Our business faces various risks. We aim to reduce these risks through prevention, avoidance, dispersion and risk-hedging activities. The main risks that have been identified as having a potential to impact our business are outlined below:
The Group's manufacturing plants are located in the People's Republic of China and Italy. If manufacturing activities in the respective countries are disrupted due to war or political change, there exists the potential for a significant impact on the Group's operating performance and financial condition.
In the real-estate leasing business, the Group's main facilities are located in Odawara-city, Kanagawa Prefecture. If a natural disaster such as an earthquake in the Tokai region damaged the facility and disabled its ability to function as a commercial space, there exists the potential for a significant impact on the Group's operating performance and financial condition.
Other changes to economic trends or a major fluctuation in the currency exchange rate would also have a high potential to significantly impact the Group's operating performance and financial condition.
