NISSO HOLDINGS Co., Ltd.

Rising wage levels may increase personnel acquisition costs and maintenance costs, potentially significantly affecting consolidated results. Since the Group is a

While opportunities to utilize foreign personnel are increasing based on the business plan, insufficient work environment development may lead to increased turnover, legal violations, and class action lawsuit risks, potentially significantly affecting consolidated results. To respond to legal amendments and develop environments suited to each country's culture, the Group has established a dedicated department and utilizes licensed professionals.

Termination or reduction of contracts with major clients may significantly affect the Group's business results and the maintenance of employees' employment. In the comprehensive staffing services business, which accounts for 96.7% of net sales, dependence on automotive-related and electronic device-related clients is high, creating a significant risk from production fluctuations at specific clients. As countermeasures, the Group is promoting job change support through reskilling and expanding new clients.

In sales and recruiting activities utilizing social media, there is a risk that misuse or fraudulent conduct could spread negative reputation about the company, potentially significantly affecting consolidated results. The Group addresses this through continued manual development, thorough training, and ongoing monitoring of information.

The worker dispatching business, fee-charging employment placement business, and manufacturing contracting business are operated based on a wide range of laws and regulations, including the Worker Dispatching Act, the Employment Security Act, and the Labor Standards Act. If violations occur, business results may be affected by penalties from regulatory authorities or loss of social credibility. In addition, legal amendments may restrict business operations or require time to build response systems, which may also affect business results. Group companies have obtained licenses for general worker dispatching business and fee-charging employment placement business from the Ministry of Health, Labour and Welfare, and position legal compliance as the most important management matter.

In the Manufacturing/Production Staffing Services business, which accounts for the majority of net sales, the proportion of clients related to automobiles and electronic devices is high, and business results may be affected if these industries experience business downturns or large-scale production fluctuations. While efforts are being made to reduce bias by industry and company, the risk of sudden fluctuations in highly dependent industries remains.

The Group holds a large amount of personal information, including that of job seekers, and if intentional or negligent leakage or unauthorized use occurs, business results may be affected by pursuit of legal responsibility, including damages, and deterioration of social credibility. The Group implements internal operational systems based on its Basic Rules for Personal Information Protection, conducts regular training, and thoroughly strengthens information management.

The nursing care service business requires designation by the prefectural governor based on the Long-Term Care Insurance Act, and if personnel, facility, or operational standards cannot be met, or if fraudulent claims occur, designation may be revoked or suspended. In addition, the long-term care insurance system is revised every three years, and depending on the content of nursing care fee revisions, business operations may need to be reviewed, which may affect business results. The Group strives for appropriate business management through the development of various manuals, training, and strengthened management systems.

Nursing care services are required by law to be provided by qualified personnel, and if securing qualified personnel to meet staffing standards does not proceed as planned, it may become difficult to open new facilities or continue providing existing services, which may affect business results. While the Group is actively engaged in personnel acquisition and training, there is a risk that the industry-wide personnel shortage will continue.

As part of its growth strategy, the Group may continue to conduct corporate acquisitions, capital alliances, and business alliances, but if the initially anticipated effects cannot be achieved due to changes in the business environment or other factors, business results and financial condition may be affected. The Group has established a system for regular risk assessment by the Risk Management Committee and reporting to the Board of Directors.