(1) The Company’s Basic Management Policy

At the Group, our mission is to “contribute to society by creating environments where people can thrive with rich ideas and reliable quality.” We aim to achieve a society where people can thrive.
In 1945, Okamura Seisakusho (Okamura) was founded jointly by engineers who embraced its founding purpose, each providing funds, expertise, and labor. The spirit of the founding members took hold as our corporate culture guided by our Basic Policy, a corporate philosophy composed of Innovative Creation, Cooperation, Being Cost Conscious, Saving for Future, and Social Responsibility. Under the motto of “Quality Pays for Itself,” we have been working to provide society with high quality products and services that precisely address our customers’ needs. This endeavor has become Okamura’s corporate DNA and passed down to the Okamura Group’s present management and business activities.
Okamura Way, our corporate philosophy, comprises Okamura’s Mission (our management approach), the Okamura Declaration (what we want to be), and Okamura Basics (the values we hold dear). At the core of all of these is our perspective “Where people can thrive.”
In today’s changing value system, one in which sustainability is becoming ever more important, the vitality of every individual will lead to solutions to social issues. Based on this belief and our sense of corporate purpose, we at the Okamura Group aim to contribute to the realization of a society in which all people can work and live with vitality and smiles.
We will strive to create new demand and strengthen our management base to respond to change while working to resolve social issues through our businesses.

(2) Corporate management strategies for the medium and long term

We have formulated the Midterm Management Plan 2025, spanning the three years from the fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2026.
Under the Midterm Management Plan 2025, we will accelerate our transformation to demand creating company. In addition to reaping the fruit of our strategic investments under the Midterm Management Plan 2022, we will engage in strengthening the business foundation to enable us to respond to the era to come. Moreover, we will further pursue investment in human resource development and changing mindsets, enhancing employee engagement to support sustainable growth. We aspire to build a “Strong Okamura” by enabling all our employees to work with vitality in their own individual styles.

1) Aims of Midterm Management Plan 2025

• · Creating new demand
  Grasping the flow of the times, accelerate the transformation to a demand creating company by refining our ability to make proposals and products
• · Strengthening our management foundation to respond to change
  “Human resource development and improving employee engagement,” “accelerating the digital transformation,” “enhancement of highmix, variable-volume production system,” and “development of overseas business rooted in the market”
• · Initiatives to address social issues through business
  Continuous initiatives to address social issues through business and steady progress of long term global environmental initiatives toward realizing carbon neutrality by 2050

2) Financial targets (for the fiscal year ending March 31, 2026)

· Net sales:	300.0 billion yen or more
· Operating income:	24.0 billion yen
· Operating income ratio:	8.0 ％
· ROE:	10.0 ％

3) Basic policy on investment and shareholder returns

• · Investment for growth
  We have set aside up to 50.0 billion yen for strategic investment and will implement investments with a good balance between maintaining and enhancing the strengths of existing businesses and developing new markets and businesses
• · Shareholder returns
  We will maintain a stable dividend payout ratio of at least 40%, raising it from the level of the previous Midterm Management Plan
  We will flexibly implement the purchase of treasury stock based on factors such as the status of investment and the external environment

(3) Business environment and issues to be addressed by the Company

1) ESG management

The Okamura Group has set the following four themes for realizing a society where people can thrive: (1) creating environments where people can thrive; (2) pursuing employee engagement; (3) global environmental initiatives; and (4) responsible corporate behavior. Through working on priority tasks set for each theme, we aim to contribute to society and enhance our corporate value in a sustainable manner.

* Work in Life: The idea that “Life is composed of many parts, of which work is one.”

Creating environments where people can thrive
We will continue to take on the challenge of creating new values, markets and trends by providing society with innovative products and services with reliable quality and safety.

• · Promotion of innovation and creation of new value
• · Pursuing quality in product creation
• · Providing safe products and services

Pursuing employee engagement
In addition to making our workplaces both healthier and safer, we respect the diversity of our employees and provide them working environments that promote fulfillment in their work and help them achieve personal growth through cooperation.

• · Promotion of “Work in Life” *
• · Promotion of DE&I
• · Supporting career development and strengthening specialized human resources development

Global environmental initiatives
We will help create a sustainable society by thoroughly considering our impact on the global environment throughout the supply chain of our business activities.

