Research and development and market development in the metaverse and IoT fields

「In addition, the Company will promote cross-selling activities to existing customers of the Secure Cloud System business for the business metaverse, where specific corporate needs such as digital twins are becoming apparent.」

「Subscription sales of the business metaverse to existing customers contributed to revenue.」

「For the business metaverse, the Company is promoting sales activities using a business metaverse demonstration site launched in December. It received positive responses from new prospective customers and existing customers of the Secure Cloud System business. The Company began selling a new corporate training service, “Mental Training in the Metaverse to Raise Mental Perspectives and Vantage Points,” for companies seeking employee development, and is working to expand orders.」

「The first business metaverse system sold during the fiscal year began being used by the customer for public-facing applications. Having established a track record in development, the Company has gained momentum in future sales activities for business metaverse systems.」

「For the business metaverse, the Company completed the development of a business metaverse ordered in the first quarter and promoted sales activities to win new metaverse projects for local governments and other customers based on that track record.」

「In the metaverse field, completed orders for business metaverse projects have begun contributing to both revenue and operating profit, and initiatives prompted by new requirements are gradually expanding.」

「Multiple orders for MetaWalkers event applications from a major telecommunications operator with sales channels to large companies, together with the initial contribution to revenue from corporate metaverse development projects, resulted in revenue of ¥20.488 million, up 1651.8% year on year, and a segment profit of ¥5.306 million, compared with a segment loss of ¥4.956 million in the same quarter of the previous year. The business returned to profitability for the first time in 14 quarters since the cumulative third-quarter period of 2019, and for the first time since its separate listing on the Fukuoka Stock Exchange.」

「Led by the Metaverse Promotion Department established in January 2022, the Company is using its accumulated expertise, including experience building 3D virtual spaces and cloud IT infrastructure, to establish a partnership framework and develop prototypes for metaverse solutions.」

「The Company established its Metaverse Promotion Department in January this year and is promoting the establishment of a partnership framework and the development of prototypes for metaverse solutions.」

「In addition, following the lifting of priority preventive measures to prevent the spread of COVID-19, the Company focused on its post-COVID-19 strategy for 4DOH and worked to establish a partnership framework for entering the metaverse market.」

「In this business environment, the Company further promoted its “Essential Resilience” business concept, promoted the migration of core systems to the cloud, prompted by DX consulting, and promoted measures to address growing SaaS demand, while preparing to enter the new metaverse market.」

「To achieve early business growth, we will pursue research and development and market development aimed at new demand in fields such as the metaverse and IoT.」