On February 28, 2023, Hakuhodo DY Holdings domestic subsidiary Hakuhodo Inc. and an employee of Hakuhodo DY Media Partners Inc. were indicted by the Tokyo District Public Prosecutors Office following an accusation by the Fair Trade Commission of alleged violation of the Antimonopoly Act (unreasonable restraint of trade) in connection with the outsourcing contracts, etc., for the planning, etc., of test events for the Tokyo 2020 Olympic and Paralympic Games.

Recognizing the gravity of this incident, and in order to take preventive measures and ensure compliance, our Group established a Special Investigation Committee on March 7, 2023, chaired by one of our independent outside directors, to consider how to prevent the recurrence of such wrongdoing.

The Special Investigation Committee submitted its report today to our Board of Directors, and we have decided to publish its key recommendations.

The Hakuhodo DY Group is committed to seriously reviewing the recommendations put forward by the Special Investigation Committee, taking actions to prevent recurrence, and continuing efforts toward ensuring compliance, and enhancing and strengthening governance. In light of the gravity of the incident, the President & CEO of Hakuhodo Inc., the President & CEO of Hakuhodo DY Media Partners Inc., and related officers serving in the period covered by the written indictment have voluntarily returned part of their respective compensations.

We sincerely apologize to our clients, business partners and all other stakeholders for the great inconvenience and concern caused.

Attachment: Key Recommendations in the Investigative Report Submitted by the Special Investigation Committee