Review of the Sales Structure and Restructuring of the Business Portfolio

「Under this plan, we position the three-year period as a growth phase for our proprietary SaaS services and have established the following basic policies: ① Grow D-Drive into a core business through the early expansion of interlock system sales ② Achieve stable growth for Work Mate in line with social needs ③ Create a third business pillar by leveraging data accumulated through our proprietary services」

「By the end of the consolidated fiscal year, the company had steadily transformed its business portfolio from one centered on contract manufacturing of conventional hardware products to one centered on its proprietary SaaS services.」

「Against this backdrop, our group and its consolidated subsidiaries are pursuing the four-year medium-term management plan, “Ubiteq 4.0,” beginning with the fiscal year ending June 2022. In addition to our existing IoT technology, the plan seeks to transition to a new business model centered on AI and data utilization as core technological pillars. We are concentrating management resources on the three businesses of Work Mate, D-Drive and the car-sharing-related business, and focusing on developing, releasing and refining each service.」

「Our group and Ubiteq Solutions formulated a four-year medium-term management plan, “Ubiteq 4.0,” beginning with the fiscal year ending June 2022, and redefined our corporate philosophy. By transitioning to a new business model that adds AI and data utilization to our existing IoT technology as future core technological pillars, we aim to resolve the significant event at an early stage.」

「Under this medium-term management plan, we are seeking to transition to a new business model built not only on our existing IoT technologies but also on AI and data utilization as core technological pillars. We are concentrating management resources in the 3 businesses, “Work Mate,” “D-Drive” and the car-sharing-related business, and focusing on the development, launch and enhancement of each service.」

「Our group recognizes the need to move away from legacy device products on which it has historically been highly dependent and establish a new management base capable of creating sustainable value in response to customer needs and social change.」

「Against this backdrop, our group formulated the four-year medium-term management plan “Ubitec 4.0,” with the current consolidated fiscal year as its first year.」

「① Maximize synergies with the Orix Group and rebuild the business portfolio」

「Orders for Work Mate and D-COLLECT have been steadily increasing, partly as a result of active public-relations and promotional activities.」

「Under the new management structure, and taking into account changes in the market environment resulting from the spread of COVID-19, we identified the accelerated expansion of sales of new services as our highest priority and undertook a fundamental review of our business portfolio and future business development.」

「We are undertaking a fundamental review of the optimization of our business portfolio and future business development.」

「In addition to reviewing the organizational structure of the sales and development divisions and increasing sales staff, with a view to recovering revenue, which had been trending downward, we worked to strengthen sales capabilities while also enhancing sales cooperation with the Orix Group.」

「In addition, with a view to recovering revenue, which had been trending downward, we reviewed the organizational structure of the sales and development divisions in August 2018.」

「In addition, as in the previous consolidated fiscal year, we tightened cost management, improved operating efficiency and reduced costs in an effort to improve our earnings structure.」

「In addition, as in the previous consolidated fiscal year, we tightened cost management, improved operating efficiency and reduced costs in an effort to improve our earnings structure.」

「In addition, as in the previous consolidated fiscal year, we tightened cost management, improved operating efficiency and reduced costs in an effort to improve our earnings structure.」

「In addition, as in the previous consolidated fiscal year, we tightened cost management, improved operating efficiency and reduced costs in an effort to improve our earnings structure.」

「In terms of results, the impact of lower orders for telematics in-vehicle devices and our core banknote authentication sensor modules continued. However, profit benefited from fixed-cost reductions resulting from the voluntary retirement program and office consolidation carried out in connection with the withdrawal from unprofitable businesses in the previous consolidated fiscal year, resulting in lower revenue and higher profit year on year.」

「Profit benefited from fixed-cost reductions resulting from the voluntary retirement program and office consolidation carried out in the previous consolidated fiscal year, resulting in lower revenue and higher profit year on year. As a result, operating profit for the six months ended in the second quarter of the current consolidated fiscal year was ¥81 million, compared with an operating loss of ¥9 million in the same period of the previous year.」

「Following a review of our management-control categories based on the medium-term management plan formulated in February 2016, we changed the reportable segments disclosed in the two categories of Electronic Equipment and Mobile and Ubiquitous businesses to three categories, IoT, Contract Manufacturing and Contract Development, from the first quarter of the current consolidated fiscal year.」

「To improve our earnings structure and establish a stable management base, our group is pursuing fundamental management reforms, including a review of the sales structure and a restructuring of the business portfolio, and is recording the costs arising from these measures as costs associated with business structure improvements.」