Risk of Deviation from サンエイテクニクス’ Business Plan and Goodwill Impairment

「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this interim report, or in 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 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 current consolidated fiscal year, the company determined that there was an indication of impairment at 株式会社サンエイテクニクス because its results deviated from the business plan, and considered whether an impairment loss needed to be recognized. As the total undiscounted future cash flows expected from the company’s business exceeded its carrying amount, the company determined that recognition of an impairment loss was unnecessary.」