AirTrip Corp.

With the increasing prevalence of internet-based sales of travel products, the competitive environment has intensified, and there is a possibility that declining sales and increased costs associated with improving service levels could affect business performance. As countermeasures, the Company is actively pursuing strengthening relationships with airlines, enhancing the brand recognition of its own websites, expanding OEM supply, and pursuing capital and business alliances with competitors in the same industry.

There is a high degree of dependence on specific business partners in the procurement of domestic air tickets, the Company's core product. In the consolidated fiscal year under review (FY2025, ended September 2025), All Nippon Airways Co., Ltd. accounted for ¥17,027 million (43.4% of total procurement) and Skymark Airlines Inc. accounted for ¥4,955 million (12.6% of the same). If unforeseen circumstances arise with these business partners, or if there are changes to sales policies or commission rates, this could have a material impact on business performance and business development. The Company addresses this risk by strengthening relationships with business partners and considering increasing the number of business partners.

External factors such as natural disasters, severe weather, overseas political instability, international conflicts, terrorism, the outbreak and spread of infectious diseases, and deterioration of diplomatic relations may reduce travel demand and affect the performance of the Online Travel Business. Based on the results of management measures implemented during the spread of the novel coronavirus infection, the Company has established an appropriate response system to prevent significant uncertainty regarding its going concern assumption.

The customer acquisition efficiency of the Company's own internet sites is heavily dependent on search engine algorithms and smart device app specifications. If changes to these, or responses by competitors, result in unfavorable search results, this could affect business performance. The Company addresses this by maintaining a large in-house team of IT engineers and establishing a system that can promptly make improvements when such issues materialize.

The Company is subject to regulation under the Travel Agency Act and other laws and regulations. If violations occur, if compliance becomes impossible, or if relevant laws and regulations are abolished, revised, or newly enacted by administrative agencies, this could affect the Company's business and performance. The Company holds a Type 1 Travel Agency registration (registered with the Commissioner of the Japan Tourism Agency, Travel Agency No. 1872, valid from January 22, 2023 to January 21, 2028), and addresses this risk through proactive information gathering via exchanges with retained attorneys and external experts, as well as by establishing internal systems.

The IT Offshore Development Business is prone to price competition due to industry characteristics, and business performance could be affected by the poaching of engineers or the imitation of the Lab-type Offshore Development Service model by competitors. The Company aims to maintain its competitiveness by continuing and strengthening its unique strengths, such as talent acquisition capabilities leveraging economies of scale, operational know-how, and a strong network.

With the expansion of overseas business centered on the IT Offshore Development Business, the Company is exposed to various risks including global economic and foreign exchange trends, legal regulations, differences in business customs, labor relations, and international politics. If these risks materialize, they could affect the Company's business results and financial condition. The Company has established a system for continuous information gathering and formulation of countermeasures through the Board of Directors and the Management Strategy Meeting.

When an investee company is added to the scope of consolidation, there is a risk of negative impact, and if an investee company is unable to develop its business as expected, impairment losses on goodwill, tangible fixed assets, intangible assets, and financial assets such as stocks may occur, which could affect the Company's business performance and financial position. The Company addresses this through regular weekly reviews at the Management Strategy Meeting and by considering alternative measures in advance.

In the course of business operations, the Company holds large amounts of personal and confidential information about customers and others. If information is leaked externally or misused due to hacking by third parties or intentional or negligent acts by employees, this could adversely affect business performance, operations, and social credibility, including the burden of liability for damages and the receipt of business improvement orders. The Company has obtained Privacy Mark certification and strictly manages personal information through the establishment, clarification, and thorough enforcement of internal rules and procedures.

Chairman of the Board Takanori Oishi plays an important role in determining management policy and strategy, and if any unforeseen circumstances befall him or he steps down, this could affect business performance and business development. In addition, there are related party transactions with Pikapaka Co., Ltd. and Pikapaka Agent Co., Ltd., in which Mr. Oishi holds 75.2% of voting rights (in the consolidated fiscal year under review: system usage fee income of ¥3 million, outsourcing expense payments of ¥41 million). The terms of these transactions are determined with approval from the Board of Directors, taking into account prevailing market conditions.