Creation of New Businesses and Markets and Overseas Expansion

「Planning of a supply chain security assessment support service Planning of a generative AI adoption support advisory service Pilot development of the new "Life Course Concierge AI" application for municipalities」

「New development of the generative AI service "AI-Zanmai (エーアイザンマイ)" for corporations and organizations」

「The main research and development activities during the consolidated fiscal year under review were as follows. Business Promotion Headquarters New development of the "Supplier Management Cloud" service for investigating contractors Enhancement of the "Targeted Attack Email Training Service" using generative AI Public Services Headquarters Planning of the "pipitLINQ Electronic Attachment Service" for municipalities in Saitama Prefecture」

「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.”」

「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.」

「Revenue was ¥3,055 million, compared with revenue of ¥2,695 million in the previous consolidated fiscal year, and segment profit was ¥513 million, compared with segment profit of ¥418 million in the previous consolidated fiscal year, mainly due to an increase in equipment implementation support services for financial institutions and cloud accounting system implementation support.」

「Revenue was ¥2,232 million, compared with revenue of ¥1,510 million in the same period of the previous year, and segment profit was ¥401 million, compared with segment profit of ¥206 million in the same period of the previous year, mainly due to increases in equipment implementation support service projects for financial institutions, BCP projects for general corporations, and regional intranet construction projects for municipalities.」

「Recognizing the importance of creating new services and products as sources of growth, we will continue promoting the creation of new services and businesses using digital technologies, including AI, IoT, and cloud-native applications, as well as open innovation, in response to growing corporate demand for strategic IT use, with the Digital Innovation Promotion Department at the center. At the same time, we will promote the development of products and systems that address various services expected to see growing demand in the new-normal society.」

「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.」

「Against this operating backdrop, during the cumulative consolidated second-quarter period under review, the fourth year of our group's long-term management plan, "Challenge 2021 Second Stage," we responded to demand for IT utilization based on the "new lifestyle" and to demand arising from related systems, including by actively promoting sales of telework solutions and winning information-processing service contracts related to municipalities' handling of special benefit payments. (Information-processing services) Revenue was ¥5,354 million, up 1.3% year on year, reflecting an increase in telework solution implementation projects for municipalities and general corporations and orders for projects including special benefit payment support.」

「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.」

「Recognizing the importance of creating new services and products as sources of growth, we will continue promoting the creation of new services, such as AI-OCR solutions, and new businesses using digital technologies, including AI, IoT, and cloud-native applications, as well as open innovation, centered on the Digital Innovation Promotion Department established in April 2019.」

「The Company worked to strengthen its SI business, including 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.」

「Recognizing the importance of creating new services and products as sources of growth, we will respond to growing corporate demand for strategic IT use by seeking to create new businesses that provide new added value, while also creating new services adapted to technological innovation in IT.」

「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.」

「We pursued various initiatives, including undertaking BPO operations for financial institutions in Saitama Prefecture and providing an electronic contract service that enables electronic storage of contracts, as well as a cyber-incident response simulation exercise service.」

「We promoted various initiatives, including launching sales of "Bromium," a next-generation security product using CPU virtualization technology, and concluding the "Six-City Disaster Agreement in Saitama Prefecture" to strengthen municipalities' disaster preparedness.」

「We have promoted 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.」

「We have promoted the planning and development of new services, including beginning an internal proof-of-concept trial for a biometric authentication service and providing crisis-response simulation training specialized for medical institutions.」

「Recognizing the importance of creating new services and products as sources of growth, we will respond to growing corporate demand for strategic IT use by seeking to create new businesses that provide new added value, while also creating new services adapted to technological innovation in IT.」

「Toward future commercialization, we have promoted efforts to provide new services, including prototyping and beginning trial operations of a customer-service support system using IBM Watson and Pepper.」

「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.」

「In addition to seeking to create new businesses that could become new core businesses, we will consider and promote market expansion, including business expansion overseas.」