INTERLIFE HOLDINGS CO.,LTD.

The Group has an extremely high proportion of sales from domestic construction companies, exposing it to the risk that a deterioration in the domestic economy leading to reduced new store openings and capital investment by client companies would directly result in fewer orders. In addition, soaring raw material costs stemming from geopolitical risks such as international conflicts could also cause the loss of order opportunities. If these factors occur simultaneously, they may have a material impact on the Group's overall business results.

The Group is subject to a wide range of legal regulations, including the Construction Business Act, the Building Standards Act, the Architects Act, the Fire Service Act, the Personal Information Protection Act, and the Real Estate Brokerage Act. Although the Group has established a CSR Charter and Code of Conduct, if officers and employees fail to comply with these, administrative sanctions such as business suspension may be imposed. A business suspension would directly result in loss of sales, having a significant impact on business results.

If serious defects or deficiencies occur in constructed properties, or if accidents resulting from such defects occur, the Group may bear liability for damages. Similarly, if a serious occupational accident occurs during construction work, damages and other liabilities may arise, potentially affecting business results. While the Group gives consideration to quality and safety, it is difficult to completely eliminate risks inherent to construction sites.

The Group holds assets such as investment securities, and if their market value declines significantly due to deteriorating market conditions, this may affect business results and financial position. The recognition of valuation losses on held assets would directly impair net assets, raising concerns about the impact on financial soundness. The securities report does not disclose specific holding amounts or countermeasures.

The Group has positioned M&A as an important growth strategy issue, which may give rise to substantial funding needs. If the business plan following subsidiarization is delayed, impairment losses may arise, posing a risk of adverse effects on business results and financial position. In addition, if new business development fails to generate the initially expected profits due to uncertain factors such as cost increases, this may also affect performance.

Although the Group has implemented infection prevention measures, work-from-home regulations, and safety confirmation systems, if the spread of infectious disease or a large-scale natural disaster exceeds expectations, it may result in the suspension of business activities or changes in lifestyle. Business suspension would directly lead to loss of sales, and disruptions to the supply chain could also hinder the execution of construction work.

The Group's policy is to meet its liquidity needs through operating cash flow, borrowings from financial institutions, and financing from capital markets. However, if the domestic and overseas economies deteriorate, a decline in operating cash flow and a deterioration in the fundraising environment could occur simultaneously, potentially affecting business performance and financial position. Given that M&A is a growth strategy for the Company, changes in the fundraising environment would directly affect its business expansion plans.

The Group holds important information such as confidential business information and personal information, and responds based on its basic philosophy, basic policy, and management policy on information security. However, if important information is improperly handled, in addition to damaging social credibility and trust, there is a risk of legal sanctions under the Personal Information Protection Act and other laws, which could also affect the continuity of business activities.

The Group strives to ensure security in the construction and operation of its information networks, but if unauthorized intrusion, tampering, theft, destruction of information, or obstruction of system use occurs, there is a risk of business disruption. Business suspension due to increasingly sophisticated cyberattacks, or the leakage of confidential information outside the company whether intentional or accidental, may affect business performance and financial condition.

While the Group works to improve the labor environment for employees and promote work-life integration, if the soundness of the labor environment is undermined by harassment or other issues, or if measures against overwork are insufficient, this could lead to serious occupational accidents or an increase in employee turnover. Effects on personnel recruitment would directly affect the Group's ability to execute its business, with construction and construction work as its core operations, potentially impacting medium- to long-term growth.