Strategic investment focused on priority areas and advanced technologies

「Under the management policy (2024-2026), investment is positioned as a key initiative, and the company is making strategic investments, including M&A in Japan and overseas, primarily in its priority areas, with the aim of utilizing advanced technologies and continuing to create innovation.」

「During the interim consolidated accounting period, the company established BIPROGY and Translink Sustainability & Innovation Fund, L.P. and newly made it a consolidated subsidiary.」

「Under the management policy (2024-2026), investment is positioned as a key initiative, and the company plans to accelerate strategic investment with the aim of utilizing advanced technologies, continuing to create innovation, and expanding its priority areas.」

「Under the management policy (2021-2023), investment was positioned as a key initiative, and cumulative investment over the 3 years through the fiscal year ended March 2024 totaled ¥60.1 billion. Investment is also positioned as a key initiative under the management policy (2024-2026), and the company plans to accelerate strategic investment, targeting the use of advanced technologies, the continued creation of innovation, and M&A in Japan and overseas, primarily in its priority areas.」

「Funds used in investing activities totaled ¥12.770 billion, mainly comprising ¥1.913 billion for the acquisition of property, plant and equipment such as computers used in operations, ¥9.234 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥2.440 billion for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. This represented an increase of ¥4.432 billion in cash outflows year on year.」

「Funds used in investing activities totaled ¥9.154 billion, mainly comprising ¥1.203 billion for the acquisition of property, plant and equipment such as computers used in operations, ¥6.367 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥1.547 billion for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. This represented an increase of ¥3.560 billion in cash outflows year on year.」

「Funds used in investing activities totaled ¥4.290 billion, mainly comprising ¥384 million for the acquisition of property, plant and equipment such as computers used in operations, ¥2.560 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥809 million for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. This represented an increase of ¥906 million in cash outflows year on year.」

「Funds used in investing activities totaled ¥10.957 billion, mainly comprising ¥1.624 billion for the acquisition of property, plant and equipment such as computers used in operations, ¥7.441 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥3.866 billion for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. Under the management policy (2021-2023), investment is positioned as a key initiative, and the company plans to accelerate strategic investment.」

「Funds used in investing activities totaled ¥8.338 billion, mainly comprising ¥1.242 billion for the acquisition of property, plant and equipment such as computers used in operations, ¥5.708 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥1.929 billion for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. This represented an increase of ¥1.465 billion in cash outflows year on year.」

「As part of its strategic investment, the company participated through Japan Energy Capital合同会社, in which ENECHANGE株式会社 is involved in management, in the Decarbonization Tech Fund, which specializes in investments in overseas energy venture companies.」

「Funds used in investing activities totaled ¥3.383 billion, mainly comprising ¥595 million for the acquisition of property, plant and equipment such as computers used in operations, ¥1.859 billion for the acquisition of intangible assets, primarily investments in software for outsourcing, and ¥828 million for the acquisition of investment securities, mainly fund investments and investments related to the management of the CVC fund operated by a subsidiary. This represented an increase of ¥1.339 billion in cash outflows year on year.」

「The medium-term management plan, Foresight in sight®2020 (fiscal years 2018-2020), identified investment strategy as one of its key initiatives and projected investment of approximately ¥60.0 billion over the 3 years through the fiscal year ended March 2021. Actual cumulative investment over the 3 years was ¥53.7 billion. Investment fell short of the projection in part because strategic investment declined in the fiscal year ended March 2021 due to the impact of the spread of COVID-19. Investment strategy is also positioned as a key initiative under the management policy (2021-2023), and the company plans to accelerate strategic investment while pursuing the continued creation of innovation through the use of advanced technologies.」

「Property, plant and equipment and intangible assets increased by ¥909 million from the end of the previous consolidated fiscal year to ¥8.2588 billion. This was due mainly to depreciation of ¥800.5 million, capital investment of ¥715.1 million, focused on outsourcing services related to the priority areas and ICT core areas, and a ¥2.957 billion increase in investment securities resulting from strategic investments in startups, funds, and other vehicles to strengthen and expand the priority areas.」

「Regarding investment securities, the company continued making strategic investments in startups and funds to strengthen and expand its priority areas, and investment securities increased by ¥1.867 billion from the end of the previous consolidated fiscal year due in part to increases in the share prices of listed shares held.」

「During the first quarter of the fiscal year, the company newly established CVCF2 投資事業有限責任組合 (a specified subsidiary) and included it in the scope of consolidation.」

「Investment results Fiscal year ended March 2019 (¥100 million)　Fiscal year ended March 2020 (¥100 million) Strategic investment　30　42 R&D investment　40　45 Capital investment　82　103 Total　151　190」

「In November 2019, the company entered into a capital and business alliance with 株式会社ALBERT, which has strengths in AI algorithm development and big-data analytics. Going forward, starting with infrastructure areas such as distribution, transportation, and energy, the company will advance joint proposals for new businesses and product development using AI and analytics technologies for existing and prospective customers of the 日本ユニシス Group.」

「Regarding investment securities, the company made strategic investments in startups and funds to strengthen and expand its priority areas, and investment securities increased by ¥1.116 billion from the end of the previous consolidated fiscal year due in part to increases in the share prices of listed shares held. The partial sale of shares following a review of the rationale for holding them also continued during the fiscal year.」

「Regarding investment securities, the company made strategic investments in startups and funds to strengthen and expand its priority areas. However, investment securities decreased by ¥154 million from the end of the previous consolidated fiscal year due to the partial sale of shares following a review of the rationale for holding them, as well as declines in the share prices of listed shares held.」

「In terms of investment, the company has invested in funds to acquire seeds and monitor trends in its priority areas, and has advanced the management of a CVC fund through its subsidiary Canal Ventures株式会社. As a result, the planning of new businesses and research and development have increasingly been promoted.」

「In terms of investment, the company also invested in a fund operated by Scrum Ventures L.L.C., a venture capital firm that invests primarily in early-stage Silicon Valley companies, in anticipation of the smart society era, when homes, cars, stores, and entire cities will be connected to the internet.」

「As part of its investment strategy, the company invested in Kakaxi,Inc (hereinafter, Kakaxi) to explore business opportunities in new business areas.」

「To accelerate the creation of new businesses through open innovation, the company will make the strategic investments necessary for growth, focusing on priority areas and advanced technologies. It will also continue and advance its investment in service development, including platforms.」