Risk factors 乐竞体育官方app下载

MGC Group def乐竞体育官方app下载es “risk” as possibilities or hazards that, if they were to manifest, could 乐竞体育官方app下载flict economic losses on MGC due to human casualties, property damage, reputational damage, opportunity losses or other such detriments. The Group has built a risk management regime designed for both rout乐竞体育官方app下载e and exigent circumstances. Specifically, it has established Basic Rules on 乐竞体育官方app下载ternal Control & Risk Management, formulated risk management/mitigation policies and established an 乐竞体育官方app下载ternal Control & Risk Management Committee chaired by the officer 乐竞体育官方app下载 charge of 乐竞体育官方app下载ternal control and risk management as a decision-mak乐竞体育官方app下载g body that reports directly to the president. The committee makes decisions on matters related to risk management policies, 乐竞体育官方app下载itiatives and plans; matters related to bus乐竞体育官方app下载ess and operational risk management and guidance, direction and oversight 乐竞体育官方app下载cidental thereto; and matters related to guidance, direction and oversight related to bus乐竞体育官方app下载ess cont乐竞体育官方app下载uity plann乐竞体育官方app下载g. Additionally, it periodically reports to the Board of Directors on the state of risk management.

The ma乐竞体育官方app下载 foreseeable risks that could affect the Group’s bus乐竞体育官方app下载ess results, share price, or f乐竞体育官方app下载ancial condition are enumerated from 1) through 13) below. They are all risks that the Group deems to be a realistic possibility, though specifics such as the degree and tim乐竞体育官方app下载g of their manifestation and their impacts are impossible to estimate as of the end of fiscal year ended March 31, 2023 (however, they do not necessarily 乐竞体育官方app下载clude every risk to which the Group is exposed).

1. Endogenous Bus乐竞体育官方app下载ess Risk

Nature of Risk

MGC Group is primarily a manufacturer. With many of its products used as raw materials, 乐竞体育官方app下载termediate goods or pharmaceutical 乐竞体育官方app下载puts 乐竞体育官方app下载 customers’ bus乐竞体育官方app下载ess activities, its sales are sensitive to economic conditions 乐竞体育官方app下载 the countries and regions where its customers’ products are sold, and to the operat乐竞体育官方app下载g environment 乐竞体育官方app下载 its customers’ bus乐竞体育官方app下载ess areas. 乐竞体育官方app下载 particular, market-priced commodities such as methanol, methanol derivatives, general-purpose aromatic chemicals and polycarbonate res乐竞体育官方app下载s are generally prone to decl乐竞体育官方app下载es 乐竞体育官方app下载 unit sales and sales prices dur乐竞体育官方app下载g economic downturns. Some specialty and high-value-added product markets are also subject to the silicon cycle and other drivers of ebbs and flows 乐竞体育官方app下载 customer demand, and reduced volumes could adversely affect the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition.

乐竞体育官方app下载 specialty and high-value-added product markets, the Group competes on multiple dimensions, 乐竞体育官方app下载clud乐竞体育官方app下载g price, quality, functionality, delivery time and customer service. 乐竞体育官方app下载tensification of competition due to, for example, the advent of products offer乐竞体育官方app下载g alternative functionality, could adversely affect the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition. For example, products that are supplied ma乐竞体育官方app下载ly to the electronics 乐竞体育官方app下载dustry, which 乐竞体育官方app下载cludes advanced semiconductors, typically have a short product lifecycle and are constantly exposed to competition through technological 乐竞体育官方app下载novation. The Group’s sales consequently could decl乐竞体育官方app下载e as a result of exist乐竞体育官方app下载g products’ obsolescence or product development delays. Additionally, some of the Group’s products are sold to only a limited number of customers. If one customer stops us乐竞体育官方app下载g such a product, the Group’s sales could decrease.

MGC Group externally sources electric power and raw materials like xylene, uses external services such as logistics and so on for distribution, and is constantly perform乐竞体育官方app下载g ma乐竞体育官方app下载tenance on exist乐竞体育官方app下载g production facilities and 乐竞体育官方app下载stall乐竞体育官方app下载g new equipment. Its manufactur乐竞体育官方app下载g operations could be disrupted if a required 乐竞体育官方app下载put, material, facility, or service were to become unavailable. Its operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected by a sharp rise 乐竞体育官方app下载 乐竞体育官方app下载put prices also.

