Nidec : ESG Conference Presentation Material

NIDEC CORPORATION
ESG Conference
Presentation Material
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Disclaimer Regarding Forward-looking Statements

These presentation materials and the related discussions contain forward-looking statements including expectations, estimates, projections, plans and strategies. Such forward-looking statements are based on management's targets, assumptions and beliefs in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, changes in customer circumstances and demand, exchange rate fluctuations, and the Nidec Group's ability to design, develop, mass produce and win acceptance of its products and to acquire and successfully integrate companies with complementary technologies and product lines. Please see other disclosure documents filed or published by the Nidec Group companies, including the Japanese securities report, for additional information regarding such risks and uncertainties. Nidec undertakes no obligation to update the forward-looking statements unless required by law.

 Nidec Group's Corporate Philosophies

Clarify Nidec Group's mission and vision all the employees share,

and align employees with the direction of the company

The aim of Nidec Corporation is to contribute to the development of society and the welfare of the general public

Policy around the world. Nidec aims to do so by supplying the highest quality products. Our company is sincerely and enthusiastically dedicated to the trinity of technology, skillfulness, and modern science.

Thereby, Nidec strives to promote the prosperity of our society, our company, and all our employees.

We contribute to the Earth by producing the highest quality motors in the world.

Mission	All Nidec employees work to the very best of their ability to send motors into the world. It is with these motors and
other products we make that we solve various issues such as the conservation
	of the global environment, and contribute to making better lives for people all over the world.

【Corporate Philosophies】

Discipline

&

Code

■ Nidec is a global company that grows sustainably for the next 100 years and beyond. Vision ■ Nidec is the world's leading solution-providing business group that solves numerous

problems for the people in the world.

	■ "Nidec Way" "The Challenging Road"
Value	・Three Corporate Policies: "Passion, Enthusiasm, and Tenacity," "Work smart," and "Do your work now; do it
	without hesitation; do it until completed."
	・"Creativity," "Respect," "Collaboration," "Integrity," "Decision Making," "Team Building," and "Grow Talent."
■ 3Q6S
■ Seven Articles of Nidec Employees, 3Ps (Be proactive, productive, and professional), and eliminating six bad habits
■ Three Management Principles ■ Three Basic Management Philosophies
■ Three Management Methods Three Management Attitudes Three Conditions for Success	3
■ CSR Charter (social responsibility, respect for diversity, etc.)

• Vision2025: Further Innovative Changes, Management to Realize the Visions

The next generation management system gets launched on the basic grounds formed by the founder's leadership

<> period>

<

To be a global company

>

growing sustainably for next

100 years and beyond

Founder's leadership

Next generation's management system

Established a business portfolio

Laid out a framework to become

Transform business models to

to accomplish ¥1T sales

a truly global company

accomplish ¥10T sales

¥10T sales

(Target)

Business

Vision2025

scale

¥4T

sales

targeted

¥2T

sales

¥1T sales achieved

targeted

Head office built

Established by 4

in 2003

people in 1973

1973 1990

2000

2014

2020

2022

2025

2030 2040

2050

XX year

Present

2023 50th anniversary

2073

100th anniversary

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This slide includes forward-looking statements. See Disclaimer on Page 2.

 Review on Vision2020 and Road to Vision2025

Try again to accomplish ¥2 trillion sales in FY22

FY2015 to FY2020				FY2021 to FY2022			FY2023 to FY2025
Vision2020				Vision2020 to 25			Vision2025
- Target for consolidated net sales:		-	Target for consolidated net sales:		-	Target for consolidated net sales:
2 trillion yen (including sales attributable to			2 trillion yen			4 trillion yen
new M&A of approx. 500 billion yen)		-	Productivity improvement		-	Productivity improvement
- Sales target for Automotive:			To increase sales and profit per			To double sales and profit per employee
		employee by 30%
700 billion to 1 trillion yen				-	ROIC*: over 15%
- Target for consolidated operating profit		-	ROIC*: over 10%
ratio: 15%				- To be a top-rated ESG company
- Target for ROE: 18%			1.	Address social issues with accumulated skills of creating the world's
(assuming shareholders' equity ratio of 60%)				first and No.1 product
- Five regional HQ management units			2.	Promote ESG management centered on carbon neutrality
		3. Strengthen unified organization of Nidec group and its governance
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This slide includes forward-looking statements. See Disclaimer on Page 2.			*ROIC: Return on Invested Capital

New 5 Big Waves in a Post-Pandemic World

Nidec's business solutions that solve the common problems of humankind

Vapor chamber Heat pipe

	Traction motor Traction motor system
	ADAS related product	（E-Axle）
Fan5G & Thermal solutions
Decarbonization
(Keywords: Tactile sense, image stabilization and heat ventilation module)
(Keywords: Drive/Turn/Brake, safety/comfort and thermal management）

Reducer Motor for drones

Automated guided vehicle

Manpower saving

(Keywords: Industrial robots, servicing robots and logistics)

Nearline HDD motor

Digital data explosion

Power saving

Home appliance motor

(Keywords: High speed / large data, GAFA* and "Stay Home")		(Keywords: Sterilization, hygiene and "Stay Home")
	Refrigerator compressor	6
* GAFA: Google, Apple, Facebook and Amazon

