Regional concentration in the Kinki and Tokai regions; weather, competitive, and natural disaster risks

「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.」

「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 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.」

「A section of the water pipeline bridge over the Kinokawa River in Wakayama City, Wakayama Prefecture, collapsed on 3 October 2021, resulting in a water outage in northern Wakayama City and restrictions on operations at some of the Group's stores. All stores are now operating normally, but ¥21 million in damages and extraordinary expenses related to the water outage has been recorded under "Other" within extraordinary losses for the nine months ended [the third quarter of] the current consolidated 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 part of its disaster preparedness initiatives, the Group regularly conducts training to establish emergency response headquarters and evacuation drills based on tsunami scenarios, seeking to raise employees' awareness of crisis management. In addition, to enable a prompt recovery after a disaster, the Group takes out property and casualty insurance for certain high-risk stores as a means of hedging financial risk.」

「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「Losses from disasters 149」

「Losses from disasters - 143」

「On 4 September 2018, Typhoon No. 21 made landfall, causing damage to buildings, equipment, products and other assets at some stores, food factories and other facilities, mainly in the Kinki region, due to high winds, heavy rain and power outages. The amount of damage and insurance proceeds related to the disaster are currently under investigation, but the impact on operating results is expected to be limited. As of the filing date of this quarterly report, all facilities had resumed operations.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「Our Group operates retail businesses in Kinki and Tokai, regions where the occurrence of the Tokai, Tonankai and Nankai earthquakes and other events is a concern. If a major earthquake or other natural disaster occurs in these regions, our Group's business activities could be seriously disrupted, affecting our operating results and financial position.」

「No new business or other risks arose during the cumulative third quarter under review. In addition, there have been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「Our Group operates primarily in the retail business in Kinki and Tokai, selling fresh and processed foods, clothing, household goods and other products. Accordingly, if economic or employment conditions in these regions deteriorate, abnormal weather such as a cool summer or warm winter occurs, new competitors enter the market, or a major natural disaster such as an earthquake or storm and flood damage, or an accident occurs, this could adversely affect our Group's operating results.」