Helpful Info
About Us
Business Risks
Risks Related to Our Business and Management Status
(As of June 20, 2024)
The following are risks that we recognize as potentially affecting the operating results of our group (the reporting company and its consolidated subsidiaries; the same hereafter). In addition, other than the risks described below, if risks that exceed our group’s expectations materialize, our group’s operating results, etc. may be affected. Unless otherwise indicated, forward-looking statements in the text are based on our judgment at the present time.
1. Overall management
| Risk Item | Summary | Main measures |
|---|---|---|
| Compliance and legal violations | ・Failure of our and our group’s executives and employees to comply with current or future laws and regulations could result in damage to our group’s social reputation and brand image and damages claims | ・Establish compliance guidelines, establish a compliance promotion system, and implement education and awareness-raising for executives and employees in an effort to further improve corporate ethics and comply with laws and regulations |
| Information security | ・Impairment or temporary suspension of business activities may affect the group’s performance due to cyber-attacks or unauthorized access from external sources, intrusion of viruses or malware, or malfunction of information systems ・External leaks of personal information, etc. may damage the creditworthiness of our group and result in damages claims |
・Strengthen information security measures, educate executives and employees, and ensure thorough information management |
| Investments, etc. | ・Our inability to achieve our intended objectives, including strategic objectives and planned increases in business revenues, in connection with joint ventures with third parties or M&A or IP acquisitions, which could have an impact on our group’s results of operations | ・When making decisions, take into account the profitability of the investment in the future and conduct sufficient deliberations to avoid risks |
| Disasters, etc. | ・Uncertain factors, such as the impact on domestic and overseas economic activities and consumer activities associated with the global spread of coronavirus disease (COVID-19), may affect the group’s performance ・Damage to offices, facilities, employees and their families due to natural disasters such as earthquakes, fires, floods, etc. may have a direct or indirect impact on our group |
・Efforts are made to strengthen companywide measures to prevent infectious diseases, to collaborate with allied manufacturer in the PS division, to strengthen collaboration between the distribution and development divisions, and to improve merchandise capabilities
・Efforts are made to establish and maintain an immediate response system in the event of a disaster, such as the preparation of disaster response manuals and business continuity plans (BCPs) and the establishment of a system for confirming the safety of employees |
2. Legal and market conditions in the pachinko/pachislot machine industry
In planning, developing, and selling pachinko/pachislot (hereinafter, “PS”) machine, which our group are engaged in, our group are required to strictly enforce legal regulations, including the Act on Control and Improvement of Amusement Business and the National Public Safety Commission’s regulations for the verification of licenses, formats, and other aspects of PS machines. Significant changes in these laws and regulations may affect the group’s sales and operating results.
For this reason, our group is promoting initiatives for the sound development of the PS machine industry by strictly implementing PS machine in accordance with various legal regulations and standards. In addition, through marketing utilizing our nationwide sales network, we are accurately grasping the potential needs of the society and working to realize the merchandise and services that customers look forward to.
3. Overseas expansion of content
We are promoting a global content business centered on Tsuburaya Productions Co., Ltd., which owns Ultraman and other IP.
In the overseas development of content, in addition to geopolitical risks such as unstable political and economic conditions uncertainty, risks arising from differences in language, culture and business practices regarding the expressions of various content, risks arising from changes in legal regulations, risks arising from the infringement of intellectual property rights, including the sale of counterfeit products, and risks arising from networking and other IT infrastructures may arise. In the event that these risks materialize, our Group’s operating results and other factors may be affected.
As a countermeasure to these risks, our group closely shares information with overseas subsidiaries and local distributors and conducts business while ascertaining market trends in each country. In addition, we will respond firmly to risks related to intellectual property rights on the premise of legal measures, and we will continue to strengthen our measures against counterfeit products.
