Transforming the SI Business and Shifting to an IT Solutions-Based Model

「II. Deepening Our Core Business We will steadily execute major projects, including core system renewals, while expanding our relationships with customers. We will also provide customers with higher-quality services through the use of rapid development tools and generative AI.」

「Due in part to an increase in orders for DX projects for general corporate customers and an increase in projects for local governments, revenue was ¥4,795 million, up 63.3% year on year, and segment profit was ¥992 million, up 162.7%.」

「Due in part to an increase in large projects for general corporate customers, local governments and financial institutions, revenue was ¥7,354 million, up 32.0% from the previous fiscal year, and segment profit was ¥1,200 million, up 54.3%.」

「Due in part to an increase in large projects for financial institutions and local governments, revenue was ¥2,937 million, up 16.1% year on year, and segment profit was ¥377 million, up 16.5%.」

「(Software Development) Due in part to the expansion of on-site development accompanying an increase in large projects for financial institutions and general corporate customers, as well as an increase in commissioned software development for general corporate customers, revenue was ¥5,570 million, up 16.4% from the previous fiscal year, and segment profit was ¥778 million, up 85.6%, due in part to the completion of low-margin projects incurred in the previous fiscal year and the securing of profit margins on individual projects.」

「Due in part to the expansion of on-site development for large projects for financial institutions and the expansion of on-site development for individual projects for general corporate customers, revenue was ¥4,009 million, up 13.7% year on year, and segment profit was ¥573 million, up 128.0%, due in part to the completion of low-margin projects from the previous fiscal year and the securing of profit margins on individual projects.」

「Due in part to the expansion of on-site development for large projects for financial institutions and the expansion of on-site development for individual projects for general corporate customers, revenue was ¥2,530 million, up 10.7% year on year, and segment profit was ¥324 million, up 167.1%, due in part to the completion of low-margin projects from the previous fiscal year and the securing of profit margins on individual projects.」

「Although revenue was ¥1,091 million, down 3.1% year on year, due to the completion of low-margin projects from the previous fiscal year, segment profit was ¥118 million, up 318.2%, reflecting the securing of profit margins on projects for general corporate customers, financial institutions and public organizations.」

「(Software Development) Due in part to a decline in software development projects for financial institutions and general corporate customers, revenue was ¥3,525 million, down 2.3% year on year, and segment profit was ¥251 million, down 28.5%.」

「(Software Development) Due in part to a decline in software development projects for financial institutions and general corporate customers, revenue was ¥2,286 million, down 6.9% year on year, and segment profit was ¥121 million, down 60.1%.」

「(Software Development) Due in part to a decline in software development projects for local governments and financial institutions, revenue was ¥1,125 million, down 6.6% year on year, and segment profit was ¥28 million, down 77.6%.」

「Due in part to an increase in large-scale software development projects for financial institutions, revenue was ¥4,924 million, compared with revenue of ¥4,673 million in the previous fiscal year, and segment profit was ¥457 million, compared with segment profit of ¥370 million in the previous fiscal year.」

「Due in part to an increase in large software development projects for financial institutions and public organizations, revenue was ¥3,609 million, compared with revenue of ¥3,217 million in the same period of the previous year, and segment profit was ¥351 million, compared with segment profit of ¥242 million in the same period of the previous year.」

「Due in part to an increase in large software development projects for financial institutions and public organizations, revenue was ¥2,455 million, compared with revenue of ¥2,171 million in the same period of the previous year, and segment profit was ¥304 million, compared with segment profit of ¥205 million in the same period of the previous year.」

「(Software Development) Due in part to an increase in large software development projects for financial institutions and local governments, revenue was ¥1,204 million, compared with revenue of ¥1,043 million in the same period of the previous year, and segment profit was ¥126 million, compared with segment profit of ¥68 million in the same period of the previous year.」

「Based on these developments, the Company will accelerate its efforts involving next-generation IT technologies and seek to transform itself into a company capable of building high-value-added, service-based systems using these IT technologies. At the same time, to modernize customers' legacy systems, the Company will systematically adopt cloud-native technologies and thereby strengthen and expand its SI business.」

