VIS Co., Ltd.

The Group conducts business under a wide range of laws and regulations, including the Construction Business Act, the Building Standards Act, and the Waste Management and Public Cleansing Act, and violations of these could result in sanctions such as fines or business suspension orders. In particular, if the construction business license (Minister of Land, Infrastructure, Transport and Tourism Special Construction Business License, valid from September 18, 2025 to September 17, 2030) were to be revoked, this would directly impede business continuity. The Company strives for legal compliance through the development and maintenance of internal control systems, but there remains a risk that tightening regulations could restrict business activities.

The core business of supporting office relocations and new office openings faces the risk of declining demand due to deterioration in the economic environment or weak corporate performance. A decline in repeat business from existing clients could also be a factor in performance deterioration. The business has high sensitivity to the economic cycle, and its structure is such that macroeconomic trends directly affect performance.

The Company faces competition from similar companies, including interior construction firms, and while it seeks to differentiate itself by providing high-value-added services, if it fails to secure sufficient competitiveness, order acquisition could become difficult. Intensifying price competition in the market and an increase in new entrants could lead to a decline in profitability.

The Company outsources construction and installation work to partner companies, and if construction quality deterioration, on-site accidents, or misconduct such as violations of the Waste Management and Public Cleansing Act occur, this could damage the Company's credibility or result in liability for damages. Rising outsourcing costs or extended construction periods could also negatively affect performance. While the Company strives for thorough management of partner companies, risks stemming from its reliance on outsourcing cannot be completely eliminated.

Highly specialized and experienced employees are essential for workplace proposals, design, and construction, and intensifying competition for recruitment could lead to rising personnel costs or delays in talent development, which could result in sluggish growth in the number of orders received. If human resource recruitment and development do not proceed as planned, this poses a risk of hindering the execution of the business expansion strategy.

If the development of internal management systems fails to keep pace with rapid business expansion, appropriate business operations could become difficult, potentially affecting the reliability of financial reporting and legal compliance. The Company recognizes that the effective functioning of corporate governance is essential to enhancing corporate value and is working to strengthen its internal management systems, but the risk of a gap emerging relative to the pace of growth remains.

With respect to the real estate acquired for the operation of the flexible office "The Place," if there is a significant decline in market value or deterioration in profitability, impairment losses could occur, affecting business performance and financial condition. In addition, if fixed assets held in Osaka City are damaged by natural disasters such as earthquakes or typhoons, there is a risk that restoration could require a substantial amount of time and expense.

If the flexible office building "The Place Osaka" (opened in January 2021) and Work Design Technologies Co., Ltd. (established in April 2022) do not progress as planned in their business plans, the expected revenue may not be achieved, potentially negatively affecting performance. Even if progress proceeds as planned, if it takes a considerable amount of time to generate stable revenue, there is a risk that this could put pressure on the overall performance of the Group.

Yuto Nakamura, Representative Director and Chairman, holds 63.03% of the total number of issued shares (as of March 31, 2026), including through his asset management company, and if his shareholding were to decrease significantly, this could affect the market price of shares and the exercise of voting rights. Although the Company has a policy of giving consideration to the interests of minority shareholders, a structure of high dependence on the controlling shareholder continues.

The Company adopts an accounting policy of recognizing revenue at the point in time when performance obligations are satisfied for construction contracts, and if construction delays not attributable to the Company occur, the timing of revenue recognition could shift from the originally planned schedule, potentially affecting performance in a specific period. When there are many construction projects concentrated near the end of a period, even a slight delay creates a structural risk of having a significant impact on quarterly and full-year performance.