FP Partner Inc.

If the Company's credibility is damaged by reports in newspapers, television, magazines, YouTube, etc., this could affect the stock price, sales activities, and brand image, potentially leading to a deterioration in business performance. From FY2024 (ended November 2024) onward, reports regarding benefits provided by insurance companies actually affected performance. The Company has established a cooperation framework with its retained legal counsel and specialized institutions, and seeks to reduce risk through accurate information disclosure via its website and press releases.

There is a risk that unauthorized external access could lead to information leakage, unexpected system failures, or targeted email attacks could render systems unusable and halt business activities. Ransom demands or damages claims resulting from information leakage could arise, potentially having a material impact on the Company's credibility, brand image, and financial condition. In addition to implementing physical access restrictions and security measures, the Company works to reduce risk through regular information security training and drills for officers and employees.

Securing a sufficient number of sales staff is one of the most critical management issues; if recruitment plans are not met or turnover surges, the Company may be unable to maintain an adequate sales structure, affecting its financial position and operating results. If the Company is unable to secure and retain highly specialized personnel in administrative departments, this could also hinder business development and compliance efforts. The Company is working to strengthen recruitment and improve retention rates through measures such as promoting referral-based hiring, introducing flexible work systems, and implementing job rotation.

The Company is registered as a life and non-life insurance agency under the Insurance Business Act, and any violation of laws or inability to comply could result in serious consequences, including revocation of agency registration. The Company has begun responding to the FY2025 amendment to the Insurance Business Act, but future legal amendments or changes to supervisory guidelines may restrict conventional sales methods, potentially necessitating a review of the operating model, increased costs, and changes to the agency commission structure. In August 2025, the Company received a business improvement order from the Kanto Local Finance Bureau, and it is working steadily to implement its business improvement plan and transform its business model.

The Company received a business improvement order from the Kanto Local Finance Bureau in August 2025 and is required to steadily implement the business improvement plan it submitted. A series of media reports regarding benefits provided by insurance companies affected performance from FY2024 (ended November 2024) onward, and the Company has taken measures such as establishing internal regulations and strengthening governance structures. If supervisory authorities continue to strengthen guidance and regulation, this could lead to increased business operation costs and restrictions on sales activities.

Tsutomu Kuroki, the Representative Director and President, plays a critical role as founder in shaping the corporate culture and determining management policy and strategy. If he becomes unable to perform his duties due to health reasons or other causes, this could affect decision-making and business operations. The Company has established a decision-making process through its Board of Directors and appropriate follow-up systems for business operations, and in the event of an emergency, intends to minimize risk through coordination with the founding family.

Fraudulent acts by officers or employees, such as fraud, embezzlement, or insider trading, as well as inappropriate handling of customers, solicitation for side businesses, or controversies on social media, could damage the Company's social credibility and affect its financial position and operating results. The Company works to strengthen and maintain its compliance system through regular compliance training, confirmation tests, and thorough enforcement of work rules.

Business activities could be restricted by natural disasters such as flooding or earthquakes, war, or the spread of infectious diseases, leading to reduced opportunities for customer meetings and a slowdown in sales activities, which could affect the Company's financial position and operating results. The Company has established a "Crisis Management Regulation" and a "Basic Business Continuity Plan (BCP) for Disasters," and has a track record of minimizing impact through the introduction of telework and online financial planning consultations during the COVID-19 pandemic.

ESG risks such as climate change, changes in the economic environment, and legal amendments are classified as external environmental risks and could affect the Company's business operations. The Company has established a management framework in which the Risk Management Committee conducts individual risk analysis and materiality assessments, with designated departments responsible for managing each risk.

Liquidity risk, including funding and market risk, credit risk, price fluctuation risk, and the risk of accounting fraud are classified as financial risks and could affect the Company's financial position. The Risk Management Committee makes materiality assessments based on the likelihood of occurrence and potential impact, and has established a management framework with designated departments responsible for oversight.