Business constraints arising from internet-related laws and regulations and litigation

「Under the Act to Strengthen Cybersecurity Measures and the related legislation enacted in May 2025, known as the Active Cyber Defense Act, specified social infrastructure operators are expected to be required to register assets of specified electronic computers and report cyber incidents, among other obligations.」

「Recently, so-called SNS-based investment scams and romance scams have become a social problem, involving methods such as directing victims from internet advertisements impersonating celebrities to social networking services and defrauding them of money. So-called dark recruitment, in which criminals are recruited through social networking services and other channels by offering or suggesting payment of high compensation, has also become a major social problem.」

「Our services Yahoo! Shopping and Yahoo! Ads have been designated as specified digital platform providers under the Act on Improving Transparency and Fairness of Specified Digital Platforms. With respect to information disclosure and the establishment of voluntary systems required under the Act, we are actively responding, including by seeking the opinions of outside experts, and have taken some measures ahead of the Act's enforcement. We will also continue making improvements with a strong focus on transparency and fairness, including for various former LINE services.」

「In light of developments overseas toward subjecting companies that provide digital platforms to increasingly stringent regulation, if regulations are strengthened in Japan and a Group company becomes subject to them, that company's ability to conduct its business smoothly may be impaired.」

「In addition, with regard to the issues identified in the Final Report on the Competition Assessment of the Digital Advertising Market published by the Headquarters for Digital Market Competition of the Cabinet Secretariat in April 2021, both ヤフー and LINE will pursue continuous improvement with a strong focus on transparency and fairness. However, if the government determines that these efforts are insufficient and subjects the companies to administrative measures under the Act, or if a report submitted to the government under the Act receives a low evaluation and the results are made public, the evaluations by business partners and general users, as well as the social standing of the Group, may decline.」

「In addition, ヤフー, another affiliated company of the Group, has been designated as a specified digital platform provider under the Act on Improving Transparency and Fairness of Specified Digital Platforms with respect to the Yahoo! Shopping service it provides.」

「In particular, the enforcement and amendment of laws and regulations, including the Antimonopoly Act, Telecommunications Business Act, Act on the Protection of Personal Information, Banking Act, Money Lending Business Act, Interest Rate Restriction Act, Payment Services Act, Travel Agency Act, Act on the Limitation of Liability for Damages of Specified Telecommunications Service Providers, Worker Dispatching Act and Subcontracting Act; new responses, including information disclosure requirements arising from the enactment of new laws intended to promote transparency and fairness among digital platform operators; and changes to accounting standards, tax systems and other regulations may affect the Group's management.」

「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「The enactment or amendment of laws and regulations may affect the Group's business, increase the costs of complying with laws and regulations, and affect the development of the internet industry.」

「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「During the 1st quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「The enactment or amendment of laws and regulations may affect the Group's business, increase the costs of compliance, and affect the development of the internet industry.」

「During the 3rd quarter of the current consolidated fiscal year, there were no material changes in financial position, operating results or cash flows, including any abnormal fluctuations, or in the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「The enactment or amendment of laws and regulations may affect the content of ヤフー's services and other operations, increase the costs of compliance, and affect the development of the internet industry.」