Voluntary repayment of employment adjustment subsidies
KYODO PAPER HOLDINGS (the filing company)
There were cases in which employees worked beyond the scheduled hours of short-time leave stated in the applications due to a misunderstanding of the application requirements. The Company also cannot rule out the possibility that the applications included details that did not reflect the actual circumstances.
¥217 million (approximately; the full amount will be recorded as an extraordinary loss)
The first quarter of the fiscal year ending March 2027
Related procedures
Request from the Tokyo Labor Bureau to investigate the details of the subsidy applications
Tokyo Labor Bureau
Company response
An internal investigation was conducted. No third-party committee or special investigation committee, etc., was disclosed.
The Company will strengthen its operational checks.
The Company will promptly make the repayment upon receiving the decision notice from the Tokyo Labor Bureau. It takes this matter seriously and will strengthen its operational checks.
The Company will provide a further update once it receives formal notification from the Tokyo Labor Bureau.
| Item | Details |
|---|---|
| Event name | Voluntary repayment of employment adjustment subsidies |
| Date of occurrence | 26 June 2026 (the date on which the Board of Directors resolved to make the voluntary repayment) |
| Subject Entity | KYODO PAPER HOLDINGS (the filing company) |
| Cause | There were cases in which employees worked beyond the scheduled hours of short-time leave stated in the applications due to a misunderstanding of the application requirements. The Company also cannot rule out the possibility that the applications included details that did not reflect the actual circumstances. |
| Amount of Impact on Business Performance | ¥217 million (approximately; the full amount will be recorded as an extraordinary loss) |
| Accounting period in which recognized | The first quarter of the fiscal year ending March 2027 |
| Type of litigation or proceeding | Request from the Tokyo Labor Bureau to investigate the details of the subsidy applications |
| Court or authority | Tokyo Labor Bureau |
| Investigation structure | An internal investigation was conducted. No third-party committee or special investigation committee, etc., was disclosed. |
| Measures to prevent recurrence | The Company will strengthen its operational checks. |
| Outlook | The Company will promptly make the repayment upon receiving the decision notice from the Tokyo Labor Bureau. It takes this matter seriously and will strengthen its operational checks. |
| Planned follow-up disclosure | The Company will provide a further update once it receives formal notification from the Tokyo Labor Bureau. |
Items this document does not state (13)
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 was asked by the Tokyo Labor Bureau to investigate the details of its subsidy applications. As a result of its internal investigation, it confirmed some cases in which employees worked beyond the scheduled hours of short-time leave due to a misunderstanding of the application requirements. In addition, the Company cannot rule out the possibility that the applications included details that did not reflect the actual circumstances, beyond the amounts clearly identified as inappropriate.