AnyMind Group Inc.

The influencer marketing, digital marketing, and online video markets depend on advertisers' budget allocations, and revenue tends to be concentrated in March in Japan and India, and in December in other overseas markets. While staffing needs to be secured ahead of peak periods, a significant downturn could affect financial condition and operating results. The Company continues to strengthen its staffing structure in response to this seasonal fluctuation risk.

The Group operates in 15 countries and regions and holds assets and liabilities in local currencies in each country. Fluctuations in exchange rates upon translation into yen when preparing consolidated financial statements could affect operating results and financial condition. The Company does not employ hedging measures such as forward exchange contracts, based on the view that exchange rate fluctuations tend to normalize over the medium to long term. The likelihood of occurrence is high, and the impact is expected to materialize in the short term.

As of the end of December 2025, the number of potential shares from stock acquisition rights was 3,279,350 shares, equivalent to 5.1% of the total of 64,289,300 shares comprising issued shares and potential shares. The Company continues to consider utilizing stock option programs, and if additional grants or exercises occur, the value of shares held by existing shareholders may be diluted. The likelihood of occurrence is high, and the impact is expected to materialize in the short term.

Numerous companies operate in the EC, influencer marketing, and digital marketing markets, and competition may intensify due to the emergence of competitors with superior business models or an increase in new entrants. The Group is working to provide high-value-added services leveraging its technological and business development capabilities and to enhance its brand recognition; however, intensifying competition could affect financial condition and operating results. The likelihood of occurrence is assessed as medium, with the timing of materialization assessed as medium-term.

In the EC, influencer marketing, and digital marketing markets, the pace of technological innovation and changes in customer needs is extremely fast, requiring flexible responses from market participants. If the Group is unable to respond to such changes, or if system investment and personnel costs increase, this could affect financial condition and operating results. The likelihood of occurrence is assessed as medium, with the timing of materialization assessed as long-term.

In the brand commerce domain, there is a risk of lost sales opportunities due to stockouts or the occurrence of stagnant inventory resulting from misjudgment of demand trends. The Company seeks to minimize inventory risk through monthly adjustments to production and order quantities and by formulating sales measures for products forecasted to become stagnant inventory; however, if unexpected demand fluctuations occur, this could affect financial condition and operating results. The likelihood of occurrence is assessed as medium, with the timing of materialization assessed as short-term.

The Group has centered its operations on overseas business since its founding, and actively promotes global expansion, including placing 22 of its 37 consolidated subsidiaries under a Singapore intermediate holding company. International conditions, political and economic trends in each country, and risks related to the collection of accounts receivable may affect business operations. Although the Group seeks to reduce risk by avoiding dependence on specific regions, the likelihood of occurrence is assessed as medium, with the timing of materialization assessed as medium-term.

The Group holds personal information of creators and purchasers of D2C brand products, among others. If an information leak were to occur, it could result in damages compensation costs and loss of social credibility, affecting financial condition and operating results. The Company seeks to strengthen its management system through the development of various regulations and manuals and thorough dissemination to employees. The likelihood of occurrence is assessed as medium, with the timing of materialization assessed as medium-term.

The Group positions business alliances and corporate acquisitions as an important strategy for securing future growth and profitability; however, if the initially anticipated results are not achieved, impairment of goodwill, losses on business divestiture or liquidation, and other related expenses may arise, affecting financial condition and operating results. The likelihood of occurrence is assessed as medium, with the timing of materialization assessed as medium-term.

In the partner growth domain, the Company receives advertising revenue allocations from video content and sells media advertising inventory based on contracts with the Google Group, and transactions with this company constitute part of the Group's business revenue. If this contract were terminated, it could have a material impact on financial condition and operating results. The likelihood of occurrence is assessed as low, with the timing of materialization assessed as medium-term.