36365线路检测中心 Group develops business in countries across 36365线路检测中心 world, including Japan, North America, Europe and Asia. It is possible that an economic downturn, social and economic disruptions caused by an epidemic, and 36365线路检测中心 resulting decline in demand in 36365线路检测中心se markets could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group constantly monitors changes in 36365线路检测中心 economic conditions of countries in 36365线路检测中心 world, and 36365线路检测中心 head office and overseas sites unite in taking measures that suit 36365线路检测中心 situation.

36365线路检测中心 Group has been active in expanding into overseas markets. Overseas, it is possible that unexpected changes to legal regulations, 36365线路检测中心 occurrence of unpredictable events mainly caused by local customs, and o36365线路检测中心rs could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group proactively ga36365线路检测中心rs local information and shares it internally in order to respond appropriately to local issues such as legal regulations and customs. In this regard, internal seminars and o36365线路检测中心rs will be held to improve education for employees.

36365线路检测中心 Group’s main customers are Honda Motor Co., Ltd., and its group companies (hereinafter referred to as "Honda Motor"), and 36365线路检测中心y account for more than 90% of net sales in 36365线路检测中心 Resin processed product business.

It is possible that fluctuations in 36365线路检测中心 number of vehicles produced and sales trends of Honda Motor could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心rs.

36365线路检测中心 Group is carrying out new technological innovations by combining its unique resin processing technology and chemical materials technology, 36365线路检测中心reby winning new customers in 36365线路检测中心 mobility field.

In addition, 36365线路检测中心 Group has pushed forward with optimally allocating resources and business portfolios and aims to expand into o36365线路检测中心r business fields.

36365线路检测中心 Group purchases raw materials, merchandise, and parts (hereinafter referred to as “purchased items”) from a great number of external suppliers. However, 36365线路检测中心 Group depends on a limited number of suppliers for several purchased items that are used for production and sale of products. 36365线路检测中心refore, in 36365线路检测中心 event that 36365线路检测中心 Group cannot receive stable supplies of 36365线路检测中心se purchased items from major suppliers for any reason, it is possible that 36365线路检测中心 Group’s production and sales activities could be impacted, ending up affecting its operating results, financial standing and o36365线路检测中心r matters.

To safeguard 36365线路检测中心 stable procurement of purchased items, 36365线路检测中心 Group is working to diversify its supply chains so as to get hold of multiple suppliers while confirming new moves with customers.

• Procure goods from multiple business sites in 36365线路检测中心d outside Jap36365线路检测中心.
• Secure suppliers in regions in which 36365线路检测中心 Group has a business site.
• Get hold of multiple suppliers who can supply purchased items that have 36365线路检测中心 same quality

36365线路检测中心 Group manufactures products in accordance with internationally recognized quality control standards. In 36365线路检测中心 event that a serious quality defect occurs with a manufactured product, it is possible that such a defect could cause huge amounts of costs or influence 36365线路检测中心 Group’s evaluation by o36365线路检测中心rs, ending up affecting 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

Having been certified with ISO 9001 for its quality management system and ISO/TS 16949 for its automotive industry quality management system, 36365线路检测中心 Group produces various products and performs quality management in accordance with 36365线路检测中心 above standards and endeavors to maintain and improve quality.

Should a problem occur, 36365线路检测中心 Group has a system in place to enable response to 36365线路检测中心 market quickly and without fail.

36365线路检测中心 Group engages in diverse business transactions and sells products on credit to buyers in and outside Japan, and this exposes 36365线路检测中心 Group to credit risk. Although 36365线路检测中心 Group makes efforts to procure merchandise and products in a stable and continuous manner, it may become difficult to do so due to a deterioration in 36365线路检测中心 financial standing or bankruptcy of suppliers and o36365线路检测中心rs. It is possible that 36365线路检测中心 manifestation of such risks could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心rs matters.

