FUSHIKI KAIRIKU UNSO CO.,LTD.

The Group operates numerous labor-intensive businesses, making the securing, development, and retention of human resources essential to business operations. While the Group continues to promote the ongoing recruitment and appropriate deployment of talented personnel as well as the improvement of working environments, failure to achieve these objectives could slow future growth and adversely affect business performance.

The Group conducts vehicle-based business operations centered on its delivery business, and if a serious traffic accident were to occur, there are concerns that business performance could deteriorate due to a decline in social credibility. Furthermore, administrative penalties such as suspension of vehicle use may be imposed, and if this leads to a suspension or discontinuation of operations, it could have a material adverse effect on business performance. Although the Group prioritizes safety measures above all else, it is difficult to completely eliminate this risk.

A Group company operates golf courses, and while performance has remained stable to date, the market environment nationwide is extremely challenging. Price-cutting competition has been observed among golf courses within the prefecture, and if negative factors such as a decline in the number of users or a drop in per-customer spending intensify going forward, this could adversely affect the business performance and financial condition of the Group as a whole.

The transportation business consumes large quantities of fuel, and depending on crude oil price trends, fuel costs could rise sharply, leading to increased transportation costs. If the Group is unable to appropriately pass on such cost increases through pricing, this could adversely affect the Group's business performance. Since crude oil prices are subject to external factors, this is a risk that is difficult for the Group to control on its own.

The Group holds numerous fixed assets for business operations, and impairment accounting may be applied in the event of a significant decline in market value or when future cash flows are not expected to be recoverable. If impairment accounting is implemented, this could affect the Group's financial condition and operating results. Business-use assets such as those related to transportation and golf course operations may in particular be subject to such treatment.