Strengthening Relationships with Major Partners and Developing Mid-Tier Corporate Customers

「Although replacement projects for existing customers' virtualization platforms and projects for customers in the Tokyo metropolitan area contributed to revenue, the accumulation of mid-sized projects did not progress as planned, forcing a downward revision in the third quarter. Difficult conditions continued thereafter, resulting in a decline in revenue.」

「Although we were not yet able to achieve sufficient results during the interim accounting period, sales activities targeting growth industries such as semiconductors, AI, and gaming uncovered hardware demand associated with expanded production capacity.」

「As key initiatives to increase the number of new customers, we introduced marketing software to address growing cloud demand among high-quality customers such as mid-sized companies in the Tokyo metropolitan area and semiconductor-related companies in Kyushu, and hired a marketing specialist as an experienced professional in November 2024. We will promote DX (digital transformation) of the customer acquisition process to achieve more efficient customer acquisition.」

「We actively promoted sales of cloud infrastructure to companies in the electronic materials and semiconductor-related industries in the Tokyo metropolitan area and the vicinity of Kyushu, enabling us to develop high-quality customers. Activities leveraging the geographical advantage of having two locations, the Tokyo office and the engineering hub in Fukuoka, are progressing steadily.」

「To meet growing demand from SaaS and AI providers in the Tokyo metropolitan area, we pursued customer development. Including demand for resilience measures, we actively supported customers requiring advanced expertise and worked to increase sales of high-value-added hardware and software.」

「In the Secure Cloud Systems business, we promoted sales of private cloud construction services and successfully secured a large-scale order for a private cloud infrastructure for SaaS in April ("Notice of Large-Scale Order," timely disclosure dated 28 April 2023).」

「The large-scale project for a private cloud infrastructure for SaaS, disclosed earlier ("Notice of Large-Scale Order," timely disclosure dated 28 April 2023), is expected to contribute to results in the second half,」

「In the Secure Cloud business, we promoted customer development in the Kanto region and sales of cloud infrastructure construction services for companies such as SaaS providers and information and communications companies,」

「In developing customers in the Kanto region, we pursued collaboration with an IT company headquartered in Tokyo and worked to expand sales originating from such collaboration, including by introducing advanced hybrid clouds combining private cloud and public cloud (Citrix Cloud), such as VDI, to customers.」

「Against this backdrop, we worked to promote the "Essential Resilience" business concept, centered on building resilience environments for educational institutions and local governments; to advance a strategy for migrating core systems to the cloud through DX consulting, centered on expanding collaboration with partners in the Kanto region, including advanced VDI construction for major companies in Tokyo; and to increase production capacity through collaboration with Shin Provision Co. to address growing SaaS demand.」

「As a result of addressing strong cloud demand from SaaS providers, local governments, and educational institutions, strengthening resilience against cyberattacks for local governments, building core systems for food manufacturers seeking DX, and developing new customers in the Kanto and Kansai regions, revenue from the Secure Cloud Systems business was ¥1,125,952 thousand, compared with ¥952,175 thousand in the same quarter of the previous year, and segment profit was ¥262,418 thousand, compared with ¥218,614 thousand.」

「As a result of promoting sales activities to address strong cloud demand from SaaS providers and local governments, selling resilience solutions to companies, and moving the core systems of companies seeking DX to the cloud through partnerships, revenue in the Secure Cloud System Business totaled ¥432.944 million, compared with ¥399.280 million in the same quarter of the previous year, and segment profit totaled ¥85.666 million, compared with ¥69.225 million.」

「We promoted sales activities including strengthening sales in the Kanto region through the Tokyo Sales Department, expanding sales of resilience solutions, and addressing demand from SaaS providers for cloud infrastructure construction.」

「Against this backdrop, we promoted sales activities to capture business opportunities, including DX demand from mid-sized companies, resilience demand from local governments, and demand for strengthening cloud infrastructure for SaaS providers, while also strengthening our partner collaboration framework. As a result, revenue for the cumulative third quarter period was ¥1,349,636 thousand, down 24.2% year on year.」

「As efforts to develop demand for and enhance the value of resilience solutions, renew systems for strong mid-sized companies, and secure orders for cloud infrastructure development for SaaS providers progressed steadily, revenue in the Secure Cloud System Business totaled ¥952.175 million, down 18.6% year on year, and segment profit totaled ¥218.614 million, down 13.0%.」

「As orders secured by the Tokyo Sales Department, established in the current fiscal year, progressed steadily, revenue from the Secure Cloud Systems business was ¥399,280 thousand, down 17.7% year on year, and segment profit was ¥69,225 thousand, down 39.1%.」

「Progress in developing high-quality corporate customers with strong demand for cloud infrastructure upgrades increased the number of customers with stable purchasing power.」

「As orders from high-quality local corporate customers and major SaaS companies progressed steadily, revenue from the Secure Cloud Systems business was ¥1,741,733 thousand, up 56.3% year on year, and segment profit was ¥353,246 thousand, up 37.5%.」

「As orders from high-quality local corporate customers progressed steadily, revenue from the Secure Cloud Systems business was ¥1,169,275 thousand and segment profit was ¥251,322 thousand.」

「As orders from major partners and high-quality corporate customers progressed steadily, revenue from the Secure Cloud Systems business was ¥484,926 thousand and segment profit was ¥113,637 thousand.」

「We will work to strengthen relationships with major partners and develop mid-sized corporate customers.」