Keikyu Corporation

If the population in areas along the Company's rail lines declines due to the progression of the declining birthrate and aging population, demand for transportation such as railways and buses may decrease, potentially affecting the Group's financial position and business performance. Since the Group's businesses are concentrated along the corridor extending from central Tokyo through Shinagawa, Haneda Airport, Kawasaki, and Yokohama to the Miura Peninsula, regional population trends have a direct impact on business performance.

There is a risk that demand for transportation such as railways and buses may permanently decline due to changes in lifestyle, including the spread of working from home. If the recovery of commuting and school-commuting demand remains limited due to factors such as the entrenchment of hybrid work since the COVID-19 pandemic, this may affect the Group's financial position and business performance.

New access routes to Haneda Airport are under consideration, and if competing routes open, the Group's transportation demand related to Haneda Airport may decrease, potentially affecting its financial position and business performance. Haneda Airport access is one of the Group's major revenue sources, and intensified competition could affect the medium- to long-term revenue structure.

With the Ministry of Land, Infrastructure, Transport and Tourism advancing the Shinagawa Station West Exit infrastructure development project, the phased transfer of the Company's owned land and the partial closure of facilities may occur, which could temporarily affect the financial position and business performance. In addition, if there is a significant decline in demand for real estate leasing or a sharp rise in construction costs, there is a risk that the development plan may need to be revised.

If the number of inbound visitors to Japan declines significantly due to a global economic downturn, changes in the security situation resulting from political and military tensions in Eastern Europe and Russia, or international travel restrictions caused by infectious diseases, this may affect the Group's earnings from transportation (including Haneda Airport access), hotels, commercial facilities, and other businesses.

The Group has made substantial capital investments in various businesses, including the Railway Business, and the balance of interest-bearing debt remains at a high level. If significant fluctuations in market interest rates or a downgrade of the Company's bond ratings occur, increased interest burdens and higher funding costs may affect the Group's financial position and business performance.

The Group consumes large amounts of electricity, diesel fuel, and other resources for ongoing repair work and business operations, and if prices or fuel costs surge or supply shortages occur, the resulting cost increases may affect the Group's financial position and business performance. A sharp rise in labor costs in labor-intensive businesses is also a similar risk factor.

If an unforeseen fire, accident, or malfunction occurs at any of the Group's diverse business facilities, including railways, buses, hotels, department stores, and stores, it could have a serious impact that shakes the very foundation of the Group as a whole. In addition, if hygiene management issues or quality problems occur in businesses handling food and other products, this may also affect the Group's financial position and business performance.

The Group holds large volumes of personal information across its businesses, including the Railway Business and card business, and while it strives for appropriate management, should an information leak or similar problem occur, the resulting loss of trust and legal liability may affect the Group's financial position and business performance.

The Group operates its businesses under strict regulations such as the Railway Business Act, the Road Transportation Act, and various labor laws, and tightening of regulations or changes in social conditions may impose constraints on business expansion or contraction and fare setting, among other matters. In addition, if environmental regulations are further tightened, increased compliance costs may affect the Group's financial position and business performance, and in the Bus Business, there is also a risk of intensified competition due to an increase in new entrants resulting from deregulation.