Costs and Valuation Damage Due to Liability for Defects, etc.

「As a measure, the Quality Management Committee under the Risk Management Committee is promoting centralized quality management as the organization overseeing five working groups covering products, design, production, construction and customer service. In particular, to prevent construction quality defects, the Group is working to improve the key quality management items set out in the annual construction quality management plan formulated at the beginning of each fiscal year. The status of this management is reported regularly to the Risk Management Committee.」

「The Group provides long-term warranties and regular inspection services for its principal detached and multi-unit housing. However, if a serious quality issue arises during the long-term support period due to an unforeseen human error or other cause, the Group could incur substantial costs and suffer significant damage to its reputation, affecting its performance.」

「Although the Group takes every possible measure to ensure quality, if liability for defects or other matters beyond anticipated levels arises, it could incur substantial costs and suffer significant damage to its reputation, affecting the Group's performance.」