GLOBAL LINK MANAGEMENT INC.

In addition to physical risks such as wind and flood damage from abnormal weather, transition risks may materialize due to the shift toward a decarbonized society and tightening regulations related to biodiversity and water resource conservation. Insufficient response could adversely affect business performance and corporate value through loss of business opportunities, increased costs, and reduced stakeholder trust. As countermeasures, the Company promotes the acquisition of environmental certifications such as ZEH and ZEB, the development of properties with high disaster-prevention and crime-prevention performance, and efforts to reduce GHG emissions.

As the Company expands into new asset types such as hotels and logistics facilities and into the Regeneration Business, and as it is required to acquire AI knowledge and experience and respond to the revised Building Energy Efficiency Act enforced in 2025, unexpected risks arising from a lack of know-how and personnel may affect its finances and performance. The degree of impact is assessed as large in terms of economic loss. As countermeasures, the Company monitors social trends using in-house research institutes, pursues business process innovation through DX promotion, and works to reduce risk by understanding the needs of institutional investors and property sellers, among others.

Rising construction costs due to soaring construction material prices and chronic construction labor shortages in the Kanto region, combined with rising interest rates, a global economic downturn, and the materialization of geopolitical risks, could reduce investment appetite among real estate investors, particularly overseas institutional investors, and adversely affect business performance. The degree of impact is assessed as large in terms of economic loss. As countermeasures, the Company continues to acquire environmental certifications by asset type, grows its Regeneration Business (Office Buildings & Used Residence Renovation & Sales), which is less affected by rising construction costs, and strengthens its stock-type business.

Most of the funds required for property acquisition and other purposes are financed through interest-bearing debt from financial institutions, and if deterioration in financial soundness indicators or other factors impede fundraising, business continuity and credibility/reputation may be affected. There is also a risk that fundraising costs will increase in a rising market interest rate environment. The degree of impact is assessed as large for both credibility/reputation and business continuity. As countermeasures, the Company strengthens transactions utilizing funds, improves capital efficiency by increasing the proportion of the Land Planning Business and the Regeneration Business (Office Buildings & Used Residence Renovation & Sales), and promotes total management of its P/L, B/S, and C/S based on financial discipline.

Violations of real estate-related laws and regulations, such as the Building Lots and Buildings Transaction Business Act and the Act on Improvement of Management Practices in Rental Housing, or of the Financial Instruments and Exchange Act (insider trading regulations and information disclosure obligations), could result in administrative sanctions such as business suspension, fines, and criminal penalties, as well as significant damage to credibility and reputation. There is also a risk of intellectual property infringement in system development and AI utilization at the affiliated company AtPeak Co., Ltd. The degree of impact is assessed as large for both credibility/reputation and business continuity, and the Company addresses this through legal checks by the Legal Department, a Compliance Officer system, and compliance training for all employees.

Digital assets such as computers, networks, and information systems are exposed to threats such as external attacks, unauthorized access, information leaks, and malware infection, which could affect business continuity and credibility/reputation and result in decreased sales and expenditures for system recovery. The degree of impact is assessed as large for both economic loss and credibility/reputation. With the expansion of the DX/IT-Related Business (AtPeak Co., Ltd.), the importance of information security is increasing, and the Company implements multifaceted countermeasures such as introducing multi-factor authentication, conducting regular risk assessments, and providing employee training.

Major earthquakes such as a direct hit earthquake beneath the greater Tokyo metropolitan area, wind and flood damage, war, terrorism, or the spread of infectious diseases could endanger employees' lives and make business continuity difficult, and there are concerns that business performance could be affected if owned or managed assets are damaged. The degree of impact is assessed as large in terms of economic loss. As countermeasures, the Company has formulated a business continuity plan (BCP), established a chain of command in the event of an emergency, and conducts regular drills to confirm the operation of the response headquarters and coordination among organizations.

In managing properties on a one-stop basis from planning and design through construction, delivery, and operation, any deficiencies in safety management, quality management, or process management could lead to loss of credibility, unexpected expenses, and delays in various plans, adversely affecting business performance. The degree of impact is assessed as large for both economic loss and credibility/reputation. As countermeasures, the Company selects reliable business partners, conducts regular on-site inspections as the ordering party, and thoroughly implements hazard prediction (KY) activity management, quality inspections, and progress management.

As the business domain expands, if the Company is unable to sufficiently recruit and develop personnel who share the Group's philosophy and can grow together with it, business performance may be affected. The degree of impact is assessed as medium for both economic loss and business continuity. As countermeasures, the Company is implementing employee engagement improvement projects, developing environments that foster challenge and growth, establishing fair evaluation systems, and improving treatment focused on the developing workforce.