JINJIB Co.,Ltd.

In creating new services aimed at business expansion, the period until stable profitability is achieved may become longer than expected, potentially resulting in lower profit margins and additional costs due to upfront investment. While the Company's policy is to conduct sufficient prior investigation and consideration of profitability before proceeding with discussions, both likelihood and impact are assessed as "high".

If economic deterioration causes companies to reduce hiring appetite, increase non-regular employment, or reduce demand for new graduates, demand for the Company's recruitment support services may decline, potentially having a material impact on business performance. As a countermeasure, the Company is reducing dependence on specific demand by expanding its operating areas and developing services that cover up to second-time job seekers who are recent high school graduates.

The Company records deferred tax assets based on estimates of future taxable income; however, if actual taxable income falls short of estimates, it may become necessary to reduce all or part of the deferred tax assets, potentially having a significant impact on business performance. The Company continues monthly analysis of actual versus projected earnings and has established a system to formulate revenue-securing measures in advance if a forecast indicates a risk of non-recoverability.

The recruitment activity guidelines established by the Council on High School Employment Issues, led by the Ministry of Health, Labour and Welfare, function as de facto regulation. If major changes occur, such as changes to selection dates or the addition of new regulations, companies' recruitment activity methods may change, potentially affecting the fundamental basis of the Company's services. The Company addresses this through continuous collection of guideline information and advance preparation of systems for service changes.

Recruitment support services account for 51.6% of net sales (FY2026, ending March 2026), and there is a structural seasonal fluctuation whereby job listing sales are weighted toward the second half of the fiscal year, while Oshigoto Fair/Job Draft Fes is concentrated in May-July and October, and planning/production and agency support services are concentrated in July. Delays in inspection and acceptance near the end of an accounting period may also affect performance for that period. The Company addresses this through planning that accounts for seasonal fluctuations and thorough delivery schedule management.

The web job advertising business, to which Job Draft Navi belongs, has low barriers to entry, and the Company's competitive advantage may be diminished by existing companies with large capital resources or competitive new entrants. The Company seeks to differentiate itself by developing a comprehensive service model involving human interaction, including job fairs, training, and career education support.

Due to future declines in the working-age population and changes in the labor market resulting from the declining birthrate, the Company may become unable to secure enough high school students to meet job openings from companies, posing a risk that could undermine the foundation of the recruitment support business. The Company seeks to mitigate this risk by expanding the coverage area of its career education support service "Job Draft Career," which involves visiting high schools directly.

While regulations such as the Employment Security Act and the Labor Standards Act target recruiting companies, the Company is broadly involved in activities ranging from creating job listings to supporting the production of recruitment tools; if support that violates such regulations were provided, it could lead to a decline in credibility and deterioration in business performance. The Company mitigates this risk by verifying legal violation history and conducting anti-social forces checks at the time of listing applications, establishing a content review system for job advertisements prior to publication, and leveraging its certification as an Excellent Recruitment Information Provider (obtained in March 2025).

The Company collects and uses personal information such as the addresses, names, and contact information of high school students engaged in job hunting; if a leak were to occur for any reason, customer trust could significantly decline, potentially affecting business performance. The Company addresses this through its "Personal Information Handling and Protection Regulations" and "Information Security Management Regulations," thorough internal training for all employees, and its Privacy Mark certification obtained in July 2015.

The number of potential shares from stock acquisition rights granted as incentives to officers and employees has reached 7.67% of total issued shares (as of the end of the current fiscal year); if exercised, this could dilute the share value and voting rights ratio of existing shareholders. The Company limits this impact by maintaining a policy of keeping the issuance of stock acquisition rights to the minimum necessary.