Nidec : Notice Regarding Continuation and Partial Revision of Performance Share Plan for Executives in the Country and Overseas

FOR IMMEDIATE RELEASE

Nidec Corporation

Tokyo Stock Exchange code: 6594

Contact:

Masahiro Nagayasu General Manager Investor Relations [phone]

Released on July 21, 2021, in Kyoto, Japan

Notice Regarding Continuation and Partial Revision of

Performance Share Plan for Executives in the Country and Overseas

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the "Company") hereby announces that the Board of Directors of the Company, in its meeting held on July 21, 2021, resolved to continue and to carry out an additional trust of money to the performance-linked and share based incentive plan (the "Plan") for Executives in the country and overseas (the "Executives") adopted in 2018. For details of this Plan, please refer "Notice Regarding Adoption of New Performance Share Plan for Executives in the Country and Overseas" dated April 24, 2018.

1. Reasons for extension of trust period and additional contribution

The Company resolved to adopt the Plan at the Board of Directors meeting (the "Board Meeting") held on April 24, 2018. Regarding this Plan, we have made partially revision to the Plan and extend the trust period for three years. Also, we decided to make additional contributions to secure the funds for the acquisition of the Company's shares to be delivered during the extended trust period.

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2. Structure of ESOP Trust

(1) Resolution of the meeting

of Board of Directors, etc.

(3) Fund

assets

Grantingresidual(9) retirement compensationwithoutand of

residualtransferissuesor

Continued(8)useof

adjustment

The Affiliate

[Trustor]

Company

Company

PolicesthePlanon (2)Partiallyrevisionof

shares

(4)

(4)

(5)Dividends

TheCompany'

theprice Paymentof

(3) Additional

contribution to the Trust

[Trustees (Co-trustees) ]

Mitsubishi UFJ Trust and Banking Corp.

The Master Trust Bank of Japan Ltd.

[Beneficiaries]

ESOP Trust

The Executives

Company shares and money

(6)Direction not to exercise voting rights

(7) Granting of

Company shares, etc.

Trust

Administrator

(1). With respect to the continuation of the Plan, the Company and the Affiliate Company will obtain an approval at their respective meeting of the Board of Directors, etc.

(2). The Company and the Affiliate Company will partially revise the Policies on the Plan at the meeting of the Board of Directors, etc. with respect to the continuation of the Plan.

(3). The Company will additionally entrust money and extend an ESOP Trust (the "Trust") wherein the Executives who meet the beneficiary requirements are beneficiaries. The amount equivalent to the trust money will be absorbed by the Affiliate Company concerned based on each company's number of the person covered by the Plan.

(4). The Trust will acquire the Company's shares from the Company using the funds entrusted in (3) above, in accordance with the instruction of the trust administrator. The Company's shares within the trust will be managed according to the amount equivalent to the trust money which each company absorbs.

(5). Dividends of the shares of the Company under the Trust will be paid in the same manner as those on other shares of the Company.

(6). Voting rights will not be exercised during the Trust term with regard to the Company's shares under the Trust.

(7). During the trust period, a certain number of units will be awarded to the Executives covered by the Plan

according to executive position and the degree of achievement of performance targets. The Executives who meet

the requirement for beneficiaries, will be awarded the Company's shares, etc. that correspond to the number of

unit (To comply with the trust contract, beneficiaries, in principle, will be awarded the Company's shares

equivalent to 50% of the Company's shares corresponding to their accumulated units (odd-shares will be rounded

off). Meanwhile, the Company's shares in a number equivalent to the remaining units will be converted into cash

in the Trust in accordance with the Trust Agreement and beneficiaries will be awarded monetary equivalent.

However, as for nonresident of Japan will be awarded the cash converted in the Trust, which is equivalent to

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100% of the Company's shares corresponding to their accumulated units).

(8). If there are residual shares at the expiry of the trust period, the Company will either continue the Trust for use in the Plan or for other similar share-based incentive plans by making amendments to the Trust Agreement and additional contributions to the Trust by a resolution of the Board of Directors, etc. Or, the residual shares will be transferred from the Trust to the Company without compensation and the Company will then retire the said residual shares by a resolution of the Board of Directors.

(9). Residual properties after distribution to beneficiaries at the end of the Trust will belong to the Company to the

extent of allowances for trust expenses, which are calculated by deducting the funds to acquire Company shares from the trust money. The portion exceeding the allowances for trust expenses will be donated to groups that have no conflict of interest with the Company and the Affiliate Company.

Note: If the number of the Company's shares under the Trust run out during the trust period due to granting of the Company's shares, etc. to the Executives covered by the Plan, who meet the beneficiary requirements, the Trust will be terminated prior to the expiry of the trust period. Besides, the Company and the Affiliate Company may entrust additional money to the Trust for use in acquisition shares of the Company.

（Reference）
[Trust Agreement]
(1)	Type of Trust	Monetary trust other than an individually operated designated
		money trust (third-party benefit trust)
(2)	Purpose of Trust	Provide the Executives with incentives
(3)	Trustor	The Company
(4)	Trustee	Mitsubishi UFJ Trust and Banking Corporation (Co-trustee: The
		Master Trust Bank of Japan, Ltd.)
(5)	Beneficiaries	The Executives covered by the Plan, who meet the beneficiary
		requirements
(6)	Trust administrator	A third person who has no conflict of interest with the Company
		and the Affiliate Company (Certified public accountant)
(7)	Date of trust agreement	July 26, 2018
		Scheduled to conclude an extension contract in July 2021
(8)	Trust term	July 26, 2018 to August 31, 2024 (tentative)
(9)	Start of the Plan	July 26, 2018
(10)	Exercise of voting rights	No voting rights will be exercised
(11)	Type of acquired shares	Common Company shares
(12)	Amount of trust money	1.58billion yen (tentative) (including trust fee and trust expenses)
(13)	Period of share acquisition	August 5, 2021 (tentative)
(14)	Manner of share acquisition	From the Company (Treasury stock disposal)
(15)	Granted rights holder	The Company
(16)	Residual properties	Residual properties that the Company, which is the holder of
		granted rights, can receive are within the extent of allowances
		for trust expenses, etc., which are calculated by deducting funds
		to acquire the Company shares from the Trust money

(Note)The tentative dates given above are subject to change to appropriate dates according to the applicable laws and regulations.

