. like self-funding or plan postponement to have a phased approach in the impairment loss is not something that we would do everything to avoid We'll be working together with the global operation teams to make sure that we'll have a firm process to prevent from this kind of practice to happen again. We'll be working together with the global operation teams to make sure that we'll have a firm process to prevent from this kind of practice to happen again. we'll be working together with the global operation teams to make sure that we'll have a firm process to prevent from this kind of practice to happen again

Speaker 11: Next question is, we need to take from analyst. Person in the backshare, please. Next question is, we need to take from analyst. next question is we need to take from analyst Person in the backshare, please. person in the backshare please

Speaker 4: Thank you for taking my question. I am Takayama from Goldman Sachs. I have some question about numbers to make sure that there's no misunderstanding on my side. This ¥250 billion, this is of the past, and you have studied every year's impact, and this is amount of scale. It's not the wrong practice or errors. It's illegal, but this is something that you should have done. Is that how you're seeing it? Thank you for taking my question. thank you for taking my question I am Takayama from Goldman Sachs. i am takayama from goldman sachs I have some question about numbers to make sure that there's no misunderstanding on my side. i have some question about numbers to make sure that there's no misunderstanding on my side This ¥ 250 billion, this is of the past, and you have studied every year's impact, and this is amount of scale. this ¥ 250 billion this is of the past and you have studied every year's impact and this is amount of scale It's not the wrong practice or errors. it's not the wrong practice or errors It's illegal, but this is something that you should have done. it's illegal but this is something that you should have done Is that how you're seeing it? is that how you're seeing it Is there overlap to so-called negative legacy, to this asset scope of that is, this is a scope for the impairment loss of¥250 billion? Please let me know your thoughts. Is there overlap to so-called negative legacy, to this asset scope of that is, this is a scope for the impairment loss of ¥ 250 billion? is there overlap to so-called negative legacy to this asset scope of that is this is a scope for the impairment loss of ¥ 250 billion Please let me know your thoughts. please let me know your thoughts

Speaker 20: In the additional press release, it says additional loss of ¥23 billion. I'm not sure whether it's something that will come in the future or of the past. Let me first answer, Nakagawa to take the first part of the question and for the future from Minai. This assessment for the impairment loss this time, it has nothing to do again with an appropriate accounting practice. We have went back to the past because actual figures are being replaced. When looking at the future with the new figures, we now have revisited the forecast. I n the additional press release, it says additional loss of ¥ 23 billion. i n the additional press release it says additional loss of ¥ 23 billion I'm not sure whether it's something that will come in the future or of the past. i'm not sure whether it's something that will come in the future or of the past Let me first answer, Nakagawa to take the first part of the question and for the future from Minai. let me first answer nakagawa to take the first part of the question and for the future from minai This assessment for the impairment loss this time, it has nothing to do again with an appropriate accounting practice. this assessment for the impairment loss this time it has nothing to do again with an appropriate accounting practice We have went back to the past because actual figures are being replaced. we have went back to the past because actual figures are being replaced When looking at the future with the new figures, we now have revisited the forecast. when looking at the future with the new figures we now have revisited the forecast Of course, we are validating the necessary impa Of course, we are validating the necessary impa of course we are validating the necessary impa irment loss every year, but our financial statement was affixed, revised this time, so we have to go back in the past and to check again. Regarding when we would impair each asset, that is yet to be decided. What we have discovered under the scope of investigation period, for example, the asset at the end of June end in 2025, how much of that we should book as impairment loss? That amount is¥250 billion. I hope my answer is clear. This is because you need to revise the Yuho of the past. In addition to ¥139.7 billion, you would need to record impairment loss of ¥250 billion. There will be more of that? It really depends. irment loss every year, but our financial statement was affixed, revised this time, so we have to go back in the past and to check again. irment loss every year but our financial statement was affixed revised this time so we have to go back in the past and to check again Regarding when we would impair each asset, that is yet to be decided. regarding when we would impair each asset that is yet to be decided What we have discovered under the scope of investigation period, for example, the asset at the end of June end in 2025, how much of that we should book as impairment loss? what we have discovered under the scope of investigation period for example the asset at the end of june end in 2025 how much of that we should book as impairment loss That amount is ¥ 250 billion. that amount is ¥ 250 billion I hope my answer is clear. i hope my answer is clear This is because you need to revise the Yuho of the past. this is because you need to revise the yuho of the past In addition to ¥ 139.7 billion, you would need to record impairment loss of ¥ 250 billion. in addition to ¥ 139.7 billion you would need to record impairment loss of ¥ 250 billion There will be more of that? there will be more of that It really depends. it really depends We first went back to the first fiscal year and looked at the impairment loss booking was appropriate or not. We keep going back all the way to the five years in the past. This is based on our simulations. Regarding additional tariff impact of ¥23 billion, this is still yet to be seen. I mean, we are still investigating. This has to do with FIR misconduct, having to pay for additional tariff. We are investigating to see whether similar practice was taken by other overseas subsidiary entities. With those errors found, we would need to pay additional tariff, and that amount is ¥23 billion. That we will be paying in future. To whom is against what is regarding past five years of import, we were paying a wrong amount of tariff. We first went back to the first fiscal year and looked at the impairment loss booking was appropriate or not. we first went back to the first fiscal year and looked at the impairment loss booking was appropriate or not We keep going back all the way to the five years in the past. we keep going back all the way to the five years in the past This is based on our simulations. this is based on our simulations Regarding additional tariff impact of ¥ 23 billion, this is still yet to be seen. regarding additional tariff impact of ¥ 23 billion this is still yet to be seen I mean, we are still investigating. i mean we are still investigating This has to do with FIR misconduct, having to pay for additional tariff. this has to do with fir misconduct having to pay for additional tariff We are investigating to see whether similar practice was taken by other overseas subsidiary entities. we are investigating to see whether similar practice was taken by other overseas subsidiary entities With those errors found, we would need to pay additional tariff, and that amount is ¥23 billion. with those errors found we would need to pay additional tariff and that amount is ¥23 billion That we will be paying in future. that we will be paying in future To whom is against what is regarding past five years of import, we were paying a wrong amount of tariff. to whom is against what is regarding past five years of import we were paying a wrong amount of tariff This is ¥23 billion for the wrong filing of tariff duties of the past. When we investigate, investigation completed, when we know for which year we should have paid this amount of tariff, we would match in impairment loss, we have a provision for that to be ready for that payment. This is ¥23 billion for the wrong filing of tariff duties of the past. this is ¥23 billion for the wrong filing of tariff duties of the past When we investigate, investigation completed, when we know for which year we should have paid this amount of tariff, we would match in impairment loss, we have a provision for that to be ready for that payment. when we investigate investigation completed when we know for which year we should have paid this amount of tariff we would match in impairment loss we have a provision for that to be ready for that payment

Speaker 4: Okay. My assumption is that there will be a major negative hit to the OP levels, right? Okay. okay My assumption is that there will be a major negative hit to the OP levels, right? my assumption is that there will be a major negative hit to the op levels right

Speaker 20: As you can see on our earnings call, we, there has been some sudden impairment losses. Based on that, we would like to mitigate those volatility, we need to have a regular booking on impairment losses when needed. That's why we are doing checks after checks, and we're doing that as soon as possible. As you can see on our earnings call, we, there has been some sudden impairment losses. as you can see on our earnings call we there has been some sudden impairment losses Based on that, we would like to mitigate those volatility, we need to have a regular booking on impairment losses when needed. based on that we would like to mitigate those volatility we need to have a regular booking on impairment losses when needed That's why we are doing checks after checks, and we're doing that as soon as possible. that's why we are doing checks after checks and we're doing that as soon as possible

Speaker 9: When we reflect the revision necessary for the past financial statement, this is a probability amount that we need to book as a loss. And of course, we will need to get the external auditing regarding this cost. Are there still more negative legacy remaining after this ¥250 billion loss that you're going to book? As our President Mitsuya Kishida mentioned earlier, our current negative legacy will be solved all the way to cover to June 2025. That's what the final report will clarify. At that time, we will know how much is left. That's something that we need to give it another try. What I mean is, as Kishida mentioned, how much risk asset we have right now, we'll take the stock count. When we reflect the revision necessary for the past financial statement, this is a probability amount that we need to book as a loss. when we reflect the revision necessary for the past financial statement this is a probability amount that we need to book as a loss And of course, we will need to get the external auditing regarding this cost. and of course we will need to get the external auditing regarding this cost Are there still more negative legacy remaining after this ¥ 250 billion loss that you're going to book? are there still more negative legacy remaining after this ¥ 250 billion loss that you're going to book As our President Mitsuya Kishida mentioned earlier, our current negative legacy will be solved all the way to cover to June 2025. as our president mitsuya kishida mentioned earlier our current negative legacy will be solved all the way to cover to june 2025 That's what the final report will clarify. that's what the final report will clarify At that time, we will know how much is left. at that time we will know how much is left That's something that we need to give it another try. that's something that we need to give it another try What I mean is, as Kishida mentioned, how much risk asset we have right now, we'll take the stock count. what i mean is as kishida mentioned how much risk asset we have right now we'll take the stock count We'll have involved the expert too with our internal accounting team, our auditors and. We'll have involved the expert too with our internal accounting team, our auditors and. we'll have involved the expert too with our internal accounting team our auditors and

Speaker 19: Our auditing and supervisory committees included, will disclose that negative asset and what to do about it. Of course, we are doing business, so when there's risk, in order to minimize that risk, what kind of countermeasure we can implement, that's the first thing that we'll think about. Once we are determined that we need to have a right accounting practice or process and to book it as a loss, we will. Amount is not something that we know now. Our auditing and supervisory committees included, will disclose that negative asset and what to do about it. our auditing and supervisory committees included will disclose that negative asset and what to do about it Of course, we are doing business, so when there's risk, in order to minimize that risk, what kind of countermeasure we can implement, that's the first thing that we'll think about. of course we are doing business so when there's risk in order to minimize that risk what kind of countermeasure we can implement that's the first thing that we'll think about Once we are determined that we need to have a right accounting practice or process and to book it as a loss, we will. once we are determined that we need to have a right accounting practice or process and to book it as a loss we will Amount is not something that we know now. amount is not something that we know now If I say one word, we can mitigate the risk for the future quite precipitously in our recognition. If I say one word, we can mitigate the risk for the future quite precipitously in our recognition. if i say one word we can mitigate the risk for the future quite precipitously in our recognition

Speaker 11: If I may, today, because there are so many participants, therefore please limit yourself only to two questions. This from journalist. From your viewpoint, the person from second from the left and third from the front wall. If I may, today, because there are so many participants, therefore please limit yourself only to two questions. if i may today because there are so many participants therefore please limit yourself only to two questions This from journalist. this from journalist From your viewpoint, the person from second from the left and third from the front wall. from your viewpoint the person from second from the left and third from the front wall

Speaker 39: Ashihara from Kyoto Newspaper. Thank you very much for your presentation. Regarding the third-party committee presentation, I found the key that is for the reborn Nidec. One of them is not going away from Mr. Nagamori's influence at a glance. This to be very difficult, and it cannot be achieved overnight. However, the way Mr. Nagamori should be put behind, how are you going to do that? Sorry for talking about a very severe point. Ashihara from Kyoto Newspaper. ashihara from kyoto newspaper Thank you very much for your presentation. thank you very much for your presentation Regarding the third-party committee presentation, I found the key that is for the reborn Nidec. regarding the third-party committee presentation i found the key that is for the reborn nidec One of them is not going away from Mr. Nagamori's influence at a glance. one of them is not going away from mr nagamori's influence at a glance This to be very difficult, and it cannot be achieved overnight. this to be very difficult and it cannot be achieved overnight However, the way Mr. Nagamori should be put behind, how are you going to do that? however the way mr nagamori should be put behind how are you going to do that Sorry for talking about a very severe point. sorry for talking about a very severe point

Speaker 20: No, not at all. No, not at all. no not at all This is a very important point. When we established the rehabilitations committee, and as we have mentioned in the previous meetings, we have to be Nidec. We have to be who we are based on the corporate cultures and philosophy, and we have to respect them. Some of them should be handed over to the future in our recognition. Because for us, we needed to add more. That is, we have to do anything in the right manner all the time. Therefore, based on this concept, the recommendations, including the improvement document submitted by the rehabilitation committee or the Reform Committee, we'd like to apply this concept or split. Because we are going to do anything right, the processes, including the way we have done the business in the past, should be abandoned. This is a very important point. this is a very important point When we established the rehabilitations committee, and as we have mentioned in the previous meetings, we have to be Nidec. when we established the rehabilitations committee and as we have mentioned in the previous meetings we have to be nidec We have to be who we are based on the corporate cultures and philosophy, and we have to respect them. we have to be who we are based on the corporate cultures and philosophy and we have to respect them Some of them should be handed over to the future in our recognition. some of them should be handed over to the future in our recognition Because for us, we needed to add more. because for us we needed to add more That is, we have to do anything in the right manner all the time. that is we have to do anything in the right manner all the time Therefore, based on this concept, the recommendations, including the improvement document submitted by the rehabilitation committee or the Reform Committee, we'd like to apply this concept or split. therefore based on this concept the recommendations including the improvement document submitted by the rehabilitation committee or the reform committee we'd like to apply this concept or split Because we are going to do anything right, the processes, including the way we have done the business in the past, should be abandoned. because we are going to do anything right the processes including the way we have done the business in the past should be abandoned However, we have to do it courageously, because doing it right, this should be the basis for the corporate culture to be at the center of whatever we are going to do. I'd like to share this split. Mr. Iminagi, do you have anything to add? However, we have to do it courageously, because doing it right, this should be the basis for the corporate culture to be at the center of whatever we are going to do. however we have to do it courageously because doing it right this should be the basis for the corporate culture to be at the center of whatever we are going to do I'd like to share this split. i'd like to share this split Mr. Iminagi, do you have anything to add? mr iminagi do you have anything to add

Speaker 19: No, no, not at all. I totally agree with you. First of all, doing right. This should be applied to all of the activities in daily businesses. In order to practice this split, we can consider what we have to do in what way. As you heard in our improvement plan that we have shared the other day, we will implement this improvement plan. But we have to walk the talk. Meaning that all of the employees have to do their work in the right manner, and we have to check the actual status. And then across the globe, all of the colleagues in the Nidec groups can follow this by getting aligned on this concept. And this is what we have to do. No, no, not at all. no no not at all I totally agree with you. i totally agree with you First of all, doing right. first of all doing right This should be applied to all of the activities in daily businesses. this should be applied to all of the activities in daily businesses In order to practice this split, we can consider what we have to do in what way. in order to practice this split we can consider what we have to do in what way As you heard in our improvement plan that we have shared the other day, we will implement this improvement plan. as you heard in our improvement plan that we have shared the other day we will implement this improvement plan But we have to walk the talk. but we have to walk the talk Meaning that all of the employees have to do their work in the right manner, and we have to check the actual status. meaning that all of the employees have to do their work in the right manner and we have to check the actual status And then across the globe, all of the colleagues in the Nidec groups can follow this by getting aligned on this concept. and then across the globe all of the colleagues in the nidec groups can follow this by getting aligned on this concept And this is what we have to do. and this is what we have to do

Speaker 39: Thank you very much. In the interest of time, I can raise just one question. Right now, even now, Mr. Nagamori is one of the major shareholders. Therefore, do you see how you can eliminate the negative influence of Mr. Nagamori, and what kind of countermeasures you are going to take, if any? Thank you very much. thank you very much In the interest of time, I can raise just one question. in the interest of time i can raise just one question Right now, even now, Mr. Nagamori is one of the major shareholders. right now even now mr nagamori is one of the major shareholders Therefore, do you see how you can eliminate the negative influence of Mr. Nagamori, and what kind of countermeasures you are going to take, if a ny? therefore do you see how you can eliminate the negative influence of mr nagamori and what kind of countermeasures you are going to take if a ny

Speaker 20: Thank you very much for your question. As you see in the report from the third-party investigation committee report. Yes, Mr. Nagamori is still one of the major stakeholders, and this may not change. However, for us, we have many stakeholders, including shareholders. Therefore, all in all, we have to consider how we can operate our businesses soundly. Thank you very much for your question. thank you very much for your question As you see in the report from the third-party investigation committee report. as you see in the report from the third-party investigation committee report Yes, Mr. Nagamori is still one of the major stakeholders, and this may not change. yes mr nagamori is still one of the major stakeholders and this may not change However, for us, we have many stakeholders, including shareholders. however for us we have many stakeholders including shareholders Therefore, all in all, we have to consider how we can operate our businesses soundly. therefore all in all we have to consider how we can operate our businesses soundly This is the most important thing for the company, we should not focus only on the part of the stakeholders, because the partial stakeholders should not distort our operations and the businesses. Let alone the smooth operation of the businesses, that is the best for us to establish process and schemes, we take this as a mission for us. Thank you very much. This is the most important thing for the company, we should not focus only on the part of the stakeholders, because the partial stakeholders should not distort our operations and the businesses. this is the most important thing for the company we should not focus only on the part of the stakeholders because the partial stakeholders should not distort our operations and the businesses Let alone the smooth operation of the businesses, that is the best for us to establish process and schemes, we take this as a mission for us. let alone the smooth operation of the businesses that is the best for us to establish process and schemes we take this as a mission for us Thank you very much. thank you very much

Speaker 11: Now the analyst sits over there. I saw your hands up. Now the analyst sits over there. now the analyst sits over there I saw your hands up. i saw your hands up

Speaker 5: Thank you very much. I'm Sato from Morgan Stanley. I really appreciate your explanation. On the 14th of November, when the financial statements were announced, there were some discrepancies between those numbers and this time numbers. First of all, ¥87.7 billion impairment loss was registered in the first quarter. Thank you ve ry much. thank you ve ry much I'm Sato from Morgan Stanley. i'm sato from morgan stanley I really appreciate your explanation. i really appreciate your explanation On the 14th of November, when the financial statements were announced, there were some discrepancies between those numbers and this time numbers. on the 14th of november when the financial statements were announced there were some discrepancies between those numbers and this time numbers First of all, ¥ 87.7 billion impairment loss was registered in the first quarter. first of all ¥ 87.7 billion impairment loss was registered in the first quarter In addition to that, ¥139.7 billion and ¥260 billion losses happen. Therefore, how they have impact onto the net assets at the end of the first quarter of this fiscal year. That is ¥1.167 billion. We have to subtract ¥139.7 billion. This calculation is right? This is the first question. The second question is related to the change in the cash flow. Are there any changes in cash flow? I understood that there's no change in cash flow, please confirm these two questions. In addition to that, ¥ 139.7 billion and ¥ 260 billion losses happen. in addition to that ¥ 139.7 billion and ¥ 260 billion losses happen Therefore, how they have impact onto the net assets at the end of the first quarter of this fiscal year. therefore how they have impact onto the net assets at the end of the first quarter of this fiscal year That is ¥ 1.167 billion. that is ¥ 1.167 billion We have to subtract ¥ 139.7 billion. we have to subtract ¥ 139.7 billion This calculation is right? this calculation is right This is the first question. this is the first question The second question is related to the change in the cash flow. the second question is related to the change in the cash flow Are there any changes in cash flow? are there any changes in cash flow I understood that there's no change in cash flow, please confirm these two questions. i understood that there's no change in cash flow please confirm these two questions

