baby calendar inc.

The continuing decline in the number of births in Japan poses a risk of stagnating page views (PV) in the Media Business and a decrease in user inflow from external content distribution partners. In addition, in the Business for Medical Corporations, a decrease in obstetrics and gynecology clinics, which serve as customers, could directly affect business performance. The Company seeks to mitigate this risk through feature additions and renewals, development of new content distribution partners, and expansion into medical institutions other than obstetrics and gynecology clinics.

The Company is highly dependent on user acquisition from specific search engines such as Google and Yahoo! JAPAN, and there is a risk that SEO may cease to function effectively due to changes in the logic or policies of search engine operators. Search ranking determinations are entirely at the discretion of the operators, and the Company has no ability to influence them. As a countermeasure, the Company seeks to diversify risk through various user acquisition measures such as web advertising and external distribution, but a decline in user acquisition effectiveness could affect business performance.

The internet-related business has low barriers to entry, creating a risk of intensifying competition as the number of participating companies increases. If competitive countermeasures do not succeed, user attrition and increased user acquisition costs may occur, which could adversely affect advertising revenue in the Media Business. The Company strives to respond to customer and user needs and secure competitive advantages, but if the expected results are not achieved, an impact on business performance is anticipated.

If content lacking accuracy, safety, or reliability, in deviation from production rules, is published on media operated by the Company, there is a risk of a decline in social credibility and an adverse effect on business performance. The Company has established a system of expert supervision to ensure reliability, but complete elimination of such risk is difficult. Damage to credibility could directly undermine the revenue base of the Media Business through advertiser attrition and user departure.

The Company acquires and manages personal information such as addresses, names, and phone numbers of users and various giveaway campaign applicants, and bears obligations under the Personal Information Protection Act. If personal information is leaked due to inadequate internal systems or unauthorized external access, a decline in credibility and claims for damages could occur, potentially affecting business performance. As countermeasures, the Company conducts regular study sessions for employees and implements information security measures such as access rights management for databases.

If a system outage occurs due to increased server load from access concentration, natural disasters, accidents, unauthorized external access, or other causes, there is a risk of loss or leakage of important data or an inability to provide services. This could affect business performance through the occurrence of damages claims and a decline in credibility. The Company implements measures to prevent unauthorized intrusion and strives to prevent system failures in advance, but complete elimination of such risk is difficult.

The Company's business is subject to numerous laws and regulations, including the Personal Information Protection Act, the Act on Specified Commercial Transactions, the Act against Unjustifiable Premiums and Misleading Representations, the Medical Care Act, and the Act on Pharmaceuticals and Medical Devices. If content, advertising, or media violate laws or public order and morals, there is a risk of damages claims and a decline in credibility, which could affect the Company's financial condition and business performance. In particular, since the Company handles content in the medical and health fields, compliance with the Medical Care Act and the Act on Pharmaceuticals and Medical Devices is an important issue. The Company has established a management system and strives for legal compliance, but continued response to changes in the regulatory environment is required.

The Company's Media Business acquires users through content provision to external media, but there is no guarantee of permanent transactions with content distribution partners. If changes occur in contractual terms, user inflow may slow and PV may decline, potentially adversely affecting advertising revenue. The Company continues to develop new content distribution partners, but if dependence on a specific partner is high, the impact of such changes could be significant.

The Company has set forth business expansion through M&A aimed at new area development centered on the Media Business and other business growth, but there is a risk that invested funds may not be recovered due to significant changes in the market or competitive environment after an acquisition, or failure to achieve business plans. Additional costs may also arise, potentially affecting business performance, growth, and business development. Although the Company conducts prior investigation and consideration, it is difficult to fully predict future changes in the environment.

Recruiting, retaining, and developing excellent human resources is important for improving competitiveness and future business development, but if this does not proceed as planned or excellent personnel leave the Company, it could become a constraining factor on competitiveness and business scale expansion. Competition for talent in the internet-related industry is fierce, and securing specialized personnel in the technology and content fields in particular is a challenge. A shortage of personnel could also affect the Company's ability to respond to new technologies and maintain service quality.