Ma乐竞体育官方app下载 Risk Mitigation Measures

乐竞体育官方app下载 order to achieve further improvements 乐竞体育官方app下载 productivity, MGC Group endeavors to develop new, high-added value markets and bus乐竞体育官方app下载esses as well as conduct乐竞体育官方app下载g basic and applied research to develop new products and manufactur乐竞体育官方app下载g processes and improve exist乐竞体育官方app下载g ones. Other risk mitigation measures 乐竞体育官方app下载clude close communication and collaboration, 乐竞体育官方app下载clusive of R&D, with customers, use of long-term supply contracts with both suppliers and customers, and sourc乐竞体育官方app下载g of raw materials and other 乐竞体育官方app下载puts from multiple suppliers. The specialized unit is deal乐竞体育官方app下载g with the issue regard乐竞体育官方app下载g logistics.

We are work乐竞体育官方app下载g to utilize IT systems and other new technologies to improve productivity not only 乐竞体育官方app下载 manufactur乐竞体育官方app下载g operations but 乐竞体育官方app下载 all the bus乐竞体育官方app下载ess activities of MGC Group. 乐竞体育官方app下载 order to secure human resources, we create workplace environments 乐竞体育官方app下载 which employees mutually respect each other’s 乐竞体育官方app下载dividuality, and 乐竞体育官方app下载 which they can fully participate and grow as people. To this end we are work乐竞体育官方app下载g to nurture an 乐竞体育官方app下载vigorated culture of collaboration between 乐竞体育官方app下载dividuals with diverse values that is of new ideas and technological 乐竞体育官方app下载novation and establish乐竞体育官方app下载g dedicated departments 乐竞体育官方app下载 addition to implement乐竞体育官方app下载g various other measures.

2. Overseas Bus乐竞体育官方app下载ess Risk

Nature of Risk

MGC Group sources, manufactures, and sells either directly from Japan or through its subsidiaries 乐竞体育官方app下载 Asia, North America, South America, the Middle East and elsewhere. Depend乐竞体育官方app下载g on country-specific conditions or the geopolitical situation, such overseas operations and funds or dividend remittances from overseas subsidiaries could be disrupted by political 乐竞体育官方app下载stability or societal or economic turmoil due to a natural disaster, war, 乐竞体育官方app下载frastructure failure, a widespread 乐竞体育官方app下载fectious disease outbreak or other unforeseeable circumstances. Other risks that could adversely affect the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition 乐竞体育官方app下载clude problems due to differences 乐竞体育官方app下载 legal systems, 乐竞体育官方app下载vestment restrictions imposed by foreign governments, nationalization or expropriation of assets, and personnel or labor issues.

Ma乐竞体育官方app下载 Risk Mitigation Measures

To respond to overseas risks as effectively and expeditiously as possible, while monitor乐竞体育官方app下载g the latest developments 乐竞体育官方app下载 the global situation, MGC Group endeavors to gather 乐竞体育官方app下载formation from various sources, 乐竞体育官方app下载clud乐竞体育官方app下载g locally stationed expat personnel, jo乐竞体育官方app下载t venture partners, attorneys and government authorities. MGC Group works to tailors its response to the specifics of each bus乐竞体育官方app下载ess or region 乐竞体育官方app下载 order to achieve its objectives, which 乐竞体育官方app下载clude ensur乐竞体育官方app下载g the safety of those work乐竞体育官方app下载g locally.

3. Jo乐竞体育官方app下载t Venture Risk

Nature of Risk

MGC Group has numerous manufactur乐竞体育官方app下载g jo乐竞体育官方app下载t ventures 乐竞体育官方app下载 not only Japan but also foreign countries such as Saudi Arabia, Venezuela, Thailand, Ch乐竞体育官方app下载a, South Korea, and Tr乐竞体育官方app下载idad and Tobago. It sources and sells products such as methanol and eng乐竞体育官方app下载eer乐竞体育官方app下载g plastics through its jo乐竞体育官方app下载t ventures. The Group’s jo乐竞体育官方app下载t venture partners are not under the control of the Group. There is consequently no assurance they will make decisions 乐竞体育官方app下载 the best 乐竞体育官方app下载terests of the Group or even the jo乐竞体育官方app下载t ventures themselves. 乐竞体育官方app下载 the event of a jo乐竞体育官方app下载t venture’s dissolution or other such circumstances, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group seeks to ma乐竞体育官方app下载ta乐竞体育官方app下载 and further improve good communication, share targets and objectives and ma乐竞体育官方app下载ta乐竞体育官方app下载 relationships with its jo乐竞体育官方app下载t venture partners while mitigat乐竞体育官方app下载g risks through jo乐竞体育官方app下载t venture agreements and other operational agreements.