Speaker 9: Yes, we have announced the financial statements on the 14th of November due to the impairment loss for the first quarter. However, this is a result of the third party... Yes, we have announced the financial statements on the 14th of November due to the impairment loss for the first quarter. yes we have announced the financial statements on the 14th of november due to the impairment loss for the first quarter However, this is a result of the third party... however this is a result of the third party However, this number may change depending on the result of the third-party committee, and we said it in the disclaimer. However, after the tax, this now ¥877 billion have the impact on to the net asset, and this has been already incorporated. Therefore, regarding the next step, this time of ¥139.7 billion will be offset internally. In addition to that, ¥250 billion, although the timing is not clear, but this will have the impact onto the equity at the future date. How about cash flow? Both of them don't have any impact onto the cash flow. Thank you very much. Now, the second point. However, this number may change depending on the result of the third-party committee, and we said it in the disclaimer. however this number may change depending on the result of the third-party committee and we said it in the disclaimer However, after the tax, this now ¥ 877 billion have the impact on to the net asset, and this has been already incorporated. however after the tax this now ¥ 877 billion have the impact on to the net asset and this has been already incorporated Therefore, regarding the next step, this time of ¥ 139.7 billion will be offset internally. therefore regarding the next step this time of ¥ 139.7 billion will be offset internally In addition to that, ¥ 250 billion, although the timing is not clear, but this will have the impact onto the equity at the future date. in addition to that ¥ 250 billion although the timing is not clear but this will have the impact onto the equity at the future date How about cash flow? how about cash flow Both of them don't have any impact onto the cash flow. both of them don't have any impact onto the cash flow Thank you very much. thank you very much Now, the second point. now the second point

Speaker 5: I'd like to know when the next the announcement of the financial statements will come. You said it's TBD, however, towards the next announcement, President Kishida, are you going to issue the internal governance report as the demonstration that your internal governance is sound and good? I'd like to know when the next the announcement of the financial statements will come. i'd like to know when the next the announcement of the financial statements will come You said it's TBD, however, towards the next announcement, President Kishida, are you going to issue the internal governance report as the demonstration that your internal governance is sound and good? you said it's tbd however towards the next announcement president kishida are you going to issue the internal governance report as the demonstration that your internal governance is sound and good

Speaker 20: Thank you very much for your question. We'd like to share our financial statements as soon as possible in the correct manner for each quarter. We'd like to share the update for each quarter. We'd like to return to such a they should be status as soon as possible. As of today, as you heard in the third-party committee meeting, their final report timing is not finalized yet. Thank you very much for your question. thank you very much for your question We'd like to share our financial statements as soon as possible in the correct manner for each quarter. we'd like to share our financial statements as soon as possible in the correct manner for each quarter We'd like to share the update for each quarter. we'd like to share the update for each quarter We'd like to return to such a they should be status as soon as possible. we'd like to return to such a they should be status as soon as possible As of today, as you heard in the third-party committee meeting, their final report timing is not finalized yet. as of today as you heard in the third-party committee meeting their final report timing is not finalized yet We'd like to make sure that on everything could make it in time to ensure the no delay of the reports toward the shareholders' meeting slated for June. We'd like to make all-out effort to realize it. Regarding the internal governance report. You will make the description that there's no problem in the internal governance in that report. We have not found out that much. What we would like to pursue regarding to such targets, we'd like to hold the meeting to share the financial statements or financial results for the FY 2025 as soon as possible, and we'd like to make an all-out effort to realize it. Thank you very much. We'd like to make sure that on everything could make it in time to ensure the no delay of the reports toward the shareholders' meeting slated for June. we'd like to make sure that on everything could make it in time to ensure the no delay of the reports toward the shareholders' meeting slated for june We'd like to make all-out effort to realize it. we'd like to make all-out effort to realize it Regarding the internal governance report. regarding the internal governance report You will make the description that there's no problem in the internal governance in that report. you will make the description that there's no problem in the internal governance in that report We have not found out that much. we have not found out that much What we would like to pursue regarding to such targets, we'd like to hold the meeting to share the financial statements or financial results for the FY 2025 as soon as possible, and we'd like to make an all-out effort to realize it. what we would like to pursue regarding to such targets we'd like to hold the meeting to share the financial statements or financial results for the fy 2025 as soon as possible and we'd like to make an all-out effort to realize it Thank you very much. thank you very much

Speaker 11: The next question, we'd like to take the gentleman in the blue tie. The next question, we'd like to take the gentleman in the blue tie. the next question we'd like to take the gentleman in the blue tie

Speaker 15: I'm Igami from The Asahi Shimbun. I'd like to ask about governance. I'm Igami from The Asahi Shimbun. i'm igami from the asahi shimbun I'd like to ask about governance. i'd like to ask about governance The report of the third-party committee says that the diversity is not sufficient, including the outside officers. There are many people who had experiences as the bureaucrats. At the same time, there are not so many people who had an expertise in accounting and management, and how this structure is accepted, or why this generational structure was accepted, although there is no enough diversity, especially the former bureaucrats. For example, to like to establish better interpersonal relationships by hiring the former bureaucrats. Are there any influences about Mr. Nagamori? The report of the third-party committee says that the diversity is not sufficient, including the outside officers. the report of the third-party committee says that the diversity is not sufficient including the outside officers There are many people who had experiences as the bureaucrats. there are many people who had experiences as the bureaucrats At the same time, there are not so many people who had an expertise in accounting and management, and how this structure is accepted, or why this generational structure was accepted, although there is no enough diversity, especially the former bureaucrats. at the same time there are not so many people who had an expertise in accounting and management and how this structure is accepted or why this generational structure was accepted although there is no enough diversity especially the former bureaucrats For example, to like to establish better interpersonal relationships by hiring the former bureaucrats. for example to like to establish better interpersonal relationships by hiring the former bureaucrats Are there any influences about Mr. Nagamori? are there any influences about mr nagamori

Speaker 20: Thank you very much for your question. We'd like to reform our organizational structure from the very bottom, and we'd like to reflect it in our personnel change. Thank you very much for your question. thank you very much for your question We'd like to reform our organizational structure from the very bottom, and we'd like to reflect it in our personnel change. we'd like to reform our organizational structure from the very bottom and we'd like to reflect it in our personnel change

Speaker 16: You see it in the personnel change in the executives and officials, we have to respect the expertise, especially in the business management and accounting. They are essential. Therefore, as soon as possible, we'd like to proceed our reform to reflect this concept. Why we have had such organizational structure for this matter, from my perspective, I myself would like to reform this structure. That's what I say. You see it in the personnel change in the executives and officials, we have to respect the expertise, especially in the business management and accounting. you see it in the personnel change in the executives and officials we have to respect the expertise especially in the business management and accounting They are essential. they are essential Therefore, as soon as possible, we'd like to proceed our reform to reflect this concept. therefore as soon as possible we'd like to proceed our reform to reflect this concept Why we have had such organizational structure for this matter, from my perspective, I myself would like to reform this structure. why we have had such organizational structure for this matter from my perspective i myself would like to reform this structure That's what I say. that's what i say

Speaker 15: How about the intention of Dr. Nagamori? Was his view reflected on this? How about the intention of Dr. Nagamori? how about the intention of dr nagamori Was his view reflected on this? was his view reflected on this Needless to say, Mr. Nagamori has served as the representative of Nidec. In addition to that, he has assumed all of the responsibilities for the management, and so is for the structures and members of the executives and officials. The reason why there are so many former bureaucrats and how Mr. Needless to say, Mr. Nagamori has served as the representative of Nidec. needless to say mr nagamori has served as the representative of nidec In addition to that, he has assumed all of the responsibilities for the management, and so is for the structures and members of the executives and officials. in addition to that he has assumed all of the responsibilities for the management and so is for the structures and members of the executives and officials The reason why there are so many former bureaucrats and how Mr. the reason why there are so many former bureaucrats and how mr Nagamori's intention was reflected, for example, two person from MOFA, another two person from MOF, why those former bureaucrats were hired? Are there any criteria to hire former bureaucrats? Regarding the selection of the outside officers, there's a so-called knowledge matrix, capability list put in place, therefore, we refer this to determine the members of the executives, we have made it open. Regarding the responsibilities of the outside officers, what do you think about that? We see the handling of the executives. However, there are different treatments for officers and executives, I know there are background reasons. Regarding the outside officials, what would you do? Nagamori's intention was reflected, for example, two person from MOFA, another two person from MOF, why those former bureaucrats were hired? nagamori's intention was reflected for example two person from mofa another two person from mof why those former bureaucrats were hired Are there any criteria to hire former bureaucrats? are there any criteria to hire former bureaucrats Regarding the selection of the outside officers, there's a so-called knowledge matrix, capability list put in place, therefore, we refer this to determine the members of the executives, we have made it open. regarding the selection of the outside officers there's a so-called knowledge matrix capability list put in place therefore we refer this to determine the members of the executives we have made it open Regarding the responsibilities of the outside officers, what do you think about that? regarding the responsibilities of the outside officers what do you think about that We see the handling of the executives. we see the handling of the executives However, there are different treatments for officers and executives, I know there are background reasons. however there are different treatments for officers and executives i know there are background reasons Regarding the outside officials, what would you do? regarding the outside officials what would you do

Speaker 20: Including outside officials, responsibilities of the executives, we need to consider them even for the future. As you saw in today's presentation, you saw the change in the executive structure, and therefore, as you said already, in the future, we'd like to assign a person who has good experiences in the business management as well as the expertise in the accounting. We'd like to reinforce our top management structure, and this way, as you saw in the previous presentation, we'd like to establish the Responsibility Investigation Committee in the very near future, where we'd like to investigate how the person involved has taken his or her responsibilities legally. We'd like to investigate it. And based on that result, we'd like to take the robust actions. The target is not the former and current executives. All of the top executives should be covered by this investigation. Including outside officials, responsibilities of the executives, we need to consider them even for the future. As you saw in today's presentation, you saw the change in the executive structure, and therefore, as you said already, in the future, we'd like to assign a person who has good experiences in the business management as well as the expertise in the accounting. including outside officials responsibilities of the executives we need to consider them even for the future. as you saw in today's presentation you saw the change in the executive structure and therefore as you said already in the future we'd like to assign a person who has good experiences in the business management as well as the expertise in the accounting We'd like to reinforce our top management structure, and this way, as you saw in the previous presentation, we'd like to establish the Responsibility Investigation Committee in the very near future, where we'd like to investigate how the person involved has taken his or her responsibilities legally. we'd like to reinforce our top management structure and this way as you saw in the previous presentation we'd like to establish the responsibility investigation committee in the very near future where we'd like to investigate how the person involved has taken his or her responsibilities legally We'd like to investigate it. we'd like to investigate it And based on that result, we'd like to take the robust actions. and based on that result we'd like to take the robust actions The target is not the former and current executives. the target is not the former and current executives All of the top executives should be covered by this investigation. all of the top executives should be covered by this investigation In the future, we'd like to take these opportunities to explain the accountability and the legal responsibility objectively. In order to do that, we'd like to conduct good investigations. Sorry for being so persistent about it. However, regarding the existing executive with the, because of the commitment to the accounting accounts, depending on that, there are different treatments. For example, self-resignation as well as the suspension of the duty. These two applied to the overseas executives. Because of the local requirements, local legal requirements, we have to take these actions, and this is the reason. Those who resign him or herself, there were a severe commitment into the accounting misconduct. That's why he resigned on his own. I didn't understand what you'd like to know exactly. In the future, we'd like to take these opportunities to explain the accountability and the legal responsibility objectively. in the future we'd like to take these opportunities to explain the accountability and the legal responsibility objectively In order to do that, we'd like to conduct good investigations. in order to do that we'd like to conduct good investigations Sorry for being so persistent about it. sorry for being so persistent about it However, regarding the existing executive with the, because of the commitment to the accounting accounts, depending on that, there are different treatments. however regarding the existing executive with the because of the commitment to the accounting accounts depending on that there are different treatments For example, self-resignation as well as the suspension of the duty. for example self-resignation as well as the suspension of the duty These two applied to the overseas executives. these two applied to the overseas executives Because of the local requirements, local legal requirements, we have to take these actions, and this is the reason. because of the local requirements local legal requirements we have to take these actions and this is the reason Those who resign him or herself, there were a severe commitment into the accounting misconduct. those who resign him or herself there were a severe commitment into the accounting misconduct That's why he resigned on his own. that's why he resigned on his own I didn't understand what you'd like to know exactly. i didn't understand what you'd like to know exactly Regarding the suspension of the duty as well as the self-resignation, I believe that the influences are the same. That is our commission. As he mentioned, regarding the suspension of the duty, we have to comply with the local applicable laws and regulations. That's why we didn't say that in a self-resignation, because this is not in compliance with the local legal requirements. The next turn is for analysts. Regarding the suspension of the duty as well as the self-resignation, I believe that the influences are the same. regarding the suspension of the duty as well as the self-resignation i believe that the influences are the same That is our commission. that is our commission As he mentioned, regarding the suspension of the duty, we have to comply with the local applicable laws and regulations. as he mentioned regarding the suspension of the duty we have to comply with the local applicable laws and regulations That's why we didn't say that in a self-resignation, because this is not in compliance with the local legal requirements. that's why we didn't say that in a self-resignation because this is not in compliance with the local legal requirements The next turn is for analysts. the next turn is for analysts

Speaker 29: I'm Akizuki from Securities and Finance. I have two questions. First of all, this amount of ¥139.7 billion, you said there was no breakdown that you could share this time. I'm Akizuki from Securities and Finance. i'm akizuki from securities and finance I have two questions. i have two questions First of all, this amount of ¥ 139.7 billion, you said there was no breakdown that you could share this time. first of all this amount of ¥ 139.7 billion you said there was no breakdown that you could share this time On the other hand, the target of impairment loss is mainly from the automotive businesses, and therefore, this amount of ¥139.7 billion, in order to get a clearer image, if you can share the segments as well as the target businesses, if you can share those information, that really helpful. The other question is, in addition to the question one, this amount of ¥139.7 billion of assets, or the assets will be reduced because of the impairment loss. In addition to that additional ¥250 billion reduction happens, and then, I don't know the level of the profit. However, ROIC must be really high. Operating profit is right, and then, based on this prerequisite, ROIC should be very high because usually, especially for the manufacturing companies, your ROIC must be really higher than usual. On the other hand, the target of impairment loss is mainly from the automotive businesses, and therefore, this amount of ¥ 139.7 billion, in order to get a clearer image, if you can share the segments as well as the target businesses, if you can share those information, that really helpful. on the other hand the target of impairment loss is mainly from the automotive businesses and therefore this amount of ¥ 139.7 billion in order to get a clearer image if you can share the segments as well as the target businesses if you can share those information that really helpful The other question is, in addition to the question one, this amount of ¥ 139.7 billion of assets, or the assets will be reduced because of the impairment loss. the other question is in addition to the question one this amount of ¥ 139.7 billion of assets or the assets will be reduced because of the impairment loss In addition to that additional ¥ 250 billion reduction happens, and then, I don't know the level of the profit. in addition to that additional ¥ 250 billion reduction happens and then i don't know the level of the profit However, ROIC must be really high. however roic must be really high Operating profit is right, and then, based on this prerequisite, ROIC should be very high because usually, especially for the manufacturing companies, your ROIC must be really higher than usual. operating profit is right and then based on this prerequisite roic should be very high because usually especially for the manufacturing companies your roic must be really higher than usual Comparatively speaking, probably your impairment loss is too aggressive. That is the outside view. This is accounting treatment, and therefore, it can be arranged. I believe there are some people who are leaving the office. As a negative aspect, I believe there will be a future possibility for such assets to be calculated. How are you going to secure profitability in the future? Comparatively speaking, probably your impairment loss is too aggressive. comparatively speaking probably your impairment loss is too aggressive That is the outside view. that is the outside view This is accounting treatment, and therefore, it can be arranged. this is accounting treatment and therefore it can be arranged I believe there are some people who are leaving the office. i believe there are some people who are leaving the office As a negative aspect, I believe there will be a future possibility for such assets to be calculated. as a negative aspect i believe there will be a future possibility for such assets to be calculated How are you going to secure profitability in the future? how are you going to secure profitability in the future

Speaker 20: Nakagawa, please go ahead. Nakagawa, please go ahead. nakagawa please go ahead

Speaker 9: First of all, in terms of scale of profitability and in which area of businesses, please go to page 163 of the document. You can see the amounts in individual businesses. Small business, modern business, ¥1.3 billion. Attraction and AMEC Organic, ¥5.74 billion. ¥8.6 billion. AC, ¥15 point some of several billion yen. Group companies is ¥39.3 billion. That's the breakdown of ¥139.7 billion. You can see how much additional amount will be made based on this calculation. When it comes to ¥250 billion, which is the second amount, it's approximately ¥250 billion to be subject to financial impairment. First of all, in terms of scale of profitability and in which area of businesses, please go to page 163 of the document. first of all in terms of scale of profitability and in which area of businesses please go to page 163 of the document You can see the amounts in individual businesses. you can see the amounts in individual businesses Small business, modern business, ¥ 1.3 billion. small business modern business ¥ 1.3 billion Attraction and AMEC Organic, ¥ 5.74 billion. ¥ 8.6 billion. attraction and amec organic ¥ 5.74 billion ¥ 8.6 billion AC, ¥ 15 point some of several billion yen. ac ¥ 15 point some of several billion yen Group companies is ¥ 39.3 billion. group companies is ¥ 39.3 billion That's the breakdown of ¥ 139.7 billion. that's the breakdown of ¥ 139.7 billion You can see how much additional amount will be made based on this calculation. you can see how much additional amount will be made based on this calculation When it comes to ¥ 250 billion, which is the second amount, it's approximately ¥ 250 billion to be subject to financial impairment. when it comes to ¥ 250 billion which is the second amount it's approximately ¥ 250 billion to be subject to financial impairment We need to recalculate and reexamine the exact situation in detail to understand the exact amount of this, assets to be subject to the financial impairment. We need to go back in the past to understand a proper way of doing businesses, and we need to discuss with our auditors to come to conclusion. I'm not sure about this correctness of this term, aggressive or not aggressive, but these are what we are doing at. As has been explained by Mr. Kishida a few minutes ago, this is basically in a primarily in connection with the automotive business. If there is any financial impairment, and there was significant reduction in the future amount of such impairment, a goodwill is also included, if I may add. We need to recalculate and reexamine the exact situation in detail to understand the exact amount of this, assets to be subject to the financial impairment. we need to recalculate and reexamine the exact situation in detail to understand the exact amount of this assets to be subject to the financial impairment We need to go back in the past to understand a proper way of doing businesses, and we need to discuss with our auditors to come to conclusion. I'm not sure about this correctness of this term, aggressive or not aggressive, but these are what we are doing at. we need to go back in the past to understand a proper way of doing businesses and we need to discuss with our auditors to come to conclusion. i'm not sure about this correctness of this term aggressive or not aggressive but these are what we are doing at As has been explained by Mr. Kishida a few minutes ago, this is basically in a primarily in connection with the automotive business. as has been explained by mr kishida a few minutes ago this is basically in a primarily in connection with the automotive business If there is any financial impairment, and there was significant reduction in the future amount of such impairment, a goodwill is also included, if I may add. if there is any financial impairment and there was significant reduction in the future amount of such impairment a goodwill is also included if i may add

Speaker 15: Thank you very much. There is one more question from me. Thank you very much. thank you very much There is one more question from me. there is one more question from me

Speaker 29: You, I believe, announced the midterm business plan, the plan was unrealistic according to the comment by the third-party committee. You may not want to hear this, did you announce the midterm business plan realizing the plan itself will be unrealistic from the outsiders, those will be looked very aggressive. As an analyst, I thought part of the plan was rather unrealistic. As you announced the midterm business plan, objectively speaking, did you think that the plan was unrealistic, or did you accept the plan as such were you willing to achieve the target at that time? You, I believe, announced the midterm business plan, the plan was unrealistic according to the comment by the third-party committee. you i believe announced the midterm business plan the plan was unrealistic according to the comment by the third-party committee You may not want to hear this, did you announce the midterm business plan realizing the plan itself will be unrealistic from the outsiders, those will be looked very aggressive. you may not want to hear this did you announce the midterm business plan realizing the plan itself will be unrealistic from the outsiders those will be looked very aggressive As an analyst, I thought part of the plan was rather unrealistic. as an analyst i thought part of the plan was rather unrealistic As you announced the midterm business plan, objectively speaking, did you think that the plan was unrealistic, or did you accept the plan as such were you willing to achieve the target at that time? as you announced the midterm business plan objectively speaking did you think that the plan was unrealistic or did you accept the plan as such were you willing to achieve the target at that time

