BSN MEDIA HOLDINGS,INC.

The Broadcasting Business, which is the core of the Group, generates revenue that is strongly linked to the domestic economy, and spot advertising on radio and television in particular is heavily influenced by the business performance of advertiser companies. Regardless of whether the economy recovers, if structural changes progress in advertisers' marketing methods, this could lead to a decline in broadcast advertising revenue and have a material impact on business performance.

In addition to terrestrial, BS, CS, and cable television, the spread of internet broadband distribution services has intensified competition among advertising media. If competition with these media further intensifies, the dispersion of viewers and advertisers may progress, which could adversely affect the Group's advertising revenue and business performance.

The Broadcasting Business is subject to regulation under laws such as the Radio Act and the Broadcast Act. If significant changes to regulations occur as a result of ongoing legal reforms regarding the future of broadcasting and telecommunications, this could result in operational constraints and additional costs, potentially affecting business performance. The Company intends to comply with these laws and regulations to ensure business continuity.

The subsidiary Niigata Broadcasting is a member of the JNN network, whose key station is TBS Television. Cooperative relationships in news gathering, programming, and sales are essential for maintaining the corporate value of the Company as a local broadcasting station. If changes occur in the business operations of TBS Television or TBS Holdings that impair the value of the network, this could have a material impact on the Group's competitiveness and business performance.

The occurrence of large-scale natural disasters such as earthquakes and typhoons, or infectious diseases such as COVID-19, could lead to a contraction of business activities and adversely affect operating results and financial condition. The risk of unexpected damage due to the increasing scale of disasters associated with climate change is also rising. Although the Group has established safety measures and emergency response manuals to ensure business continuity, it states that it is difficult to avoid all risks.

The Group holds important business information as well as personal information and information about business partners, and has strengthened information management and conducted employee training to address risks of theft, loss, and misappropriation. The Group has also implemented countermeasures against cyberattacks; however, if an attack exceeding expectations results in the destruction or falsification of important data or a system outage, this could affect operating results and financial condition.