Country and contract-performance risks associated with international expansion

「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」

「Our overseas subsidiaries are seeking to secure orders by increasing bidding opportunities through expanding beyond their previous focus on projects for Japanese-owned factories, pursuing self-developed hotel projects in cooperation with the Asset Value-Added Business Division, enhancing price competitiveness by localizing their operating structures, and expanding into projects for local and foreign-owned companies.」

「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.」

「During the first nine months of the current consolidated fiscal year, there were no new occurrences of major risks that management recognizes as potentially having a material impact on the financial condition, operating results or cash flows of the consolidated companies, and no significant changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「There were no new occurrences of the major risks that management recognizes as potentially having a material impact on the consolidated companies' financial position, operating results or cash flows, and no material changes to the risks described under "Business and Other Risks" in the annual securities report for the previous fiscal year, among the matters concerning the business and accounting conditions described in this quarterly report during the cumulative second quarter.」

「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.」

「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.」

「As measures to address these risks, we will expand the market for our overseas civil-engineering business into new countries and increase bidding opportunities. We will also enhance the price competitiveness of our overseas subsidiaries and seek to secure orders by increasing bidding opportunities through pursuing projects for foreign-owned and local companies, in addition to our previous focus on projects for Japanese-owned factories.」

「During the first nine months of the current consolidated fiscal year, there were no new occurrences of major risks that management recognizes as potentially having a material impact on the financial condition, operating results or cash flows of the consolidated companies, and no significant changes to the "Business and Other Risks" described in the annual 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 first quarter of the current consolidated cumulative period, there were no significant changes in the occurrence of major risks that management recognizes as potentially having a material impact on the consolidated companies’ financial position, operating results or cash flows, or in the “Business Risks” described in the annual securities report for the previous fiscal year.」

「We recognize that the likelihood of these risks materializing is being kept at a certain level in the countries where we currently operate. However, we also recognize that these are material risks that could develop into major problems if they were to materialize.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「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 could materially affect investors’ decisions, 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 could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「As we operate in various countries, mainly in Southeast Asia, the occurrence of terrorism, changes in political or economic conditions, or changes in legal systems in those countries could affect our operating results and other matters. In overseas construction projects, the original construction schedule may also be extended because of design changes, additional construction work or other factors, and the outcome of negotiations with the client could affect our operating results and other matters.」

「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 could materially affect investors’ decisions, 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 could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「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 could materially affect investors’ decisions, 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 could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「As we operate in various countries, mainly in Southeast Asia, the occurrence of terrorism, changes in political or economic conditions, or changes in legal systems in those countries could affect our operating results and other matters. In overseas construction projects, the original construction schedule may also be extended because of design changes, additional construction work or other factors, and the outcome of negotiations with the client could affect our operating results and other matters.」