MIXI Group recognizes that the following risks could have a great effect on investors’ decisions. It should be noted that future concerns are based on the Company’s judgment as of the submission date of the 27th Annual Securities Report (June 19, 2026) and may differ from actual results due to inherent uncertainty.

1. Business environment-related risk

(1) Mobile market

MIXI Group provides various services via smart devices and the expansion of the mobile-related market is a basic condition for business development. However, the introduction of new legal regulations, technical innovation, changes in trends at communications carriers, and other factors may cause rapid and significant changes in the mobile-related market.

(2) Competition

The various services we provide via smart devices are facing severe competition from companies in both Japan and overseas. Heightened competition and the cost of countering this competition may have an impact on the Group’s business, performance, and financial position. If MIXI Group’s users start spending more time on competing services, the demand for our services may decrease.

(3) Technical innovation

Technical innovation and changes in customer needs are rapid in the Internet industry, and new services are being introduced one after another. If MIXI Group is unable to respond to change appropriately and in a timely manner, our competitiveness may decline despite securing outstanding engineers and adopting cutting-edge technology in research and systems.

2. Business-related risk

(1) Response to changes in user tastes, interests, and concerns

The main users of our services are ordinary mobile users, including young people, and user acquisition,user retention, frequency of use, and the amount of money spent are greatly affected by changes in user tastes. If MIXI Group is unable to accurately identify user needs and provide content that satisfies them in an appropriate and timely manner, the appeal of our services to users may decline.Sales of paid content in games provided by the Digital Entertainment segment account for the majority of Group revenue, and there is a significant dependence on sales of a specific title (MONSTER STRIKE).
Therefore, a decline in the competitiveness of that title could cause a decrease in user numbers, the percentage of spending users, and in purchases of paid content, etc.Moreover, if the popularity of our newly developed titles and the amount of spending do not progress as anticipated, it may have an impact on our Groupʼs businesses, performance, and financial posit

(2) Dependence on external enterprises for user acquisition

Services in the Digital Entertainment segment are provided via platform providers such as Apple Inc. and Google LLC, but in the event that maintaining agreements with these providers becomes difficult or changes arise in regard to their operational policies,fees, etc., it may impact the Groupʼs businesses, performance, and financial position. Furthermore, we contract operations to various external enterprises for the development and provision of services, and if relationships with those external enterprises were to deteriorate, it may pose a problem for the maintenance of and new developments for our services.

(3) Global expansion

IXI Group is unable to address potential risks,including the differences in local laws and regulations,political and social circumstances, culture, religion, user preferences, local commercial practices, and exchange rate fluctuations, expected outcomes may not be achieved. When releasing smart device apps to global markets, MIXI Group and its services may not be as accepted as they are in Japan and could be exposed to user criticism.

(4) Trust and social confidence in MIXI Group and MIXI Group’s products, services, and businesses

Unsubstantiated rumors among users may damage the reputation and trust of MIXI Group and the services the Group provides. This, together with inappropriate or illegal behavior on the part of some malicious users, may cause a reduction in the safety and reliability of services and a decrease in the number of users.
In addition, if an external enterprise to which operations are contracted leaks personal information or commits some other illegal or inappropriate act, the reputation of MIXI Group or its services may decline.
MIXI Groupʼs brand value may also decline if the Group is unable to make the investments needed to maintain and enhance its brand value or if a competitor establishes a more competitive brand.We have established the following system to ensure that managerial decisions take into consideration this kind of reputational and compliance risk.

Establishment of a risk management system and Risk Management Committee

We have appointed a corporate officer in charge of risk management and established our Compliance Operations in order to build a Group-wide risk management system that can take a complete overview of the Groupʼs risk situation and establish a swift response to any incidents that occur. We have also set up the Risk Management Committee, overseen by the corporate officer in charge of risk management, as a body for defining and evaluating risks and considering countermeasures across every sector of the organization when launching new businesses or conducting M&A. The results of the deliberation by the committee will be provided as feedback to relevant business divisions, the Board of Directors, and others, with the aim of improving risk management and compliance system.

3. Business promotion system-related risk

(1) Securing and developing human resources

If securing and developing outstanding human resources, such as the leaders that become necessary as business expands, does not proceed as planned, the MIXI Groupʼs competitiveness may decline and business expansion may be restricted.

