Axis Consulting Corporation

Due to the declining working-age population resulting from the falling birthrate and aging population, as well as changes in the labor market, if the Company is unable to secure human resources that satisfy job openings, this may have a material impact on business performance through a decrease in the number of successful placements. As a countermeasure, in addition to acquiring new registrants through SNS advertising, the Company plans to conduct proactive advertising activities, including TV commercials, in conjunction with the corporate rebranding and service renewal in July 2025, to improve brand recognition.

The Company conducts a large volume of business with consulting firms, and its top client, PwC Consulting LLC, accounts for 25.2% of total sales, resulting in a high degree of dependence on a specific business partner. If smooth continuation of business becomes difficult due to unforeseen changes in policy or deteriorating performance of this client, it may have a significant impact on business activities and operating results. As a countermeasure, the Company aims to relatively reduce this dependence by expanding services targeting business companies other than consulting firms.

In addition to direct registrations via its own website, the Company supports job seekers by utilizing job-change websites operated by other companies. If such job-change websites were to be suspended or discontinued, the number of job seekers that can be supported would decrease, potentially having a significant impact on business performance. As a countermeasure, the Company aims to increase the number of members registering directly with the Company through proactive advertising activities to improve brand recognition.

The Company holds personal information of a large number of job seekers, and if an external leak occurs for any reason, it may have a significant impact on operating results and financial condition due to loss of trust and the filing of damages lawsuits, among other consequences. As a countermeasure, the Company manages personal information based on its privacy policy, conducts employee training, and strengthens information security through its Privacy Mark certification (obtained in October 2006, renewed every two years).

The Company operates as a fee-charging employment placement business operator under the Employment Security Act, with permission from the Minister of Health, Labour and Welfare (valid until June 30, 2030). If the Company falls under grounds for disqualification or violates laws and regulations, its business may be suspended or its permission revoked, potentially having a severe impact on business performance and financial condition. In addition, amendments to or changes in the interpretation of related laws and regulations due to changes in the social situation surrounding the labor market may also have an adverse effect on the Company's business.

There are numerous companies offering services similar to recruitment placement and skill-sharing, and if the Company's competitiveness declines due to new value-added offerings by competitors, this may affect operating results and financial condition. As a countermeasure, the Company is working to strengthen the functions of each service and improve inter-service collaboration in the high-end human resources domain, while promoting a recurring business model centered on a database, through investment in digital platforms.

If a slowdown in the domestic economy or deterioration in hiring trends occurs, it may affect the performance of the recruitment placement and skill-sharing businesses. As a countermeasure, the Company develops services centered on the high-end human resources domain, which is relatively less susceptible to economic fluctuation risk, while also diversifying risk by expanding its client base across a variety of industries.

Securing and developing excellent personnel is a key challenge for business expansion, and if the Company is unable to secure and develop the necessary personnel at the appropriate time, or if existing personnel leave the Company, this may affect operating results and financial condition. As a countermeasure, in addition to strengthening recruitment and promoting development through in-house training programs, the Company plans to introduce personnel systems that support diverse working styles, working to secure and retain personnel.

Since the Company's information systems are built using external cloud services, if a system failure or unauthorized access by a malicious third party occurs, it may cause disruptions to service operations and affect business performance. As a countermeasure, in addition to conducting regular backups and establishing an internal system to respond in the event of a failure, the Company obtained ISO27001 certification in June 2025 and is working to improve the effectiveness of its IT controls.

If stock acquisition rights granted as incentives to officers and employees are exercised, the value of shares held by existing shareholders may be diluted. As of the end of the fiscal year under review, the number of potential shares from stock acquisition rights was 41,620 shares, equivalent to 0.8% of the total of 5,090,770 shares, comprising issued shares and potential shares.