Keisei Electric Railway Co., Ltd.

Since the Group concentrates its business operations in the eastern part of Tokyo and the northwestern part of Chiba Prefecture, the occurrence of natural disasters such as major earthquakes, typhoons, or heavy snowfall, or the spread of infectious diseases, could cause harm to customers and employees, damage to fixed assets and inventory, a decline in revenue due to reduced consumer spending, and an increase in recovery costs. During an infectious disease outbreak, demand could also decline due to voluntary restraint from going out, and new management costs could arise from establishing infection prevention measures. In the Annual Securities Report, this is positioned at the top as a "particularly important risk."

Due to the progression of Japan's declining birthrate and aging population, a long-term decrease in the working-age population is expected, and the Group's business areas, although lagging behind the national average, are also affected by population decline and structural changes. In addition to a decline in demand for products and services, there are concerns about decreased revenue and increased management costs due to greater difficulty in securing labor and developing human resources. This is classified as a "particularly important risk" in the Annual Securities Report.

Since Narita International Airport is located within the Group's business area and the Group has a relatively high degree of dependence on operating revenue related to airport users, a significant decrease in airport users due to overseas terrorism, international conflicts, infectious disease outbreaks, etc., poses a risk that directly impacts revenue. In addition, sharp increases in crude oil and raw material prices due to market and foreign exchange rate trends lead to higher electricity costs and increased procurement costs for products and raw materials. This is positioned as a "particularly important risk" in the Annual Securities Report.

The Group is subject to legal regulations such as the Railway Business Act and the Road Transportation Act, and the establishment of new regulations or significant changes to applicable standards could restrict business activities and increase response costs. Defects in constructed and sold properties, serious accidents involving handled products, and serious liability accidents in the transportation business could also affect business results. Material deficiencies in internal controls or inappropriate responses to antisocial forces also pose a risk of loss of social trust.

If a serious failure occurs in information systems such as those used for settlement processing, train operations, and seat reservation systems due to natural disasters, human error, sabotage, etc., there are concerns about business disruption and a loss of social trust due to delayed disclosure of information. If recovery and improvement take a long time, decreased revenue and increased recovery and improvement costs could affect business results. The risk is heightened by the wide scope of potential impact from failures, as diverse information systems are operated across the entire Group.

The balance of interest-bearing debt at the end of the consolidated fiscal year under review reached ¥400,100 million (¥400.1 billion), and the Company intends to continue efforts to control interest-bearing debt going forward. While the Company seeks to mitigate fluctuation risk by shifting to fixed interest rates wherever possible, if interest rates fluctuate significantly in the future, business results could be affected by increased financial expenses and other factors.

The Group holds confidential information such as personal data in each of its businesses, and strives to strengthen its management framework through the establishment of an "Information Security Policy," a "Personal Information Protection Policy," and "Insider Trading Prevention Regulations," as well as through awareness-raising activities and the development of manuals for officers and employees. If confidential information is leaked externally due to an unforeseen accident or otherwise, business results could be affected by claims for damages and a loss of social trust.

If the functional enhancement of Haneda Airport progresses further, passenger demand at Narita International Airport could relatively decline, potentially reducing transportation revenue for the Group, whose main routes serve access to Narita Airport. Since the Group has a revenue structure highly dependent on Narita Airport, intensified competition between airports is recognized as a risk that could affect the fundamental basis of its business.

If an unforeseen accident or incident occurs at an important business partner or affiliated company, or if their business conditions deteriorate, this could disrupt the Group's operations. In addition, if the performance of affiliated companies deteriorates, it could affect the business results of the Group as a whole, and this is positioned as a risk requiring monitoring from a group management perspective.

Inappropriate customer response, or failure to disclose information in a timely and appropriate manner, could result in a loss of social trust in the Group. As the Group operates highly public businesses centered on transportation, the quality of its customer response and information disclosure is recognized as a risk factor directly linked to corporate value.