EIDAI KAKO CO.,LTD.

As the company's core business is the manufacture and sale of Automotive Floor Mats, which are adopted as OEM Genuine Products by major domestic and overseas automobile manufacturers, automobile sales trends directly affect the sales performance of this business. Fluctuations in demand in the automobile market may affect business performance and financial position.

The company supplies plastic products to a wide range of industrial fields, including housing building materials, home appliance components, and semiconductor-related components, but these are susceptible to the consumption trends of end-user individuals. In particular, changes in the supply-demand balance for housing and home appliances may affect business performance and financial position.

Since the main raw materials for the extruded profile products manufactured by the company are petrochemical products, raw material purchase prices are linked to the international crude oil market. If significant price fluctuations occur in the petrochemical products market due to substantial changes in international oil prices, the resulting rise in purchase prices may affect business performance and financial position.

Since products, goods, and raw materials include transactions denominated in foreign currencies, the yen conversion when preparing the consolidated financial statements is affected by exchange rates. For imports into Japan, the company seeks to stabilize foreign-currency-denominated purchase prices through derivative transactions such as forward exchange contracts, but it is impossible to completely avoid the effects of exchange rate fluctuations, which may affect business performance and financial position.

In the current consolidated fiscal year, the sales ratio to Honda Access Co., Ltd. was 18.5%, and the sales ratio to Suzuki Motor Corporation was 17.5%, with the top two companies accounting for approximately 36% of total sales performance. As there are no long-term contracts or capital relationships with these business partners, the continuity and stability of transactions are not guaranteed, and changes in these customers' business policies or transaction policies could have a material impact on business performance and financial position. The company is working to reduce this risk by expanding sales activities to other business partners.