ERP invoice-related proposals, expansion into suitable industries, and improved win rates

「The rollout of these 3 solutions expanded the target market (TAM), keeping demand from new customers firm and driving orders above the initial plan. In addition to steady progress on implementation projects, average revenue per customer increased through the simultaneous implementation of peripheral infrastructure (cross-selling). As a result, revenue for the interim consolidated accounting period was ¥2,702.312 million, up 18.1% year on year, and segment profit was ¥599.211 million, up 29.2%, securing higher revenue and profit.」

「Demand from new customers remained firm through the rollout of these 3 solutions, and orders exceeded the initial plan. In addition to steady progress on implementation projects, the simultaneous implementation of peripheral infrastructure also grew, resulting in revenue of ¥4,649.893 million, up 20.7% year on year, and segment profit of ¥987.379 million, up 40.7%, securing higher revenue and profit.」

「We will move away from an earnings structure centered on “GRANDIT” and develop the global-standard “SAP” and the manufacturing-industry-focused “mcframe” as our next pillars of growth.」

「Demand from new customers remained firm through the rollout of these 3 solutions, and orders exceeded the initial plan. In addition to steady progress on implementation projects, the simultaneous implementation of peripheral infrastructure also grew, resulting in revenue of ¥2,288.617 million, up 28.4% year on year, and segment profit of ¥463.673 million, up 40.9%, securing higher revenue and profit.」

「The company can address a broad range of customer needs by proposing 「GRANDIT」 to companies seeking to tailor their systems to their operations through customization and add-on development, and 「SAP」 to companies seeking early implementation and benefits by using industry-standard best practices. For 「SAP」, it is also conducting closing activities for specific opportunities ahead of its first order.」

「Development projects for existing 「GRANDIT」 users progressed, and sales of the 「Electronic Ledger Storage Act Compliance Solution」, designed to address the amended Electronic Books Preservation Act, which became mandatory in January 2024, also increased. Orders for new large-scale projects also remained firm.」

「In addition to winning highly profitable development projects related to invoice-system compliance, personnel expenses were contained through a review of the hiring plan, resulting in a significant increase in operating profit.」

「Many projects addressing the invoice system progressed for existing customers. As a result, revenue for the cumulative second quarter was ¥1,587.117 million, up 17.9% year on year, and segment profit was ¥343.664 million, up 85.2%. As the number of inquiries and proposals is increasing, during the second half we will efficiently deploy development resources that had been allocated to invoice-system compliance projects to new development projects and pursue further growth.」

「In the ERP business, inquiries from new customers remained solid, and orders progressed in line with the order plan formulated at the beginning of the fiscal year. In addition to promoting proposals for the invoice system to existing customers, the Company focused on winning new projects in industries suited to its solutions. As a result, revenue for the cumulative first quarter was ¥705.528 million, up 14.7% year on year, and segment profit was ¥137.786 million, up 178.4%. Although the number of inquiries and proposals is increasing, the Company will seek to raise its order conversion rate and conduct sales activities more efficiently.」