Global Violations of Laws and Regulations and Loss of Confidence

「The additional investigation completed the special investigation committee's investigation. However, the Group takes seriously the repeated identification of compliance incidents and the reports from the special investigation committees on both matters. Based also on the proposed measures to prevent recurrence and the recommendations of the special investigation committees, under the leadership of the Special Compliance Promotion Committee chaired by the president, the Group is proactively addressing issues in its organisational culture and governance across the Group, with a firm determination to identify and resolve all underlying problems, and is thoroughly implementing highly effective measures to prevent recurrence.」

「With respect to misconduct in the Group's submarine repair and marine engine businesses, the Group established a Special Compliance Promotion Committee chaired by the president and separate special investigation committees composed of outside experts. It received interim reports from the respective special investigation committees in December last year and January this year on investigations into the facts and analyses of the causes of the individual incidents, and disclosed their contents. The special investigation committees' investigations are continuing. The Group will continue working to rebuild its compliance and governance framework and reform its corporate culture.」

「With respect to the improper incidents at the Group's submarine repair workplaces and inspection misconduct involving marine engines, the Group established a Special Compliance Promotion Committee chaired by the president and separate special investigation committees composed of outside experts. In addition to investigating the facts and analysing the causes of each incident, the Group is working to rebuild its compliance and governance framework across the Group and reform its corporate culture.」

「The company received notice from the U.S. Consumer Product Safety Commission that it intended to impose a civil penalty in connection with a recall involving certain models of four-wheel vehicles for the U.S. market.」

「In June 2022, improper conduct was identified in connection with inspections and other matters involving certain products manufactured and sold by Kawasaki Thermal Engineering Co., Ltd. To prevent any recurrence, the company is implementing corrective measures based on a thorough investigation of the causes by a special investigation committee composed of external attorneys, further strengthening compliance and working to prevent recurrence.」

「October has also been designated as "Compliance Month," and we are working across our Group to raise awareness of compliance through messages from senior management and articles in the Group newsletter.」

「In the event of a serious violation of laws or regulations, losses may arise from substantial fines and penalties, as well as lost order opportunities due to business suspension orders. The resulting decline in social standing may also affect our Group's performance.」