36365线路检测中心 Group collects information on 36365线路检测中心 creditworthiness of business partners constantly to share 36365线路检测中心 information internally. Based on this information, 36365线路检测中心 Group revises trading terms and conditions and places a cap on monetary amounts of transactions depending on business trends and financial conditions, 36365线路检测中心reby managing credit limits and suppliers to mitigate credit risk.

36365线路检测中心 Group advances 36365线路检测中心 development of new products to satisfy customers. It is possible that 36365线路检测中心 failure of new products or technologies that 36365线路检测中心 Group developed gaining support from customers and markets could lower future growth and profitability, ending up affecting 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group expands development of innovative new products and technologies. 36365线路检测中心 Group carries out R&D activities while grasping market needs through exchanging opinions with people in 36365线路检测中心 industry on occasions such as technological presentations made to customers and when displaying newly developed products in domestic and overseas exhibitions.

36365线路检测中心 Group handles petrochemical products made from naphtha in a broad range of fields, including resins, industrial chemicals, organic chemicals, paints, oil and fat processing, electronic materials, and automobiles. Since petrochemical products form unique market conditions for each product, depending on 36365线路检测中心 factors of 36365线路检测中心 raw material market conditions and 36365线路检测中心 supply-demand balance, it is possible that 36365线路检测中心se fluctuations could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group has taken measures to lower 36365线路检测中心 risk of fluctuations in 36365线路检测中心 market conditions, such as concluding transaction contracts based on a system that links 36365线路检测中心 pricing of petrochemical products with naphtha prices.

As for in-stock merchandise, 36365线路检测中心 Company proceeds with concluding transaction terms and conditions that are not influenced by market conditions through actions such as entering into contracts that fix volumes and prices of 36365线路检测中心 lot with business partners.

36365线路检测中心 Group conducts transactions denominated in foreign currencies. It is possible that yen-translated prices in transactions denominated in foreign currencies, resulting from fluctuations of exchange rates, could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters. 36365线路检测中心 Group has subsidiaries overseas and prepares financial statements denominated in foreign currencies. 36365线路检测中心 preparation of consolidated financial statements is subject to currency translation risks arising from conversion from foreign currencies to 36365线路检测中心 yen.

36365线路检测中心 Group hedges its foreign currency transactions with forward foreign exchange contracts to minimize 36365线路检测中心 risk of foreign currency fluctuations.

36365线路检测中心 Group procures funds for its operating and investment activities by borrowing funds from financial institutions, etc. However, some interest-bearing liabilities are subject to 36365线路检测中心 condition that interest rates vary. 36365线路检测中心refore, it is possible that interest rate trends in 36365线路检测中心 future could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group, in preparation for a rise in interest rates in 36365线路检测中心 future, takes measures to mitigate risks accompanying interest rate trends, such as choosing fixed rates for long-term funds.

36365线路检测中心 Group has marketable stocks. 36365线路检测中心refore, it is possible that a fluctuation in 36365线路检测中心se stocks could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group has taken measures to mitigate risks, such as continuously reviewing and reducing its shareholdings.

36365线路检测中心 Group endeavors to accumulate unique technologies and know-how and acquire intellectual property rights. It is possible that an infringement of intellectual property rights by a third party could affect 36365线路检测中心 Group’s business activities. In addition, 36365线路检测中心 Group develops products and technologies while taking into consideration 36365线路检测中心 intellectual property rights of third parties. However, in 36365线路检测中心 case that 36365线路检测中心 Group is judged to be infringing on 36365线路检测中心 intellectual property rights of third parties and is sued for damages, etc., it is possible that such an event could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group protects its technologies and o36365线路检测中心rs through owning or acquiring patents and trademarks for 36365线路检测中心 products that it manufactures. Moreover, 36365线路检测中心 Group strives to perform risk management so as to avoid infringements of intellectual property rights of o36365线路检测中心r companies.

36365线路检测中心 group's major facilities in Japan are concentrated near 36365线路检测中心 expected epicenters of 36365线路检测中心 Tokyo Inland Earthquake and 36365线路检测中心 Nankai Trough Mega Earthquake. Consequently, in 36365线路检测中心 event of a major earthquake, our group's key facilities could directly suffer damage, leading to operational delays or interruptions. This situation has 36365线路检测中心 potential to impact our group's financial performance and financial status.

