Selective concentration of management resources on core fields

「Startia Asia was established in November 2017 as a company responsible for business expansion in Asia and CVC investment. However, we decided to close the company in order to improve business efficiency through the selection and concentration of management resources.」

「At the same time, shifting the portfolio boldly from the conventional IT infrastructure-related business to the higher-value-added DX solutions-related business requires leaders who can discuss the Company-wide optimum and the future five and 10 years from now, rather than focusing solely on the KPIs of an individual business division.」

「Against this backdrop, the IT infrastructure-related business of the Group saw growing interest across a broad range of areas, from developing the infrastructure for the digital shift in business operations to digital transformation, as well as rising demand for improvements to office network infrastructure, including responses to cybersecurity. In addition, 株式会社ビジネスサービス, which became a consolidated subsidiary in October 2023, made a strong start. These developments helped establish a more stable customer and earnings base through both organic growth and M&A-driven growth.」

「As a result, the IT infrastructure-related business reported revenue of ¥11,904.753 million, down 4.5% year on year, and segment profit (operating profit) of ¥1,392.399 million, up 3.9% year on year, for the nine months ended December.」

「As a result, the IT infrastructure-related business reported revenue of ¥12,468.423 million, up 39.7% year on year, and segment profit (operating profit) of ¥1,339.997 million, up 291.7% year on year, for the nine months ended December.」

「MFP sales performed well through both direct and partner channels, while sales of network equipment centered on UTM, an information security product, remained solid for the second consecutive quarter. As a result, revenue and profit increased substantially. The IT infrastructure-related business reported revenue of ¥8,342.882 million, up 45.0% year on year, and segment profit (operating profit) of ¥933.312 million, up 171.7% year on year, for the six months ended September.」

「As a result, the IT infrastructure-related business reported revenue of ¥3,941.717 million, up 38.9% year on year, and segment profit (operating profit) of ¥277.528 million, up 278.0% year on year, for the three months ended June.」

「As a result, the IT infrastructure-related business reported revenue of ¥8,922.209 million, up 19.3% year on year, and segment profit (operating profit) of ¥342.087 million, up 105.2% year on year, for the nine months ended December.」

「During the six months ended September, a resurgence in COVID-19 infections led to the application of states of emergency and priority preventive measures in various regions, and uncertainty about the outlook persisted. The Company was affected by reduced operations at some customers and manufacturers’ inventory shortages caused by the semiconductor shortage, including shortages of business phones. Nevertheless, by using its internal information infrastructure and strengthening the systems and coordination of the Wakayama call center and the customer success division to identify customers’ latent needs and improve productivity, revenue and profit increased substantially from the same period of the previous year. In addition to reducing advertising expenses through lower web customer-acquisition costs, personnel-related expenses declined substantially because the Company had not been able to replace departing employees or fill vacancies.」

「Through new store openings, M&A, expansion of the customer base through the provision of new products, and further promotion of alliances, we will achieve organic growth and continue supporting productivity improvements at small and medium-sized enterprises.」

「As a result, the IT infrastructure-related business reported revenue of ¥7,595.697 million, up 8.0% year on year, and segment profit (operating profit) of ¥302.376 million, up 134.0% year on year, for the nine months ended December.」

「In network equipment in particular, the problem-solving framework for mid-sized L-class companies with annual revenue of ¥5 billion to ¥10 billion, which the Company had been developing since the previous fiscal year, became well established, leading to an increase in orders secured for high-value network infrastructure projects.」

「During the fiscal year, revenue from the IT infrastructure-related business remained strong against budget, with MFP (multifunction printer) and NW (network) equipment in particular contributing to earnings. In selling, general and administrative expenses, both the digital marketing-related business and the IT infrastructure-related business worked to reduce costs through efficient resource allocation.」

「During the nine months ended December 2017, revenue from the IT infrastructure-related business remained strong against budget, with MFP (multifunction printer) and NW (network) equipment in particular contributing to earnings. In addition, both the digital marketing-related business and the IT infrastructure-related business worked to reduce costs through efficient resource allocation in selling, general and administrative expenses, while the partial sale of investment securities resulted in the recognition of a special gain. As a result, the Company released an upward revision to its full-year earnings forecast on 29 December 2017.」

「As a result of pursuing the selective allocation and concentration of management resources while increasing recurring revenue and strengthening customer relationships, the Company recorded special gains, including a gain on transfer of business of ¥33.548 million from the transfer of its hosting business to エーティーワークス, a gain on changes in equity of ¥101.414 million arising from the third-party allotment by クロスチェック and the partial transfer of its issued shares, and a gain on sale of shares in an affiliated company of ¥19.724 million.」

「While working to increase recurring revenue and strengthen customer relationships, we have also pursued the selective allocation and concentration of management resources.」