Mitsubishi Logisnext Co., Ltd.

There is a concern that a global economic slowdown could lead to a significant decline in orders, and that the expansion of exports of Chinese products could reduce competitiveness. The introduction of low-priced products also carries the risk of damaging brand value. As countermeasures, the Company is strengthening price competitiveness through ODM adoption and reviewing the product lineup, enhancing added value by maintaining after-sales service quality, and promoting the handling of products and development of cost-competitive products to counter Chinese brands.

Deficiencies or delays in responding to regulations in each country carry the risk of lost sales opportunities and a decline in social credibility. Products deployed globally require appropriate responses to each country's regulations. The Company addresses this by appropriately collecting information on laws and regulations, reflecting it in development and application plans, and conducting education and awareness activities.

There is a risk that quality defects could undermine product reliability, and lawsuits stemming from product defects could result in substantial damages. Industrial vehicles such as forklifts are subject to high safety requirements, and quality issues could have a material impact on business continuity. The Company addresses this through reliable operation of the product development process, regular global sharing of defect information and operation of the quality management system, establishment of a legal framework including cooperation with attorneys, and appropriate PL insurance coverage.

There is a risk that a resurgence of the US-China trade war could increase the burden of high tariffs, and that intensifying regional conflicts could disrupt logistics networks, leading to higher raw material costs. As a manufacturer, raw material costs directly affect earnings, so the impact on the cost structure is significant. The Company seeks to reduce this risk by diversifying supply countries and strengthening relationships with logistics providers to secure stable shipping routes.

There is a risk that unauthorized access or ransomware infection could halt systems, interrupting business activities. As the Company expands its business globally, the threat of cyberattacks is increasing, and the impact on social credibility in the event of information leaks or business disruption is significant. The Company addresses this through formulating a security policy, strengthening countermeasures via 24-hour monitoring of networks and vulnerability assessments, and maintaining global cybersecurity insurance.

In the event of a system failure due to equipment malfunction or human error, there is a risk that operations could stall, causing serious disruption to business activities. A failure in core systems could impact a wide range of business processes, including order-taking, production, and logistics. The Company addresses this through standards-compliant development and maintenance, migration to the cloud, regular recovery testing, and secure management of backup data.

In the group-wide business system integration project, there is a risk that delays in system implementation could worsen the operating environment across the group. As a countermeasure, the Company assigns experienced personnel to project management and thoroughly implements gate management to reduce the risk.

In the event of a natural disaster such as an earthquake or wind and flood damage, there is a risk of prolonged disruption to business activities. If manufacturing or logistics sites are affected, it could have a serious impact on the group's overall supply chain. The Company addresses this through formulating a BCP (Business Continuity Plan), continuously operating BCM (Business Continuity Management), and conducting education and awareness activities.