TORQ Inc.

The Concrete Product-Related Hardware segment is highly dependent on public works, and a reduction in public investment carries the risk of intensifying sales competition and causing price declines. As a result, there is a possibility of adverse effects on business performance, such as a decrease in net sales and a decline in profit margins. The Group states that it will endeavor to avoid the occurrence of this risk and to respond appropriately should it occur, but details of specific countermeasures are not disclosed.

The Group procures products mainly from Asian countries including China, and its procurement prices are directly affected by exchange rate movements. If the yen depreciates, procurement prices may rise, leading to a decline in the gross profit margin and a deterioration in operating income. There is no explicit mention in the securities report of specific hedging measures against foreign exchange risk.

With the expansion of imported product procurement, short-term business trips to Asian countries, mainly China, have increased, raising the risk of infection from communicable diseases or involvement in terrorism and other incidents. Should such events occur, they could hinder the execution of business operations. The Group states that it will continuously pay attention to overseas safety information and implement appropriate management.

In the event of a large-scale natural disaster, restoration costs for business sites and logistics facilities may arise, along with opportunity losses from the interruption of business activities and other unforeseen expenses. These impacts pose a risk of adversely affecting the Group's business performance and financial position. There is no explicit mention in the securities report of specific countermeasures such as a business continuity plan (BCP).