ESG Management: Corporate Governance

Build a fair, transparent and highly effective governance system

Internal directors	Outside directors	Ratio of outside	Ratio of female	Features
directors	directors

4 directors	6 directors
(1 male and 5 females)
	60%
CEO COO	(6 directors)

	-	Ratio of outside directors maintained over 50%.
50%	-	The number of female directors (outside directors) increased by
(5 directors)		three from the last year to ensure diversity in the Board
		(5 female directors in total)

			Professional skills and experience required for Members of the Board of Directors (Maximum of three)
	<_directors27_ skill="" matrix="">
	Business	Technology	Internationality,	Human	Environment	Legal affairs,	Finance,	Governance,
		global	resources	risk
		strategy	and R&D	and society	compliance	accounting
		experience	development	management
Mr. Nagamori	Representative Director, Chairman and CEO	●	●						●
Mr. Kobe	Representative Director, President and COO	●	●						●
Mr. Murakami	Fulltime director*			●			●	●
Mr. Ochiai	Fulltime director*			●		●			●
Mr. Sato	Outside director	●						●	●
Ms. Komatsu	Outside director		●		●	●
Ms. Sakai	Outside director				●		●	●
Ms. Yamada	締 Outside director*			●	●		●
Ms. Akamatsu	Outside director*				●	●			●
Ms. Watanabe	Outside director*			●	●	●

*Directors who are Audit and Supervisory Committee Members

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ESG Management: Foundation of Sustainability Committee*

Sustainability committee was established in the Board of Directors

to monitor the execution of ESG management

Nidec established Sustainability Committee, which makes a decision on sustainability, within the Board of Directors. Nidec will find challenges to be the ideal company, a company growing for the next 100 years and beyond, and promote its sustainable management in a longer-term and broader perspective through the committee's activities.

ESG Materiality Steering Committee	Owner: Hiroshi Kobe Representative Director and President
Executive member: Akinobu Samura Senior Vice President
		Members：Management Committee members and all Vice Presidents

		1 Monitor the executing
		organization
		2. Reflect external opinions		Executing organization
		on management
Board of		Sustainability				ESG Materiality
Directors		Committee		人		Steering
			Committee
				材
				開
	Discuss management challenges	発		Execute business
	related to sustainability for the		operation relating to
	purpose of achieving sustainable		sustainability and confirm
	growth and improving corporate			the progress
	value in a long-term

- Sustainability Committee is composed of five directors including three outside

members, monitors ESG Materiality Steering Committee and reflects opinions

from various stakeholders on management.

- The members have professional skills and experience in various areas such as

human resources development, legal affairs and compliance, finance and

accounting, internationality and global experience, environment and society,

Contribute to environmental sustainability

Officers in charge: Akinobu Samura Senior Vice President

Kazuya Hayafune	Senior Vice President
Kazutsugu Igarashi	Senior Vice President

Provide products and services adapted to social change

Officers in charge: Toshihiko Koseki	First Senior Vice President
Kazuya Hayafune	Senior Vice President
Eiji Miyamoto	Vice President

Retain and develop diverse talent

Officers in charge: Fumiaki Ushio Senior Vice President

Tomoko Hirata Vice President

Build an internationally competitive supply chain to solve social issues

Officers in charge: Keitaro Murakoshi Vice President

Create a solid governance system

Officers in charge Fumiaki Ushio	Senior Vice President
Maki Okajima	Vice President
Tomonori Seta	Vice President
Tomoko Hirata	Vice President

• Realize a carbon-free society
• Manage waste and hazardous waste
• Handle water risks
• Control product safety and quality
• Respond to changes in the technological environment and the industrial structure
• Protect and utilize intellectual properties
• Maintain and foster globally competitive human resources
• Promote diversity
• Promote occupational safety and health, and health- oriented business management
• Respect human rights and follow proper labor practices
• Sustainable procurement considering environmental and social aspects
• Build a fair, transparent and highly effective governance system
• Follow thorough compliance with laws and regulations
• Build a risk management system
• Promote information security measures

governance and risk management. Nidec expects discussions between the

members in the committee from wide range of perspectives.

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*Board of Directors decided to establish the committee as a voluntary advisory body to the Board on Aug.6, 2022.

 Establishing a Nomination Committee

Establish a nomination committee to further enhance Nidec's corporate governance system.

• Established on November 05, 2022
• Mission

When deciding a selection policy, selection criteria, and possible candidates for the members of Board of Directors and executives, the committee secures proper involvement and advice from independent outside directors to ensure fairness, transparency, and objectivity, and further enhance Nidec's corporate governance system.

• Roles

When consulted by the Board of Directors, the committee deliberates the basic selection policy, selection criteria, and possible candidates for the members of Board of Directors and executives, and submits a report on the results of the deliberation to the Board of Directors.

Nomination

Committee

Chairperson

Internal board member

External board member

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 Establishing Eco-governance Department

Establish Eco-governance department to promote environmental management.

• Established on April 01, 2022

■ Mission

Contribute to Nidec's sustainable business growth by promoting an environmental management.

■ Roles

1. Understand, analyze, and forecast the environmental aspect of the society and customer trends, and reflect the results in Nidec's mid- and long-term management strategies.
2. Design and develop a group-wide environmental policy and an action plan based on a management strategy, and build and operate a system to promote the strategy
3. Implement measures to understand, and identify and solve issues with, the actual environmental management regarding products and business bases.

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