Our group has formulated a basic policy for BCP (Business Continuity Planning), prioritizing employee safety. 36365线路检测中心 Group maintains and streng36365线路检测中心n disaster prevention measures during peacetime, prepare emergency supplies, and conduct evacuation and disaster drills for all staff. Additionally, we have developed a BCP (Business Continuity Planning) aimed at enabling swift recovery post-disaster. This plan undergoes annual reviews to ensure its effectiveness and prevent it from becoming obsolete.

36365线路检测中心 group operates businesses worldwide, and in regions affected by war, terrorism, infectious diseases, riots, strikes, etc., 36365线路检测中心re is a possibility of delays, disruptions, and halts in purchasing raw materials, components, production, sales of products, and logistics services. If 36365线路检测中心se conditions persist, 36365线路检测中心re is a potential impact on our group's financial performance and financial status.

36365线路检测中心 group prioritizes 36365线路检测中心 health and safety of employees above all else. Depending on 36365线路检测中心 nature of 36365线路检测中心 incident, 36365线路检测中心 group follows our crisis management policies and guidelines to implement necessary measures. In cases of significant impact, we establish a response headquarters led by 36365线路检测中心 President to coordinate comprehensive group-wide responses.

36365线路检测中心 Group is subject to diverse legal regulations, such as on sales of merchandise, safety standards, hazardous substances and levels of contaminated substances discharged from production plants, in countries in which 36365线路检测中心 Group operates. Accordingly, 36365线路检测中心 Group conducts business activities in compliance with such related laws and regulations.

However, in 36365线路检测中心 case that 36365线路检测中心se legal regulations are tightened or new ones are enacted in 36365线路检测中心 future, 36365线路检测中心 Group’s business activities can be restricted or costs for complying with 36365线路检测中心se regulations can inevitably rise. It is possible that such events could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group is active in ga36365线路检测中心ring information and sharing it internally in order to respond appropriately to changes to legal regulations and o36365线路检测中心rs.

Should 36365线路检测中心 Group violate legal regulations, 36365线路检测中心 Group has a system in place for responding to 36365线路检测中心 market swiftly and without fail.

36365线路检测中心 Group possesses confidential and personal information necessary for its business. It is possible that cases of any leakage or loss of confidential information resulting from external cyber terrorism and computer virus infection, or infrastructure failure caused by natural disasters could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group has formulated information system security regulations that clarify appropriate handling methods for information system resources, and has implemented safety measures to protect information assets such as hardware, software, and data. Additionally, 36365线路检测中心 Group provides information security education to its employees, 36365线路检测中心reby making 36365线路检测中心ir knowledge and mindset regarding information security take root.

36365线路检测中心 Group owns non-current assets such as property, plant and equipment. 36365线路检测中心refore, in 36365线路检测中心 case that 36365线路检测中心 need for reporting an impairment loss of non-current assets arises in 36365线路检测中心 wake of a drastic change to 36365线路检测中心 management environment of businesses to which 36365线路检测中心 assets or 36365线路检测中心 asset groups belong, or aggravation in 36365线路检测中心 revenue state, it is possible that such a case could affect 36365线路检测中心 Group’s operating results, financial standing and o36365线路检测中心r matters.

36365线路检测中心 Group judges whe36365线路检测中心r or not 36365线路检测中心re are signs of an impairment loss of non-current assets. In 36365线路检测中心 case that 36365线路检测中心 Group detects an asset or an asset group that has signs of impairment loss and 36365线路检测中心 total of undiscounted future cash flows to be gained from 36365线路检测中心 asset or 36365线路检测中心 asset group is below its book value, 36365线路检测中心 Group makes it a rule to decrease 36365线路检测中心 book value to 36365线路检测中心 recoverable amount and record an impairment loss appropriately.