Strengthening the Overseas Network, SI and Cloud Business Infrastructure

「In the international business, revenue increased 12.9% year on year to ¥45.7 billion, driven by higher overseas revenue from demand for global networks among Japanese companies, progress on overseas data center construction projects, and growth at Singapore subsidiary PTC SYSTEM (S) PTE LTD.」

「In the international business, in addition to progress in existing operations, contributions from an overseas data center construction project worth approximately ¥2.8 billion and Singapore-based PTC SYSTEM (S) PTE LTD, a systems integrator made a wholly owned subsidiary in April 2021, helped drive a 38.1% year-on-year increase in international business revenue to ¥35.3 billion.」

「Systems integration has been below expectations due to the continued lengthening of project schedules as the number of large-scale projects increased. However, revenue from systems construction increased 12.0% year on year, partly because revenue of approximately ¥2.8 billion from an overseas data center construction project, whose timing had shifted from the first half, was recognized.」

「Revenue from temporary system construction and equipment sales decreased 8.0% year on year to ¥17,987 million (¥19,549 million in the same period of the previous year), due in part to the shift of an approximately ¥3 billion overseas data center construction project to the second half and a tendency for project schedules to lengthen as the number of large-scale projects increased.」

「Revenue recognition for an overseas data center construction project worth approximately ¥3 billion is scheduled for the second quarter.」

「Revenue from the international business, which includes a portion of the network services and systems integration revenue described above, increased 43.2% year on year, due to multiple global SASE projects and higher revenue at Singapore-based PTC SYSTEM (S) PTE LTD, the systems integrator that became a subsidiary at the beginning of the previous fiscal year. We also recently received an order worth approximately ¥3 billion for the construction of an overseas data center.」

「More recently, we also made progress in securing large projects expected to drive revenue growth from the next fiscal year onward, including the renewal of information network infrastructure for broadcasters, a large-scale systems infrastructure project for a major financial group, multi-year network renewal projects with confirmed orders, and the construction of overseas data centers.」

「Of this amount, revenue from Singapore-based PTC SYSTEM (S) PTE LTD, which we acquired in April and made a wholly owned subsidiary, was ¥5,301 million, while gross profit was ¥588 million.」

「Of this amount, revenue from Singapore-based PTC SYSTEM (S) PTE LTD, which we acquired in April and made a wholly owned subsidiary, was ¥3,641 million, while gross profit was ¥319 million.」

「Effective 1 April 2021, we acquired all shares of PTC SYSTEM (S) PTE LTD, a Singapore-based company primarily engaged in systems integration, making it a consolidated subsidiary. By making PTC a subsidiary, we expect to strengthen our Singapore business, which leads the use of IT in the ASEAN region, and to develop and expand our Group's business platform and service and solution delivery capabilities in the region.」

「In the international business, the Asian subsidiaries, which had been in the launch phase, became profitable as a group as operations progressed, in line with the plan. Revenue for the international business as a whole was ¥7.72 billion, and operating profit was ¥90 million.」

「In the international business, profits from the existing US and European bases offset losses at the Asian bases, which were still in the launch phase, resulting in a return to profitability for the business as a whole.」

「In the international business, in addition to operating our existing bases, we began collaborating with leading local companies in Thailand and Vietnam on cloud computing services. We also secured an export project for a containerized data center to Laos. Revenue from the international business was ¥6.39 billion (¥5.26 billion in the previous fiscal year), while the operating loss was ¥180 million (¥540 million in the previous fiscal year), and we anticipate turning profitable in fiscal 2017.」

「In the international business, we are promoting the launch of operations at bases in each country. During the third quarter, delivery of a containerized data center for Laos was completed and the related revenue was recognized.」

「To primarily address the overseas expansion needs of Japanese companies, we have 8 local subsidiaries in the United States, Europe and Asia, and are focusing on strengthening our business platform for providing network services and systems integration overseas.」