Regarding the Fire at an Overseas Subsidiary of the Company (Fifth Report)
PT. Terra Drone Indonesia (our 99.9%-owned consolidated subsidiary)
PT. Terra Drone Indonesia's Jakarta headquarters. The batteries designated for disposal and considered to have caused the fire were used solely for internal purposes and were different from products for customers.
One of the batteries designated for disposal was handled by an employee in a manner that did not comply with internal rules and was placed on top of a toolbox, after which it fell and caught fire for some reason. In addition, the building lacked adequate smoke-exhaust systems, fire compartments, protective and firefighting equipment, and safe evacuation routes.
Related procedures
Criminal trial and judgment
Central Jakarta District Court
Not disclosed
Michael Wisnu Wardana (マイケル・ウィスヌ・ワルダナ), representative of our Indonesian subsidiary
No fine was imposed. Amount claimed and amount of administrative penalty: Not disclosed.
Losses related to this matter, including amounts expected to arise in the future, have been recognized in the fiscal year ending January 2026. Amount: Not disclosed.
Fiscal year ending January 2026
Losses related to this matter are within the assumptions underlying the consolidated earnings forecast for the fiscal year ending January 2026. At present, we do not recognize any matters that will affect the consolidated earnings forecast for the fiscal year ending January 2027.
Company response
We will work to further strengthen the safety management framework across the Group and ensure thorough implementation of governance.
Michael Wisnu Wardana (マイケル・ウィスヌ・ワルダナ), representative of our Indonesian subsidiary, was sentenced to 1 year and 4 months' imprisonment. Reduction in executive compensation, resignation, and other measures: Not disclosed.
We will continue discussions in good faith with the remaining bereaved families. We will determine and implement an appropriate response after consulting with local counsel. We will continue to respond sincerely to the victims and their families, and work to strengthen the safety management framework and ensure thorough implementation of governance.
If any matter requiring disclosure arises in the future, it will be announced promptly.
| Item | Details |
|---|---|
| Event name | Regarding the Fire at an Overseas Subsidiary of the Company (Fifth Report) |
| Date of occurrence | 9 December 2025 (Tuesday), at approximately 12:10 p.m. local time. Date of awareness and date notification was received: Not disclosed. |
| Subject Entity | PT. Terra Drone Indonesia (our 99.9%-owned consolidated subsidiary) |
| Target Locations / Products | PT. Terra Drone Indonesia's Jakarta headquarters. The batteries designated for disposal and considered to have caused the fire were used solely for internal purposes and were different from products for customers. |
| Cause | One of the batteries designated for disposal was handled by an employee in a manner that did not comply with internal rules and was placed on top of a toolbox, after which it fell and caught fire for some reason. In addition, the building lacked adequate smoke-exhaust systems, fire compartments, protective and firefighting equipment, and safe evacuation routes. |
| Amount of Impact on Business Performance | Losses related to this matter, including amounts expected to arise in the future, have been recognized in the fiscal year ending January 2026. Amount: Not disclosed. |
| Accounting period in which recognized | Fiscal year ending January 2026 |
| Impact on Earnings Forecast | Losses related to this matter are within the assumptions underlying the consolidated earnings forecast for the fiscal year ending January 2026. At present, we do not recognize any matters that will affect the consolidated earnings forecast for the fiscal year ending January 2027. |
| Type of litigation or proceeding | Criminal trial and judgment |
| Court or authority | Central Jakarta District Court |
| Defendant | Michael Wisnu Wardana (マイケル・ウィスヌ・ワルダナ), representative of our Indonesian subsidiary |
| Date of filing / date of action | Judgment handed down on 21 May 2026 (local time) |
| Claim amount / surcharge amount | No fine was imposed. Amount claimed and amount of administrative penalty: Not disclosed. |
| Measures to prevent recurrence | We will work to further strengthen the safety management framework across the Group and ensure thorough implementation of governance. |
| Directors' and officers' liability | Michael Wisnu Wardana (マイケル・ウィスヌ・ワルダナ), representative of our Indonesian subsidiary, was sentenced to 1 year and 4 months' imprisonment. Reduction in executive compensation, resignation, and other measures: Not disclosed. |
| Outlook | We will continue discussions in good faith with the remaining bereaved families. We will determine and implement an appropriate response after consulting with local counsel. We will continue to respond sincerely to the victims and their families, and work to strengthen the safety management framework and ensure thorough implementation of governance. |
| Planned follow-up disclosure | If any matter requiring disclosure arises in the future, it will be announced promptly. |
Items this document does not state (8)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company understands that the fire was caused when a battery designated for disposal was handled in breach of internal rules, fell, and caught fire. The Company also states that the building was found to lack adequate smoke-exhaust systems, fire compartments, protective and firefighting equipment, and safe evacuation routes. Regarding the progress of compensation payments, the Company explains that payments to the families of 20 deceased individuals have been completed.