Business Risks

Following are the items that might give important effect to the decisions of the investors from the items concerning the contents of H-ONE business, consolidated statement, simple statement, etc.

Sales Destination with High Dependencies

H-ONE group is manufacturing mainly the automobile framework, and sell them to multiple automobile manufactures and other clients. Out of our clientss, largest is the Honda group (Honda Motors Co., Ltd and its subsidiaries and related companies), and most of consolidated net sales comes from them. Therefore, performance of H-ONE may be heavily influenced by the orders received from the Honda group.

Business Deployment Overseas

H-ONE group has established local corporations in North America, Republic of China, Thailand, India, and U.K. as manufacturing sites, deploying business activities. Local corporations inherent some business operation risks due to changing of the laws and regulation, and change in politics and economic environments.

Fluctuation in the Exchange Rate

Since H-ONE group is deploying business overseas, business, performance, and financial condition are all subject to the fluctuation in the exchange rate. H-ONE group is hedging the risk of exchange rate fluctuation by performing business through trading companies, but there is always a chance that business and financial condition of H-ONE group may be affected by the sharp change in the exchange rate.

Rising Interest Rate

H-ONE group is financing mostly by borrowing from the finance institutes, so if the interest rate rises significantly higher than envisioned, it may affect the business performance of the H-ONE group. H-ONE group is hedging the risk of rising interest by diversifying the financing methods.

Effect Due to Fluctuation of Material Markets

Most of the cost of the H-ONE group products are made up by the cost of materials. Fluctuation in the market of materials may affect the business performance of the H-ONE group.

Effect from Disasters, War, Strikes, Etc

H-ONE group is performing business domestically and overseas, and those businesses may be affected by the natural disasters, disease, act of war, strike, etc. A delay or stop in purchasing of materials and parts, production, sales of products may occur in the regions where one or more of these incidents occurred. If these delay or stop occur, and will last for long period of time, it may affect the business or financial condition and operating results of H-ONE group.