Inbound Tech Inc.

The Multilingual CRM Business depends on demand from foreign visitors to Japan, and if the number of inbound visitors fails to grow due to changes in laws and regulations or shifts in social, political, and economic conditions, this could affect the Company's financial position and business results. The Company is working to capture demand by establishing a system supporting 13 languages, expanding the languages handled, and increasing operational capacity, but it remains highly dependent on the external environment.

In the Sales Outsourcing Business, sales dependence on the TEPCO Group continues, with sales to this group in FY2026 (ending March 2026) reaching ¥354,086 million (16.6% of net sales). If transactions with this group are reduced, if the products handled are not replaced as planned, or if business suspension occurs due to scandals at other outsourcing companies, this could have a material impact on the Company's financial position and business results.

The BPO market is large, at approximately ¥5.1 trillion in fiscal 2024, but barriers to entry are low, and a large number of companies ranging from major corporations to start-ups have entered the market, resulting in continued fierce competition. In the multilingual CRM services field, oligopolization by major players is progressing, and although the Company employs differentiation strategies such as 24/7, multilingual support, if new entrants continue to emerge and the Company is unable to maintain a clear competitive advantage, this could affect its financial position and business results.

The Company's competitiveness relies on the provision of high-quality services by skilled, specialized operations staff. However, if technological innovations in communications technology, AI, voice recognition, and other fields lead to the emergence of highly sophisticated automated voice response systems, the advantage of human-based operations could be undermined. If technological substitution progresses, the competitiveness of existing services could fundamentally decline, posing a risk to the Company's financial position and business results.

The Company handles personal information and confidential information obtained and managed by clients, and if information leakage, falsification, or unauthorized use occurs, this could lead to claims for damages and loss of trust, affecting the Company's financial position and business results. As countermeasures, the Company has obtained Privacy Mark certification (obtained October 2016) and ISMS (JISQ27001:2014) certification (obtained July 2021), and has established and operates personal information protection regulations.

The Company's business model is heavily influenced by the quality and quantity of its human resources, and securing and training contact center operations staff and supervisors is an important challenge. If changes in the economic and employment environment prevent the Company from securing personnel as planned, this could lead to a decline in service quality. In addition, if frequent revisions to labor laws and regulations concerning non-regular employment require reviews of employment structures and treatment, this could also affect the Company's financial position and business results.

The Company depends on communications infrastructure such as IP telephony and cloud-based CTI systems, and if internet line disruptions or CTI system trouble occur, claims for damages and loss of trust could arise regardless of where responsibility lies. Although the Company has taken measures such as server load balancing, continuous monitoring, and establishing backup plans, the risk of communications infrastructure failure cannot be completely eliminated.

In the Sales Outsourcing Business, the Company is obligated to comply with legal regulations such as the Telecommunications Business Act, the Act on Specified Commercial Transactions, and the Electricity Business Act. If inappropriate sales activities result in complaints from end users and damage the client's reputation, this could lead to claims for damages and loss of trust. The Company addresses this through thorough compliance training including outsourcing partners and by undergoing regular audits by clients, but the risk cannot be completely eliminated.

If a natural disaster such as an earthquake, typhoon, or infectious disease outbreak occurs, normal business operations could become impossible in the Tokyo metropolitan area and Kinki region, where the head office and agencies are concentrated, or in Minamisatsuma City, Kagoshima Prefecture, where a contact center is located. Although the Company has established a crisis management system, if human or physical damage is severe, there is a risk that business continuity itself could become impossible.

The Company has adopted a stock option plan for directors and employees, and as of June 1, 2026, the number of potential shares reached 276,000 shares (equivalent to 10.9% of total shares issued). The exercise of stock acquisition rights could dilute the share value and voting rights ratio of existing shareholders, and since the Company plans to continue utilizing the stock option plan to secure talented personnel going forward, the dilution risk is expected to continue.