Business Risk Factors

Business Risk Factors

Out of the factors listed in our Securities Registration Statement that relate to the company’s business or financial information, the following are recognized by company managers as major risk factors that could potentially have a significant influence on the financial position, operational performance, and cash flows on a consolidated basis. In order to ensure the proactive disclosure of information to investors, the Securities Registration Statement also lists factors that, while they may not meet the definition of such risk factors, are still deemed to be important matters for investors to consider when making investment decisions.

●Major Risk Factors

Contract manufacturers

Design and development of Socionext Group products

Commercial production of Socionext Group products

Socionext Group management targets

Assumptions used in business planning

Key customers

Overseas business activities

Economic conditions

Exchange rate fluctuations

Competition

Geopolitical risk

Research and development

Impact of global COVID-19 pandemic

Impact of disasters or other emergencies

Financing

M&A, joint ventures, etc.

Intellectual property rights

Product liability

Human rights protection

Information security

Environment

Regulatory

Litigation

Internal controls & governance

Distributors

Relationship with major shareholders

Security Registration Statement

The Socionext Securities Registration Statement is available to view below. Forward-looking statements contained in the Securities Registration Statement are based on the company’s judgement at the time of submission (end of August 2022).