(2) Internal management systems

If the development of adequate internal management systems fails to keep pace with rapid business expansion, etc., the appropriate operation of business and the development of management systems may become difficult.

(3) Information management system

The possibility of leaks, tampering, improper use, etc., of personal and other information held by MIXI Group cannot be completely ruled out. In consideration of this, MIXI Group is enrolled in insurance that covers leaks of personal information, but this may not be able to completely compensate for all such losses. If a situation like this were to arise, the burden of considerable costs for an appropriate response, claims for compensation for damages, and a decline in confidence in MIXI Group, etc., may occur.

4. System-related risk

(1) Continuous equipment and systems investment accompanying business expansion

MIXI Group plans continuous capital expenditure in systems infrastructure, etc., to prepare for future increases in users and access volume. However, if there is a sharp increase in the number of users and access volume exceeding forecasts, it is possible that we could be forced to change the timing, content, and scale of capital expenditure, increasing the burden of capital expenditure and depreciation costs.

(2) Systems failure and natural disasters

Computer systems may fail due to various factors that cannot be predicted, including temporary overloads due to sudden increases in traffic,power outages, software bugs, failures of external linked systems, computer viruses and external intrusions into computers by illegal means, natural disasters, and accidents.

5. Legal regulation-related risk

MIXI Group’s business is subject to various laws and regulations, as well as the guidelines of regulatory agencies. In particular, we recognize the notification obligation as a telecommunications service provider, the registration and notification obligations under the Payment Services Act regarding prepaid payment instruments such as in-game currency, and changes in legal regulations concerning internet services for minors are risks that could directly impact our Group’s business operations. Furthermore, in overseas markets where we operate sports betting services, we are subject to the laws and regulations of each country. It is possible that the Groupʼs businesses could be subject to new restrictions or that existing regulations could be strengthened as a result of the establishment or revision of these laws and regulations, the cancellation of approvals or imposition of penalties by regulatory agencies, or the establishment or revision of new guidelines or voluntary regulations.

6. Intellectual property rights-related risk

Accompanying the possibility that IP rights which MIXI Group has not recognized could already be established or that new IP rights could be established,it is possible that MIXI Group could be subject to claims for compensation for damages or injunctions due to infringement of the IP rights of third parties or that there could be claims against MIXI Group for royalties for the IP rights. Furthermore, it is also possible that the usage of IPs in open-source software we use in systems development may be restricted for unforeseeable reasons.

7. Investment and lending-related risk

As we invest in expanding our business portfolio, we expect to realize business synergies between individual investee companies and MIXI Group or contributions to profits by investee companies. However, an impairment loss may be recorded depending on the performance of investee companies, or anticipated synergies not being realized. Furthermore, in the case of minority investment, it is possible that the management teams of investee companies could make decisions that do not align with the intentions of MIXI Group, or that we would be forced to sell our equity in their companies.
In addition, it is possible that investment capital cannot be recovered if an unlisted company into which an investment partnership (fund) invests suffers a decline in performance.

8. Operational alliance and M&A-related risk

Regarding the implementation of operational and capital alliances and M&A with companies that are highly compatible with MIXI Group’s services, if integration with an acquired company or the development and strengthening of relations with an alliance partner do not progress as planned, or if the business synergies, etc., initially anticipated due to the integration or alliance cannot be obtained, or if the operational alliance in question is dissolved for any reason, it is possible that profit commensurate with investment, time, and other expenses may not be returned.

9. New business-related risk

If additional expenditure arises when creating and developing new services and new businesses, it is possible that profitability may decline. Also, in cases where MIXI Group has limited experience concerning a new service or business, operations may not be able to proceed smoothly due to this lack of experience.If the development of new services and businesses does not proceed as planned, or if plans are canceled, or if the new businesses are not able to achieve their anticipated profitability, it may affect MIXI Groupʼs businesses, performance, and financial position.

10.Trends in financial results

MIXI Group will continue to implement measures to maintain and improve the profitability of MONSTER STRIKE in Japan, launch this game in emerging markets overseas, implement growth strategies for our Sports and Lifestyle businesses, and strive to maintain and promote user engagement with Group services. However, if we are unable to implement these measures in a timely and appropriate manner, or if such measures prove ineffective, or we are unable to maintain or promote user interest for any other reason, it may have an impact on our Groupʼs businesses, performance, and financial position.