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(Appendix)

On April 22 2021, we disclosed "Notice Regarding Continuation and Partial Revision of Performance Share Plan for Members of the Board of Directors, etc." in Japanese. We will disclose the notice translated in English as follows.

Released on April 22, 2021, in Kyoto, Japan

Notice Regarding Continuation and Partial Revision of

Performance Share Plan for Members of the Board of Directors, etc.

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the "Company") hereby announces that the Board of Directors of the Company, in its meeting held on April 22, 2021, resolved to continue and partially revise the performance-linked and share based incentive plan ("Board Incentive Plan" Trust (the "BIP" Trust), the "Plan") for Directors (excluding Outside Directors and Audit and Supervisory Committee Members), Executive Officers, and individuals who have the equivalent status (the "Directors, etc.") of the Company, and Directors (excluding Outside Directors) and Executive officers of the Affiliate Company (the "Affiliate Directors, etc.", "Directors, etc. covered by the Plan" along with the Company's Directors, etc.). The Company resolved to submit a proposal regarding the continuation and partial revision of the Plan, targeting the Directors, etc. of the Company, for the approval the 48th Shareholders Meeting to be held in June 2021 (the "Shareholders Meeting").

1. Content of the Plan after revision

(1) Overview of the Plan

The Plan after continuation and revision covers three consecutive business years (fiscal year ending on the end of March 2022 to the end of March 2024) (the "Target period"). This is an incentive plan in which the units are awarded to Directors, etc. depending on the executive position and the degree of achievement of targets in the annual performance targets, etc. And after the Target period has elapsed, based on the cumulative value of the granted units (the "cumulative numbers of

units"), it is designed to grant or pay (the "granted, etc.") the Company's shares and cash in the amount of the converted value of such shares (the "Company's shares, etc.") to Directors, etc. covered by the Plan.

If the Trust is continued according to (4) B) below, the following three fiscal years will be covered.

1. Resolution of the Shareholders Meeting with respect to adopt the Plan
   The Company and the Affiliate Company will resolve the upper limit of trust money to be contributed to the Trust, and the maximum total number of the Company shares, etc. to be granted, etc. to the Directors, etc. covered by the Plan during the covered period, as well as other necessary matters will be resolved at respective Shareholders Meeting of the Company and the Affiliate Company.
2. Eligibility for the Plan (Requirements for beneficiaries)
   The Directors, etc. covered by the Plan will be granted, etc the Company's shares, etc. by the Trust in amounts corresponding to their accumulated units; provided, in principal, they comply with the beneficiary requirements as follows and go through the certain beneficiary procedures to fix:

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1. 1. In principal, the beneficiary assumed the position of a Director, etc. covered by the Plan during the covered period (*1).
   2. The beneficiary has not resigned voluntarily, been dismissed, or engaged in certain illegal conduct while in office.
   3. Any other requirements deemed necessary to fulfill the purpose of the Plan as a share-based incentive plan.
      (*1) If the Directors, etc. got transferred to overseas, etc., the said Directors may granted, etc. the
      Company's shares, etc. before the end of the Target period.
2. Trust Period

1. Trust period after continuation
   The trust period of the Trust, which is set based on the Plan, was about three years from July 26, 2018 to the end of August 2021. As a result, the trust period of the Trust is plan to be extended for three years from August 2021.
2. Extension of the Trust
   Upon expiry of the trust period, the Company may continue the Trust or the Trust as a share-based incentive plan similar to this Plan by making amendments to the Trust Agreement and making additional contributions to the Trust. In such a case, the trust period will be extended further with respect to three years, and the Company and the Affiliate Company will make additional contributions to the Trust within the upper limit of trust money for which approved by the resolution of the respective Shareholders Meeting, and will continue awarding units to the Directors, etc. covered by the Plan during the trust period. In such case where such additional contributions are to be made when there are any Company's shares (excluding Company's shares equivalent to units granted, etc to the Directors covered by the Plan that are yet to be granted, etc) and money remaining in the trust property (the "residual shares, etc."). However, the sum of the amount of residual shares, etc. and additional trust money to be contributed shall be within the upper limit of trust money for which approval by the resolution of each respective Shareholders Meeting has been obtained. Such an extension of the trust period will not be limited to one time only, and the trust period may subsequently be re-extended in the same manner.

1. The Company's Shares, etc. to be granted, etc. to the Directors, etc. covered by the Plan
   The Company's shares will be granted, etc. according to the number of units awarded to each Directors, etc. covered by the Plan. The units are calculated by the following formulas. One unit shall be equivalent to one share of the Company. If, however, the number of the Company's shares under the Trust increases or decreases because the Company's share is subject to a share split, allotment of shares without contribution, or share consolidation, or etc., the Company will adjust the number of the Company's shares, etc. to be granted, etc. for each unit according to the percentage of increase or decrease of the Company's shares, and total upper limit shares as stated in (7) B) below.

（Unit calculation formula）

The units calculated by dividing the individual compensation amount, which has been determined in advance with respect to each executive position by the share price at the time when the Trust acquired

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