Strengthening marketing to expand the business beyond the telecommunications industry

「Using the four competitive assets it has built, the Group will expand into new areas and customer segments, including building and facilities management, energy and smart meters, AI cameras and authentication, social infrastructure, and disaster preparedness and resilience.」

「In IoT engineering services, projects involving the installation and replacement of the core smart-meter business, as well as installation projects involving IoT equipment such as network cameras and sensors, tenant meters and solar power generation facilities, expanded steadily. Revenue for the second quarter reached a record high.」

「In the IoT Engineering Services and IT Engineering Services fields, the stock-based business of stationing engineers at customer sites to provide monitoring, maintenance, and other services expanded, in addition to solid performance in smart meter installation and replacement. The number of companies adopting BLAS, a SaaS product launched in September 2023, also increased steadily, and sales activities are progressing steadily.」

「In the IoT engineering field, the company’s continued proposals for recurring projects such as monitoring and maintenance, in addition to project-based work such as smart-meter installation, led to the acquisition of recurring projects with high profit margins.」

「Outside telecommunications operators, smart-meter installations in the essential infrastructure sector progressed through the smart-meter installation services offered under the IoT engineering services business, which continued to perform steadily. In addition to IoT equipment installations, recurring projects in which engineers are stationed at customer sites to provide monitoring and maintenance services are also increasing steadily.」

「Outside telecommunications operators, smart-meter installations in the essential infrastructure sector progressed through the smart-meter installation services offered under the IoT engineering services business, which continued to perform steadily. In addition to IoT equipment installations, recurring projects in which engineers are stationed at customer sites to provide monitoring and maintenance services are also increasing steadily.」

「Outside telecommunications operators, smart-meter installations in the essential infrastructure sector progressed through the smart-meter installation projects offered under the IoT engineering services business, which continued to perform steadily. In addition, the company began charging for and offering generally available the SaaS platform “BLAS,” which enables efficient management of installation progress, workers and IoT equipment, in September 2023. By service, revenue was ¥905.303 million from mobile engineering services, down 20.2% year on year; ¥448.623 million from IoT engineering services, up 14.5%; and ¥43.226 million from other services, down 10.7%.」

「Until now, the company has developed customers within the limited mobile telecommunications market, centered on its own network. Expanding into a broad range of industries will require marketing efforts suited to those markets. The company has been testing marketing and public relations activities since 2019, and as these efforts have gradually begun to produce results, it will further strengthen its marketing activities going forward.」

「Outside the telecommunications operator sector, smart meter installation services provided through IoT Engineering Services have remained firm as smart meter installations have progressed in the gas industry. Although the smart meter installation plan in the power industry was nearly completed in fiscal 2020, additional orders have arisen for replacement work due to equipment defects, and this business has also remained firm, continuing from the previous fiscal year. IoT equipment installations are progressing above the previous fiscal year's level, with cumulative installations exceeding 550,000 devices as of the third quarter. In addition to equipment installation, business discussions concerning stock-based services such as operations and maintenance are increasing, and the number of stock-based projects is expected to increase from the fourth quarter onward.」

「Outside the telecommunications operator sector, smart meter installation services provided through IoT Engineering Services have remained firm as smart meter installations have progressed in the gas industry. Although the smart meter installation plan in the power industry was nearly completed in fiscal 2020, additional orders have arisen for replacement work due to equipment defects, and this business has also remained firm, continuing from the previous fiscal year. We also joined the “Kukan Jizai Project” consortium led by JR East (9020) and KDDI (9433). By applying our IT infrastructure construction expertise to the “new decentralized urban development” initiative aimed at creating a rich lifestyle unconstrained by time or place, we are expanding IoT equipment installation beyond the living-infrastructure field.」

「Outside telecommunications operators, smart-meter installations in the gas industry progressed through the smart-meter installation services offered under the IoT engineering services business, which continued to perform steadily. In the electricity industry, installation planning for smart meters was almost completed in fiscal 2020, but the company received additional orders to replace defective equipment, and this business also continued to perform steadily, as it did in the previous fiscal year. In addition, the company joined the “Space自在 Project” consortium led by JR East (9020) and KDDI (9433). By applying its expertise in IT infrastructure construction to the consortium’s “new decentralized approach to community development” aimed at creating a richer lifestyle unconstrained by time or place, the company is expanding IoT equipment installations beyond the essential infrastructure sector.」

「Fiscal year under review (1 July 2021 to 30 June 2022) IoT Engineering Services 1,165,736」

「Outside the telecommunications operator sector, smart meter installation services provided through IoT Engineering Services have generated sales above plan as smart meter installations have progressed in the gas industry. Although the smart meter installation plan in the power industry was nearly completed two fiscal years ago, additional orders have arisen for replacement work due to equipment defects, also resulting in sales above plan. As a result, the target of installing 350,000 devices for IoT Engineering Services was achieved ahead of schedule, with 390,000 devices installed as of the end of the third quarter accounting period. We also began installing IoT equipment for remote monitoring of the ultra-low-temperature storage of new coronavirus vaccines, expanding IoT equipment installation beyond the living-infrastructure field.」

「Outside the telecommunications operator sector, smart meter installation services provided through IoT Engineering Services have generated sales above plan as smart meter installations have progressed in the gas industry. Although the smart meter installation plan in the power industry was nearly completed two fiscal years ago, additional orders have arisen for replacement work due to equipment defects, also resulting in sales above plan.」

「Outside the telecommunications operator sector, smart meter installation services provided through IoT Engineering Services have generated sales above plan as smart meter installations have progressed in the gas industry. Although the smart meter installation plan in the power industry was nearly completed two fiscal years ago, requests have arisen to replace defective equipment, also resulting in sales above plan.」

「Expanding into a broad range of industries will require marketing efforts suited to those markets. The company has been testing marketing and public relations activities since 2019, and as these efforts have gradually begun to produce results, it will further strengthen its marketing activities going forward.」