Fuller, Inc.

The Digital Partner Business (Single Segment) relies on specialized personnel such as directors, designers, engineers, and data scientists, but the labor market is tightening due to a declining youth population resulting from the falling birthrate and increasing demand for DX talent. If it becomes difficult to secure human resources, this could impede the continuation of business growth. As countermeasures, the company promotes remote work, emphasizes work-life balance, and conducts active public relations activities.

Large-scale contracted projects involve uncertainties such as changes in client policy, delays in decision-making, communication breakdowns, and deliverable defects, which could lead to decreased sales, increased manufacturing costs (labor costs, outsourcing costs, etc.), and interruption of transactions. In addition, "timing shifts" in delivery and acceptance inspection may necessitate revisions to earnings forecasts. The company mitigates these risks by establishing transaction review, project planning, monitoring, and quality control systems.

The company's overall business activities are entirely dependent on internet-based system infrastructure, and if disruptions occur to communication infrastructure or major services such as Google, Slack, and freee accounting—whether due to natural disasters, conflicts, or human-caused disasters—business operations would be significantly hindered. The timing of this risk materializing is positioned as short-term, and its impact on business continuity is significant.

There is a possibility that the company's market capitalization could fall below the listing maintenance criteria of the Tokyo Stock Exchange Growth Market, and there is a risk that future revisions to the criteria could affect the maintenance of the listing. As a countermeasure, the company's basic policy is to enhance corporate value through growth in sales and profit, and it plans to consider a wide range of options including corporate restructuring and market changes.

Important information such as personal information and transaction information concerning officers, employees, and clients is managed using cloud-based services, and if leaked, this could result in significant impacts including damages, reputational harm, and interruption of business transactions. As a countermeasure, the company obtained ISMS certification (ISO27001) in May 2022 and implements security tools such as single sign-on, virus protection, and information device management, along with regular training.

Yappli (holding 21.5% of shares) and Dentsu Group (holding 21.2%) are major shareholders, and the company is an equity-method affiliate of both companies. Changes in the management policies, investment policies, or business conditions of these two companies could affect the company's decision-making, business, and performance. In addition, directors of both companies concurrently serve as directors of the company, and transactional relationships such as orders and client referrals exist under business alliance agreements.

"App Ape" collects actual app usage data through a panel survey method via SDK, but if data collection becomes difficult due to circumstances specific to partner apps or changes in Google's policies, service continuity could become difficult. Currently, the company minimizes risk by complying with various laws and regulations as well as Google's terms of service while coordinating with partners, but it carries a structural vulnerability of high dependence on external parties.

In the solutions market for business development, design, system development, data analysis, and more, there are numerous large companies with established transaction bases as well as growing emerging companies, and further entry by venture companies is expected going forward. Intensifying competition could affect business and performance, and the company addresses this by differentiating itself through an integrated provision system spanning from business development to growth.

Chairman of the Board Shuta Shibuya has played a critical role since the company's founding in formulating management strategy, acquiring clients, recruiting key personnel, and financing activities, with particularly significant influence in terms of name recognition in Niigata Prefecture and relationships with business partners. To address the business continuity risk in the event that he becomes unable to perform his duties, the company is advancing the consolidation of day-to-day operational authority with the Representative Director and President, along with the institutionalization of management information sharing and external relations activities.

If unforeseen factors occur, such as the loss of large transactions, occurrence of unprofitable projects, or troubles in project progress, this could significantly affect sales and profit for the fiscal year in question, potentially requiring revisions to earnings forecasts. The likelihood of materialization is positioned as "high" and the timing as "short-term," requiring attention as a disclosure risk to investors.