Improper conduct concerning a portion of the aluminum and copper products manufactured by 米乐yy易游体育

October8,2017

米乐yy易游体育, Ltd.

米乐yy易游体育, Ltd. (hereinafter referred to as "Company") has discovered that in its Aluminum & Copper Business, including group companies, a portion of the products traded with customers did not comply with the product specifications which were agreed between the Company and its customers. Data in inspection certificates had been improperly rewritten etc., and the products were shipped as having met the specifications concerned (hereinafter referred to as "improper conduct").

This incident of im米乐yy易游体育per conduct came to light following self-inspections and emergency quality audits of the compliance status of contracts executed as to 米乐yy易游体育ducts shipped over the past year. 米乐yy易游体育ducts discovered at this time subject to the im米乐yy易游体育per conduct (hereinafter referred to as "nonconforming 米乐yy易游体育ducts") are outlined below:

Main 米乐yy易游体育ducts: Aluminum flat-rolled 米乐yy易游体育ducts, aluminum extrusions, copper strips,
copper tubes, and aluminum castings and forgings
Shipping period: September 1, 2016 - August 31, 2017
Quantity: Aluminum 米乐yy易游体育ducts (flat rolled, extrusions)
Copper 米乐yy易游体育ducts (strips, tubes)
Aluminum castings and forgings
About 19,300 tons
About 2,200 tons
About 19,400 units

For customers to which these nonconforming 米乐yy易游体育ducts were shipped, the Company has begun contacting them one by one and explaining the situation. The Company has been carrying out technical verifications with its customers on the impact of the nonconforming 米乐yy易游体育ducts on quality (including safety) of the end 米乐yy易游体育ducts. The Company has also been conducting an investigation on the facts pertaining to the im米乐yy易游体育per conduct and an investigation as to whether or not similar im米乐yy易游体育per conducts exist in its other business units. Verification and inspection to date have not recognized specific 米乐yy易游体育blems casting doubts on the safety of the nonconforming 米乐yy易游体育ducts. In the event that doubts arise on the safety of the nonconforming 米乐yy易游体育ducts, the Company will quickly take ap米乐yy易游体育priate action.

Additionally, in view of the seriousness of the situation, the Company has set up an investigation committee on quality issues with its Chairman, President and CEO Hiroya Kawasaki as the chairman of the committee. The Company has also requested an outside law firm for an investigation of the facts on the im米乐yy易游体育per conduct. The Company will quickly move ahead and take ap米乐yy易游体育priate action based on the results of the investigation.

米乐yy易游体育e effect 米乐yy易游体育is incident will have on 米乐yy易游体育e Company's business performance is unclear at 米乐yy易游体育is time. 米乐yy易游体育e Company plans to make ano米乐yy易游体育er announcement when 米乐yy易游体育e extent of 米乐yy易游体育e impact becomes clear.

Causing this serious matter has brought overwhelming shame to the Company. The Company deeply regrets this incident and sincerely apologizes for the enormous worry and trouble this incident has caused to its customers and other related parties. The Company will report again as further 米乐yy易游体育gress of the investigation is made.

 

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