Cloud Services Business Growth and Medium-Term Revenue of ¥1.4 Billion

「Payments　12,755　14,285　112.0%　Of which, cloud services　3,479　4,293　123.4%」

「Payments 6,166 6,970 113.0% Of which, cloud services 1,527 2,035 133.2% Sales increased in the payments field as the FEP segment grew due to hardware sales and other factors related to existing customers' FEP system renewals, while the fraud detection segment, centered on cloud services, also grew as losses from credit card fraud increased.」

「Cloud services in the payments field generated sales of ¥1,527 million, up 29.4% year on year, and gross profit of ¥107 million, down 40.3%. Profit turned positive from the second quarter onward due to higher sales and other factors, but the impact of higher infrastructure costs due to delays in migrating the infrastructure platform continued. Cloud services are primarily contracted under multiyear agreements, and the order backlog was ¥11,449 million as of 31 December 2024, up 61.3% year on year.」

「For the cloud services business, which the medium-term business plan targets for expansion, revenue was ¥1,799 million, up 33.2% year on year, and gross profit was ¥274 million, or 3.9 times the prior-year level. Revenue increased substantially as the number of IFINDS users grew. Profit increased year on year partly because the proportion of services with high gross margins rose. Cloud services are mainly provided under multi-year contracts, and the order backlog reached ¥7,371 million as of the end of March. The company plans revenue of ¥2,500 million for the fiscal year ending June 2024 and is progressing steadily toward that target.」

「Cloud services, targeted for expansion under the medium-term business plan, generated sales of ¥1,180 million, up 33.9% year on year, and gross profit of ¥180 million, 7.2 times the year-earlier level. Profit increased year on year due to changes in the service mix and stabilization of the operating structure. Cloud services are primarily contracted under multiyear agreements, and the order backlog was ¥7,098 million as of the end of December. Sales of ¥2,500 million are planned for the fiscal year ending June 2024, with steady progress toward the target.」

「For the cloud services business, which the medium-term business plan targets for expansion, revenue was ¥592 million, up 36.4% year on year, and gross profit was ¥96 million, compared with a gross loss of ¥4 million in the same period of the previous fiscal year. Cloud services are mainly provided under multi-year contracts, and the order backlog stood at ¥6,717 million as of the end of September. The company plans revenue of ¥2,500 million for the fiscal year ending June 2024 and is progressing steadily toward that target.」

「Cloud services sales were ¥1,867 million, up 59.2% year on year. The business also received multiple large orders, bringing order intake to ¥4,421 million, up 27.7%, and the order backlog to ¥6,695 million, up 61.6%. Our cloud services have become a strong option not only for credit card companies but also for operating companies newly launching card or payment businesses, and these orders made a significant contribution to sales in the current fiscal year. Sales are planned at ¥2,500 million for the fiscal year ending June 2024 and at least ¥3,000 million for the fiscal year ending June 2025.」

「Revenue from cloud services totaled ¥1,351 million, up 70.4% year on year, while gross profit was ¥69 million, down 27.4% year on year. Revenue grew substantially, but profit fell below the same period of the previous year because costs to strengthen the operating structure increased at certain services as the number of users expanded. The Company is currently fundamentally reviewing its operating structure and working to improve profitability at an early stage.」

「Cloud services generated sales of ¥881 million, up 78.7% year on year, and gross profit of ¥25 million, up 108.3%. Sales continued to grow as orders increased substantially in the previous fiscal year. Profit increased year on year, but fell short of the initial forecast because costs to strengthen the operating structure rose in some services as the number of users expanded. Going forward, we will fundamentally review the operating structure and work to improve profitability at an early stage.」

「Revenue from cloud services totaled ¥434 million, up 78.7% year on year, while gross profit was a loss of ¥4 million, compared with a loss of ¥19 million in the same period of the previous year. Revenue grew following a substantial increase in orders in the previous period, but profit temporarily deteriorated because the Company strengthened its infrastructure and operating structure to accommodate the expansion in the number of users. Profit is expected to improve from the second quarter onward.」

「The cloud services business made steady progress against the initial plan, with sales of ¥1,173 million, up 24.5% year on year. It also received multiple large orders, bringing order intake to ¥3,461 million, up 350.7%, and the order backlog to ¥4,141 million, up 123.5%. These orders are scheduled to contribute to sales from the fiscal year ending June 2023 onward. Sales are planned at ¥2,000 million for the fiscal year ending June 2023 and ¥2,500 million for the fiscal year ending June 2024.」

「Orders totaled ¥1,000 million in the first quarter, ¥1,876 million in the second quarter and ¥273 million for new customers in the third quarter. Order intake increased substantially in the first and second quarters as multiple large projects were received. As a result, cumulative order intake for the first three quarters totaled ¥3,150 million, and the order backlog was ¥4,210 million. These orders are scheduled to contribute to sales from the fiscal year ending June 2023 onward. Sales are planned at ¥2,000 million for the fiscal year ending June 2023 and ¥2,500 million for the fiscal year ending June 2024.」

「The ¥1,000 million in new orders recorded in the first quarter was followed by an additional ¥1,870 million in new orders in the second quarter. The cloud services business's order backlog increased substantially from ¥1,850 million at the end of the previous fiscal year to ¥4,230 million at the end of the quarter. Additional new orders are also expected in the second half of the fiscal year. These orders are scheduled to contribute to sales from the fiscal year ending June 2023 onward. Sales are planned at ¥2,000 million for the fiscal year ending June 2023 and ¥2,500 million for the fiscal year ending June 2024.」

「Against a backdrop of active discussions with new customers, orders are increasing. In the first quarter, we received ¥1,000 million in new orders, and the cloud services business's order backlog grew from ¥1,850 million at the end of the previous fiscal year to ¥2,610 million at the end of the quarter. We also expect to receive additional new orders in the second quarter. These orders are scheduled to contribute to sales from the next fiscal year, the fiscal year ending June 2023. Sales for the next fiscal year are expected to reach ¥2,000 million, representing substantial growth.」

「Sales in this business are planned at ¥2,000 million for the fiscal year ending June 2023 and ¥2,500 million for the fiscal year ending June 2024, and are expected to drive medium-term profit growth.」

「The cloud services business is also exceeding the previous fiscal year's results in line with the initial plan. Cloud services 609 702 Recurring revenue」

「Cloud services 178 224 Recurring revenue」

「In the fiscal year ending June 2021, sales activities were conducted with the aim of receiving orders from multiple new customers, including regional banks and companies newly entering the card business. Under the new plan, sales are projected at ¥1,300 million for the fiscal year ending June 2022 and ¥1,600 million for the fiscal year ending June 2023.」

「The launch of services for new customers by IOASIS, which handles acquiring operations, and IFINDS, which handles credit card fraud detection, contributed to sales growth.」

「The cloud services business increased revenue as initially planned, resulting in improved earnings.」

「As before, the cloud services business remains an important initiative driving our growth, and we are targeting sales of ¥1,400 million over the medium term.」