Expansion of the Customer Base and Transformation of the Revenue Structure

「As a result of these initiatives, cloud service revenue for the six-month period ended 30 September increased 29.7% year on year as the number of customers using cloud software rose. Meanwhile, package system revenue declined 15.3% year on year as customers using package software continued to switch smoothly to cloud software. Although the switch changes the revenue mix between cloud services and package systems, it is an increase factor for total revenue. This revenue growth factor is expected to continue until the planned transition to cloud software is completed.」

「Under its performance plan for the fiscal year ending December 2028, the final year of the plan, the Group is targeting consolidated revenue of ¥32.0 billion, operating profit of ¥13.0 billion (operating margin of 40.6%), and profit for the year attributable to owners of the parent of ¥8.5 billion. In the fiscal year ending December 2025, the fourth year of the plan, it continued to expand the functions and enhance the performance of its core .c Series cloud software. It also actively made proposals aligned with customers' DX needs, continued switching customers to the core .c Series, and strengthened efforts to acquire new customers, resulting in a full-scale transition to a subscription-based revenue model.」

「Against this backdrop, the Group is pursuing the two growth strategies set out in its medium-term management plan (2022-2028), “Cloud Adoption” and “Service Expansion,” with the aim of supporting customers' innovation and business transformation. Specifically, it is systematically switching customers using package software to the .c Series cloud software while focusing on acquiring new customers. In addition to expanding the cloud software offerings, it is also advancing research and development of new platform-based services that use the Group's digital data and AI technologies.」

「Under its performance plan for the fiscal year ending December 2028, the final year of the plan, the Group is targeting consolidated revenue of ¥31.5 billion, operating profit of ¥13.0 billion (operating margin of 41.3%), and profit for the year attributable to owners of the parent of ¥8.0 billion.」

「Against this backdrop, the Group is pursuing “Cloud Adoption” and “Service Expansion,” the growth strategies in its medium-term management plan (2022-2028). It is gradually migrating customers in the mobility industry using package systems to cloud services while also acquiring new customers. It is also expanding its service offerings and improving processing performance to broaden the industries and customer sizes covered by its cloud services, thereby seeking to increase value for customers. During the six-month period ended 30 September, cloud service revenue increased 63.4% year on year due to the increase in monthly subscription contracts, including the .c Series cloud software.」

「Against this backdrop, the Group is pursuing “Cloud Adoption” and “Service Expansion,” the growth strategies in its medium-term management plan (2022-2028). It is gradually switching customers in the mobility industry from package systems to cloud services while stepping up efforts to acquire new customers. It is also expanding its service offerings and improving processing performance to broaden the industries and customer sizes covered by its cloud services, thereby seeking to increase value for customers.」

「Based on the Group's corporate philosophy of “Gratitude and Joy,” we are pursuing the two growth strategies set out in the medium-term management plan (2022-2028), “Cloud Adoption” and “Service Expansion,” and are targeting consolidated revenue of ¥32.5 billion, operating profit of ¥13.0 billion (operating margin of 40%), and profit for the year attributable to owners of the parent of ¥8.0 billion in the fiscal year ending December 2028, the final year of the plan. In the fiscal year ending December 2023, the second year of the plan, we actively made proposals aligned with customers' DX needs, continued switching customers to the core .c Series offering, and strengthened efforts to acquire new customers, resulting in an increase in the total number of customers.」

「Based on the Group's corporate philosophy of “Gratitude and Joy,” we are pursuing the two growth strategies set out in the medium-term management plan (2022-2028), “Cloud Adoption” and “Service Expansion,” and are targeting consolidated revenue of ¥32.5 billion, operating profit of ¥13.0 billion (operating margin of 40%), and profit for the year attributable to owners of the parent of ¥8.0 billion in the fiscal year ending December 2028, the final year of the plan. In the fiscal year ending December 2022, the first year of the plan, we began providing cloud software and transitioned to a monthly subscription business model to establish a foundation for revenue growth. In the fiscal year ending December 2023, the second year of the plan, we actively made proposals aligned with customers' DX needs, and the increase in monthly subscription offerings resulted in a shift to a revenue growth trend.」

「As its performance targets for the fiscal year ending December 2028, the final year of the plan, the Group has set consolidated revenue of ¥32.5 billion, operating profit of ¥13.0 billion (operating margin of 40%), and profit for the year attributable to owners of the parent of ¥8.0 billion, and is pursuing two growth strategies: “Cloud Adoption” and “Service Expansion.” In the fiscal year ending December 2023, the second year of the plan, we believe revenue shifted to a growth trend because the number of monthly subscription offerings increased substantially as we actively proposed cloud software and other products supporting customers' DX initiatives, allowing the accumulation of recurring revenue to progress smoothly.」

「As its performance targets for the fiscal year ending December 2028, the final year of the plan, the Group has set consolidated revenue of ¥32.5 billion, operating profit of ¥13.0 billion (operating margin of 40%), and profit for the year attributable to owners of the parent of ¥8.0 billion, and is pursuing two growth strategies: “Cloud Adoption” and “Service Expansion.”」

「As described above, the smooth transition from recognizing revenue upfront for multiple years to recognizing it under a monthly subscription model resulted in revenue of ¥10.067 billion for the nine-month period ended 30 September 2022 (down 33.7% year on year).」

「Sales of the .c Series are progressing smoothly as planned, with sales to new customers particularly strong.」

