Computer Management Co.,Ltd.

If deterioration in domestic and overseas economic conditions leads client companies to reduce IT investment or shift toward in-house development, this may result in reduced orders from existing customers and sluggish acquisition of new customers. Since the Group is an independent vendor not bound by any specific manufacturer or corporate group's capital, it can offer a wide range of proposals and maintains stability that is less susceptible to economic fluctuations in any particular industry.

If the Group fails to accurately predict and respond to the direction of rapid technological innovation such as AI and cloud-native technologies, this could result in a decline in competitiveness and loss of order opportunities. As a countermeasure, the Group has established the New Technology Infrastructure Development Office to advance research and validation of AI and other advanced technologies, while expanding its business portfolio through the development of new solution areas.

If the Group fails to adequately respond to changes in customer needs and expectations, causing business and contractual relationships to be discontinued, this may affect business results and financial condition. The Group has built a stable portfolio in which customers with transaction histories of 10 years or more account for approximately 70% of net sales, and it seeks to maintain trust with customers through the provision of one-stop solutions and proposals that address latent needs in depth.

If the increasing sophistication and complexity of customer requirements raises the burden on systems engineers, resulting in quality issues or delivery delays, this could lead not only to unprofitable projects but also to litigation with customers, loss of business relationships, and reputational damage. For contracted projects with an order value of ¥1 million or more, or requiring one person-month or more, progress reports are submitted to the Technology Management Division on the 20th of each month; for projects of ¥3 million or more, reports must be submitted by the 5th business day of each month, and a management system is in place under which implementation status is also confirmed at management meetings.

If it becomes difficult to recruit and develop capable engineers, systems engineers, and managers amid competition for talent with other companies, this may affect business results and financial condition. To improve employee retention, the Group is implementing measures such as reducing overtime work, a mentoring system, and support for childcare and family care, while also enhancing human resource development initiatives such as rank-specific training and IT skills training, including reskilling.

If external business partners (BPs) are unable to secure engineers or fail to meet the required technical standards, or if outsourcing costs continue to rise, this could impede business execution and adversely affect business results and financial condition. In April 2026, the Group established the Partner Promotion Department, and is working to expand collaboration opportunities through the active sharing of project information and to build an alliance structure that mutually complements technical capabilities.

If personal information or confidential information is leaked by the Group or a BP, this may affect business results and financial condition through customer claims for damages or loss of trust. The Group has implemented multilayered security measures, including obtaining ISO27001 and Privacy Mark certification, establishing an Information Security Committee, providing employee training, monitoring various software, and recording access logs to information assets.

If, in the course of system development, the Group unknowingly infringes on another company's copyrights or patent rights, this could result in significant costs or claims for damages, affecting business results and financial condition. In accordance with the Intellectual Property Management Regulations, the Administration Department conducts investigations to confirm the absence of infringement on other companies' patents prior to service provision, and also requests investigations from specialists such as patent attorneys, while conducting intellectual property protection training for all employees based on the Compliance Manual as appropriate.

If serious problems occur in information systems due to natural disasters such as typhoons, earthquakes, or torrential rains, or due to communication failures, this could impede business operations and affect business results and financial condition. The Group has adopted a replication configuration in the Kansai and Kanto regions to ensure business continuity at locations other than the affected site, and has built a risk management system that establishes infrastructure and personnel plans for business continuity as well as priorities for response measures.