Impact of System Failures and Unauthorized Access on Business Operations

「Revenue in Japan decreased 7.2% on a Japanese yen basis. This was because, although Indeed PLUS, which is part of the job advertising services, performed steadily, the impact on the business was misjudged during the system migration process accompanying the organizational integration in the recruitment services business.」

「In the Group's Matching & Solutions business, the Group provides SaaS solutions such as Air Business Tools as services designed to improve clients' management and operational efficiency with respect to functions such as accounting and payments required by companies and stores. If system failures or other issues, or service interruptions, occur, the Group may be required to bear liability for damages to individual users or corporate clients, or make compensation payments.」

「In addition, vulnerabilities across the industry, including the Log4j vulnerability reported in December 2021, may affect the Group's business, operating results and other matters.」

「Going forward, the Group plans to expand SaaS solutions such as Air Business Tools, a comprehensive solution designed to improve the operational efficiency and productivity of clients, including small and medium-sized businesses, in the Media & Solutions business. Accordingly, these risks are expected to increase.」

「Some of the services provided by the Group cover the full range of key functions required by clients to operate their businesses, including online user acquisition, online reservation management, POS registers and payments. If defects or other issues arise in the applications, clients may suffer significant losses, and the Group's users' or clients' confidential or personal information may be lost or leaked.」

「During the first quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「If communications networks are disrupted by disasters, accidents, or other events, if system failures occur due to defects in or accidents involving hardware or software, or if unauthorized access by third parties occurs, our group’s performance and business operations may be adversely affected.」

「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「During the six months ended the second quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「If communications networks are disrupted by disasters, accidents, or other events, if system failures occur due to defects in or accidents involving hardware or software, or if unauthorized access by third parties occurs, our group’s performance and business operations may be adversely affected.」

「If communications networks are disrupted by disasters, accidents, or other events, if system failures occur due to defects in or accidents involving hardware or software, or if unauthorized access by third parties occurs, our group’s performance and business operations may be adversely affected.」

「If communications networks are disrupted by disasters, accidents, or other events, if system failures occur due to defects in or accidents involving hardware or software, or if unauthorized access by third parties occurs, our group’s performance and business operations may be adversely affected.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「If communications networks are disrupted by disasters, accidents, or other events, if system failures occur due to defects in or accidents involving hardware or software, or if unauthorized access by third parties occurs, our group’s performance and business operations may be adversely affected.」