PLANET, INC.

If the communication network is disrupted due to a large-scale disaster or system failure, there is a risk that the Company will be unable to provide its services. If reliability of the services is severely undermined, this could have a material impact on business performance. As countermeasures, the Company implements regular replacement of its network and hardware infrastructure and diversifies operational sites to enhance safety.

If information is leaked, falsified, destroyed, lost, or misused, the Company may be held liable for damages, and business continuity may be disrupted, which could have a material impact on business performance. The Company has obtained ISO27001 certification (the international standard for information security management systems) and strives to manage internal information by implementing necessary security measures. However, even with such measures in place, it is not possible to completely eliminate the risk of an incident occurring.

If the Company is slow to respond to innovative data communication technologies or information system technologies, it may become unable to provide optimal services to users. The Company continues to research the latest communication technologies and other advancements, but there is a risk that it may fail to keep pace with the speed of technological innovation. Loss of technological superiority relative to competitors could lead to customer attrition and declining revenue.

If sudden mergers among major wholesalers occur due to changes in the distribution structure, business performance may be affected by a decline in monthly usage fee revenue. The Company's services target wholesalers as its primary customers, and a decrease in the number of customers resulting from industry restructuring poses a structural risk that would directly reduce revenue. As this change stems from the external environment, it is difficult for the Company to control on its own.

The Company operates with a small-scale organizational structure consisting of 7 directors (excluding audit and supervisory committee members), 3 directors (audit and supervisory committee members), 46 employees, and 3 temporary employees. If the Company fails to secure and develop human resources, it may be unable to respond appropriately at the organizational level, which could hinder efficient business operations and business expansion. Because the organization is small in scale, it is highly dependent on specific personnel, making the relative impact of personnel turnover or recruitment difficulties greater.

If a novel infectious disease for which no established treatment exists, such as COVID-19, spreads rapidly, it will be difficult to completely prevent infection among employees, and if infections spread within the Company, business operations may be disrupted. The Company has established systems such as telework and staggered working hours to prevent disruption to operations, but because it is a small-scale organization, the departure of even some personnel could have a significant impact on overall operations.