Medium-Term Management Plan to Build the Foundation for Sustainable Growth

「During the fiscal year, each business area performed steadily, and revenue exceeded plan, resulting in higher revenue. On the profit side, although the Group actively made investments and conducted M&A aimed at future business expansion in accordance with the medium-term management plan, operating profit increased due to the growth of high-value-added businesses and the effect of higher revenue.」

「Against this backdrop, the Group is formulating the medium-term management plan “Be a Visionary System Integrator” for the period from April 2025 to March 2028. As social conditions and technology trends continue to change, the issues faced by customers are becoming increasingly complex and diverse, and substantive, high-value contributions are being demanded. Under this medium-term management plan, the Group’s vision is to become a unique presence for customers and achieve long-term growth by honing its foresight toward the future and providing outstanding development technologies and services. To achieve this vision, the Group has established two basic strategies. The first, “Diversification and advancement of expertise and knowledge,” aims to improve its ability to address increasingly complex customer issues by building expertise across a broader range of highly specialized fields. The second, “Improving the ability to make proposals that deliver customer value,” aims to enhance the Group’s ability to maximize customer value through the effective use of IT, based on a deep understanding of the characteristics of elemental technologies and customers’ circumstances and strategies. During the six-month period ended 30 September, each business area performed steadily, and revenue exceeded plan, resulting in higher revenue.」

「The Group formulated the new medium-term management plan “Be a Visionary System Integrator,” which begins in fiscal 2025. As social issues become increasingly complex, the Group will hone its foresight toward the future, provide outstanding development technologies and services, become a unique presence for its customers, and work to achieve long-term growth.」

「Against this backdrop, the Group formulated the medium-term management plan “Shift to the Smart SI Plus,” covering the period through March 2025, and is pursuing its business activities with the vision of evolving into a next-generation system integration (SI) business based on high-value-added IT services that identify latent needs in the market and society. During the six-month period ended 30 September, each business area performed steadily, and revenue exceeded plan, resulting in higher revenue. On the profit side, the Group secured higher profit through the effect of higher revenue and rigorous project management, including the continued use of project performance functions, while working to secure the planned level of profitability for each project.」

「The ¥40 billion revenue target set for the final year of the plan has effectively been achieved nearly one year ahead of schedule.」

「Against this backdrop, the Group formulated the medium-term management plan “Shift to the Smart SI Plus,” covering the period through March 2025, and is pursuing its business activities with the vision of evolving into a next-generation system integration (SI) business based on high-value-added IT services that identify latent needs in the market and society. During the nine-month period ended 31 December, each business area performed steadily, and revenue exceeded plan, resulting in higher revenue. On the profit side, costs increased as the Group actively pursued investments aimed at future business expansion, but operating profit exceeded plan due to the effect of higher revenue, resulting in a slight increase in profit. As a result, revenue for the nine-month period ended 31 December was ¥28,744 million, up 12.3% year on year; operating profit was ¥2,912 million, up 1.7%; ordinary profit was ¥3,361 million, up 9.4%; and profit attributable to owners of the parent was ¥2,265 million, up 8.7%.」

「During the first six months of the fiscal year under review, business conditions in each business area remained solid, and net sales exceeded the plan, resulting in higher sales. In terms of profit, costs increased as the Group actively pursued investment to support future business expansion, but the effect of higher sales enabled operating profit to exceed the plan and resulted in a slight increase in profit.」

「Against this backdrop, the Group has begun the second year of its medium-term management plan Shift to the Smart SI Plus, covering the period from April 2022 to March 2025. The plan sets out a vision of evolving into a next-generation system integration business that responds to new trends in digital technology, based on the concept of providing high-value-added IT services that address latent needs in the market and society. During the first quarter of the fiscal year under review, business conditions in each business area remained solid, and net sales exceeded the plan, resulting in higher sales.」

「Under the medium-term management plan Shift to the Smart SI Plus, covering April 2022 to March 2025, the Group continues the basic concept of providing high-value-added IT services that address latent needs in the market and society, carried over from the previous medium-term management plan, and sets out a vision of evolving into a next-generation system integration business that responds to new trends in digital technology.」

「The Group has formulated the medium-term management plan Shift to the Smart SI Plus for the period from April 2022 to March 2025. The plan continues the basic concept of providing high-value-added IT services that address latent needs in the market and society, carried over from the previous medium-term management plan, and sets out a vision of evolving into a next-generation system integration business that responds to new trends in digital technology. As a result, during the first nine months of the fiscal year under review, net sales were ¥25,595 million, up 14.5% year on year; operating profit was ¥2,863 million, up 14.1%; ordinary profit was ¥3,073 million, up 17.1%; and profit attributable to owners of the parent was ¥2,084 million, up 16.9%.」

「Against this backdrop, the Group has formulated the medium-term management plan Shift to the Smart SI Plus for the period from April 2022 to March 2025. The plan continues the basic concept of providing high-value-added IT services that address latent needs in the market and society, carried over from the previous medium-term management plan, and sets out a vision of evolving into a next-generation system integration business that responds to new trends in digital technology. To realize this vision, the Group has established three basic strategies.」

「The Group has formulated the medium-term management plan Shift to the Smart SI Plus for the period from April 2022 to March 2025. The plan continues the basic concept of providing high-value-added IT services that address latent needs in the market and society, carried over from the previous medium-term management plan, and sets out a vision of evolving into a next-generation system integration business that responds to new trends in digital technology. To realize this vision, the Group has established three basic strategies.」

「Under the new medium-term management plan, Shift to the Smart SI Plus, which began in fiscal 2022, the company aims to become a Next-Generation Systems Integrator. Its vision is to contribute to the realization of a smarter society by providing high-value-added IT services that address latent IT needs in the market and society.」

「Against this backdrop, under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business, or SI business, that responds to new trends in digital technology. In terms of profit, in addition to the effect of higher sales, high-value-added SI services progressed ahead of plan as demand for digitalization increased, while selling, general and administrative expenses were contained. As a result, profit increased, and the Group is actively investing to support further business expansion in the future. During the first nine months of the fiscal year under review, net sales were ¥22,357 million, up 13.9% year on year; operating profit was ¥2,510 million, up 48.8%; ordinary profit was ¥2,623 million, up 42.1%; and profit attributable to owners of the parent was ¥1,782 million, up 43.7%.」

「Against this backdrop, under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business that responds to new trends in digital technology. The Group secured higher profit as high-value-added SI services progressed ahead of plan and selling, general and administrative expenses were contained, and is preparing to make active investments for further business expansion in the future. As a result, during the first six months of the fiscal year under review, net sales were ¥14,661 million, up 11.2% year on year; operating profit was ¥1,588 million, up 47.5%; ordinary profit was ¥1,647 million, up 48.8%; and profit attributable to owners of the parent was ¥1,117 million, up 49.9%.」

「To realize this vision, the Group has established two basic strategies. The first, Pursuit of High-Value-Added SI Services, promotes service businesses that use the latest component technologies to meet customers' needs for value creation in advancing digital transformation. The second, Promotion of SI Model Transformation, promotes measures to differentiate the Group from its competitors through an innovative approach to building the foundation for high-value-added SI services and establishing SI processes that combine high productivity with high quality. Specifically, the Group is focusing on agile-related and security-related businesses, which it has designated as priority strategic areas.」

「During the first quarter of the fiscal year under review, business conditions in each business area remained solid from the beginning of the fiscal year, while the impact of COVID-19 was limited as the Group worked to ensure business continuity through thorough countermeasures and the active use of remote work. As a result, net sales increased. Profit also increased, supported by the effect of higher sales, progress in the shift toward higher value added under the medium-term management plan, and the effect of controlling selling, general and administrative expenses. Net sales were ¥7,079 million, up 14.6% year on year; operating profit was ¥826 million, up 88.2%; ordinary profit was ¥847 million, up 84.4%; and profit attributable to owners of the parent was ¥579 million, up 85.4%.」

「In particular, agile-related and security-related businesses, designated as priority strategic areas from the fiscal year ending March 2020, expanded steadily. In the fiscal year ending March 2021, sales from these businesses reached ¥3,362 million, or 112.1% of the plan, accounting for 12.3% of consolidated net sales.」

「Against this backdrop, under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business, or SI business, that responds to new trends in digital technology. To realize this vision, the Group has established two basic strategies. The first, Pursuit of High-Value-Added SI Services, promotes service businesses that use the latest component technologies to meet customers' needs for value creation in advancing digital transformation. The second, Promotion of SI Model Transformation, seeks to differentiate the Group from its competitors through an innovative approach to building the foundation for high-value-added SI services and establishing SI processes that combine high productivity with high quality. As a result, during the first nine months of the fiscal year under review, net sales declined 1.0% year on year to ¥19,633 million due to the postponement or temporary suspension of some projects affected by COVID-19 and restrictions on face-to-face sales activities. Meanwhile, profitability improved as the shift toward higher value added in the business under the medium-term management plan progressed steadily. Operating profit rose 7.1% to ¥1,686 million, ordinary profit rose 13.5% to ¥1,845 million, and profit attributable to owners of the parent rose 15.2% to ¥1,240 million.」

「As a result, during the first six months of the fiscal year under review, net sales were ¥13,186 million, up 0.4% year on year; operating profit was ¥1,077 million, up 5.6%; ordinary profit was ¥1,107 million, up 6.6%; and profit attributable to owners of the parent was ¥745 million, up 8.5%.」

「Against this backdrop, under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business, or SI business, that responds to new trends in digital technology. As a result, during the first quarter of the fiscal year under review, net sales were ¥6,177 million, up 2.8% year on year; operating profit was ¥439 million, up 29.1%; ordinary profit was ¥459 million, up 25.5%; and profit attributable to owners of the parent was ¥312 million, up 28.9%.」

「Under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business, or SI business, that responds to new trends in digital technology.」

「During the first nine months of the fiscal year under review, net sales rose 6.2% year on year to ¥19,838 million as growth strategies in each business area progressed steadily. However, selling, general and administrative expenses increased as the Group actively invested in structural reforms and the creation of high-value-added SI services to become a Next-Generation Systems Integrator. Operating profit fell 8.2% to ¥1,575 million, ordinary profit fell 10.0% to ¥1,626 million, and profit attributable to the parent fell 9.6% to ¥1,076 million.」

「Under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business, or SI business, that responds to new trends in digital technology. In the agile development field, in particular, the Group is working to expand its agile development services by increasing the number of Scrum-certified engineers, the de facto standard, and has entered into a partnership agreement with US-based Scaled agile, Inc., which provides large-scale agile frameworks. It is promoting the provision of comprehensive agile solutions, including consulting and training services to support the introduction of agile methods within organizations.」

「Under its medium-term management plan, Shift to the Smart SI, covering April 2019 to March 2022, the Group aims to become a Next-Generation Systems Integrator. Its vision is to capture latent market needs and evolve into a next-generation system integration business that responds to new trends in digital technology.」

「Under its medium-term management plan vision, Next-Generation Systems Integrator, for the period from April 2019 to March 2022, the Group aims to evolve into a next-generation system integration business that addresses customers' latent needs in preparation for the full-scale arrival of digital transformation. It will pursue high-value-added SI services and establish new business processes without being constrained by past practices or frameworks, with the aim of achieving sustained increases in net sales and profit.」

「Against this backdrop, based on the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is strengthening its partner-based business, which works closely with customers and provides services across a broad range of processes and business areas, and its solution-based business, which specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth. As a result, during the first nine months of the fiscal year under review, growth strategies in each business area progressed steadily. Net sales were ¥18,678 million, up 10.2% year on year; operating profit was ¥1,716 million, up 24.6%; ordinary profit was ¥1,807 million, up 27.3%; and profit attributable to owners of the parent was ¥1,190 million, up 32.1%.」

「Against this backdrop, based on the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is strengthening its partner-based business, which works closely with customers and provides services across a broad range of processes and business areas, and its solution-based business, which specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth.」

「Against this backdrop, based on the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is strengthening its partner-based business, which works closely with customers and provides services across a broad range of processes and business areas, and its solution-based business, which specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth. As a result, during the first quarter of the fiscal year under review, growth strategies in each business area progressed steadily. Net sales were ¥5,574 million, up 10.1% year on year; operating profit was ¥398 million, up 58.0%; ordinary profit was ¥435 million, up 59.2%; and profit attributable to owners of the parent was ¥286 million, up 91.5%.」

「The Group's performance reflected steady progress in the growth strategies for each business area. Net sales rose 4.2% year on year to ¥23,946 million. In terms of profit, the active pursuit of these investment activities resulted in operating profit rising 12.5% to ¥1,851 million, ordinary profit rising 12.8% to ¥1,906 million, and profit attributable to owners of the parent rising 7.2% to ¥1,249 million.」

「As a result, during the first nine months of the fiscal year under review, growth strategies in each business area progressed steadily, and net sales rose 3.8% year on year to ¥16,954 million. In terms of profit, the active pursuit of these investment activities resulted in operating profit declining 3.4% to ¥1,377 million, ordinary profit declining 3.6% to ¥1,419 million, and profit attributable to owners of the parent declining 2.2% to ¥901 million.」

「Based on this basic strategy, during the fiscal year ending March 2018, the Group actively invested in human resources and intellectual property in various areas, including expanding its existing businesses, creating new businesses for the future, and strengthening the corporate infrastructure supporting them. As a result, during the first six months of the fiscal year under review, growth strategies in each business area progressed steadily, although net sales rose 1.8% year on year to ¥11,334 million. In terms of profit, the active pursuit of these investment activities resulted in operating profit declining 9.6% to ¥889 million, ordinary profit declining 8.1% to ¥917 million, and profit attributable to owners of the parent declining 8.6% to ¥570 million.」

「Against this backdrop, under the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is also strengthening two business models: a partner-based business that works closely with customers and provides services across a broad range of processes and business areas, and a solution-based business that specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth. During the first quarter of the fiscal year under review, growth strategies in each business area progressed steadily, although net sales declined 0.8% year on year to ¥5,065 million. In terms of profit, costs increased as the Group stepped up investment, recruitment and human-resource development activities to support future business expansion. Operating profit fell 29.2% to ¥252 million, ordinary profit fell 26.5% to ¥273 million, and profit attributable to owners of the parent fell 34.9% to ¥149 million.」

「The Group's performance reflected steady progress in the growth strategies for each business area. Net sales were ¥22,991 million, up 9.8% year on year; operating profit was ¥1,645 million, up 24.5%; ordinary profit was ¥1,690 million, up 29.5%; and profit attributable to owners of the parent was ¥1,165 million, up 48.8%.」

「Against this backdrop, under the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is also strengthening two business models: a partner-based business that works closely with customers and provides services across a broad range of processes and business areas, and a solution-based business that specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth. As a result, during the first nine months of the fiscal year under review, growth strategies in each business area progressed steadily. Net sales were ¥16,336 million, up 9.9% year on year; operating profit was ¥1,426 million, up 37.4%; ordinary profit was ¥1,473 million, up 39.4%; and profit attributable to owners of the parent was ¥922 million, up 45.9%.」

「During the first six months of the fiscal year under review, growth strategies in each business area progressed steadily. Net sales were ¥11,138 million, up 14.8% year on year; operating profit was ¥983 million, up 49.0%; ordinary profit was ¥999 million, up 48.6%; and profit attributable to owners of the parent was ¥624 million, up 55.3%.」

「Under the medium-term management plan covering the period from April 2016 to March 2019, the Group is working to contribute to customers' prosperity with the aim of becoming the partner company most trusted by customers. It is also strengthening two business models: a partner-based business that works closely with customers and provides services across a broad range of processes and business areas, and a solution-based business that specializes in operations and technology and provides services to a broad range of customers. The Group's basic strategy is to invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth. During the first quarter of the fiscal year under review, growth strategies in each business area progressed steadily. Net sales were ¥5,104 million, up 16.7% year on year, and operating profit was ¥356 million, up 54.7%.」

「The Group has formulated a medium-term management plan for the period from April 2016 to March 2019 as a plan for building the foundation for sustainable growth. The plan's basic strategy is to maintain these two business models, invest the resulting profits intensively in human resources and intellectual property that will be indispensable to the future business foundation, and build the assets needed to achieve sustained growth.」