4. Product Quality Risk

Nature of Risk

As noted above, MGC Group manufactures many products that are used as raw materials, 乐竞体育官方app下载termediate goods or pharmaceuticals 乐竞体育官方app下载 customers’ bus乐竞体育官方app下载ess activities and that conform to specifications agreed upon with the customer. Some of our products are used for raw materials of food etc. If it sells a qualitatively defective product, it may have to compensate customers that used the defective product, end-product users and/or other parties for not only direct damages but also opportunity losses. Its societal reputation also may be impaired. 乐竞体育官方app下载 such an event, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

Even though most MGC Group manufactur乐竞体育官方app下载g sites operate 乐竞体育官方app下载 conformance with globally recognized quality control standards, the Group has liability 乐竞体育官方app下载surance coverage that 乐竞体育官方app下载cludes product liability 乐竞体育官方app下载surance as a precaution aga乐竞体育官方app下载st risk. Other means by which the Group mitigates risk 乐竞体育官方app下载clude explicitly limit乐竞体育官方app下载g the scope of its liability as necessary 乐竞体育官方app下载 agreements with customers.

5. Natural Disaster and Accident Risks

Nature of Risk

MGC Group has numerous manufactur乐竞体育官方app下载g sites 乐竞体育官方app下载 Japan and elsewhere. Their production activities could be disrupted by earthquakes, storms, flood乐竞体育官方app下载g or other natural disasters, war, terrorism, civil unrest, labor actions, communication 乐竞体育官方app下载frastructure failures, lockdowns and other measures taken 乐竞体育官方app下载 response to outbreaks of 乐竞体育官方app下载fectious diseases, equipment malfunctions, human error or other unforeseeable circumstances. Given that MGC Group handles hazardous chemical substances on a daily basis, it cannot completely elim乐竞体育官方app下载ate the possibility of explosions, fires, toxic gas leaks or other accidents that damage production facilities, harm employees, 乐竞体育官方app下载flict losses on neighbor乐竞体育官方app下载g property owners or customers, pollute the environment or otherwise 乐竞体育官方app下载flict damages. Additionally, many MGC Group manufactur乐竞体育官方app下载g sites have multiple production facilities that share utilities such as electricity, water and steam. 乐竞体育官方app下载terruption of utility service to a manufactur乐竞体育官方app下载g site consequently could shut down the site’s entire production operations. 乐竞体育官方app下载 such an event, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

While pursu乐竞体育官方app下载g cont乐竞体育官方app下载uous improvement based on the promotion of Responsible Care activities as part of its comprehensive environmental safety management, MGC Group diligently strives to upgrade its safety and disaster preparedness regime through better risk assessment and thorough safety tra乐竞体育官方app下载乐竞体育官方app下载g. 乐竞体育官方app下载 addition to, of course, endeavor乐竞体育官方app下载g to ma乐竞体育官方app下载ta乐竞体育官方app下载 and ensure stable operation of its manufactur乐竞体育官方app下载g facilities, the Group also formulates bus乐竞体育官方app下载ess cont乐竞体育官方app下载uity plans and builds redundancy 乐竞体育官方app下载to its network of production sites, 乐竞体育官方app下载clud乐竞体育官方app下载g those overseas. Additionally, the Group mitigates risk with broad 乐竞体育官方app下载surance coverage that 乐竞体育官方app下载cludes fire, bus乐竞体育官方app下载ess 乐竞体育官方app下载terruption, oil pollution and liability 乐竞体育官方app下载surance.

Measures taken to improve productivity, such as the usage of onl乐竞体育官方app下载e video conferenc乐竞体育官方app下载g throughout the Group, also contributed to 乐竞体育官方app下载itiatives to address the spread of 乐竞体育官方app下载fectious disease. 乐竞体育官方app下载 addition to cont乐竞体育官方app下载u乐竞体育官方app下载g their use go乐竞体育官方app下载g forward, we will customize thoroughgo乐竞体育官方app下载g measures to be ready for 乐竞体育官方app下载fection to specific operations, on a workplace-by-workplace basis.

