The Odakyu Group has established its groupwide risk management system in accordance with the Odakyu Group Risk Management Policy and carries out initiatives for considering and implementing measures to address risks that have a material impact on the management of the corporation. Among the risks identified through these activities, some examples of risks which may materially impact investment decisions are shown below.
Please note that the forward-looking statements in the text reflect the judgments of the Group based on the information available as of the date of the submission of this report. It is also to be noted that the risks below are not all of the risks facing the Group.
For other risks arising from climate change, refer to Information disclosures pursuant to the TCFD Recommendations.（Japanese Only）

A major earthquake or similar event may directly damage the Group's individual businesses, including injuring people and damaging buildings and equipment. These events may also cause indirect damage, for example, decreasing revenue due to business operations being constrained due to a shortage of electricity or other reasons or a decrease in consumer sentiment. These events can negatively impact the Group's financial results and standing. Some of the Group's business areas are areas where disaster management measures to address a Nankai Trough Earthquake and areas where special measures to facilitate evacuation in the event of a tsunami in association with a Nankai Trough Earthquake are being implemented.
The Group implements various measures to address these risks. They include the formulation of a business continuity plan (BCP), the seismic reinforcement of buildings and equipment, the display of information in Japanese and foreign languages on evacuation sites at some stations, emergency response drills in collaboration with administrative organizations and the provision of disaster stockpiles at all of its stations and related facilities.

Torrential rains, violent winds and other major natural disasters may injure people or damage buildings and equipment, increase expenses due to the repair of damaged areas, constrain business such as the suspension of train services, and decrease revenue due to a decline in consumer sentiment regarding the Group's individual businesses. These events may negatively impact the Group's financial results and standing.
The Group implements different response measures to address these risks. They include a warning system based on the disaster management plan, strict operation regulations, work to protect a range of structures, the installation of precipitation gauges and anemometers and the monitoring of dangerous places using fixed-point observation cameras.

The Group operates rail transport services, bus services, commercial facilities and other services used by a large number of customers. A major spread of any new type of influenza or other infectious disease in the Group's business areas may cause a decline in customers using facilities and the disruption of rail services and other business operations due to many employees becoming infected. This may negatively impact the Group's financial results and standing.
The Group implements various measures to address this risk. They include the formulation of a business continuity plan (BCP), the stockpiling of face masks and alcohol disinfectants and the establishment of an information gathering system.

A major accident or fire arising from human error, malfunctioning equipment, acts of terrorism or other illegal conduct may injure people, interrupt operations, cause the Group to be liable for damages incurred by victims or cause the Group to incur expenses to restore facilities in the Group's individual businesses. Additionally, the impairment of customers' confidence in the Group and the reputation of the Group in society may negatively impact the Group's financial results and standing.
The Group implements various measures to address this risk. They include the formulation of a business continuity plan (BCP), the sharing of examples of risks, the systematic inspection and replacement of equipment and improvement of many different kinds of training to prevent similar incidents from occurring and increase incident-response capabilities.

A defect or flaw discovered in assets owned by the Group or comments about the Group's possible negative impact on health or the surrounding environment may cause the Group to incur expenses, including those for remediation, restoration and compensation. A defect or flaw discovered in any product sold by the Group may cause the Group to incur expenses, including those for remediation and compensation, and impair the public's trust in the Group. This may negatively impact the Group's financial results and standing.
The Group implements different measures to address these risks. They include various inspections of structures pursuant to laws and regulations, hygiene and labeling inspections of products, bacteria tests and audits performed by external parties.

The Group's businesses are heavily dependent on computer systems, communications networks and other information systems. For this reason, the Group carries out measures that are required for the stable operation of systems and networks that are indispensable in its business activities. However, a serious failure of any such system or network due to a computer virus, an obstructive act by a third party, a natural disaster, human error or other reasons may negatively impact the Group's financial results and standing.
The Group implements different measures to address these risk. They include the establishment of the Odakyu Group Basic Policy for Information Security in Information Systems, groupwide efforts to ensure information security in line with this policy, actions to improve its resilience to network failures, the construction of an information security structure and the installation of firewalls to defeat the increasing number of cyberattacks and the sharing of the most up-to-date threat information.