Speaker 20: That was a very deep question. Thank you very much for that. Far in the third-party committee's report, there is a reference to that from a different perspective. That was a very deep question. that was a very deep question Thank you very much for that. thank you very much for that Far in the third-party committee's report, there is a reference to that from a different perspective. far in the third-party committee's report there is a reference to that from a different perspective With respect to the midterm report we submitted, Mr. Nagamori said that it's a very conservative plan. Basically direction, we should have a slightly stretched target. Back then, we thought that if we stretch ourselves a little bit, we will be able to achieve the target. That's what I thought back then. I believe you understood some points we have made in the past. In addition to active investments, infrastructure in IS, for example, to connect information with other piece of information. Looking back now, I believe that. We have to cover more than 300 business bases, as has been explained by third-party committee. We need to build infrastructure to connect all of these bases. That was actually the basis of our midterm business plan. We believe that's part of our target at this moment as well. With respect to the midterm report we submitted, Mr. Nagamori said that it's a very conservative plan. with respect to the midterm report we submitted mr nagamori said that it's a very conservative plan Basically direction, we should have a slightly stretched target. basically direction we should have a slightly stretched target Back then, we thought that if we stretch ourselves a little bit, we will be able to achieve the target. back then we thought that if we stretch ourselves a little bit we will be able to achieve the target That's what I thought back then. that's what i thought back then I believe you understood some points we have made in the past. i believe you understood some points we have made in the past In addition to active investments, infrastructure in IS, for example, to connect information with other piece of information. in addition to active investments infrastructure in is for example to connect information with other piece of information Looking back now, I believe that. looking back now i believe that We have to cover more than 300 business bases, as has been explained by third-party committee. we have to cover more than 300 business bases as has been explained by third-party committee We need to build infrastructure to connect all of these bases. we need to build infrastructure to connect all of these bases That was actually the basis of our midterm business plan. that was actually the basis of our midterm business plan We believe that's part of our target at this moment as well. we believe that's part of our target at this moment as well When it comes to figures, given the current circumstances, we need to re-examine. We'll be able to provide you with the realistic figures in the future. When it comes to figures, given the current circumstances, we need to re-examine. when it comes to figures given the current circumstances we need to re-examine We'll be able to provide you with the realistic figures in the future. we'll be able to provide you with the realistic figures in the future

Speaker 29: That is all from me. Thank you. That is all from me. that is all from me Thank you. thank you

Speaker 11: Next person, someone from the mass media. From your right, the person up in the front, male person here. Next person, someone from the mass media. next person someone from the mass media From your right, the person up in the front, male person here. from your right the person up in the front male person here

Speaker 13: I'm Murai of Diamond Publishing. Thank you very much for your explanation. I'd like to ask you about Mr. Nagamori. He resigned the office from the chairperson emeritus. How is he now? When he became chairperson emeritus, he was a non-full-time executive. What is the difference between then and now? I believe the chairperson's office now is now gone. As chairperson emeritus, he was receiving a salary, but not anymore, I believe. What are we... I'm Murai of Diamond Publishing. i'm murai of diamond publishing Thank you very much for your explanation. thank you very much for your explanation I'd like to ask you about Mr. Nagamori. i'd like to ask you about mr nagamori He resigned the office from the chairperson emeritus. he resigned the office from the chairperson emeritus How is he now? how is he now When he became chairperson emeritus, he was a non-full-time executive. when he became chairperson emeritus he was a non-full-time executive What is the difference between then and now? what is the difference between then and now I believe the chairperson's office now is now gone. i believe the chairperson's office now is now gone As chairperson emeritus, he was receiving a salary, but not anymore, I believe. as chairperson emeritus he was receiving a salary but not anymore i believe What are we... what are we What are the major differences between then and now about Mr. Nagamori? What type of thoughts, feelings do you have now about this third-party committee's report? You have worked with Mr. Nagamori. You became president after being promoted by Mr. Nagamori after giving a positive e-evaluation by him. Now, Mr. Nagamori is being accused, criticized. You were taught by Mr. Nagamori in one way, I believe. What thoughts do you have about Mr. Nagamori? What are the major differences between then and now about Mr. Nagamori? what are the major differences between then and now about mr nagamori What type of thoughts, feelings do you have now about this third-party committee's report? what type of thoughts feelings do you have now about this third-party committee's report You have worked with Mr. Nagamori. you have worked with mr nagamori You became president after being promoted by Mr. Nagamori after giving a positive e-evaluation by him. you became president after being promoted by mr nagamori after giving a positive e-evaluation by him Now, Mr. Nagamori is being accused, criticized. now mr nagamori is being accused criticized You were taught by Mr. Nagamori in one way, I believe. you were taught by mr nagamori in one way i believe What thoughts do you have about Mr. Nagamori? what thoughts do you have about mr nagamori

Speaker 20: Thank you very much for your question. To Murai was superficial differences, physical differences between then and now about Mr. Nagamori is no longer a chairperson emeritus. He's no longer receiving money or salary from the company, and his former office, based on his will, is now being reorganized. Thank you very much for your question. thank you very much for your question To Murai was superficial differences, physical differences between then and now about Mr. Nagamori is no longer a chairperson emeritus. to murai was superficial differences physical differences between then and now about mr nagamori is no longer a chairperson emeritus He's no longer receiving money or salary from the company, and his former office, based on his will, is now being reorganized. he's no longer receiving money or salary from the company and his former office based on his will is now being reorganized It will be removed from the company to somewhere outside the company, in my understanding. That's the major physical changes between then and now about Mr. Nagamori. It's been four years since I joined Nidec. In the first year, I was overseas. I became working closely to him and having conversation with him only after I became president two years ago. In fact, he taught me a lot. In this company, it was totally different from my previous occupation. I learned a lot. I learned a lot about this company's corporate culture. I need to understand what to master. I received several important lessons from him. Now we have received this report from third-party committee, so it's a very candid, straightforward report about him. I honestly was surprised. It will be removed from the company to somewhere outside the company, in my understanding. it will be removed from the company to somewhere outside the company in my understanding That's the major physical changes between then and now about Mr. Nagamori. that's the major physical changes between then and now about mr nagamori It's been four years since I joined Nidec. it's been four years since i joined nidec In the first year, I was overseas. in the first year i was overseas I became working closely to him and having conversation with him only after I became president two years ago. i became working closely to him and having conversation with him only after i became president two years ago In fact, he taught me a lot. in fact he taught me a lot In this company, it was totally different from my previous occupation. in this company it was totally different from my previous occupation I learned a lot. i learned a lot I learned a lot about this company's corporate culture. i learned a lot about this company's corporate culture I need to understand what to master. i need to understand what to master I received several important lessons from him. i received several important lessons from him Now we have received this report from third-party committee, so it's a very candid, straightforward report about him. now we have received this report from third-party committee so it's a very candid straightforward report about him I honestly was surprised. i honestly was surprised My own mission, as I've said at the beginning of my presentation, is to unify very strong technological capabilities with sincerity of Nidec employees. We need to make this company more global and better company. I would like to dedicate myself for that purpose. That's what I have thought so far, and I'm going to have this thought more strong, strongly than before. Mr. Nagamori's, his office is gone, as you said. Going forward, in the past, Mr. Nagamori, as the founder of the company, he would like to visit the company, you know, sometimes when the timing is right, et cetera, as the founder of the company. My own mission, as I've said at the beginning of my presentation, is to unify very strong technological capabilities with sincerity of Nidec employees. my own mission as i've said at the beginning of my presentation is to unify very strong technological capabilities with sincerity of nidec employees We need to make this company more global and better company. we need to make this company more global and better company I would like to dedicate myself for that purpose. i would like to dedicate myself for that purpose That's what I have thought so far, and I'm going to have this thought more strong, strongly than before. that's what i have thought so far and i'm going to have this thought more strong strongly than before Mr. Nagamori's, his office is gone, as you said. mr nagamori's his office is gone as you said Going forward, in the past, Mr. Nagamori, as the founder of the company, he would like to visit the company, you know, sometimes when the timing is right, et cetera, as the founder of the company. going forward in the past mr nagamori as the founder of the company he would like to visit the company you know sometimes when the timing is right et cetera as the founder of the company

Speaker 13: Is there going to be such interactions between you and Mr. Nagamori going forward? It has been said there is no plan like that. Is there going to be such interactions between you and Mr. Nagamori going forward? is there going to be such interactions between you and mr nagamori going forward It has been said there is no plan like that. it has been said there is no plan like that When did you see Mr. Nagamori last time? When he quit, Chairman Emeritus, the morning of December the 19th, I was contacted by him. That was the end. That was the last time that I communicated with him. Are you going to meet with him? When did you see Mr. Nagamori last time? when did you see mr nagamori last time When he quit, Chairman Emeritus, the morning of December the 19th, I was contacted by him. when he quit chairman emeritus the morning of december the 19th i was contacted by him That was the end. that was the end That was the last time that I communicated with him. that was the last time that i communicated with him Are you going to meet with him? are you going to meet with him

Speaker 20: Not in my schedule is there such a plan to meet with him. Not in my schedule is there s uch a plan to meet with him. not in my schedule is there s uch a plan to meet with him

Speaker 11: Thank you. Someone in the audience? Don't. Someone in the front of mass media. From your left, second row. The fifth row. The lady over there. Thank you. thank you Someone in the audience? someone in the audience Don't. don't Someone in the front of mass media. someone in the front of mass media From your left, second row. from your left second row The fifth row. the fifth row The lady over there. the lady over there

Speaker 24: I'm Nagayo, TV Tokyo. I would like to give you two questions, Mr. Kishida. First of all, about the contents of the this midterm business report. What are you going to review, based on the third-party committee's report? I'm Nagayo, TV Tokyo. i'm nagayo tv tokyo I would like to give you two questions, Mr. Kishida. i would like to give you two questions mr kishida First of all, about the contents of the this midterm business report. first of all about the contents of the this midterm business report What are you going to review, based on the third-party committee's report? what are you going to review based on the third-party committee's report There are quite a few points made by the Third-Party Committee's report, the departure from Mr. Nagamori's business method among others. In addition to all the points you have made already, what are the additional points you would like to make as changes or improvement? There are quite a few points made by the Third-Party Committee's report, the departure from Mr. Nagamori's business method among others. there are quite a few points made by the third-party committee's report the departure from mr nagamori's business method among others In addition to all the points you have made already, what are the additional points you would like to make as changes or improvement? in addition to all the points you have made already what are the additional points you would like to make as changes or improvement

Speaker 20: Thank you very much. First of all, in the Third-Party Committee's report, we have this improvement plan. I believe the direction of the improvement plan has been endorsed. It's a very. That's something that is recognized very strongly. In addition to that, what we need to achieve is a shift from Mr. Nagamori's company to a different and a better company. We need to establish a process for the shift. That's the important mission, theme for us. It says Mr. Thank you very much. thank you very much First of all, in the Third-Party Committee's report, we have this improvement plan. first of all in the third-party committee's report we have this improvement plan I believe the direction of the improvement plan has been endorsed. i believe the direction of the improvement plan has been endorsed It's a very. it's a very That's something that is recognized very strongly. that's something that is recognized very strongly In addition to that, what we need to achieve is a shift from Mr. Nagamori's company to a different and a better company. in addition to that what we need to achieve is a shift from mr nagamori's company to a different and a better company We need to establish a process for the shift. we need to establish a process for the shift That's the important mission, theme for us. that's the important mission theme for us It says Mr. it says mr Nagamori in the third-party committee's report about, we as a company, we need to improve our corporate culture. We need to improve our corporate systems. That's our major and largest mission for us. Some of those actions may take time, but we need to do everything correctly. That's the center of our mission as we go forward. We'd like to brush up our improvement plan as we go forward. Nagamori in the third-party committee's report about, we as a company, we need to improve our corporate culture. nagamori in the third-party committee's report about we as a company we need to improve our corporate culture We need to improve our corporate systems. we need to improve our corporate systems That's our major and largest mission for us. that's our major and largest mission for us Some of those actions may take time, but we need to do everything correctly. some of those actions may take time but we need to do everything correctly That's the center of our mission as we go forward. that's the center of our mission as we go forward We'd like to brush up our improvement plan as we go forward. we'd like to brush up our improvement plan as we go forward Do you have anything else to add, Maesan? Do you have anything else to add, Maesan? do you have anything else to add maesan

Speaker 19: Mr. President, it's absolutely right. In addition, if I may add something, from the third-party committee report, there's a strong mention about, particular emphasis on the supremacy and restraint. I believe that's quite important. Especially our auditors and outside auditors and all the internal auditing department personnel, they would need to strengthen the governance within our company and work together, integrate, and to strengthen the problem awareness mindset. When they need support, those outside resources, needs to be available. That kind of working environment needs to be better prepared. We do recognize as a company, we need to create a better place to work, for those who are in charge of auditing activities. Mr. President, it's absolutely right. mr president it's absolutely right In addition, if I may add something, from the third-party committee report, there's a strong mention about, particular emphasis on the supremacy and restraint. in addition if i may add something from the third-party committee report there's a strong mention about particular emphasis on the supremacy and restraint I believe that's quite important. i believe that's quite important Especially our auditors and outside auditors and all the internal auditing department personnel, they would need to strengthen the governance within our company and work together, integrate, and to strengthen the problem awareness mindset. especially our auditors and outside auditors and all the internal auditing department personnel they would need to strengthen the governance within our company and work together integrate and to strengthen the problem awareness mindset When they need support, those outside resources, needs to be available. when they need support those outside resources needs to be available That kind of working environment needs to be better prepared. that kind of working environment needs to be better prepared We do recognize as a company, we need to create a better place to work, for those who are in charge of auditing activities. we do recognize as a company we need to create a better place to work for those who are in charge of auditing activities I myself as deeply feeling that we need to rely more heavily on outside directors' opinion and also we need to seek expert as well. Outside directors bears legal responsibility as well, also in this third-party dialogue, including audit, we need to strengthen these quality of review mention that we passed to auditing entities. That needs to be a part of improvement idea. I myself as deeply feeling that we need to rely more heavily on outside directors' opinion and also we need to seek expert as well. i myself as deeply feeling that we need to rely more heavily on outside directors' opinion and also we need to seek expert as well Outside directors bears legal responsibility as well, also in this third-party dialogue, including audit, we need to strengthen these quality of review mention that we passed to auditing entities. outside directors bears legal responsibility as well also in this third-party dialogue including audit we need to strengthen these quality of review mention that we passed to auditing entities That needs to be a part of improvement idea. that needs to be a part of improvement idea

Speaker 24: Thank you very much. Second question is Hirao-san mentioned in the third-party committee report that he has uncovered so many numbers of accounting mispractice, malpractice. Even under the significant pressure from Nagamori-san as the president for the entire company, this fraudulent accounting was a commonplace for the entire companies, it's become your entire corporate culture. I think that concept is already permeated within, ingrained in the companies. Thank you very much. thank you very much Second question is Hirao-san mentioned in the third-party committee report that he has uncovered so many numbers of accounting mispractice, malpractice. second question is hirao-san mentioned in the third-party committee report that he has uncovered so many numbers of accounting mispractice malpractice Even under the significant pressure from Nagamori-san as the president for the entire company, this fraudulent accounting was a commonplace for the entire companies, it's become your entire corporate culture. even under the significant pressure from nagamori-san as the president for the entire company this fraudulent accounting was a commonplace for the entire companies it's become your entire corporate culture I think that concept is already permeated within, ingrained in the companies. i think that concept is already permeated within ingrained in the companies Is that something you can change? I'm taking this report from the third-party committee quite seriously, I understand that from a long time in the past that this kind of accounting practice, wrong accounting practice, were done at many different sites of our companies. As a company, we must develop measures to prevent this kind of practice from happening ever again. To respond to the capital market and all the partners and all the suppliers and all of our stakeholders, we need to respond to their needs sincerely and taking this report firmly to come up with solid improvement ideas and act accordingly. President Kishida, this fraudulent accounting has taken a root already in your organization. What do you think about that? Are you aware of that? Is that something you can change? is that something you can change I'm taking this report from the third-party committee quite seriously, I understand that from a long time in the past that this kind of accounting practice, wrong accounting practice, were done at many different sites of our companies. i'm taking this report from the third-party committee quite seriously i understand that from a long time in the past that this kind of accounting practice wrong accounting practice were done at many different sites of our companies As a company, we must develop measures to prevent this kind of practice from happening ever again. as a company we must develop measures to prevent this kind of practice from happening ever again To respond to the capital market and all the partners and all the suppliers and all of our stakeholders, we need to respond to their needs sincerely and taking this report firmly to come up with solid improvement ideas and act accordingly. to respond to the capital market and all the partners and all the suppliers and all of our stakeholders we need to respond to their needs sincerely and taking this report firmly to come up with solid improvement ideas and act accordingly President Kishida, this fraudulent accounting has taken a root already in your organization. president kishida this fraudulent accounting has taken a root already in your organization What do you think about that? what do you think about that Are you aware of that? are you aware of that

Speaker 20: Well, there are many new discoveries for me after receiving this report. As a president and a CEO, I was not fully grasping the scope of this kind of practice taking place within our organization. I regret that quite seriously, I need to look at this fact straight on so that I can implement the improvement measures and systemize it so that we would never repeat this kind of incidents happen again. Now I'd like to take questions from the floor. Well, there are many new discoveries for me after receiving this report. well there are many new discoveries for me after receiving this report As a president and a CEO, I was not fully grasping the scope of this kind of practice taking place within our organization. as a president and a ceo i was not fully grasping the scope of this kind of practice taking place within our organization I regret that quite seriously, I need to look at this fact straight on so that I can implement the improvement measures and systemize it so that we would never repeat this kind of incidents happen again. i regret that quite seriously i need to look at this fact straight on so that i can implement the improvement measures and systemize it so that we would never repeat this kind of incidents happen again Now I'd like to take questions from the floor. now i'd like to take questions from the floor

Speaker 12: Hello, I'm Miyajima from Monthly FACTA. In the investigation report says what's the key for the improvement is outside directors, strengthening outside directors' governance. There are many outside directors they needed, and they didn't recognize there was such a significant pressure coming from the top of your organization. Hello, I'm Miyajima from Monthly FACTA. hello i'm miyajima from monthly facta In the investigation report says what's the key for the improvement is outside directors, strengthening outside directors' governance. in the investigation report says what's the key for the improvement is outside directors strengthening outside directors' governance There are many outside directors they needed, and they didn't recognize there was such a significant pressure coming from the top of your organization. there are many outside directors they needed and they didn't recognize there was such a significant pressure coming from the top of your organization Regarding this significant amount of negative legacies, they weren't aware of that either. I think they were not doing their job. It's clearly, their dereliction of duty. I think you need to clarify the kind of penalties that you'd be requesting to the outside directors because they were not doing their job. I don't think otherwise you can start your revitalization process in a proper way. I think they need to file their resignation letters or, all these retirees from tax agencies and the Ministry of Finance, all those people, they have created some group of superpowers. That's what the report says. One more thing. The presidents were, back then, before you, were reporting to the chairperson, but they're being ignored. Regarding this significant amount of negative legacies, they weren't aware of that either. regarding this significant amount of negative legacies they weren't aware of that either I think they were not doing their job. i think they were not doing their job It's clearly, their dereliction of duty. it's clearly their dereliction of duty I think you need to clarify the kind of penalties that you'd be requesting to the outside directors because they were not doing their job. i think you need to clarify the kind of penalties that you'd be requesting to the outside directors because they were not doing their job I don't think otherwise you can start your revitalization process in a proper way. i don't think otherwise you can start your revitalization process in a proper way I think they need to file their resignation letters or, all these retirees from tax agencies and the Ministry of Finance, all those people, they have created some group of superpowers. i think they need to file their resignation letters or all these retirees from tax agencies and the ministry of finance all those people they have created some group of superpowers That's what the report says. that's what the report says One more thing. one more thing The presidents were, back then, before you, were reporting to the chairperson, but they're being ignored. the presidents were back then before you were reporting to the chairperson but they're being ignored At that time, usually president should consult with outside directors, but they weren't doing that. That's a wrong governance. Governance is not working. This is really equals to a breach of the outside director's duty. It's they're not doing breach of a duty of care. I would like to clarify about the kind of penalties that you need to impose to those people who are not doing their jobs. Usually, when a company faces serious incidents like this, usually directors goes to outside director for consulting, but didn't happen. At that time, usually president should consult with outside directors, but they weren't doing that. at that time usually president should consult with outside directors but they weren't doing that That's a wrong governance. that's a wrong governance Governance is not working. governance is not working This is really equals to a breach of the outside director's duty. this is really equals to a breach of the outside director's duty It's they're not doing breach of a duty of care. it's they're not doing breach of a duty of care I would like to clarify about the kind of penalties that you need to impose to those people who are not doing their jobs. i would like to clarify about the kind of penalties that you need to impose to those people who are not doing their jobs Usually, when a company faces serious incidents like this, usually directors goes to outside director for consulting, but didn't happen. usually when a company faces serious incidents like this usually directors goes to outside director for consulting but didn't happen

