Risks Related to Local Laws and Regulations and Exchange-Rate Fluctuations Associated with Overseas Expansion

「In providing its services, the group conducts legal research and other activities through external legal counsel to address legal regulations that differ from those in Japan and works to avoid risks in advance. However, if it is unable to provide services as expected due to changes in local conditions or unique local regulations, this may affect the group’s business and results of operations.」

「The group provides its game applications to overseas users through platform operators outside Japan. In providing these services, the group conducts legal research and other activities through external legal counsel to address legal regulations that differ from those in Japan and works to avoid risks in advance. However, if the group is unable to provide services as expected due to changes in local conditions or unique local regulations, this may affect the group’s business and results of operations. In addition, payments for in-game items and other products sold by the group to overseas users are collected in local currencies through platform operators outside Japan and remitted to the group after conversion into Japanese yen. If a significant divergence arises between the exchange rate initially assumed and the prevailing exchange rate, this may affect the group’s operating results and financial position.」