Onamba Co., Ltd.

The Group has production and sales bases in North America, China, Southeast Asia, and Europe, and the overseas sales ratio reached 46.0% in FY2025 (ending December 2025). Foreign exchange fluctuations and changes in laws, regulations, and tax systems in each country may have a significant impact on the Group's business results and financial position. As countermeasures, the Group utilizes forward exchange contracts and conducts risk reviews of Group companies through the Audit Office.

If the purchase prices of copper and PVC compounds, the main raw materials, fluctuate sharply beyond expectations, this may have a significant impact on the Group's business results and financial position. Although the Group conducts advantageous procurement through the collection of price information, there are limits to responding to sudden market changes. The Group seeks to reduce risk through cost reductions and passing on prices to customers.

The Group procures medium- to long-term funds through bank borrowings, and rising interest rates in each country may have a significant impact on the Group's business results and financial position. The Group utilizes a CMS (Cash Management System) to improve the efficiency of Group funds, while also working to strengthen its financial position by reducing interest-bearing debt.

Due to the application of accounting standards for impairment of fixed assets, if the business environment deteriorates or there are significant fluctuations in the fair value of land and other assets, impairment losses may occur. The recognition of impairment losses could be a factor that temporarily and significantly worsens the financial position. The Group is working to improve the profitability of its assets with impairment risk in mind.

Although products are designed and manufactured based on quality and safety standards both in Japan and overseas, if product defects or quality problems occur due to unforeseen factors, product liability claims and other issues may arise, which could have a significant impact on the Group's business results and financial position. In addition to thoroughly ensuring quality, the Group takes measures to limit losses by taking out product liability insurance.

The technology departments of the Company and Union Machinery Co., Ltd. are engaged in the development of Electric Wires & Cables and related products; however, delays in the commercialization of R&D themes or advances in technological innovation within the industry may make it difficult to achieve the original objectives. The Group considers R&D investment essential to the survival of the Group and addresses this risk by building a system to grasp the latest technological trends and by continuously securing and developing excellent human resources.

Environmental regulations are being strengthened around the world, including the EU's RoHS Directive, and companies in the industry are required to respond by developing and using substitute materials for regulated substances. Further tightening of regulations in the future may result in costs related to the manufacture and disposal of products, which could have a significant impact on the Group's business results and financial position. The Group is addressing environmental regulations by complying with the revised RoHS Directive (RoHS 2.0) and maintaining and improving ISO14001/9001 certification.

If manufacturing facilities are damaged or destroyed by large-scale natural disasters such as major earthquakes, or by terrorism or riots, this may have a significant impact on the Group's business results and financial position. The Group seeks to diversify risk by dispersing its production bases both domestically and overseas, but there are limits to this in the event of an unexpectedly large-scale disaster. The Group seeks to reduce risk by taking out fire insurance and other coverage in preparation for potential disasters.