TOMITA CO.,LTD.

The Group has a high proportion of Machine Tools handling, and its user base is concentrated in the machinery industry, so business performance tends to be significantly affected by trends in corporate capital expenditure driven by economic fluctuations. If an unexpected economic downturn occurs, it may directly impact sales and profits. As a countermeasure, the Group takes flexible measures across all areas of users, products, and sales methods to mitigate the degree of impact from industry fluctuations.

Overseas sales account for 44.1% of consolidated net sales, and foreign exchange fluctuations affect sales and procurement costs in foreign-currency-denominated import and export transactions with North America, Asia, Europe, and other regions. In addition, translation differences arising when converting the foreign-currency-denominated financial statements of overseas local subsidiaries into yen may also affect the financial position and business results. Although risk hedging is implemented through derivative transactions such as forward exchange contracts, there remains a risk that the Group may not be able to fully respond to fluctuations exceeding expectations.

The Group is actively expanding overseas, primarily in North America, Asia, and Europe, but business activities may be restricted due to political changes or unforeseeable amendments to laws and regulations in each country. If sudden policy changes or economic fluctuations occur, there is a risk of impact on the financial position and business results. As a countermeasure, the Group is working to strengthen the management systems and information-gathering capabilities of its overseas local subsidiaries.

Since the Group conducts business both domestically and internationally, natural disasters or the spread of infectious diseases may cause business suspension or disruption of the supply chain. The occurrence of disasters or infectious diseases beyond expectations poses a risk of impact on the financial position and business results. The Group is working to minimize the impact on business activities through measures such as the formulation of business continuity plans (BCP).