• · Promotion of a circular economy
• · Sustainable use and conservation of natural resources
• · Contributions towards the climate change problem and realizing carbon neutrality

Responsible corporate behavior
As well as conducting corporate activities based on a high standard of ethics, we will disclose information in a timely and appropriate manner to our stakeholders, enhance our communications initiatives, coexist with local communities, and engage in fair, transparent, and honest corporate activities as a global company that is trusted and appreciated by society.

2) Changes in the business environment

We have moved from the COVID-19 pandemic into the post-pandemic era, and major changes are unfolding in society and in people’s attitudes and behavior. In the Office Furniture business, in particular, the nature of the office environment is being reevaluated.
The Okamura Group sees changes in the office environment as the continuation of an established trend. We expect the pace of that change to be further accelerated. As office space and furniture needs shift from the uniformity of the conventional office toward greater diversification, we are working to ensure that we can meet these needs by strengthening our proposal and product development capabilities.

3) Issues to be addressed for each business

Office Furniture business
In the mainstay Office Furniture business, the demand for office refurbishment is forecast to remain strong due to new office concepts with the shift to hybrid working and the digital age.
Under these conditions, we will leverage our proposal capabilities based on the insight we have gained from the results of research into future working styles, one of our strengths, and our extensive delivery record, as well as our product development capabilities to anticipate change and create new demand. In this way, we aim to capture diverse needs, thereby boosting net sales and operating income

Store Displays business
In the Store Displays business, vigorous demand is expected for personnel savings, labor savings, and automated operation amid personnel shortages at stores. Investment in in-store equipment such as refrigerated showcases is also expected to be robust due to energy saving demand arising from environmental concerns and soaring electricity prices.
Under these conditions, we aim to expand net sales by leveraging our strength in display fixtures, refrigerated showcases, and our extensive lineup of other products, as well as our integrated service functions spanning proposals to after sales service and our design, research and development framework for store creation. Moreover, we will endeavor to improve profitability through cost reductions, including the standardization of operations, and the review of selling prices.

Material Handling Systems business
In the Material Handling Systems business, demand from large scale logistics facilities is forecast to remain robust and demand related to personnel savings and labor savings is expected to expand amid a shortage of workers. Orders received are increasing at present, but we anticipate difficult conditions for supply due to factors such as parts procurement difficulties.
Under these conditions, we will engage in proactive proposal activities leveraging AutoStore and our other superior products and work towards thorough cost control to secure stable sales and profits. In addition, we will actively engage in the development of differentiated products, develop products using advanced technologies, enhance our services utilizing digital technologies, and work to strengthen our maintenance systems.

Enhancement of productivity and efficiency
We will enhance productivity and efficiency by adding a new plant building at our Tsukuba Plant and constructing a new plant in Suzaka, Nagano, strengthening our production and supply systems to respond flexibly to changing demand. Through effective capital investment and continuous improvement activities, we will engage in boosting productivity while also ensuring a stable supply. At the same time, we will endeavor to enhance our competitiveness by further strengthening our company-wide efforts to achieve greater employee satisfaction and enhance operational efficiency.

Promotion of Sustainability

(1) Sustainability approach and initiatives

In a society imbued with a new set of values that require the realization of a sustainable society, the Okamura Group recognizes the importance of pursuing business activities centered on sustainability in order to achieve continued growth. In line with our mission — “Contribute to society by creating environments where people can thrive with rich ideas and reliable quality” — we recognize the importance not only of the economic but also of the social and environmental aspects of our business activities, establish the Okamura Group Sustainability Policy and manage our business in a way that fulfills our corporate social responsibility.
*Okamura Group Sustainability Policy
https://www.okamura.co.jp/company/sustainability/policy/sustainability_policies.pdf (in Japanese)

1) Identifying materiality (material management issues) and formulating KPIs and action plans

In order to work as a Group to meet the expectations of our stakeholders and the demands of society, we identified material issues according to the following four themes: (1) creating environments where people can thrive; (2) pursuing employee engagement; (3) global environmental initiatives; and (4) responsible corporate behavior.
In identifying material issues, we integrate various perspectives, including various sustainability-related guidelines, items subject to inspection by evaluating organizations, in-house policies and standards, and internal and external questionnaires and dialogues, and quantitatively and qualitatively analyze their importance for stakeholders and the Okamura Group.
Additionally, in order to consistently implement measures for the identified material issues, we set KPIs and annual targets for each issue that we strive to undertake.

