P.10 Risks, Opportunities and Challenges

10 Risks, Opportunities and Challenges Business Risks - Budget cuts due to economic trends and seasonal fluctuations in performance Performance may fluctuate due to budget cuts during economic downturns and concentrated shareholder benefit point exchange periods. We work to stabilize our revenue base by developing new customers and increasing the ratio of stock-type revenue. - Intensifying competitive environment and technological innovation To respond to technological innovations such as AI, we are promoting the sophistication of our information infrastructure for capital markets and working to maintain and improve our competitive advantage through service development utilizing AI and blockchain. - Information management and system failures To prepare for information leaks and system failures, we strive to ensure safety and stability through information management based on PrivacyMark and ISMS certification, employee training, 24/7 monitoring systems, and system redundancy. Revenue Opportunities - Expansion of the individual investor base through "from savings to investment" The individual investor base is expanding due to the spread of the new NISA. This increases the need for shareholder benefits and engagement. We expect growing demand for services centered on the Premium Yutai Club. - Expansion of needs for IR and corporate value enhancement due to TSE market reforms Stricter listing maintenance criteria and requirements for management conscious of capital cost increase the need for IR/SR activities, shareholder management, and advanced information disclosure. This expands opportunities for our services. - Service advancement through AI and digital technology We are deploying new services such as AI-powered IR-port and Digital Yutai Club. This meets the growing need for efficiency and sophistication from information disclosure to dialogue. Key Management Issues 1. Talent Acquisition and Development We recruit and develop talent able to create AI- and DX-driven services, with deep capital market knowledge and IR/SR expertise. We strengthen our organization through expert hiring, professional training, and OJT-based onboarding. We also foster a culture that encourages challenges through fair, role-based evaluation and compensation. 2. System Stability and Investment We maintain stable 24/7 operations as critical information infrastructure for capital markets. We strengthen our safe, reliable service platform through server expansion to handle increased access, cloud-based infrastructure development, and continuous investment in system redundancy. 3. Information Management Enhancement As a company handling personal and important client information, we maintain a highly sophisticated information management system. We strengthen security and customer trust through strict operations based on PrivacyMark and ISMS (ISO27001), virtual-environment information management, and continuous internal training. 4. Governance and Internal Controls We build a fair, transparent governance system for sustainable growth. We enable rapid decision-making, strengthen audits, and manage company-wide risks through the Risk and Compliance Committee, reinforcing internal controls and corporate value as we grow. 5. New Business and Revenue Diversification We are expanding our revenue base to enhance corporate value by creating new AI- and digital-driven services. We aim to build a sustainable growth model by evolving into an offering-based business that leverages synergies with existing services, such as IR-port and Digital Yutai Club.