Risk Management

Toyo Seikan Group 's Risk Management System

Toyo Seikan Group is committed to risk management based on the Group Risk and Crisis Management Regulations.
Risk management for the entire group is monitored through the Group Risk and Compliance Committee and other bodies, and improvements and preventative measures are implemented.
Each group company formulates risk management policies and basic plans under its own promotion system, and compiles information on the risk management status of the entire company.

Important Risks

The major risks that Toyo Seikan Group recognizes as having the potential to have a significant impact on its business performance, finances, and management are as follows:

• Risk of natural disasters, infectious diseases, and accidents
  Business continuity from natural disasters / infectious diseases / occupational accidents and health and safety
• Compliance Risk
  Compliance/Human rights violations and discrimination
• Business and management risks
  Changes in economic conditions / Fluctuations in production costs / Procurement of raw materials / Intensifying price competition / Research and development / Investment and financing (corporate acquisitions, capital participation, capital investment, etc.) / Promotion of digitalization / Credit risk of business partners / Securing and developing human resources / Litigation risk / Overseas business
• Information Security Risk
  Leakage of personal information/Leakage of trade secrets and confidential information/Cyber attacks and virus intrusions
• Financial and accounting risks
  Funding/Changes in accounting standards and tax systems, etc.
• Manufacturing and quality risks
• Environmental Risks
• Country Risk

For details regarding important risks, please refer to the Securities Report for the fiscal year ending March 2026 (PDF, pages 36-41).

Strengthening Risk and Crisis Management Systems

Toyo Seikan Group In order to respond to risks and crisis events surrounding the Group and prevent the occurrence of risks that may affect ongoing business activities, the Company has established the Risk and Crisis Management Committee as an organization to strengthen the risk and crisis management system, the Group Risk and Compliance Committee to oversee risk and crisis management and compliance of the Group across the board, and the Risk and Crisis Management Control Office as the secretariat of the Risk and Crisis Management Control Office. The Risk and Crisis Management Office has been established as the secretariat of the Risk and Crisis Management Committee and the Group Risk and Compliance Committee, which oversees risk and crisis management and compliance across the Group. Both committees share information on social trends and other risk-related issues, check the status of responses to major risks, and implement improvements and preventive measures. In addition, in order to stabilize the management foundation, the Company and its group companies formulate crisis management regulations and crisis response manuals under their respective management systems, compile the status of risk management, and report to the Committee.
In addition, in the event of a crisis, the Company and its group companies have formulated a business continuity plan ("BCP") to minimize damage and restore and continue business activities as quickly as possible, placing the highest priority on respect for human life, and are promoting the strengthening of risk management systems.

Initiatives for FY2025 and activity items for FY2026

In fiscal year 2025, as part of our risk management efforts, we regularly review the risks that each group company currently considers most concerning, as well as their specific action plans and content to address those risks, and monitor the risk management activities of each group company. We are also focusing on disseminating information to raise risk and crisis awareness among our group's officers and employees. Specifically, we are holding overseas safety seminars for our group's officers and employees with external lecturers, and regularly disseminating risk and crisis information (risk information) through our Risk and Crisis Management Office via the group's intranet. Furthermore, to obtain timely information on natural disasters and accidents around our group's locations, we have introduced and are effectively utilizing a disaster and accident information distribution service.

For fiscal year 2026, we plan to focus on the following five key activities as our "Group Risk and Crisis Management Activities":

• Disseminating risk-related information and raising awareness among group companies
• Confirmation of the status of risk management activities at each group company
• Education and training tailored to risk trends
• Identifying the risk owners for major risks.
• Publicizing and properly operating the internal reporting system (consultation desk)

Initiatives of Major Operating Companies

Initiatives for Fiscal Year 2025

BCP implementation

Toyo Seikan

In November, a training exercise was conducted between the Ibaraki Plant and the Crisis Management Headquarters to simulate a fire on the production line at the Ibaraki Plant and practice initial response and coordination in accordance with the Business Continuity Plan (BCP). The details of the disaster and the affected plant were announced on the day of the training, and the training was made more realistic by having the plant and the Crisis Management Headquarters communicate extemporaneously based on conditions presented at different points in time. At the same time, other business locations throughout the country also considered responses to fires at their own plants, verifying the effectiveness of the BCP and confirming the flow from reporting the damage to making decisions for recovery.

Toyo Kohan

In November, we conducted a training exercise at the Kudamatsu plant, simulating a fire and outlining responses after production line shutdowns and actions to take in the event of an emergency. We also reviewed the basic principles of our Business Continuity Plan (BCP) and confirmed the operational structure and the roles of each organization.

Mebius Packaging

Assuming a scenario where all facilities shut down due to a power outage caused by equipment failure, we created a "Disaster and Accident Checklist" for initial response to ensure a swift return to factory operations. We conducted BCP (Business Continuity Plan) training at some factories to confirm its effectiveness.