OHMORIYA Co., LTD.

Raw nori, the company's main raw material, is a marine product, and harvest volumes are affected by weather and sea conditions in production areas, which may cause purchase prices to fluctuate and impact business performance. The company mitigates this risk by establishing a procurement system sourcing from multiple production areas across Japan.

Raw nori must be purchased in bulk for approximately one year's worth of supply during the harvest season, roughly from November to March, requiring a large amount of funds temporarily during the fiscal period. To meet this funding need, the company has entered into overdraft agreements with multiple financial institutions to ensure a flexible and stable financing structure.

Nori is currently designated as an import-restricted item, but if import quotas are expanded or abolished in the future, competition with imported nori from South Korea and China may intensify, potentially affecting both purchase and selling prices. The company primarily uses domestically produced raw materials while also securing overseas import routes to prepare for unforeseen circumstances.

Fluctuations in crude oil prices and exchange rates may cause the purchase prices of containers, packaging materials, and other supplies to rise, impacting business performance. The company strives to avoid this risk through advance price negotiations and appropriately timed pricing decisions.

If doubts arise regarding product safety due to unforeseeable causes, product recalls or product liability claims may occur, impacting business performance. The company has obtained ISO9001 certification and is committed to quality control through enhanced inspection systems for raw materials and products.

In overseas business conducted in China and elsewhere through the subsidiary Omoriya (Shanghai) Trading Co., Ltd., established in March 2013, unforeseeable events arising from political instability, international disputes, or differences in legal regulations and business customs could affect operating results. The company works to strengthen its management framework through regular meetings with local subsidiaries and by monitoring economic and political conditions around the world.

In overseas business centered on China, exchange rate fluctuations may affect operating results. The company addresses this through the development of management structures from both the perspective of formulating management strategy based on market analysis and the perspective of sales promotion and risk response.

The company is subject to a wide range of legal restrictions, including the Food Labeling Act, the Food Sanitation Act, the Product Liability Act, and the Containers and Packaging Recycling Act. Violations of these laws or the enactment of new related legislation could affect operating results and financial condition. The company has established an internal Risk Management Committee to promote compliance with domestic and international laws and fair trading practices.