2) Sustainability promotion system (governance system)

The Sustainability Committee is chaired by the Representative Director, and consists of Executive Officers who oversee each business division and corporate department. The Committee promotes and supports initiatives across the Okamura Group, monitors progress, and formulates response policies in accordance with the annual plan on materiality (material management issues).
The Sustainability Promotion Department operates the Sustainability Committee as its secretariat, develops items approved by the Committee into business activities, and regularly conducts follow- ups.
In addition, for company-wide sustainability projects, we follow up on the progress of each business division and spread awareness of our activities among employees.
The results of these activities are regularly reported to the Board of Directors, which manages and supervises the contents of these reports.

3) Risk management

As described in “Business Risks,” we control the Group’s overall risks to a reasonable extent. We organically link risk management with our sustainability promotion activities and promote them systematically to minimize the losses or maximize the opportunities that risks may bring.
The Sustainability Promotion Department, which is the secretariat of the Sustainability Committee established for the purpose of systematically promoting sustainability, also serves as a Risk Management Bureau, and supports and promotes risk management.

4) Climate change initiatives (TCFD)

As an activity to address the global environmental initiatives, which is one of our material issues, we have set science-based greenhouse gas emission reduction targets in order to limit global average temperature increases to within 1.5°C compared with pre-industrial levels, in accordance with the Paris Agreement. This target was given SBT certification in October 2022 by the Science Based Targets initiative (SBTi), an international initiative.
Our Midterm Management Plan 2025, which was announced in May 2023, states that we will continue to address social issues through our business. We will do this by promoting a variety of initiatives.
Positioning our material issue of global environmental initiatives as a business opportunity, the Okamura Group has formulated the concept of “circular design,” based on the concept of a circular economy. We will steadily implement measures to achieve carbon neutrality by 2050 through active promotion of the maximization of resource and product value, minimization of resource consumption, and reduction of generated waste, by creating added value through services and other means while reducing resource input and consumption and effectively utilizing stock.
*Information Disclosure on Climate Change by the Okamura Group
https://www.okamura.co.jp/corporate/sustainability/report/pdf/2023/TCFD_open_230627.pdf (in Japanese)

(2) Human capital approach and initiatives

1) Our approach for nurturing talent (strategy)

Since its founding, Okamura has always regarded its employees as collaborators and team members who work together to make the company prosperous, and has pursued a management style centered on people, based on the company creed of “creativity, cooperation, frugality, savings and service.” In keeping with the founding spirit of the company and upholding the management philosophy of “making people thrive,” based on the following approach, we will further nurture talent and accelerate job engagement reforms to improve employee satisfaction that in turn will support sustainable growth. We aim to become a strong Okamura that can respond to changes in the surrounding environment by enabling each and every employee to thrive in his or her work.

• · Increase corporate value by creating an environment where each and every employee can thrive and achieve WiL-BE*, thereby enhancing engagement and maximizing results.
• · Build a human capital portfolio needed to realize management strategies, and promote the growth and career development of each employee through the human capital cycle of recruitment, development, evaluation, treatment, and appointment.
• · Achieve management targets by building an organization and allocating human resources in a way that allows for maximized performance across the entire company, along with the promotion of the Okamura Way and the strengthening of teamwork.

* “WiL-BE” is the name of the work style reforms that we are promoting at Okamura. “WiL-BE” is derived from “Work in Life” proposed by Okamura, which in turn is based on the idea that “life is composed of many parts, of which work is one.”

2) Indicators and targets

Okamura set out the following indicators and targets concerning our approach to human capital in 1).

