A loyalty loop from design through maintenance to the next proposal

「At the same time, responding to a large-scale unprofitable project had a significant impact on the profitability and project operations of the business as a whole.」

「Against a favorable market backdrop, both the Company and its group companies have received many inquiries about projects, and revenue has grown steadily. However, profit fell short because costs such as subcontracting expenses increased as resources were focused on unprofitable projects.」

「In response to the emergence of this unprofitable project, we are strengthening the middle-management layer for development projects and the framework for accurately escalating project issues. We expect that the impact of unprofitable projects on both the project structure and profitability will no longer remain from the next fiscal year onward.」

「During the interim period of the current consolidated fiscal year, we focused on bringing to an end the continuing delays in the delivery schedule of a large-scale project, which had persisted since the first quarter of the current consolidated fiscal year. The project became unprofitable as a result of the substantial allocation of personnel and other resources, while the resulting resource shortage led to a decline in the acquisition of new projects.」

「During the cumulative first quarter of the current consolidated fiscal year, the concentration of requirements definition eased and proactive investment in winning projects proved effective, resulting in a recovery in both revenue and segment profit. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥838 million, up 0.1% year on year, while segment profit was ¥183 million, down 33.7% year on year.」

「Revenue in the Web Solutions business has increased steadily, from ¥1,190 million in the fiscal year ended January 2018, ¥1,272 million in the fiscal year ended January 2019, ¥1,425 million in the fiscal year ended January 2020, ¥1,824 million in the fiscal year ended January 2021, ¥2,184 million in the fiscal year ended January 2022, ¥2,876 million in the fiscal year ended January 2023, and ¥3,457 million in the fiscal year ended January 2024. In the fiscal year ended January 2024, approximately 80% of customers continued their contracts from the previous fiscal year. To further raise customer satisfaction and improve the retention rate, our strategy is to stabilize revenue and achieve continued growth by proactively designing services such as analysis and strategy development, rather than accepting one-off development orders only, and continuing to create what is known as a loyalty loop linking planning, development, maintenance and the next proposal.」

「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥2,661 million, up 25.8% year on year, and segment profit was ¥810 million, up 36.1% year on year.」

「In the Web Solutions business, we have built a loyalty loop by undertaking the full range of work, from designing services tailored to customer needs through development and maintenance, and have steadily expanded recurring orders and projects involving the provision of bundled services. We also view the development of the young employees responsible for this work as an important issue for business expansion. By giving them experience in positions of responsibility, we seek to improve their skills as development engineers and create a growth spiral in which those skills are passed on to new young employees. Against this backdrop, the Web Solutions business has steadily expanded its performance as a partner helping customers achieve digital transformation, supported by stable orders for recurring projects, steady acquisition of new projects in a buoyant market, and higher unit prices as projects have grown in scale. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥1,736 million, up 25.7% year on year, and segment profit was ¥567 million, up 45.5% year on year.」

「In the Web Solutions business, the Company has formed a loyalty loop by undertaking the entire process from service design tailored to customer needs through development and maintenance, and has steadily increased repeat orders and projects involving bundled services.」

「Revenue from the Web Solutions business increased steadily from ¥1,190 million in the fiscal year ended January 2018, to ¥1,272 million in the fiscal year ended January 2019, ¥1,425 million in the fiscal year ended January 2020, ¥1,824 million in the fiscal year ended January 2021, ¥2,184 million in the fiscal year ended January 2022 and ¥2,876 million in the fiscal year ended January 2023. In the fiscal year ended January 2023, 78.4% of customers continued their contracts from the previous fiscal year.」

「In the Web Solutions business, the Company formed a loyalty loop by undertaking the entire process from service design tailored to customer needs through development and maintenance, and was able to steadily increase repeat orders and projects involving bundled services.」

「In the Web Solutions business, the Company formed a loyalty loop by undertaking the entire process from service design tailored to customer needs through development and maintenance, and was able to steadily increase repeat orders and projects involving bundled services.」

「By undertaking the entire process from service design tailored to customer needs through development and maintenance, the Company formed a loyalty loop and was able to steadily increase repeat orders and projects involving bundled services.」

「Orders from existing and new customers have progressed smoothly, and revenue has remained strong.」

「Orders from both new and existing customers have progressed smoothly, and business performance has remained strong.」

「Revenue from the Web Solutions business increased steadily from ¥1,190 million in the fiscal year ended January 2018, to ¥1,272 million in the fiscal year ended January 2019, ¥1,425 million in the fiscal year ended January 2020 and ¥1,824 million in the fiscal year ended January 2021. In the fiscal year ended January 2021, 78.2% of customers continued contracts from the previous fiscal year. To further improve customer satisfaction and increase the retention rate, the Company plans to actively design services, including analysis and strategy development, rather than accepting one-off development orders only. It aims to achieve stable and sustained revenue growth by continuing to create what it calls a loyalty loop, in which this process leads to planning, development, maintenance and the next proposal.」