PLAZA HOLDINGS CO.,LTD.

The mobile phone and related sales agency business is subject to regulations such as the Telecommunications Business Act, the Personal Information Protection Act, and the Act on Prevention of Unauthorized Use of Mobile Phones. In the event of violations, the Group may face penalties such as business suspension, termination of agency agreements, or claims for damages. In addition, if the Group fails to adequately respond to legal amendments, including the establishment or revision of guidelines by the Ministry of Internal Affairs and Communications and other authorities, this could also affect business performance. The Group strives to ensure legal compliance by strengthening employee education, including training and awareness programs.

In the Imaging Business, the Group provides management guidance to print service shops operated under a franchise format. If the evaluation of the franchise headquarters' functions becomes insufficient, or if the number of locations decreases due to circumstances on the franchisee side, this could affect business performance. Even when the cause originates on the franchisee side, it directly impacts the Group's revenue base, making the maintenance of headquarters function quality an important challenge.

Digital print and mobile device products and services depend on consumers' photo-taking opportunities during travel and leisure activities, and there is a risk that demand could decline significantly due to unforeseen changes in economic conditions, disasters, adverse weather, infectious diseases, and similar factors. These external factors are outside the Group's control and could have a wide-ranging impact on business performance.

As services diversify, store operations have become more complex and customer service time has increased, making it a challenge to secure store employees and improve retention rates. Rising recruitment costs and wage levels due to labor shortages, as well as a decline in service levels if sufficient staffing cannot be secured, could affect business performance. The Group is working company-wide on human resource development, including creating an attractive work environment and enhancing internal education and training programs.

The Group collects personal information, including customers' photo images, in connection with digital print services, internet sales, and mobile device sales. If personal information is leaked for any reason, this could affect business performance through loss of trust, claims for damages, and other consequences. The Group has established a personal information protection policy and strives for appropriate handling and protection, but it is difficult to completely eliminate risks such as cyberattacks and internal misconduct.

To secure stable profitability, the Group may continue to make upfront investments necessary to enter new businesses going forward. Depending on the speed and accuracy of these initiatives, the Group may be unable to achieve the initially projected profits within a certain period. If the recovery of upfront investments is delayed, this could adversely affect the Group's financial condition and business performance.