Translation

6 October 2023
For Immediate Release
To whom it may concern

Notice of receipt of Internal Investigation Committee investigation report and our response
As stated in the "Announcement of the postponement of the announcement of financial
results and the establishment of an internal investigation committee" dated 4 August 2023
and the "Inappropriate transaction and its impact on the company's results" dated 14 August
2023, we have been investigating an inappropriate transaction (hereinafter referred to as
the "Transaction") by one of its employees (hereinafter referred to as the "Employee"). Theinternal investigation committee has been working to confirm the facts relating to theTransaction, investigate similar cases, determine the impact on financial figures andcorrective measures, analyse the causes of the Trans action and consider measures toprevent a recurrence.
The results of each of these points, including the confirmation of the facts relating to thetransaction, the inv estigation of similar cases, the impact on the financial figures and thecorrective action taken, are described in the section "Inappropriate transaction and its
impact on the company's results" in the attached “Investigation Report on inappropriatetransactions”.
The investigation into the analysis of the causes of the transaction and measures toprevent a recurrence has now also been completed and the investigation report was received
today from the internal inves tigation committee. In addition, following receipt of theinvestigation report, we have decided on the following actions to be taken.
1. Report of the internal investigation committee
The transactions in question involv ed the employ ee in question using our subcontracting
system to place inappropriate orders, which sent funds directly to the company he effectivelyruns (hereinafter referred to as the 'Subject Company' ), as well as s ent funds back to the
Subject Company via a company close to him. T he details of this are desc ribedin theattached “Investigation report on inappropriate transactions”.
2. Our response(1) Measures for the person concerned
It has been decided that the employee concerned, who carried out the transaction inquestion, will be dismissed on disciplinary grounds. We intend to file a claim for damages
against the employee in question. The company is also consulting with the judicial
authorities on this matter.
Furthermore, in order to clarify management responsibility, the Board of Directors
resolved to make the following recommendations

Mr. Tetsumi Nakamura, Representative Director and President, CEO(subject to measures: Repres entative Director and P resident, CEO)
30% claw back in director's remuneration for two months
Mr. Hiroshi Kiuchi, Director and Senior Managing Executive Officer(subject to measures: Head of Business Office)20% claw back in director's remuneration for two months
Mr. Naoto Suzuki, Director and Managing E xecutive Officer(subject to measures: Chief, Administration Headquarters)
10% claw back in director's remuneration for two months(2) Measures to prevent recurrence
The Internal Investigation Committee has recommended thorough compliance training,
strengthening of the actual status of business partners, strengthening of the effectivenessof inspections and acceptance checks, strengthening of the effectiveness of internal
controls and other measures to prevent recurrence. We will promptly take concretemeasures to improve our system.
【Attachment: “Investigation Report on inappropriate transactions”】
Translated version to be provided at our HP ( https://www.ctie.co.jp/english/ )