Misconduct by an employee of the Group
The Group (specific consolidated company name: Not disclosed)
Office-related equipment and other items owned by 1 corporate customer that had commissioned the Group
1 employee used their position in the course of their duties to remove equipment and other items without authorization and sell them to a dealer that purchases such items
Company response
The employee was removed from duties related to the matter. No suspension of shipping, production or sales activities, or other operations, was disclosed
An emergency response headquarters reporting directly to the president was established, and the internal department in charge interviewed the employee, investigated the accounts to which payments were made, and obtained transaction records and related documents from the purchasing dealer. The internal investigation is still ongoing
An Operations Risk Management Department reporting directly to the president will be established on 15 September 2026. The Company will review its operating management framework, including the Group's internal controls covering inventory management, segregation of duties, mutual checks and monitoring, and will formulate effective measures to prevent recurrence
A firm determination will be made based on the investigation results
Costs, including compensation to the customer, are under review and have not yet reached a stage where they can reasonably be calculated. Proceeds improperly received by the employee: approximately ¥122 million
The impact is under review. The Company will promptly disclose any revision to its earnings forecast or other developments. The announcement of the financial results for the second quarter (interim period) of the fiscal year ending March 2027 remains scheduled for 30 October 2026, as previously announced
Related procedures
Fact-finding investigation based on an internal investigation and internal whistleblowing
The Company will give top priority to responding to the affected customer, promptly determine the total amount of the losses, and provide compensation and take other necessary measures. The employee concerned will be dealt with strictly after the facts have been thoroughly examined. The Company will investigate all customers, determine the cause and review its operating management framework
The Company plans to make further disclosures based on the investigation results. It will promptly disclose any revision to its earnings forecast or other matters requiring disclosure
| Item | Details |
|---|---|
| Event name | Misconduct by an employee of the Group |
| Date of occurrence | The period during which the misconduct occurred is under investigation. Discovered on 3 September 2026 (Thursday) |
| Date recognized / date notice received | Discovered on 3 September 2026 (Thursday) |
| Subject Entity | The Group (specific consolidated company name: Not disclosed) |
| Target Locations / Products | Office-related equipment and other items owned by 1 corporate customer that had commissioned the Group |
| Cause | 1 employee used their position in the course of their duties to remove equipment and other items without authorization and sell them to a dealer that purchases such items |
| Amount of Impact on Business Performance | Costs, including compensation to the customer, are under review and have not yet reached a stage where they can reasonably be calculated. Proceeds improperly received by the employee: approximately ¥122 million |
| Impact on Earnings Forecast | The impact is under review. The Company will promptly disclose any revision to its earnings forecast or other developments. The announcement of the financial results for the second quarter (interim period) of the fiscal year ending March 2027 remains scheduled for 30 October 2026, as previously announced |
| Type of litigation or proceeding | Fact-finding investigation based on an internal investigation and internal whistleblowing |
| Suspended operations | The employee was removed from duties related to the matter. No suspension of shipping, production or sales activities, or other operations, was disclosed |
| Investigation structure | An emergency response headquarters reporting directly to the president was established, and the internal department in charge interviewed the employee, investigated the accounts to which payments were made, and obtained transaction records and related documents from the purchasing dealer. The internal investigation is still ongoing |
| Measures to prevent recurrence | An Operations Risk Management Department reporting directly to the president will be established on 15 September 2026. The Company will review its operating management framework, including the Group's internal controls covering inventory management, segregation of duties, mutual checks and monitoring, and will formulate effective measures to prevent recurrence |
| Directors' and officers' liability | A firm determination will be made based on the investigation results |
| Outlook | The Company will give top priority to responding to the affected customer, promptly determine the total amount of the losses, and provide compensation and take other necessary measures. The employee concerned will be dealt with strictly after the facts have been thoroughly examined. The Company will investigate all customers, determine the cause and review its operating management framework |
| Planned follow-up disclosure | The Company plans to make further disclosures based on the investigation results. It will promptly disclose any revision to its earnings forecast or other matters requiring disclosure |
Items this document does not state (10)
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.1 employee used their position in the course of their duties to remove, without authorization, office-related equipment and other items owned by 1 corporate customer that had commissioned the Group, and sold them to a dealer that purchases office supplies. The customer's total losses and costs, including compensation, are under review.