Speaker 20: Thank you very much for you to point out this very important point. It's very serious. I myself do recognize that I need to consult and leverage our experts, outside directors' opinions. Thank you very much for you to point out this very important point. thank you very much for you to point out this very important point It's very serious. it's very serious I myself do recognize that I need to consult and leverage our experts, outside directors' opinions. i myself do recognize that i need to consult and leverage our experts outside directors' opinions As this report mentions, the quality of information that our companies were providing to the outside directors were not all that great. Didn't raise the alert concerning mindsets amongst outside directors. I myself did not act enough to seek support from outside directors. All the directors included, including outside and full-time, including legal responsibilities, we would investigate what kind of penalties needs to be imposed once we establish the Responsibility Investigation Committee, including legal responsibility too. Thank you. As this report mentions, the quality of information that our companies were providing to the outside directors were not all that great. as this report mentions the quality of information that our companies were providing to the outside directors were not all that great Didn't raise the alert concerning mindsets amongst outside directors. didn't raise the alert concerning mindsets amongst outside directors I myself did not act enough to seek support from outside directors. i myself did not act enough to seek support from outside directors All the directors included, including outside and full-time, including legal responsibilities, we would investigate what kind of penalties needs to be imposed once we establish the Responsibility Investigation Committee, including legal responsibility too. all the directors included including outside and full-time including legal responsibilities we would investigate what kind of penalties needs to be imposed once we establish the responsibility investigation committee including legal responsibility too Thank you. thank you

Speaker 40: Thank you very much. I'm Furukawa from Bloomberg. I have two questions to President Kishida. Before you start this press release, this Securities Investigation Surveillance Commission announced that there's been a possible infringement. It may even violate the Financial Instruments and Exchange Act. Thank you very much. thank you very much I'm Furukawa from Bloomberg. i'm furukawa from bloomberg I have two questions to President Kishida. i have two questions to president kishida Before you start this press release, this Securities Investigation Surveillance Commission announced that there's been a possible infringement. before you start this press release this securities investigation surveillance commission announced that there's been a possible infringement It may even violate the Financial Instruments and Exchange Act. it may even violate the financial instruments and exchange act Third-party investigation committee, Hiroshi mentioned that there is a misrepresentation in the statements in the Yuho as well. Is that your understanding as well? Regarding the first point of the questions, I have no ideas about us infringing this Financial Instruments and Exchange Act. I will look up this report and to confirm what is the situation, what's the claim. Second point regarding Yuho's security reports. Are we going to go back to the past report and make the revision? As Committee Chair Hirao mentioned, I do recognize that when the Yuho needs to be revised, we will. We need to. After receiving this time's investigation report, once we know the amount and the timing of the revision necessary, we would like to conduct a change. Third-party investigation committee, Hiroshi mentioned that there is a misrepresentation in the statements in the Yuho as well. third-party investigation committee hiroshi mentioned that there is a misrepresentation in the statements in the yuho as well Is that your understanding as well? is that your understanding as well Regarding the first point of the questions, I have no ideas about us infringing this Financial Instruments and Exchange Act. regarding the first point of the questions i have no ideas about us infringing this financial instruments and exchange act I will look up this report and to confirm what is the situation, what's the claim. i will look up this report and to confirm what is the situation what's the claim Second point regarding Yuho's security reports. second point regarding yuho's security reports Are we going to go back to the past report and make the revision? are we going to go back to the past report and make the revision As Committee Chair Hirao mentioned, I do recognize that when the Yuho needs to be revised, we will. as committee chair hirao mentioned i do recognize that when the yuho needs to be revised we will We need to. we need to After receiving this time's investigation report, once we know the amount and the timing of the revision necessary, we would like to conduct a change. after receiving this time's investigation report once we know the amount and the timing of the revision necessary we would like to conduct a change You think that the current misconduct would require changes to the Yuho security report? If necessary, we will. Thank you. The second question, regarding these currently implementing various reform because you are determined to maintain being listed. I would like to ask, Mr. President, do you think that being a listed company is essential? If so, why? You think that the current misconduct would require changes to the Yuho security report? you think that the current misconduct would require changes to the yuho security report If necessary, we will. if necessary we will Thank you. thank you The second question, regarding these currently implementing various reform because you are determined to maintain being listed. the second question regarding these currently implementing various reform because you are determined to maintain being listed I would like to ask, Mr. President, do you think that being a listed company is essential? i would like to ask mr president do you think that being a listed company is essential If so, why? if so why

Speaker 20: Thank you for your questions. I myself and for the company today, for October 20th's report that we need to file to the authorities, is we are working to get delisted from the security, our stock as a Security on Special Alert. There are certain choices of going private too, and I think some companies who are in a similar troubles did consider such measures too. Thank you for your questions. thank you for your questions I myself and for the company today, for October 20th's report that we need to file to the authorities, is we are working to get delisted from the security, our stock as a Security on Special Alert. i myself and for the company today for october 20th's report that we need to file to the authorities is we are working to get delisted from the security our stock as a security on special alert There are certain choices of going private too, and I think some companies who are in a similar troubles did consider such measures too. there are certain choices of going private too and i think some companies who are in a similar troubles did consider such measures too At the moment, we are designated as a Security on Special Alert, our first effort is to be delisted, dedesignated as a Security on Special Alert. I'm sorry. My whole question is the reason for maintaining the listing in the stock exchange. What is the real reason? We maintain large extensive fundraising capabilities and also resulting in a broader business canvas, I'll say. If you have anything else to add, please. At the moment, we are designated as a Security on Special Alert, our first effort is to be delisted, dedesignated as a Security on Special Alert. at the moment we are designated as a security on special alert our first effort is to be delisted dedesignated as a security on special alert I'm sorry. i'm sorry My whole question is the reason for maintaining the listing in the stock exchange. my whole question is the reason for maintaining the listing in the stock exchange What is the real reason? what is the real reason We maintain large extensive fundraising capabilities and also resulting in a broader business canvas, I'll say. we maintain large extensive fundraising capabilities and also resulting in a broader business canvas i'll say If you have anything else to add, please. if you have anything else to add please

Speaker 40: I'm okay. Thank you. You are comprehensive. I'm okay. i'm okay Thank you. thank you You are comprehensive. you are comprehensive

Speaker 26: Hello, I'm Sei from Asahi Newspapers. I would like to ask questions regard to confirm. Chairperson Kobe and four others are resigning on the press release, but resigning from the position but will still have a position in the company. They all resign from the company. Hello, I'm Sei from Asahi Newspapers. hello i'm sei from asahi newspapers I would like to ask questions regard to confirm. i would like to ask questions regard to confirm Chairperson Kobe and four others are resigning on the press release, but resigning from the position but will still have a position in the company. chairperson kobe and four others are resigning on the press release but resigning from the position but will still have a position in the company They all resign from the company. they all resign from the company They still do have some roles in the subsidiaries. Including those roles as subsidiary, they would exit from our group. They don't have any seats in your company as of today. Correct. Thank you. My next question is regarding the legal responsibility of your directors. To pursue that, you will establish the Responsibility Investigation Committee. You said swiftly. By when you are going to launch that, and what kind of study this Responsibility Investigation Committee will study? What will be the scope? Would Nagamori-san be a part of the investigation as well? They still do have some roles in the subsidiaries. they still do have some roles in the subsidiaries Including those roles as subsidiary, they would exit from our group. including those roles as subsidiary they would exit from our group They don't have any seats in your company as of today. they don't have any seats in your company as of today Correct. correct Thank you. thank you My next question is regarding the legal responsibility of your directors. my next question is regarding the legal responsibility of your directors To pursue that, you will establish the Responsibility Investigation Committee. to pursue that you will establish the responsibility investigation committee You said swiftly. you said swiftly By when you are going to launch that, and what kind of study this Responsibility Investigation Committee will study? by when you are going to launch that and what kind of study this responsibility investigation committee will study What will be the scope? what will be the scope Would Nagamori-san be a part of the investigation as well? would nagamori-san be a part of the investigation as well

Speaker 20: Let me give it a first try in answering it. Please get provide additional information. Now that we are receiving this external party, third party's committee report, Existing and the past director executive officers. Let me give it a first try in answering it. let me give it a first try in answering it Please get provide additional information. please get provide additional information Now that we are receiving this external party, third party's committee report, Existing and the past director executive officers. now that we are receiving this external party third party's committee report existing and the past director executive officers We will study the legal responsibility of those management levels, including the opinions from outside experts, with objective viewpoint. We are already selecting the nominees, people's makeup, for this investigation committee. Responsibility Investigation Committee. As long as we know more, we will share it with you. We will study the legal responsibility of those management levels, including the opinions from outside experts, with objective viewpoint. we will study the legal responsibility of those management levels including the opinions from outside experts with objective viewpoint We are already selecting the nominees, people's makeup, for this investigation committee. we are already selecting the nominees people's makeup for this investigation committee Responsibility Investigation Committee. responsibility investigation committee As long as we know more, we will share it with you. as long as we know more we will share it with you

Speaker 26: Are you going to possibly file for possible damages before possibly face a claim for something that is driven by shareholders? Class lawsuit. Thank you. We are considering various options. One more questions. In this report, there was comments about President Kishida regarding the settlement of negative liabilities, process of negative liabilities. In 2024, Kishida-san mentioned to Nagamori-san about the need to process negative legacies many times, but Nagamori-san said, "No." What does that mean? What really happened, Kishida-san? Are you going to possibly file for possible damages before possibly face a claim for something that is driven by shareholders? are you going to possibly file for possible damages before possibly face a claim for something that is driven by shareholders Class lawsuit. class lawsuit Thank you. thank you We are considering various options. we are considering various options One more questions. one more questions In this report, there was comments about President Kishida regarding the settlement of negative liabilities, process of negative liabilities. in this report there was comments about president kishida regarding the settlement of negative liabilities process of negative liabilities In 2024, Kishida-san mentioned to Nagamori-san about the need to process negative legacies many times, but Nagamori-san said, "No." What does that mean? in 2024 kishida-san mentioned to nagamori-san about the need to process negative legacies many times but nagamori-san said "no." what does that mean What really happened, Kishida-san? what really happened kishida-san Would you please explain with your own words? Would you please explain with your own words? would you please explain with your own words

Speaker 20: Thank you very much for your question. What is negative legacy? That's something that we explained already. It's not that the entire negative legacy equals all the misconduct in accounting practice. I myself, since I joined this company, regarding the businesses that I was leading, had a certain structural reform. At that time, I didn't know there were over 300 subsidiaries. Back then, various businesses there, we had to consolidate some of the manufacturing plants. That need was definitely there as a business unit leader. Under this slogan of structural reform, I kept mentioning about the need of that many times to Mr. Nagamori. Thank you very much for your question. thank you very much for your question What is negative legacy? what is negative legacy That's something that we explained already. that's something that we explained already It's not that the entire negative legacy equals all the misconduct in accounting practice. it's not that the entire negative legacy equals all the misconduct in accounting practice I myself, since I joined this company, regarding the businesses that I was leading, had a certain structural reform. i myself since i joined this company regarding the businesses that i was leading had a certain structural reform At that time, I didn't know there were over 300 subsidiaries. at that time i didn't know there were over 300 subsidiaries Back then, various businesses there, we had to consolidate some of the manufacturing plants. back then various businesses there we had to consolidate some of the manufacturing plants That need was definitely there as a business unit leader. that need was definitely there as a business unit leader Under this slogan of structural reform, I kept mentioning about the need of that many times to Mr. Nagamori. under this slogan of structural reform i kept mentioning about the need of that many times to mr nagamori This time, the third party's committee report mentions is about the one of Nidec's business, about the automotive business regarding the processing of a structural reform outside our operating profit layers. It will be the extraordinary loss, if any. It won't be within the OP, above the OP line. It will be outside this, you know, OP target under this enormous pressure. A part of what should've been processed was not something that was executed within that given fiscal year. That's what I mentioned. This time, the third party's committee report mentions is about the one of Nidec's business, about the automotive business regarding the processing of a structural reform outside our operating profit layers. this time the third party's committee report mentions is about the one of nidec's business about the automotive business regarding the processing of a structural reform outside our operating profit layers It will be the extraordinary loss, if any. it will be the extraordinary loss if any It won't be within the OP, above the OP line. it won't be within the op above the op line It will be outside this, you know, OP target under this enormous pressure. it will be outside this you know op target under this enormous pressure A part of what should've been processed was not something that was executed within that given fiscal year. a part of what should've been processed was not something that was executed within that given fiscal year That's what I mentioned. that's what i mentioned

Speaker 16: Whether everything is a result of the accounting misconducts or not, it's not clear. As a result of all of these activities, there are legacy liabilities. Whether everything is a result of the accounting misconducts or not, it's not clear. whether everything is a result of the accounting misconducts or not it's not clear As a result of all of these activities, there are legacy liabilities. as a result of all of these activities there are legacy liabilities

Speaker 26: You are aware of that as the person in charge of the businesses, and therefore, what kind of wording or phrases did you use to appeal for the necessity to disposal? Can you please explain the situation? You are aware of that as the person in charge of the businesses, and therefore, what kind of wording or phrases did you use to appeal for the necessity to disposal? you are aware of that as the person in charge of the businesses and therefore what kind of wording or phrases did you use to appeal for the necessity to disposal Can you please explain the situation? can you please explain the situation

Speaker 20: Regarding the situation, including interviews and the forensics, this is part of the investigation, therefore actually seen, and now what kind of discussions went on, everything was captured in the report by the investigation committee, and therefore there's nothing I have to add or I can add. Regarding the situation, including interviews and the forensics, this is part of the investigation, therefore actually seen, and now what kind of discussions went on, everything was captured in the report by the investigation committee, and therefore there's nothing I have to add or I can add. regarding the situation including interviews and the forensics this is part of the investigation therefore actually seen and now what kind of discussions went on everything was captured in the report by the investigation committee and therefore there's nothing i have to add or i can add

Speaker 11: Sorry, please limit yourself only to two questions. All right. Thank you very much. The person in the front row here. Sorry, please limit yourself only to two questions. sorry please limit yourself only to two questions All right. all right Thank you very much. thank you very much The person in the front row here. the person in the front row here

Speaker 2: I'm Takeuchi from NHK. I'm Takeuchi from NHK. i'm takeuchi from nhk Thank you very much for this opportunity. Including Mr. Kobe, there were four people who resigned the company. This time, regarding Mr. Kobe, based on the points identified by the third party committee, Mr. Kobe should be regarded that he was aware of the misconduct, accounting misconduct in the planned manner. That's why this treatment was given. However, including other executives and officials regarding this fraudulent accounting as well as the recognition of those misconducts, did they recognize all of them? Because now there are high involvement, and that's why these people had to resign the company. Thank you very much for this opportunity. thank you very much for this opportunity Including Mr. Kobe, there were four people who resigned the company. including mr kobe there were four people who resigned the company This time, regarding Mr. Kobe, based on the points identified by the third party committee, Mr. Kobe should be regarded that he was aware of the misconduct, accounting misconduct in the planned manner. this time regarding mr kobe based on the points identified by the third party committee mr kobe should be regarded that he was aware of the misconduct accounting misconduct in the planned manner That's why this treatment was given. that's why this treatment was given However, including other executives and officials regarding this fraudulent accounting as well as the recognition of those misconducts, did they recognize all of them? however including other executives and officials regarding this fraudulent accounting as well as the recognition of those misconducts did they recognize all of them Because now there are high involvement, and that's why these people had to resign the company. because now there are high involvement and that's why these people had to resign the company

Speaker 20: Thank you very much for your question. Regarding the report issued by the third-party committee, if you see the actual name, all of them are basically the executives and therefore non-executives such as the officers. I cannot explain the specific descriptions. However, as the executive side, we reviewed the contents of the report, and based on that, we made this decision, and we have shared that decision today. Thank you very much. The other point. Thank you very much for your question. thank you very much for your question Regarding the report issued by the third-party committee, if you see the actual name, all of them are basically the executives and therefore non-executives such as the officers. regarding the report issued by the third-party committee if you see the actual name all of them are basically the executives and therefore non-executives such as the officers I cannot explain the specific descriptions. i cannot explain the specific descriptions However, as the executive side, we reviewed the contents of the report, and based on that, we made this decision, and we have shared that decision today. however as the executive side we reviewed the contents of the report and based on that we made this decision and we have shared that decision today Thank you very much. thank you very much The other point. the other point

Speaker 2: Regarding President Kishida, you made the recommendations over and over again to Mr. Nagamori. Despite of those, the repetitious recommendations, all of your requests were turned down. How did you feel back then? After being turned down your requests, there was nothing conducted. Therefore, even though it's the kind of the objection opposition to Mr. Nagamori's intention, however, you had to proceed with the proceeding according to the report by the third-party investigation committee. What did you think? What do you think? Regarding President Kishida, you made the recommendations over and over again to Mr. Nagamori. regarding president kishida you made the recommendations over and over again to mr nagamori Despite of those, the repetitious recommendations, all of your requests were turned down. despite of those the repetitious recommendations all of your requests were turned down How did you feel back then? how did you feel back then After being turned down your requests, there was nothing conducted. after being turned down your requests there was nothing conducted Therefore, even though it's the kind of the objection opposition to Mr. Nagamori's intention, however, you had to proceed with the proceeding according to the report by the third-party investigation committee. therefore even though it's the kind of the objection opposition to mr nagamori's intention however you had to proceed with the proceeding according to the report by the third-party investigation committee What did you think? what did you think What do you think? what do you think

Speaker 20: Thank you very much for your question. Right now, I would deeply regret that, and I should go furthermore, because for four years after joining Nidec, I tried to normalize the asset quality of the company toward the future sound operation of the assets. Thank you very much for your question. thank you very much for your question Right now, I would deeply regret that, and I should go furthermore, because for four years after joining Nidec, I tried to normalize the asset quality of the company toward the future sound operation of the assets. right now i would deeply regret that and i should go furthermore because for four years after joining nidec i tried to normalize the asset quality of the company toward the future sound operation of the assets I'd like to lay the foundation for the future growth. Every time, everything I tried to do was not executed. I had to go deeper to give the in-depth insights, probably, or I should have been able to do something more. This is very regrettable. In order to prevent such things from happening in the future, I'd like to make my resolution anew. Thank you very much. I'd like to lay the foundation for the future growth. i'd like to lay the foundation for the future growth Every time, everything I tried to do was not executed. every time everything i tried to do was not executed I had to go deeper to give the in-depth insights, probably, or I should have been able to do something more. i had to go deeper to give the in-depth insights probably or i should have been able to do something more This is very regrettable. this is very regrettable In order to prevent such things from happening in the future, I'd like to make my resolution anew. in order to prevent such things from happening in the future i'd like to make my resolution anew Thank you very much. thank you very much

Speaker 11: The person over there in pink shirt. The person over there in pink shirt. the person over there in pink shirt

