Risk of Accidents and Cost Increases Associated with Product Defects, Human Error and the Introduction of New Technologies

「In its EPC business, the Group conducts design reviews involving the heads of the relevant divisions, including general managers and center managers, at each stage of planning, design and construction to prevent problems such as design deficiencies. For high-risk projects, including large-scale projects and projects involving the introduction of new technologies, it seeks to prevent risks from materializing through risk assessments at the quotation and inquiry stage, and risk management and monitoring after orders are received, in accordance with its Project Risk Management Regulations.」

「A facility defect occurred during the operation and maintenance of a contracted waste treatment plant, specifically a gasification and melting furnace, and the company recorded remedial costs for recovery. As a result, operating profit decreased by ¥3,380 million from the previous consolidated fiscal year to ¥3,096 million. The impact of recording the remedial costs on profit and loss for the cumulative second quarter of the current consolidated fiscal year was approximately ¥1 billion.」

「In its EPC business, the company conducts design reviews involving the heads of the relevant divisions, including general managers and center managers, at each stage of planning, design and construction to prevent problems such as design deficiencies. For high-risk projects, including large-scale projects and projects involving the introduction of new technologies, it seeks to prevent risks from materializing through risk assessments at the quotation and inquiry stage, and risk management and monitoring after orders are received, in accordance with its Project Risk Management Regulations.」

「The operating profit decreased by ¥1,785 million from the previous consolidated fiscal year to ¥10,619 million, mainly because some defects occurred at an industrial waste treatment plant delivered to a private-sector customer and the company recorded the cost of remedial construction.」

「The Group's operating results, financial condition and social reputation may be affected by accidents and disasters caused by human error, product defects and other factors during the manufacture, installation, operation management and subsequent operation of its products. In addition, particularly when introducing new technologies, unexpected problems may occur at plants and other facilities for which orders have been received, potentially causing costs to increase beyond initial estimates and affecting the Group.」

「The Group's operating results, financial condition and social reputation may be affected by accidents and disasters caused by human error, product defects and other factors during the manufacture, installation, operation management and subsequent operation of its products. In addition, particularly when introducing new technologies, unexpected problems may occur at plants and other facilities for which orders have been received, potentially causing costs to increase beyond initial estimates and affecting the Group.」