The GLORY Group is exposed to various risks that have the potential to affect its operating results and financial condition, including variable factors and other matters considered to be material. These risks and additional factors are presented below.
The forward-looking statements made below are based on judgments made by the GLORY Group as of March 31, 2010.
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1 Extraordinary Fluctuations in Operating Results and the Group's Financial Condition due to Special Factors Influencing the Market Environment
The GLORY Group is subject to business authorizations, import and export regulations as well as various laws and regulations in the countries and regions where the Group operates. Should these laws and regulations be revised or repealed, or if new public regulations were to be established, or if any other special factors influencing the market environment were to arise, the performance of the GLORY Group may be adversely affected.
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2 High Level of Reliance on a Specific Industry Sector
The composition of the GLORY Group's sales is highly dependent on the financial markets. Should it become necessary for financial institutions to cut capital investments due to major operational or financial problems, the performance of the GLORY Group may be adversely affected.
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3 R&D Investment
The GLORY Group is an R&D-based enterprise and continues to invest in R&D aggressively. However, the development of new products always involves certain risks. Depending on the concept, the development period could be longer, and the costs higher, than initially planned. If such circumstances were to occur, the performance of the GLORY Group may be adversely affected.
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4 Intellectual Property Rights
The GLORY Group is not aware of any infringements by its products on the material intellectual property rights of third parties. However, it is difficult for an R&D-based corporate group like ours to completely avoid the occurrence of such intellectual property infringement problems. If such circumstances were to occur, the performance of the GLORY Group may be adversely affected.
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5 Overseas Business Conditions
The GLORY Group's overseas business activities are wide-ranging—including exports of products, overseas procurement, local production overseas and more. Should a rapid change occur in the political and/or economic situation in a country or region where the Group operates, or if foreign exchange markets were to fluctuate beyond the anticipated scope, the performance of the GLORY Group may be adversely affected.
