Risk of Disruptions to E-Commerce Websites and Business Systems

「Sales through e-commerce channels also temporarily fell sharply when the core system was switched over.」

「In addition, the Company operates a digital solutions business, including providing outsourced operation of e-commerce sites for other apparel companies and infrastructure services. If a systems failure disrupts the platforms it operates, important data belonging to clients and other parties may be lost or damaged, and operations may be interrupted or delayed. The Group may also receive claims for compensation and other payments from clients and other parties.」

「In addition, the Group plans to renew its systems infrastructure over the 3 years beginning this fiscal year. If a systems failure, such as a temporary shutdown, occurs during the rebuilding of the systems infrastructure, it could affect the Group's business, results of operations and financial position.」

「Our Group operates e-commerce sites and business systems, which are exposed to the risk of system failures caused by viruses or unauthorized intrusion from outside.」