TAKAMISAWA CO., LTD.

The Group performs impairment recognition assessments based on the 'Accounting Standard for Impairment of Fixed Assets.' Depending on the assessment results, the book value of fixed assets may be significantly written down, potentially having a material impact on consolidated business performance. No specific countermeasures are described, and continuous monitoring remains a challenge.

The Group operates a ready-mixed concrete manufacturing and sales business through two joint venture companies in China. If regulatory tightening or deterioration in economic conditions occurs within China, the profitability of this business may decline, potentially affecting the Group's overall performance. No specific countermeasures against geopolitical risks or changes in the regulatory environment are described in the securities report.

At the end of the consolidated fiscal year, the balance of interest-bearing debt reached ¥9,531 million, with a debt dependency ratio of 24.5%. If market interest rates rise in the future, increased interest payments would expand financial costs, potentially adversely affecting the Group's business performance and financial condition. The securities report does not describe specific hedging measures against interest rate risk.

In the Construction-Related Business and the Electrical Construction Materials Business, the proportion of sales attributable to public works is high, and a significant reduction in government or municipal budgets related to public works could directly reduce sales. As a countermeasure, the Group is promoting the expansion of business areas and fields both within and outside Nagano Prefecture, and shifting toward private-sector construction work to expand its business domain.

Sales of automotive fuel oil, a major source of revenue in the Car Life-Related Business, are expected to continue declining due to the growing adoption of environmentally friendly vehicles such as hybrid cars and the declining population. As countermeasures, the Group is working to improve its sales share, strengthen sales efforts for industrial petroleum products, and expand energy-related products and services as well as automobile-related sales by leveraging Group synergies.

If a large-scale natural disaster such as an earthquake, typhoon, or flood occurs, damage to production facilities or business suspension could disrupt business continuity, potentially having a material impact on the Group's performance. In particular, damage to physical infrastructure such as ready-mixed concrete manufacturing facilities poses a risk of directly impairing the supply capacity of the Construction-Related Business. No specific BCP (Business Continuity Plan) is described in the securities report.

If infectious diseases such as novel coronavirus or influenza spread and cause infections among employees, or if economic conditions deteriorate, the Group's series of business activities from production to sales could stagnate, potentially affecting the Group's performance. Since the business model requires securing personnel at each stage of manufacturing, construction, and sales, the risk to business continuity during the spread of infectious diseases is relatively high. No specific countermeasures against infectious diseases are described in the securities report.