Risks in Business, etc.

  1. 1.
    Changes in raw material prices

    Nichiban group's products are made of petroleum such as plastic films, and there are many raw materials such as natural rubber that are affected by the market conditions. This could have a negative impact on the group's business performance and financial position.

  2. 2.
    Price Competition

    The products of our group have a long product life and aren't influenced by fads, but they are generally used as consumables. This could have a negative effect on the group's business performance and financial position.

  3. 3.
    Product Quality

    The group formulates a “quality policy” based on the corporate philosophy, and under the management centered on the quality management system, plans, and manufactures products for the pharmaceutical, industrial materials, stationery and office supplies industries. However, if a serious quality problem arises due to an unexpected situation and the reputation of the product or the entire group's products deteriorates, the group's business performance and financial position will be adversely affected.

  4. 4.
    Environment Issues

    The group has formulated an “environmental policy” based on its corporate philosophy and is actively promoting environmental protection activities centered on environmental management systems. If new environmental regulations are strengthened or changed in the future, the cost of handling them will increase, which may adversely affect the group's business performance and financial condition.

  5. 5.
    Outbreak of Accident Disaster

    The group conducts various conservation activities against accidents and disasters at offices such as the headquarters and factories. However, accidents due to sudden fires and explosions, and natural disasters, such as earthquakes and floods, caused significant damage to manufacturing facilities. When this happens, the group's business performance and financial position may be adversely affected.

  6. 6.
    Retirement Benefit Obligation

    The group's retirement benefit costs and obligations could adversely affect the group's business performance and financial condition due to lower market interest rates and a deterioration in the management environment, resulting in lower pension asset management returns.

  7. 7.
    Risks Related to Information Management

    The group holds a lot of important information in addition to personal information. Regarding the handling of this information, we continuously educate our employees about the importance of information management and implement security measures on the system. However, if information leaks occur due to system failures and disasters, it may adversely affect the group's business performance and financial condition.

  8. 8.
    Others

    Changes in exchange rates, intellectual property disputes, and changes in accounting and tax systems could adversely affect the group's business performance and financial position.

This risk information is based on the judgment as of the end of the current consolidated fiscal year, and does not cover all of the business risks of the Group.

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