The Group defines compliance as "a stance on and initiatives for observing laws, regulations, internal rules, social norms and equivalents and for sincerely implementing business activities," and it pursues compliance. Conduct that violates this stance may result in the Group losing the trust of society or legal or social sanctions. This may negatively impact the Group's financial results and standing.
The Group implements different measures to address this risk. They include compliance questionnaire surveys, the formulation and implementation of action plans based on the findings of these surveys, the provision of a compliance hotline to detect and respond to problems in their early stages, and improvement of different training courses and seminars. To establish sound relationships with stakeholders, the Group has established the Odakyu Group Human Rights Policy and the Odakyu Group Sustainable Supply Chain Policy. They are the Group's commitments to respecting human rights and constructing a supply chain in consideration of them. The Group takes specific actions in accordance with these policies, including its responses to risks, the provision of training, the dissemination of information and communication with suppliers.

The Group operates a credit card business and possesses confidential information such as customers' information and other personal information in its different businesses. The Group strictly controls confidential information. Should information leak or a similar event happen for some reason, the Group may have to compensate people for damages, it may impair society's trust of the Group, and there may be other negative consequences for the Group. This may negatively impact the Group's financial results and standing.
The Group implements various measures to address this risk. They include the formulation of a business continuity plan (BCP), the preparation of regulations and manuals related to information, security measures, regular training and support for the acquisition of qualifications.

The inappropriate disclosure of information due to human error or other reasons may cause the impairment of customers' trust and social reputation. They may negatively impact the Group's financial results and standing.
The Group endeavors to establish and implement internal control suited to the characteristics of individual businesses to disclose information in a timely and proper manner.

Many of the Group's businesses are labor-intensive and it is important to secure high quality human resources as a labor force. The Group therefore strives to secure and develop competent personnel, provide a worker-friendly environment and maintain a sound working environment. However, a failure to do so may restrict the Group's business operations. It may negatively impact the Group's financial results and standing.
The Group implements different measures to address this risk. They include the construction a recruitment website, the recruitment of employees mid-career and other different recruitment methods, compliance with the labor-management agreement regarding overtime work and work on days off under Article 36 of the Labor Standards Act, improvement of employee treatment, improvement of employee welfare and the systematization and revision of operations to increase their efficiency.

The Group operates many different businesses pursuant to the Railway Business Act, the Road Transportation Act, the Act on the Measures by Large-Scale Retail Stores for Preservation of Living Environment, the Building Standards Act, exhaust gas regulations and other laws and regulations. A change in any of the laws, regulations and rules, especially in the different systems in the Tokyo Metropolis and Kanagawa Prefecture, may negatively impact the Group's financial results and standing.
The fare system in the railway business is as described below.
Under Article 16 of the Railway Business Act, a railway transportation business operator must set forth an upper limits for the fares passengers pay and obtain the approval of the Minister of Land, Infrastructure, Transport and Tourism. The same applies when the operator intends to change its fares.
The same act stipulates that the railway transportation business operator may determine or change its fares, limited express fees, and other fees within the approved upper limits by submitting a prior notification.
The Group implement different measures to properly and swiftly respond to the revision of laws and regulations, such as the regular sharing of information about the revision of laws and regulations and the enhancement of different training programs and seminars designed to address the revision of laws and regulations.

The Group continually invests capital mainly in its railway business and procures funds through borrowings, bonds and other means. Therefore, changes in interest rates or the rating of the Company may negatively impact the Group's financial results and standing.
The Group endeavors to maintain a high ratio of interest-bearing debt with long-term fixed interest rates to total interest-bearing debt to prevent any significant increases in the interest it must repay in the event of a major change in interest rates.

There have been no important lawsuits the Company has been involved in, but it is possible that, in the course of regular operations, an external party may file a lawsuit or other legal action against the Company or a government organization may investigate the Company. The burden of responding to these matters and court rulings or decisions that do not favor the Company may negatively impact the Group's financial results and standing.
The Group implement various measures to avert these risk. They include the formulation and utilization of contract forms, the building of closer relationships with legal advisors and the enhancement of legal training. The goals of these measures are to reduce litigation risks and increase the Group's ability to handle legal affairs.