AGS Corporation

In the data center business, the Group holds a large volume of personal information and customer data through IDC Services (Saitama iDC), Cloud Services, outsourcing services, and other offerings. If an information leak were to occur, in addition to potential damages claims, it could have a material impact on eligibility to participate in public-sector bids and on the entrustment of operations in the financial sector. As countermeasures, the Group has obtained ISO/IEC27001 and Privacy Mark certifications, established an Information Security Committee, conducts employee training, and implements multilayered security measures such as access trail logging.

In software development, which is the core of the SI business, if unforeseen factors occur—such as system defects or deficiencies, or increased man-hours due to specification changes—this could affect business results and financial condition. As a countermeasure, project progress and quality management are conducted by a dedicated department independent of the business divisions, and the Group has built its own integrated development standard (INDESTA) to improve quality.

The Group provides IDC Services (Saitama iDC) on a 24/7/365 non-stop basis. If business continuity becomes difficult due to natural disasters such as earthquakes or flooding, information security incidents, equipment malfunctions, operational errors, or a pandemic, this could result in lost business opportunities, damages claims, or loss of trust. As countermeasures, facilities are sited on firm ground, feature earthquake-resistant and seismic isolation structures, are equipped with in-house power generation equipment, comply with ISO/IEC20000, and operate under countermeasure manuals based on BCM.

For FY2026 (ending March 2026), the Resona Group accounted for a high 28.6% of consolidated net sales, including indirect transactions. If the Resona Group's management policy changes, or if contracts are terminated or altered under unfavorable terms, this could have a material impact on business results and financial condition. As countermeasures, the Group is working to rebuild its sales base by promoting new businesses, strengthening alliances, and expanding new business partners.

Although as a multi-vendor there is no particular supplier on which the Group is highly dependent, if a supplier contract is terminated due to refusal to renew, cancellation, or similar reasons, or if terms are changed unfavorably, this could affect business results and financial condition. The Group continues to mitigate this risk by maintaining its multi-vendor policy, preserving good relationships with each supplier, and expanding its supplier base.

The Group is subject to the Worker Dispatching Act, the Act on the Protection of Personal Information, the Number Act, the Act on Fair Dealing (Shitauke Torihiki Tekiseika Ho), the Telecommunications Business Act, and other laws. If a license is revoked, laws are amended, new regulations are applied, or various certifications, accreditations, or registrations are lost, this could affect business results and financial condition. As a countermeasure, the Planning Department has been clearly designated as the department overseeing compliance and legal risk management, ensuring thorough compliance under an appropriate management framework.

In the course of developing proprietary software, using third-party software, and reselling products through agency sales, the possibility cannot be entirely ruled out that the Group could face claims from third parties regarding ownership or infringement of intellectual property rights, or claims for damages or injunctions, which could affect business results and financial condition. As countermeasures, the Group has entered into advisory contracts with patent firms, secured trademark rights and other protections, and works to prevent infringement of third-party rights. Currently, no intellectual property disputes have arisen.

Economic downturns or halts in economic activity caused by international issues, natural disasters, epidemics, and other factors could affect customers' IT investment trends, and if IT investment is curtailed, this could affect business results and financial condition. In addition, since the public sector is a major customer base, changes in the IT strategy or utilization policy of national and local governments could also affect business results. As a countermeasure, the Group maintains a balanced portfolio comprising roughly equal proportions of the financial, public, and corporate sectors, and works to develop new customers and expand transactions.

Against a backdrop of advancing technological innovation and increasing system complexity in the information and communications field, if the Group is unable to secure and develop highly skilled specialized personnel as planned, this could constrain business expansion and affect business results and financial condition. As countermeasures, under its basic human resources strategy policy, the Group implements various initiatives including a medium-term recruitment strategy, utilization of diverse talent, an emphasis on engagement, promotion of health management, work-style reform, and improvement of IT skills.