Loss Risk from Cyberattacks, Information Leaks and Remittance Fraud

「In the fiscal year ended March 2025, the Company suffered a loss after funds remitted overseas in response to an email containing fraudulent payment instructions impersonating an overseas supplier were misappropriated, resulting in a loss of ¥25 million. In response, when changing the account to which funds are remitted, the Company now confirms the change with the counterparty by telephone as well as by email. It has also revised its QMS business processes by adopting two-factor authentication for overseas remittances and introducing interdepartmental checks using dedicated forms, thereby establishing a more stringent information security framework.」