Tamron Co.,Ltd.

Due to improved smartphone camera performance, the digital camera market and the market for interchangeable lenses, the Company's main product, continue to show a contracting trend. If digital cameras are unable to appeal with advantages over smartphones, the market contraction may progress further, potentially having a material impact on business performance. As a countermeasure, the Company is actively promoting the launch of new Interchangeable Lenses for Mirrorless Cameras products.

The Photographic Equipment Business accounts for approximately 71.3% of sales composition (FY2025 ending December 2025), creating a risk that fluctuations in the market for interchangeable-lens cameras such as mirrorless cameras and digital SLR cameras will directly affect business performance. Concentration of the business portfolio may undermine earnings stability. As a countermeasure, the Company is expanding its industrial-use business, including surveillance cameras and in-vehicle cameras, and advancing into new fields such as medical applications.

Sales to Sony Group companies account for approximately 23.1% of consolidated sales (FY2025 ending December 2025), and any change in the Sony Group's strategy or policies, or in the trading relationship, could have a significant impact on business performance. High dependence on a single customer entails risks such as reduced bargaining power and a sharp decline in sales. As a countermeasure, the Company is strengthening partnerships with other customers and pursuing new customer development.

There is a dependence on procurement from a limited number of suppliers, particularly for glass materials, and if it becomes difficult to obtain the planned quantities or prices, there is a risk that production plans will not be met and that the Company will be unable to fulfill its delivery obligations to customers. Supply chain vulnerabilities may directly affect business performance. As a countermeasure, the Company is working to identify multiple sourcing and alternative supply options and to implement early countermeasures such as design changes.

As the Company holds technical information, information on business partners, and personal information, there is a risk of information leakage due to attacks by hackers or computer viruses, infrastructure failures, natural disasters, and the like. Should information leakage occur, in addition to damage to corporate value, the Company may face claims for damages from business partners, customers, employees, and others, as well as substantial compensation and recurrence-prevention costs, which could adversely affect earnings and financial condition. As a countermeasure, the Company has established an information security framework and manages information based on its security policy.

In a business environment where optical technology is rapidly evolving, if the development or application of advanced technologies to products does not proceed as planned, this could lead to a decline in competitiveness and have a significant impact on business performance. Substantial and continuous investment in research and development is essential, and the risk is high if such investment fails to produce results. As a countermeasure, the Company is pursuing technology development based on a mid- to long-term technology roadmap and promoting open innovation.

As transition risks, increased costs from carbon tax burdens and purchases of renewable energy, and brand damage from delays in decarbonization response, may affect business performance; as physical risks, soaring raw material prices, factory operation stoppages, and supply chain disruptions caused by abnormal weather may also affect business performance. This is positioned as an important issue for the Group, which operates globally. As a countermeasure, the Company has formulated the "Environmental Vision 2050" (including zero CO₂ emissions by 2050) and is working on climate change countermeasures.

Since transactions with overseas subsidiaries and some transactions with domestic and overseas business partners are conducted in foreign currencies, fluctuations in exchange rates may significantly affect product competitiveness in overseas markets, export profitability, and business performance. As global expansion continues, foreign exchange exposure remains an important risk factor. As a countermeasure, the Company implements risk hedging through foreign exchange forward contracts and other means.

If personnel possessing advanced skills and capabilities, such as specialized techniques in lens processing, leave the Company, there is a risk of knowledge and know-how leaking outside the Company and delays in development and production. Difficulty in recruiting and developing capable personnel may also adversely affect future business performance. As a countermeasure, the Company is enhancing its personnel systems, including job-based recruitment, a role-grading system, and an internal open recruitment system, while promoting work-life balance, diversity, and health management.

As much of the Company's business activities are conducted outside Japan, the occurrence of adverse political or economic factors, tax system changes, or social disruption due to terrorism, war, natural disasters, epidemics, and the like in the countries and regions where the Company operates could have a significant impact on business performance. As global business expansion continues, exposure to geopolitical risk is increasing. As a countermeasure, the Company continuously monitors global political, social, and economic conditions and strives to identify and analyze their impact on corporate activities.