3) Examples of initiatives

a. Initiatives to nurture female leaders

Okamura aims to increase the percentage of female managers to 7.0% by fiscal 2024.
As a measure to increase the number of female managers, we provide selective training to help female employees hone leadership skills and mindsets.

b. Awareness-raising activities to support the balance of work and childcare

As part of the effort to raise awareness of the need to support the balancing of work and childcare, we exchanged and disseminated wide-ranging information on childcare.

c. Nurturing human resources

The Okamura Group clearly states in its Human Resources Policy that it “actively provides training necessary to develop and demonstrate employees’ abilities as well as to achieve cooperation, harmony, and promote the desire for self-development.” In addition, in our three-year Midterm Management Plan starting in fiscal 2023, we set out our aim to nurture our staff so that employees and the company can grow together. For this to become a reality, the Okamura Career Journey is one in which each and every employee continues to envision his or her future career and achieves personal growth through diverse experiences. Okamura strives to offer opportunities to continue learning to develop their careers and opportunities to take on new challenges, based on mutual understanding among employees.

d. Initiatives for health and productivity management

We at the Okamura Group have positioned health and productivity management as the foundation for “Work in Life,” and we have established the health and productivity management promotion system based on the “Okamura Health and Productivity Management Declaration” and “Okamura’s Approach to Health and Productivity Management.” We are moving forward with initiatives such as expanding the types of health examinations available and implementing better disease prevention measures, as well as encouraging employees to use up their annual paid leave, thereby striving to create a workplace that takes employee health into consideration. We also provide health literacy education and share relevant information so that employees are more aware of their health and can work toward improving their own physical condition.

e. Inner Communication (Stimulating Communication Within the Company)

We are working to maximize employee engagement under the theme of “listening to the concerns of employees and providing support to improve job engagement.” In fiscal 2022, we set two goals: to improve employee engagement and to support employee engagement. In order to improve employee engagement, we believe it is important, first of all, for each employee to consider the term “engagement” to understand what it means for them. To this end, we are preparing to hold Employee Engagement Conferences across the company in fiscal 2023, with departmental heads in charge of implementation. In addition, we have begun to develop a mechanism to gather employees’ opinions and ideas regarding engagement, and apply them to the other four WiL-BE 2.0 actions: Human Development, Work Rule, Work Smart and Work Place. We have already launched “Tell us, Masa-san!”, a channel for dialogue between employees and top management, as of January 2023, through which Representative Director Mr. Masayuki Nakamura answers questions from employees directly. We also plan to overhaul the existing Employee Suggestion system in April 2023, in order to encourage more suggestions from within the company.

Business risks

(1) Risk management system

The Okamura Group regards matters that may impact the achievement of business objectives (either favorably and unfavorably) as risks, and after identifying, analyzing and evaluating such risks, we work systematically to control risks to a reasonable extent, and to minimize the losses or maximize the opportunities that the risks may bring.
In order to organically link risk management, the systematical activities related to risks mentioned above, with the Group’s sustainability activities and improve the effectiveness of risk management, the Sustainability Committee was established with the purpose of systematically promoting sustainability activities. It makes decisions on the Group’s basic policy on risk management, risks to be prioritized, and countermeasures, and evaluates the effectiveness of risk management.
The following is an overview of the Sustainability Committee and its role in risk management.

1) Sustainability Committee

a. Purpose	Systematic promotion of the Group’s sustainability activities
b. Role	The Sustainability Committee has the following roles related to risk management. · Make decisions on basic policy on risk management · Make decisions on risks to be prioritized related to company-wide risks, countermeasures, and risk owners · Check the implementation status of risk management, evaluate effectiveness, and guide improvements · Report material risk-related issues to the Board of Directors
c. Meeting	Hold meetings regularly twice a year and as needed
d. Members	Chairperson: President and Chief Executive Officer, Members: Executive Officers from each business division, Corporate Functional Executive Officers, etc.

2) Risk Management Bureau

The general manager of the Legal & Risk Management Department serves as the head of the Bureau, with the corporate department, which is a member of the Sustainability Committee, serving as member to support and promote risk management in the Okamura Group.

3) Risk management at the company-wide level

We conduct company-wide risk management with the Sustainability Committee as the decision-making body for situations that may affect the entire company or the Okamura Group.

4) Risk management at the business unit level

A business unit is the unit responsible for business activities within the Group, which collectively refers to the company’s business divisions and consolidated subsidiaries for each segment. The executive officer of the business division serves as the senior general manager in charge. For situations that can be handled by a business division or subsidiaries, risk management is carried out with the business unit’s senior general manager in charge.

5) Risk owner

For each risk, we have designated a risk owner who is tasked with the responsibility to act to effectively control the risk, and is accountable for the actions and results. Risk owners have the authority to choose and apply appropriate risk response measures in light of business objectives and performance targets. Executive Officers are assigned as risk owners for company-wide risks by the Sustainability Committee.

