Plus Alpha Consulting Co., Ltd.

The HR Solutions Business accounted for an exceptionally high 77.5% of sales in the fiscal year ended September 2025, creating a risk whereby changes in the business environment for this segment directly affect overall company performance. Although the Group is pursuing diversification through a two-segment structure comprising the HR Solutions Business and the Marketing Solutions Business, dependence on the HR Solutions Business remains high. The Group aims to strengthen its resilience to external environmental changes by promoting entry into multiple business areas.

In the SaaS service domain in which the Group operates, there are existing competitors with financial strength and brand power, as well as the possibility of new entrants. If competition intensifies, there is a risk that rising customer acquisition costs and loss of market share could adversely affect the business and performance. The Group seeks to differentiate itself by strengthening product competitiveness through its proprietary visualization technology and accumulated know-how and track record.

Demand for SaaS-based services currently remains at a high level, driven by corporate needs for DX promotion and operational efficiency. However, if a deterioration in economic conditions or business trends causes client companies' investment appetite to decline, there is a possibility that this could affect order intake and sales. While the Group has adopted a policy of enhancing resilience to external environmental changes by entering multiple business areas, there are limits to its ability to cope with sudden macroeconomic changes.

New technologies and services are frequently introduced in the internet and SaaS industries, and a delayed response could result in a decline in service competitiveness. In addition, responding to such changes may require unplanned investments such as development costs, which could put pressure on profitability. The Group strives to maintain its responsiveness by building a system to keep abreast of the latest technology trends and by acquiring and developing outstanding talent.

Because the Group provides services over the internet, there is a risk that if the network or systems become unavailable due to natural disasters, accidents, access concentration, program failures, unauthorized external intrusion, or similar causes, the provision of services would become impossible, significantly undermining service credibility. The Group has established a system management framework, including strengthening server infrastructure and information security, but it is difficult to completely eliminate unpredictable factors.

The Group handles confidential information and personal data of client companies, and in the event of an information leak, there is a possibility of loss of public trust and claims for damages. In addition to Japan's Act on the Protection of Personal Information, the Group is also subject to overseas laws and regulations such as the GDPR, giving rise to compliance costs and the risk of violations. The Group has obtained Privacy Mark certification, ISMS certification (ISO27001), and ISMS Cloud Security certification (ISO27017), and strives for appropriate management and protection of information assets.

Securing, developing, and retaining excellent personnel to support business expansion is a key challenge. If recruitment does not proceed as planned or if internal development is delayed, appropriate staff allocation may become difficult, potentially affecting the business and performance. The Group is pursuing measures such as strengthening recruitment activities and enhancing post-employment training, but there is a risk that intensifying competition in the labor market could make it difficult to secure talent.

Representative Director and President Katsuya Mimuro and Director and Executive Vice President Kenji Suzumura are major shareholders who also play central roles in determining management policy and business strategy. There is a risk of a material impact on the business and performance should either of these two individuals become unable to perform their duties. The Group seeks to mitigate this risk through the promotion of delegation of authority and human resource development, but its current level of dependence on these two individuals remains high.

Developing new businesses aimed at diversifying revenue sources requires research and development investment over a certain period, which may reduce overall company profit margins. If new businesses do not progress as planned due to changes in the business environment or other factors, and sufficient returns on investment cannot be achieved, there is a risk of an adverse impact on performance. The Group makes investment decisions based on thorough observation and analysis of market trends, careful consideration of business plans, and a balance with the profitability of existing businesses.

If the performance of a target company deteriorates after an M&A transaction, a substantial write-down of goodwill may become necessary, potentially affecting performance. As of the end of the current consolidated fiscal year, the balance of goodwill was ¥347 million, and there is a risk that impairment losses could arise depending on the performance trends of the target companies. The Group seeks to reduce this risk by conducting thorough prior investigations (due diligence) into financial conditions and contractual relationships when carrying out M&A transactions.