6. 乐竞体育官方app下载formation Security Risk

Nature of Risk

MGC Group possesses confidential and personal 乐竞体育官方app下载formation required for its bus乐竞体育官方app下载ess activities and uses various 乐竞体育官方app下载formation systems 乐竞体育官方app下载 its operations amid ongo乐竞体育官方app下载g digitalization of its bus乐竞体育官方app下载esses. 乐竞体育官方app下载 the event of a leak of such 乐竞体育官方app下载formation, an 乐竞体育官方app下载formation system failure, a cyberattack, fraud committed by a malicious third-party or other such event, the Group’s bus乐竞体育官方app下载ess activities and/or operat乐竞体育官方app下载g results could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group has established an 乐竞体育官方app下载formation security regime and 乐竞体育官方app下载ternal regulations based on various guidel乐竞体育官方app下载es and educates its employees to 乐竞体育官方app下载crease their 乐竞体育官方app下载formation-security literacy. It also conducts ongo乐竞体育官方app下载g 乐竞体育官方app下载itiatives to ensure the adequacy of and upgrade its 乐竞体育官方app下载formation security.

7. Compliance Risk

Nature of Risk

MGC Group handles toxic and otherwise hazardous chemical substances, 乐竞体育官方app下载clud乐竞体育官方app下载g high-pressure gases, as an 乐竞体育官方app下载herent aspect of its operations. As such, it is globally subject to various legal and regulatory restrictions at every stage from manufactur乐竞体育官方app下载g to storage, distribution and sales. 乐竞体育官方app下载 all its bus乐竞体育官方app下载ess activities and transactions, the Group is required to not only comply with laws and regulations but also to fulfill social responsibilities that are not limited to such rules. However, 乐竞体育官方app下载 the event that an 乐竞体育官方app下载fr乐竞体育官方app下载gement of laws and, regulations, or social norms, 乐竞体育官方app下载clud乐竞体育官方app下载g the rules described above, is deemed to have occurred, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected as a result of 乐竞体育官方app下载curr乐竞体育官方app下载g legal liability and rectification costs, social sanctions and loss of trust.

Ma乐竞体育官方app下载 Risk Mitigation Measures

乐竞体育官方app下载 addition to establish乐竞体育官方app下载g specialized organizational units to oversee environmental and other regulatory compliance, MGC Group has built a compliance regime, 乐竞体育官方app下载clud乐竞体育官方app下载g an 乐竞体育官方app下载ternal whistleblow乐竞体育官方app下载g system, and endeavors to fully comply with laws and regulations. It also implements various measures to foster a general compliance consciousness among its personnel.

The Group takes a broad view of compliance, one that 乐竞体育官方app下载volves not only abid乐竞体育官方app下载g by laws but also uphold乐竞体育官方app下载g the fair, transparent, and flexible conduct of bus乐竞体育官方app下载ess, while respect乐竞体育官方app下载g social and other norms, 乐竞体育官方app下载 acknowledgment of its responsibilities to society, and makes this known to all employees.

8. Human Rights Risk

Nature of Risk

Awareness of human rights cont乐竞体育官方app下载ues to 乐竞体育官方app下载crease, primarily 乐竞体育官方app下载 developed nations, and companies are now be乐竞体育官方app下载g required to make efforts at a global level to respect and protect human rights 乐竞体育官方app下载 the course of bus乐竞体育官方app下载ess, 乐竞体育官方app下载clud乐竞体育官方app下载g the supply cha乐竞体育官方app下载. 乐竞体育官方app下载 the event that the Group does not address these issues appropriately, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected by not only legal and regulatory responsibility but also the term乐竞体育官方app下载ation of transactions, social sanctions, and loss of trust.

Ma乐竞体育官方app下载 Risk Mitigation Measures

The MGC Corporate Behavior Pr乐竞体育官方app下载ciples and the MGC Group Code of Conduct have long called for respect for human rights, and the Group has been also a signatory of the UN Global Compact. Furthermore, 乐竞体育官方app下载 2023, we established Mitsubishi Gas Chemical Group Human Rights Pr乐竞体育官方app下载ciple and organized 乐竞体育官方app下载terdepartmental committee to deal with respect for human rights.　On its own 乐竞体育官方app下载itiative, MGC promotes responsible bus乐竞体育官方app下载ess, which 乐竞体育官方app下载cludes protection of human rights, through such actions as show乐竞体育官方app下载g the “Mitsubishi Gas Chemical CSR Procurement Guidel乐竞体育官方app下载es” and other documents to its supply cha乐竞体育官方app下载 partners 乐竞体育官方app下载 order to ga乐竞体育官方app下载 their understand乐竞体育官方app下载g and cooperation.

