NIHON ISK CO.,LTD.

Both the Steel Products-Related Business and the Storage Cabinet & Locker-Related Business use steel as their primary raw material, and any increase in procurement prices for steel and other materials could act as a factor squeezing profitability. Since these two businesses are core operations of the Group, fluctuations in raw material costs could have a direct impact on overall business performance. The annual securities report does not disclose specific countermeasures.

The products and goods handled by the Dental-Related Business are directly or indirectly used in dental care, and since the majority of dental care in Japan is provided under health insurance coverage, trends in the medical insurance system affect demand for dental materials. Should the system be changed, it could affect the Group's operating results. The annual securities report does not disclose specific countermeasures.

The Group operates multiple manufacturing and sales sites within Japan, and in the event of a large-scale earthquake, tsunami, or other natural disaster, production and sales activities may be suspended or restricted. Such events could affect business performance and financial condition. The annual securities report does not disclose specific countermeasures.

The Group holds various assets, including real estate, and if their fair value declines significantly and future cash flows fall below book value, impairment accounting would be applied, resulting in the recognition of impairment losses on fixed assets. The recognition of impairment losses could directly affect the Group's business performance. The annual securities report does not disclose specific countermeasures.