UNIFORM NEXT CO., LTD.

As the internet mail-order market expands, if new entrants advance the provision of high-value-added services, there is a risk that the Company's competitiveness may decline. The Company seeks to differentiate itself through agile responses to customer needs and other measures, but changes in the competitive environment may affect its financial position and business results.

Because price information on the internet is highly transparent, if the number of mail-order businesses handling similar products increases, price competition may intensify and profitability may decline. If some of the products handled fall into price competition, it may adversely affect the Company's financial position and business results.

The Company holds a large amount of customer information (personal information including sole proprietors) through internet sales, and if an information leak occurs or the Company violates the Act on the Protection of Personal Information, there is a risk of decline in social credibility. Although the Company has established a strict management system, complete prevention is difficult, and there are concerns about the impact on its financial position and business results.

The Company is subject to a wide range of legal regulations, including the Act on Specified Commercial Transactions, the Act against Unjustifiable Premiums and Misleading Representations, the Act on the Protection of Personal Information, and the Basic Act on Intellectual Property, and if legal violations occur or laws are revised or newly enacted, this may affect the Company's financial position and business results. Although the Company has established a compliance system through the development of its management framework, responding to changes in the regulatory environment remains an ongoing challenge.

Since a large portion of orders are received via the internet, there is a risk that service outages caused by natural disasters, accidents, unauthorized external access, or failures of core systems and networks accompanying increased transaction volumes could have a significant impact on business continuity. Although the Company has implemented backup systems and strengthened network security, complete avoidance of failures is difficult, and there are concerns about the impact on its financial position and business results.

The Company uses EC-ORANGE, provided by S-cubism Co., Ltd., as its platform for order management, and also depends on the systems and infrastructure of external third parties for logistics management and communication lines. If any disruption occurs in these external systems, the Company's business operations may be suspended or delayed, potentially affecting its financial position and business results.

Continuous technological innovation is ongoing in the internet field, and securing and developing specialized personnel is essential to keep pace with new technologies and devices. If, for any reason, it becomes difficult to strengthen or maintain the necessary workforce, this may hinder continuous improvement in customer convenience, potentially affecting the Company's financial position and business results.

Securing, developing, and preventing the outflow of excellent personnel toward business expansion is an important issue, and the Company is implementing measures such as recruitment activities, study sessions, and enhanced employee benefits. If the Company is unable to secure sufficient necessary personnel or if key personnel leave, appropriate staff allocation may become difficult, constraining business expansion and potentially affecting the Company's financial position and business results.

If purchase prices from manufacturers rise due to sharp fluctuations in raw material prices or exchange rates, there is a risk that the impact cannot be passed on to selling prices. In addition, if disruptions occur in manufacturers' production activities, procurement of products itself may become difficult. Although the Company is engaged in ongoing cost reduction efforts, if these corporate efforts are insufficient to offset such impacts, it may affect the Company's financial position and business results.

The products handled include seasonal items and rainwear whose sales volumes are greatly affected by weather, and if abnormal weather such as a cool summer, warm winter, or a rainy season with little rain occurs, there is a risk of decreased sales due to lower demand and excess inventory. As uncertainty regarding climate change increases, this risk may affect the Company's financial position and business results.