Storageoh Co., Ltd

The Company generates approximately 80% of its profit from the development and sales business, and if real estate held for sale cannot be sold or such sale is delayed, the Company could fall into an ordinary loss. Key factors include failure to achieve occupancy targets due to insufficient marketing, decreased demand due to changes in the external environment, and significant fluctuations in surrounding real estate prices. As countermeasures, the Company arranges construction materials in advance at the time building confirmation applications are completed and conducts parallel negotiations with multiple prospective buyers.

Fluctuations in macroeconomic factors such as economic conditions, interest rate levels, and land prices directly affect trunk room rents and occupancy rates, land purchase prices, construction costs, etc., and may affect operating results and financial condition. The real estate industry is highly correlated with economic conditions, and this risk affects the Company's business as a whole. As countermeasures, the Company regularly monitors economic trends and real estate market conditions and grasps market conditions according to area and property characteristics.

If real estate market fluctuations cause development land prices to rise, making acquisition as planned difficult, or if additional costs arise due to discovery of defects such as soil contamination or buried objects, this may affect operating results and financial condition. Price increases due to competition with other companies directly lead to reduced profit at the time of sale. As countermeasures, the Company thoroughly investigates location, ground conditions, and surrounding environment in advance, and seeks to avoid competition by obtaining early information from trust banks and others.

When the Company enters into a master lease agreement for a property sold to an investor, lease obligations arise for the Company. If the occupancy rate falls to a level where investment recovery cannot be expected within the master lease period, the Company may be required to record a provision, which would affect operating results and financial condition. Details of lease transaction balances are described in the notes (lease transactions) of the Annual Securities Report.

The Company procures short-term and long-term interest-bearing debt from financial institutions as business funds for property acquisition and construction, etc., and in phases where market interest rates rise, an increase in interest payments may affect operating results and financial condition. Fundraising is discussed with financial institutions from the start of land acquisition negotiations, and the Company strives to utilize its own funds and secure sufficient liquidity.

Rising construction costs and shortages in the supply of construction materials pose risks of reduced profit or delayed sales, which may affect operating results and financial condition. As countermeasures, the Company seeks to expand its network of business partners including multiple construction contractors and container manufacturers, and in the event of construction delays, seeks to mitigate risk by proactively negotiating with financial institutions for extensions of loan periods.

The Company operates with a small workforce, emphasizing efficiency in its organizational structure, and if rapid business expansion, entry into new businesses, or a decrease in employees due to sudden accidents or resignations occurs, it may become difficult to respond appropriately and adequately from an organizational standpoint. There is a risk that this could affect the pace of business development, social credibility, and operating results and financial condition.

The trunk room business has low entry barriers, such as no patent protection, and new entrants from other industries and intensifying competition with peer companies may affect operating results and financial condition. On the other hand, since the trade area is a community-based business limited to approximately a 2-kilometer radius from the property, wide-area competition, as seen with general consumer goods, is unlikely to occur. As countermeasures, the Company strives to secure competitive advantage by reducing property acquisition costs and differentiating through air conditioning and security features.

The Company holds personal information of prospective and existing customers, and is subject to regulations such as the Personal Information Protection Act. In the event of an external leak, the Company could face damage compensation liability and loss of social credibility, which may affect operating results and financial condition. Although the Company has established a management system with utmost care, this risk cannot be completely eliminated.

In July 2025, the largest shareholder and affiliated company changed from Develop Co., Ltd. to KLI Co., Ltd. At present, business roles are clearly divided between the two groups and no competition has arisen, but future changes in business or transaction arrangements may affect the Company's business. Details of transactions with related parties are described in the related party information section of the Annual Securities Report.