Notice Regarding the Investigation Findings and Measures to Prevent Recurrence Concerning Fraudulent Activities by a Former Employee of the Group (Interim Report)
1 former employee of the Group, 株式会社ＩＤホールディングス and the Group
Office-related equipment and other items owned by 1 corporate customer that commissioned the work, and an investigation of similar cases covering all 319 business sites and 1,951 employees
Deficiencies in parts of the Group's business management framework, including inventory control, segregation of duties, mutual checks and monitoring, which prevented it from eliminating opportunities for misconduct
The impact on the Group's consolidated results is still being calculated. The total amount received by the former employee was approximately ¥128 million, but this is not the amount of the impact on the company's results.
Prior fiscal years and the current fiscal year
If an adjustment to the earnings forecast or any other matter requiring disclosure arises, the company will promptly notify the market. The revised figures as of the present time are Not disclosed
Company response
An advisory committee comprising external experts established on 30 September 2026. The chair's name is Not disclosed
① Strengthening asset and inventory management for customer-owned property, goods and other assets (ensuring continuity of record-keeping and approvals throughout the management process) ② Improving the work environment in ways that reduce opportunities for misconduct (avoiding the intersection of motives and opportunities that could lead to misconduct, strengthening mutual checks, and tightening rotation requirements for employees engaged in the same duties over long periods) ③ Strengthening abnormality detection and supervisory functions (inspections by the Business Risk Management Department and stronger audits during on-site visits) ④ Strengthening the framework and governance (improving the effectiveness of training and the internal whistleblowing system, and regular management monitoring of these recurrence prevention measures). The company will also introduce an AI-based risk management system.
Once the impact of this misconduct on the company's results has been finalized, the company will make a rigorous determination regarding accountability and promptly notify the market once a decision has been made.
The company will steadily implement the recurrence prevention measures, while the Business Risk Management Department will monitor high-risk operations and sites, conduct unannounced inspections and issue corrective instructions. The company will also investigate the amount of customer losses and proceed with compensation to customers and other necessary measures.
The company will promptly disclose any matters still under confirmation as soon as they become clear. It will also promptly notify the market if an adjustment to the earnings forecast or other such matter arises. The details of management accountability will be promptly disclosed once decided.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Investigation Findings and Measures to Prevent Recurrence Concerning Fraudulent Activities by a Former Employee of the Group (Interim Report) |
| Date recognized / date notice received | The matter was uncovered through an internal whistleblowing report, but the specific date of discovery is Not disclosed |
| Subject Entity | 1 former employee of the Group, 株式会社ＩＤホールディングス and the Group |
| Target Locations / Products | Office-related equipment and other items owned by 1 corporate customer that commissioned the work, and an investigation of similar cases covering all 319 business sites and 1,951 employees |
| Cause | Deficiencies in parts of the Group's business management framework, including inventory control, segregation of duties, mutual checks and monitoring, which prevented it from eliminating opportunities for misconduct |
| Amount of Impact on Business Performance | The impact on the Group's consolidated results is still being calculated. The total amount received by the former employee was approximately ¥128 million, but this is not the amount of the impact on the company's results. |
| Accounting period in which recognized | Prior fiscal years and the current fiscal year |
| Impact on Earnings Forecast | If an adjustment to the earnings forecast or any other matter requiring disclosure arises, the company will promptly notify the market. The revised figures as of the present time are Not disclosed |
| Investigation structure | An advisory committee comprising external experts established on 30 September 2026. The chair's name is Not disclosed |
| Measures to prevent recurrence | ① Strengthening asset and inventory management for customer-owned property, goods and other assets (ensuring continuity of record-keeping and approvals throughout the management process) ② Improving the work environment in ways that reduce opportunities for misconduct (avoiding the intersection of motives and opportunities that could lead to misconduct, strengthening mutual checks, and tightening rotation requirements for employees engaged in the same duties over long periods) ③ Strengthening abnormality detection and supervisory functions (inspections by the Business Risk Management Department and stronger audits during on-site visits) ④ Strengthening the framework and governance (improving the effectiveness of training and the internal whistleblowing system, and regular management monitoring of these recurrence prevention measures). The company will also introduce an AI-based risk management system. |
| Directors' and officers' liability | Once the impact of this misconduct on the company's results has been finalized, the company will make a rigorous determination regarding accountability and promptly notify the market once a decision has been made. |
| Outlook | The company will steadily implement the recurrence prevention measures, while the Business Risk Management Department will monitor high-risk operations and sites, conduct unannounced inspections and issue corrective instructions. The company will also investigate the amount of customer losses and proceed with compensation to customers and other necessary measures. |
| Planned follow-up disclosure | The company will promptly disclose any matters still under confirmation as soon as they become clear. It will also promptly notify the market if an adjustment to the earnings forecast or other such matter arises. The details of management accountability will be promptly disclosed once decided. |
Items this document does not state (12)
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 determined that the main cause was deficiencies in parts of its business management framework, including inventory control, segregation of duties, mutual checks and monitoring, which failed to eliminate opportunities for misconduct.