Livero Inc.

The Group generates revenue from new-life support services associated with corporate transfers, and if a deterioration in economic conditions or changes in corporate relocation policies lead to a decrease in transfers involving moving, this will directly affect the Group's financial position and operating results. The Group's high dependence on regular corporate personnel transfers means its revenue is highly vulnerable to changes in the external environment. In the Annual Securities Report, this risk is rated as "high" likelihood and "large" impact, making it the risk assigned the highest likelihood among the disclosed risks.

There are multiple companies operating similar businesses in the moving-related industry, and while the Company believes it maintains an advantage through service characteristics, track record of implementation, and its network with businesses related to new-life services, if sufficient differentiation is not achieved or competition intensifies due to new market entrants, this will affect business performance. In the Annual Securities Report, this risk is rated as "medium" likelihood and "large" impact.

The number of households and the number of households relocating in Japan overall is on a declining trend, and since the Group operates in the single segment of the "Relocation Support Business," it is directly exposed to the impact of market contraction. If the decline in the number of households and relocating households exceeds expectations, or if the Group is unable to secure market share due to intensified competition, this may affect its financial position and operating results. In the Annual Securities Report, this risk is rated as "low" likelihood and "large" impact.

The Group handles personal information of users as well as third-party personal information held by users, and if unauthorized access or intentional or negligent leakage of information by related parties occurs, this could result in loss of trust and losses from damage compensation. While the Group has implemented measures such as obtaining Privacy Mark certification, establishing personal information protection regulations, and monitoring through internal audits, it is difficult to completely eliminate this risk. In the Annual Securities Report, this risk is rated as "low" likelihood and "large" impact.

The Group's business is based on the internet environment, and if a system failure occurs due to access concentration, human error, computer viruses, cyberattacks, natural disasters, or other causes, this could disrupt business operations. The Company obtained ISMS certification in March 2024 and has implemented measures such as regular vulnerability assessments and the introduction of security software, but the risk of failures exceeding expectations remains. In the Annual Securities Report, this risk is rated as "low" likelihood and "large" impact.

The "Relocation Support Business" is subject to multiple legal regulations, including the Building Lots and Buildings Transaction Business Act, the Telecommunications Business Act, the Act on Rental Housing Management Business, the Employment Security Act, and the Travel Agency Act. If a license is revoked or a renewal is denied due to a legal violation or other cause, this would significantly disrupt business operations. The Legal and General Affairs Department takes the lead in coordinating with outside experts to maintain a compliance framework, and as of now no license revocation or similar event has occurred. In the Annual Securities Report, this risk is rated as "low" likelihood and "large" impact.

Representative Director and President Hidetoshi Kashima and Senior Managing Director Naoka Yokogawa are founders and major shareholders of the Company, and play important roles in determining management policy and business strategy. If, for any reason, either of them becomes unable to continue their duties, this may affect the Company's financial position and operating results. While the Company is working to reduce this dependence by strengthening information sharing among officers on the Board of Directors and strengthening the management structure, dependence on these two individuals remains high at present. In the Annual Securities Report, this risk is rated as "low" likelihood and "large" impact.

In the fiscal year ended December 2025, Last One Mile Co., Ltd. accounted for 26.9% of total net sales and SoftBank Corp. accounted for 16.3%, resulting in a structure in which the top two customers together account for approximately 43.2% of net sales. If contract termination or changes in trading terms occur with these customers, the impact on business performance would be significant. While the Company aims to reduce this risk through expanded sales to existing customers and development of new customers, the current level of dependence remains high.

Sales are concentrated in March and April, the peak season for corporate transfers. In the consolidated fiscal year under review, net sales for the first quarter (January-March) were ¥1,246,918 million and for the second quarter (April-June) were ¥1,224,884 million, together accounting for 56.7% of full-year net sales of ¥4,364,484 million, while in the third and fourth quarters, operating profit may be at a low level or an operating loss may occur due to fixed cost burdens and upfront investments. It is difficult to judge the full-year outlook based solely on the results of a specific quarter, and the structure is such that first-quarter performance has a significant impact on full-year results. In the Annual Securities Report, this risk is rated as "medium" likelihood and "medium" impact.

Securing, developing, and retaining excellent human resources is a key challenge for achieving sustained growth, and if the Company is unable to secure personnel as planned or if excellent personnel leave the Company, this will affect business performance. The Company is implementing measures such as actively recruiting new graduates and mid-career hires, and improving in-house training, personnel systems, and benefits, but the risk remains against a backdrop of intensifying competition in the labor market. In the Annual Securities Report, this risk is rated as "medium" likelihood and "medium" impact.