Kamigumi Co.,Ltd.

Various factors—such as decreased production of fruits, vegetables, and grains due to abnormal weather, import bans caused by new infectious diseases, changes in laws and regulations such as safeguard measures, and social disruption from terrorism or war—may reduce import/export cargo volumes handled and affect business results. The Group handles a wide variety of cargo from around the world and thus considers its dependence on any specific cargo to be low; however, it may be difficult to respond to complex combinations of external factors.

Extensive emission regulations for CO2, nitrogen oxides, and particulate matter, as well as safety regulations, are imposed on the motor carrier business, and these regulations may be further tightened in the future. Although the Group has to date responded to and complied with regulations promptly, additional costs incurred in responding to new regulations may affect business results.

If accidents in work processes or facilities, natural disasters such as major earthquakes, or the spread of infectious diseases such as COVID-19 have a significant impact on major business sites, business results may be affected. The Group continually implements countermeasures and conducts research based on past experience, but there is no guarantee that such impacts can be fully prevented or mitigated.

The Group holds numerous business-use fixed assets such as warehouses and land, and if profitability declines due to changes in the business environment or otherwise, making recovery of the invested amount unlikely, impairment losses may be incurred. The application of impairment accounting poses a risk of materially affecting the Group's financial position and operating results.

The Group holds numerous investment securities for purposes such as maintaining and strengthening business relationships, and if impairment treatment becomes necessary due to a decline in market prices or deterioration in the financial condition of investees, recognition of valuation losses may affect the Group's financial position and operating results. Given the nature of these policy-holding shares, this risk is inherently affected by market conditions.

Retirement benefit expenses and obligations are calculated based on actuarial assumptions such as the discount rate, and if these assumptions change, the impact accumulates and is recognized over future periods. In particular, if the discount rate declines, retirement benefit obligations may increase, affecting the Group's financial position and operating results.