Investor Relations：Business Risks
Material changes occurring during the vurrent consolidated fiscal year relative to the "Business risks" indicated in the Securities Report of the previous fiscal year(submitted on June 24,2015)are as fllows.
Furthermore, forward-looking matters indicated in this document are judments made by our Group as of the final date of the final date of the current consolidated fiscal year.
- ＜Risks related to entrusted development＞
- Our Group conducts "Third-Party Estimate Appropriateness Reviews" for entrusted development projects more than a certain scale. We also work to standardize project development procedures and conduct project manager development as well as other initiatives as part of our ongoing efforts to improve project quality and strengthen our project management system.
- However, entrusted development projects, even those projected to earn appropriate profits at the time of acceptance, carry a risk ofimpacting Group earnings and our financial status due to factors such as project management problems that occur during the development phase, unanticipated expansions of development scope, or unexpected increases in task steps.
- ＜Riskes related to financing＞
- The syndicated term loan agreements with a commitment period executed by our Group includes financing restrictions. Any breach of these restrictions and subsequent claim from a lender will result in the acceleration of payment deadlines, requiring the lump-sum repayment of relevant olan amounts.
- Therefore, such loan agreements could potentially impact our Group financial status and ability to cash schedule financing.
- Regarding future financing, in the event of an unstable financial market environment or a decline in our Group credit rating, there is a possibility that we will be unable to conduct financing as planned, which could impact our Group's business develop,emt, earnings, and financial status.