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About Us
Business Risks
(As of June 17, 2025)
The risks that may impact Group operating results that we recognize are as below. There may also be risks exceeding our expectations that are not included below which could impact the Group's operating results should they materialize. Any forward-looking statements in this text are based on the understanding of the Group as of date that the Annual Securities Report was submitted.
1. Overall management
| Risk item | Summary | Main measures |
|---|---|---|
| Compliance with and violation of laws and ordinances | ・Failure of TSUBURAYA FIELDS HOLDINGS INC. and its Group management and employees to comply with current or future laws, regulations, and rules may result in damaging the Group's corporate trust and brand images, and compensation claims. | ・We are working towards further improvement of corporate ethics and compliance with laws and ordinances by holding training on harassment and compliance, establishing an internal whistleblowing system (internal and external), and securing independence of internal reporting from management and protecting whistleblowers by providing toll-free call regulations. |
| Information security | ・Cyber-attacks and unauthorized access by outside parties, virus and malware infections, and information system failures leading to loss, damage, or temporary suspension of business activities could impact the Group's performance. ・Outside leaks of personal information may lead to loss of trust in the Group or compensation claims. |
・The Group is working to strengthen information security measures, implement training and awareness-building activities for management and employees, and thoroughly engage in information management. |
| Investments | ・During joint projects with third parties, M&A, and acquisitions of IPs, the Group's performance may be impacted if we are unable to achieve expected objectives, like anticipated increases to business earnings or strategic targets. | ・We are making proper considerations during decision-making to avoid risks by accounting for matters like future investment profitability. |
| Disasters | ・Uncertain factors like spreading diseases and wars which impact the domestic and international economy as well as consumer activities may impact the Group's performance. ・Additionally, earthquakes, fires, floods, and other natural disasters damaging offices and equipment as well as injuring employees and their families may lead to directly or indirectly impacting the Group |
・We are working towards thorough implementation of sanitation management and measures to prevent the spread of diseases. ・We are strengthening cooperation between Group companies under the leadership of TSUBURAYA FIELDS HOLDINGS INC. to identify and reduce risks under normal circumstances and prevent crisis, and striving to set up and maintain an emergency response structure when a major crisis arises. ・We are striving to set up and maintain an immediate response system during disasters, such as by creating a disaster response manual and Business Continuity Plan (BCP), and establishing a system to confirm employee safety. |
2. Legal regulations and market environment surrounding the Amusement Equipment Business
In the planning, development and sale of PS that the Group is involved in, we are required to strictly follow legal regulations such as Act on Control and Improvement of Amusement Business and Rules of the National Public Safety Commission Rules for the Certification and Type Approval of Amusement Machines. Any major changes in these legal regulations may impact the Group's sales of PS and operating results.
Therefore, the Group is strictly following the various legal regulations and standards concerning PS to promote initiatives for sound development of the industry. We are also conducting thorough marketing using our nation-wide sales network to accurately identify potential needs globally and working towards realizing products and services that customers will look forward to.
3. Overseas expansion of the Content and Digital Business
The Group is promoting our global content business led by TSUBURAYA FIELDS HOLDINGS INC. which owns IPs such as Ultraman.
There are many possible risks in the overseas expansion of content, including geopolitical risks such as unstable political and economic conditions, risks arising from expressions and depictions in language, culture, and commercial practices involving the expressions in various types of content, risks arising from changes in legal regulations, risks of intellectual property infringements like sale of counterfeit products, and risks involving IT infrastructure including networks. If any of these risks were to materialize, they could impact the operating results of the Group.
As a countermeasure to these risks, the Group closely shares information with overseas subsidiaries and local distributors and conducts business while identifying the market trends in each country. For risks in intellectual property rights, the Group takes firm legal actions against any infringements, and we are continually strengthening measures against counterfeit products.
