Yoshitake Inc.

Some products are manufactured at the manufacturing subsidiary in Thailand, and if a conflict or major disaster occurs, it may become difficult to obtain such products. Although the Group has established sufficient stockpiles and know-how for alternative procurement and production both domestically and overseas, if unexpected circumstances persist, this may affect business performance.

The Group uses metal products such as cast iron, bronze castings, and stainless steel as principal raw materials, and significant price increases have already been observed for some metals. If a full-scale, large-scale increase phase occurs in the future, the Group may receive price increase requests from suppliers, and since there are limits to passing on costs to sales prices and to cost reductions, business performance may be affected over the medium to long term.

Significant price increases and procurement difficulties have already been observed for petroleum-derived products such as paints and resin materials, and if this situation becomes prolonged or worsens, it may impede manufacturing activities for some products. As countermeasures, the Group is considering passing costs on to sales prices and switching to alternative materials, but there are concerns about the impact on business performance over the medium to long term.

Securing and developing personnel is essential for continuous business operations, and while the Group secures a certain number of new graduate hires each year, if it becomes unable to continue securing talented personnel going forward, this may affect business performance over the medium to long term. The Group continues efforts to maintain an appropriate distribution of personnel across age groups, but changes in the recruitment environment constitute a risk factor.

A decline in construction demand and capital investment appetite due to an economic slowdown or deterioration in corporate earnings may lead to downward pressure on sales prices, which could affect business performance. The Group maintains a policy of preserving appropriate sales prices under its corporate philosophy of "Fair Business," but depending on the behavior of competitors and market conditions, it may temporarily lose market share.