IC CO., LTD.

Sales to Hitachi group companies, including Hitachi Systems, Ltd., accounted for approximately 50% of net sales for FY2025 (ended September 2025), resulting in an extremely high degree of dependence on specific customers. Should there be changes in the group's order trends or a reduction in business dealings, this could have a direct and material impact on the Company's business performance. As a countermeasure, the Company is promoting diversification of sales destinations by strengthening market competitiveness and cultivating new customers.

If defects or service failures occur in the products and services provided, this could result in loss of client trust and disruption to sales activities, as well as additional costs for rework and recall and potential liability for damages, thereby affecting business performance and financial condition. The Company obtained ISO9001 certification in March 2002 and has established a quality control system based on ISO standards to reduce this risk.

Because the Company handles various types of information, including personal information, in the course of its business activities, an information leak could result in loss of social credibility and client trust, disruption to sales activities, and liability for damages, thereby affecting business performance and financial condition. As countermeasures, the Company obtained Privacy Mark certification in October 2003 and ISO/IEC27001 certification in June 2011, and has established a system for compliance with personal information protection laws and regulations and information security management based on ISMS.

Securing and developing highly skilled IT engineers, who form the foundation of the Company's "customer-focused solution services" business model, is a key challenge, and if personnel expansion does not proceed as planned, this could affect business performance and financial condition. As countermeasures, the Company continuously conducts recruitment activities for both new graduates and mid-career hires, while also focusing on retaining personnel through the development of a comfortable working environment.

Since the IT Solutions business and IT Services business are directly affected by IT investment trends, if customer companies' appetite for IT investment declines due to a deterioration in the economic environment or an economic downturn, this could affect business performance through decreased orders and cancellation of maintenance and operation contracts. As a countermeasure, the Company is strengthening its ability to respond to economic fluctuations by maintaining financial soundness and monitoring domestic and overseas economic and demand trends.

If unforeseen events such as natural disasters or pandemics occur, this could result in temporary suspension or delay of operations, affecting business performance and financial condition. As a countermeasure, the Company is developing a BCP (Business Continuity Plan) to establish a system that enables swift response in the event of a disaster or infectious disease outbreak.