ITOHAM YONEKYU HOLDINGS INC.

Fluctuations in prices of livestock products procured domestically and internationally, the invocation of safeguard measures on imported pork and beef, tightening global food supply-demand conditions, and substantial increases in auxiliary materials, packaging materials, electricity, logistics costs, and feed prices could affect business performance. As countermeasures, the Company is promoting diversification of procurement sources, continuous business reforms to reduce manufacturing costs, maintenance of appropriate inventory levels, and reduction of price fluctuation risk through position management.

If livestock diseases such as ASF (African Swine Fever), avian influenza, or BSE spread, meat market prices both domestically and internationally could fluctuate significantly, potentially disrupting the procurement and sale of meat. There is also a risk that outbreaks at the Company's own farms or partner farms could result in shipment suspensions. The Company mitigates supply risk by developing response manuals and building a procurement system spanning multiple regions and multiple suppliers.

If health damage to consumers occurs or products/merchandise must be recalled or disposed of, loss of social trust and damage to brand value could affect business performance. The Company addresses this through strengthened food defense and traceability, establishment of a strict quality control system based on international management standards, and active promotion of safety and hygiene education.

Cyberattacks, unauthorized access, computer virus infections, system failures, and similar incidents could result in information leakage or loss, or malfunctions in business systems, potentially leading to substantial costs and reputational damage. The Company implements security measures such as prevention of computer virus infections, duplication and distributed placement of core systems and data storage servers, and unannounced drills based on its information security policy.

Deterioration in the fundraising environment for interest-bearing debt, increased interest burden, and losses from significant fluctuations in foreign exchange rates associated with overseas procurement of raw materials and products could affect business performance and financial condition. The Company mitigates liquidity risk by establishing commitment lines and hedges exposure through forward foreign exchange contracts and similar measures.

In capital investments including M&A and measures against facility aging, if market or business conditions deteriorate beyond what was anticipated at the time of investment decisions, resulting in the inability to recover fixed assets or goodwill, impairment losses could occur and affect business performance and financial condition. The Company manages this risk through careful deliberation by the Investment Committee, chaired by the responsible executive officer, board resolutions, and periodic progress checks after investment execution with verification and response in the event of deviations.

Labor shortages among truck drivers and cargo handling workers, insufficient transport capacity due to overtime work limit regulations, disruptions in maritime transport, and insufficient infrastructure such as cold storage warehouses could make it difficult to build an appropriate supply chain, potentially hindering timely and appropriate supply of products and merchandise. The Company is working to strengthen its logistics system through improved order accuracy, optimized inventory management, improved loading efficiency, and diversification of procurement countries.

If a shortage of young workers due to the declining birthrate and aging population, outflow of personnel due to changes in the employment environment, or delays in developing capable talent occur, this could reduce corporate competitiveness and damage credibility due to insufficient supply capacity, affecting business performance. The Company addresses this through the recruitment of diverse talent and the promotion of human resource system development and education/training that enhances employee engagement.

The Company may bear retroactive legal and social responsibility related to environmental matters, and future tightening of environmental regulations or the introduction of new environmental taxes could increase response costs and affect business performance. The Company strengthens and enhances its promotion framework through compliance with laws based on its environmental philosophy and environmental action guidelines, and the establishment of a Sustainability Committee chaired by the responsible executive officer.

The occurrence of large-scale earthquakes, storm and flood damage, war, conflict, terrorism, large-scale fires, or a global spread of infectious diseases affecting humans could disrupt product manufacturing and supply of goods, affecting business performance. The Company addresses this through the formulation of a Business Continuity Plan (BCP), preparation of alternative manufacturing and delivery arrangements, regular disaster prevention drills, and the development of infectious disease response manuals.