Risk of Failure to Recover Investments in Advanced Technologies Such as AI and Sensing

「In order to transform its existing business structure and enhance corporate value over the medium to long term, the group is actively working to develop new solutions incorporating advanced technologies such as AI and sensing, and to create new businesses that will form the foundation for future earnings. Launching these initiatives will require substantial upfront investment and the continued allocation of management resources, including the development of new systems and the training of highly skilled engineers. However, in these unexplored business areas, technological innovation is progressing extremely rapidly, and the development of market needs is subject to considerable uncertainty. Consequently, if the expected market fails to develop or the group is unable to secure an advantage over competitors, efforts to create new businesses may fail to progress as planned, resulting in an inability to fully recover the funds and management resources invested and potentially adversely affecting the group's operating performance and financial condition.」