Formulation of measures to prevent recurrence
OTＡKE CORPORATION
Certain transactions (transactions involving multiple intermediaries in which competitors were involved, and transactions in which the Company sold to competitors)
(1) Concerns over declining profits amid excessive competition, (2) corporate culture, (3) the lack of rules governing contact and transactions with competitors, (4) career histories concentrated in particular departments and a lack of cross-organizational perspective, (5) the loss of substance in the supervisory functions of internal directors, including full-time Audit and Supervisory Committee members, (6) insufficient training and knowledge regarding accounting and the Antimonopoly Act, (7) a weak awareness of compliance, and (8) the downplaying of the internal whistleblowing system
Related procedures
Investigation by the Special Investigation Committee
Tokyo Stock Exchange and Japanese Institute of Certified Public Accountants
Company response
A Special Investigation Committee consisting of external experts and the Company's outside directors who are Audit and Supervisory Committee members was established
(1) Issuance of a clear message from top management, (2) eliminating the corporate culture that permits contact with competitors, (3) establishing and implementing internal rules concerning contact with competitors, (4) implementing appropriate job rotations, (5) making the Board of Directors' supervisory functions effective, (6) conducting training on accounting and the Antimonopoly Act, (7) conducting effective internal audits, (8) conducting effective compliance training and appointing personnel responsible for compliance, and (9) making the internal whistleblowing system effective
The Company will make every effort to restore trust by steadily implementing the measures to prevent recurrence and operating the Company with compliance at the core of its management.
| Item | Details |
|---|---|
| Event name | Formulation of measures to prevent recurrence |
| Date of occurrence | 19 October 2026 (the date on which the formulation of measures to prevent recurrence was decided) |
| Date recognized / date notice received | 4 September 2026 (the date on which the investigation report from the Special Investigation Committee was received) |
| Subject Entity | OTＡKE CORPORATION |
| Target Locations / Products | Certain transactions (transactions involving multiple intermediaries in which competitors were involved, and transactions in which the Company sold to competitors) |
| Cause | (1) Concerns over declining profits amid excessive competition, (2) corporate culture, (3) the lack of rules governing contact and transactions with competitors, (4) career histories concentrated in particular departments and a lack of cross-organizational perspective, (5) the loss of substance in the supervisory functions of internal directors, including full-time Audit and Supervisory Committee members, (6) insufficient training and knowledge regarding accounting and the Antimonopoly Act, (7) a weak awareness of compliance, and (8) the downplaying of the internal whistleblowing system |
| Type of litigation or proceeding | Investigation by the Special Investigation Committee |
| Court or authority | Tokyo Stock Exchange and Japanese Institute of Certified Public Accountants |
| Investigation structure | A Special Investigation Committee consisting of external experts and the Company's outside directors who are Audit and Supervisory Committee members was established |
| Measures to prevent recurrence | (1) Issuance of a clear message from top management, (2) eliminating the corporate culture that permits contact with competitors, (3) establishing and implementing internal rules concerning contact with competitors, (4) implementing appropriate job rotations, (5) making the Board of Directors' supervisory functions effective, (6) conducting training on accounting and the Antimonopoly Act, (7) conducting effective internal audits, (8) conducting effective compliance training and appointing personnel responsible for compliance, and (9) making the internal whistleblowing system effective |
| Outlook | The Company will make every effort to restore trust by steadily implementing the measures to prevent recurrence and operating the Company with compliance at the core of its management. |
Items this document does not state (14)
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 Special Investigation Committee's investigation indicated that certain transactions were highly likely to constitute unfair trade restrictions under the Antimonopoly Act and identified issues with accounting treatment. The Company also cited concerns over declining profits amid excessive competition, its corporate culture, the lack of internal rules, the loss of substance in supervisory functions, insufficient training and knowledge, and the downplaying of the internal whistleblowing system as underlying factors.