OPTEX GROUP CO., LTD. Risks and opportunities related to our business
Risk/Transition/

Opp.※Physical※Category

ItemPhenomenon
・Increase in indirect costs due to increased energy

・Calculation of greenhouse gas emissions

resource usage fees due to accelerated switch toand promotion of reduction activities❶

renewable energy

probability

・Conversion to non-fossil energy sources

・Deterioration in profitability due to this or・Switching some company vehicles to HV/PHEV/BEV

deterioration in performance due to price revisions

・Energy saving of office lighting

Acceleration ofPolicies and RegulationsOccurrence

Our Response Measures

ImpactRelated

Importance Time frame

Businesses

BCMinorLong-term whole group

ACMediumLong-term whole group

AAMajor

Short-term whole group・Expand the ratio of renewable energy use

carbon pricing

throughout the supply chain through mutual❷

・Increased costs of components and raw materials
due to introduction of carbon tax

cooperation with suppliers and customers
・Active procurement of low-carbon parts
・Reduce manufacturing costs throughTransition

systematic design changes in preparation forrising costs of raw materials.

・Active promotion of climate change response

Risks

and external communication (information

Increased environmental
awareness among

Reputation

stakeholders anddisclosure based on TCFD recommendations,・Disapproval from stakeholders and consumers❸ due to lack of environmental initiatives and appeal

the market

reflection of implementation details in CDP
Climate Change Questionnaire, etc.)
・Establishment of CO2 reduction targets andpromotion of initiatives
・Improvement of air conditioning facilities

Chronic temperature

Chronic

increase

SS-Security・

in offices and production sites❹ ・Increased risk of heat strokeA・Installation of water supply units atC

MediumLong-term

environmental experience learning facilities

Physical・Shutdown of the company's own plants due toAcute

Physical Risk Management(abnormal weather)for Extreme Weather

C・Decentralization of production bases

B

Minor

・Strengthen implementation of environmental

・Increase in failures due to the effects ofB

resistance tests for products

abnormal weather (storms, high temperatures)

Others, IA-MVL,EMS, Others

・Reinforcement of BCP measures, waterproofing❺ natural disasters, disruption of employee access

Automatic door・B

MediumShort-term whole group

Mediumterm・Development of high temperature resistant products

SS-Security・Others,
IA-IPC・Promote development, sales, and services ofAcceleration of carbon
Products & Services

pricing and ZEB/ZEH
diffusion

・Growing demand for low carbon emission products

environmentally friendly products (automatic・Increasing demand for technologies and services

door sensors that consider air conditioning❶ that reduce power consumption (lighting, airAefficiency, AI-based visual inspection solutions,conditioning) through labor-saving and automation

BMajorMedium- SS-Automatic door,term

IA-FA, IA-MVL

industrial sensors that contribute toautomation)
・Development and sales enhancement

Increased environmental
awareness among
stakeholders andof products that are lighter in weight and❷ ・Accelerated demand for energy-saving productsnities

Transition

B

Mediumterm

・Expand sales of high-performance products

the market

Opportu-B

consume less power

Medium-SS-Security・Automatic door・
Others, IA-FA

that lead to improved productivity

Technology/Market

Progress towards electricvehicle shift

Expanding the use ofrenewable energy

Energy Sources

Resilience

Utilizing low-emission❸・Entering new markets throughincreased demand for EV batteriesabnormal weather

・Expand sales of EV battery manufacturing equipment

・Growing demand for high-accuracy inspections❹・Expand sales of sensors for factory automation anddue to increased demand for renewable energy

LED lighting for image inspection

products (solar panels, EV batteries, etc.)
・Reduction of indirect costs by optimizing

energy sources
Product development for・Introduce new products to the EV market

AMajorB

B

MediumMediumterm

B・Switching the power menu

Medium-❺ prevention measures due to chronic heavy rainfall

IA-FA, IA-MVLtermCMinor

Long-term Automatic door・Others, IA-IPC

・Develop and expand sales of flood monitoring

・Increased demand related to disaster

IA-MECT

SS-Security・・Installation of solar panels

energy procurement

BB

systems, predictive disaster maintenanceB

MediumLong-term

systems, robots for disaster inspection, etc.

SS-Others,IA-IPC※Transition risks/opportunities: Business risks/opportunities arising from the transition to a decarbonized society, such as tightening of laws and regulations and expansion of renewable energy
Physical risks: Risk of physical damage caused by climate change, such as a chronic rise in temperature and increased natural disasters

Probability of Occurrence
ATime frame※

Regularly occurrs

Long-(more than once every 3 years)term

9 years or more

Importance of Risks and Opportunities

B

Rarely occurs

Medium-(more than once every 5 years)

term

From 3 to 9 years

From 1-3 years.

CMajorMediumMinor

Based on the probability of occurrence

Almost never occurs, has not occurred inShort-

For "Opportunities": Events where goals are

the past

termthought to be achievable within the next few

and impact of the event, we rated theyears

importance of the event on a three-point※Time needed to respond to risks and establish business activities

scale of major, medium, and minor.

that take advantage of opportunities.
Period required for establishment

ImpactRisks (Financial Impact)
A

Damage to the extent that consolidated
business results fall into the red

ImpactOpportunities (Financial Effect)

A

Increase sales through entry into new markets

BB

C

Loss to the extent of 30% below consolidated
performance forecasts

Minor impact on business results

Increase sales in existing markets

C
Improving management efficiency

CBA

Probability ofOccurrence