Risk of development quality falling short of customer expectations

「During the interim accounting period, there were no material changes to the emergence of major risks that management recognizes as potentially having a material impact on the Company's financial position, operating results or cash flows, or to the matters described under 'Business and Other Risks' in the annual securities report for the previous fiscal year.」

「As development projects become larger and requirements more sophisticated, quality defects, specification inconsistencies and delivery delays could result in additional costs, damages claims, reputational damage and lost opportunities to win future projects, thereby affecting the company's operating results and financial position.」

「During the six-month period, there were no material changes in the occurrence of major risks that management recognises as potentially having a material impact on the company’s financial position, results of operations or cash flow, among the matters concerning the business and accounting situation described in the semiannual report, nor were there any material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「However, because the development of systems requested by customers is highly important to society and requires strict adherence to delivery schedules and high quality, quality issues or delivery delays in such system development could result not only in the loss of customer trust and substantial losses, but also in disputes and claims with customers, potentially leading to litigation, loss of business opportunities and reputational damage.」