Financial impact of purchase-and-resale transactions involving goods whose existence could not be verified and unresolved matters

「The company had been sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages, but the matter was settled and concluded on 19 May 2025.」

「The company had been sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. As a settlement was reached on 19 May 2025, the section titled “(6) Significant litigation and other matters” included in the previous fiscal year’s annual securities report is no longer applicable.」

「The company was sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「The company was sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「The company was sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「The company was sued by みずほ東芝リース株式会社 in the Tokyo District Court on 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract. The lawsuit concerns a claim by みずほ東芝リース株式会社 for contractual damages equal to the purchase price, alleging that the company entered into a sales contract with it in August 2019 to purchase servers and peripheral equipment, among other items, and cancelled the contract in November of that year. In the alternative, みずほ東芝リース株式会社 claims payment of the purchase price under the sales contract. The amount claimed is ¥10,926 million plus delay damages. The company intends to respond appropriately, including seeking dismissal of the claim.」

「The company intends to respond appropriately, including seeking dismissal of the claim. Although this matter could affect the financial position and operating results of the company group, it has not been reflected in the condensed quarterly consolidated financial statements because a reliable estimate of the amount of the impact is difficult at this time.」

「The lawsuit concerns a claim by みずほ東芝リース株式会社 for contractual damages equal to the purchase price, alleging that the company entered into a sales contract in August 2019 to purchase servers and peripheral equipment, among other items, and cancelled the contract in November of that year. In the alternative, it claims payment of the purchase price under the sales contract. The amount claimed is ¥10,926 million plus delay damages.」

「Because the company received a ¥1,275 million refund from some counterparties on 27 July 2021 in relation to transactions underlying the advances paid, the balance of advances paid decreased by the same amount. The net amount of ¥2,926 million at the end of the current third quarter consolidated accounting period is presented under other non-current liabilities. In addition to the above, there were unsettled matters for which orders had been placed and received, and in connection with these matters みずほ東芝リース株式会社 filed a lawsuit in the Tokyo District Court dated 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「Because the company received a ¥1,275 million refund from some counterparties on 27 July 2021 in relation to transactions underlying the advances paid, the balance of advances paid decreased by the same amount. The net amount of ¥2,926 million at the end of the current second quarter consolidated accounting period is presented under other non-current liabilities. In addition to the above, there were unsettled matters for which orders had been placed and received, and in connection with these matters みずほ東芝リース株式会社 filed a lawsuit in the Tokyo District Court dated 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. The claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「After the end of the quarterly consolidated accounting period, on 27 July 2021, the company received a refund of ¥1,275 million from some of the counterparties to transactions underlying the advances paid.」

「With respect to the lawsuit, the claim was amended on 18 January 2021 to add, as an alternative claim, a claim for payment under the sales contract.」

「In addition to the above, there were unsettled matters for which orders had been placed and received. In connection with these matters, みずほ東芝リース株式会社 filed a lawsuit in the Tokyo District Court dated 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. According to the complaint served, みずほ東芝リース株式会社 entered into a sales contract with the company in August 2019 under which the company would purchase servers and peripheral equipment, among other items, and the company cancelled the contract in November of that year. みずほ東芝リース株式会社 claims that it thereby acquired a right to claim contractual damages from the company in an amount equal to the purchase price. The amount claimed is ¥10,926 million plus delay damages. The company intends to respond appropriately, including seeking dismissal of the claim.」

「In addition to the above, there were unsettled matters for which orders had been placed and received. In connection with these matters, みずほ東芝リース株式会社 filed a lawsuit in the Tokyo District Court dated 31 March 2020, with service of the complaint on the company on 24 June 2020, seeking contractual damages. According to the complaint served, the company entered into a sales contract with みずほ東芝リース株式会社 in August 2019 to purchase servers and peripheral equipment, among other items, and cancelled the contract in November of that year. みずほ東芝リース株式会社 claims that, as a result, it acquired a right to claim contractual damages from the company in an amount equal to the purchase price. The amount claimed is ¥10,926 million plus delay damages.」

「In addition to the above, there were unsettled matters for which orders had been placed and received. In connection with these matters, みずほ東芝リース株式会社 notified the company that it had filed a lawsuit on 31 March 2020 seeking ¥10,926 million, but the complaint had not yet been received and its contents were being confirmed.」

「During a tax investigation by the National Tax Agency, questions were raised regarding the substance of some of the company’s merchandise purchase-and-sale transactions. The company therefore established a special investigation committee comprising 2 external experts with no interests in the company and 1 outside audit & supervisory board member, for a total of 3 members, and conducted an investigation into the matter. In addition to the above, there were unsettled matters for which orders had been placed and received, and their future status could affect the company’s financial position and operating results. As a result, transactions whose substance could not be verified were identified. The company cancelled those transactions, recorded the amounts received and paid as advances received of ¥46,404 million and advances paid of ¥44,753 million, respectively, and presented the net amount of ¥1,650 million under other non-current liabilities.」