ASAHIPEN CORPORATION

Pigments, petrochemical products, and containers/packaging are the Group's principal raw materials, and are subject to market price fluctuations in crude oil, naphtha, raw ore, and other commodities. A rise in raw material costs directly increases manufacturing costs and may affect the Group's financial position and operating results. No specific countermeasures are disclosed in the securities report.

Since the Group's product lineup includes imported goods from overseas, a depreciation of the yen raises procurement costs, which may affect the Group's financial position and operating results. The Group hedges this risk through timely forward exchange contracts, but it is explicitly stated that there is no guarantee that this risk can be completely avoided.

Demand for household paints and gardening supplies is significantly affected by seasonal changes and weather conditions. Adverse weather or other environmental conditions during peak demand periods may reduce sales volume, potentially affecting the Group's financial position and operating results. No specific countermeasures are disclosed in the securities report.

In the event of damage to production facilities or disruption of road and other infrastructure caused by a large-scale earthquake or other natural disaster, the manufacturing, transportation, and sale of products may be affected. It is explicitly stated that, depending on the scale of the disaster, this could have a material impact on the Group's financial position and operating results, but no specific BCP countermeasures are disclosed.