Nidec and Embraer receive approval for joint venture to develop Electric Propulsion System for aerospace sector

Kyoto, Japan, October 6th, 2023 - Japan’s Nidec Corporation (TSE: 6594; OTC US: NJDCY) and Brazil’s Embraer (B3: EMBR3, NYSE: ERJ) welcome the unconditional approval from all necessary regulatory authorities for the establishment of their joint venture, Nidec Aerospace LLC. The transaction combines the complementary synergies and distinct areas of expertise of two world-class engineering conglomerates to develop Electric Propulsion Systems (EPS) for the aerospace sector.

Vincent Braley, chief of staff for Nidec’s Motion and Drives business in the United States, has been appointed the CEO of Nidec Aerospace with immediate effect. Braley brings broad experience in business development and management to his new role to lead the joint venture’s future growth.

“This approval marks a significant milestone not only in Nidec Motion & Energy’s joint venture with Embraer, but also in our shared vision to advance and electrify the way the world travels,” said Michael Briggs, Senior Vice President and President of the Motion & Energy Business Unit at Nidec. “Now with official clearance to proceed, the Nidec Aerospace team is poised to bring the expertise, speed, and drive needed to accelerate sustainable aviation on a global scale.”

“We are thrilled with the unconditional clearance. The next step will be the integration of these two powerful operational and engineering capabilities focused on business excellence. Together, our extraordinary teams will be able to develop advanced solutions to collaborate with the future of sustainable aviation,” said Dimas Tomelin, Senior Vice President of Corporate Strategy, Digital and Innovation, at Embraer.

Unveiled at the Paris Air Show in June, the business combination aims to unlock new opportunities by providing an agnostic portfolio of products and services worldwide, driven initially by the growth of the Urban Air Mobility (UAM) industry. The UAM market is emerging and could create a USD 1.5 trillion market by 2040, according to Morgan Stanley Research.

The joint venture Electric Propulsion System launch customer will be the eVTOL manufacturer Eve Air Mobility (NYSE: EVEX, EVEXW), an independent company well-positioned to be a global leader in the UAM segment by delivering an effective and sustainable new mode of urban transportation. Embraer will contribute expertise, know-how and resources pertaining to the controller, and Nidec will provide its expertise, technological know-how and resources pertaining to electric motors. Nidec owns a 51% share of the joint venture, and Embraer the remaining 49%.

Nidec Aerospace is expected to invest more than USD 77.7 million by 2026 and start mass production in 2026.

Effect on Financial Performance for the Current and Next Fiscal Year
The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2024. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.

Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.