All About,Inc.

User acquisition for "All About" relies heavily on search engines such as Yahoo! Japan and Google, creating a risk that changes to search algorithms could reduce the number of visiting users. In addition, the spread of generative AI is increasing "zero-click searches," and a new risk is emerging in which traffic to the sites cited as sources decreases. The Company is exploring countermeasures, but a direct impact on advertising revenue is a concern.

Corporate advertising expenditure is highly susceptible to economic fluctuations, and companies tend to cut advertising spending during recessions or under unstable social conditions. The internet advertising market, the Group's core business, exhibits the same tendency, creating a risk that performance could deteriorate if socioeconomic conditions change more than expected. Although the Group is working to improve its cost structure, challenges remain regarding revenue stability during economic downturns.

Following its acquisition of all shares of Mirai Bank Co., Ltd. in May 2025, the Company newly entered the banking agency business, making compliance with strict financial regulations, including the Banking Act, an urgent issue. Deficiencies in compliance systems—such as rules for soliciting financial products, customer information management, and exclusion of anti-social forces—could lead to administrative sanctions or damage claims. The Company is developing its systems by appointing specialized personnel and collaborating with outside experts, but the risk remains high given that this is a new business area for the Company.

Much of the content on "All About" is produced by outsourced external "Guides," creating a risk that content infringing on third-party rights or lacking in accuracy or fairness could be published. The risk of conflicting with relevant laws and regulations is particularly high in the medical, health, and financial fields. While the Company has established a review system that includes secondary checks by outside experts, this cannot guarantee complete assurance. Should content quality issues arise, they could affect performance and damage the Company's social credibility.

As content production using generative AI becomes widespread, concerns have been raised both domestically and internationally about the risk of unfairly harming the interests of authors and other rights holders; if appropriate rules are not established, the value of content published on the Company's media could be eroded. In the business areas the Group operates in, the trend of content generation using generative AI is also spreading, creating a risk that it will become difficult to differentiate from existing Guide-produced content. For the Company, which relies on content quality and reliability as a source of competitive advantage, the impact on performance could be significant.

The Group acquires and manages personal information through surveys, product and service sales, and other activities, creating a risk of information leakage due to unauthorized external access or intentional or negligent actions by outsourcing partners. The Company has established management systems, including obtaining the Privacy Mark and implementing access control settings and log retention, but there is no guarantee these measures are entirely sufficient. Should personal information be leaked, it could affect performance and cause significant damage to social credibility.

Many transactions in the internet advertising business are conducted with advertising agencies as sales counterparties, and the Company does not have sufficient alternative sales channels, creating a risk that agencies could demand changes to commission rates. The Company is working to build a business matching mechanism that benefits other companies' quality media as well as advertisers and agencies, but at present the degree of dependence on agencies remains high. Should commission rate changes occur, they could directly affect the Company's revenue structure.

The Group is actively developing new businesses to diversify its revenue sources, but there is a possibility that unexpected cost burdens or changes in the market environment could prevent it from securing profits as planned. Should the Group be unable to recoup its investments in new businesses, including its entry into the banking agency business, this could adversely affect the Group's performance. Managing the balance between the launch costs of new businesses and the profitability of existing businesses has become an important management challenge.

Nippon Television Network Corporation and NTT DOCOMO, INC. are major shareholders of the Company, and their management policies and exercise of voting rights could affect the Company's business operations and corporate governance. Should the major shareholders change their policies or should the shareholder composition change, this could affect the Company's share price, financial position, business results, and cash flows. The possibility that the Company's independent management decisions could be constrained cannot be ruled out.

The Group is a relatively small organization, and in some cases business processes depend on specific individuals, creating a risk that the development of internal control systems may not keep pace with rapid business expansion. Should certain officers or employees leave the Company, or should internal controls become inadequate as the business expands, this could hinder compliance with the internal control reporting system under the Financial Instruments and Exchange Act. The Company is developing its systems through measures such as establishing an internal audit office and a compliance promotion committee, but continued strengthening in line with business expansion is required.