We view risk as "the uncertainty that may affect the achievement of our goals of sustainable growth and the enhancement of medium- to long-term corporate value.” Based on this, we effectively undertake risk-taking, which involves accepting factors that promote the achievement of these goals, and risk hedging, which involves addressing factors that may hinder them. By monitoring and reviewing these activities, we implement enterprise risk management (ERM).
ERM is promoted by the "Risk Management Committee," with the CEO serving as the Chief Risk Officer and the Corporate Officer in charge of the Legal and Compliance Division serving as the Committee chair.
The Risk Management Committee assesses risks across our entire organization from a comprehensive perspective. It directly manages significant risks that may affect us, while supervising the risk management activities conducted by each subsidiary or business execution department for risks other than significant risks. Through these efforts, we strengthen the systematization of our risk management framework.
The following is a summary of risks that we recognize as having the potential to significantly affect the investment decisions of investors. The following items are based on our judgment as of the end of the consolidated fiscal year ended October 2025, and since they include predictions about the future, they may not match reality. In addition, other matters not mentioned below may affect us.

Under our philosophy of "We create new forms of comfort and convenience by responding to the needs of today and anticipating the needs of tomorrow," we aim to further evolve as a transportation infrastructure service company. In December 2024, we announced the 2035 Medium- to Long-Term Vision "Evolve into a Mobility Service Platform Operator" and the FY2027 Medium-Term Business Plan. To achieve these goals, we promote the expansion, evolution, and integration of our four networks: people (members), cars (mobility), communities (destinations), and parking facilities. These plans are based on the information available to us at the time of formulation and certain assumptions considered appropriate. Given that they rely on assumptions and predictions about future events, they may be subject to changes due to various factors, including the risks described in this "Business Risks" section and may not be executed as planned.

Our primary business, Parking Business Japan, involves operating sublease-type parking lots, where we lease land and attached parking facilities from land and facility owners. Should a significant number of lease agreements be terminated, or if customer convenience declines, it may adversely affect our business operations and financial performance. Furthermore, rising land prices may prompt owners to sell (terminate leases) or increase rent, potentially reducing profitability. We strive to mitigate these risks by strengthening relationships with owners through community-focused operations, promoting development in areas less affected by land price increases, and enhancing customer convenience through the introduction of cashless payment systems and license plate recognition systems.

In the mobility business, we face competition not only from other companies in the same industry, but also from car leasing companies in terms of quality, price, service, etc. Depending on the circumstances of these competitors, it may adversely affect our business operations and financial performance. Additionally, increases in land rent for car-sharing locations could negatively impact profitability.
We leverage our dominant share in the domestic car-sharing market to provide highly convenient services. We will continue to expand our business scale and enhance our service offerings. Through ongoing promotional activities and sales initiatives tailored to regional characteristics, we will strive to maintain our competitive advantages and strengthen the stability of our revenue base.

We operate parking businesses in the United Kingdom, Australia, New Zealand, Singapore, Malaysia, and Taiwan. In some regions, due to specific business practices, long-term leases for parking lot properties with rent adjusted for inflation may be required. Under these conditions, if it becomes difficult to pass on costs appropriately, it may adversely affect our business operations and financial performance. Furthermore, unforeseen changes in tax systems, laws, regulations, and other factors in each region, as well as fluctuations in political and economic conditions, and market or exchange rate fluctuations beyond the scope of our forecasts may adversely affect our business operations and financial performance. We are working to optimize our business portfolio, which has been reliant on long-term contract parking, and reduce business risks. We are doing this by promoting the development of short-term contract parking lots tailored to each region's parking business environment, based on our domestic parking business strategy of “small-scale, dispersed, dominant operations.”

If governance and internal controls at overseas subsidiaries do not function adequately, there is a risk that the accuracy of financial reporting may be compromised.
We promote the establishment of internal controls enabling autonomous legal compliance and risk management, as well as the construction of an optimal governance structure. This includes setting up a global whistleblowing hotline, separate from local reporting channels, to enable direct reporting to our company. The objectives are to clarify various business processes, establish verification procedures, provide compliance training, and enable the early detection of fraud and compliance violations. Through these measures, we strive to identify risks overseas at an early stage and take specific and appropriate actions before they materialize.

