SAKURA KCS Corporation

If personal information or confidential information entrusted by customers is leaked due to unauthorized access, cyberattacks, computer viruses, human error, or other causes, this could affect business results through damage claims or loss of credibility. As countermeasures, the company is promoting the development of a management framework through the Information Security Committee, acquisition of the Privacy Mark, acquisition of ISO/IEC 27001 certification for its data center and BPO divisions, and utilization of external experts.

IT investment by a wide range of customers, including financial institutions, local governments, and general business corporations, is affected by changes in the social and economic environment, economic fluctuations, and changes in laws and regulations, which could affect the business results of the corporate group. As countermeasures, the company is working to expand its customer base through new customer acquisition and deeper penetration of existing customers, restructure its business portfolio, strengthen stock businesses such as data center services, and maintain a sound financial structure.

The SMBC Group (including Sumitomo Mitsui Financial Group, Inc. and Sumitomo Mitsui Banking Corporation) and the Fujitsu Group (including Fujitsu Japan Limited) are major and stable business partners, and the business performance and IT investment trends of both groups may have a certain impact on the business results of the corporate group. As countermeasures, in addition to deepening transactions with both groups, the company is working to reduce dependence by entering new technology and business fields and strengthening its direct sales business targeting the general private-sector demand segment.

In System Development, the company's core business, as customer requirements become increasingly complex, large-scale, and subject to shorter delivery times, failure to achieve agreed quality and delivery deadlines or increased costs could result in unprofitability, affecting business results. As countermeasures, the company has established a framework for judging the feasibility of accepting projects and monitoring progress through the "Estimate Review Committee" and "System Project Council," and is implementing third-party verification, early detection and individual management of signs of unprofitability, establishment of a dedicated organization for intensive handling of large unprofitable projects, and enhanced monitoring using project management tools.

In providing various services and BPO services through its own data centers, if a major natural disaster, equipment malfunction, infectious disease pandemic, operational error, or other cause results in serious disruption to service provision, this could affect business results through damage claims or loss of credibility. As countermeasures, the company is promoting maintenance and enhancement of facilities, mutual cooperation and backup arrangements with other data center operators, acquisition of ISO/IEC 20000 and ISO 22301 certification, and strengthening of the operational framework including partial remote operation of operational tasks.