株式会社Faber Company

In the digital marketing market, the pace of technological innovation is rapid against the backdrop of the rapid spread of generative AI, and customer needs are also prone to change. If the Company is slow to respond to new technologies and services, its competitiveness may decline, which could affect its business results and financial condition. As countermeasures, the Company is promoting continuous human capital investment, such as dispatching employees to conferences on cutting-edge technology themes, and building a system capable of timely response.

The Company's services depend on platforms such as search engines provided by global giant companies including Google, and timely response to irregular updates is essential. If the Company is slow to respond, or if platform operators change their strategies, this could have a material impact on the Company's business results and financial condition. The Company has established a system to obtain update information in a timely manner, including through the establishment of a communication network.

While the digital marketing market is expected to expand in scale going forward, competition may intensify due to an increase in the number of entrants. If the Company fails to achieve sufficient differentiation or functional improvement, intensifying competition with existing and new entrants could affect its business results and financial condition. As countermeasures, the Company continues to utilize its numerous customer touchpoints for service and feature development, and to improve services through regular monitoring of competing services.

Since the Company's services are used for corporate digital marketing activities, during economic downturns the number of client companies using the services may decrease due to reductions in client companies' marketing expenditures. Such conditions directly affect business results and financial condition. As a risk mitigation measure, the Company avoids dependence on specific companies, industries, or business types, and seeks to diversify its customer attributes.

As the business expands, the Company needs to recruit personnel across a wide range of positions, including sales, digital marketing, system development, and corporate functions, while personnel mobility is high in internet-related businesses. If the Company is unable to secure the necessary personnel, or if excellent existing personnel leave, this could affect the execution of management strategy, business results, and financial condition. In addition, the continuous securing of highly specialized digital marketing personnel for "Mieruka Connect" is also an issue, and the Company is addressing this through the development of evaluation and training systems and by improving recognition through continuous information disclosure.

The Company and its operated services acquire and manage personal information such as names, phone numbers, and email addresses, and if such information is leaked externally or misused for any reason, this could affect the Company's business results, financial condition, and social credibility. The Company has established a management system through obtaining ISO/IEC27001:2022 certification, appointing a personal information protection officer, developing personal information protection regulations, and thoroughly implementing internal training.

The Company is subject to regulations including the Subcontract Act, the new Freelance Act (effective November 1, 2024), the Employment Security Act, and the Worker Dispatching Act, and the enforcement of new laws, revisions to existing laws, or changes in important legal interpretations could affect the Company's business results and financial condition. In particular, with regard to the new Freelance Act, application is expected in relation to outsourcing to sole proprietor marketers, and the Company is implementing operational flow improvements, including digitalization (DX) of the ordering system, and conducting training for officers and employees.

Nobuo Furusawa, the founder and Representative Director & Executive Officer Founder, plays an important role in formulating and executing management policy and business strategy, as well as in personnel recruitment and development, and if he becomes unable to continue his duties, this could affect the Company's business results and financial condition. The Company is working to reduce this dependence through a clear division of roles under a two-Representative-Director system and through information sharing and delegation of authority at board meetings and elsewhere, but a certain degree of risk remains at present.

The Company has established a consolidated subsidiary in Ho Chi Minh City, Vietnam, to conduct service development operations, and if there are changes in local laws and regulations or deterioration in security due to terrorism, conflict, political turmoil, or similar events, this could disrupt business operations. Furthermore, sharp exchange rate fluctuations or foreign exchange restrictions could also affect business results and financial condition. The Company addresses this through coordination with local accounting firms and by establishing a system for close information exchange.

The Company is considering M&A as an option for business expansion, but if unforeseen matters that were not anticipated prior to execution come to light or occur after execution, or if business development does not proceed as planned due to changes in market conditions, this could affect the Company's business results and financial condition. As risk mitigation measures, the Company conducts detailed due diligence on business, legal, and financial matters, and gathers information early regarding changes in market conditions.