{ "docId": "019dd923-622c-750b-8b96-7f2e60571091", "docSlug": "9e3d3c9dc613", "documentTitle": "Nidec Corp. (6594 JP)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2016-12-13 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 40, "pageCount": 54, "prevPage": 39, "nextPage": 41, "slideType": "other", "function": "other", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide contains a Bloomberg stock chart for Sharp (2007-2013) and quotes regarding Nidec's demanding work culture.", "elementsJson": [ "paragraph", "line_chart", "quote_block", "footnote" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-7f2e60571091/40", "deckHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-7f2e60571091#slide-40", "components": [ { "bbox": null, "kind": "callout", "text": "Neither his current, nor possible future, role should be reassuring to investors.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203f-7169-9f8e-29365fb6b40b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.77, "x": 0.118, "y": 0.265 }, "kind": "chart", "text": "Sharp stock performance chart (2007-2013)", "attrs": null, "subkind": "line", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "899e788d-da28-404b-85fa-e162caefdade", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.77, "x": 0.118, "y": 0.163 }, "kind": "paragraph", "text": "Perhaps as telling about the culture is who is still at Nidec. In 2014, Nidec hired former Sharp president and executive chairman Mikio Katayama as Chief Technology Officer. Mr. Katayama is expected to be a leader at Nidec post-Nagamori. Neither his current, nor possible future, role should be reassuring to investors. Below is the chart for Sharp during Mr. Katayama’s tenure as president / COO and then executive chairman.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4d406483-6072-48d1-a5f6-8afba18d1aa7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.77, "x": 0.118, "y": 0.093 }, "kind": "paragraph", "text": "Nagamori and Kure reportedly did not get along, and Mr. Kure left to become CEO of Renesas Electronics. (Nidec had tried to buy Renesas in 2015, but the sale was blocked by automotive companies that own stakes in Renesas.)", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8917abf8-9816-4d09-a053-3bd082db791a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.77, "x": 0.118, "y": 0.495 }, "kind": "paragraph", "text": "Another curious aspect of the Cult of Nagamori is his very recent public reversal on employee working conditions. The comic (and numerous articles and interviews we have conducted) make clear that blood, sweat, and tears has been a significant part of the Nagamori / Nidec ethos. An August 2016 Bloomberg article had the following to say:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b22c6903-b842-4c49-a87e-868e3741afc1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.74, "x": 0.14, "y": 0.66 }, "kind": "quote", "text": "These days, if you tell people to put everything into their work, you’re soon dubbed a black company, he says, referring to the Japanese term for firms that flout labor standards. I have no problem saying that. If you don’t work, you lose. The only ones I can’t stand are layabouts.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "01037f1c-e19a-4523-a51d-eab5d6fb458e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.74, "x": 0.14, "y": 0.57 }, "kind": "quote", "text": "That doesn't mean life at Nidec is easy. Even in a nation renowned for devoted workers, the company stands out for its demands on employees. Meetings, Nagamori says, are held on weekends or after regular tasks are done. New staff are sometimes told to clean toilets, and taking days off is seen as lazy. Nagamori makes no apologies.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ab73ee26-9ad8-4d63-af35-02791298f36a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“That doesn't mean life at Nidec is easy. Even in a nation renowned for devoted workers, the company stands out for its demands on employees. Meetings, Nagamori says, are held on weekends or after regular tasks are done. New staff are sometimes told to clean toilets, and taking days off is seen as lazy. Nagamori makes no apologies.” — Bloomberg", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-203f-7169-9f8e-2c9464818a09", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.77, "x": 0.118, "y": 0.79 }, "kind": "source-note", "text": "Footnotes 134-138", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ab28ea4-1630-45a2-82e3-38431f237ab1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }