Business expansion in advanced technology fields such as IoT, cloud computing and AI

「1. Shift to an "intelligence-intensive" model combining AI with practical knowledge」

「In addition to our existing initiatives, we will establish a stronger structure to meet accelerating business needs through investment in personnel and in improving our operating environment.」

「We intend to pursue presales activities in a balanced manner, primarily for existing and new projects with existing customers, while steadily developing new customers. Alongside focusing on adding value through nearshore development carried out through cooperation among our Tokyo, Nagoya and Osaka locations, we will seek to develop the business by using low-code development projects offering short development times, low costs and high quality as an entry point for winning new customers and projects.」

「For the cumulative third quarter, revenue was ¥3,853 million, an increase of ¥212 million, or 5.8%, from the same quarter of the previous year. Segment profit was ¥482 million, an increase of ¥2 million, or 0.5%. This was mainly due to the steady capture of systems investment demand from existing customers, in addition to low-code development projects for which social demand continues to grow.」

「For the cumulative second quarter, revenue was ¥2,530 million, an increase of ¥166 million, or 7.0%, from the same quarter of the previous year. Segment profit was ¥306 million, an increase of ¥9 million, or 3.0%. This was mainly due to the strategic acquisition of low-code development projects amid rising demand across industries.」

「To meet a broader range of customer needs, we will place even greater emphasis on low-code application development that delivers short development times, low costs and high quality.」

「Against this backdrop, we expanded products supporting customers' DX initiatives and compliance with the Electronic Books Preservation Act, as well as tools for using big data. We also created new frameworks, including “Project Dolittle,” which seeks to transform communication with diverse animals, and “Education Supporters,” which connects students with society.」

「Against this backdrop, we actively pursued initiatives contributing to the creation of a better society, including developing and launching our proprietary trade SaaS product Beyond TheBook, beginning development of a new AI-based brain nuclear medicine testing method, and developing an application to make communication with people with hearing impairments borderless.」

「Against this backdrop, in addition to developing our own directional receiver, we further advanced initiatives toward creating a sustainable society, including participating in the Osaka DX Promotion Partners program supporting the digital transformation of small and medium-sized enterprises, filing a patent application relating to a “tertiary battery,” and participating in the development of an X-ray medical vehicle for the initial diagnosis outside hospitals of patients who test positive for COVID-19.」

「As core networks are replaced from 4G to 5G, implementation of IoT-related technologies, including remote control, connected cars and robots, is expected to advance. We will make maximum use of the expertise and business base in communications control and embedded systems that we have developed over many years, together with our increasingly established skills in cloud computing, AI and RPA, to secure a stable volume of projects from existing customers and actively approach new customers.」

「Against this backdrop, we are strengthening initiatives aimed at business development, including AI, IoT and cloud computing, with the goal of achieving sustainable growth despite changes in the business environment.」

「In developing new products, services and business areas, we not only expanded our 3 existing businesses but also strengthened forward-looking initiatives in areas including AI, RPA, cloud computing and tertiary batteries. We also invested to secure new business opportunities, including by establishing multiple new project rooms.」

「Topics included initiatives to expand the business, such as launching the intra-mart DPS for Sales sales support and customer management solution, beginning development with Osaka Institute of Technology to create AI training data efficiently, and starting a proof-of-concept experiment to improve in-plant logistics using a wide-area positioning system based on BLE beacons and LPWA technology.」

「Topics included initiatives using advanced technologies, such as developing a system that applies AI to medical image analysis, a proof-of-concept experiment using AI to produce a fashion show, and obtaining partner certification under the Google Cloud Partner Program, in addition to improving operational efficiency in the existing 3 businesses.」

「We also began new initiatives with a view to the future, including the development of an “AI-based medical image interpretation system” with Micron.」

「In developing new products, services and business areas, the Company strengthened forward-looking initiatives including AI, VR, drones, RPA and third-generation batteries, in addition to expanding its existing 3 businesses.」

「This resulted from successful efforts to strengthen sales and develop personnel, which increased new projects involving AI and cloud technologies, as well as highly profitable contract projects and direct-contract projects.」

「As part of these efforts, the Company promoted VR, AI and blockchain businesses and began joint research with the General Incorporated Association Drone Pilot Association aimed at promoting the industrial use of drones.」

「Based on the infrastructure construction, maintenance and operations, and software design and development technologies cultivated over many years, the Company will seek to increase revenue and profit by expanding its IoT business using embedded-control technology and expanding highly productive development projects using the latest application development tools. It will also seek to win orders for business in new fields by expanding its presales organisation and establishing an environment for acquiring new technologies.」

「The Company began providing an AR system linking AR glasses with FCS1301, a thin Bluetooth sensor device for business-use beacons.」

「The Company began providing an AR system linking AR glasses with FCS1301, a thin Bluetooth sensor device for business-use beacons.」

「The Company will seek to increase revenue and profit by expanding its IoT business using embedded-control technology and expanding highly productive development projects using the latest application development tools. It will also continue securing and developing personnel capable of addressing cutting-edge technologies, including large-scale data processing using the internet, as represented by cloud computing, and AI-based solutions, with the aim of winning orders for business in new fields.」