TOAMI CORPORATION

If the prices of key raw materials such as wire rods and reinforcing bars fluctuate, business performance could be significantly affected depending on the extent to which such cost increases can be passed on to selling prices. There is also a risk that exchange rate fluctuations related to foreign currency-denominated transactions for overseas materials could lead to increases in raw material costs. In response, the Company controls the volume and timing of procurement while closely monitoring domestic and overseas market conditions, and is working to diversify its procurement routes.

Since the Group's main customers are in the construction and civil engineering industries, a decline in domestic public works or private construction investment could significantly affect business results. In response, the Group is working to expand into overseas markets with growth potential and to develop new markets through the development of new services and products that anticipate on-site needs.

The Group owns much of its land, buildings, and other assets, primarily factories. If profitability deteriorates, accounting standards related to impairment of fixed assets would apply, potentially affecting the Group's financial position and business results. In response, the Group strives to improve profitability through thorough management of the procurement of key raw materials, productivity improvements, and timely review of selling prices.

As most of the Group's production sites and customers are concentrated in Japan, if facilities at production sites are damaged by a natural disaster, disruptions to production and delivery could significantly affect business results. In response, the Group has dispersed its sites across the Kanto, Chubu, Kansai, Chugoku, and Kyushu regions to build a mutual support system, and the Risk Management Committee is proceeding with the preparation of hazard maps and the development of a crisis management manual.

If the spread of a new infectious disease causes construction work suspensions and postponements at domestic construction sites to become the norm, product shipments could be disrupted, affecting business results. In response, the Group is implementing thorough infection prevention measures led by the head office and diversifying work styles through measures such as refraining from business travel, utilizing web conferencing, and promoting remote work, with a policy of activating its crisis management system based on the Crisis Management Regulations and Crisis Management Manual.

There is an anticipated risk that tightening global regulatory standards, or a lack of proactive engagement with sustainability initiatives, could lead business partners to distinguish against and exclude companies that are less committed to such efforts. The Group has established six goals related to SDG targets under its "Vision for 2030," including the transition to renewable energy, resource conservation, and infrastructure resilience, and is proceeding with its response based on the recognition that steadily achieving these goals serves as a countermeasure to this risk.

If confidential information, including personal information, is leaked due to system failures, cyberattacks, unauthorized access, or other causes, this could affect business performance and financial position. In response, the Group has introduced information security measure tools and implemented access controls for internal information, striving for the appropriate management of confidential information.