Establishment of the IoT business as a standalone segment and launch of new services through SBP

「Regarding the IoT business, the company determined that maintaining it independently would be difficult due to the deteriorating market environment caused by the prolonged impact of COVID-19 and other factors. It therefore integrated the business into the Information and Communications Systems business to leverage and roll out the expertise it had developed in its solutions business and create synergies.」

「In connection with the organisational change on 1 April 2022, the former IoT business was integrated into the Information and Communications Systems business. As a recovery in target customers’ willingness to invest cannot be expected amid the prolonged COVID-19 pandemic, we aim to revive the business and create synergies by selectively focusing on businesses and applying and expanding the expertise cultivated to date in the solution businesses in which our group excels.」

「Beginning in the next fiscal year, the company will integrate the IoT business with the Information and Communications Systems business and use and roll it out in its solutions business to improve the added value of existing businesses and expand sales of IoT systems.」

「As a result, IoT business sales were ¥4 million, compared with ¥2 million in the same period of the previous year, and the operating loss was ¥51 million, compared with an operating loss of ¥76 million in the same period of the previous year.」

「In the IoT business, we are promoting activities focused on expanding sales of related services for the Seiryo Business Platform (SBP) developed to date. During the six months ended ... , difficult conditions continued, including stagnating sales activities and declining customer willingness to invest due to the spread of COVID-19. Nevertheless, we continued to promote sales activities using our solutions and expand sales through marketing initiatives. As a result, IoT business sales were ¥1 million, unchanged from the same period of the previous year, and the operating loss was ¥34 million, compared with an operating loss of ¥51 million in the same period of the previous year.」

「We continue to promote sales activities using our solutions and expand sales through marketing initiatives. As a result, IoT business sales were ¥0 million, compared with ¥0 million in the same period of the previous year, and the operating loss was ¥18 million, compared with an operating loss of ¥25 million in the same period of the previous year.」

「During the fiscal year, although sales activities stagnated due to the spread of COVID-19, we worked to expand sales, including by actively promoting sales activities on the web. As a result, we jointly developed and delivered an emergency contact and reporting system with JR East Building Tech Co., Ltd., using the business systems platform of our company. We are also actively expanding the provision of systems that help prevent infectious diseases, such as the Ventilation Notification Package, in response to the need to prevent COVID-19 infections.」

「As a result, IoT business sales were ¥2 million, down 5.3% year on year, and the operating loss was ¥76 million, compared with an operating loss of ¥132 million in the same period of the previous year.」

「In the IoT business, we are promoting activities focused on expanding sales of related services for the Seiryo Business Platform (SBP) developed to date. During the six months ended ... , sales did not increase because sales activities stagnated due to the spread of COVID-19. However, we are actively expanding the provision of systems that help prevent infectious diseases, such as the Ventilation Notification Package, in response to the need to prevent COVID-19 infections.」

「In the IoT Business, we are pursuing initiatives focused on expanding sales of related services developed to date through the “Seiryo Business Platform (SBP).” In the first quarter, although sales activities stagnated and customer investment appetite weakened due to the spread of COVID-19, preventing an increase in revenue, profit improved year on year as a result of reductions in service development investment and other costs. As a result, revenue in the IoT Business was ¥0 million, up 28.1% year on year, and the operating loss was ¥25 million, compared with an operating loss of ¥41 million in the same period of the previous year.」

「In the IoT Business, we made active investments in developing various services for the rollout of IoT services through the “Seiryo Business Platform (SBP)” and in preparing our internal organization for the launch of the business. During the current fiscal year, we have also pursued demonstration projects in collaboration with local governments and companies and strengthened sales activities to expand sales of the various services announced in the previous fiscal year. As a result, revenue in the IoT Business was ¥2 million, down 49.2% year on year, and the operating loss was ¥132 million, compared with an operating loss of ¥128 million in the same period of the previous year.」

「In the IoT Business, we made active investments in developing various services for the rollout of IoT services through the “Seiryo Business Platform (SBP)” and in preparing our internal organization for the launch of the business. During the current fiscal year, we have also pursued demonstration projects in collaboration with local governments and companies and strengthened sales activities to expand sales of the various services announced in the previous fiscal year. As a result, revenue in the IoT Business was ¥1 million, up 91.5% year on year, and the operating loss was ¥81 million, compared with an operating loss of ¥74 million in the same period of the previous year.」

「In the IoT Business, we made active investments in developing various services for the rollout of IoT services through the “Seiryo Business Platform (SBP)” and in preparing our internal organization for the launch of the business. As a result, the operating loss in the IoT Business was ¥41 million, compared with an operating loss of ¥35 million in the same period of the previous year.」

「In the IoT Business, we actively pursued initiatives including the rollout of product and service packages that contribute to corporate productivity improvements, such as the urban agriculture IoT service “Agricultural Cloud,” the indoor location information solution “Office IoT” and the business reporting tool “Check-in,” using the “Seiryo Business Platform (SBP),” as well as demonstration projects in collaboration with local governments and companies. As a result, revenue in the IoT Business was ¥4 million, up 306.4% year on year, and the operating loss was ¥201 million, compared with an operating loss of ¥167 million in the same period of the previous year.」

「As a result, revenue in the IoT Business was ¥4 million, compared with no revenue in the same period of the previous year, and the operating loss was ¥128 million, compared with an operating loss of ¥92 million in the same period of the previous year.」

「During the cumulative second quarter of the consolidated fiscal year, the company launched product and service packages using the Seiryo Business Platform (SBP) and pursued various activities, including demonstration tests in collaboration with local governments and companies.」

「From the current consolidated fiscal year, we strengthened our organization to enter new business fields, including solutions using IoT, accelerated new business development, and reorganized the relevant department as the Business Development Headquarters in order to speed up decision-making, clarify responsibilities and enable more appropriate decisions. Accordingly, from the first quarter of the current consolidated fiscal year, the reporting segments were changed from the previous two segments, the Information and Communications Equipment Business and the Information and Communications Systems Business, to three segments: the Information and Communications Equipment Business, the Information and Communications Systems Business and the IoT Business.」