The Group’s risk management system is as follows.

To develop and operate this system, the Company has established Risk Management Rules to be followed as part of risk management during normal times, and Emergency Response Rules to be upheld as part of crisis management during emergencies.

(2) Risk assessment processes

In risk assessment, risks are first identified, and then evaluated after analyzing the identified risks in terms of its likelihood of occurring and its degree of impact using risk maps.
The various risks identified are classified into five major categories: risks in the business environment, risks in business strategy, operational risk, financial risk, and risks pertaining to human rights, human resources, and labor. The major categories are further organized into three minor and sub-minor categories.

·Occurrence Scale

·Impact Scale

·Risk Map

Risk assessments are conducted twice a year at the company-wide level and once a year at the business unit level.
For risk assessment at the business unit level, the Group company first analyzes and evaluates the risks associated with its own company. Next, based on the results of the assessment by the Group company, the Senior General Manager in charge of the business unit determines risks to be prioritized for each business unit.
For risk assessment at the company-wide level, an
assessment department designated by the Risk Management Bureau conducts a primary assessment by referencing the risk assessment of the business unit, and the Risk Management Bureau conducts a second assessment after comprehensively reviewing the results produced by each assessment department. Based on that assessment, risks that are positioned as “Serious” or “High” on the risk map, as well as risks that are deemed important in consideration of their projected changes in future impact or their importance given the social responsibility, are referred to the Sustainability Committee, which determines the risks to be prioritized on a company-wide basis.
For risks to be prioritized, risk owners analyze their impact on business individually upon their materialization, and formulate and implement measures to counter them. When formulating such measures, the risks to be addressed in the short term and risks to be prioritized that have been specified by the Sustainability Committee are taken into account in the planning.
The risk owner and the Risk Management Bureau monitor how the risks are being addressed, and when problems arise, the risk owner works to correct and improve them.

(3) Priority Risks

The following are the main risks that management recognizes, among matters related to business overview, financial information, etc. as described in the Annual Securities Report, as having the potential to materially affect the financial position, operating results, and cash flows of the consolidated companies. We are working to control these risks and avoid them as much as possible. The risk items listed below do not cover all risks relating to the Group’s business. Forward-looking statements in this section were determined by the Group as of the end of the current consolidated fiscal year. (Items listed below as Priority risks are risks identified as having company-wide priority through the above-mentioned risk assessment process. Such risks are associated with the four themes of material management issues in the minor category of the classification.)

1) Risks related to “Creating environments where people can thrive”

a. Maintain and improve the quality of products and services
The quality of our products and services is the core of our mission, “Contribute to society by creating environments where people can thrive with rich ideas and reliable quality.” We pursue safe, high-quality, and innovative products and services, constantly striving to ensure thorough quality control in all processes from research and development, production to sales, so that we can meet customer expectations.
The Okamura Group manufactures each product according to a globally recognized quality standard (ISO 9001). However, there is no guarantee that all products will be free of accidents or future complaints. Although we have product liability insurance, there is no guarantee that insurance will adequately cover the Group’s total compensation liability. Product defects may affect the Group’s reputation and adversely affect the Group’s business performance and financial position. The quality control targets to be addressed are becoming increasingly diverse and complex due to business changes, such as the provision of new value to customers, the expansion of sales from goods to services, and the expansion of total sales not only for in-house manufactured products but also for externally-procured products, contracted construction, and services. Under the recognition that quality maintenance may not be able to keep up with the pace of business growth, and that quality control activities may be insufficient, we constantly review our quality control activities to maintain and improve quality.
Priority risks: Quality of products and services

2) Risks related to “Pursuing employee engagement”

a. Human capital and diversity
Failure to effectively gather, develop, and secure the human resources needed to conduct and grow our business runs the risk of impeding the capabilities critical to executing, managing, and supervising our business activities, thereby hindering the achievement of our performance targets as planned. In the event that efforts to develop human resources are not adequately implemented due to lacking human capital investments, sufficient consideration is not given to the health and safety of employees, or the psychological safety of the workplace is not ensured and the workplace environment becomes unpleasant, this may lead to a decline in morale, poor physical health, or employee resignations. A decline in productivity may also adversely affect the Group’s business performance and financial position. Violations of laws and regulations related to health and safety may not only result in penalties and compensation payments, but also affect the Group’s reputation, which may adversely affect business performance and financial position.
(See “(1) Sustainability approach and initiatives” for risk response measures)
Priority risks: Human resources, health and safety, labor, human rights

