Publication of the Special Investigation Committee’s Report (Public Version) and Formulation of Recurrence Prevention Measures

Key Points

The public version of the Special Investigation Committee's investigation has been released and recurrence prevention measures were approved. Measures include clarifying attribution of employee inventions and appropriateness of related-party transactions, strengthening the function of the Board Secretariat, enhancing checks by the Board of Corporate Auditors, and implementing education and training. Regarding a series of transactions involving Mr. Ishida and others, the possibility that they could be judged as acts by fiduciary-breaching malicious parties cannot be excluded; future legal issues will be left to judicial proceedings. The submission date of the securities report and the disclosure date of the financial summary, which had been postponed, will be decided going forward.

Future Impact and Response

As recurrence prevention measures, revisions to the employee invention regulations and thorough dissemination, strengthening of management systems for conflicts of interest and mixing of public and private affairs, reinforcement of external directors' checking functions, and promotion of compliance awareness will be implemented. For shareholder relations, appropriate information disclosure and additional disclosures at an appropriate time are anticipated. Attention will focus on the determination of the timing of future financial disclosures and whether corrections will be made.