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For Investors -FOR INVESTORS-
Management Policy

Risk Factors

There are the following things in the matter which may have an influence on business showings, the financial position of our group and the stock prices.

1. About the abnormal change of a financial position and business showings

When the e-Sales Manager related business which is the main line of our group is the research and development type mainly on the package software and Enlarges. Therefore, if we strengthen precedent, it is assumed that R&D expenses increase.
In addition, the order amount of money of the item is big, and there is a thing needing a long term by completion in the system development business, and there is the thing which progress of the development may be largely late for by a change and the addition demand of the demand specifications from a customer.
When these phenomena are generated, it may affect the financial position and the business showings of our group.

2. About the dependence to main product, service

The dependence to the e-Sales Manager related business is high, and this sales occupies approximately 47% of consolidated sales of our group in FY2016.
When sales amount of the solution decreases by the change of the market or competing intensification, it may have an influence on the achievements.

3. About the assurance of human resouces

We recognize that, acquiring excellent human resource and improving the skill continuously is important to contribute high quality service to the customer. Therefore, We do recruitment activity to employ new college graduates and experienced person continuously. In addition, We consider to job retention.However, If we cannot find a talented person as scheduled, it may have an influence on achievements, the financial position of our group.
For example, Our main business, e-Sales Manager related business, the dependence on immaterial asset such as accumulations of the special know-how and experience is high. In IT industry, the labor supply-and-demand situation is tight chronically. So, when the talented person with the know-how to lead the industry begins to changes of job to the competitor may have an influence on business development, the business showings.

4. About the dependence on executive manager

If an exective manager having specialized knowledge, technique, experience (for example,CEO, board of directors,corpolate officers, and so on) retire by some kind of reasons, we may have an influence on business development and business showings.

5. About intellectual property rights

We carefully investigate patents and intellectualproperty rights related to our software and business models. However,intellectual property rights issue on the information technology is relativelyshallow. In some fields, established practices do not exist. Therefore, thematter of the intellectual property is limited to ones recognized at present.It may possible that the matter will not get to be exhaustive in the future. Bynow, there has been no issues to be suited on patents and intellectual rightsrelated to our business. However, if any patent or intellectual right will beestablished in the future, our sales results and financial condition may badlybe affected.


6.BCP

Our main business field is e-Sales Manager related business. In this business, we manage CRM/SFA software named “e-sales Manager”, installed exceed 4,000 companies. Meanwhile, We are working for BCPs at the time of disaster outbreak to be able to perform the service development that continued in response to the needs of the customer in the emergency.

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