Quest Co., Ltd.

Both the system development business and the infrastructure service business are deeply related to advanced technologies, making the securing of highly skilled specialized personnel a key factor in business development. If the recruitment, retention, and training of engineers do not proceed as planned due to intensifying competition for talent, this could constrain business expansion and adversely affect business performance and financial condition. The Company is responding by strengthening engineer recruitment and development and expanding collaboration with business partners.

If client companies restrain their IT investment due to deteriorating domestic and overseas economic conditions, geopolitical risks, soaring raw material prices, fluctuations in the supply-demand balance of products, or similar factors, this could affect the Company's business activities and performance. The Group has established eight customer segments and strives to secure stable earnings by shifting resources toward industries with high demand.

Unexpected cost increases due to project difficulty, bugs, or other factors, as well as the occurrence of low-profit or unprofitable projects, could adversely affect business performance. The Company conducts order acceptance decisions and individual progress monitoring for high-risk projects at company-wide meetings, and has established the "Business Innovation Promotion Department" to manage project quality and prevent unprofitable projects.

If confidential information is leaked or lost due to cyberattacks, ransomware, inadequate management by outsourcing partners, or the loss of information equipment, this could result in a decline in social credibility and brand image, suspension of business relationships, and liability for damages, potentially having a material impact on business activities and performance. The Company is strengthening information protection through information security education, network monitoring, investigation of outsourcing partners, and a reporting system via the "Integrated Security Committee," which meets monthly.