Administrative sanctions, litigation and reputational damage arising from violations of laws and ethical standards

「The Group has introduced an internal whistleblowing system to prevent and detect misconduct at an early stage and enhance the agility of its self-cleansing process. In addition, it has established Anti-Bribery Guidelines to ensure compliance with anti-corruption and anti-bribery laws applicable in all countries and regions where it operates, thereby strengthening its framework for preventing misconduct.」

「The Group has introduced an internal whistleblowing system to prevent and detect misconduct at an early stage and enhance the agility of its self-cleansing process. In addition, it has established Anti-Bribery Guidelines to ensure compliance with anti-corruption and anti-bribery laws applicable in all countries and regions where it operates, thereby strengthening its framework for preventing misconduct.」

「With respect to the compliance code of conduct, the Company partially revised it in fiscal 2020 to strengthen its coverage of ESG, which reflects social expectations. In conjunction with the revision, it issued an updated booklet and reconfirmed the establishment of compliance awareness. It is also addressing compliance risks by introducing an internal whistleblowing system as a self-cleansing mechanism.」

「The Group declares that it conducts its corporate activities in accordance with legal compliance and ethical standards, and is working to ensure throughout the Group that its directors and employees do not engage in conduct that deviates from applicable laws, ethical standards, the internal compliance code of conduct or other requirements in the course of conducting business.」

「However, if any such conduct were to occur and the Company faced a compliance issue, its operating results and financial condition could be materially affected by sanctions imposed by regulatory authorities, the filing of lawsuits, damage to its social standing and other consequences.」