Revitalizing Existing Businesses and Entering New Business Areas

「To rebuild its business portfolio, the company identified businesses expected to grow and expand, clarified its policy for portfolio transformation under the new medium-term management plan beginning in April 2026 (1 April 2026 to 31 March 2029), and established systems including a rotation program to facilitate the smooth transfer of personnel and resources between businesses, as well as enhanced basic skills training common to all businesses.」

「Business strategy: Portfolio transformation」

「Starting with the Digital Infrastructure Business Division established in October 2022, we will pursue a dramatic expansion of the digital infrastructure business while steadily expanding the information security business.」

「All revenue categories declined due to a decrease in ERP solution projects, the absence of the invoice projects and large-scale equipment renewal projects recorded in the previous year, and the end of outsourcing operations. As a result, revenue decreased by ¥862 million, or 18.3%, year on year to ¥3,842 million, and segment profit decreased by ¥250 million, or 27.4%, to ¥663 million.」

「Although systems integration declined due to a decrease in ERP solutions and other factors, systems operations and management increased as outsourcing-related projects remained firm. Sales of systems equipment also increased, resulting in revenue of ¥7,104 million, up ¥69 million, or 1.0%, year on year.」

「For transactions with the SMBC Group, systems operations and management declined due to a decrease in BPO workload, among other factors, while systems integration increased on large-scale projects and other factors. As a result, revenue increased by ¥76 million, or 2.3%, year on year to ¥3,447 million.」

「System operations and maintenance declined mainly following the completion of BPO services for the SMBC Group, while system integration also declined because several large-scale system development projects for customers other than the SMBC Group that existed in the same quarter of the previous year were completed. As a result, revenue decreased by ¥405 million, or 7.8%, year on year to ¥4,816 million. In addition to an increase in system development projects for public-sector entities, system operations and maintenance also increased, mainly because BPO services for hospitals increased. As a result, revenue increased by ¥14 million, or 0.3%, year on year to ¥4,432 million.」

「System operations and maintenance also declined, mainly following the completion of BPO services for the SMBC Group. As a result, revenue decreased by ¥362 million, or 10.2%, year on year to ¥3,206 million.」

「Systems operations and management declined, mainly because some BPO projects for the SMBC Group ended. As a result, revenue decreased by ¥212 million, or 11.7%, year on year to ¥1,606 million.」

「Although system equipment sales declined following the large-scale projects in the previous year, system integration projects related to ERP solutions increased, and system operations and maintenance increased as operations began for a large-scale BPO project. As a result, revenue was ¥8,060 million, compared with ¥7,692 million in the same quarter of the previous year.」

「Systems integration projects through major vendors and projects involving ERP solutions increased, while systems operations and management also rose following the launch of operations for a large-scale BPO project. As a result, revenue was ¥5,207 million, compared with ¥4,960 million in the same quarter of the previous year.」

「In the public sector, systems operations and management increased due to growth in cloud projects for local governments and other factors. In the industrial sector, systems operations and management also remained firm as cloud and BPO projects increased.」

「Although system integration declined following the large-scale project in the same quarter of the previous year, projects through major vendors and ERP solution projects remained firm. In addition, system operations and maintenance increased as cloud and BPO projects grew, and system equipment sales increased following the acquisition of large-scale projects. As a result, revenue increased by ¥21 million, or 0.3%, year on year to ¥7,692 million.」

「In the fiscal year ending March 2020, we reassessed the profitability and growth potential of each business and formulated plans to scale back or withdraw from certain operations that had become unprofitable or insufficiently profitable, and will steadily implement these plans. We will also pursue entry into new business areas and strengthen highly profitable operations.」

「Systems integration increased substantially in the public and industrial sectors. Systems equipment sales in the industrial sector also rose significantly, while systems operations and management increased as cloud and BPO projects grew in the public and industrial sectors. As a result, revenue increased substantially by ¥1,999 million, or 14.2%, year on year to ¥16,102 million.」

「System integration increased in the financial-, public-sector- and industrial-related segments. In addition, a substantial increase in system equipment sales in the industrial-related segment and higher system operations and maintenance resulting from growth in cloud and BPO projects in the public-sector- and industrial-related segments contributed to revenue growth of ¥1,467 million, or 15.3%, year on year to ¥11,058 million.」

「Systems operations and management also increased as we won a large-scale systems equipment sales project in the public sector and as cloud and BPO projects increased in the industrial sector.」

「We will also strengthen our efforts in new technologies such as AI (artificial intelligence) and IoT (*1), as well as cloud computing, whose adoption and expansion are expected to accelerate further.」

「To oversee these strategically promoted businesses, we established the Strategic Business Division in April 2017 and transferred three divisions covering healthcare, consulting and IT infrastructure services into it.」

「To sustain growth, the Group is revitalizing and improving the operating efficiency of existing businesses and entering new business areas. It has selected healthcare and education-related businesses centered on payment collection as priority businesses and is promoting them.」