「Although the large order for a financial institution that had been postponed began operations, revenue was ¥3,217 million, down 22.7% year on year, due in part to the downsizing of on-site development, while segment profit was ¥242 million, down 59.0%, due in part to the decline in revenue and the lower profit margin.」

「(Software Development) Due in part to the postponement of large software development orders for financial institutions and the downsizing of on-site development, revenue was ¥2,171 million, down 17.1% year on year, and segment profit was ¥205 million, down 41.5%, reflecting the decline in revenue.」

「(Software Development) Due in part to the postponement of large software development orders for financial institutions and the downsizing of on-site development, revenue was ¥1,043 million, down 16.6% year on year, and segment profit was ¥68 million, down 45.3%, reflecting the decline in revenue.」

「Based on this, the Company will accelerate its efforts involving next-generation IT technologies such as AI and IoT and seek to transform itself into a company capable of building high-value-added, service-based systems using these IT technologies. At the same time, to modernize customers' legacy systems, the Company will systematically adopt cloud-native technologies, including microservices and container technologies, and continuously improve development and maintenance efficiency, thereby strengthening and expanding its SI business. Segment profit in Software Development was ¥751 million, up 11.6%.」

「The Company worked to strengthen its SI business, including by promoting sales of AI-OCR implementation and utilization support services and RPA consulting services.」

「Against this backdrop, during the six-month period ended 30 September, the third year of the Company's long-term management plan, Challenge 2021 Second Stage, the Company actively promoted its data center business while working to strengthen its SI business, including by promoting sales of Cloud Solution for AWS. (Software Development) Due in part to an increase in software development projects for financial institutions and local governments, revenue was ¥2,620 million, up 0.4% year on year, and segment profit was ¥351 million, up 17.2%.」

「(Software Development) Due in part to an increase in software development projects for financial institutions, revenue was ¥1,250 million, up 1.9% year on year, and segment profit was ¥124 million, up 21.6%.」

「Due in part to a decline in software development projects for general corporate customers, revenue was ¥5,491 million, down 3.8% from the previous fiscal year, while segment profit was ¥673 million, up 4.1%, due in part to an increase in the profit margin.」

「The Company worked to strengthen its SI business, including by launching sales of WebARGUS, a security solution service offering SaaS-based website tampering detection and recovery.」

「Due in part to a decline in software development projects for general corporate customers, revenue was ¥2,610 million, down 11.7% year on year, and segment profit was ¥299 million, down 10.0%.」

「Due in part to a decline in software development projects for general corporate customers, revenue was ¥1,227 million, down 15.9% year on year, and segment profit was ¥102 million, down 29.1%.」

「Revenue was ¥4,271 million, down 5.6% year on year, and segment profit was ¥468 million, down 7.2%, mainly due to a decrease in software development projects for general corporate customers.」

「The Company pursued various initiatives, including introducing INDESTA, a new development standard, to further improve quality and productivity in system development.」

「Revenue was ¥1,459 million, up 1.5% year on year, and segment profit was ¥144 million, up 73.4%, mainly due to an increase in software development projects for general corporate customers.」

「Revenue was ¥6,336 million, up 20.3% from the previous fiscal year, and segment profit was ¥742 million, up 30.4%, mainly due to an increase in software development projects for general corporate customers and higher revenue.」

「Revenue was ¥4,525 million, up 20.1% year on year, and segment profit was ¥505 million, up 39.4%, mainly due to an increase in software development projects for general corporate customers.」

「Revenue was ¥3,027 million, up 21.6% year on year, and segment profit was ¥312 million, up 17.8%, mainly due to an increase in software development projects for general corporate customers.」

「The Company will strengthen the competitiveness of its software development by reviewing development processes and further improving quality and productivity. It will also strengthen its ability to respond to changing and diversifying customer needs, such as the shift from ownership to usage represented by cloud services, and transform and strengthen its IT solutions-based business model.」