We are developing businesses that are highly dependent on ICT systems, such as the provision of services to customers and related operations, and the importance of these systems will increase in the future. In the event of major disruptions to our systems or networks due to natural disasters, cyberattacks (including malware infection, unauthorized access, etc.), system failure (such as hardware malfunction, software defects), disruptions in communications and power supply, or if the development or implementation of new technologies or systems does not proceed as planned, or if unreliable systems are developed or introduced, it may become difficult to maintain business operations, and the resulting loss of trust may adversely affect our business operations and financial performance.
We utilize both on-premises data centers and cloud environments to implement system redundancy and data backup. Regarding backups, we ensure stable service operation by geographically distributing cloud and multiple data centers to mitigate risks from natural disasters and other events. We are also advancing efforts to establish automatic failover functions during outages and formulate disaster recovery (DR) plans, progressively strengthening these measures. Regarding the development and introduction of new technologies and systems, we have established a System Committee. This committee conducts risk assessments for significant system investments, enabling investment decisions and risk mitigation at the management level. To ensure quality during the development phase, we perform pre-verification and implement phased rollouts. When necessary, we also conduct reviews by external experts to build highly reliable systems.

We retain a vast amount of information on our customers, including membership information for the Times CLUB membership point program and Times CAR mobility service, and are required to properly manage such personal information under the Personal Information Protection Law and other similar laws and regulations in overseas countries.
In the event of large-scale information leaks or data tampering caused by cyberattacks such as unauthorized access or operational negligence, significant impacts on the business may occur due to loss of credibility, in addition to damages and response costs. Furthermore, if systems or data are encrypted and rendered unusable due to ransomware attacks or similar incidents, this could severely impact business continuity. We have established a cross-functional organization to formulate common security standards, including an information security policy, and conduct regular training and education for employees. We implement technical measures such as vulnerability management, access control, and encryption technology to prevent external attacks and internal misconduct. Furthermore, through collaboration with external specialized organizations, we obtain regular feedback to identify the latest threat trends and areas for improvement, striving for continuous enhancement.

We announced the 2035 Medium- to Long-Term Vision "Evolve into a Mobility Service Platform Operator" and the FY2027 Medium-Term Business Plan. To realize and achieve these goals, we have identified the “expansion, evolution, and integration of our four networks (people, cars, communities, and parking facilities)” as a key theme. We are formulating and implementing a human resources strategy to drive this forward. In our human resources strategy, we have established “productivity” as an indicator for maximizing human capital value. To enhance productivity, we are advancing “value creation” through expanding existing businesses and creating new ventures, promoting “efficiency and business process reengineering (BPR),” and improving ‘engagement’ to enable diverse talent to thrive. Furthermore, to drive these initiatives, we are implementing various HR measures under five key themes: “Individual Growth and Skill Enhancement,” “DX Promotion,” “Organizational Structure and Systems,” “Promotion of DEI and Health Management,” and “Group Philosophy Integration and Culture Development.” If the human resources strategy is not sufficiently embedded and executed, employee engagement and capability development may not progress. This could lead to insufficient productivity improvement and organizational strength enhancement, potentially making it difficult to realize the medium-to long-term vision and achieve the medium-term business plan.
We are advancing initiatives to ensure the effectiveness of human capital management through strengthened commitment from management, progress management of personnel measures, and continuous communication with employees to mitigate this risk.

• Human Resource Strategy

• Initiatives for Maximizing Human Capital Value

We raise funds for our operations through bank borrowings, bond issues, and other means. Should our business environment deteriorate, our credit rating be downgraded, or interest rates in financial markets rise, procuring funds on favorable terms may become difficult or impossible. This could result in increased funding costs and potentially negative impact our business performance and financial condition.
We aim to mitigate financing risks by strengthening the financial soundness of shareholders' equity, leveling debt repayment amounts, extending debt maturities, and securing long-term fixed interest rates through fixed-rate financing and derivative transactions such as interest rate swaps.

Our consolidated financial statements are presented in Japanese yen, and in preparing the consolidated financial statements, the financial statements of overseas subsidiaries denominated in local currencies are converted into yen. Consequently, significant fluctuations in exchange rates could negatively impact our business performance and financial condition. For some foreign currency-denominated liabilities, we strive to mitigate exchange rate fluctuation risks through derivative transactions such as currency swaps.

