Kyocera : Notice Relating to Results of Investigation into Inappropriate Acquisition of Certification from Third-Party Organization for Certain Chemical Product

	May 14, 2021
To All Persons Concerned
Name of Company Listed:	Kyocera Corporation
Name of Representative:	Hideo Tanimoto, President and Director
	(Code number: 6971, The First Section of the Tokyo Stock Exchange)
Person for Inquiry:	Hiroaki Chida
	General Manager of Corporate Management Control Group
	(Tel: [phone])

Notice Relating to Results of Investigation into Inappropriate Acquisition of Certification from

Third-Party Organization for Certain Chemical Products

As Kyocera Corporation ("Kyocera" or "the Company") disclosed on January 8, 2021, certain Kyocera chemical products were improperly identified as having received certification from Underwriters Laboratories ("UL"), a third-party safety science organization in the United States.

Kyocera conducted an investigation under the supervision of a special investigation committee (hereinafter "the committee"), which included a law firm, to identify the facts and cause of this issue. Kyocera received an investigation report from the committee and, in response to its contents, developed corrective and preventive measures for the future; the report results, corrective, and preventative measures are hereby disclosed in the attached.

We extend deep apologies to all who are concerned for the inconveniences it may bring, and we will make every effort to prevent a similar recurrence.

At this point in time, any impact on the Company's financials cannot be foreseen. However, any impact will be disclosed if there is an expectation that it will have a material effect on the financial performance of the Company.

[Appendices]

・Investigation Report (Published Edition)

・Corrective Action and Measures to Prevent Recurrence against Inappropriate Conduct regarding Kyocera's Chemical Products

Investigation Report

(Published Edition)

May 13, 2021 (Reiwa 3)

Special Investigation Committee for UL Issue

This English version of the Investigation Report is translated by Kyocera Corporation (hereinafter "Kyocera") from Japanese version which Kyocera received on May 13, 2021 (JST). Please note that the original language of the Investigation Report is Japanese and in case of any discrepancies between the Japanese and English, the Japanese version shall prevail.

To Kyocera Corporation

The Special Investigation Committee for UL Issue submits its

findings as follows.

May 13, 2021 (Reiwa 3)

Kyocera Corporation Special Investigation Committee for UL Issue

Chairman Katsumi Nakamura

Committee Member Manabu Adachi

Committee Member Hiroshi Osada

Table of Contents

Chapter 1 Outline of the investigation...............................................................................	1
I Background of the establishment of the Special Investigation Committee..................	1
II Purpose and scope of the investigation ........................................................................	1
III Composition and investigation system of the Committee............................................	1
1.	Committee Member..................................................................................................	1
2.	Investigation assistants .............................................................................................	2
3.	Secretariat.................................................................................................................	2
IV	Measures to ensure the independence of the Committee and the effectiveness of the
investigation.........................................................................................................................	2
V	Investigation method, etc. ............................................................................................	3
1.	Investigation period ..................................................................................................	3
2.	Committee meetings.................................................................................................	3
3.	Specific survey method .............................................................................................	3
VI	Non-ULissues ..........................................................................................................	5
VII	Limitations of the Investigation................................................................................	5
Chapter 2 Findings.............................................................................................................	6
I History and current status of chemical materials business...........................................	6
1.	History ......................................................................................................................	6
2.	Products related to the inappropriate conduct .........................................................	7
3.	Production bases.......................................................................................................	9
4.	Organization...........................................................................................................	11
II	The UL standards.......................................................................................................	11
1.	Overview of the UL standards ................................................................................	11
2.	The UL certifications obtained by the Chemical Materials Division......................	12
3.	FUS.........................................................................................................................	13
III Definitions and types of inappropriate conduct.........................................................	14
1.	Definitions..............................................................................................................	14
2.	Major types of inappropriate conduct.....................................................................	15
3.	Gray area judgment.................................................................................................	16
IV	Details of inappropriate conduct................................................................................	17
1.	Encapsulants ...........................................................................................................	17
2.	Resins......................................................................................................................	22
3.	Phenolic molding materials.....................................................................................	25
	1

4.	Premix molding materials.......................................................................................	29
5.	Insulating Varnish...................................................................................................	31
6.	Resin Board for Electric Products...........................................................................	35
7.	Laminated Plates.....................................................................................................	35
8.	Brief Summary........................................................................................................	36
V Involvement and recognition of successive executives...............................................	38
1.	Introduction............................................................................................................	38
2.	Objective facts.........................................................................................................	39
3.	Subjectivity (recognition) of senior management...................................................	41
4.	Brief Summary........................................................................................................	47
VI	Results of surveys on other divisions..........................................................................	47
1.	Summary of surveys on other divisions...................................................................	47
2.	Results of surveys on other divisions.......................................................................	48
VII	Results of the questionnaire survey............................................................................	49
1.	Outline of the survey...............................................................................................	49
2.	Collected results......................................................................................................	49
3.	Opinions and comments of the subjects.................................................................	54
Chapter 3 Causes of the inappropriate conduct...............................................................	56
I	Introduction................................................................................................................	56
II	Causal analysis............................................................................................................	58
1.	Lack of ethics and compliance awareness regarding quality assurance ..................	58
2.	Problems in dealing with technical issues...............................................................	58

3. Difficulty in radically solving problems that have been accumulated and become

serious ............................................................................................................................	60
4.	Problem with organizational climate (closed society and cover-up mentality) ......	61
5.	Underlying and indirect causes of the inappropriate conduct................................	62
6.	Malfunction of monitoring system for quality compliance and risk........................	63
7.	Problems with PMI.................................................................................................	64
8.	Problems with the internal reporting system..........................................................	65
9.	Sloppy data and document management................................................................	65
Chapter 4 Recommendations for prevention of reoccurrence..........................................	66
I	Introduction................................................................................................................	66
II	Reoccurrence prevention measures............................................................................	66

1. Fostering and reinforcing a sense of ethics and compliance awareness regarding

quality assurance ............................................................................................................	66
2. Addressing problems in dealing with technical issues ............................................	66
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