TKP Corporation

If acquired fixed assets fail to generate the initially expected results or profits, or if M&A transactions face difficulty in maintaining continuous demand, synergies fail to materialize, or significant problems are discovered after acquisition, impairment of goodwill, intangible assets, securities, etc. may become necessary. As countermeasures, the Group implements utilization rate improvement and fixed cost reduction, thorough due diligence, deliberation of acquisition prices at management meetings, and monitoring toward realizing synergies after acquisition.

If an outbreak of an infectious disease without an established treatment, a major natural disaster such as an earthquake, or an economic downturn causes corporations and consumers to curb spending, there is a risk of cancellations of use and a decrease in new bookings for the Flexible Space and Bridal businesses, among others. As a countermeasure, approximately 40% of all contracts are structured as short-term cancellable contracts, such as six-month terms, enabling flexible adjustment of rent burdens, while the Group also pursues a policy of addressing new demand by developing new services utilizing existing frameworks and real estate.

There is a risk that new properties may not be secured as planned due to real estate market conditions or other factors, or that lease agreements for existing properties may not be extended as planned. While the impact level is assessed as high, the probability is assessed as low, and the Group responds by understanding the needs of real estate owners and negotiating extensions through monitoring the progress of redevelopment plans.

There is a risk that soaring prices or procurement difficulties for food ingredients, utilities, and interior materials used in the Facilities, Restaurant, Bridal, and Interior businesses will put pressure on profitability. The impact level is assessed as medium and the probability as high, and the Group responds through appropriate marketing and price revisions, as well as diversification of suppliers.

There is a risk that intensifying competition in each business area operated by the Group will lead to lower unit selling prices, shrinking profit margins, and increased costs for various measures to counter competitors. The Group responds through a multi-brand strategy to capture a broad customer base, diverse service offerings, and differentiation through the development of high-value-added services tailored to customer needs.

If confidential information, including personal information of customers and business partners, is leaked, lost, falsified, or misused due to unauthorized external access, inadequate internal management systems, or disasters, there is a risk of loss of social trust and a decline in customer usage. The Group responds through the development of internal regulations, regular employee training, strengthening of system security, and establishment of response flows in the event an incident is discovered.

There is a risk that deterioration in the recruitment environment within the service industry will cause recruitment plans to fall short of targets, disrupting the Group's overall business plans. The Group responds through strengthening recruitment activities and corporate branding, reviewing and revising personnel systems, and enhancing training programs, although both the impact level and probability are assessed as medium.