Media Research Institute,Inc.

Since the Group's main business is job hunting events for Kosen students and science/engineering university students, a decline in corporate employment levels due to economic downturn directly affects business performance. While services for new graduate recruitment are said to be less susceptible to economic fluctuations than mid-career recruitment, if an economic downturn occurs beyond expectations, it may affect the Group's business results and financial condition. As a countermeasure, the Group maintains service designs specialized for specific recruitment needs, but dependence on the external environment cannot be eliminated.

Since job hunting events are concentrated from December to January of the following year, sales have a structure skewed toward the second quarter; in the second quarter of FY2025 (ending July 2025), net sales were ¥999 million (full-year: ¥1,536 million) and operating income was ¥585 million (full-year: ¥294 million), confirming a marked bias. If the timing of job hunting activities shifts due to changes such as the Japan Business Federation's (Keidanren) "Guidelines on Recruitment Selection," this may affect quarterly sales. Although the impact on annual sales is considered minor, the impact on cash flow and investment plans cannot be denied.

The Group's core business involves holding in-person events, and there is a track record of being forced to switch to an online format during the spread of COVID-19. If restrictions on holding in-person events continue due to a prolonged infectious disease outbreak, this, combined with reduced recruitment motivation in certain industries, may adversely affect the Group's business results and financial condition. This has been designated as a risk management item under the "Ethics and Compliance Regulations," and a system has been established to determine event formats based on the latest information.

Due to the nature of its business, the Group handles a large volume of personal information—addresses, names, contact details, etc.—of Kosen students and university students engaged in job hunting. If a leak occurs, it could significantly undermine the trust of customers and school officials, potentially causing a material impact on business development and performance. The Group obtained the Privacy Mark (Certification No. 18860278) in May 2020 and has established a management system including security inspections by third-party organizations, but complete prevention is difficult.

The Group has filed a notification as a telecommunications carrier under the Telecommunications Business Act, and laws and regulations governing internet-related businesses have been frequently revised and added to in recent years. If regulatory tightening that constrains business operations occurs due to changes in social conditions or other factors, it may affect the Group's financial condition and business results. While the Group currently is not aware of any tightening of regulations, it has stated a policy of continuing internal education and system development going forward.

Enhancing the functionality and security of the "Web Joint Briefing Session Site" and "Corporate Information Site (Kosen Plus)" is essential to maintaining competitiveness, and if system development does not proceed according to the initial plan, it may affect business results and financial condition. The Group handles upstream processes such as requirements definition and functional design in-house, and has built a speed-focused development system in collaboration with trusted external contractors, but risks associated with reliance on external contractors remain.

In the job information industry, the pace of technological innovation—such as AI-based matching functions and web interview systems—is rapid, and a delayed response to change could lead to a decline in competitiveness. Responding to this may also require substantial costs such as system investment and personnel expenses, posing a risk to business results and financial condition. The Group strives to build a system for keeping abreast of the latest technology trends and to secure and train excellent system personnel, but difficulty in securing personnel may constrain its ability to respond.

With a small organization of 73 employees (as of July 31, 2025), if recruitment of necessary personnel does not proceed as expected, or if trained officers and employees leave the company, this may directly affect business development and performance. While the Group seeks to improve retention rates by setting a salary model that takes into account the salary levels of competitors and securing a sufficient recruitment budget, there is also a risk that in phases of rapid increase in workload, the increased burden on officers and employees could affect operational efficiency.

Koji Tanaka, the founder and Representative Director and President, plays an important role in formulating and executing management strategy, and if he becomes unable to perform his duties for any reason, this may affect business development and performance. He is also the largest shareholder, holding 62.49% of issued shares (excluding treasury shares), and his investment behavior could affect business operations, the market price of shares, and trading conditions. While the Group is strengthening its organizational structure to reduce dependence on a specific individual, a high degree of dependence continues at present.

The number of potential shares from stock acquisition rights granted as incentives to officers and employees corresponds to 2.2% of the total number of issued shares as of the end of the consolidated fiscal year under review. If these are exercised, the value of shares held by existing shareholders and their voting ratio may be diluted. While the Group indicates that the Representative Director's shareholding ratio is expected to relatively decline in the future due to the implementation of incentive plans for officers and employees and the building of a shareholder base in line with business expansion, dilution risk continues to exist.