eole Inc.

The internet recruitment advertising market to which HR Ads Platform and pinpoint belong may see its performance affected by fluctuations in the effective job openings-to-applicants ratio (1.18x as of March 2026, down 0.08 points year on year) or by a deterioration in employment conditions. On the other hand, the year-round shift toward hiring new graduates and the accelerating move toward building applicant pools via the web could present opportunities, but there is a risk of losing competitive advantage if timely investment cannot be achieved. The Company's policy is to respond by leveraging its strength in database-driven programmatic recruitment advertising.

Internet advertising revenue generated through pinpoint and other services may be affected by changes in client companies' budget policies, a decline in advertising demand due to a sharp economic downturn, or changes in media allocation policies. Although domestic advertising spending in 2025 grew to ¥4,045.9 billion (up 110.8% year on year), a sudden change in market conditions would have a direct impact on the Company's business and performance.

The Company is considering entering and expanding into financial-related businesses utilizing crypto assets. The crypto asset market is prone to significant price fluctuations, being highly susceptible to monetary policy in various countries, investor behavior, and supply-demand conditions. Should the market environment deteriorate or crypto asset prices decline sharply, this could affect the Company's financial position and operating results through reduced usage of related services, decreased business revenue, and changes in the valuation of crypto assets held by the Company.

The Company acquires and manages personal information for a large number of registered users and is obligated under the Act on the Protection of Personal Information. Should a serious incident such as an external leak of personal information occur, the Company could be subject to legal liability including damages, and loss of trust among advertisers and users as well as damage to its brand image could affect its business and performance. The Company has implemented measures such as obtaining Privacy Mark certification, establishing personal information protection management regulations, and conducting internal training.

The anonymously processed information (private DMP) utilized in pinpoint and other services may be affected by trends in amendments to the Act on the Protection of Personal Information and by strengthened restrictions on cookie usage by platform operators such as those represented by GAFA. Although the Company primarily uses advertising IDs to reduce its dependence on cookies, major changes to related guidelines or legal amendments restricting the use of anonymously processed information could affect advertising effectiveness and the Company's business and performance.

In the crypto asset and blockchain field, laws, regulations, and tax systems continue to be developed and revised both domestically and internationally, and future institutional changes could necessitate a review of business operation policies and result in additional response costs. In addition, should specification changes, failures, or cyberattacks occur on the platforms or network environments used for related services, this could disrupt service provision and affect the Company's financial position and operating results.

In internet-related markets, the cycle of technological innovation and changing customer needs is extremely rapid, and in particular the generative AI field continues to see new foundation models and services launched into the market within short periods. Continuous technical responses are required to keep pace with AI developers' feature additions, specification changes, and fee structure revisions, and any delay in response or need for development investment exceeding expectations could affect the Company's competitiveness and profitability.

In the internet advertising and job information markets, multiple domestic and overseas competitors exist, and the competitive environment continues to change, including the rapid expansion of search-linked programmatic advertising represented by Indeed. In the crypto asset and digital finance fields as well, intensifying competition is expected as crypto asset exchange operators, financial institutions, fintech companies, and major overseas operators enter the market. Should companies with financial strength, planning capability, and development capability newly enter the market, or should the Company find it difficult to provide services in a timely manner, this could affect its business development, financial position, and operating results.

Continuous upfront investment is required for stable service operation, improved user satisfaction, and the rollout of new services (such as Joboole and HR Ads Platform). Should actual user numbers, traffic, or demand for new services deviate significantly from initial forecasts, the Company may be forced to change the timing, content, or scale of its capital expenditures. This could result in increased depreciation expense burden and impairment risk, affecting operating results and financial position.

Share value may be diluted through third-party allotments of new shares aimed at raising funds for business expansion, as well as through the use of stock option plans and restricted stock compensation plans. As of the end of the month preceding the filing date, potential shares from stock acquisition rights totaled 14,376,000 shares, equivalent to 33.7% of the 42,698,920 total issued shares. In addition, founder and Chairman of the Board Naoto Yoshida holds 5,633,000 shares, equivalent to 13.7% of total issued shares; should there be a change in his holding policy leading to market sales or transfer to a specific party, this could affect the share price and business strategy.