(Update) Notice on Investigation Results by the Investigation Committee and Future Measures

 Following the arrest of two of our employees on suspicion of bribery on January 27, 2021 by the Tsu District Public Prosecutors Office, the Company established an Investigation Committee consisting of three outside lawyers in February 2021, which has been working to investigate the facts and ascertain the cause. We announce that we received an “Outside Investigation Committee Report regarding Issues on Scholarship Donation to Mie University Hospital (Investigation Report)” from the Investigation Committee today.
 Taking the investigation results seriously, we also announce that we have decided on future measures and disposition of the related persons based on the investigation results.
 We deeply apologize once again for the inconvenience and concern caused to all stakeholders, including shareholders and all others with relations to the Company. The Company will work together to thoroughly implement measures to prevent recurrence so that the same situation will not occur again in the future.

  1. Investigation results by the Investigation Committee

     For the investigation results by the Investigation Committee, please refer to the attached Outside Investigation Committee Report (in Japanese).
     This Investigation Report has been compiled by the committee members after discussions based on their own investigation, and is published as it is with respect for their intentions.
     The Investigation Report is edited in an anonymous or difficult-to-identify form with parts of the Investigation Report, for purpose of protecting personal information and privacy of the concerned persons.

  2. Future measures

     Based on the investigation results by the Investigation Committee, we will take the following measures:

    2.1 Enhancement of compliance
    1) Strengthening of the supervision system by outside directors.
    2) Establishment of a new compliance officer in each division and enhancement of company-wide compliance
    3) Allocation of compliance special mission person in charge of Sales and Marketing in Sales and Marketing Division
    4) Expansion of Compliance Division and allocation of compliance manager to the field divisions
    5) Enhancement and strengthening of compliance training

    2.2 Review of scholarship donations, etc.
    1) Scholarship donations
     We will cancel the scholarship donations for FY2021. From FY2022 onward, we will consider different research grant methods, considering the social significance of scholarship donations and the necessity of contributing to academia.
    2) Donations to academic societies, general donations, etc.
     We will continue them in consideration of social significance. In implementing the donation, we will assign the general affairs department to take on the function of selecting the donation party, etc., eliminate interference from inside and outside the Company, manage the donation operations with higher fairness and independence based on objective standards, strengthen audits by internal audits, and strive to ensure reliability.

  3. Disposition of the related persons

     Based on the investigation results by the Investigation Committee, the Company decided the details of disposition in the meeting for Officers Personnel Case and the Disciplinary Committee as follows. In addition, the Board of Directors approved the request from the Representative Director to partially return the executive compensation.

    3.1 Disposition of Directors
    President, Representative Director:
    Voluntary return of 30% of monthly compensation for 3 months
    Senior Executive Officer Concerned:
    Demote to Executive Officer

    3.2 Disposition to the related persons
    Strictly disposed, based on the internal rules