Expansion of the digital innovation field

「Revenue from system services during the interim consolidated accounting period was ¥68,217 million, and segment profit was ¥24,890 million.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥140.845 billion, up 8.0% from the previous fiscal year, and segment profit was ¥51.127 billion, up 14.3%. Revenue and profit increased as development projects, primarily for financial institutions, retailers and electric power providers, expanded steadily. The company will seek further revenue growth and improved profitability by raising productivity through the use of AI and other measures.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥65.242 billion, up 7.7% year on year, and segment profit was ¥23.367 billion, up 12.8%. Strong performance, centered on projects for financial institutions, resulted in higher revenue and profit. The company will seek further revenue growth and improved profitability by raising productivity through the use of AI and advancing its partner strategy.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥130.433 billion, up 2.7% from the previous fiscal year, and segment profit was ¥44.746 billion, up 1.4%. Although development of the large, highly profitable projects from the previous fiscal year and earlier had largely run its course, revenue and profit increased as the company secured small and medium-sized projects across a broad range of industries. In addition to continuing to pursue revenue growth, the company will seek to improve profitability by raising productivity through the use of AI and advancing its partner strategy.」

「Although development of the large, highly profitable projects that had continued through the previous fiscal year had largely run its course, digital transformation projects for customers across a wide range of industries remained firm, resulting in higher revenue. Profit declined because the number of highly profitable projects decreased from the previous year, among other factors.」

「System services revenue was ¥127.039 billion, up 9.8% from the previous fiscal year, and segment profit was ¥44.137 billion, up 11.4%. Digital transformation projects for customers across a range of industries, including financial institutions, manufacturing and services, were active, resulting in higher revenue and profit.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥92.039 billion, up 13.9% year on year, and segment profit was ¥31.714 billion, up 14.3%. Digital transformation projects for customers across a range of industries, including financial institutions, distribution and manufacturing, were active, resulting in higher revenue and profit.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥60.045 billion, up 14.5% year on year, and segment profit was ¥21.034 billion, up 15.1%. Digital transformation projects for customers across a range of industries, including financial institutions, distribution and manufacturing, were active, resulting in higher revenue and profit.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥28.086 billion, up 14.9% year on year, and segment profit was ¥9.690 billion, up 13.8%. Digital transformation projects for customers across a range of industries, including financial institutions, manufacturing and retail, were active, resulting in higher revenue and profit. Orders received also increased year on year, as demand for digital transformation-related projects remained firm. The company is promoting a new development architecture that leverages intellectual property acquired through its system services business, and aims to create future platform services and evolve into a high-value-added outsourcing services provider.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥115.726 billion, up 12.2% from the previous fiscal year, and segment profit was ¥39.603 billion, up 21.4%. Strong performance in digital transformation projects and core-system renewal projects for customers across a wide range of industries, including financial institutions and services, resulted in higher revenue and profit.」

「System services comprise contracted software development, systems engineering services, consulting and other businesses. Revenue was ¥80.806 billion, up 11.6% year on year, and segment profit was ¥27.749 billion, up 24.8%. Strong performance in digital transformation projects for customers across a wide range of industries, including services and financial institutions, resulted in higher revenue and profit.」

「System services comprise contracted software development, SE services, consulting, and other activities. Revenue was ¥24.455 billion, up 19.8% year on year, and segment profit was ¥8.514 billion, up 41.1%. Revenue and profit increased as digital transformation projects for a wide range of customers, including financial institutions, retailers, and service companies, remained firm.」

「In terms of business conditions, revenue increased from the previous fiscal year due to the expansion of digital transformation-related projects in system services, together with steady accumulation of outsourcing business, including platform services for e-commerce operators and financial institutions.」

「In terms of business conditions, some industries continued to restrain investment due to the impact of COVID-19, but digital transformation-related businesses, including efforts to strengthen customer touchpoints at financial institutions and electronic shelf label businesses in retail, remained firm.」

「Digital transformation projects, including AI demand forecasting and automated ordering services and electronic shelf labels for the retail industry, grew significantly. Revenue from priority areas increased 42.6% from the previous fiscal year to ¥68.4 billion, substantially exceeding the medium-term management plan target of ¥60.0 billion.」

