INES Corporation

In the information services industry, the business environment may change significantly due to sudden shifts in customers' IT investment trends, changes in information technology trends, or an increase in new market entrants. This could affect the Group's business performance. In response, the Group appropriately reviews its business portfolio while monitoring customer and industry IT investment trends, and works to develop highly skilled engineers while closely observing technological innovation trends.

In contract software development and package products, if quality defects or delivery delays occur, there is a risk of unprofitable projects arising from increased costs and impacts on customers' operations. Furthermore, if this leads to a breach of contract, it could result in claims for damages, lawsuits, or loss of customer trust, potentially having a significant impact on business performance. In response, the Group has established a quality control department, assigned responsible officers and external experts, and is working to strengthen its management system.

In outsourcing and other operational services, if system downtime or line failures occur due to large-scale disasters, prolonged power shortages, cyberattacks, or operational errors, this could cause the suspension or interruption of customers' business operations, leading to risks of claims for damages, lawsuits, or loss of trust. This could affect the Group's business performance. In response, the Group continuously works to develop an ITIL-compliant management system, enhance backup functions, strengthen operational tools, and formulate business continuity plans (BCP).

The Group carries out new business launches, software development investments, capital expenditures, and capital alliances, but changes in social conditions or economic downturns may prevent investment projects from proceeding as planned, resulting in the Group failing to achieve initially expected profits. This could affect the Group's business performance and financial condition. In response, the Group implements investments only after thoroughly examining the business plan, expected investment returns, and risks associated with each investment.

In the course of business operations, the Group has opportunities to handle personal information—including specific personal information—and confidential information held by customers, and there is a possibility that such confidential information could be leaked or tampered with due to cyberattacks such as computer virus infections or unauthorized access, or due to human error. This could give rise to risks of claims for damages, lawsuits, or loss of trust, potentially affecting business performance. In response, the Group continuously strengthens firewalls and intrusion detection systems, maintains and acquires certifications such as ISMS and the Privacy Mark, and carries out awareness activities such as compliance training.

If business continuity is disrupted, or if part of business operations must be adjusted, due to natural disasters such as a Tokyo Inland Earthquake or a Nankai Trough earthquake, this could affect the Group's business performance and financial condition. In response, the Group has formulated a BCP, and also implements measures such as establishing communication systems, providing employee training and education, and reviewing business locations.

If business continuity is disrupted, or if part of business operations must be adjusted, due to the outbreak of a serious infectious disease, this could affect the Group's business performance and financial condition. In response, the Group utilizes telework, moves business operations online, and restructures business locations, working to ensure employee safety and prevent infection.

The Group's business activities are heavily dependent on human resources, and if employee attrition or hiring difficulties worsen against the backdrop of a declining birthrate and aging population, this could lead to a decline in service levels or reputational damage, resulting in customer attrition and adversely affecting business performance and financial condition. In response, the Group is implementing various measures, including strengthening recruitment and talent development, reviewing personnel and benefits systems, and offering diverse and flexible working arrangements.