Speaker 43: I'm Takaoka from Nikkei xTECH. Regarding the selection of Mr. Nagamori, is to nurture the copy of Mr. Nagamori, and that is the process for promotion. That concept is represented by President Kishida sitting over there. I'm Takaoka from Nikkei xTECH. i'm takaoka from nikkei xtech Regarding the selection of Mr. Nagamori, is to nurture the copy of Mr. Nagamori, and that is the process for promotion. regarding the selection of mr nagamori is to nurture the copy of mr nagamori and that is the process for promotion That concept is represented by President Kishida sitting over there. that concept is represented by president kishida sitting over there Because there are many Nagamori, or the copied Nagamoris, mainly the executives and officials, and then, there are many people still remain in the company. Therefore, I wonder whether you can eliminate all of the misconduct, including fraud accounting. Now there is no more Mr. Nagamori. Still, Nidec can maintain a high profitability by growing furthermore, both at the top line and the bottom line. Because there are many Nagamori, or the copied Nagamoris, mainly the executives and officials, and then, there are many people still remain in the company. because there are many nagamori or the copied nagamoris mainly the executives and officials and then there are many people still remain in the company Therefore, I wonder whether you can eliminate all of the misconduct, including fraud accounting. therefore i wonder whether you can eliminate all of the misconduct including fraud accounting Now there is no more Mr. Nagamori. now there is no more mr nagamori Still, Nidec can maintain a high profitability by growing furthermore, both at the top line and the bottom line. still nidec can maintain a high profitability by growing furthermore both at the top line and the bottom line

Speaker 20: Thank you very much for your question. I take the situation quite seriously. Of course, now the company should be business concerned, and therefore can we eliminate anything totally to move on to the next step. It's impossible because there are something we have to inherit, especially in the manufacturing company, and therefore, we have to make the selection and concentration to determine what we have to take over. Thank you very much for your question. thank you very much for your question I take the situation quite seriously. i take the situation quite seriously Of course, now the company should be business concerned, and therefore can we eliminate anything totally to move on to the next step. of course now the company should be business concerned and therefore can we eliminate anything totally to move on to the next step It's impossible because there are something we have to inherit, especially in the manufacturing company, and therefore, we have to make the selection and concentration to determine what we have to take over. it's impossible because there are something we have to inherit especially in the manufacturing company and therefore we have to make the selection and concentration to determine what we have to take over I believe we can achieve the high profitability. I myself would like to stick to that concept. I believe we can turn Nidec highly profitable company once again. You have to set a high target, otherwise you cannot expect growth. How you define the high target regarding the growth, if the target is high enough, can we achieve that high target? No way, because we are manufacturing company. We have to sophisticate our technologies through the discussions and dialogues with our customers. We can generate something new, totally new that has not yet existed in the world. We have to generate such noble products. In order to do that, we have to develop our technologies and human talents. I believe we can achieve the high profitability. i believe we can achieve the high profitability I myself would like to stick to that concept. i myself would like to stick to that concept I believe we can turn Nidec highly profitable company once again. i believe we can turn nidec highly profitable company once again You have to set a high target, otherwise you cannot expect growth. you have to set a high target otherwise you cannot expect growth How you define the high target regarding the growth, if the target is high enough, can we achieve that high target? how you define the high target regarding the growth if the target is high enough can we achieve that high target No way, because we are manufacturing company. no way because we are manufacturing company We have to sophisticate our technologies through the discussions and dialogues with our customers. we have to sophisticate our technologies through the discussions and dialogues with our customers We can generate something new, totally new that has not yet existed in the world. we can generate something new totally new that has not yet existed in the world We have to generate such noble products. we have to generate such noble products In order to do that, we have to develop our technologies and human talents. in order to do that we have to develop our technologies and human talents I believe that Nidec can be the highly profitable company after rebirth. I believe that Nidec can be the highly profitable company after rebirth. i believe that nidec can be the highly profitable company after rebirth

Speaker 43: It's interesting. However, there are many impairment loss related to the automotive business, and I believe this is actually related to E-Axle. What is the actual situation of E-Axle right now? It's a rumor, however, you have stopped new development. I don't know whether it's fact or not. Right now, this E-Axle, as part of the automotive business, can you please explain that? Because we see so much development in the EV. Did you see the sales increase or the increase of the production units? There was no such announcement, I'd like to know the current status of the E-Axle. It's interesting. it's interesting However, there are many impairment loss related to the automotive business, and I believe this is actually related to E-Axle. however there are many impairment loss related to the automotive business and i believe this is actually related to e-axle What is the actual situation of E-Axle right now? what is the actual situation of e-axle right now It's a rumor, however, you have stopped new development. it's a rumor however you have stopped new development I don't know whether it's fact or not. i don't know whether it's fact or not Right now, this E-Axle, as part of the automotive business, can you please explain that? right now this e-axle as part of the automotive business can you please explain that Because we see so much development in the EV. because we see so much development in the ev Did you see the sales increase or the increase of the production units? did you see the sales increase or the increase of the production units There was no such announcement, I'd like to know the current status of the E-Axle. there was no such announcement i'd like to know the current status of the e-axle

Speaker 20: Thank you very much for your question. There are mainly two sites for the businesses of the E-Axle. Thank you very much for your question. thank you very much for your question There are mainly two sites for the businesses of the E-Axle. there are mainly two sites for the businesses of the e-axle One is at the joint venture or NPE. This is a joint venture with Stellantis, where the manufacturing and the business development were done for E-Axle. The other site is in the joint venture with Kaisha Kisha in China. We call this company GACC. Joint venture of GACC is the other manufacturing site for E-Axle. Regarding the production in China, as of today, Japanese company related to the joint venture of the government of a Chinese company. Right now production level has been stabilized, and therefore, based on this site in China, probably Japanese company or Indian company can be a partner to develop new products for our customers. One is at the joint venture or NPE. one is at the joint venture or npe This is a joint venture with Stellantis, where the manufacturing and the business development were done for E-Axle. this is a joint venture with stellantis where the manufacturing and the business development were done for e-axle The other site is in the joint venture with Kaisha Kisha in China. the other site is in the joint venture with kaisha kisha in china We call this company GACC. we call this company gacc Joint venture of GACC is the other manufacturing site for E-Axle. joint venture of gacc is the other manufacturing site for e-axle Regarding the production in China, as of today, Japanese company related to the joint venture of the government of a Chinese company. regarding the production in china as of today japanese company related to the joint venture of the government of a chinese company Right now production level has been stabilized, and therefore, based on this site in China, probably Japanese company or Indian company can be a partner to develop new products for our customers. right now production level has been stabilized and therefore based on this site in china probably japanese company or indian company can be a partner to develop new products for our customers

Speaker 43: You still work on new development, is that right? You still work on new development, is that right? you still work on new development is that right

Speaker 20: That's right. We don't discontinue the new product development. That's right. that's right We don't discontinue the new product development. we don't discontinue the new product development Thank you very much. The person in the third row over there. Thank you very much. thank you very much The person in the third row over there. the person in the third row over there

Speaker 16: The second from the right. Yes. Thank you very much for raising your hand. The second from the right. the second from the right Yes. yes Thank you very much for raising your hand. thank you very much for raising your hand

Speaker 1: I'm Tokuda from Toyo Keizai. Thank you very much. First of all, as you mentioned, there were five officials resigning the company. Because their influences, negative influences over the corporate culture will be huge, that's why company has determined to ask them to leave the company. Is that right? I'm Tokuda from Toyo Keizai. i'm tokuda from toyo keizai Thank you very much. thank you very much First of all, as you mentioned, there were five officials resigning the company. first of all as you mentioned there were five officials resigning the company Because their influences, negative influences over the corporate culture will be huge, that's why company has determined to ask them to leave the company. because their influences negative influences over the corporate culture will be huge that's why company has determined to ask them to leave the company Is that right? is that right

Speaker 20: Yes. The people who resigned the company this time, it's a result of our managerial decision, because their influences are quite huge. Regarding the operation of the business, they have had high influence over the businesses and in order to change our operations in a new way, their resignation is essential, and that is the business management by considering many things comprehensively. Yes. yes The people who resigned the company this time, it's a result of our managerial decision, because their influences are quite huge. the people who resigned the company this time it's a result of our managerial decision because their influences are quite huge Regarding the operation of the business, they have had high influence over the businesses and in order to change our operations in a new way, their resignation is essential, and that is the business management by considering many things comprehensively. regarding the operation of the business they have had high influence over the businesses and in order to change our operations in a new way their resignation is essential and that is the business management by considering many things comprehensively

Speaker 1: Thank you very much. Next, I'd like to ask about the future generation, because pruning may happen. Thank you very much. thank you very much Next, I'd like to ask about the future generation, because pruning may happen. next i'd like to ask about the future generation because pruning may happen However, thanks to M&A, you have grown this much. However, when I refer the improvement plan, you said regrettably that the management of many M&As were poor and therefore, for the future, you have to be lean. Do you do anything to be a more lean organization, including BUs and the sites? However, thanks to M&A, you have grown this much. however thanks to m&a you have grown this much However, when I refer the improvement plan, you said regrettably that the management of many M&As were poor and therefore, for the future, you have to be lean. however when i refer the improvement plan you said regrettably that the management of many m&as were poor and therefore for the future you have to be lean Do you do anything to be a more lean organization, including BUs and the sites? do you do anything to be a more lean organization including bus and the sites

Speaker 20: Thank you very much for your question. I believe previous question is quite similar to yours. In our midterm plan, further, bigger scales M&A and then a further, growth should be there. Before that, we have to integrate and eliminate unnecessary manufacturing sites and the businesses to be more lean. In addition to that, we have to make a system investment, and then we can put together necessary information that should be the basis for the future growth. That is our intention. You can see that policy in the report. Thank you very much for your question. thank you very much for your question I believe previous question is quite similar to yours. i believe previous question is quite similar to yours In our midterm plan, further, bigger scales M&A and then a further, growth should be there. in our midterm plan further bigger scales m&a and then a further growth should be there Before that, we have to integrate and eliminate unnecessary manufacturing sites and the businesses to be more lean. before that we have to integrate and eliminate unnecessary manufacturing sites and the businesses to be more lean In addition to that, we have to make a system investment, and then we can put together necessary information that should be the basis for the future growth. in addition to that we have to make a system investment and then we can put together necessary information that should be the basis for the future growth That is our intention. that is our intention You can see that policy in the report. you can see that policy in the report Even after receiving the investigation committee report, this policy will be maintained. When I look at the message of Mr. Nagamori as the Chairperson Emeritus, he will work on the human development as one of the dreams. As Nidec, he will still be involved in the human developments, or there's no involvement how Mr. Nagamori will be involved or not involved regarding the human development at Nidec. It's not their intention. He has the schools and the other educational organizations, and therefore, we assume that now he will focus on these institutions, not Nidec. Even after receiving the investigation committee report, this policy will be maintained. even after receiving the investigation committee report this policy will be maintained When I look at the message of Mr. Nagamori as the Chairperson Emeritus, he will work on the human development as one of the dreams. when i look at the message of mr nagamori as the chairperson emeritus he will work on the human development as one of the dreams As Nidec, he will still be involved in the human developments, or there's no involvement how Mr. Nagamori will be involved or not involved regarding the human development at Nidec. as nidec he will still be involved in the human developments or there's no involvement how mr nagamori will be involved or not involved regarding the human development at nidec It's not their intention. it's not their intention He has the schools and the other educational organizations, and therefore, we assume that now he will focus on these institutions, not Nidec. he has the schools and the other educational organizations and therefore we assume that now he will focus on these institutions not nidec

Speaker 11: Thank you very much. Any other questions? Yes. Person in the fifth row on this side. Thank you very much for raising your hands. Thank you very much. thank you very much Any other questions? any other questions Yes. yes Person in the fifth row on this side. person in the fifth row on this side Thank you very much for raising your hands. thank you very much for raising your hands

Speaker 37: I'm Nomura from TV Tokyo. I'm Nomura from TV Tokyo. i'm nomura from tv tokyo Regarding the recognition or awareness of the accounting misconduct, President Kishida was described as he didn't recognize the misconduct, the accounting misconduct. How about Mr. Nakagawa, is that true? Suppose that you didn't recognize the accounting misconduct, how you should assume the responsibility as executive? Regarding the recognition or awareness of the accounting misconduct, President Kishida was described as he didn't recognize the misconduct, the accounting misconduct. regarding the recognition or awareness of the accounting misconduct president kishida was described as he didn't recognize the misconduct the accounting misconduct How about Mr. Nakagawa, is that true? how about mr nakagawa is that true Suppose that you didn't recognize the accounting misconduct, how you should assume the responsibility as executive? suppose that you didn't recognize the accounting misconduct how you should assume the responsibility as executive

Speaker 20: First of all, I'd like to answer to your question. After that, Mr. Nakagawa will answer to this question. First of all, to me, I believe I have to assume the managerial responsibility. That's why, regarding the this time scandal, I'd like to give a much deeper thought to take actions, or I should have get involved deeper to take appropriate actions. Including this, regarding my own policy, I spontaneously or voluntarily return my remunerations 100%. Still, I'd like to get involved in the management of this company. First of all, I'd like to answer to your question. first of all i'd like to answer to your question After that, Mr. Nakagawa will answer to this question. after that mr nakagawa will answer to this question First of all, to me, I believe I have to assume the managerial responsibility. first of all to me i believe i have to assume the managerial responsibility That's why, regarding the this time scandal, I'd like to give a much deeper thought to take actions, or I should have get involved deeper to take appropriate actions. that's why regarding the this time scandal i'd like to give a much deeper thought to take actions or i should have get involved deeper to take appropriate actions Including this, regarding my own policy, I spontaneously or voluntarily return my remunerations 100%. including this regarding my own policy i spontaneously or voluntarily return my remunerations 100% Still, I'd like to get involved in the management of this company. still i'd like to get involved in the management of this company Mr. Nakagawa, please. Mr. Nakagawa, please. mr nakagawa please

Speaker 9: According the report. There has been the huge pressures imposed on to the all of the employees. I don't have any personal recognition of this accounting misconduct. I try to reduce the financial costs as main activities of the financial personnel, I was immune to that pressure. According the report. according the report There has been the huge pressures imposed on to the all of the employees. there has been the huge pressures imposed on to the all of the employees I don't have any personal recognition of this accounting misconduct. i don't have any personal recognition of this accounting misconduct I try to reduce the financial costs as main activities of the financial personnel, I was immune to that pressure. i try to reduce the financial costs as main activities of the financial personnel i was immune to that pressure

Speaker 20: Thank you very much. It's my turn. I don't have a recognition of accounting misconduct. Regarding the pressure for the business performance, I'm aware that the pressure on to the better performance was very strong. Whether that related to the attitude of that or not, I wasn't aware of that pressure. You mentioned that there has been strong pressures across the board. Thank you very much. thank you very much It's my turn. it's my turn I don't have a recognition of accounting misconduct. i don't have a recognition of accounting misconduct Regarding the pressure for the business performance, I'm aware that the pressure on to the better performance was very strong. regarding the pressure for the business performance i'm aware that the pressure on to the better performance was very strong Whether that related to the attitude of that or not, I wasn't aware of that pressure. whether that related to the attitude of that or not i wasn't aware of that pressure You mentioned that there has been strong pressures across the board. you mentioned that there has been strong pressures across the board

Speaker 37: To you, what kind of pressure you were exposed to, including how you felt at that time? Can you please share the specific wording and how you felt? To you, what kind of pressure you were exposed to, including how you felt at that time? to you what kind of pressure you were exposed to including how you felt at that time Can you please share the specific wording and how you felt? can you please share the specific wording and how you felt

Speaker 20: I'm a member of administrative department, and therefore, I don't have a direct pressure regarding the performance. However, every year, I saw that now the all of the business units have to set up really high targets each year. That's how I felt. I'm a member of administrative department, and therefore, I don't have a direct pressure regarding the performance. i'm a member of administrative department and therefore i don't have a direct pressure regarding the performance However, every year, I saw that now the all of the business units have to set up really high targets each year. however every year i saw that now the all of the business units have to set up really high targets each year That's how I felt. that's how i felt

Speaker 11: Thank you very much. I see many people still raising up their hands, but now I'd like to cover you row by row. First of all, the person in this row, please. Thank you very much. thank you very much I see many people still raising up their hands, but now I'd like to cover you row by row. i see many people still raising up their hands but now i'd like to cover you row by row First of all, the person in this row, please. first of all the person in this row please

Speaker 33: Thank you very much. I'm Yamamoto from Nikkan Jidosha Shimbun. I'd like to ask two questions to Mr. Kishida. First of all, toward October. Sorry for asking qualitative questions, but are you sure that you can get away from the current status in October? Thank you very much. thank you very much I'm Yamamoto from Nikkan Jidosha Shimbun. i'm yamamoto from nikkan jidosha shimbun I'd like to ask two questions to Mr. Kishida. i'd like to ask two questions to mr kishida First of all, toward October. first of all toward october Sorry for asking qualitative questions, but are you sure that you can get away from the current status in October? sorry for asking qualitative questions but are you sure that you can get away from the current status in october Regarding the cultural change, it's really hard to capture it quantitatively, and therefore, how the organizational structure should be and how the corporate culture changes. It's not only the structure, but also you have to walk the talk. How do you take it? Just one question. Regarding the cultural change, it's really hard to capture it quantitatively, and therefore, how the organizational structure should be and how the corporate culture changes. regarding the cultural change it's really hard to capture it quantitatively and therefore how the organizational structure should be and how the corporate culture changes It's not only the structure, but also you have to walk the talk. it's not only the structure but also you have to walk the talk How do you take it? how do you take it Just one question. just one question

Speaker 20: Thank you very much for your very precious question. When it comes to the set date, October 28th, we will make sure to achieve our task by that date. There are quite a few hurdles go over towards that goal, but we need to be cooperate, working together with other people concerned as we go towards, and go towards that goal. We need to change our culture, corporate culture as a company. It will take time. I do realize that. First of all, in our improvement plan and towards the deadline of October 28th, for the next eight months, there are things need to do, and there are quite a few things for us to do in the next two to three years. Thank you very much for your very precious question. thank you very much for your very precious question When it comes to the set date, October 28th, we will make sure to achieve our task by that date. when it comes to the set date october 28th we will make sure to achieve our task by that date There are quite a few hurdles go over towards that goal, but we need to be cooperate, working together with other people concerned as we go towards, and go towards that goal. there are quite a few hurdles go over towards that goal but we need to be cooperate working together with other people concerned as we go towards and go towards that goal We need to change our culture, corporate culture as a company. we need to change our culture corporate culture as a company It will take time. it will take time I do realize that. i do realize that First of all, in our improvement plan and towards the deadline of October 28th, for the next eight months, there are things need to do, and there are quite a few things for us to do in the next two to three years. first of all in our improvement plan and towards the deadline of october 28th for the next eight months there are things need to do and there are quite a few things for us to do in the next two to three years We need to make such a roadmap. We need to share the roadmap firmly among those concerned. That's what's important in my opinion. We need to visualize the status. We would like to share information with everyone involved in this process. We need to make such a roadmap. we need to make such a roadmap We need to share the roadmap firmly among those concerned. we need to share the roadmap firmly among those concerned That's what's important in my opinion. that's what's important in my opinion We need to visualize the status. we need to visualize the status We would like to share information with everyone involved in this process. we would like to share information with everyone involved in this process

Speaker 33: Thank you very much. Related to my previous speaker's question, you need to bring some masculinity. You need to make your organization stronger. As necessary, you borrow some capabilities, some help from the outside. Do you already have any specific plan for that? Thank you very much. thank you very much Related to my previous speaker's question, you need to bring some masculinity. related to my previous speaker's question you need to bring some masculinity You need to make your organization stronger. you need to make your organization stronger As necessary, you borrow some capabilities, some help from the outside. as necessary you borrow some capabilities some help from the outside Do you already have any specific plan for that? do you already have any specific plan for that

Speaker 20: Thank you very much for your question. In that regard, we have gone through M&As, and we have constantly been growing as a company. That's the history of our company, Nidec. Thank you very much for your question. thank you very much for your question In that regard, we have gone through M&As, and we have constantly been growing as a company. in that regard we have gone through m&as and we have constantly been growing as a company That's the history of our company, Nidec. that's the history of our company nidec At least, during this time, we need to be firmly steadfast and committed to our belief to understand what we need to do. We need to introduce our new ROI system, based on that perspective as well. We need to review our management system, and we need to make sure to work on those various issues. At least, during this time, we need to be firmly steadfast and committed to our belief to understand what we need to do. at least during this time we need to be firmly steadfast and committed to our belief to understand what we need to do We need to introduce our new ROI system, based on that perspective as well. we need to introduce our new roi system based on that perspective as well We need to review our management system, and we need to make sure to work on those various issues. we need to review our management system and we need to make sure to work on those various issues

