Business Model Enhancement Through NSSOL 1.0, 2.0 and 4.0

「We are pursuing various initiatives to expand the "TAM model." The TAM-model share of revenue was 38% in the current fiscal year, compared with the target of 75% for fiscal 2027, an increase of 33% from the previous fiscal year.」

「In addition, in August we entered into a capital and business alliance with Intelligent Force, which has strong consulting capabilities, and in September with Delivery Consulting Inc., which has strengths in data utilization.」

「Our group has launched the "2025-2027 Medium-Term Management Plan" (announced in February 2025) to realize the "NSSOL 2030 Vision" (announced in April 2024), and is pursuing its business activities through four fundamental transformations: "transforming the business revenue model," "transforming customer engagement," "transforming the technology acquisition and application process" and "transforming internal operations and management." In particular, toward transforming the business revenue model, we are pursuing various initiatives to expand the "TAM model."」

「We have defined our vision as "Social Value Producer with Digital" as we transform ourselves from our previous position as a "partner" to customer companies into a "producer" that envisions and realizes the ideal form of society and companies.」

「As growth investments, in addition to entering into a business alliance with ExaWizards Inc., an AI startup, and with 日鉄テックスエンジ in the digital manufacturing field, we are strengthening our ability to address customers' DX needs by entering into an agreement to make テックスエンジソリューションズ a group company and signing an agreement toward a capital and business alliance with 東邦システムサイエンス.」

「We are strengthening and expanding these initiatives, including by beginning collaboration with Kore.ai and FastLabel, which have AI platforms.」

「In May this year, we also entered into a business alliance with ExaWizards Inc., an AI startup, with the aim of expanding the scope of services we can provide and strengthening our execution capabilities through the sale and provision of the company's products and consulting services to support customers' DX initiatives.」

「In addition, as part of our growth initiatives, we entered into capital and business alliances and strategic partnerships with companies that each have strengths in areas including AI, data utilization, support for the digitalization of business processes and extensive DX human resources, in order to strengthen our ability to address DX needs.」

「Accordingly, our basic policy is to secure retained earnings to support business growth through measures including improving the productivity of SI operations using the latest technologies, promoting the DX business, expanding our global business and building a highly engaged organization, while also preparing for business risks such as wide-area disasters, and to distribute profits primarily through appropriate and stable dividends to shareholders.」

「We began providing “Angraecum,” a digital innovation co-creation program supporting customers' digital transformation, or DX, and advanced verification of the application of a private wireless network in anticipation of local 5G at Nippon Steel Corporation's Muroran Works as part of efforts to promote 5G solutions for achieving DX at manufacturing sites.」

「Accordingly, our basic policy is to secure retained earnings to support business growth through measures including improving the productivity of SI operations using the latest technologies, promoting the DX business, expanding our global business and building a highly engaged organization, while also preparing for business risks such as wide-area disasters, and to distribute profits primarily through appropriate and stable dividends to shareholders.」

「Accordingly, our basic policy is to secure retained earnings to support business growth through measures including improving the productivity of SI operations using the latest technologies, promoting the DX business, expanding our global business and building a highly engaged organization, while also preparing for business risks such as wide-area disasters, and to distribute profits primarily through appropriate and stable dividends to shareholders.」

「To enhance our business model, in the conventional "NSSOL 1.0: SI Model" business area, we will strengthen and expand our account base while addressing legacy system renewal needs based on the modernization solutions developed mainly for the steel industry. In the "NSSOL 2.0: IT Partner Model" business area, we will continue to strengthen the competitiveness of NSFITOS (NS Fit Outsourcing), an IT outsourcing service that addresses customers' need to shift IT personnel toward strategic planning, and expand value co-creation businesses. At the same time, in the "NSSOL 4.0: Digital Innovation Model" business area, we will enter and expand into new markets.」