「During the three-month period ended 30 June, we began full-scale provision of the .c Series cloud software service, which has evolved into a total management system, supporting customers' DX initiatives across their businesses. Sales activities for the .c Series are progressing smoothly as planned, with sales to new customers particularly strong.」

「We also sought to increase adoption of our business software by transitioning sales to monthly subscription contracts and improving convenience at implementation. The transition to monthly subscription contracts will not only stabilize revenue for the Group but also generate growth over the medium to long term. However, as the transition was still in its early stages during the nine-month period ended 30 September, it became a factor behind the decline in revenue. Meanwhile, by strengthening our ability to propose solutions that support customers' DX initiatives, monthly revenue increased from various sources, including network usage fees and maintenance service fees for business software ancillary services, in addition to DX solution revenue.」

「In addition, we began transitioning sales of business software to monthly subscription contracts to achieve stable, sustainable revenue and growth over the medium to long term. Of these initiatives, the increase in the proportion of monthly subscription contracts in business software sales progressed beyond the initial plan.」

「In terms of business performance, monthly revenue, including network usage fees and maintenance service fees, increased as the number of business software users grew, while equipment sales declined following the previous increase. In addition, the increase in monthly subscription contracts for the ".NS series" business software raised the ratio of monthly revenue to consolidated revenue and improved the gross profit margin.」

「Against this backdrop, monthly recurring revenue increased, driven by factors including a higher support-service contract rate. However, because the prolonged sales cycle for business software had not fully recovered, one-time revenue, which is proportional to the number of contracts won, declined.」

「Our group has adopted "Gratitude and joy" as its management philosophy and "Accelerate the evolution from a package vendor to a platform provider" as the basic policy of its medium-term management plan ending in fiscal 2021. It provides platform services, including operating environments and common functions for various applications and transaction functions between users, mainly to markets such as the automotive aftermarket, and sells industry-specific applications.」

「Our group has adopted "Gratitude and joy" as its management philosophy and "Accelerate the evolution from a package vendor to a platform provider" as the basic policy of its medium-term management plan ending in fiscal 2021. It provides platform services, including operating environments and common functions for various applications and transaction functions between users, mainly to markets such as the automotive aftermarket, and sells industry-specific applications.」

「As a specific target, the company announced a 3-year plan through the fiscal year ending December 2021 on 14 February 2019. Its management policy is to "Accelerate the evolution from a package vendor to a platform provider" by using the newly launched digital business platform "Broadleaf Cloud Platform," with targets of ¥27.0 billion in revenue and a platform revenue ratio of more than 60% for the fiscal year ending December 2021.」

「Our group has adopted "Gratitude and joy" as its corporate philosophy and "Accelerate the evolution from a package vendor to a platform provider" as the basic policy of its medium-term management plan ending in fiscal 2021. It provides platform services, including operating environments and common functions for various applications and transaction functions between users, mainly to markets such as the automotive aftermarket, and sells industry-specific applications.」

「Our group has adopted "Accelerate the evolution from a package vendor to a platform provider" as its medium- to long-term management policy,」

「Against these circumstances, our group has adopted "Accelerate the evolution from a package vendor to a platform provider" as its medium- to long-term management policy,」

「Our group aims to expand its business domain beyond selling systems for Japan's automotive aftermarket and evolve into a company that creates innovative businesses incorporating advanced technologies. Specifically, it aims to enhance corporate value over the medium to long term through the following 5 priority strategies.」

「Our group is seeking to expand its customer base and transform its revenue structure, and has begun selling a new model, ".NS2," added to its business application ".NS series." It is also increasing the number of customers for its tablet-based business support tool "CarpodTab" and continuing measures to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard.」

「Against this business backdrop, our group is seeking to expand its customer base and transform its revenue structure, and has begun selling a new model, ".NS2," added to its business application ".NS series." It is also increasing the number of customers for its tablet-based business support tool "CarpodTab" and continuing measures to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard. In parallel, the group is progressively renewing the business applications it provides to customers and promoting initiatives to provide high-value-added services, including expanding its automotive-related database and developing data analytics services. In the third quarter of the current fiscal year, the group acquired shares in タジマ株式会社, which had competed with the group in systems for automotive repair shops and other areas, making it a consolidated subsidiary.」

「Against this business backdrop, our group is seeking to expand its customer base and transform its revenue structure by increasing the number of customers for its business applications, including the ".NS series," and its tablet-based business support tool "CarpodTab." It is also strengthening measures to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard, and to reinforce the operation of its online automotive replacement-parts marketplace, "部品MAX."」

「Against this business backdrop, our group is seeking to expand its customer base and transform its revenue structure by increasing the number of customers for its business applications, including the ".NS series," and its tablet-based business support tool "CarpodTab." It is also strengthening measures to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard, and to reinforce the operation of its online automotive replacement-parts marketplace, "部品MAX."」

「Against this business backdrop, the company is strengthening efforts to expand its customer base and transform its revenue structure by increasing the number of customers for its applications, including the ".NS series," and its tablet-based business support tool "CarpodTab," as well as to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard.」

「To expand its customer base and transform its revenue structure, the company is strengthening efforts to increase the number of customers for its applications, including the ".NS series," and its tablet-based business support tool "CarpodTab," as well as to establish its electronic ordering service for automotive parts, "BL Parts Order System," as an industry standard.」