Risk of changes to or violations of laws and regulations

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「To ensure fair and transparent business operations under consistent Group-wide policies and strengthen compliance, the company has established a Compliance Promotion Committee and appointed compliance officers and personnel in each division and major Group company. Under the direction of the Head Office Audit Department, it is working to implement various promotional activities effectively.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「In connection with a fatal accident caused by the collapse of scaffolding at the company's construction site in Fukuoka, Fukuoka Prefecture, in October 2017, the company received an order suspending its business operations from the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism in July 2019.」

「In connection with a fatal accident caused by the collapse of scaffolding at the company's construction site in Fukuoka, Fukuoka Prefecture, in October 2017, 1 company employee received a summary order for professional negligence resulting in death, and the sentence became final. As a result, on 2 July 2019, the company received an order suspending its business operations from the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism pursuant to Article 28, Paragraph 3 of the Construction Business Act.」

「The Group is subject to the Companies Act, Financial Instruments and Exchange Act, Antimonopoly Act, Construction Business Act, Building Standards Act, Act on Specified Joint Real Estate Ventures and other laws. Although it promotes thorough compliance among officers and employees and manages legal and regulatory risks, if laws or regulations are amended, abolished or newly enacted, or if violations occur and materially constrain the Group's business activities, this could affect its operating results and other matters.」

「Regarding the fire that occurred in July 2018 at a building under construction in Tama City, Tokyo, documents concerning 3 company employees, as suspects in a case involving professional negligence resulting in death or injury and professional negligence causing a fire, were referred by the Metropolitan Police Department to the Tokyo District Public Prosecutors Office on 21 December 2018.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In connection with a decontamination project ordered by Tamura City, Fukushima Prefecture, 2 former employees of the company received criminal penalties for fraud. As a result, on 2 July 2018, the company was ordered by the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism to suspend its construction business for 60 days, from 17 July 2018 through 14 September 2018, pursuant to Article 28, paragraph 3 of the Construction Business Act.」

「In September 2017, 2 former employees of the company were indicted by the Tokyo District Public Prosecutors Office on suspicion of fraud, and in March 2018 they received criminal penalties. Although no company involvement was found, the company takes the matter seriously and is working as a unified Group to prevent recurrence, including by holding briefing sessions for all Group officers and employees and reviewing its operational execution processes.」

「During the third quarter of the current consolidated cumulative period, no new Business and Other Risks arose. There were also no material changes to the Business and Other Risks described in the Annual Securities Report for the previous fiscal year.」

「On 28 September 2017, an employee of the company was indicted by the Tokyo District Public Prosecutors Office on suspicion of fraud in connection with a decontamination project. The company takes this matter seriously and is making every effort to prevent recurrence, including by ensuring thorough compliance with laws and regulations.」

「During the first quarter of the current consolidated cumulative period, no new Business and Other Risks arose. There were also no material changes to the Business and Other Risks described in the Annual Securities Report for the previous fiscal year.」

「The Group is subject to the Companies Act, Financial Instruments and Exchange Act, Antimonopoly Act, Construction Business Act, Building Standards Act, Act on Specified Joint Real Estate Ventures and other laws. Although it promotes thorough compliance among officers and employees and manages legal and regulatory risks, if laws or regulations are amended, abolished or newly enacted, or if violations occur and materially constrain the Group's business activities, this could affect its operating results and other matters.」