Of the matters related to the business situation, accounting situation, etc. described in the securities statement, the matters that may have a significant impact on the judgment of the investor are listed as the main assumptions at this time. .. Regarding the matters described in the text that relate to the future, the Our Group has judged as of the submission date of the securities statement (June 24, 2020).
Our Group information belongs Services In our industry, efficiency and in companies Productivity Improvement in addition to investment demand for the purpose of, AI, IoT, Fintech, cloud-based IT Services gathered much attention in the field such as, market expansion trend and it is, evolution and with it of the information technology market needs you it is required to respond quickly to changes in the.
We have in our efforts to correspondence subjected to aggressive technology investment has continued, new entrants and more than expected due to the rise of overseas companies from other industries price competition occurrence of, by DX, such as customer of the business model of reform and a wide range of If the rapid technological innovation in the area has occurred, Our Group there is a possibility that performance is affected.
The ratio of Our Group 's sales to the Nomura Research Institute Group and Fujitsu Group at the end of the current consolidated fiscal year was 44.2% and 21.3%, respectively. For this reason, the above-mentioned order trends of customer may affect the performance of Our Group.
On the other hand, Our Group always aims to provide Services closely attached to the end user, and of course the relationship with customer is Services. By focusing on building a close relationship with end user user, who is the final user of io, we are working to reduce the adverse effects on the business results of Our Group.
Our Group proactively accepts even projects with low Profitability projects or projects that are expected to be in the red for the purpose of improving and accumulating system development technology and expanding future orders. There is a possibility. In addition, Our Group provides Services as a contract in principle, so even if the project is expected to be profitable when receiving an order, unexpected specification changes or additions beyond the initial estimate are added. There is a possibility that Profitability will drop due to work occurrence and become unprofitable.
In the future, due to the promotion of the DX business, the system requirements of customer will become more difficult, and it is considered that there are increasing numbers of situations where it is difficult to secure quality. Also, if there is a quality discrepancy due to a misunderstanding with customer or our company's technology-insufficient management, a long-term contract non-compliance was extended due to the revision of the Civil Code enforced in April 2020. Remediation liability and sales reduction claims may be made, which may affect the performance of Our Group.
As a measure against this, a new system development meeting was established in FY2020, and by thoroughly reviewing each process, the risks contained in PJs are shared early and visualized, and the monitoring function for each PJ is strengthened. So I am working on quality improvement.
In regards to when our Group offers system solutions and services to a customer, there are circumstances when confidential information that we possess about customers’ businesses is accessible to our employees or employees of our business partners. We continuously try to further strengthen and improve our information security and management systems. We also aim to suitably manage and preserve the privacy of information provided by customers. Nevertheless, regardless of the measures and policies we enact, in times when personal or business information has been disclosed or leaked, beyond any damages that may be received, the trust given by the public may be lost and cause negative impacts on the performance of our company.
Our Group will continue to rebuild the business continuity program (BCP) that takes into consideration pandemics such as the recent spread of new coronavirus infection, other disaster countermeasures, geopolitical risks, etc. If the interruption of the provision of Services to customer is unavoidable due to the occurrence of, it will be difficult to provide Services at the level agreed with customer, The performance of Our Group may be affected.
Regarding the effect of the new coronavirus infection on Our Group, it is expected that customer companies will have an impact on sales activities, such as freezing new development projects and reducing opportunities for business negotiations. If it becomes serious or serious, it may affect the performance of Our Group. On the other hand, society is actively using ICT in order to maintain its activity, and while there is a movement to survive this phase, Our Group uses digital technology to maintain quality. We will promote our business activities by striving to provide Services in a distributed and contactless manner.
Our Group is expanding its business overseas. However, in many overseas markets, various factors such as legal systems, business practices and labor relations, economic trends, exchange rate fluctuations, and other political and society factors that are different from those in Japan are expected to occur.
Unexpected situations may occur due to these factors, in which case the performance of the Our Group may be affected.
Our Group holds unlisted shares acquired through business tie-ups, etc., as well as listed shares held for the purpose of strengthening relationships with business partners and collecting information, as well as bonds for the purpose of managing funds. .. In addition, we are investing in an investment partnership for the purpose of discovering venture companies that possess new technologies. In the event that the issuer's business performance deteriorates or the bankruptcy of the issuer occurs, these investment securities may be impaired in accounting or the investment amount may not be recovered, and the business performance of Our Group may affect May be subject to
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