THE KEIHIN CO., LTD.

Cargo movement may fluctuate due to domestic and overseas economic trends, inventory adjustments, price competition, customers' logistics rationalization, and competition with rival companies, which may affect business performance and other results. In addition, if transactions with major customers or partner companies are suspended or significantly reduced, there is a risk of decreased sales or increased outsourcing costs. The Company seeks to diversify risk by building relationships of trust with major customers and partner companies and by developing new customers.

If a new infectious disease outbreak occurs, disruption to supply chains and reduced cargo movement due to a slump in consumption may affect business performance and other results. As a logistics business supporting social infrastructure, the Company implements infection prevention measures on the premise of business continuity; however, depending on restrictions on activities imposed by the government or local authorities, business activities may be constrained, including the temporary closure of business sites.

Against the backdrop of labor shortages due to the declining birthrate and aging population, the shortage of truck drivers in particular is severe, which may lead to increased personnel expenses and constraints on accepting orders. Since 2024, the cap on drivers' overtime working hours (the so-called 2024 Problem) has applied, and the risk that securing the necessary human resources will become difficult, constraining business activities, has become apparent. The Company strives to secure and develop human resources through improvements to the workplace environment and treatment, enhancement of training systems, and the utilization of contract employees and part-time workers.

If the logistics facilities owned by the Company in the Tokyo, Yokohama, Nagoya, Osaka, and Kobe areas suffer damage from a disaster exceeding assumptions, this may affect business performance and other results due to the closure of business sites and the incurrence of repair costs, among other factors. Some facilities were built before the current seismic standards were established, and there is a risk that a widespread disaster such as a large-scale earthquake could result in a sharp decline in sales and increased cost burden. The Company seeks to mitigate risk through compliance with various laws and regulations, regular maintenance inspections, employee training, and insurance coverage, but there is no guarantee that losses will be fully compensated.

If the market value of owned business-use assets (land, buildings, etc.) declines significantly, if sufficient cash flow from such assets can no longer be expected, or if the market value of held securities declines significantly compared to the acquisition price, losses associated with impairment processing may occur, which may affect business performance and other results. The Company seeks to mitigate this risk by appropriately monitoring the utilization status and profitability of business-use assets, identifying signs of impairment at an early stage, and formulating measures to improve profitability.

Deferred tax assets are recognized to the extent that future taxable income is highly likely to be generated; however, if the timing or amount of taxable income differs from estimates due to changes in future economic conditions, this may affect business performance and other results. Although the timing and amount of taxable income are reasonably estimated, uncertainty cannot be entirely eliminated.

The Company is subject to various public regulations in its business fields both domestically and overseas, and failure to comply with such regulations and laws may restrict business continuity and thereby affect business performance and other results. In addition, if regulations are tightened or new legal regulations are implemented, there is a risk that business opportunities may shrink or response costs may increase. The Company addresses this through the formulation of the

The information利 Not Being Fully Realized. It is not possible to eliminate uncertainty completely.

The Company deploys logistics businesses, including international freight forwarding, in Singapore, the Philippines, Hong Kong, Taiwan, and other regions. Unexpected changes in laws, regulations, or policies, sudden political or economic upheaval, or social unrest such as war, terrorism, or infectious disease outbreaks may cause supply chain disruptions and a decline in cargo movement, which may affect business performance and other results. The Company conducts appropriate risk management, including monitoring, centered on the department overseeing overseas subsidiaries, and strives to strengthen governance through the implementation of risk assessments.

In the International Logistics Business, the Company conducts many transactions denominated in foreign currencies, including the US dollar, and fluctuations in exchange rates may affect business performance and other results. In addition, revenues, expenses, assets, and liabilities denominated in local currencies or foreign currencies in the countries and regions where the Company operates overseas are translated into yen when preparing the consolidated financial statements, so there is a risk that fluctuations in exchange rates at the time of translation may affect the value after conversion into yen.