Restar Corporation

Competition in the electronics industry is intensifying due to market maturation, entry of emerging companies, and advances in IoT/AI, and intensified price competition or delayed response to technological innovation may affect business performance. The Group is responding by enhancing added value through one-stop services and the provision of new business models.

In connection with business development in various overseas countries and regions, changes in political and economic conditions, changes in laws and tax systems, social disruption caused by terrorism, war, or pandemics, credit collection risk, labor shortages and rising labor costs, etc. may affect business performance. The Group addresses this through risk management in collaboration with local experts and partner companies.

In its global business activities, the Group holds transactions and borrowings denominated in foreign currencies such as US dollars and euros, and significant exchange rate fluctuations or interest rate increases may affect business performance. The Group works to reduce foreign exchange gains/losses and lower interest expense burden through inventory reduction and efficient use of funds to curb borrowings.

If a divergence from the initial plan arises due to sudden changes in market conditions or unforeseen circumstances when launching new businesses or making investments, the implementation of impairment accounting, etc. may affect business performance and financial condition. The Group has established a system for prior scrutiny by the Board of Directors and the Investment/Finance Committee, as well as post-investment progress verification, to determine whether to continue.

Recruiting and developing talented personnel with excellent skills and know-how is a critical issue for business development, and failure to secure and develop the necessary personnel may affect business development and performance. The Group is addressing this by clarifying skills through personnel inventory and developing evaluation, compensation, and training systems.

In the event of natural disasters such as climate change, earthquakes, floods, and typhoons, or infectious diseases, in addition to direct damage to the company's own employees and facilities, business activities may stagnate due to suspension of operations at suppliers and customer manufacturers, potentially affecting performance. The Group is hedging this risk through CO2 reduction initiatives based on the TCFD framework, promotion of a BCP system, and enrollment in casualty insurance.

As the company grows in scale, the risk of system failure due to system errors or cyberattacks is increasing year by year, and leakage of confidential information or personal information of business partners could damage social credibility and affect performance. The Group addresses this by building a robust system environment resistant to failures, strengthening group management systems, and introducing advanced security tools.

In the Device business and System Solutions business, dependence on products from specific companies is high, and changes in the management policies of such companies, tight supply-demand of specific components, or changes in business rights due to suppliers' business restructuring or sales channel policy revisions may affect business performance and financial condition. The Group is diversifying risk by developing new suppliers and customers and expanding its product lineup.

The Eco Solutions business is closely related to national policies, environmental regulations, and other laws and regulations, and changes in policies or environmental regulations may affect business performance. There is also a risk that significant fluctuations in electricity market prices (due to rising crude oil prices, exchange rate fluctuations, nuclear power plant shutdowns, etc.) could affect the profitability of this business. The Group addresses this through rapid information gathering and risk diversification via diverse business development.

Achievement of the Group vision is highly dependent on the judgment of Representative Director, Chairman and CEO Kunihiro Konno, and his sudden departure could adversely affect business results and financial condition. Representative Director, President and COO Shin'ichi Hayashi has established a two-leader structure to drive the growth and deepening of existing businesses, and a monitoring system has been established through various committees and meetings based on risk management regulations.