Receipt of Cease and Desist Orders from the Japan Fair Trade Commission and Filing of Lawsuit for Revocation

Dentsu Group Inc. (hereinafter “the Company”) was investigated by authorities on November 25, 2022, regarding suspected violations of the Antimonopoly Act in connection with the Tokyo 2020 Olympic and Paralympic Games. Since then, the Company has fully cooperated with the investigation and related inquiries.

Today, the Company received a surcharge payment order under the Antimonopoly Act from the Japan Fair Trade Commission (JFTC). Additionally, our subsidiary, Dentsu Inc., received both a cease and desist order and a surcharge payment order under the same Act.

Although the Company and Dentsu Inc. worked toward the success of the Games, we acknowledge the legal violations in relation to the planning and related operations for the test events, and have taken this matter seriously. The both companies has reflected deeply and implemented measures to prevent recurrence, including efforts to evolve its organizational culture to prioritize integrity.

However, the JFTC’s orders also identify violations in the implementation and related operations of the test events, and the management and operation of the main event, which significantly differ from our understanding of the facts. These discrepancies cannot be overlooked.

Therefore, the Company decided to file a lawsuit today to seek revocation of the administrative orders and to sincerely present our position in court, aiming for a fair judicial determination.

The Company expects that the impact of this matter on its consolidated financial result forecast for the current fiscal year will be minimal.

Outline of the Cease and Desist Order

1. Subject

Dentsu Inc.

2. Summary of the Order

Eight companies, including the Company and Dentsu Inc., were found to have engaged in agreements to determine prospective contractors for the planning and execution of test events and the operation of the Tokyo 2020 Olympic and Paralympic Games. These actions constitute unreasonable restraint of trade prohibited under the Antimonopoly Act. The JFTC has ordered the companies to take necessary measures to prevent recurrence of similar conduct.

Outline of the Surcharge Payment

Subject	Amount of surcharge payment	Payment due date
Dentsu Group Inc.	495.56 million yen	January 26, 2026
Dentsu Inc.	425.15 million yen	January 26, 2026

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Contact:
Jumpei Kojima
Group Corporate Communications Office
Dentsu Group Inc.
Email:group-cc@dentsu.com