Systena Corporation

The Group handles many operations requiring a high degree of confidentiality from both a technical and sales-strategy perspective. Should an information leak occur, there is concern about a significant impact on the business, including the occurrence of damages claims and a decline in order intake due to reduced trust. While the Group takes measures such as obtaining ISO27001 certification and thoroughly managing operations, this does not guarantee complete prevention.

Under the Act on Proper Subcontracting Transactions with Small and Medium-sized Enterprises (the "Subcontracting Act"), effective January 1, 2026, the Group, having capital exceeding ¥300 million, is obligated to appropriately pass through price increases and make cash payments within 60 days when outsourcing work to small and medium-sized subcontractors. Any violation of the law could result in administrative sanctions such as recommendations, public disclosure, or fines from the regulatory authorities, as well as a loss of social credibility. The Group is addressing this by establishing appropriate price negotiation practices and a system for prompt cash payment for the relevant transactions.

The Group holds a license for general worker dispatch business under the Worker Dispatch Act. Should a legal violation occur, or should an officer become subject to disqualification, there is a possibility that the Minister of Health, Labour and Welfare could revoke the license or issue a business suspension order. At present, no factors have arisen that would impede business activities, but should any legal violation occur, it could affect the Group's business performance. The Group strives to build a compliance framework and ensure thorough legal compliance, including among its officers.