ARGO GRAPHICS Inc.

The Group's customer base is centered on the manufacturing industry, and the proportion of sales to manufacturing customers remains high. If IT investment scale in the manufacturing industry contracts, the Group's financial position and operating results may be affected. Although the Group is advancing customer development in other industries, the transition away from dependence on manufacturing remains a work in progress.

The Group has a high degree of dependence on its supplier, Dassault Systèmes, particularly with respect to its mainstay product, the 3D design system "CATIA." Significant changes in Dassault Systèmes' management policies or shifts in product evaluation could affect the Group's financial position and operating results. Dependence on a single major supplier may constitute a vulnerability in the supply chain.