MRSO Inc.

The Company holds a large volume of personal information, including sensitive personal information such as examinees' health checkup result data, and if a security incident occurs due to external attacks, human error, natural disasters, or other causes, it may result in significant damages such as litigation, damage compensation, or loss of credibility. As countermeasures, the Company has obtained ISMS (ISO27001) and Privacy Mark certifications, and has established a multi-layered information security system including regular vulnerability assessments, ransomware countermeasures, and access authority management.

The Company's services are provided as SaaS-type cloud services, and if a system failure occurs due to natural disasters, accidents, or a sudden increase in access, it may result in damages such as litigation, damage compensation, or loss of credibility associated with service suspension. As risk mitigation measures, the Company has implemented system redundancy, server load balancing, and regular backups.

Representative Director and President Kogoro Nishino, one of the founders, plays an important role in management policy, business strategy, and enhancing credibility, and if he becomes unable to continue his duties, it may have a significant impact on the business and results of operations. As a countermeasure, the Company is working to build a management structure that does not depend on him through information sharing with officers and senior staff via the Board of Directors and other means, as well as strengthening the management organization.

A certain proportion of traffic to the Company's reservation site comes via search sites, and if such traffic decreases due to changes in search engine algorithms or the expansion of AI search functions and changes in display specifications, it may affect the business and results of operations through a decline in customer acquisition effectiveness. As countermeasures, the Company is promoting SEO measures and content optimization for the AI search environment, while also promoting the expansion of corporate reservations, which are less affected by external search.

The Company's primary market, the health checkup and physical examination market, is expected to grow to a certain extent due to the promotion of preventive medicine and increased health awareness. However, if the market declines or changes due to trends among medical institutions or changes in the financial status and usage policies of social insurance, it may affect the business and results of operations. As a risk mitigation measure, the Company has begun rolling out new services that promote DX across general administrative operations, not limited to the healthcare field.

New entrants are increasing, mainly among health checkup agency organizations and companies providing cloud-based health management support systems, and if these entrants advance into the health checkup and physical examination reservation service business, intensifying competition may reduce the Company's competitiveness and affect its business and results of operations. In addition to building barriers to entry through the provision of both HCPF and DX services, the Company recognizes mutual collaboration with new entrants as a rational option from the perspective of first-mover advantage, and judges the likelihood of occurrence to be low.

The Company operates its business under various legal regulations, including the Medical Advertising Guidelines (Ministry of Health, Labour and Welfare), the Act on the Protection of Personal Information, the Act against Unjustifiable Premiums and Misleading Representations, the Act on Specified Commercial Transactions, and the Act on Settlement of Funds, and future amendments to laws or enactment of new laws may impose constraints on business operations or require new responses. As countermeasures, the Company works with its legal counsel to quickly grasp information on regulatory revisions, establish appropriate systems, and provide appropriate employee training.

The Company's cloud services are operated based on AWS, and if AWS experiences a failure or insufficient processing capacity, it may result in loss of customer trust due to interruption or delay in access to services; changes in AWS's business strategy or revisions to usage fees may also affect the business and results of operations. As a countermeasure, the Company regularly collects and compares proposals from server providers other than AWS, and continues to consider a smooth transition to alternative providers.

The Company uses services from overseas providers, mainly AWS, but does not hedge foreign exchange risk, and if the yen depreciates more than expected, it may affect business operations, results of operations, and financial condition. At present, the proportion of transaction volume subject to foreign exchange risk is low, but if this proportion increases, the Company states that it will consider utilizing risk hedging measures in consultation with financial institutions.

The Company Group has an overseas subsidiary in Vietnam responsible for system development, maintenance, and operation, and if changes in Vietnam's political, economic, or legal and regulatory environment, social unrest such as terrorism, or sudden changes in the labor environment occur, it may affect results of operations and financial condition. As countermeasures, the Company continuously strengthens the local management structure centered on local employees and monitors the risk situation through the Board of Directors.