Amatei Incorporated

There is a risk that wars, conflicts, natural disasters, epidemics, and similar events could disrupt the supply chain, delay deliveries, or temporarily halt business operations. The Company is building a flexible supply system based on a broad range of procurement sources and implementing business continuity measures such as telework and web conferencing.

There is a risk that the ongoing decline in the birthrate will lead to a long-term decrease in the number of new housing starts in Japan, resulting in a gradual decline in nail demand in the For Construction & Packaging segment. On the other hand, the Company is working to mitigate this impact by focusing on capturing new demand from the use of wood in non-residential buildings and the development of mid-rise wooden apartment buildings.

If changes in the trade policies of export destination countries cause a decrease in automobile export volumes, this could adversely affect sales in the For Electrical & Transport Equipment segment through a decline in domestic automobile production volumes. As a countermeasure, the Company is promoting expanded sales to industries outside the automotive sector, such as industrial equipment, medical equipment, and amusement-related fields.

In the For Construction & Packaging segment, there is a risk that profitability could temporarily deteriorate if price pass-through to selling prices lags behind soaring raw material prices and energy costs. In addition, if import prices fall significantly due to fluctuations in overseas market conditions, this could also affect the selling prices of domestically produced products. The Company is working to strengthen its information-gathering efforts on market trends and to establish a system for rapid response.

When the yen depreciates, procurement prices for imported goods in the For Construction & Packaging segment rise, while in the For Electrical & Transport Equipment segment, sales may increase due to higher production for export by automobile manufacturers. When the yen appreciates, import procurement costs are expected to decline, but there is a risk of decreased domestic demand due to a reduction in automobile export volumes and the shift of production bases overseas. The Company is working to secure a wide range of procurement sources and to build a balanced business structure that avoids over-reliance on any specific industry.