Notice regarding our response to the results of an investigation into inappropriate conduct in product testing by our subsidiary

TOA Oil Co., Ltd. Refinery (hereinafter referred to as Toa Oil), Refinery of our company, and SHOWA YOKKAICHI SEKIYU CO., LTD. (hereinafter referred to as Showa Yokkaichi Sekiyu) of Showa Yokkaichi Sekiyu Co., Ltd. (hereinafter referred to as Showa Yokkaichi Sekiyu) 1 Shiohama-cho, Yokkaichi City, Mie Prefecture) announced in May of this year, we would like to once again deeply apologize for the inappropriate conduct related to product testing that has led to a situation where the trust of our customers and stakeholders has been damaged.
Regarding each incident, Toa Oil and Showa Yokkaichi Sekiyu each formed a special investigation committee consisting of outside experts and independent outside directors and commissioned an investigation. Regarding the response, we would like to inform you as follows.

Record

1. Regarding the publication of the investigation report

From the perspective of protecting personal and confidential information, the investigation report has been made public on the websites of Toa Oil and Showa Yokkaichi Sekiyu, with partial non-disclosure measures in place. For details, please check each company's disclosure document.

Toa Oil Disclosure Document (September 22, 2022)
"Results of investigation regarding inappropriate conduct in product testing at our company and future actions"
https://www.toaoil.co.jp/investor/pdf/20220922chosakekkapress.pdf

Showa Yokkaichi Oil Disclosure Document (September 22, 2022)
"Results of investigation into inappropriate conduct in product testing at our company and future actions" (in the "News" page)
https://syskk.co.jp/topics_list.php

2. Our response in response to the investigation results

Based on the findings of the Special Investigation Committee, we will consider and implement the following improvement measures.

(1) Measures to strengthen quality control at our group Refinery

①Improvement of test analysis and quality control technology

• a. We provide technical education to improve examiners' testing skills and knowledge.
• A. We will re-educate quality control managers and quality control Manager on the concept of quality assurance and improve quality control management functions.

② Support for reducing work load

• a. We support optimization of testing man-hours.
• stomach. We support investment in test equipment and automatic transfer of test results.

③Improving quality audits
Regarding the requirements of the Quality Assurance Act, JIS, and ISO, we confirm compliance with laws and external certification bodies' requirements through audits that include actual quality records and on-site witness tests.

(2) Disposition of persons involved

After carefully examining the contents of the investigation report, we will take strict action in accordance with our internal regulations.

3. Impact on our consolidated performance

The impact of this matter on consolidated results will be minor.
We will promptly notify you if it is determined that there will be a significant impact on future business results.

We take seriously the occurrence of inappropriate acts at Toa Oil and Showa Yokkaichi Sekiyu, and we are making every effort to thoroughly implement measures to prevent the recurrence of inappropriate acts and strengthen the quality control system at all group Refinery. We will continue to work hard to regain trust.