Investor Relations

Business Risks, etc.

Risks that may have an impact on the business results, financial position, cash flows, etc. of the Company and their variable factors are listed below. The Company recognizes the presence of these risks, and continuously makes efforts to avoid, to the best of our abilities, the impact of these risks when they arise.

1. Information Management

Customer data handled by the Company comprises confidential information not yet disclosed and personal information, including those where insider trading regulations apply. In the case of a data breach or information leakage, there may be a negative impact on trust in the Company and the Company’s business results. Therefore, the Company constructs and strengthens both systems and operations, such as by obtaining the “Privacy mark” certification and the ISMS certification in a limited scope to respond to information security needs. Also, the company has formulated various regulations including insider trading management regulations, and works to ensure confidentiality including by thoroughly conducting employee education.
In recent years, services provided to our customers have evolved to use digital technologies more effectively, in line with the trend of digitization of disclosure documents, such as securities reports published on the Electronic Disclosure for Investors’ Network (EDINET). Accordingly, from the perspective of preventing accidental information leakages, the Company positions the ensuring of the security of customers’ information as the most important management issue, and is striving to build an even stronger management structure.

2. Effects of Amendments to Disclosure-Related Legislation and Changes in Accounting Policies

The preparation of many disclosure-related documents, the main business of the Company, is based on the Financial Instruments and Exchange Act and the Companies Act. However, in recent years, from the perspective of protecting investors, there is a demand for more appropriate content to be disclosed, and there have been frequent changes made to laws and related regulations.
Also, the convergence of accounting standards in Japan and the International Financial Reporting Standards (IFRS) is progressing, and multiple changes have been made in the past few years. Currently, the starting period for the mandatory adoption of standards is being considered.
Due to these changes, orders received by the Company for disclosure-related documents have undergone a change in the number of pages or number of sections required in terms of content, which has an impact on the Company’s sales. Also, with the trend of disclosure documents based on the Financial Instruments and Exchange Act following XBRL standards, the measures and methods of disclosure have also changed several times. In order to swiftly capture such trends of changes and promptly formulate measures in response, the Company has established an Integrated Disclosure Research Center and an IFRS Office as internal organizations, and worked with existing sections to regularly collect a wide range of information on disclosure systems and accounting standards, and formulate response measures.

3. Effects of the Stock Market

The field of disclosure-related document preparation, which the Company specializes in, includes continuous disclosure documents such as securities reports and notices of convocation for general meetings of shareholders, as well as irregular disclosure documents such as application forms for an initial public offering and finance-related documents. Among the above, orders for irregular disclosure documents may be affected by the stock market, in which case there may be a significant impact on the Company’s net sales or profits.
To minimize this impact, the Company actively conducts sales activities to obtain orders of continuous disclosure documents, and strives to provide services that accurately meet the needs of customers. Through such efforts, the Company aims to stabilize its earnings. In addition, a decrease in the number of listed companies will result in a smaller customer base for the Company, and is a factor that may lead to decreased sales and profits.

4. Seasonal Fluctuations in Net Sales

Net sales of the Company experience seasonal fluctuations as most of our customers have fiscal year-ends in March. As a result, net sales of the Company tend to be higher in the first quarter (June to August) than in the other quarters.