Speaker 33: Are you going to differentiate the core businesses from non-core businesses? Are you going to differentiate the core businesses from non-core businesses? are you going to differentiate the core businesses from non-core businesses

Speaker 20: Yes, exactly. As part of our midterm business plan, we have core businesses and non-core businesses. We have future hurdles to go over. We need to understand what's currently profitable as businesses. Beyond that, as a manufacturer, we need to understand, we need to anticipate the future. Towards our future goal, we will make firm steps going forward. Thank you. Yes, exactly. yes exactly As part of our midterm business plan, we have core businesses and non-core businesses. as part of our midterm business plan we have core businesses and non-core businesses We have future hurdles to go over. we have future hurdles to go over We need to understand what's currently profitable as businesses. we need to understand what's currently profitable as businesses Beyond that, as a manufacturer, we need to understand, we need to anticipate the future. beyond that as a manufacturer we need to understand we need to anticipate the future Towards our future goal, we will make firm steps going forward. towards our future goal we will make firm steps going forward Thank you. thank you

Speaker 11: From your right, the person over there, the far right. Thank you. From your right, the person over there, the far right. from your right the person over there the far right Thank you. thank you

Speaker 32: Thank you very much for your explanation. This is Naito of Citigroup Securities. I would like to give you two questions. First of all, with respect to AMEC business unit, what was the problem with the business unit? What would be your opinion about for improvement? According to the third-party committee's report and improvement plan, I believe the major problems lies with the AMEC business unit. We have been tracking AMEC business unit profitabilities. Do you think you have to downward make or downward revisions about AMEC's profitability? What would be the major reasons for the current struggles of this AMEC business unit? What was the reason for you to have to incur negative legacies? Thank you very much for your explanation. thank you very much for your explanation This is Naito of Citigroup Securities. this is naito of citigroup securities I would like to give you two questions. i would like to give you two questions First of all, with respect to AMEC business unit, what was the problem with the business unit? first of all with respect to amec business unit what was the problem with the business unit What would be your opinion about for improvement? what would be your opinion about for improvement According to the third-party committee's report and improvement plan, I believe the major problems lies with the AMEC business unit. according to the third-party committee's report and improvement plan i believe the major problems lies with the amec business unit We have been tracking AMEC business unit profitabilities. we have been tracking amec business unit profitabilities Do you think you have to downward make or downward revisions about AMEC's profitability? do you think you have to downward make or downward revisions about amec's profitability What would be the major reasons for the current struggles of this AMEC business unit? what would be the major reasons for the current struggles of this amec business unit What was the reason for you to have to incur negative legacies? what was the reason for you to have to incur negative legacies Can you provide us with your opinions? Thank you. Can you provide us with your opinions? can you provide us with your opinions Thank you. thank you

Speaker 20: With respect to AMEC, our automotive motor business, the scales of investment is huge compared with the other businesses. The financial impact is huge, is that, it tends to be regarded as issue generators, problem generators. They are in a very, currently very severe competitive situation. In the past, we have been trying to reform the business unit, AMEC business unit. We are continuingly making efforts to improve the business. As a motor business, we have automotive motors. You have to have high-quality motors, high-quality performance, level performance as well. Technologically, it's very difficult to make these automotive motors. We will continue to produce those motors together with the other motors that are difficult to make. That will be part of our product portfolio we need to reexamine. With respect to AMEC, our automotive motor business, the scales of investment is huge compared with the other businesses. with respect to amec our automotive motor business the scales of investment is huge compared with the other businesses The financial impact is huge, is that, it tends to be regarded as issue generators, problem generators. the financial impact is huge is that it tends to be regarded as issue generators problem generators They are in a very, currently very severe competitive situation. they are in a very currently very severe competitive situation In the past, we have been trying to reform the business unit, AMEC business unit. in the past we have been trying to reform the business unit amec business unit We are continuingly making efforts to improve the business. we are continuingly making efforts to improve the business As a motor business, we have automotive motors. as a motor business we have automotive motors You have to have high-quality motors, high-quality performance, level performance as well. you have to have high-quality motors high-quality performance level performance as well Technologically, it's very difficult to make these automotive motors. technologically it's very difficult to make these automotive motors We will continue to produce those motors together with the other motors that are difficult to make. we will continue to produce those motors together with the other motors that are difficult to make That will be part of our product portfolio we need to reexamine. that will be part of our product portfolio we need to reexamine I believe the Project company have had some problems in the AMEC business unit, et cetera. It's not that the M&A has had problems within our Project companies. Within this, ¥250 billion goodwill is included. Goodwill as of M&A could become at zero in value. Not only our own business, but there are quite a few parties to businesses whose issues have to be solved. Thank you. I believe the Project company have had some problems in the AMEC business unit, et cetera. i believe the project company have had some problems in the amec business unit et cetera It's not that the M&A has had problems within our Project companies. Within this, ¥ 250 billion goodwill is included. it's not that the m&a has had problems within our project companies. within this ¥ 250 billion goodwill is included Goodwill as of M&A could become at zero in value. goodwill as of m&a could become at zero in value Not only our own business, but there are quite a few parties to businesses whose issues have to be solved. not only our own business but there are quite a few parties to businesses whose issues have to be solved Thank you. thank you

Speaker 32: There is one more question which is related to the previous speaker's question. With respect to cost, it's about. A strategic investment is very important, as I understand. In order to make yourself a very new rip on Nidec, are you going to make investment in human resources or infrastructure? What type of cost increases are you expecting to see occur in the future? There is one more question which is related to the previous speaker's question. there is one more question which is related to the previous speaker's question With respect to cost, it's about. with respect to cost it's about A strategic investment is very important, as I understand. a strategic investment is very important as i understand In order to make yourself a very new rip on Nidec, are you going to make investment in human resources or infrastructure? in order to make yourself a very new rip on nidec are you going to make investment in human resources or infrastructure What type of cost increases are you expecting to see occur in the future? what type of cost increases are you expecting to see occur in the future

Speaker 20: In the end, we need to be able to disclose our midterm business plan. That will be the right time for us to answer your question in detail. My gut feeling as of today is that 1% infrastructure investment in human resources, for example. We have this more than 300 business entities. We need to consolidate them. We need to educate people to do the right thing when they work, as they work. We need to increase our investment in such infrastructure. That's what we need to discuss internally. Thank you very much. It makes a lot of sense. Thank you. In the end, we need to be able to disclose our midterm business plan. in the end we need to be able to disclose our midterm business plan That will be the right time for us to answer your question in detail. that will be the right time for us to answer your question in detail My gut feeling as of today is that 1% infrastructure investment in human resources, for example. my gut feeling as of today is that 1% infrastructure investment in human resources for example We have this more than 300 business entities. we have this more than 300 business entities We need to consolidate them. we need to consolidate them We need to educate people to do the right thing when they work, as they work. we need to educate people to do the right thing when they work as they work We need to increase our investment in such infrastructure. we need to increase our investment in such infrastructure That's what we need to discuss internally. that's what we need to discuss internally Thank you very much. thank you very much It makes a lot of sense. it makes a lot of sense Thank you. thank you

Speaker 11: The second person from the right. The fourth person, male. The second person from the right. the second person from the right The fourth person, male. the fourth person male

Speaker 14: This is Iwao, TBS News Broadcasting Station. Thank you very much. This is Iwao, TBS News Broadcasting Station. this is iwao tbs news broadcasting station Thank you very much. thank you very much There's a huge financial impact that will make a huge impact in your own company as a whole. As you try to rebuild Nidec, you may decide to shut down factories, you may lay off people. Would that be a possibility? There's a huge financial impact that will make a huge impact in your own company as a whole. there's a huge financial impact that will make a huge impact in your own company as a whole As you try to rebuild Nidec, you may decide to shut down factories, you may lay off people. as you try to rebuild nidec you may decide to shut down factories you may lay off people Would that be a possibility? would that be a possibility

Speaker 20: Thank you very much for your question. Production facilities and the larger scale consolidations, we are not making any of that yet. In our day-to-day operations, we may decide. We will continue to work on consolidations and improvement of our businesses operations. With respect to business consolidations, portfolio reviewing will take place, we may realize a larger scale of a need for reforming portfolio. We will have no sanctuary as we go forward with our reform efforts. Thank you. Thank you very much for your question. thank you very much for your question Production facilities and the larger scale consolidations, we are not making any of that yet. production facilities and the larger scale consolidations we are not making any of that yet In our day-to-day operations, we may decide. in our day-to-day operations we may decide We will continue to work on consolidations and improvement of our businesses operations. we will continue to work on consolidations and improvement of our businesses operations With respect to business consolidations, portfolio reviewing will take place, we may realize a larger scale of a need for reforming portfolio. with respect to business consolidations portfolio reviewing will take place we may realize a larger scale of a need for reforming portfolio We will have no sanctuary as we go forward with our reform efforts. we will have no sanctuary as we go forward with our reform efforts Thank you. thank you

Speaker 11: The person from there in this row. The person from there in this row. the person from there in this row The third person from the top. Thank you. The third person from the top. the third person from the top Thank you. thank you

Speaker 36: Thank you very much. I'm Yamada with Toyo Keizai, a magazine. I have two questions for you. First of all, I would like to know what has been done in this secret audit report or investigations. Based on Mr. Nagamori's secret request, there was a person on a special missions. This part is very black in my opinion. Nothing is very clear. In other words, I believe there are some facts hidden here. As of now, as a company, what did you find, and what information do you have about this special mission? Special mission audits, I do not know anything about them. I do not know anything more than the reports report established by the Third-Party Committee. Thank you very much. thank you very much I'm Yamada with Toyo Keizai, a magazine. i'm yamada with toyo keizai a magazine I have two questions for you. i have two questions for you First of all, I would like to know what has been done in this secret audit report or investigations. first of all i would like to know what has been done in this secret audit report or investigations Based on Mr. Nagamori's secret request, there was a person on a special missions. based on mr nagamori's secret request there was a person on a special missions This part is very black in my opinion. this part is very black in my opinion Nothing is very clear. nothing is very clear In other words, I believe there are some facts hidden here. in other words i believe there are some facts hidden here As of now, as a company, what did you find, and what information do you have about this special mission? as of now as a company what did you find and what information do you have about this special mission Special mission audits, I do not know anything about them. special mission audits i do not know anything about them I do not know anything more than the reports report established by the Third-Party Committee. i do not know anything more than the reports report established by the third-party committee It may be difficult for you, but do you have any plan to investigate into these special audits as a company? With respect to the contents of special audit, I do not have any plan or thoughts about it. My second question is as follows: With respect to the negative legacies, according to your explanation rhetoric, you did not understand any misconducts. Of course, the third-party committee says not everything was a misconduct, but with respect to the negative legacies as a whole, there were quite a few issues and problems. Kishida-san, you Mr. Kishida, you yourself had some very strict request to Mr. Nagamori. Did you really not recognize the misconducts, but did you think that to some extent such misconducts will be okay? It may be difficult for you, but do you have any plan to investigate into these special audits as a company? it may be difficult for you but do you have any plan to investigate into these special audits as a company With respect to the contents of special audit, I do not have any plan or thoughts about it. with respect to the contents of special audit i do not have any plan or thoughts about it My second question is as follows: With respect to the negative legacies, according to your explanation rhetoric, you did not understand any misconducts. my second question is as follows with respect to the negative legacies according to your explanation rhetoric you did not understand any misconducts Of course, the third-party committee says not everything was a misconduct, but with respect to the negative legacies as a whole, there were quite a few issues and problems. of course the third-party committee says not everything was a misconduct but with respect to the negative legacies as a whole there were quite a few issues and problems Kishida-san, you Mr. Kishida, you yourself had some very strict request to Mr. Nagamori. kishida-san you mr kishida you yourself had some very strict request to mr nagamori Did you really not recognize the misconducts, but did you think that to some extent such misconducts will be okay? did you really not recognize the misconducts but did you think that to some extent such misconducts will be okay Did you have such a recognition or did you not have such a recognition at all? That's a very important point you, that you pointed out. In the third-party committee's report, I am referred to there as one of the individuals to be mentioned in the report. Did you have such a recognition or did you not have such a recognition at all? did you have such a recognition or did you not have such a recognition at all That's a very important point you, that you pointed out. that's a very important point you that you pointed out In the third-party committee's report, I am referred to there as one of the individuals to be mentioned in the report. in the third-party committee's report i am referred to there as one of the individuals to be mentioned in the report

Speaker 20: I need to make one step further. I should have made one step further to try to address those issues. That's something that I'm reflective of. In order to prevent a recurrence of such misconduct, we would like to build a new Nidec as a group-wide project. Thank you. I need to make one step further. i need to make one step further I should have made one step further to try to address those issues. i should have made one step further to try to address those issues That's something that I'm reflective of. that's something that i'm reflective of In order to prevent a recurrence of such misconduct, we would like to build a new Nidec as a group-wide project. in order to prevent a recurrence of such misconduct we would like to build a new nidec as a group-wide project Thank you. thank you

Speaker 36: There is one more question from me related to the first question. With respect to the corporate reform, corporate culture reform, we have people from Diamond Publishing and from us, Toyo Keizai publishing. Some of us have been prohibited from contacting you or visiting you. Now we are allowed to be here, and we are grateful to be part of this press conference. Are you going to try to. I believe Mr. There is one more question from me related to the first question. there is one more question from me related to the first question With respect to the corporate reform, corporate culture reform, we have people from Diamond Publishing and from us, Toyo Keizai publishing. with respect to the corporate reform corporate culture reform we have people from diamond publishing and from us toyo keizai publishing Some of us have been prohibited from contacting you or visiting you. some of us have been prohibited from contacting you or visiting you Now we are allowed to be here, and we are grateful to be part of this press conference. now we are allowed to be here and we are grateful to be part of this press conference Are you going to try to. are you going to try to I believe Mr. i believe mr Nagamori's personality was to refrain from communicating with such a highly critical mass media media outlets. I don't want to do that, Mr. Kishida. Can I ask your opinions about this? It's a very important opinion. Thank you very much. Nagamori's personality was to refrain from communicating with such a highly critical mass media media outlets. nagamori's personality was to refrain from communicating with such a highly critical mass media media outlets I don't want to do that, Mr. Kishida. i don't want to do that mr kishida Can I ask your opinions about this? can i ask your opinions about this It's a very important opinion. it's a very important opinion Thank you very much. thank you very much

Speaker 20: In this meeting as well, we like to have as many people as possible. We like to have many opinions from as many people as possible as we try to operate our businesses. That's my strong determination. Going forward, we like to have opinions from as many people as possible. Thank you very much. In this meeting as well, we like to have as many people as possible. in this meeting as well we like to have as many people as possible We like to have many opinions from as many people as possible as we try to operate our businesses. we like to have many opinions from as many people as possible as we try to operate our businesses That's my strong determination. that's my strong determination Going forward, we like to have opinions from as many people as possible. going forward we like to have opinions from as many people as possible Thank you very much. thank you very much

Speaker 42: Ito from Nikkei Business. I would like to ask you about how you recognize the need for governance. In the third-party report, it says up to August 2025, your power was quite limited. The final decision-making, especially in the personal matters, were given to Mr. Nagamori. The president and CEO's authority were quite small. Did you ever question about the level of governance? Did you and any other management levels ever questions the all the powers concerted to Nagamori-san? Ito from Nikkei Business. ito from nikkei business I would like to ask you about how you recognize the need for governance. i would like to ask you about how you recognize the need for governance In the third-party report, it says up to August 2025, your power was quite limited. in the third-party report it says up to august 2025 your power was quite limited The final decision-making, especially in the personal matters, were given to Mr. Nagamori. the final decision-making especially in the personal matters were given to mr nagamori The president and CEO's authority were quite small. the president and ceo's authority were quite small Did you ever question about the level of governance? did you ever question about the level of governance Did you and any other management levels ever questions the all the powers concerted to Nagamori-san? did you and any other management levels ever questions the all the powers concerted to nagamori-san

Speaker 20: I became a president in April 2024. In June 2024, we became a Representative Director and President and Executive Officer. Until the August 2025... Third-party report states that all the final decisions were made by Mr. Nagamori. That is true. From 2024 June onwards, I was on a role as Representative Director, President, and Executive Officer. I have no intention to indicate that the kind of responsibility, the tasks that are bestowed on me were anything small. I do believe that I was fulfilled my role as a CEO. In order for this company to truly revitalize itself, I would like to put my all in this effort once again. I became a president in April 2024. i became a president in april 2024 In June 2024, we became a Representative Director and President and Executive Officer. in june 2024 we became a representative director and president and executive officer Until the August 2025... until the august 2025 Third-party report states that all the final decisions were made by Mr. Nagamori. third-party report states that all the final decisions were made by mr nagamori That is true. that is true From 2024 June onwards, I was on a role as Representative Director, President, and Executive Officer. from 2024 june onwards i was on a role as representative director president and executive officer I have no intention to indicate that the kind of responsibility, the tasks that are bestowed on me were anything small. i have no intention to indicate that the kind of responsibility the tasks that are bestowed on me were anything small I do believe that I was fulfilled my role as a CEO. i do believe that i was fulfilled my role as a ceo In order for this company to truly revitalize itself, I would like to put my all in this effort once again. in order for this company to truly revitalize itself i would like to put my all in this effort once again

Speaker 42: This is a question to Mr. President Kishida, as well as all the top management levels. Final decisions belongs to Mr. Nagamori. That was a common sense. How was it perceived by all? This is a question to Mr. President Kishida, as well as all the top management levels. this is a question to mr president kishida as well as all the top management levels Final decisions belongs to Mr. Nagamori. final decisions belongs to mr nagamori That was a common sense. that was a common sense How was it perceived by all? how was it perceived by all

Speaker 20: First year of becoming a president is really a transitional year in many ways. I do recognize there were issues in our company and actually starting to make change to our internal approval systems. That started around that time. Actually, the time that the responsibility was given to me was not until the 2025 August time. There's been a discussion that how to transition and pass this decision-making power from Nagamori-san to myself. It's been discussed for quite some time. Under the new management leaderships, how to manage and how to set the right decision-making authority. We need to establish operations and systems and processes based on these learning. First year of becoming a president is really a transitional year in many ways. first year of becoming a president is really a transitional year in many ways I do recognize there were issues in our company and actually starting to make change to our internal approval systems. i do recognize there were issues in our company and actually starting to make change to our internal approval systems That started around that time. that started around that time Actually, the time that the responsibility was given to me was not until the 2025 August time. actually the time that the responsibility was given to me was not until the 2025 august time There's been a discussion that how to transition and pass this decision-making power from Nagamori-san to myself. there's been a discussion that how to transition and pass this decision-making power from nagamori-san to myself It's been discussed for quite some time. it's been discussed for quite some time Under the new management leaderships, how to manage and how to set the right decision-making authority. under the new management leaderships how to manage and how to set the right decision-making authority We need to establish operations and systems and processes based on these learning. we need to establish operations and systems and processes based on these learning

Speaker 22: Hello, I am Kishi from Major Market. Regarding getting delisted, that is an option for some companies too. Hello, I am Kishi from Major Market. hello i am kishi from major market Regarding getting delisted, that is an option for some companies too. regarding getting delisted that is an option for some companies too If that's the case, I would think that the investment plan are activated. I wonder whether they are making unwise special proposals like that? You would like to maintain the position of a listed company, going forward, I wonder whether you are saying definitely no to going private or else? If that's the case, I would think that the investment plan are activated. if that's the case i would think that the investment plan are activated I wonder whether they are making unwise special proposals like that? i wonder whether they are making unwise special proposals like that You would like to maintain the position of a listed company, going forward, I wonder whether you are saying definitely no to going private or else? you would like to maintain the position of a listed company going forward i wonder whether you are saying definitely no to going private or else

