TS TECH: U.S. inventory probe delays interim results

After finding a gap between book and physical inventory at its Americas subsidiary, TS TECH set up an internal investigation committee to review whether the inventory had been properly recorded and valued.

• Trigger: TS TECH received information at its Americas regional headquarters and interviewed relevant people and reviewed documents
• Discrepancy found: A review following the physical inventory at the end of September 2026 found a difference between book and physical inventory balances
• Issues under review: Whether discarded materials or inventory with no expected use continued to be recorded, and whether valuation adjustments were properly made
• Scope: The facts, timing, extent of any impact, whether similar cases occurred, causes and necessary responses

TS TECH had been checking the matter with its auditor but has not yet established the facts or the effect on its financial statements. The issues remain under investigation, and improper accounting has not been confirmed.

To ensure the investigation is objective and technically rigorous, TS TECH appointed an outside director, an external lawyer and a certified public accountant to the committee.

• Chair: Hajime Hayashi, lawyer, outside director and audit and supervisory committee member, independent officer
• Member: Kenichi Naito, outside director and audit and supervisory committee member, independent officer
• Member: Yasushi Kudo, lawyer and partner at Nagashima Ohno & Tsunematsu
• Member: Yasunori Sato, certified public accountant at Deloitte Tohmatsu LLC

In addition to establishing the facts of the matter, the committee will examine whether similar cases occurred and assess the impact on interim consolidated financial statements. TS TECH plans to promptly disclose the findings after receiving the committee's report.

TS TECH is postponing its interim results for the fiscal year ending March 2027 because it needs more time to finalize its interim consolidated financial statements in light of the investigation and discussions with its auditor.

• Reason for delay: The committee's review and confirmation and discussions with the auditor are needed
• New timing: To be determined based on the progress of the investigation and announced promptly
• Earnings impact: The effect on results for the fiscal year ending March 2027 is under investigation; TS TECH will disclose any impact

The delay pushes back when investors can assess TS TECH's interim earnings and financial position. The potential amount and period of any impact, as well as whether similar cases occurred, are not yet known. The investigation's findings and proposed responses will be key in the next phase.