Information of lawsuit against our overseas subsidiary

This is to notify that a civil lawsuit filed by Attorney General of the Federative Republic of Brazil against multiple codefendants including our subsidiary Projeto de Plantas Industriais Ltda (“PPI”) has been accepted by a Brazilian court.

1. Causes and circumstances of the lawsuit
PPI formed a consortium with Construtora Norberto Odebrecht S.A. (“Odebrecht”) and UTC Engenharia S.A. (“UTC”) to construct utility facilities for Comperj Petrochemical Complex in Rio de Janeiro under a contract awarded by the Brazilian state-owned energy company Petroleo Brasileiro S.A. (“Petrobras”) in 2011.
Attorney General of the Federative Republic of Brazil demands payment of approx. 11,098 million Brazilian Real as damages and penalty for administrative improbity jointly against 20 codefendants of companies and individuals related to 19 projects of Petrobras, all of which Odebrecht was involved in.

2. Court and date of service
(１) The lawsuit was filed with the 11th Federal Court of Curtiba Ward, the State of Parana, Brazil.
(２) The service to PPI of the acceptance of the lawsuit by the Court was on September 14, 2018.

3. Plaintiff: Attorney General of the Federative Republic of Brazil

4. Outline of lawsuit and amount sought
(１) Outline: Claim for payment of damages and penalty for administrative improbity against 20 codefendants including Odebrecht related to 19 projects of Petrobras
(２) Amount claimed: approx.. 11,098 million BRL jointly by 20 codefendants

5. Future prospects
PPI understands it has never been investigated by authorities, and no evidence of its wrongdoing is presented in the complaint. PPI is going to promptly file an appeal against the acceptance of the lawsuit.
It is difficult to assess monetary impact of this lawsuit at this point in　time,　and　if　there　arises　anything　to be disclosed about　situation　of　the　lawsuit or impact　on　our　performance, we will notify accordingly.