Movin' Strategic Career CO., LTD.

The majority of net sales is recorded through the matching of registrants in the Company's in-house database (approximately 111,000 cumulative registrants as of the end of December 2025) with recruiting companies. If the number of registrants declines due to a drop in search rankings caused by, among other things, deterioration in SEO measures, this could lead to a decrease in the number of successful placements and a decline in profit margins resulting from an increased proportion of placements made via externally utilized sites. As a countermeasure, the Company is strengthening information dissemination through its website and social media, as well as enhancing CRM activities targeting past registrants.

The Company Group operates as a fee-charging employment placement business operator with a license granted by the Minister of Health, Labour and Welfare. The Company's license is valid until July 31, 2029, and that of its subsidiary Agent1 Corporation is valid until June 30, 2026. If grounds for disqualification arise or a violation of laws and regulations occurs, this could result in suspension of business or revocation of the license, potentially causing significant disruption to business operations. As a countermeasure, the Company has established a system for attending periodic training sessions offered by employment placement associations and consulting with external experts such as lawyers and certified social insurance and labor consultants.

The Company Group holds personal information on a large number of job seekers in the course of its business operations. In the event of an information leak, this could lead to a decline in credibility and damages litigation, potentially having a material impact on the Company Group's business results and financial condition. As a countermeasure, the Company implements information security measures such as personal information management based on its privacy policy, employee training, and obtaining Privacy Mark certification.

The Company Group's business is heavily weighted toward transactions with consulting firms. If unexpected changes in policy or deteriorating business performance at major consulting firm clients make it difficult to maintain smooth business relationships, this could have a significant impact on the Company Group's business results and financial condition. As a countermeasure, in addition to diversifying its customer base among consulting firms, the Company is expanding services for professional firms and operating companies to reduce its dependence on specific business partners.

Since the Company Group's recruitment placement services operate on a complete success-fee basis, revenue is subject to significant fluctuation if a slowdown in the domestic economy or other factors cause client companies' hiring trends to deteriorate. As a countermeasure, the Company is expanding its business in the high-career segment, which is relatively less affected by economic fluctuations, developing clients across diverse industries, and implementing client shifts according to economic conditions.

As the market expands, the number of companies offering recruitment placement services for the consulting industry is increasing, and intensifying competition could affect the Company Group's business results and financial condition. As a countermeasure, the Company is continuously gathering information on hiring trends in the consulting industry, strengthening relationships with clients, and enhancing its intermediary value by providing job seekers with in-depth information and career-change support through the use of its in-house database.

Securing and developing excellent personnel is a critical issue for business expansion. If the Company is unable to secure and develop personnel in a timely manner, or if existing personnel become unable to perform their duties due to turnover, this could affect the Company Group's business results and financial condition. As a countermeasure, the Company is promoting active recruitment, strengthening its training system to accelerate the development of capable staff, maintaining attractive compensation levels, enhancing employee benefits programs, and introducing personnel systems that support diverse working styles.

The Company's tradable share ratio is close to the 25% level set as a listing maintenance criterion by the Tokyo Stock Exchange, giving rise to the risk of falling below this criterion. As a countermeasure, the Company plans to improve share liquidity through a combination of measures, including requesting partial secondary offerings from major shareholders and increasing the number of tradable shares through the exercise of stock acquisition rights.

Bonuses for career advisors are calculated based on career-change support achievements, which tend to accumulate in the latter half of the consolidated fiscal year. As a result, a large portion of bonus expenses is incurred in the second half, creating a structure in which quarterly performance is prone to fluctuation. This seasonal variation could affect the Company Group's business results and financial condition, and investors should exercise caution when comparing quarterly performance.

The Company Group has built its information systems using external cloud services. If a system failure or unauthorized access by a malicious third party occurs, this could disrupt service operations and affect the Company Group's business results and financial condition. As the development of a digital platform proceeds going forward, system risk is expected to increase; accordingly, the Company is implementing regular backups, establishing internal response systems for when failures occur, and improving the effectiveness of IT controls.