3) Risks related to “Global environmental initiatives”

a. Climate change
Delays in climate change measures, conflicts with relevant laws and regulations, or failure to shift business activities to the resource recycling-oriented approach demanded by society may not only hinder the Group’s contribution to the creation of a sustainable society, but may also damage the Group’s social credibility and adversely affect earnings due to exclusion from customer selection criteria. (See “(1) Sustainability approach and initiatives” for risk response measures)
Priority risks: Climate change and the transition to a resource recycling-oriented society

4) Risks related to “Responsible corporate behavior”

a. Supply chain disruption
The Group’s business performance may be adversely affected by suspended business activities, lost business opportunities, and restoration cost burdens stemming from supply chain disruptions owing to natural disasters such as earthquakes and floods, fires and other accidents, epidemics of new infectious diseases, trade friction between the U.S. and China, and other policy trends in various countries. If we are unable to adequately address issues such as higher material prices or difficulties procuring raw materials stemming from heightened geopolitical risks and rising energy prices, etc., this may result in the loss of opportunities for business activities and the incurrence of procurement cost burdens, which in turn may adversely affect the Group’s business performance.
Priority risks: Large-scale natural disasters, the spread of infectious diseases, procurement of materials and raw materials, accidents and man-made disasters

b. Governance and compliance
The Okamura Group strives to always act fairly, transparently, and sincerely based on high ethical standards, along with thorough compliance with laws and regulations. We also work to build better relationships with various stakeholders such as customers, suppliers, employees, and local communities and earn their trust through timely and appropriate information disclosure and communication. We continued to undertake activities to dispatch messages from top management and promote understanding of the Code of Conduct, and awareness-raising activities such as e-learning and other education. In addition, we ramped up efforts to instill a thorough understanding of the corporate philosophy and management policies within the Group and reviewed our Group management by clarifying responsibilities to enable the Group to carry out its business activities in a more integrated manner.
Although we need to foster awareness of compliance and carry out thoroughgoing efforts across the Group, we cannot guarantee the appropriateness of all corporate activities or of the words and actions of officers and employees, or that problematic behavior will not occur in the future, including in cases where Group company controls do not function properly. Failure to meet the expectations of society may cause the credibility of the Group to decline, which may adversely affect our business performance and financial position. We also recognize that inappropriate behavior, deterioration in credibility, and deterioration in business performance across the Group may negatively impact suppliers as well and lead them to bankruptcy, and thus we may be supposed to take a social responsibility for it. Deterioration in communication and psychological safety within the organization may lead to delays in the detection of risks and problems, incorrect business operations due to misidentification or unilateral judgment, and misconduct or improper handling unreported, even if it is noticed. As such, we have established the internal, external, and overseas helplines to work to resolve concerns at an early stage, as well as regularly conduct awareness surveys of all Group employees to analyze changes in attitudes over time and carry out improvement activities.
Priority risks: Governance, credibility, legal and regulatory compliance, labor

c. Information security
The Group holds confidential information, including information of customers and individuals, for business purposes. A variety of ICT systems are used in our businesses such as manufacturing and sales, and the information security risks around these grow every year. The Group appropriately handle personal information in accordance with the Privacy Mark System. We are also stepping up measures to prevent the occurrence of information security incidents, such as virus infections and unauthorized access due to cyberattacks, etc., and are also implementing measures to minimize damage in the event of an information security incident through the Computer Security Incident Response Team (CSIRT) established in 2020. In addition, we continuously conduct educational activities to raise awareness of information security risks in daily work by providing training via e-learning programs and targeted attack e-mail drills for employees, and by calling for attention when employees access the intranet and start up their PCs. However, if a serious information security incident occurs because of cyberattacks, etc., this may adversely affect the Group's business performance due to a decline in social trust or a halt of operations.
Priority risks: Information security

5) Changes in financial position, operating results, and cash flows other than those stated above

a. Economic conditions
The Group’s domestic sales account for over 90% of its total sales. Its business performance and financial position could potentially be adversely affected if demand shrinks due to capital spending caused by a deterioration of the Japanese economy.
Priority risks: Changes in the economic environment