Daitobo Co., Ltd.

The Group's core commercial facility business (shopping centers, etc.) is concentrated in Kiyomizu-cho, Sunto-gun, Shizuoka Prefecture (Mishima area), and geographic diversification has not been achieved. In the event of a Tokai earthquake, the relevant facilities could be damaged, potentially causing a material adverse effect on the Group's business performance. The securities report does not describe any specific countermeasures.

In the commercial facility business, the Company has entered into lease agreements related to shopping centers and other commercial facilities, which form the basis of its core earnings. If such contracts are cancelled for various reasons, the Company could lose a stable source of revenue, adversely affecting its business performance. The securities report does not describe specific contract terms or countermeasures.

The Group holds tangible fixed assets and goodwill and other fixed assets arising from business transfers. If there is a significant change in the business environment or a deterioration in profitability, the recognition of impairment losses may become necessary. Recognition of impairment losses would adversely affect the Group's business performance and financial condition. The securities report does not describe any specific countermeasures.

Due to development construction work for the commercial facility "Sun Moon Kakitagawa" and other factors, the balance of interest-bearing debt at the end of the fiscal year under review reached ¥9,830 million. If market interest rates rise in the future, the burden of interest payments could increase, potentially causing an adverse effect on the Group's business performance and financial condition. The securities report does not describe specific hedging measures or other countermeasures.