TSE News

Public Announcement Measure and Request for Improvement Report -Sumitomo Osaka Cement Co.,Ltd.-

Update : Feb. 14, 2012

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[Tokyo Stock Exchange, Inc.]

TSE has taken the Public Announcement Measure and requested an Improvement Report as follows.

1. Company Name Sumitomo Osaka Cement Co.,Ltd. stock
(Code: 5232, Market Division: 1st Section)
2.Date of Public Announcement Measure Feb. 10, 2012 (Fri.)
Provision Securities Listing Regulations, Rule 508, Paragraph 1, Item 1
(Due to a public announcement being deemed necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
3.Improvement Report Submission Deadline Feb. 27, 2012 (Mon.)
Provision Securities Listing Regulations, Rule 502, Paragraph 1, Item 1
(Due to improvements being deemed highly necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
4.Reason Sumitomo Osaka Cement Co.,Ltd. (hereafter "the Company") today disclosed amendments to the past earnings reports and was found to have disclosed the settlement of accounts that requires material amendments.
According to them, a group leader and a few employees in the high function film business group of the new material department of the Company included excessive accumulated consolidated operating profits of JPY 1,481 million in the accounting book for the period between the 1st quarter of fiscal year ended March 2010 and the 2nd quarter of fiscal year ending March 2012 in such a manner as including excessive stock by falsifying figures in cost calculation for the purpose of continuing such business that had a possibility of withdrawal due to continuously posting losses in the past.
In addition to conspiracy within such group and lack of compliance with in-house rules, checking functions had become form-only, including failure in daily verification with basic documents. Furthermore, it is deemed that the director and other staff in such department failed in management and oversight on inappropriate account processing
Based on the above, this case is in violation of the matters to be observed for timely disclosure and has considerable impact on investment decisions, and is deemed to require public announcement. Therefore the public announcement measure is implemented.
Moreover, this is a case of inappropriate disclosure with root in deficiency in the rules and systems for timely disclosure at the Company, and high necessity of improvements to timely disclosure rules and systems is required for the Company. Therefore TSE requested the Company to submit a report including the background and improvement measures.

DISCLAIMER: This translation may be used only for reference purposes. This English version is not an official translation of the original Japanese document. In cases where any differences occur between the English version and the original Japanese version, the Japanese version shall prevail. Tokyo Stock Exchange, Inc., Tokyo Stock Exchange Group, Inc., and/or Tokyo Stock Exchange Regulation shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, or misunderstanding with regard to this translation.

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