Strengthening Long- and Medium-Term Competitiveness and Reforming the Business Structure

「Based on this understanding, to enhance the Group’s corporate value, the Phase 2 medium-term management plan sets out the aim of “becoming an IT partner that customers continue to choose even in the cloud era” and advances the following 4 priority measures: I. Promote the cloud and infrastructure security business; II. Deepen the core business; III. Advance the human resources strategy; IV. Improve management efficiency.」

「We will promote a “solution-based business” that supports customers’ DX and digitalization and helps resolve management issues, with the aim of expanding transactions with existing customers, improving customer satisfaction, and acquiring new major customers. In addition, amid the expected contraction of the mainframe (host computer) market and as aging core systems are renewed, we will promote DX through the use of cloud services and support modernization.」

「Against this backdrop, during the cumulative consolidated third quarter of the second year of the Group’s management plan “Keep On Changing — Solving Social Issues Through Our Business and Continuing to Transform,” we focused on reliably executing large-scale projects, including software development; expanding information processing services and the infrastructure and security businesses through Saitama iDC; and strengthening sales of DX solutions, including the launch of the new “Salesforce Implementation Support Service.”」

「During the cumulative consolidated second quarter of the second year of the Group’s management plan “Keep On Changing — Solving Social Issues Through Our Business and Continuing to Transform,” we focused on reliably executing large-scale projects, including software development; expanding information processing services through Saitama iDC and the infrastructure and security businesses; and strengthening sales of DX solutions aimed at solving social issues through promotion of the SDGs, steadily securing orders in the process.」

「Against this backdrop, during the cumulative consolidated first quarter of the second year of the Group’s management plan “Keep On Changing — Solving Social Issues Through Our Business and Continuing to Transform,” we focused on reliably executing large-scale projects, including software development; expanding Saitama iDC and the infrastructure and security businesses; and strengthening sales of DX solutions aimed at solving social issues through promotion of the SDGs.」

「Meanwhile, the impact of soaring electricity rates and higher procurement prices on earnings has been significant. To address this, the entire company is working to improve margins by reviewing prices for services centered on information processing services such as IDC services and intensifying cost reductions, including by curbing electricity consumption at business locations.」

「We sought to create and strengthen new businesses through partnerships, including business matching with business partners and business alliances and collaborations, and began providing them as new services.」

「Against this backdrop, during the cumulative consolidated first quarter of the first year of the Group’s new management plan “Keep On Changing — Solving Social Issues Through Our Business and Continuing to Transform,” we continued providing stable services after implementing thorough measures to prevent COVID-19 infections, while advancing various initiatives in response to the pandemic and focusing on promoting use of Saitama iDC, expanding the infrastructure and security businesses, and strengthening sales of DX solutions aimed at solving social issues through promotion of the SDGs.」

「<Transformation> Promote the DX and cloud integration business <Challenge> Create new services and businesses <Deepening> Deepen existing businesses <Reform> Improve management efficiency through structural reform <Growth> Develop human resources and implement a human capital growth strategy」

「During the cumulative consolidated third quarter of the final year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we worked to maintain stable business continuity across the Group after implementing thorough infection prevention measures and reliably executed large-scale projects, including software development. We also promoted initiatives to improve the efficiency of sales activities amid the COVID-19 pandemic and focused on strengthening sales of DX and security solutions aimed at solving social issues through greater use of Saitama iDC and promotion of the SDGs.」

「During the cumulative consolidated second quarter of the final year of the Group’s long-term management plan “Challenge 2021: Second Stage,” while a renewed state of emergency was in effect, we worked to maintain stable business continuity across the Group after implementing workplace COVID-19 vaccinations and thorough infection prevention measures. We also promoted initiatives to improve the efficiency of sales activities amid the COVID-19 pandemic and focused on strengthening sales of DX and security solutions aimed at solving social issues through greater use of Saitama iDC and promotion of the SDGs.」

「From January 2021, we focused on promoting use of “Saitama iDC,” a data center that began operating its new floor, and strengthening sales of DX and security solutions aimed at solving social issues through the promotion of the SDGs.」

「To make further progress toward our management objective of “building a sustainably growing management foundation,” we pursued priority measures under the Group’s long-term management plan “Challenge 2021: Second Stage,” including “strengthening and expanding the data center business,” through initiatives such as expanding the floor space at “Saitama iDC” and commencing operations in the new floor, and “transforming, strengthening and expanding the SI business,” through RPA and AI-OCR solutions, security solutions, and developing environments to realize the GIGA School initiative.」

「During the cumulative consolidated third quarter of the fourth year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we responded to demand for IT utilization and systems arising from the “new lifestyle,” including through active sales promotion of telework solutions and orders for GIGA School projects.」

