Nidec (6594.T): President's Meeting—Follow-Up to the October 1 Press Conference
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Goldman Sachs published a meeting note on Nidec (6594.T) after the company hosted sell-side analysts on October 6, 2026, following the market close, with President and CEO Michio Kaida and acting CFO Kazuo Nakagawa in attendance. Management outlined two requirements for obtaining an unqualified audit opinion—personnel-related remediation and greater certainty over impairment audits—and acknowledged that completing personnel changes affecting more than 20 people across the United States, Mexico, Brazil and China is a precondition, including accounting-department staffing to secure execution capability rather than rebuilding numbers from scratch. The next five-year mid-term plan is being finalized, with disclosure targeted for December 2026; valuations of each business are being built on ROIC versus WACC and cross-checked against frontline forecasts. Generators and AI-related products show high growth and profitability, while automotive and appliance lines lag on both metrics; businesses earning below WACC face downsizing or divestment, with core technologies retained. The FY3/27 operating profit guidance of ¥200bn embeds +¥70bn from lower depreciation and amortization and -¥30bn of contingency and other costs—governance costs of -¥75bn, partly offset by a +¥45bn inverter-related provision reversal. For FY3/28, that reversal lapses, but audit and third-party committee fees should fall to roughly ¥10bn, leaving a ¥195bn operating profit baseline. The note restates no rating or target price.