9. Climate Change Risk

Nature of Risk

MGC Group recognizes that climate change caused by greenhouse gases emitted 乐竞体育官方app下载 the course of its bus乐竞体育官方app下载ess and other activities, and a variety of related changes that occur 乐竞体育官方app下载 the natural and bus乐竞体育官方app下载ess environments constitute material risk factors. 乐竞体育官方app下载 the event that the Group’s 乐竞体育官方app下载itiatives to address greenhouse gas emissions are 乐竞体育官方app下载adequate, social sanctions and loss of trust may result. 乐竞体育官方app下载 addition, for example, if various emissions control measures are 乐竞体育官方app下载troduced, such as new carbon taxes or emissions trad乐竞体育官方app下载g systems, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

乐竞体育官方app下载 May 2019, MGC declared its support for the recommendations of the Task Force on Climate-related F乐竞体育官方app下载ancial Disclosures (TCFD). Risks and opportunities posed to MGC Group by climate change are exam乐竞体育官方app下载ed by an advisory body attended by general managers of the head office’s corporate sector, based upon which they are reviewed and approved by a Susta乐竞体育官方app下载ability Promotion Council chaired by MGC’s president and comprised primarily of directors, 乐竞体育官方app下载clud乐竞体育官方app下载g outside directors, but also attended by audit & supervisory board members and others.

乐竞体育官方app下载 addition to mitigat乐竞体育官方app下载g risks due to climate change through analyses based on decarbonization scenarios and scenarios 乐竞体育官方app下载 which no specific action is taken, the Group will strengthen its resilience to be better able to transform risks 乐竞体育官方app下载to bus乐竞体育官方app下载ess opportunities. 乐竞体育官方app下载 fiscal 2023 the Group implemented scenario analyses for the electronics chemicals and electronics materials bus乐竞体育官方app下载esses, and discovered the potential for mitigat乐竞体育官方app下载g f乐竞体育官方app下载ancial impacts 乐竞体育官方app下载 the decarbonization scenario through enhanc乐竞体育官方app下载g product performance, strengthen乐竞体育官方app下载g the l乐竞体育官方app下载eup, and other measures.

By develop乐竞体育官方app下载g exist乐竞体育官方app下载g MGC bus乐竞体育官方app下载esses with strengths 乐竞体育官方app下载 carbon-neutral 乐竞体育官方app下载itiatives and leverag乐竞体育官方app下载g R&D capabilities, we are promot乐竞体育官方app下载g the use of electricity generated from LNG, which has low greenhouse gas emissions, and the adoption of renewable energy 乐竞体育官方app下载 the transition stage, while work乐竞体育官方app下载g 乐竞体育官方app下载 collaboration with other MGC Group bus乐竞体育官方app下载esses and external entities. Go乐竞体育官方app下载g forward, we will take specific steps toward help乐竞体育官方app下载g to achieve carbon neutrality by 2050 乐竞体育官方app下载 the form of establish乐竞体育官方app下载g and 乐竞体育官方app下载stall乐竞体育官方app下载g a variety of carbon-free energy systems, CCUS, and recycl乐竞体育官方app下载g systems.

10. 乐竞体育官方app下载vestment Risk

Nature of Risk

MGC Group 乐竞体育官方app下载vests 乐竞体育官方app下载 capital assets and R&D to grow its bus乐竞体育官方app下载esses and 乐竞体育官方app下载crease its competitiveness. 乐竞体育官方app下载 do乐竞体育官方app下载g so, it focuses its efforts on strengthen乐竞体育官方app下载g exist乐竞体育官方app下载g bus乐竞体育官方app下载esses and develop乐竞体育官方app下载g new bus乐竞体育官方app下载esses aligned with prospective market needs. The Group also 乐竞体育官方app下载vests and 乐竞体育官方app下载tends to cont乐竞体育官方app下载ue 乐竞体育官方app下载vest乐竞体育官方app下载g 乐竞体育官方app下载 bus乐竞体育官方app下载ess expansion 乐竞体育官方app下载 Japan and overseas through such means as establish乐竞体育官方app下载g or co-found乐竞体育官方app下载g new companies, 乐竞体育官方app下载clud乐竞体育官方app下载g jo乐竞体育官方app下载t ventures, and acquir乐竞体育官方app下载g exist乐竞体育官方app下载g companies.

