JUSTPLANNIG INC.

In the internet-related industry surrounding the ASP Business "Makasete Net" and the System Solutions Business, the proliferation of new technologies and new services is progressing rapidly alongside an increase in market entrants and user expansion. If the Company is slow to respond to technological changes, there is a risk that it could lead to a decline in competitiveness and customer attrition. The Company addresses this by actively introducing new technologies and building proprietary systems that incorporate user needs.

In the ASP Business "Makasete Net," there is a possibility that service provision could become difficult due to software or hardware defects, computer viruses, or problems with internal databases. In addition, there is a risk that important data could be deleted or improperly obtained due to unauthorized external intrusion or errors by officers and employees, which could lead to a decline in trust in the system and claims for damages. Although preventive measures such as building firewalls and using anti-virus software are being implemented, complete avoidance or mitigation is not guaranteed.

The Group handles personal information such as attendance management of client companies' employees as an outsourcing operation within the ASP Business, and if an information leak occurs, the Group could suffer tangible and intangible damages such as claims for damages and loss of credibility. The leakage of personal information has become a social issue, and it is a risk that could have a significant impact on the Group's business results and financial condition.

In the Logistics segment business, the market structure of logistics systems is rapidly changing due to the use of AI, big data, and other technologies to optimize resources. If the Group's comprehensive logistics management system "Logi Logi" (store ordering, warehouse management, inventory management, etc.) fails to adapt to these changes in market structure, there is a risk that it could lead to a decline in competitiveness and the loss of opportunities to acquire customers. Providing systems that adapt to market changes remains an ongoing challenge.

Human resources are a critical element in the Group's continued growth, and if the recruitment and development of talented personnel do not proceed as planned, it could become a factor limiting business growth. Competition for talent is particularly intense in the IT and systems field, and delays in recruitment, retention, and development could directly affect business development.