Speaker 20: Upon the filing of the internal audit plan, structure confirmation documentations, we are aiming to be de-designated as the Security on Special Alert. That is our first priority. We have no intention of going private at this moment. Thank you. Upon the filing of the internal audit plan, structure confirmation documentations, we are aiming to be de-designated as the Security on Special Alert. upon the filing of the internal audit plan structure confirmation documentations we are aiming to be de-designated as the security on special alert That is our first priority. that is our first priority We have no intention of going private at this moment. we have no intention of going private at this moment Thank you. thank you

Speaker 6: I'm Kato, I'm a free journalist. I have a question regarding audit. First one is in the third-party report. The fraudulent report, dishonest report information shared to the audit firms. CFO is now resigned. The report says that there were comments like many incidences like that, misinformation, misrepresentations were found from various different parties, it looks like it's a corporate culture. I wonder have three of you recognized the same. What do you feel? I'm Kato, I'm a free journalist. i'm kato i'm a free journalist I have a question regarding audit. i have a question regarding audit First one is in the third-party report. first one is in the third-party report The fraudulent report, dishonest report information shared to the audit firms. the fraudulent report dishonest report information shared to the audit firms CFO is now resigned. cfo is now resigned The report says that there were comments like many incidences like that, misinformation, misrepresentations were found from various different parties, it looks like it's a corporate culture. the report says that there were comments like many incidences like that misinformation misrepresentations were found from various different parties it looks like it's a corporate culture I wonder have three of you recognized the same. i wonder have three of you recognized the same What do you feel? what do you feel

Speaker 20: Finding, seeing the current accounting firm as a easy target to persuade. Finding, seeing the current accounting firm as a easy target to persuade. finding seeing the current accounting firm as a easy target to persuade I have no sense like that against the PwC Kyoto. I echo the same opinion as the president. I have no sense like that against the PwC Kyoto. i have no sense like that against the pwc kyoto I echo the same opinion as the president. i echo the same opinion as the president

Speaker 6: Okay, thank you very much. Another questions related to audit. You have switched from a company with audit and supervisory board to a company with a committee. 10 years ago, you have established audit and supervisory committee and they supposed to do a organization audit. Does that mean that the shifting to committee level was mistake for you? It would have been better to depend the audit's responsibility to a single person, highly independent board of directors, don't you think? Okay, thank you very much. okay thank you very much Another questions related to audit. another questions related to audit You have switched from a company with audit and supervisory board to a company with a committee. 10 years ago, you have established audit and supervisory committee and they supposed to do a organization audit. you have switched from a company with audit and supervisory board to a company with a committee 10 years ago you have established audit and supervisory committee and they supposed to do a organization audit Does that mean that the shifting to committee level was mistake for you? does that mean that the shifting to committee level was mistake for you It would have been better to depend the audit's responsibility to a single person, highly independent board of directors, don't you think? it would have been better to depend the audit's responsibility to a single person highly independent board of directors don't you think

Speaker 20: I also need to improve my capability as an auditor, as a member of the audit and supervisory committee and taking on the lessons learned from the report of third party committees. I also need to improve my capability as an auditor, as a member of the audit and supervisory committee and taking on the lessons learned from the report of third party committees. i also need to improve my capability as an auditor as a member of the audit and supervisory committee and taking on the lessons learned from the report of third party committees We would like to carry out the various improvement measures to manage this business better. We would like to carry out the various improvement measures to manage this business better. we would like to carry out the various improvement measures to manage this business better

Speaker 31: Hello. Tsushima from Diamond. I have a question to President Kishida. Regarding your responsibility as a business executive officer regarding business execution. You joined Nidec in 2020, then you became a VP or CEO of Europe of AMEC business. In this time's impairment scope, the biggest one is against the AMEC business. You can't be forgiven just by saying, "No, I didn't know." I think you were in charge of meeting the business target. I understand that the relationship with Mr. Nagamori deepened only after you stepped up as a president. Regarding your execution responsibilities, I wonder, what were the difference between those who resigned and you remaining as a president? Hello. hello Tsushima from Diamond. tsushima from diamond I have a question to President Kishida. i have a question to president kishida Regarding your responsibility as a business executive officer regarding business execution. regarding your responsibility as a business executive officer regarding business execution You joined Nidec in 2020, then you became a VP or CEO of Europe of AMEC business. you joined nidec in 2020 then you became a vp or ceo of europe of amec business In this time's impairment scope, the biggest one is against the AMEC business. in this time's impairment scope the biggest one is against the amec business You can't be forgiven just by saying, "No, I didn't know." I think you were in charge of meeting the business target. you can't be forgiven just by saying "no i didn't know." i think you were in charge of meeting the business target I understand that the relationship with Mr. Nagamori deepened only after you stepped up as a president. i understand that the relationship with mr nagamori deepened only after you stepped up as a president Regarding your execution responsibilities, I wonder, what were the difference between those who resigned and you remaining as a president? regarding your execution responsibilities i wonder what were the difference between those who resigned and you remaining as a president

Speaker 20: I don't think it was something that some people were forcing everyone to come up with those numbers and some were bringing in. I don't think it's that simple. I joined the business actually in 2022. Ever since I joined this group, I've been proposing various structural reform and try to drive that reform myself too. The first business that I joined is Europe, Nidec. I was given a specific task to handle various claims. I've been continuing to do so until today. I would like to go 1 step further and to revisit some of the measures that I have implemented. I could have done a step deeper and been told to do it differently. That's something that I take quite seriously. I don't think it was something that some people were forcing everyone to come up with those numbers and some were bringing in. i don't think it was something that some people were forcing everyone to come up with those numbers and some were bringing in I don't think it's that simple. i don't think it's that simple I joined the business actually in 2022. i joined the business actually in 2022 Ever since I joined this group, I've been proposing various structural reform and try to drive that reform myself too. ever since i joined this group i've been proposing various structural reform and try to drive that reform myself too The first business that I joined is Europe, Nidec. the first business that i joined is europe nidec I was given a specific task to handle various claims. i was given a specific task to handle various claims I've been continuing to do so until today. i've been continuing to do so until today I would like to go 1 step further and to revisit some of the measures that I have implemented. i would like to go 1 step further and to revisit some of the measures that i have implemented I could have done a step deeper and been told to do it differently. i could have done a step deeper and been told to do it differently That's something that I take quite seriously. that's something that i take quite seriously I will continue to work toward the soundness of this company's assets management and make operations more efficient. I will continue to work toward the soundness of this company's assets management and make operations more efficient. i will continue to work toward the soundness of this company's assets management and make operations more efficient

Speaker 31: Thank you. My second question related to the first one. From outside perspective like us, when trying to revitalize a new company, I think it would only make sense to bring in a new person to lead that organization. Mr. Kishida, some of my colleagues called you as a miniature Nagamori. You were appointed by Mr. Nagamori. I think you are considered as a person, undoubtedly who helped encourage Nagamori the way he was. I wonder, what kind of feeling do you have against those claim? Thank you. thank you My second question related to the first one. my second question related to the first one From outside perspective like us, when trying to revitalize a new company, I think it would only make sense to bring in a new person to lead that organization. from outside perspective like us when trying to revitalize a new company i think it would only make sense to bring in a new person to lead that organization Mr. Kishida, some of my colleagues called you as a miniature Nagamori. mr kishida some of my colleagues called you as a miniature nagamori You were appointed by Mr. Nagamori. you were appointed by mr nagamori I think you are considered as a person, undoubtedly who helped encourage Nagamori the way he was. i think you are considered as a person undoubtedly who helped encourage nagamori the way he was I wonder, what kind of feeling do you have against those claim? i wonder what kind of feeling do you have against those claim

Speaker 20: I never saw myself as a miniature Nagamori or copies of Nagamori. My most important effort is to redesignate Nidec stock as currently under Security on Special Alert. I never saw myself as a miniature Nagamori or copies of Nagamori. i never saw myself as a miniature nagamori or copies of nagamori My most important effort is to redesignate Nidec stock as currently under Security on Special Alert. my most important effort is to redesignate nidec stock as currently under security on special alert That is the most important theme for our management. That's what I'm fully concentrated on achieving. In this report, there were quite a few hard comments against Mr. Nagamori, and it makes sense because he was the head of your organization. It also can be read as if Nagamori-san is the only one who's doing this wrongdoing. That is the most important theme for our management. that is the most important theme for our management That's what I'm fully concentrated on achieving. that's what i'm fully concentrated on achieving In this report, there were quite a few hard comments against Mr. Nagamori, and it makes sense because he was the head of your organization. in this report there were quite a few hard comments against mr nagamori and it makes sense because he was the head of your organization It also can be read as if Nagamori-san is the only one who's doing this wrongdoing. it also can be read as if nagamori-san is the only one who's doing this wrongdoing

Speaker 31: What about the responsibility of outside directors? Have a question by my colleagues. What about the executive management, including President Kishida, your business execution responsibilities or each business responsibilities heads? What about the responsibility of outside directors? what about the responsibility of outside directors Have a question by my colleagues. have a question by my colleagues What about the executive management, including President Kishida, your business execution responsibilities or each business responsibilities heads? what about the executive management including president kishida your business execution responsibilities or each business responsibilities heads I wonder whether you are purposely directing all the responsibility concentrated to Nagamori. I understand your point of view, but I personally think that this report is not about that, only blaming Nagamori. Rather, for us, the business manager, it contains a lot of good ideas, suggestions, and improvement measures, advices. I wonder whether you are purposely directing all the responsibility concentrated to Nagamori. i wonder whether you are purposely directing all the responsibility concentrated to nagamori I understand your point of view, but I personally think that this report is not about that, only blaming Nagamori. i understand your point of view but i personally think that this report is not about that only blaming nagamori Rather, for us, the business manager, it contains a lot of good ideas, suggestions, and improvement measures, advices. rather for us the business manager it contains a lot of good ideas suggestions and improvement measures advices The starting point of the improper accounting practice started from Mr. Nagamori's. Regarding company structure, mechanism, process, and cultures, what kind of those things led to these incidents were mentioned clearly in this report. We will take this report as a serious lesson learned and try to work as one unit, the entire company together to turn this company around. Hello, I am Kurokawa from Sankei Newspaper. I don't mean to repeat my colleagues' questions, but regarding this Responsibility Investigation Committee's future activities and how Mr. Nagamori and how other people who led to improper accounting practice, this committee will investigate the legal responsibility. Once they were found guilty, is it true that there may be actions taken, such as filing a lawsuit seeking damages? Let me take that question. The starting point of the improper accounting practice started from Mr. Nagamori's. the starting point of the improper accounting practice started from mr nagamori's Regarding company structure, mechanism, process, and cultures, what kind of those things led to these incidents were mentioned clearly in this report. regarding company structure mechanism process and cultures what kind of those things led to these incidents were mentioned clearly in this report We will take this report as a serious lesson learned and try to work as one unit, the entire company together to turn this company around. we will take this report as a serious lesson learned and try to work as one unit the entire company together to turn this company around Hello, I am Kurokawa from Sankei Newspaper. hello i am kurokawa from sankei newspaper I don't mean to repeat my colleagues' questions, but regarding this Responsibility Investigation Committee's future activities and how Mr. Nagamori and how other people who led to improper accounting practice, this committee will investigate the legal responsibility. i don't mean to repeat my colleagues' questions but regarding this responsibility investigation committee's future activities and how mr nagamori and how other people who led to improper accounting practice this committee will investigate the legal responsibility Once they were found guilty, is it true that there may be actions taken, such as filing a lawsuit seeking damages? once they were found guilty is it true that there may be actions taken such as filing a lawsuit seeking damages Let me take that question. let me take that question

Speaker 20: Thank you for your question. That is very much the task of Responsibility Investigation Committee, and we would. The scope is all the director and executive officer of present and the past, and including Nagamori. What to do with our finding is not yet decided. Thank you. Thank you for your question. thank you for your question That is very much the task of Responsibility Investigation Committee, and we would. that is very much the task of responsibility investigation committee and we would The scope is all the director and executive officer of present and the past, and including Nagamori. the scope is all the director and executive officer of present and the past and including nagamori What to do with our finding is not yet decided. what to do with our finding is not yet decided Thank you. thank you

Speaker 31: One more question. This is a bit outside my specialty. I hope I'm not asking a question completely off the tangent. This press conference started at 8:00 P.M. It's already close to 10:00 P.M. Why didn't you decide to start this press conference earlier? It's quite a difficult time for even the media to cover. Why did you choose this late evening to hold this press conference? One more question. one more question This is a bit outside my specialty. this is a bit outside my specialty I hope I'm not asking a question completely off the tangent. i hope i'm not asking a question completely off the tangent This press conference started at 8:00 P.M. this press conference started at 8:00 p.m It's already close to 10:00 P.M. it's already close to 10:00 p.m Why didn't you decide to start this press conference earlier? why didn't you decide to start this press conference earlier It's quite a difficult time for even the media to cover. it's quite a difficult time for even the media to cover Why did you choose this late evening to hold this press conference? why did you choose this late evening to hold this press conference

Speaker 20: You have a point. I would like to thank you for gathering us this such a late time of the day. You have a point. you have a point I would like to thank you for gathering us this such a late time of the day. i would like to thank you for gathering us this such a late time of the day The timing of disclosing this committee's report and I wanted to, we wanted to have the press conference soon after that at this kind of official venues to make sure I address to all of your concerning point in the Q&A sessions. We wanted to piggyback one after the other, first from a third-party committee report, then our own press release. I apologize for having you attend to our press conference until very late evening. The timing of disclosing this committee's report and I wanted to, we wanted to have the press conference soon after that at this kind of official venues to make sure I address to all of your concerning point in the Q&A sessions. the timing of disclosing this committee's report and i wanted to we wanted to have the press conference soon after that at this kind of official venues to make sure i address to all of your concerning point in the q&a sessions We wanted to piggyback one after the other, first from a third-party committee report, then our own press release. we wanted to piggyback one after the other first from a third-party committee report then our own press release I apologize for having you attend to our press conference until very late evening. i apologize for having you attend to our press conference until very late evening

Speaker 25: Thank you very much for your explanation and presentation. I am Takasago from Electronic Device Industry Newspaper. I have a question from a different angle. Your order taking manufacturing is on track according to your forecast and plan. Okay, business is proceeding as usual. Regarding CapEx plan for the future, I believe you are planning to spend ¥140 billion. Thank you very much for your explanation and presentation. thank you very much for your explanation and presentation I am Takasago from Electronic Device Industry Newspaper. i am takasago from electronic device industry newspaper I have a question from a different angle. i have a question from a different angle Your order taking manufacturing is on track according to your forecast and plan. your order taking manufacturing is on track according to your forecast and plan Okay, business is proceeding as usual. okay business is proceeding as usual Regarding CapEx plan for the future, I believe you are planning to spend ¥ 140 billion. regarding capex plan for the future i believe you are planning to spend ¥ 140 billion Majority of that is for India. Currently, I think for your plan, you are trying to build six new plant in India. Out of that, I believe 4 plants are already in construction. This ¥140 billion of CapEx budget, is this something that you are progressing as planned, or perhaps you are postponing or suspending some of those CapEx plan? Majority of that is for India. majority of that is for india Currently, I think for your plan, you are trying to build six new plant in India. currently i think for your plan you are trying to build six new plant in india Out of that, I believe 4 plants are already in construction. out of that i believe 4 plants are already in construction This ¥ 140 billion of CapEx budget, is this something that you are progressing as planned, or perhaps you are postponing or suspending some of those CapEx plan? this ¥ 140 billion of capex budget is this something that you are progressing as planned or perhaps you are postponing or suspending some of those capex plan

Speaker 31: That's my first question, please. That's my first question, please. that's my first question please

Speaker 20: Thank you very much for a very important question about our business. Regarding the CapEx budget of $140 billion, because of the current circumstance, what is most important for us is secure our cash on hand. Right after Nidec stocks being designated as a Security on Special Alert, we have a strict scrutiny of every single investment. This year we will not be able to exercise our entire $140 billion on CapEx and budget. Within the India's CapEx, four plants plus two more. Those are AMEC business plants, for India market and also a compressor plant, for white goods. Those constructions or studies or land surveys are conducting as planned. Thank you very much for a very important question about our business. thank you very much for a very important question about our business Regarding the CapEx budget of $140 billion, because of the current circumstance, what is most important for us is secure our cash on hand. regarding the capex budget of $140 billion because of the current circumstance what is most important for us is secure our cash on hand Right after Nidec stocks being designated as a Security on Special Alert, we have a strict scrutiny of every single investment. right after nidec stocks being designated as a security on special alert we have a strict scrutiny of every single investment This year we will not be able to exercise our entire $140 billion on CapEx and budget. this year we will not be able to exercise our entire $140 billion on capex and budget Within the India's CapEx, four plants plus two more. within the india's capex four plants plus two more Those are AMEC business plants, for India market and also a compressor plant, for white goods. those are amec business plants for india market and also a compressor plant for white goods Those constructions or studies or land surveys are conducting as planned. those constructions or studies or land surveys are conducting as planned Demand in the India market is progressing as we have forecasted, and we are carrying out the investment to India market as planned. Demand in the India market is progressing as we have forecasted, and we are carrying out the investment to India market as planned. demand in the india market is progressing as we have forecasted and we are carrying out the investment to india market as planned

Speaker 25: You mentioned that, in order to secure the cash, you will spend less than ¥140 billion in CapEx. Of course, you haven't closed the year, so it's quite difficult perhaps for you to disclose the details. To what extent do you spend this CapEx? You mentioned that, in order to secure the cash, you will spend less than ¥ 140 billion in CapEx. you mentioned that in order to secure the cash you will spend less than ¥ 140 billion in capex Of course, you haven't closed the year, so it's quite difficult perhaps for you to disclose the details. of course you haven't closed the year so it's quite difficult perhaps for you to disclose the details To what extent do you spend this CapEx? to what extent do you spend this capex

Speaker 20: It's not that we have revised the plan for the entire budget for the CapEx. We haven't suspended any of the major CapEx project. We are trying to control the spend. We would prioritizing the spend as well. It's not that we have revised the plan for the entire budget for the CapEx. it's not that we have revised the plan for the entire budget for the capex We haven't suspended any of the major CapEx project. we haven't suspended any of the major capex project We are trying to control the spend. we are trying to control the spend We would prioritizing the spend as well. we would prioritizing the spend as well

Speaker 25: And, um- And, um- and um- The other question is related to the automotive business, because if I recall correctly, in China, magnet of E-Axle will be launched in China in 2028. Before that, in 2027, 7-in-1 will be launched. There were such specific plans presented that the exhibitions and so on. For example, the magnet-free component in 2028. All of these automotive related plans will go on as planned or are there any changes in those plans? The other question is related to the automotive business, because if I recall correctly, in China, magnet of E-Axle will be launched in China in 2028. the other question is related to the automotive business because if i recall correctly in china magnet of e-axle will be launched in china in 2028 Before that, in 2027, 7-in-1 will be launched. before that in 2027 7-in-1 will be launched There were such specific plans presented that the exhibitions and so on. there were such specific plans presented that the exhibitions and so on For example, the magnet-free component in 2028. for example the magnet-free component in 2028 All of these automotive related plans will go on as planned or are there any changes in those plans? all of these automotive related plans will go on as planned or are there any changes in those plans

Speaker 20: Let me explain the current status for the development. 7-in-1 has already been launched, meaning that it's already available on the market. The next item, magnet-free item, this has a really hard hurdle. That's why including our research institutes, all of the research activities has gone well. Thank you very much for your question. Let me explain the current status for the development. 7-in-1 has already been launched, meaning that it's already available on the market. let me explain the current status for the development 7-in-1 has already been launched meaning that it's already available on the market The next item, magnet-free item, this has a really hard hurdle. the next item magnet-free item this has a really hard hurdle That's why including our research institutes, all of the research activities has gone well. that's why including our research institutes all of the research activities has gone well Thank you very much for your question. thank you very much for your question

