ACCESS GROUP HOLDINGS CO.,LTD.

If restrictions on social and economic activity arise due to sudden economic fluctuations or geopolitical risks, or if changes in market structure occur due to population decline, the performance of the Group may be affected. In particular, the Human Resources Solutions Business and the Educational Institution Support Business have a structure that is susceptible to domestic demographic trends. The Group's policy is to strive to avoid the occurrence of such risks and to respond appropriately when they occur.

The Group holds multiple licenses and permits, including a paid employment placement business license in the Human Resources Solutions Business, worker dispatching business and outdoor advertising business registration in the Promotion Support Business, and second-hand dealer permits and bidding qualifications in each business. If these cannot be renewed, an impact on performance will occur. The Group gathers information as appropriate and renews these licenses, but the risk of being unable to renew them for some reason cannot be eliminated.

A wide range of laws and self-regulatory rules apply to the Group, including the Act on the Protection of Personal Information, the Act on Specified Commercial Transactions, the Act against Unjustifiable Premiums and Misleading Representations, the Building Lots and Buildings Transaction Business Act, the Travel Agency Act, the Secondhand Articles Dealer Act, the Copyright Act, and the Act on Regulation of Transmission of Specified Electronic Mail. If these are amended or newly enacted in a manner that affects business activities, an impact on performance will occur. In the field of foreign nationals, the presence or absence of entry restrictions is also relevant to the business, requiring continuous monitoring of changes in the regulatory environment.

The Human Resources Solutions Business tends to have concentrated sales in the fourth quarter due to service deployment timed to new graduate job-hunting activities, while the Educational Institution Support Business tends to have concentrated sales in the first half of the fiscal year when admissions fairs and similar events increase. If sufficient sales cannot be recorded during these concentrated periods, or if the timing of the concentrated period shifts due to earlier job-hunting activity schedules or other factors, an impact on performance may occur. This uneven sales structure is a factor that reduces the predictability of full-year performance.

As an industry practice, it is common for basic transaction agreements not to be exchanged, creating a risk of unforeseen incidents or disputes arising under conditions where transaction terms are not clearly defined. The Group, in principle, requires receipt of purchase orders and strives to conclude basic transaction agreements and provide transaction terms documents, but if relationships with clients deteriorate or disputes arise, an impact on performance may occur.

The Group's business includes services that handle personal information, and if a leak were to occur, it could affect performance. The Group has implemented measures such as obtaining Privacy Mark certification, strict operation of a personal information protection compliance program, and taking out liability insurance. However, even if a leakage incident occurs at another company, this could indirectly affect performance through individuals avoiding registration or recommendations to stop using services of related parties.

If unexpected troubles such as work errors, system failures, or personal information leaks occur, or if problems arise with business partners, officers, or employees, the Group may face claims for damages or litigation. Depending on the amount, content, and outcome, this could result in a financial burden or damage to social credibility, potentially affecting the Group's performance and financial condition.

Investment in human resources is essential for business expansion, but it may become difficult to secure employees who can serve as a driving force due to conditions in the labor market and economic trends. If human resources are lost or sufficient personnel cannot be secured, this could lead to a decline in orders and productivity, thereby affecting performance. The Group works on securing and developing employees based on its sustainability policy.

The Group operates systems that provide services over the internet, and if these systems were to go down due to excessive access, system failures, external cyberattacks, virus infections, or similar causes, this could affect performance. The Group has taken measures such as installing servers at a dedicated external data center, concluding maintenance contracts with development companies, and implementing routine security measures, but the risk cannot be completely eliminated.

In addition to fixed asset investments in the Group's own media and the Business Promotion Center, the Group intends to actively consider capital and business alliances and M&A going forward. If the anticipated sales and profits are not realized, this could affect performance and financial condition. Investments are made after thoroughly examining recoverability, but the risk remains that expected results may not be achieved as planned due to changes in the business environment or other factors.