Provision of Highly Reliable, High-Value-Added IT Services

「Monthly recurring revenue from network services and systems operation and maintenance increased steadily, rising 12.0% year on year, and exceeded the outlook.」

「大型サービスインテグレーション獲得が恒常化、ストック売上継続伸長」

「Revenue for the six-month consolidated accounting period increased 10.1% year on year, supported by steady growth in network services and higher systems integration revenue. Operating income increased significantly, by 30.6% year on year, due to the revenue increase, the largely eliminated negative profit impact (*6) of the effective substantial price increases for VMware products in the previous fiscal year through price pass-through, and ¥1.17 billion in profit from the revision of the retirement benefit system, among other factors.」

「Revenue for the six-month consolidated accounting period increased significantly, rising 14.7% year on year on strong demand for systems integration and steady growth in network services, among other factors.」

「The company achieved the business model set out in its previous medium-term plan, comprising substantial growth in corporate recurring revenue and profit generation from economies of scale.」

「As a result, revenue from network services increased 9.3% year on year to ¥112,303 million (¥102,744 million in the same period of the previous year).」

「Demand for the construction of internal and external networks for companies and government agencies remained brisk, and recently the company won a large-scale network construction project with a total five-year value of approximately ¥12.3 billion.」

「As a result, revenue from network services increased 9.4% year on year to ¥36,354 million (¥33,234 million in the same period of the previous year).」

「We will provide the infrastructure that supports the networked society through IT services.」

「Demand remained favorable amid advances in corporate and government use of IT, and results progressed as expected, with higher revenue and profit.」

「Revenue from systems integration, including equipment sales, increased 19.5% year on year to ¥52,846 million (¥44,209 million in the same period of the previous year), while gross profit increased 36.1% to ¥7,989 million (¥5,869 million in the same period of the previous year).」

「Revenue from network services, excluding mobile-related services (*5), increased 9.4% year on year. In addition to continued growth in IP services (*6), security-related services, and WAN services (*7), there was an increase in projects such as network upgrades combining these services. In the systems integration field, demand for systems construction among companies and government agencies was brisk, with systems construction revenue and orders received increasing 11.7% and 23.1% year on year, respectively.」

「In the network services field, as corporate IT adoption advanced in response to the COVID-19 pandemic, revenue growth accelerated for corporate network services, including IP services, security-related services, and corporate mobile services, driving an increase in operating income.」

「In the network services field, internally developed services, including the core IP service and various security-related services, drove revenue growth.」

「Business conditions in the first quarter were favorable, with demand for corporate network services remaining strong and orders for systems integration robust.」

「During the nine months ended the third quarter, total revenue reached ¥156,070 million, driven by higher monthly recurring revenue from corporate customers, including internet connectivity services, outsourced services and systems operations and maintenance.」

「During the six months ended the second quarter, the Group's monthly recurring revenue from corporate customers increased 11.9% year on year, while total revenue of ¥101,665 million and operating profit of ¥5,239 million both exceeded the initial forecasts. Operating profit in particular rose sharply, increasing 56.3% year on year.」

「Revenue from the network services and systems integration (SI) businesses increased 2.0% year on year to ¥49,858 million (¥48,862 million in the same period of the previous year), while operating profit increased 99.2% to ¥1,991 million (¥999 million in the same period of the previous year).」

「During the nine months ended the third quarter, recurring revenue from corporate customers, including internet connectivity services, including mobile-related services, outsourced services such as security, and cloud computing-related services, accumulated steadily, and business performance progressed steadily.」

「During the six months ended the second quarter, business performance progressed steadily. Increases in gross profit from both network services and systems integration absorbed the increase in selling, general and administrative expenses and other costs, resulting in profit exceeding the earnings forecast announced at the beginning of the fiscal year.」

「In corporate network services, recurring revenue grew steadily from the beginning of the fiscal year through the combined provision of internet connectivity services, outsourced services such as security, and cloud computing-related services.」

「During the consolidated fiscal year, the Group continued to pursue its longstanding strategy of leveraging its internet-related technological capabilities and strong base of corporate customers to develop and provide highly reliable, high-value-added services on an integrated basis and capture outsourcing demand related to corporate information network systems. In particular, by focusing on enhancing the functionality of various corporate services, the Group strengthened its differentiation and steadily accumulated recurring revenue from corporate customers.」

「During the nine months ended the third quarter, acquisition and revenue trends for corporate recurring businesses, including internet connectivity services, outsourced services such as security, WAN services and cloud computing-related services, were strong. The systems integration gross margin also improved through enhanced operations and other measures, and business performance progressed steadily.」

「Recurring revenue(*3) from internet connectivity services, outsourced services such as security, and WAN services drove revenue growth and led to steady business performance. In terms of profit, the continued increase in network services revenue and higher gross profit resulting from an improved systems integration gross margin absorbed the increase in fixed costs for full MVNO services and other businesses, resulting in a 25.8% year-on-year increase in operating profit.」

「In corporate network services, recurring revenue from internet connectivity services, outsourced services such as security, and WAN services grew steadily from the beginning of the fiscal year.」

「Total revenue for the consolidated fiscal year continued to grow, supported by higher recurring revenue from the accumulation of ongoing projects, increasing 11.6% year on year to ¥176,051 million. Operating profit increased 31.7% year on year to ¥6,762 million, as higher gross profit from both network services and systems integration absorbed the increase in selling, general and administrative expenses.」

「In terms of profit, the increase in gross profit from both network services and systems integration absorbed the increase in operating expenses, resulting in a 19.7% year-on-year increase in operating profit.」

「In terms of profit, the increase in gross profit accompanying higher revenue absorbed the increase in operating expenses, resulting in a 18.9% year-on-year increase in operating profit.」

「Information security cloud projects for local governments, combining virtual desktops, internet environments, security, systems operations and maintenance, among other services, also drove revenue growth from the previous quarter.」

「We received multiple orders for information security cloud projects for local governments that fully outsource the internet connectivity environments of prefectures and municipalities.」

「The combined provision of these technologies has also been well received, and we have received orders from multiple local governments and major financial institutions for projects including information security cloud services that fully outsource the internet connectivity environments of prefectures and municipalities, and virtual desktop projects using cloud and security technologies.」

「The Group has demonstrated its strengths by providing these technological components in combination and is expected to further increase recurring revenue from the next fiscal year onward, having won, among other projects, a multi-year contract to provide a large-scale information security cloud service for a local government, involving full outsourcing of its network, systems and security, with monthly revenue expected to exceed ¥100 million.」

「By developing and providing highly reliable, high-value-added IT services that support social infrastructure, we will contribute to the optimal operation of the networked society.」