RIKEN KEIKI CO., LTD.

New enactment or revision of legal regulations concerning the installation obligations and maintenance inspections of gas detection and alarm equipment may affect business performance. Since it is difficult to predict the timing at which regulatory changes will materialize, the Company strives to respond proactively through information gathering both within and outside the industry.

Although manufacturing is conducted based on international quality management standards, product defects or malfunctions caused by installation adjustment errors could result in physical and personal damage to users. The Company has comprehensive liability insurance, but there is no guarantee that it will sufficiently cover the amount of compensation, and a serious defect could result in substantial costs and damage to the Company's reputation, which may adversely affect its business and financial condition.

The Company positions research and development of gas sensors and new products, based on a wide range of technologies including electrical, physical, and chemical fields, as a top management priority; however, there is no guarantee that the development of new technologies aligned with user needs will contribute to business performance. If development investment fails to produce results, there is a risk that it will not contribute to business performance.

Demand for gas detection and alarm equipment is significantly affected by trends in private-sector capital investment in industries such as semiconductors, petrochemicals, and shipbuilding, as well as public infrastructure investment including electricity and gas. A contraction or fluctuation in capital investment due to changes in the economic environment may directly affect the business performance of the Company and its group.

In global business operations, including product exports, deterioration of the political and economic situation in countries or regions of expansion, import/export and foreign investment regulations, unexpected changes in laws and regulations, economic sanctions between nations, and social disruption caused by terrorism, war, or infectious diseases could impede business activities. The Company and its group closely monitor regulatory trends in each country and region and respond according to the situation, but the occurrence of such events could have a significant impact on business performance and financial condition.

In production activities, the Company uses certain specialized materials and supplies for which procurement sources are limited; tight supply, delays, or price fluctuations could lead to increased purchasing costs or production delays. The Company strives to consider alternative materials and promote multiple sourcing, but if alternatives are difficult to secure, there is a risk of a significant impact on business performance and financial condition.

External factors such as hacking and computer viruses, as well as human error, could cause malfunctions, failures, or information leaks in information systems, resulting in temporary business interruptions that affect business performance. The Company and its group implement monitoring and prevention measures against unauthorized external access, information leak prevention measures, and employee training, and continuously strengthen and review these countermeasures.