Legal, safety, qualified-personnel and store-lease risks in the beauty business

「The Group’s beauty business operates beauty salons that primarily provide hair and makeup services. The business is regulated by laws including the Beauticians Act, and although the Group strictly files notifications with health centers and complies with hygiene-management standards, a business suspension resulting from a legal violation, skin problems caused by cosmetics used in treatments or accidents involving beauty equipment could result in compensation costs and loss of social credibility. Securing personnel with qualifications such as beautician licenses is also essential to continuing the business, and difficulty recruiting qualified personnel could disrupt store operations. In addition, refusal to renew leases for stores or sharp increases in rent could affect the Group’s financial condition and operating results.」