Capital and business alliance with NTT DATA and conversion into a consolidated subsidiary

「In addition, our parent company, NTT DATA Corporation (hereinafter, "NTT DATA"), entered into a business alliance with OpenAI, a leading US generative AI company. As a member of NTT DATA Group, our company is also working with NTT DATA to advance the development of sophisticated systems using generative AI and secure a competitive advantage over competing companies. This has enabled us to establish a system for providing highly reliable digital solutions that meet the advanced security requirements sought by companies and government agencies.」

「また、親会社である株式会社NTTデータとの協業強化やパートナー企業との共創を通じて多様なニーズへの対応力を高めるとともに、生成AI活用による社内の生産性向上を並行して進める方針に基づき、事業活動を展開してまいりました。」

「In addition, we intend to meet increasingly diverse needs by strengthening collaboration with NTT DATA Corporation, which has a strong customer base, and co-creating with a diverse range of partner companies.」

「In addition, our parent company, NTT DATA Corporation (hereinafter, "NTT DATA"), entered into a business alliance with OpenAI, a leading US generative AI company. As a member of NTT DATA Group, our company is also working with NTT DATA to advance the development of sophisticated systems using generative AI and secure a competitive advantage over competing companies.」

「During the interim accounting period, based on this policy, we actively proposed DX initiatives to customer companies and strengthened collaboration with our parent company, NTT DATA Corporation. Orders remained firm, but net sales declined from the same interim period of the previous fiscal year due to the impact of lower orders in the previous fiscal year.」

「Since entering into the capital and business alliance with our parent company, NTT DATA, we have achieved results in expanding projects and acquiring new customers, supported by NTT DATA's customer base and technological capabilities. We will continue discussions on priority areas with NTT DATA, further strengthen collaboration, and provide UX-centred services to the customer companies of NTT DATA Group companies while expanding the scale of transactions.」

「Since entering into the capital and business alliance with our parent company, NTT DATA, we have been working jointly with NTT DATA Group to develop DX and digital marketing services for NTT DATA Group's customer companies by combining our expertise in UX and digital marketing with NTT DATA Group's advanced systems design and development capabilities. The collaboration has produced results, including improved sales efficiency through the use of NTT DATA Group's strong sales base.」

「In this business environment, we support client companies’ DX and digital marketing by leveraging our expertise in user experience design (customer experience design) and digital technology. We have strengthened our DX proposal activities and deepened collaboration with our parent company, NTT DATA Corporation. Orders remained strong, and net sales increased 21.5% year on year.」

「With the strengthening of proposals related to DX and its collaboration with NTT DATA Corporation proving effective, orders for existing services remained strong, led by major customers in the telecommunications, retail, and local government sectors.」

「Since entering into the capital and business alliance with NTT DATA Corporation, our company has been working jointly with NTT DATA Group to develop DX and digital marketing services for NTT DATA Group's customer companies by combining our expertise in UXD and digital marketing with NTT DATA Group's systems design and development capabilities. Results of the collaboration have emerged at some customer companies. Going forward, we will actively promote coordination of business strategies, the acceptance of personnel from NTT DATA Group, and regular personnel exchanges, while continuing proposal activities and service development for NTT DATA Group's customer companies.」

「To enhance corporate value over the medium to long term, our group will strengthen collaboration between the two companies by combining our group's expertise in customer experience design with NTT DATA Group's systems development capabilities, creating new services, acquiring new customers, and expanding transactions with major customers.」

「We also collaborated with NTT DATA Corporation, participating in a digital-store proof-of-concept project and actively engaging in joint marketing and sales activities.」

「We have advanced collaboration with our parent company, NTT DATA Corporation (hereinafter, "NTT DATA"), promoting the provision of services that combine our expertise in customer experience design with NTT DATA's systems development capabilities.」

「We have collaborated with NTT DATA Corporation, which became our parent company in March 2019, to strengthen our ability to respond to large-scale systems projects and implement joint marketing and joint sales initiatives. We have also continued measures from the previous fiscal year to eliminate loss-making projects and improve project profitability by strengthening project management systems and controlling outsourcing costs.」

「We are advancing collaboration with NTT DATA Corporation, which newly became our parent company.」

「In February 2019, our company entered into a capital and business alliance agreement with NTT DATA Corporation. Following NTT DATA's tender offer for our shares, our company became a consolidated subsidiary of NTT DATA in March 2019.」

「Our company and NTT DATA established a comprehensive business alliance covering all phases, from product planning through marketing and sales, systems development, systems operations and business operations support, with the aim of making our company the core company responsible for NTT DATA Group's digital marketing strategy, strengthening cooperation further, and achieving sustained growth in corporate value for both companies. In addition, as a means of maintaining and strengthening this business alliance, our company will become a consolidated subsidiary of NTT DATA, thereby establishing a capital alliance between the two companies. NTT DATA plans to conduct a tender offer for our shares, subject to a maximum number of shares to be purchased. Following the tender offer, it plans to acquire up to 4,618,200 shares of our company, representing 66.0% of voting rights, less the number of our shares held by NTT DATA's specially related parties.」