Global Information, Inc.

The majority of traffic to the Company's website is generated via search engines, which form the foundation of customer acquisition and new customer development. If a major change occurs in search engine algorithms, current SEO measures could be rendered ineffective, resulting in a decline in the number of customers visiting the website. As a countermeasure, the Company continuously monitors the number of visitors and maintains its website content.

In FY2025 (ending December 2025), sales of Market Research Reports accounted for 79.2% of total sales, indicating an extremely high degree of dependence on a specific product. If unforeseen circumstances arise, such as the emergence of competing products or a decline in customer demand, sales could decrease significantly, potentially having a material impact on the Company's financial position and business performance. The Company is working to reduce this dependency by expanding its Others product lineup and developing new suppliers, but sales have remained stable over the past five fiscal periods.

Major domestic corporate customers tend to concentrate their purchases in the first quarter (January to March). In FY2025 (ending December 2025), first-quarter sales stood out at ¥1,085,246 million (43.1% of total sales), while second-quarter sales were only ¥396,984 million (15.8% of total sales), resulting in an operating loss of ¥43,480 million. Although the Company is implementing measures such as increasing sales of Custom Research products and continuous sales promotion activities to smooth out sales and profits throughout the year, similar seasonal fluctuations may continue in the future.

In FY2025 (ending December 2025), sales attributable to the top five suppliers accounted for 37.6% of total sales, indicating a high degree of dependence on specific suppliers. If, for any reason, transactions with key suppliers cannot be continued, this could cause significant disruption to the Company's product supply system, potentially affecting its financial position and business performance. The Company strives to diversify this dependency through relationship maintenance via personal networking centered on the Representative Director and President, as well as by developing new suppliers.

The Group purchases products denominated in foreign currencies such as US dollars, euros, and British pounds, and sells them to customers denominated in local currencies, converting proceeds into yen after receipt. Sudden exchange rate fluctuations, particularly a strengthening yen, could increase procurement costs and reduce the value of proceeds upon conversion to yen, potentially affecting the Group's financial position, business performance, and cash flows. The securities report does not describe any specific hedging measures, leaving a structural vulnerability to exchange rate risk.

In the Market & Technology Trend Information Services business, the number of domestic and overseas competitors has increased, intensifying price competition. In addition, some research publishing companies that serve as suppliers conduct direct sales within the Company's sales territory, exposing the Company to dual competitive pressures. While the Company strives to avoid competition by strengthening relationships with suppliers and customers through personal networking, being drawn into price competition could lead to a decline in sales and profits.

The Group holds and manages important information, including personal information of customer companies, and faces risks of information leakage or loss due to unauthorized external access or employee negligence. Should an information leak occur, in addition to loss of social credibility, the Group could incur damages liabilities, potentially having a material impact on business development, financial position, and business performance. The Company has implemented preventive measures, including internal regulations based on the Personal Information Protection Act, regular employee training, and restrictions on employees handling such information.

Satoru Ono, Chairman of the Board of Directors, holds 17.5% of the total issued shares, and together with family-related parties and asset management companies, effectively controls 63.8% of the shares. Should the shareholdings of the major shareholder and related family members decrease significantly for any reason, this could affect the Company's stock market price and the exercise of voting rights. Although Mr. Ono has stated a policy of also considering the interests of minority shareholders, the high degree of concentration among controlling shareholders constitutes a structural risk from a corporate governance perspective.

The Group is a small-scale organization, and its internal management and business execution systems remain commensurate with this scale. Delays in securing talent due to changes in the employment environment, or unexpected resignations of officers and employees, could constrain business expansion and potentially weaken the internal management system. While the Company has identified the timely securing of excellent talent and the development of personnel who share the Company's management philosophy as important issues, the securities report provides only limited detail on specific measures.

The information services industry requires prompt response to rapid advances in information technology and changes in market needs. Should unexpected and rapid technological innovation occur and the Group fail to respond appropriately, this could affect business development, financial position, and business performance. While the Company seeks to strengthen its response through research on new information technologies and by gathering information needs through interviews with customers, there is also an inherent risk that technological changes such as AI could transform the very structure of demand for Market Research Reports.