Investigation by External Experts Commissioned by the Internal Investigation Committee

「The company recorded an ordinary loss of ¥213,688 thousand (compared with profit of ¥92,889 thousand in the previous consolidated fiscal year). This was mainly because it recorded an operating loss of ¥201,117 thousand (compared with operating profit of ¥96,498 thousand in the previous consolidated fiscal year) and payment fees of ¥24,046 thousand as non-operating expenses (investigation-related expenses paid to external law firms and other parties by the internal investigation committee), while also recording ¥10,000 thousand in insurance proceeds as non-operating income after receiving payment under D&O insurance (directors and officers liability insurance) covering these expenses.」

「Regarding suspicions of inappropriate words and conduct and improper guidance by the former representative director toward Company employees, which were disclosed during the fiscal year, the Audit & Supervisory Board has confirmed that the investigation of the facts by an investigative committee including external experts, the procedures leading to the resignation of the former representative director, and measures to prevent recurrence and other governance-strengthening initiatives under the new management structure have been appropriately implemented.」

「Recorded ¥24,046 thousand in payment fees as non-operating expenses (investigation-related expenses paid to external law firms and other parties by the internal investigation committee).」