Yasuda Logistics Corporation

The Group's main business locations are concentrated in the Tokyo metropolitan area, and if a large-scale earthquake or other natural disaster or fire occurs, it may have a significant impact on business continuity. The spread of infectious disease similarly poses a risk of disruption to stable business continuity. The Group has taken measures such as formulating a business continuity plan, holding regular meetings of the disaster prevention committee, implementing seismic resistance measures for facilities, and establishing an in-house fire brigade, but these measures cannot completely prevent damage.

The Logistics Business and Real Estate Business are subject to various legal regulations such as the Warehousing Business Act and the Building Standards Act, and if regulations are strengthened or newly introduced, responding to them may require cost and time. The Group is working to strengthen its compliance framework, but changes in the regulatory environment may affect business performance.

In the Logistics Business, changes in domestic and overseas economic conditions or changes in customers' logistics strategies may cause a decline in utilization rates or an increase in the cost ratio. In the Real Estate Business, changes in land price trends or leasing market conditions pose a risk of a decline in rental rates or an increase in vacancy rates. Both businesses have a structure in which changes in the business environment directly affect performance.

The fixed assets held by the Group are mainly used as Logistics Facility Leasing and rental real estate facilities, and impairment losses may arise if there is a decline in the market value of land and buildings, deterioration in profitability, or deterioration in the office leasing market. Because the scale of fixed assets is large, the impact on business performance in the event of impairment could be correspondingly significant.

The balance of investment securities at the end of the fiscal year under review was ¥76,739 million, and there is a risk that asset value may decline due to poor performance of investee companies or deterioration in securities market conditions. Because the balance held is large, a significant deterioration in market conditions could have a substantial impact on business performance and financial position.

Retirement benefit expenses and obligations are calculated based on assumptions such as the discount rate and the long-term expected rate of return on pension assets, and if actual results diverge from estimated figures, this will affect future expenses and obligations. In particular, if the discount rate declines or investment performance deteriorates, this may adversely affect business performance.

The Group handles personal information in the course of its business, and if an information leak occurs, it may affect business performance due to loss of trust or legal liability. The Group strives for strict management through the establishment and observance of personal information protection policies and related regulations and employee training, but the risk cannot be completely eliminated.

The Group provides services using an integrated logistics information system, and if a temporary system failure occurs due to unauthorized access or other causes, business processing may be delayed, affecting business performance. The Group strives to ensure safety by implementing various information security measures and building a dual-redundant host computer and network system.

The Group conducts logistics operations overseas, including warehousing and International Freight Handling Services, through subsidiaries and other entities, and changes in local laws and regulations, exchange rate fluctuations, deterioration in political and economic factors, and social disruption caused by war, terrorism, epidemics, and other factors may affect business performance. The Group conducts business activities in accordance with local laws, administrative procedures, and business customs, but inherently bears country-specific risks unique to overseas operations.