SANSEI CO.,LTD.

There is a risk that obsolescence and aging of rental gondola equipment may make it impossible to respond to diversifying customer needs. If unable to respond, the company may miss opportunities to secure orders, potentially affecting business performance. As a countermeasure, the company continues to develop new rental gondola equipment and manufacture such equipment.

For general contractors, the main sales destination for Gondola & Stage, there is a possibility that rising raw material prices and labor shortages could cause contract amounts to fall below cost or lead to delivery delays. This could adversely affect business performance. As a countermeasure, the company continues to negotiate the pass-through of raw material price increases to sales prices, while focusing on stable supply through product standardization and maintaining relationships with materials suppliers as well as selecting new suppliers.

In manufacturing gondolas that accommodate complex building shapes and stage equipment tailored to diverse needs, the use of new mechanisms and new materials may increase development costs and manufacturing costs. In some cases, unexpected expenses may arise, posing a risk to business performance. As a countermeasure, the company works to respond to diverse needs by safely and reliably introducing the latest technologies, new products, and new materials.

In recent years, addressing the aging of engineers has become a management issue, and failure to respond appropriately could lower technical capabilities and affect business performance. The company positions securing and developing engineers as an important management issue. As a countermeasure, the company is working on both proactive recruitment of new graduates and mid-career hires, as well as human resource development aimed at passing on technical skills to younger engineers.

In the event of a natural disaster, there is a risk that installation work and maintenance/repair of gondolas and stage equipment could be interrupted. In addition, if the company's factory is damaged, manufacturing of gondolas and stage equipment as well as ship repair operations could also be interrupted, potentially affecting business performance. As a countermeasure, the company has updated its crisis management manual and formulated a business continuity plan (BCP), and plans to also engage in regular training going forward.