「During the cumulative consolidated second quarter of the fourth year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we responded to demand for IT utilization and systems arising from the “new lifestyle,” including through active sales promotion of telework solutions and orders for information processing service projects related to municipalities’ response to special cash payments. (Information Processing Services) Due to an increase in telework solution implementation projects for municipalities and general corporations and orders for projects related to special cash payments, revenue was ¥5,354 million, up 1.3% year on year. However, segment profit was ¥770 million, down 0.4%, due to higher SG&A expenses, including personnel expenses, and lower margins.」

「During the cumulative consolidated first quarter of the fourth year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we responded to demand for IT utilization and systems arising from the “new lifestyle,” including through active sales promotion of telework solutions and orders for information processing service projects related to municipalities’ response to special cash payments.」

「During the cumulative consolidated third quarter of the third year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively promoted the data center business to expand the floor space at “Saitama iDC,” while strengthening the SI business by promoting sales of AI-OCR implementation and utilization support services and RPA consulting services.」

「During the cumulative consolidated second quarter of the third year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively promoted the data center business and worked to strengthen the SI business, including by promoting sales of “Cloud Solution for AWS.”」

「During the cumulative consolidated first quarter of the third year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively pursued business opportunities in data centers and BPO services for financial institutions, while advancing various initiatives, including launching sales of “AppGuard,” a next-generation security product that protects PCs against unknown virus infections, and fully rolling out “Private Cloud Quick III,” a third-generation IaaS platform.」

「Against this backdrop, to make further progress toward our management objective of “building a sustainably growing management foundation,” we focused on realizing the various measures under the Group’s long-term management plan “Challenge 2021: Second Stage,” including harnessing synergies across the AGS Group, strengthening our ability to respond to the IT market, and strengthening competitiveness over the medium to long term. We worked to reform our business structure by creating new businesses and services, improving existing services, and promoting work-style reform.」

「During the cumulative consolidated third quarter of the second year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively promoted the data center business, including launching a large-scale IDC service for municipalities, while strengthening the SI business through initiatives such as launching sales of the security solution service “WebARGUS (SaaS-based website tampering detection and recovery solution).”」

「Against this backdrop, during the cumulative consolidated second quarter of the second year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively pursued business opportunities in data centers and information security, while undertaking various initiatives, including providing outsourced BPO services for financial institutions in Saitama Prefecture, an “Electronic Contract Service” enabling electronic storage of contracts, and a “Cyber Incident Response Simulation Exercise Service.”」

「During the cumulative consolidated first quarter of the second year of the Group’s long-term management plan “Challenge 2021: Second Stage,” we actively pursued business opportunities in data centers and information security, while advancing various initiatives, including launching the next-generation security product “Bromium,” which uses CPU virtualization technology, and concluding the “Disaster Preparedness Agreement with 6 Cities in Saitama Prefecture” to strengthen municipalities’ disaster preparedness.」

「Against this backdrop, during the cumulative consolidated third quarter of the first year of the second stage of the Group’s long-term management plan, we actively pursued business opportunities in data centers and information security, while promoting the planning and development of new services, including launching a “SaaS-Based Targeted Attack Email Training Service.”」

「We pursued various initiatives, including providing an “RPA Implementation Support Service,” which is effective for automating routine operations, and introducing the new development standard “INDESTA” to further improve quality and productivity in system development.」

「Against this backdrop, during the cumulative consolidated first quarter of the second stage of the Group’s long-term management plan, we actively pursued business opportunities in data centers and information security, while promoting the planning and development of new services, including commencing an in-house proof-of-concept for providing biometric authentication functionality and offering an “Emergency Response Simulation Exercise” tailored to medical institutions.」

「As priority measures under the long-term management plan “Challenge 2021: Second Stage,” we will address the following issues.」

「Against this backdrop, in the third quarter of FY2016, the final year of the first stage of the Group’s long-term management plan, we actively pursued business opportunities in IDC-related services and information security, while promoting efforts to provide new services, including developing a prototype of a customer-service support system using IBM Watson and Pepper and commencing trial operations, with a view to commercializing the system in the future.」

「Against this backdrop, in the second quarter of FY2016, the final year of the first stage of the Group’s long-term management plan, we actively pursued business opportunities in IDC-related services and information security, while supporting regional disaster preparedness initiatives by financial institutions in Saitama Prefecture, including by conducting a joint “Emergency Response Simulation Exercise” with 6 financial institutions in the prefecture.」

「In the first quarter of FY2016, the final year of the first stage of the Group’s long-term management plan, we actively pursued business opportunities in IDC-related services and information security, while viewing advances in IT technologies such as big data, AI (artificial intelligence) and FinTech as an unparalleled opportunity to expand our earnings base, and promoted efforts to provide new services by strengthening collaboration with alliance partners.」

「We have focused on strengthening competitiveness over the medium to long term and worked to reform our business structure by creating new businesses and services, improving existing services, and streamlining operations.」