Speaker 25: Thank you. Thank you. thank you The other point regarding the financial statements, when the next statement will be issued? According to your explanation regarding the quarter three, based on today's press release, that's all, and then we have to wait for the shareholders' meeting slated for June, and then I'll be able to see more information related to the financial statements. Is this understanding correct? Now, I'd like to ask Mr. Nakagawa to respond to that. The other point regarding the financial statements, when the next statement will be issued? the other point regarding the financial statements when the next statement will be issued According to your explanation regarding the quarter three, based on today's press release, that's all, and then we have to wait for the shareholders' meeting slated for June, and then I'll be able to see more information related to the financial statements. according to your explanation regarding the quarter three based on today's press release that's all and then we have to wait for the shareholders' meeting slated for june and then i'll be able to see more information related to the financial statements Is this understanding correct? is this understanding correct Now, I'd like to ask Mr. Nakagawa to respond to that. now i'd like to ask mr nakagawa to respond to that

Speaker 20: Thank you very much for your question. Regarding the third quarter, it's estimate, not the finalized financial statements. Therefore, we'd like to share the revenue and the profit at the third quarter flash report. Therefore, please wait till the end of March because now we will close our books. Usually toward the announcement in June, we prepare for the official financial statements. We'd like to follow this timeline. Thank you very much for your question. thank you very much for your question Regarding the third quarter, it's estimate, not the finalized financial statements. regarding the third quarter it's estimate not the finalized financial statements Therefore, we'd like to share the revenue and the profit at the third quarter flash report. therefore we'd like to share the revenue and the profit at the third quarter flash report Therefore, please wait till the end of March because now we will close our books. therefore please wait till the end of march because now we will close our books Usually toward the announcement in June, we prepare for the official financial statements. usually toward the announcement in june we prepare for the official financial statements We'd like to follow this timeline. we'd like to follow this timeline

Speaker 10: Thank you very much. It's already passing 10:00 AM in the morning and therefore, we'd like to take this question as the last question for today's press release conference. On the right-hand side, the person in the front row, please. Thank you very much. thank you very much It's already passing 10:00 AM in the morning and therefore, we'd like to take this question as the last question for today's press release conference. it's already passing 10:00 am in the morning and therefore we'd like to take this question as the last question for today's press release conference On the right-hand side, the person in the front row, please. on the right-hand side the person in the front row please

Speaker 17: Thank you very much. I'm Higashi from Kyodo News. Those who resigned, including those people, how you take the legal responsibilities? Are they the criminal responsibilities or civil responsibility? Thank you very much. thank you very much I'm Higashi from Kyodo News. i'm higashi from kyodo news Those who resigned, including those people, how you take the legal responsibilities? those who resigned including those people how you take the legal responsibilities Are they the criminal responsibilities or civil responsibility? are they the criminal responsibilities or civil responsibility

Speaker 19: If you don't mind, I, Iminagi, would like to respond to this question. Yes. We have to consider all the possibilities. Including criminal procedures, yes. The criminal cases should be considered. Next question is related to the impairment loss, because you mentioned that amount to be around ¥250 billion, is it possible that an impairment loss will be zero? Regarding ¥250 billion, this amount, if I strictly answer to this question, this is the amount subjected to the impairment loss. Therefore, yes, it can be zero. However, once again, as we explained, we needed to go through duly processes to finalize the exact amount for the impairment loss. If you don't mind, I, Iminagi, would like to respond to this question. if you don't mind i iminagi would like to respond to this question Yes. yes We have to consider all the possibilities. we have to consider all the possibilities Including criminal procedures, yes. including criminal procedures yes The criminal cases should be considered. the criminal cases should be considered Next question is related to the impairment loss, because you mentioned that amount to be around ¥ 250 billion, is it possible that an impairment loss will be zero? next question is related to the impairment loss because you mentioned that amount to be around ¥ 250 billion is it possible that an impairment loss will be zero Regarding ¥ 250 billion, this amount, if I strictly answer to this question, this is the amount subjected to the impairment loss. regarding ¥ 250 billion this amount if i strictly answer to this question this is the amount subjected to the impairment loss Therefore, yes, it can be zero. therefore yes it can be zero However, once again, as we explained, we needed to go through duly processes to finalize the exact amount for the impairment loss. however once again as we explained we needed to go through duly processes to finalize the exact amount for the impairment loss

Speaker 11: Thank you very much. How about you, the person in the back? Thank you very much. thank you very much How about you, the person in the back? how about you the person in the back

Speaker 18: Thank you very much. I'm Koganezaki from Monthly FACTA Magazine. My question goes to President Kishida because I'd like to know the relationships between Nidec and the accounting firm. According to the report by the third-party investigation committee, the explanation shared with the accounting firm was different from the fact and inconvenient truth was not shared with the accounting firms, according to the report. This may be the problems on their side. On the other hand, regarding with the accounting misconduct count is more than 1,000 as found in this investigation. In addition to that amount is also huge. Therefore, I believe there must be the problems on the side of accounting firm because now they didn't do what they had to do as the accounting firm. I assume your accounting firm is PwC Kyoto. Thank you very much. thank you very much I'm Koganezaki from Monthly FACTA Magazine. i'm koganezaki from monthly facta magazine My question goes to President Kishida because I'd like to know the relationships between Nidec and the accounting firm. my question goes to president kishida because i'd like to know the relationships between nidec and the accounting firm According to the report by the third-party investigation committee, the explanation shared with the accounting firm was different from the fact and inconvenient truth was not shared with the accounting firms, according to the report. according to the report by the third-party investigation committee the explanation shared with the accounting firm was different from the fact and inconvenient truth was not shared with the accounting firms according to the report This may be the problems on their side. this may be the problems on their side On the other hand, regarding with the accounting misconduct count is more than 1,000 as found in this investigation. on the other hand regarding with the accounting misconduct count is more than 1,000 as found in this investigation In addition to that amount is also huge. in addition to that amount is also huge Therefore, I believe there must be the problems on the side of accounting firm because now they didn't do what they had to do as the accounting firm. therefore i believe there must be the problems on the side of accounting firm because now they didn't do what they had to do as the accounting firm I assume your accounting firm is PwC Kyoto. i assume your accounting firm is pwc kyoto Actually, this PwC Kyoto was working for the KDDI, where the misconducts were identified. However, right now it's become PwC Kyoto, and that's why they can work for you as accounting firm. Now, I'd like to ask your evaluation or assessment of PwC Kyoto. In addition to that, this problem or the scale of the issue is so huge and therefore you may want to consider to change your accounting firm. If so, can you please share your plans? Actually, this PwC Kyoto was working for the KDDI, where the misconducts were identified. actually this pwc kyoto was working for the kddi where the misconducts were identified However, right now it's become PwC Kyoto, and that's why they can work for you as accounting firm. however right now it's become pwc kyoto and that's why they can work for you as accounting firm Now, I'd like to ask your evaluation or assessment of PwC Kyoto. now i'd like to ask your evaluation or assessment of pwc kyoto In addition to that, this problem or the scale of the issue is so huge and therefore you may want to consider to change your accounting firm. in addition to that this problem or the scale of the issue is so huge and therefore you may want to consider to change your accounting firm If so, can you please share your plans? if so can you please share your plans

Speaker 20: Thank you very much for your question. First of all, regarding the assessment of our accounting firm, we are not in the position to do that, and therefore, please refrain from making any comments for that. For us, all the time through accounting firm, we have to face the market because we have to disseminate the correct information over the time. Thank you very much for your question. thank you very much for your question First of all, regarding the assessment of our accounting firm, we are not in the position to do that, and therefore, please refrain from making any comments for that. first of all regarding the assessment of our accounting firm we are not in the position to do that and therefore please refrain from making any comments for that For us, all the time through accounting firm, we have to face the market because we have to disseminate the correct information over the time. for us all the time through accounting firm we have to face the market because we have to disseminate the correct information over the time This is a very basic point, that's why we have to go back to this, the starting point to review our positions and the way we work. In addition to that, whether or not we would like to change the accounting firm from PwC Kyoto, no intention of such. This is a very basic point, that's why we have to go back to this, the starting point to review our positions and the way we work. this is a very basic point that's why we have to go back to this the starting point to review our positions and the way we work In addition to that, whether or not we would like to change the accounting firm from PwC Kyoto, no intention of such. in addition to that whether or not we would like to change the accounting firm from pwc kyoto no intention of such

Speaker 18: Thank you very much. Regarding with the report issued by the third-party investigation committee, it stated the very aggressive comments by Mr. Nagamori. For example, he said that everyone was not motivated at all, and I'd like all of them to resign the company. It's really out of the day. That's why the Mr. Nagamori's business style was criticized as the power harassment. Now, when you, Mr. Kishida, looked at the comments and the statements of Mr. Nagamori and his business style, do you think it's a power harassment? Thank you very much. thank you very much Regarding with the report issued by the third-party investigation committee, it stated the very aggressive comments by Mr. Nagamori. regarding with the report issued by the third-party investigation committee it stated the very aggressive comments by mr nagamori For example, he said that everyone was not motivated at all, and I'd like all of them to resign the company. for example he said that everyone was not motivated at all and i'd like all of them to resign the company It's really out of the day. it's really out of the day That's why the Mr. Nagamori's business style was criticized as the power harassment. that's why the mr nagamori's business style was criticized as the power harassment Now, when you, Mr. Kishida, looked at the comments and the statements of Mr. Nagamori and his business style, do you think it's a power harassment? now when you mr kishida looked at the comments and the statements of mr nagamori and his business style do you think it's a power harassment

Speaker 16: President Kishida, did you have such experiences regarding the harassment? Probably it may be regarded as the harassment when I look at his actions and behaviors and statements described in the report. They may be regarded as harassment. I saw some examples in the report. It's not the investigation for the harassments and therefore, please bear with me. How about you, yourself? President Kishida, did you have such experiences regarding the harassment? president kishida did you have such experiences regarding the harassment Probably it may be regarded as the harassment when I look at his actions and behaviors and statements described in the report. probably it may be regarded as the harassment when i look at his actions and behaviors and statements described in the report They may be regarded as harassment. they may be regarded as harassment I saw some examples in the report. i saw some examples in the report It's not the investigation for the harassments and therefore, please bear with me. it's not the investigation for the harassments and therefore please bear with me How about you, yourself? how about you yourself

Speaker 20: Me, including myself, email correspondences described in the third-party committee reports, I understood that there were such correspondences via email. Thank you very much. Me, including myself, email correspondences described in the third-party committee reports, I understood that there were such correspondences via email. me including myself email correspondences described in the third-party committee reports i understood that there were such correspondences via email Thank you very much. thank you very much

Speaker 30: The person wearing the tie over there. I'm Kanie from Yomiuri Newspapers. Let me make a follow-up question. The person wearing the tie over there. the person wearing the tie over there I'm Kanie from Yomiuri Newspapers. i'm kanie from yomiuri newspapers Let me make a follow-up question. let me make a follow-up question

Speaker 16: In the improvement report issued, in generally, it's not done by only one person, but due to the corporate culture, these three z-book problems were caused. The most important person who has to have ultimate responsibility is Mr. Nagamori. President Kishida, when he was in Nidec, you may frequently see such behaviors and statements. Back then, did you say that Mr. Nagamori, "You have done too much," or the, "What you have done or said is out of the time." Did you make such comment to Mr. Nagamori? In the improvement report issued, in generally, it's not done by only one person, but due to the corporate culture, these three z-book problems were caused. in the improvement report issued in generally it's not done by only one person but due to the corporate culture these three z-book problems were caused The most important person who has to have ultimate responsibility is Mr. Nagamori. the most important person who has to have ultimate responsibility is mr nagamori President Kishida, when he was in Nidec, you may frequently see such behaviors and statements. president kishida when he was in nidec you may frequently see such behaviors and statements Back then, did you say that Mr. Nagamori, "You have done too much," or the, "What you have done or said is out of the time." Did you make such comment to Mr. Nagamori? back then did you say that mr nagamori "you have done too much," or the "what you have done or said is out of the time." did you make such comment to mr nagamori

Speaker 20: Thank you very much for your question. Thank you very much for your question. thank you very much for your question I myself said in the previous similar conferences, regardless of the cause of the pressure, how the person perceives those statements and behaviors, it's very important because no matter how strong the pressure would be, how the person should perceive it, because that person should be able to change it for the positive way. Whether we can do that or not, that is a very important basic point. Therefore, we'd like to incorporate it in our improvement plan. Then we can execute it. Actually, as you saw, whether I myself was exposed to the pressures, including harassments in daily businesses, I myself did not have such experiences. When I look at the history, long history of the company, I now recognize that another situations have happened, and I found it by reading the reports. Going away from Mr. I myself said in the previous similar conferences, regardless of the cause of the pressure, how the person perceives those statements and behaviors, it's very important because no matter how strong the pressure would be, how the person should perceive it, because that person should be able to change it for the positive way. i myself said in the previous similar conferences regardless of the cause of the pressure how the person perceives those statements and behaviors it's very important because no matter how strong the pressure would be how the person should perceive it because that person should be able to change it for the positive way Whether we can do that or not, that is a very important basic point. whether we can do that or not that is a very important basic point Therefore, we'd like to incorporate it in our improvement plan. therefore we'd like to incorporate it in our improvement plan Then we can execute it. then we can execute it Actually, as you saw, whether I myself was exposed to the pressures, including harassments in daily businesses, I myself did not have such experiences. actually as you saw whether i myself was exposed to the pressures including harassments in daily businesses i myself did not have such experiences When I look at the history, long history of the company, I now recognize that another situations have happened, and I found it by reading the reports. when i look at the history long history of the company i now recognize that another situations have happened and i found it by reading the reports Going away from Mr. going away from mr Nagamori's influence regarding this point, internally and externally, there are organizations, institutions that has the name of Mr. Nagamori. For example, foundation would be totally irrelevant to the businesses. However, there are name included in the title of the organizations and institutions. Therefore, in this sense, you cannot eliminate the image of Mr. Nagamori. Of course, not you alone, Nidec alone cannot do anything. Nagamori's influence regarding this point, internally and externally, there are organizations, institutions that has the name of Mr. Nagamori. nagamori's influence regarding this point internally and externally there are organizations institutions that has the name of mr nagamori For example, foundation would be totally irrelevant to the businesses. for example foundation would be totally irrelevant to the businesses However, there are name included in the title of the organizations and institutions. however there are name included in the title of the organizations and institutions Therefore, in this sense, you cannot eliminate the image of Mr. Nagamori. therefore in this sense you cannot eliminate the image of mr nagamori Of course, not you alone, Nidec alone cannot do anything. of course not you alone nidec alone cannot do anything

Speaker 30: However, what to do with those names containing Mr. Nagamori, for example, Nagamori Gallery, Nagamori Institute, do you consider the change of the names of those institutions and organizations? I'd like to ask Mr. Iminagi to respond to that. However, what to do with those names containing Mr. Nagamori, for example, Nagamori Gallery, Nagamori Institute, do you consider the change of the names of those institutions and organizations? however what to do with those names containing mr nagamori for example nagamori gallery nagamori institute do you consider the change of the names of those institutions and organizations I'd like to ask Mr. Iminagi to respond to that. i'd like to ask mr iminagi to respond to that

Speaker 19: Thank you very much for your question. Honestly, we have to consider them from now on. Doing right, that should be the corporate culture we have to pursue. Thank you very much for your question. thank you very much for your question Honestly, we have to consider them from now on. honestly we have to consider them from now on Doing right, that should be the corporate culture we have to pursue. doing right that should be the corporate culture we have to pursue Under this spirit, we need to identify what way we have to do, and including all of the relevant people in the company, we'd like to determine what to do for those organizations and institutions. Thank you very much. Under this spirit, we need to identify what way we have to do, and including all of the relevant people in the company, we'd like to determine what to do for those organizations and institutions. under this spirit we need to identify what way we have to do and including all of the relevant people in the company we'd like to determine what to do for those organizations and institutions Thank you very much. thank you very much

Speaker 11: This will be the last question. The person in the back. T his will be the last question. t his will be the last question The person in the back. the person in the back

Speaker 23: I'm Matsuoka from TV Asahi. I'd like to ask a question to Mr. Kishida, because this time report said that Mr. Nagamori's engagement was so huge, although he has already resigned the company. Mr. Nagamori and then Mr. Komori are not here because of the company decision, I assume. Do you think that is the right decision as a company? How about you, Mr. Kishida? I'm Matsuoka from TV Asahi. i'm matsuoka from tv asahi I'd like to ask a question to Mr. Kishida, because this time report said that Mr. Nagamori's engagement was so huge, although he has already resigned the company. i'd like to ask a question to mr kishida because this time report said that mr nagamori's engagement was so huge although he has already resigned the company Mr. Nagamori and then Mr. Komori are not here because of the company decision, I assume. mr nagamori and then mr komori are not here because of the company decision i assume Do you think that is the right decision as a company? do you think that is the right decision as a company How about you, Mr. Kishida? how about you mr kishida

Speaker 20: Thank you very much for your question. Thank you very much for your question. thank you very much for your question Actually, I had to reflect this. I said this in the similar occasions over and over again. Starting in the April of 2024, I have assumed the position of CEO and the presidency. What happens at Nidec, I have to explain it as the CEO representing the company. With regard to Mr. Nagamori, he's totally irrelevant to the company. Based on the result of the third-party investigation committee, what the company is going to do, that is the main objective for this press conference. That's why I have to stand up to explain it. What you said or what you recognize is correct. Actually, I had to reflect this. actually i had to reflect this I said this in the similar occasions over and over again. i said this in the similar occasions over and over again Starting in the April of 2024, I have assumed the position of CEO and the presidency. starting in the april of 2024 i have assumed the position of ceo and the presidency What happens at Nidec, I have to explain it as the CEO representing the company. what happens at nidec i have to explain it as the ceo representing the company With regard to Mr. Nagamori, he's totally irrelevant to the company. with regard to mr nagamori he's totally irrelevant to the company Based on the result of the third-party investigation committee, what the company is going to do, that is the main objective for this press conference. based on the result of the third-party investigation committee what the company is going to do that is the main objective for this press conference That's why I have to stand up to explain it. that's why i have to stand up to explain it What you said or what you recognize is correct. what you said or what you recognize is correct

Speaker 23: Thank you very much. Last question. Mr. Nagamori has resigned as the Chairperson Emeritus with a statement. This statement includes his dreams and hopes for the future. Thank you very much. thank you very much Last question. last question Mr. Nagamori has resigned as the Chairperson Emeritus with a statement. mr nagamori has resigned as the chairperson emeritus with a statement This statement includes his dreams and hopes for the future. this statement includes his dreams and hopes for the future The scandal happened, and because of this big dreams and so on, these statements do not reflect the regret. Do you think that it would be risky and dangerous for the company, Nidec? The scandal happened, and because of this big dreams and so on, these statements do not reflect the regret. the scandal happened and because of this big dreams and so on these statements do not reflect the regret Do you think that it would be risky and dangerous for the company, Nidec? do you think that it would be risky and dangerous for the company nidec

Speaker 20: Thank you very much for your point once again. As the Chairperson Emeritus, this is the last message from Mr. Nagamori, and that's how our company has perceived, and that's why we have disclosed his statement externally. That means that there's no modification, amendment. After receiving his message, we perceive that that is the last message from Mr. Nagamori in the capacity of the Chairperson Emeritus, and that's why we have shared that in a statement. Thank you very much for your point once again. thank you very much for your point once again As the Chairperson Emeritus, this is the last message from Mr. Nagamori, and that's how our company has perceived, and that's why we have disclosed his statement externally. as the chairperson emeritus this is the last message from mr nagamori and that's how our company has perceived and that's why we have disclosed his statement externally That means that there's no modification, amendment. that means that there's no modification amendment After receiving his message, we perceive that that is the last message from Mr. Nagamori in the capacity of the Chairperson Emeritus, and that's why we have shared that in a statement. after receiving his message we perceive that that is the last message from mr nagamori in the capacity of the chairperson emeritus and that's why we have shared that in a statement

Speaker 11: Thank you very much. With this, we'd like to conclude today's press conference, despite of it's very late at night. Thank you very much for your participation and attention. Thank you very much. thank you very much With this, we'd like to conclude today's press conference, despite of it's very late at night. with this we'd like to conclude today's press conference despite of it's very late at night Thank you very much for your participation and attention. thank you very much for your participation and attention

Speaker 20: Thank you very much. Thank you very much. thank you very much