BELLSYSTEM24 Holdings, Inc.

If recruitment and development of management personnel, capable staff, operators, etc. does not proceed as planned, or if the outflow of personnel cannot be prevented, this may affect business growth, business performance, and financial condition. The company is working to secure and retain personnel through systematized recruitment activities, various education and training programs, and the promotion of diversity management and health management, but reliable countermeasures are difficult given the intensifying competition in the labor market. The impact assessment in the securities report is "high".

If various information, including personal information entrusted by client companies, is lost, damaged, leaked externally, or falsified, this may have a material impact on the business, business performance, and financial condition due to claims for damages, contract cancellations, and loss of social credibility. The company continues to develop, disseminate, and educate staff on its "Personal Information Protection Policy" and "Information Security Policy", and has newly established an Information Crisis Management Department to strengthen its response. The impact assessment in the securities report is "high".

Advances in the sophistication and complexity of malware infections and cyberattacks may cause disruptions or suspension of held systems and business operations. The company has established an information risk management organization and a CSIRT under the CIO, and conducts verification of assumed major incident scenarios together with external experts, but complete elimination of such risk is difficult, and the risk of impact on business, business performance, and financial condition remains. The impact assessment in the securities report is "high".

If failures occur in internet communication networks or systems due to natural disasters, unauthorized access, malware infections, etc., business suspension or delays may occur, potentially leading to claims for damages or loss of trust. The company strives to ensure availability through regular system maintenance and replacement of aging equipment, but complete response to unforeseen events beyond expectations is difficult. The impact assessment in the securities report is "medium".

The environment surrounding the contact center business is intensifying, as digitalization progress among client companies driven by technological innovations such as generative AI, along with improvements in end-user IT literacy, is limiting the growth of demand for telephone-based inquiries. Delays in responding to technological changes or stagnation in creating new businesses may affect business growth; the company is addressing this through the active use of generative AI and VOC (Voice of Customer) and the creation of new BPO domains. The impact assessment in the securities report is "medium".

If investments in or business alliances with partner companies fail to achieve initially expected results, this may affect the financial condition through the occurrence of impairment losses or the termination of business due to dissolution of the alliance. The company manages this risk by conducting prior reviews of financial and contractual details, and by regularly monitoring the achievement status of business plans after investment or alliance formation. The impact assessment in the securities report is "medium".

The company faces country risks in its business activities in Vietnam, Taiwan, and Thailand, including suspension of remittances due to changes in political, economic, and social conditions or changes in laws and regulations. If geopolitical risks materialize, this may affect the financial condition and business performance through delays or inability to conduct business operations, delayed payments from business partners, price surges due to supply chain risks, and difficulty in recovering investment costs. The company aims to mitigate risk through information coordination with ITOCHU Corporation's local subsidiaries and information gathering from local staff. The impact assessment in the securities report is "medium".

Insufficient response to climate change issues may affect business activities and financial condition. The company has expressed its support for the TCFD recommendations and has established a response framework, including greenhouse gas emission reduction targets for 2025, 2030, and 2040 resolved by the Board of Directors. The impact assessment in the securities report is "low".

If events constituting human rights violations occur in domestic or overseas business activities, this may affect business growth and financial condition through stock price declines, suspension of transactions with customers, and loss of social credibility. The company has established and published a Human Rights Policy, and addresses this risk through continued awareness activities for officers and employees and the implementation of human rights due diligence. The impact assessment in the securities report is "low".