BRIDGE International Corp.

The Group has expanded its business on the back of rising sales and marketing investment sentiment among client companies, driven by a declining working population and increasing labor mobility. However, if such investment sentiment declines due to deterioration in domestic or overseas economic conditions or business trends, this may affect the Group's business and operating results. Given the service structure specialized in corporate sales challenges, the Group is directly susceptible to the impact of reduced investment by client companies.

The barriers to entry in the BtoB outbound market in which the Group operates are not particularly high, and a variety of competitors, including major companies, exist. If competitors with strong financial resources and brand power develop similar services and price competition intensifies, this may affect the Group's business and operating results through declining profitability. The Group seeks to maintain its competitive advantage by leveraging first-mover advantages and developing services that meet customer needs.

Technological innovations, including generative AI, are rapidly changing the methods of customer contact in inside sales from telephone-centered approaches to automated and more efficient methods. If the Group is slow to respond to unexpected rapid technological changes, or if unforeseen system investment becomes necessary to address new technologies, this may affect the Group's business and operating results. There is also a risk of sudden shifts in the competitive environment for CRM, SFA, MA, SEA, and other offerings provided by the Process Technology Business.

The Group's various services depend on communication networks. If a system failure occurs due to a sudden surge in access, power outage, computer virus, hacking, or employee error, this could lead to service suspension or loss/tampering of important data, resulting in a loss of trust and potential liability for damages. The Group strives to prevent unauthorized external access by enhancing server infrastructure and implementing appropriate security measures under the responsibility of its information security officer.

The Group handles confidential information and personal information of numerous client companies. Although it has established a management and protection framework based on its Basic Policy on Information Security, if important information assets are leaked externally, this could result in a loss of social trust and claims for damages, potentially having a material impact on the Group's business and operating results. The Group strives for thorough quality and information management through its ISO27001 certification.

While recruiting and retaining human resources is essential to the Group's business expansion, the number of individuals in Japan with inside sales experience remains limited. If intensifying competition for talent makes it difficult to hire excellent personnel, or if a large-scale outflow of existing employees occurs, this may affect the Group's business and operating results. The Group addresses this through active and continuous in-house training and development after hiring.

Yoshimasa Yoshida, Representative Director, Chairman and CEO, is the founder and plays a critical role in determining management policy and business strategy and in driving the business forward. If, for any reason, he becomes unable to continue in his duties, this may affect the Group's business and operating results. The Group is working to avoid excessive dependence by strengthening information sharing among officers at the Board of Directors and introducing a divisional business structure.

The Group is still in a growth phase, and if the development of an adequate internal management system fails to keep pace with the rapid expansion of its business, this could make appropriate business operations difficult and affect the Group's business and operating results. The Group is working to properly operate its internal control systems and establish a compliance framework, but recognizes the need for further enhancement.

The Group is promoting service diversification and new service initiatives centered on corporate sales support in order to expand its business scale. However, if additional expenditures arise for personnel recruitment, training, and system development costs, or if new services do not progress as planned, this may affect the Group's business and operating results. There is a risk that upfront investment costs will squeeze profits if plans are not achieved.

In the System Solution Service, if a system defect (bug) is discovered after customer acceptance, this could affect operating results through increased repair costs, loss of credibility, and claims for damages. Given the increasing sophistication and complexity of software, complete elimination of defects is considered difficult, and risks remain in the event of defects of a larger scale than expected or damages caused by the Group's negligence. The Group strives to prevent the occurrence of defects through thorough quality control under its ISO27001 certification.