West Holdings Corporation

The Group operates its business under numerous laws and regulations, including the Construction Business Act, the Electricity Business Act, the Act on Specified Commercial Transactions, and the Act on the Protection of Personal Information. Future amendments to laws or the establishment of new regulations may constrain business activities and affect performance. The Group strives to ensure legal compliance through the development of internal management systems and participation in various training seminars.

In the non-FIT solar power plant development business and the grid-connected battery storage development business, obtaining permits and licenses such as agricultural land conversion and forest land development is required, and the understanding and cooperation of landowners and surrounding residents are also essential. If obtaining permits and licenses or reaching consensus with local residents takes longer than expected, project schedules may be delayed, affecting performance. The Group addresses this through prior surveys and by holding explanatory meetings for local residents.

The solar and wind power plants held by the Group in its electric power business are variable renewable energy sources subject to output curtailment rules applied by electric power companies. If output curtailment is implemented, the Group may be unable to obtain expected power sales revenue, which could affect performance. This is a structural risk arising from climatic conditions and grid constraints, and securing stable power generation volume remains a challenge.

In the Group's renewable energy business, many of the products handled are imported from manufacturers in China, Taiwan, and South Korea. Depending on currency fluctuations and settlement methods, procurement prices may rise, adversely affecting performance. Given the business structure's high dependence on imports, there is a risk that increased procurement costs during periods of yen depreciation could put pressure on earnings.

The Group handles large amounts of personal information in the course of its business, and if an information leak were to occur, it could affect performance through a decline in social credibility and the incurrence of response costs. The Group has appointed a personal information management officer based on its personal information protection regulations and is working to develop its management system, but risks such as cyberattacks and internal misconduct cannot be completely eliminated.

The Group has not established internal rules regarding retirement benefits for directors and auditors, and its basic policy is to pay officer compensation according to each period's performance. However, if retirement benefits for officers are paid in the future, unexpected expenses may arise, affecting performance. Because there are no internal rules in place, the predictability of the amount to be paid is low, creating an element of uncertainty in financial planning.