Investigation by the Internal Investigation Committee into Misconduct by a Former Employee of a Subsidiary

「In connection with the inappropriate use of expenses by the former representative director and president, the company established a special investigation committee comprising external attorneys and certified public accountants in September 2022 and began an investigation. On 14 December 2022, the company received the committee's investigation report, which identified facts including the use of expenses that could not be confirmed as related to the business of the company group.」

「The ¥496 million identified by the Nagoya Regional Taxation Bureau in connection with the misconduct has been recorded as an extraordinary loss. The estimated ¥88 million in additional taxes resulting from the discovery of the misconduct has also been included in income taxes, resident taxes and enterprise taxes.」

「The misconduct is currently under investigation by an internal investigation committee chaired by the company's legal adviser. The ¥498 million identified by the Nagoya Regional Taxation Bureau has been recorded as an extraordinary loss. The estimated ¥88 million in additional taxes resulting from the discovery of the misconduct has also been included in income taxes, resident taxes and enterprise taxes.」