DAISAN CO.,LTD.

If new housing starts decline significantly due to rising housing construction costs, trends in mortgage interest rates, changes in housing acquisition support measures, or a decrease in the number of households resulting from population decline, this could have a material impact on the performance of the Group, whose core business is centered on housing-related industries. As a countermeasure, the Group is working to expand its order base and diversify risk by expanding share among existing customers and acquiring new customers, as well as by expanding into scaffolding construction services for non-residential buildings and for renovation and renewal work.

If the Group is unable to secure construction capacity as planned due to a decline in the number of skilled workers in the construction industry, difficulty in attracting younger workers, an aging construction workforce, or increased workload associated with compliance with safety standards, this could affect the performance of the Group, whose core business is scaffolding construction services. As a countermeasure, the Group is promoting the recruitment and training of construction staff, the acceptance and training of foreign workers under the Specified Skilled Worker program and foreign technical intern trainees, the development of a work environment conducive to long-term employment, the enhancement of safety and health education, and the establishment of a system with partner scaffolding construction companies.

In the manufacture of Bike-Ashiba® and general temporary equipment, significant fluctuations in raw material prices, including steel prices, as well as logistics and fuel costs, may affect product costs and material procurement. In addition, geopolitical risks and exchange rate fluctuations may also affect material procurement and delivery times. As a countermeasure, the Group is working on setting expected purchase prices, negotiating prices with suppliers, reviewing procurement sources, and optimizing inventory management.

As the Group has a consolidated subsidiary in Singapore, significant fluctuations in foreign exchange rates may affect its performance. As a countermeasure, the Group sets assumed exchange rates when preparing budgets and endeavors to avoid the impact of exchange rate fluctuations on its performance by utilizing forward exchange contracts and derivative transactions as opportunities arise.

At the Singapore subsidiary, rising local personnel-related costs and changes in regulations concerning foreign workers may affect the profitability of the Overseas Business. As a countermeasure, the Group is working to negotiate orders at appropriate prices, utilize its network of partner companies, improve the efficiency of administrative operations, and develop new business partners, thereby establishing a system that enables flexible changes to the supply chain.

Amendments to the Building Standards Act and other related laws and regulations, as well as the tightening of safety-related regulations, may affect business operations. As a countermeasure, the Group is working to reduce risk by ensuring compliance with relevant laws and regulations and internal rules, and by developing its internal control and compliance systems.

If an information security incident occurs due to an information system failure, cyberattack, or similar event, this may affect business operations and performance. As a countermeasure, the Group is working to reduce risk by strengthening its information management systems.

If a natural disaster or other unforeseen event occurs, this may affect business continuity and performance. As a countermeasure, the Group is working to reduce business continuity risk by developing response systems for use in the event of a disaster.