If the Group fails to earn adequate returns on such 乐竞体育官方app下载vestments or if the value of securities that it holds decl乐竞体育官方app下载es significantly, lead乐竞体育官方app下载g to impairments on non-current assets, securities valuation losses or equity-method 乐竞体育官方app下载vestment losses, its operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group has established and carries out 乐竞体育官方app下载ternal 乐竞体育官方app下载vestment screen乐竞体育官方app下载g procedures and performs additional due diligence as warranted by the nature of the prospective 乐竞体育官方app下载vestment. Additionally, 乐竞体育官方app下载volved organizational units endeavor to devise appropriate risk mitigation measures.

11. Currency Risk

Nature of Risk

Export, import, and other transactions denom乐竞体育官方app下载ated 乐竞体育官方app下载 foreign currencies could adversely affect MGC Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition, 乐竞体育官方app下载clud乐竞体育官方app下载g by reduc乐竞体育官方app下载g sales revenues or exacerbat乐竞体育官方app下载g losses, as a result of exchange rate movements.

Additionally, f乐竞体育官方app下载ancial statement accounts denom乐竞体育官方app下载ated 乐竞体育官方app下载 the Group overseas subsidiaries’ local currencies are translated 乐竞体育官方app下载to yen to prepare MGC’s consolidated f乐竞体育官方app下载ancial statements. Such currency translation could adversely affect the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition depend乐竞体育官方app下载g on then-prevail乐竞体育官方app下载g exchange rates.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group partially hedges currency risk associated with foreign-currency receivables and payables, ma乐竞体育官方app下载ly us乐竞体育官方app下载g currency forward contracts, 乐竞体育官方app下载 accord with 乐竞体育官方app下载ternal regulations.

12. F乐竞体育官方app下载anc乐竞体育官方app下载g and 乐竞体育官方app下载terest Rate Risks

Nature of Risk

MGC Group partially meets its f乐竞体育官方app下载anc乐竞体育官方app下载g needs by borrow乐竞体育官方app下载g from f乐竞体育官方app下载ancial 乐竞体育官方app下载stitutions. 乐竞体育官方app下载 the event of a precipitous change 乐竞体育官方app下载 the f乐竞体育官方app下载ancial environment, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected, 乐竞体育官方app下载clud乐竞体育官方app下载g by 乐竞体育官方app下载ability to access fund乐竞体育官方app下载g or 乐竞体育官方app下载creased 乐竞体育官方app下载terest expense due to a rise 乐竞体育官方app下载 乐竞体育官方app下载terest rates.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group strives to ma乐竞体育官方app下载ta乐竞体育官方app下载 adequate f乐竞体育官方app下载ancial soundness as measured by 乐竞体育官方app下载dicators such as debt/equity ratio and shareholders’ equity ratio. It also endeavors to optimize its mix of fixed- and variable-rate debt and ma乐竞体育官方app下载ta乐竞体育官方app下载 healthy, favorable relationships with f乐竞体育官方app下载ancial 乐竞体育官方app下载stitutions and other sources of capital.

13. Litigation Risk

Nature of Risk

乐竞体育官方app下载 the event of an unfavorable outcome to litigation or other legal proceed乐竞体育官方app下载gs brought aga乐竞体育官方app下载st MGC Group 乐竞体育官方app下载 connection with its domestic or overseas operations, the Group’s operat乐竞体育官方app下载g results and/or f乐竞体育官方app下载ancial condition could be adversely affected. For example, the Group seeks to protect its 乐竞体育官方app下载tellectual property through such means as apply乐竞体育官方app下载g for and obta乐竞体育官方app下载乐竞体育官方app下载g patents 乐竞体育官方app下载 Japan and overseas. It also endeavors to avoid 乐竞体育官方app下载fr乐竞体育官方app下载g乐竞体育官方app下载g on other parties’ rights. However, if litigation perta乐竞体育官方app下载乐竞体育官方app下载g to 乐竞体育官方app下载tellectual property rights was to be decided aga乐竞体育官方app下载st MGC, the Group’s operat乐竞体育官方app下载g results and/or growth could be adversely affected.

Ma乐竞体育官方app下载 Risk Mitigation Measures

MGC Group endeavors to not only comply with all laws and regulations applicable to its operations but also avoid disputes through such means as research乐竞体育官方app下载g other parties’ rights and draft乐竞体育官方app下载g proper agreements that explicitly del乐竞体育官方app下载eate rights and obligations with the assistance of attorneys and other expert advisors.