Natural Disasters, Infrastructure Disruptions and Country Risk

「The Group is working to establish a structure under which system maintenance and operations conducted by each overseas subsidiary can be mutually supplemented between Japan and the 2 overseas subsidiaries, and will work to embed business continuity plan operations to improve the effectiveness of measures such as mutual backup simulation tests for operational activities.」

「Overseas, the slowdown in economic activity caused by global monetary tightening, a further slowdown in the Chinese economy, and a downturn in overseas economies attributable to geopolitical risks, including the invasion of Ukraine and conflicts in the Middle East, posed risks of weighing on the Japanese economy. The outlook therefore remained uncertain.」

「Concerns remained over the impact on the domestic economy of further deterioration in geopolitical risks associated with the prolonged situation in Ukraine, the materialization of recession risks in Europe and the United States due to global monetary tightening, and the materialization of further downside risks in the Chinese economy, among other factors, and uncertainty about the outlook continued.」

「In response to these geopolitical risks, the Group is reviewing its business continuity plans, making investments in human resources of a certain scale to secure a highly skilled engineering workforce, strengthening and expanding its domestic system development capabilities, and continuously working to improve system quality. Through these efforts, the Group will promote the establishment of a balanced system development, operations and monitoring structure across its 3 locations in China, Vietnam and Japan, without dependence on any single location.」

「If geopolitical risks materialize in the countries and regions where the Group conducts business or makes investments, including developments in US-China relations and the situations in North Korea and Ukraine, heightened tensions in international relations, shifts toward protectionist economic and trade policies in various countries, tighter regulation and monitoring of information and communications, sudden changes in the political situation, and stagnation in economic activity and restrictions on employee mobility resulting from lockdowns (city closures) implemented as COVID-19 countermeasures, these risks could have a significant impact on business activities.」

「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Because the Group has subsidiaries and conducts business activities overseas, it is exposed to country risk arising from regulations imposed by foreign governments, political instability, restrictions on the movement of funds and other factors.」