NYK Cautions of Illegal Conducts in Chinese Subsidiary

By Aiswarya Lakshmi February 13, 2018

Nippon Yusen Kabushiki Kaisha (NYK) said that it has discovered that there is a possibility that former locally hired management personnel in NYK Car Carrier (China), its consolidated subsidiary located in Shanghai.

The China unit is engaged in finished car logistics business in China, had committed unlawful expenditure or embezzlement.

The Company established an investigation committee (the Committee ) to investigat the aforementioned matter on February 5, 2018 (with Tadaaki Naito President Representative Director and President Corporate Officer as the Chairman of the Committee; Yoshiyuki Yoshida Director, Chief Compliance Officer and Managing Corporate Officer), Yutaka Higurashi Corporate Officer) and Yuichi Sakata (Attorney at Abe & Sakata Legal Professional Corporation) as the members of the Committee).

"We deeply apologize for all the inconvenience caused to our shareholders, investors and all other stakeholders," said a company statement.

It is currently estimated that the overall influence of this matter to the final loss and profit of the Consolidated Financial Results of the Company will be approximately JPY 2 billion in loss.

Once the influence of this matter to the Consolidated Financial Results for Fiscal Year 2017 (including the Fiscal Highlights for the Nine Months Ended December 31, 2017 announced on January 31, 2018) and these over the past fiscal years have been identified he Company will promptly announce the details.

Furthermore, while the investigation is still ongoing, the Company is currently considering filing an application for extension of the filing deadline of the uarterly ecurities eport for the ine onths nded December 31, 2017, the original filing deadline of which is February 14, 2018. The Company will promptly announce if it determines to file such application.