Tabio Corporation

As of the end of the current fiscal year, the Group operates 119 franchise stores (Tabio no Madoguchi [Kutsushita-ya] franchised stores and overseas agents) in addition to 149 directly managed stores, with franchise stores accounting for a large proportion of total stores. If contract terminations occur due to changes in the environment surrounding franchisees or deterioration in franchisees' financial condition, this could affect the Group's business results and financial condition through a decline in wholesale revenue. The company does not disclose specific countermeasures.

The Group is promoting the opening of roadside stores, and stores in shopping centers and department stores under brands such as 'Kutsushita-ya,' 'Tabio,' and 'TabioMEN,' but may be forced to close stores due to closure of commercial facilities or tenant turnover. In addition, if the acquisition of franchise stores and the opening of directly managed stores do not proceed as planned, this could have a material impact on business results and financial condition. The company does not disclose specific countermeasures.

Demand for socks, pantyhose, and tights is affected by market fluctuations such as changes in fashion, poor weather, and declines in personal consumption due to economic downturn. If these factors coincide, this could affect business results and financial condition through a decline in sales. The company does not disclose specific countermeasures.

If a major natural or man-made disaster occurs at logistics bases, sales bases, or suppliers' production bases, a decline in sales and purchases, as well as facility restoration costs, is expected. If the Group is unable to prevent or mitigate such impact, this could have a material impact on business results and financial condition. The company does not disclose specific countermeasures.

The Group has built an integrated network system spanning manufacturing to sales, and conducts material procurement, new material development, and original product manufacturing in an integrated manner together with partner factories that manufacture socks. If partner companies face financial problems or business difficulties, or change their strategic objectives, it may become difficult to maintain the partnership, which could have a material impact on business results and financial condition. The company does not disclose specific alternative procurement measures.

Recognizing that securing and developing personnel, including sales staff, has a major impact on management, the Group implements initiatives such as in-house training, support for qualification acquisition, and reward systems. However, if the Group is unable to secure, develop, or retain personnel due to the recent decline in the working population, intensifying competition to attract talented personnel, and rising labor costs, this could have a material impact on business results and financial condition. Securing talented personnel is also positioned as key to maintaining competitiveness in responding to the evolution of digital technology and diversifying customer needs.

The Group holds a large amount of personal information through employee information, business partner information, and internet sales, and has established internal management systems to strictly manage this information. In the event that a leak of personal information occurs, this could have a material impact on business results and financial condition through damage to the brand image and the incurrence of compensation costs. Details of specific security measures are not disclosed.

Although COVID-19 has settled down, if a large-scale pandemic caused by a new virus or similar occurs, this could disrupt service provision due to logistics delays, temporary store closures, shortened business hours, etc. Should such a situation occur, it could have a material impact on business results and financial condition. The company does not disclose a specific BCP (business continuity plan).