TOSNET CORPORATION

In concluding security service contracts, the company obtains large volumes of customer information, including client names, addresses, phone numbers, and details of secured properties. Should an information leak occur, it could lead to claims for damages and a loss of credibility, potentially having a material impact on business performance and operations. The company has established the "Personal Information Protection Regulations," the "Information Security Management Regulations," and the "Information System Management Regulations" based on its "Information Security Policy," and strives to prevent information leaks through internal audits and strengthened organizational information management.

The Group operates under the regulation of the Security Services Act and its enforcement regulations, and conducts business upon certification from the Miyagi Prefectural Public Safety Commission, which requires renewal procedures every five years. Violations of the Act or related laws and regulations could result in penalties, as well as administrative dispositions such as revocation of certification, posing a risk of directly impeding business continuity. The company strives to enhance its compliance system through the development of management structures and thorough employee education by appointing dedicated instruction and education supervisors.

The number of security guards on the payroll in FY2025 (ending September 2025) was 2,879, a decrease of 160 from FY2024 (ending September 2024), making personnel recruitment a challenge. If the hiring plan does not proceed as planned and it becomes difficult to assign staff to security sites, the company may lose business opportunities, posing a risk of a direct impact on net sales. The company is actively engaged in recruitment activities through the use of job advertisement media, school visits, and an employee referral program.