Emimen Co., Ltd.

The Group receives fees and other payments from companies operating senior homes and similar facilities. If, due to legal revisions related to social security costs or other factors, changes occur in the business environment of the nursing care industry as a whole or of client companies, and the earnings of many client companies decline, this could have a material impact on the Group's business results and financial position. The Group seeks to address this by offering multiple services supporting the nursing care industry and the elderly, but the structure remains highly dependent on external factors such as legal revisions.

The Group holds personal information acquired through its business operations and has established various regulations, including the "Basic Regulations for Personal Information Protection," to ensure appropriate handling. However, if personal information were to be leaked externally for any reason, the Group's social credibility as a company could decline, potentially having a material impact on its business results and financial position.

Developing coordinators' ability to handle issues and accelerating new employees' retention of knowledge are key to achieving the management plan. If human resource development takes time or turnover increases significantly, business performance could be affected. As countermeasures, the Group is utilizing its CRM system, strengthening its educational system through video content, and implementing retention measures using pulse surveys (follow-up interviews with targeted employees).

Fees for the Senior Home Referral Service have a structure that is unlikely to experience rapid deterioration in supply-demand balance, and for the consulting service, competitors are limited, making price competition unlikely to arise. However, if selling prices decline beyond expectations, this could affect business results and financial position.

The Senior Home Referral Service is a labor service provision business, and securing human resources is key to business continuity. Currently, recruitment is mainly conducted through recruitment agents, and the Group has been able to obtain stable referrals by emphasizing its contribution to solving social issues and promoting diversity; however, if recruitment does not proceed smoothly, this could affect business results and financial position.

The Senior Home Referral Service requires neither significant investment nor licensing, resulting in relatively low barriers to entry. If numerous companies enter the market and competition intensifies, this could affect business results and financial position. Currently, personnel costs and the time required for expansion serve as barriers to entry, while for the Senior Home Consulting Service, customer relationships and total service offerings serve as barriers; however, the risk of a sudden change in the competitive environment cannot be ruled out.

Masashi Enami, Representative Director and President, as the founder, plays a critical role in determining and executing management policy and business strategy. If he were to become unable to continue his management duties, this could affect business results and financial position. As countermeasures, the Group is promoting information sharing with officers and executives through management meetings and strengthening its management organization, but the risk of dependence remains.

The Group's Senior Home Referral Service is closely tied to the nursing care industry, and announcements by authorities, the Federation of Senior Housing Business Associations, and the National Federation of Nursing Care Business Operators may affect the industry. If future changes occur in the regulatory environment or in the responses of industry players, this could affect the Group's business results and financial position.

The Group has granted stock options as incentives to officers and employees, and as of the end of the consolidated fiscal year, the number of potential shares reached 62,727 shares (equivalent to 3.1% of the total number of issued shares excluding treasury shares of 2,029,405 shares). Additional grants may be made in the future to secure talented personnel, and if exercise of these rights proceeds, there is a risk that the value of shares held by existing shareholders will be diluted.

The Group recorded a net loss in prior fiscal years, and as of October 31, 2025, tax loss carryforwards exist. Depending on future tax reforms, it may not be possible to reduce the tax burden, and if the tax loss carryforwards are exhausted, corporate income tax and other taxes will be incurred based on the standard tax rate, which could affect business results and cash flows.