GMO Product Platform, Inc.

The domestic Internet Research market, the Company Group's primary market, has grown since around 2001, but accurately forecasting the market size is difficult, and if the market does not grow as the Company anticipates, this may affect business performance. As a countermeasure, the Company is working to expand its share in overseas markets, primarily in Asia, where higher growth is expected.

The Company Group derives its main revenue source from internet advertising income through mobile apps, but the advertising market is susceptible to economic conditions, and there is a risk of deteriorating revenue if advertisers curtail spending or if advertising unit prices decline. In addition, due to dependence on external advertising platforms, changes in distribution algorithms or trading terms may cause fluctuations in advertising revenue. As a countermeasure, the Company is working to expand its user base and improve services in order to enhance advertising value.

Both the Survey Services and Advertising Services businesses have low entry barriers, and expansion by similar operators as well as new entrants from other industries are expected, creating a risk of price declines and stagnant market share. In Advertising Services, competition for user acquisition with other mobile services such as point services is also intensifying, and a decrease in the number of users or a decline in usage frequency could lead to reduced advertising revenue. As a countermeasure, the Company is working on continuous improvement of product competitiveness, differentiation through system integration with external partner panels, and development of appealing new features.

The Company Group holds personal information of its own panel members as well as survey distribution recipient information (encrypted email addresses) entrusted by other companies as Cloud Panel, and if an information leak occurs, it could have a material impact on business performance due to claims for damages or loss of social credibility. In its Annual Securities Report, the Company explicitly identifies personal information leakage as one of the most significant risks in terms of monetary impact and business continuity. As a countermeasure, the Company has obtained Privacy Mark and ISMS (ISO/IEC 27001:2013, JIS Q 27001:2014) certifications, established information security regulations and conducted training, and implemented risk transfer through enrollment in personal information leakage insurance.

The Company Group's business depends on the internet, and if a system failure occurs due to a natural disaster, unauthorized access, or other causes, business operations of the Company Group and its clients may be suspended, potentially resulting in direct damages. As a countermeasure, the Company is working to continuously improve the reliability and safety of its system environment.

Much of the Company Group's Survey (Anketo) sales revenue is derived from research companies, and internal factors such as changes in the research industry environment, intensifying competition among research companies, changes in customer needs, and system failures create a risk that dependence on a specific industry or specific customers may introduce uncertainty into future business performance. As a countermeasure, the Company continuously works to strengthen the reliability and safety of its platform, diversify its service offerings, and expand its customer base.

There is a risk that the number of survey responses collected may decline due to the shift away from PCs driven by the rise of smartphones and tablets, and that overlap among partner panels may make it difficult to secure a necessary and sufficient survey panel, which could constrain sales growth and increase costs. Additionally, depending on the nature of a given project, response quality may not be assured, resulting in the need for additional surveys and increased costs. As a countermeasure, the Company is working to improve the active rate and retention rate of existing panel members, strengthen panels with specific attributes on a priority basis, and continuously improve its proprietary quality control standards.

Unexpected changes in laws and regulations overseas, deterioration of political conditions, differences in business customs, and other factors may make it difficult to advance business overseas. In addition, because the consolidated financial statements are denominated in Japanese yen, there is a risk that exchange rate fluctuations could affect business performance. As a countermeasure, the Company continuously monitors changes in the overseas business and market environment and has established a system to respond promptly and appropriately when such changes occur.

For the Company Group, human resources are its greatest asset, and if intensifying competition for talent makes it difficult to secure excellent personnel, or if existing personnel leave the Company, this could hinder the expansion of existing businesses and the development of new businesses, thereby affecting business performance. As a countermeasure, in addition to ongoing recruitment activities to secure excellent talent, the Company works on developing existing personnel and improving employee satisfaction.

GMO Internet Group, Inc. is the largest shareholder, holding 70.45% of the Company's voting rights (as of December 31, 2025), and 3 of the Company's 9 officers also serve as officers of the parent company. In the fiscal year ended December 2025, transactions with the parent company group amounted to ¥153,108 thousand on the revenue side and ¥799,143 thousand on the expense side, giving rise to a risk of conflicts of interest with minority shareholders. As a countermeasure, the Company strives to ensure independence through the appointment of independent officers, a board structure in which directors with no concurrent positions at the parent company constitute a majority, review of the appropriateness of transaction terms, and reporting to the Board of Directors.