Risks of Contingent and Unrecognized Liabilities, Failure to Achieve Expected Benefits, and Goodwill Impairment Following an M&A Transaction

「If contingent or unrecognized liabilities, compliance issues, or other matters are discovered after M&A, or if the Group fails to achieve the earnings or benefits initially expected because of deteriorating market conditions or significant changes in the competitive environment, or if goodwill is impaired.」

「The Group identifies active M&A as one of the growth strategies for the DX Promotion Business, executes M&A every fiscal year, and plans to continue this strategy. Before executing M&A, the Company’s specialist departments and external specialists conduct detailed due diligence, carefully investigating and analyzing target companies from multiple perspectives, including synergies with the Group, business plans, financial condition, and contractual relationships. However, if contingent or unrecognized liabilities, compliance issues, or other matters are discovered after M&A, or if the Group fails to achieve the earnings or benefits initially expected because of deteriorating market conditions or significant changes in the competitive environment, or if goodwill is impaired, the Group’s performance and financial condition could be affected.」