In the event of natural disasters such as earthquakes, tsunamis, floods, typhoons, heavy snowfall, or volcanic eruptions, damage to parking lots, mobility vehicles, or facilities like management centers may hinder the provision of services to customers. Additionally, significant costs may be incurred for repairs and replacements, which could negatively impact our business, performance, and financial condition. Furthermore, unforeseeable changes such as massive earthquakes or other catastrophic natural disasters, social and economic disruptions caused by the outbreak of terrorism or war, or the spread of serious infectious diseases could lead to restrictions on economic activity, customers refraining from going out, or employees being affected by disasters, suffering damage, or contracting illnesses. This could potentially prevent us from continuing our business operations and significantly impact our financial condition and business performance. We are working to mitigate the impact of such damage by diversifying the areas where parking lots and mobility services are deployed. We have established "Initial Response Guidelines" to ensure the safety and security of customers and employees, verify the damage at our locations, and prevent secondary disasters, as well as "Business Continuity Plan" to ensure the continuity of our business. We promote business continuity management through education and training based on these guidelines. Furthermore, in the event of a serious infectious disease outbreak leading to large-scale spread, we will rigorously implement infection control measures based on these guidelines to ensure the safety of our customers and employees. We will also take necessary steps to maintain appropriate business operations.

PARK24 GROUP Business Continuity Management System（PDF）

In the event of a major accident occurring in the services provided by us due to inadequate maintenance or inspection of facilities, equipment, or vehicles, failure to perform repairs or maintenance, or operational errors or inadequate guidance by service staff, compensation to customers may be required. Furthermore, a loss of social credibility could lead to a decline in service usage. Additionally, administrative penalties such as business suspension or license revocation could significantly impact business operations and financial performance.
We prioritize “ensuring safety” as our foremost task. We strive to prevent accidents and enhance safety by rigorously implementing regular inspections and repairs based on our own strict standards, in addition to inspections required by law. We also strengthen safety education and awareness for service staff, ensure rapid safety measures during accidents or incidents, investigate causes, and implement recurrence prevention measures. We continuously work to reduce risks through ongoing improvement.

Customer Responsibility

If human rights violations were to occur not only within our organization, but also in the entire business domain related to our business, including our business partners, our social credibility and brand value could be damaged, and our business and operating results could be adversely affected.
We have established "the Group Human Rights Policy" in line with the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the declarations of the International Labor Organization (ILO), and the principles of the United Nations Global Compact. In addition, we conduct our business operations in line with the Guiding Principles on Business and Human Rights, and internally conduct human rights-related employee education and awareness activities, periodic monitoring at management-level meetings, and, when necessary, conduct direct confirmation and investigation of external parties involved, etc. In addition, we are striving for appropriate management of these risks by conducting direct confirmation and investigations of external parties, as necessary.

Human Rights Initiatives

We procure some of the materials and other items required for business operations from external suppliers. If natural disasters, quality issues, supply shortages, or price increases occur in the suppliers' businesses and affect our supply, it may adversely affect business operations and financial performance. Furthermore, if suppliers encounter issues related to legal violations or human rights abuses, it may result in supply stoppages, delivery delays, or damage to our corporate image, potentially adversely affecting our operations and financial performance.
We promote supplier diversification and evaluate and select suppliers based on their legal compliance and respect for human rights at the time of each transaction. When starting new transactions, we require cooperation with our procurement guidelines in the basic contract, and after the transaction starts, we enhance communication with suppliers through surveys. Through these efforts, we strive to build an optimal supply chain and ensure stable procurement.

Supply Chain Management

As next-generation technologies advance and become widely adopted in our business areas, and as our customers' environmental awareness grows, there may be a need to introduce a substantial number of environmentally friendly vehicles, such as EVs, along with associated equipment like EV chargers. This could lead to higher capital investment and unique management costs associated with environmentally friendly vehicles. Additionally, should fuel prices soar due to future changes in energy demand, the operating costs of our mobility business may rise, potentially negatively impacting our business performance and financial condition. From a policy and regulatory perspective, if environmental regulations that impose costs, such as taxes on greenhouse gas emissions, are further tightened, it may adversely affect our business performance and financial condition. Furthermore, if our efforts to reduce environmental impact are found to be insufficient, our social reputation may suffer, which could also negatively influence our business performance and financial condition. Regarding climate change, which is a pressing issue, we are committed to working together with our customers, suppliers, and all other stakeholders by endorsing the Task Force on Climate-related Financial Disclosure (TCFD) and disclosing information to reduce our environmental impact. We disclose information in line with TCFD recommendations on our website.

Climate Change Initiatives (TCFD)