Sata Construction Co., Ltd.

If public works spending is cut more than expected, or if private-sector capital investment declines due to changes in economic conditions, this could affect performance through a decrease in order volume. As a countermeasure, the company monitors market trends and regional conditions, and works to secure stable orders through collaboration between the sales and construction departments.

In the construction industry, there are many cases where construction payments remain uncollected at the time of delivery of the completed work, and if the client falls into financial distress before payment is collected, there is a risk that trade receivables become uncollectible. Credit concerns among suppliers and subcontractors may also affect performance, so the company works to reduce this risk through credit management, information gathering, and receivables protection.

If the procurement costs of major construction materials rise more than expected, and it is difficult to pass these cost increases on through the contract price, construction profitability may deteriorate, affecting performance. As a countermeasure, the company strengthens its construction management and cost management processes to mitigate the impact of cost increases.

If a major accident involving personal injury or damage to a structure occurs in the civil engineering or building construction business, it could affect performance through construction suspension, damages claims, and reputational decline. The company works to prevent accidents and mitigate losses when they occur through thorough safety management and insurance coverage.

If a large-scale natural disaster such as an earthquake or wind/flood damage, or a pandemic, occurs, it could affect performance through the suspension of operations at construction sites and difficulty in securing personnel. The company has obtained the Ministry of Land, Infrastructure, Transport and Tourism's "Certificate of Basic Business Continuity Capability in the Event of a Disaster" and is working to establish a business continuity system.

If a serious non-conformance with contract requirements occurs in any aspect of design or construction, it could affect performance and corporate reputation through the incurrence of repair costs and claims for damages. The company prepares for this risk through the establishment of a quality management system certified under ISO 9001 and the recording of provisions.

If a cyberattack, unauthorized access, or computer virus intrusion results in information leakage, destruction or falsification of important data, or system outages, this could affect performance through a decline in trust. The company takes countermeasures through the establishment of information security management regulations, employee training, and the introduction and continuous updating of security software.