Kawagishi Bridge Works Co.,Ltd.

The company's core product, structural steel frames, is used in office buildings, condominiums, factories, commercial facilities, and the like, with the majority of demand dependent on private-sector construction investment. If trends in private-sector construction investment deteriorate, this could have a material impact on business performance through a decline in order volume. The company strives to minimize this risk by accurately grasping changes in the external environment and customer needs.

The company's main customers are general contractors, and if a customer's creditworthiness deteriorates before payment for construction work is received, a risk of failing to collect the construction payment arises. Should such non-collection occur, it would directly result in a loss to business performance. The company addresses this by thoroughly verifying customer creditworthiness at the time contract and settlement terms are agreed, and by working to collect receivables promptly.

Steel Frame (Steel Structures) and Precast Concrete products are used in buildings and therefore require high durability and quality. If, due to non-conformance with contract specifications or other issues, the quality level demanded by customers is not achieved, requests for rework, repair, or renovation may arise, potentially leading to additional costs and a decline in business performance. The company works to prevent recurrence by accurately understanding the contractual quality and specification requirements and by thoroughly disseminating information on past defect cases.

If the price of steel, the main raw material for steel frames, rises sharply and the increase cannot be promptly passed on to order prices, this could adversely affect business performance through a rise in the cost ratio. Since raw material costs directly affect business earnings, the impact of price fluctuations is significant. The company strives to ensure a stable supply by procuring steel from a wide range of suppliers.

If an unforeseen occupational accident occurs involving Group employees or employees of partner companies, this could lead to suspension of business dealings by customers or claims for damages, potentially affecting business performance. Given the nature of the business, which involves manufacturing and construction sites, the risk of occupational accidents is ever-present. The company strives to prevent such accidents through monthly safety and health meetings and safety education encompassing the Group and partner companies.

The business is supported by specialized engineers and skilled workers, making the securing, development, and retention of excellent human resources an important issue. Amid a continuing decline in the working population due to the falling birthrate and aging population, failure to secure the necessary personnel could lead to reduced production capacity and a decline in business performance. The company strives to secure personnel through proactive recruitment activities and the use of a continued employment system for employees past retirement age.

There is a risk that unauthorized external access, computer virus intrusion, or similar incidents could result in the leakage of confidential or personal information, or in the failure of information systems. Depending on the scale of the damage, the possibility of business interruption, not merely reduced operational efficiency, cannot be ruled out. The company works to ensure security by establishing an information management structure centered on relevant departments.

If facilities are damaged or business activities are suspended due to a natural disaster such as an earthquake or flood, or an accident such as a fire, this could have a material impact on business results and financial condition depending on the scale of the recovery required. The company reduces the risk of concentration at a single site by dispersing its factories across eastern and western Japan, and has established a framework whereby relevant departments take the lead in discussing and implementing countermeasures in the event of a disaster.

If an infectious disease spreads explosively within Japan, operations at factories and construction sites may be suspended for a certain period, potentially affecting business results and financial condition. A cluster infection at a manufacturing or construction site poses a risk of directly impeding business continuity. The company thoroughly implements infection prevention measures in line with guidelines from the national and prefectural governments, and takes measures to curb infection such as web conferencing, staggered commuting hours, and telework.