Dependence on a Specific Executive and Creator

「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」

「During the interim consolidated accounting period under review, there were no newly arising matters concerning business and other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」

「However, if Fukutomi were to leave the Company and establish a company competing with the Company, although the Company believes it could secure a competitive advantage by leveraging its first-mover advantage and increasing awareness of Shikigaku, this could affect the Group’s business development, financial position and operating results.」

「During the first nine months of the fiscal year under review, there were no newly arising matters concerning business and other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」

「However, if Fukutomi were to leave the Company and establish a company competing with the Company, although the Company believes it could secure a competitive advantage by leveraging its first-mover advantage and increasing awareness of Shikigaku, this could affect the Group’s business development, financial position and operating results.」

「During the first nine months of the fiscal year under review, there were no newly arising matters concerning business and other risks, nor any material changes to the business and other risks described in the securities report for the previous fiscal year.」

「In addition, if Kenji Fukutomi (福冨 謙二), the creator of the Shikigaku management theory and head of the Company’s Shikigaku Research Institute, were to leave the Company, this would not impede the Company’s business because the transfer of Shikigaku-related expertise has been completed and the related rights belong to the Company.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative first quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「The company currently has a high degree of dependence on both individuals (their combined sales accounted for 29.4% of total sales in the fourth fiscal year), and does not anticipate their departure from the company. However, if either individual retires or becomes unable to perform their duties for any reason, or if it becomes difficult to secure and develop sufficient personnel appropriate to the company’s business expansion, this may affect the Group’s business development, financial position and operating results.」