Risk Factors

The main business to be considered in continuity of management and business development of our Group, that there is a possibility of risk factors are as follows. In recognition of these risks, we strive to avoid the occurrence of risks and the Group's policy is to strive to respond appropriately if the risk is realized.
Forward-looking statements are determined at the end of the last fiscal year.

Features of our group business

1.Seasonal variability of earnings affected by the demand of the client

Each solution and services that we provide are such as duties processing and the consulting of the system about the network, a design, construction and maintenance. This is the ICT investment and capital spending by the client mainly becomes a target. Most of our clients determine that a fiscal year is from April to March, and our sales amount is a tendency to focus the second-quarter end (September) and the end of the fourth quarter (March). Therefore, the earning results of half or quarter is not linked to the operating results for the full year. Furthermore, it is difficult to forecast the results of the full year result only looking the earning result of half or quarter.

2.Dependence on a specific account

We offer service to be given the ordering of the product, distribution, sales management, duties until the settlement, collection in trust by total from the sale of the front shop of the EC site. Consequently, we depend on a specific business partner for a big ratio of sales amount and operating income.
Our group maintains sale partnership by a system to offer and original management know-how, so we will continue this business relationship. But if these tie-up companies decide to perform back office duties in-house and change service trust, we may have an influence on the business development, business results and the financial position.

3.System designs / Constructions

We offers design and construction services of the system of corporate customers in the stage of development work, we need to decide the specification of the system with the customers. However, in practice, there is a possibility that might be forced to change the specification that defined the beginning, the unexpected development cost may occur in such cases. It is necessary to give enough tests before operation by the recent large-scale system which became it complicatedly, but the problem that we were not able to discover beforehand occurs by lacking a test when it has a short date of delivery, and a great repair expense may occur. We maintain the project management system to support such a risk and monitor progress of the development work about the matter of significance, however, when the above-mentioned problems occur, we may have an influence on the business development of our group, business results and the financial position.

4.Service of the businesses

The services that we provide, in addition to the system design and construction services so far, also perform system monitoring, operation and maintenance to the customer "service integration" increases. In such an integration services, for example, by incorporating the IT services by a third party that are provided from outside, such as settlement services, you may use. Therefore the quality of service by outsider has become important.
We manage quality of service and the continuity by enough function examination, credit limit, consecutive inspection, a field work beforehand in our group from a design stage, however if the external service providing is compromised for some reason, some services may be provided to disabled, we may have an influence on the business development of our group, business results and the financial position.

Security policy

1.About access to the client’s information

Each solution and service at our group, in the character of duties, our employee may perform a search or refer of the information that the customer company holds. It does not hold this information as a database directly, however, in duties, is under an accessible environment. We register the accessible person to a database for a limited number and take measures by introduction of the security system to record an access history; we carry out the morals of the employee thoroughly and take measures to prevent information leakage.
In spite of this measure, in addition to the case where it is involved in information divulgation, there is a possibility that held liable for damages, it means that can disrupt even the continuation of work that is currently under contract, we may have an influence on the business development of our group, business results and the financial position.

2.About management of the individual customer information that we hold 

We accumulate and manage a large quantity of personal information by selling the IT connection in our group's original EC site and EC site of the contract customer that we act for administration. At our data base of EC site, we take the protection plan that we cannot access illegally from the outside and the database about the personal information lets you become independent with other databases and acts as the database of the EC site to manage that our group manages for severe management, we register the accessible person to a database for a limited number and take measures by introduction of the security system to record an access history. Information had not leaked out outside by now. In spite of this measure, in addition to the case where it is involved in information divulgation, there is a possibility that held liable for damages, it means that can disrupt even the continuation of work that is currently under contract, we may have an influence on the business development of our group, business results and the financial position.

3.Correspondence of the innovation

Since innovation is intense, there is impossible that technology and know-how to be currently held to display of information service industry that we belong.
In order to catch up with the speed of technological innovation, we take the policy to learn new technologies and know-how and increase the know-how of employees, take advantage to secure and develop properly the necessary human resources. Therefore we will continue to meet customer’s expectation.
When we are not able to cope with the change of these customer needs adequately and quickly in future by a contract about continuation and the duties trust of duties changes it or being dissolved, we may have an influence on the business development of our group, business results and the financial position.

4.About the continuity of duties

In the emergency such as an earthquake disaster and a great blackout, the social infrastructure including the isolation damage, it might hard to continue the service that we provide to customers. The service of our group provides service to a customer with IT infrastructure mainly in Tokyo District. If the base supporting IT infrastructure stops, the continuation of the service becomes difficult. We have and prepare ensure uninterruptible data center, redundancy communication line, a telecommuting possible equipment to define a business continuity plan, it is possible to deal with emergencies that were previously assumed.
We set priority based on the importance of the service and adopt a contract form to shorten some services, and to offer for measuring it. However, when we face to such emergency cases, some reduction of the service offer is not avoided; we may have an influence on the business development of our group, business results and the financial position.

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