Tameny Inc.

Due to the ongoing decline in birthrate and aging population, the population of marriageable age is on a downward trend, and combined with the diversification of values regarding marriage and weddings, there is a risk that the marriage-hunting and casual wedding markets will contract. Contraction of the existing market could directly affect the performance of the Company's core businesses, the Marriage-Hunting Support Business and the Casual Wedding-related business. In response, the Company continues to collect and analyze market information, and is reviewing existing services in light of anticipated trend changes while planning and developing new services aimed at cultivating new markets.

The Marriage-Hunting Support Business and Casual Wedding-related business do not require licenses or permits and have relatively low barriers to entry, creating a risk that competition will intensify due to new market entry or business expansion by companies with large-scale capital or strong marketing capabilities. Intensifying competition could lead to customer attrition and increased costs, potentially affecting business performance. In response, the Company differentiates itself in the Marriage-Hunting Support Business through concierge know-how, proprietary systems, and its customer base, and in the Casual Wedding Business through a wide variety of affiliated venues and production know-how.

Marriage partner introduction services fall under "specified continuous service offerings" under the Act on Specified Commercial Transactions, and violations carry the risk of receiving business improvement orders or business suspension orders. In addition, advertising activities are subject to regulation under the Act against Unjustifiable Premiums and Misleading Representations, and violations may result in corrective orders or surcharge payment orders. Furthermore, as an insurance agency, the Company is also subject to regulation under the Insurance Business Act, and violations may result in administrative sanctions such as revocation of agency registration or business suspension.

Due to the nature of the marriage-hunting support service, the Company holds a large volume of highly confidential personal information belonging to customers. In the event of unauthorized access, tampering, or leakage, there is a risk of reputational damage, increased response costs, and claims for damages. The Company is subject to the Act on the Protection of Personal Information and related guidelines, and thus also faces the risk of legal violations. In response, the Company has established a framework including obtaining and maintaining ISO27001 and Privacy Mark certifications, conducting regular internal and external audits, providing training for officers and employees, and concluding confidentiality agreements with business partners.

Stable operation of systems and internet connectivity is critical to business activities. If a system failure occurs due to natural disasters, data center outages, unauthorized access, computer virus infection, or other causes, business operations may be halted, potentially affecting business performance. Inadequate response to such failures or loss of important information assets could also lead to reputational damage and additional costs. In response, the Company has established a framework to prevent failures and mitigate their impact through redundancy to improve fault tolerance, preparation of replacement equipment, and appropriate security measures.

If the Company is unable to secure highly skilled personnel as planned—such as concierges in the Marriage-Hunting Support Business or counselors and producers in the Casual Wedding Business—or if unexpected outflows of personnel occur, this could lead to increased recruitment costs and lower service quality, potentially affecting business performance. In addition, if personnel attrition results in the leakage of concierge know-how, employee training and education know-how, or proprietary system information to competitors, there is a risk that the Company's competitive advantage could be diminished. In response, the Company is advancing planned recruitment and development, along with the enhancement of its training programs and personnel evaluation systems.

As the Company has primarily financed security deposits and guarantee deposits for new store openings, stock acquisition costs, and operational funds during the COVID-19 pandemic through borrowings from financial institutions, the ratio of interest-bearing debt to total assets remains at a high level. If interest rates rise, the increased interest burden could affect business performance and financial condition. In addition, certain borrowings are subject to financial covenants, and violation of these covenants could result in the loss of the benefit of time and a demand for lump-sum repayment.

If cash flows generated from held fixed assets deteriorate, impairment losses may occur, potentially affecting business performance and financial condition. In addition, goodwill has been recorded in connection with stock acquisitions, and the goodwill balance at the end of the current fiscal year accounts for 3.3% of total assets. If the profitability of an acquired company significantly declines, there is a risk that an impairment loss on the related goodwill could occur. In response, the Company verifies the appropriateness of investment plans at management meetings and conducts regular post-investment monitoring through the Corporate Planning Department.

Casual Wedding-related services depend on numerous affiliated venues. If a partnership is terminated due to worsening economic conditions, changes in partner policy, or deterioration of the relationship, it could disrupt stable service provision and affect business performance. In addition, wedding ceremonies and receptions are subject to seasonal fluctuations, concentrated in spring (March to May) and autumn (September to November); if the number of ceremonies held during peak seasons falls below plan due to external factors such as weather, natural disasters, or infectious disease outbreaks, there is a risk that sales could decline. In response, the Company is formulating a balanced partnership strategy to avoid excessive dependence on specific partners and is advancing in-house production of certain items.

The Company may consider and undertake investment activities such as stock acquisitions, capital investments, or alliances with other companies for the purpose of strengthening or expanding its business. However, if organizational integration fails, customer retention proves difficult, or personnel retention efforts are unsuccessful, requiring changes to the investment plan, the anticipated effects may not be realized and additional response costs may be incurred, potentially affecting business performance. In response, the Company conducts risk analysis and management, and makes investment decisions on the premise that a solid growth strategy can be envisioned.