「In the priority areas, digital transformation projects, including efforts to strengthen customer touchpoints in financial services, electronic shelf labels in retail, and businesses responding to the GIGA School Initiative, continued to grow in the second quarter. Revenue from these areas increased 37.2% year on year.」

「In terms of business conditions, product sales in the ICT core field were affected by restrained or postponed investment in small and medium-sized projects, but revenue from priority areas increased significantly, rising 46.9% year on year. In the second quarter, customer appetite for investment related to digital transformation remained strong, exceeding that in the first quarter, and inquiries continued to be robust. Progress in the priority areas is running ahead of the previous year’s pace against the full-year targets.」

「As an initiative toward realizing a smarter society, we launched the cloud-based business support service “AI-Order Foresight™,” which automates ordering at retail stores based on AI demand forecasts, and “RinzaTarget™,” a customer data analytics service supporting corporate marketing and promotional strategies.」

「To promote cashless payments, our subsidiary キャナルペイメントサービス株式会社 continues to work on introducing QR and barcode payments. Although inbound demand has declined, domestic payment transaction volume continues to expand, supported by various campaigns prompted by the consumption tax increase.」

「As an example of an initiative in a priority area identified in the medium-term management plan, we used the open API platform “Resonatex®” to enable direct account payments by securely linking deposit accounts at The Hyakugo Bank,Ltd. with the smartphone payment service “Origami Pay.”」

「As a new initiative in a priority area identified in the medium-term management plan, we launched an open API service for core banking systems targeting shinkin banks. Through core banking APIs, we will connect shinkin banks with Fintech services and businesses in a wide range of industries, create new financial services aligned with the needs of local consumers and companies, and work with regional financial institutions to improve convenience for consumers and revitalize local economies.」

「In the core banking systems field, we also launched a joint project with 日本マイクロソフト株式会社 toward operating Japan’s first full banking system on a public cloud.」

「First, in the digital innovation field, one of the challenge areas under the medium-term management plan, the payment-services subsidiary “キャナルペイメントサービス株式会社” expanded the scope of its “支付宝® (Alipay®)” service from some stores operated by 株式会社ベスト電器 to all of its directly operated stores. In addition, 日本ユニシス株式会社, キャナルペイメントサービス株式会社, and 株式会社bitFlyer jointly launched a business supporting the introduction of payment services that enable customers to pay in Bitcoin® for goods, food, beverages, and other services. We will continue to develop an environment in which visitors to Japan can shop more conveniently and securely toward 2020, when the government is targeting 40 million visitors from overseas.」

「First, in the digital innovation field, one of the challenge areas under the medium-term management plan, adoption of the next-generation branch systems “BANK_FIT-NE®” and “SmileBranch®” has expanded among regional financial institutions to strengthen consulting-based sales and their ability to handle inquiries, as well as dialogue and proposals with customers. We will continue to accelerate this transformation of branch operations and strengthen system sales in the UI (user interface)/UX (user experience) field for front-office operations that serve as points of contact between regional financial institutions and their customers.」

「The new company “キャナルペイメントサービス株式会社,” established to expand the Chinese payment services and charge point businesses, entered into a comprehensive merchant agreement with 株式会社ジェイティービー covering the “支付宝® (Alipay®)” business. This will expand the number of participating locations among tourism operators such as ryokans, hotels, and souvenir shops, and promote the adoption of “支付宝 (Alipay)” in tourism businesses and regional tourist destinations where implementation has not progressed significantly.」

「In March 2017, we established the new company “キャナルペイメントサービス株式会社” to pursue faster and more proactive business expansion in the Chinese payment services and charge point businesses, where further demand growth is expected, among our payment-related businesses.」

「First, in the digital innovation field, one of the challenge areas under the medium-term management plan, payment-related services are steadily growing, including the launch of domestic operations for the Chinese mobile payment service “支付宝® (Alipay®)” in addition to our established prepaid card business. We are also expanding customer-facing and market-related services for financial institutions and receiving orders steadily. In addition, we are strengthening new initiatives, including the launch of joint research and development aimed at putting robots into practical use.」

「First, in the digital innovation field, one of the challenge areas under the medium-term management plan, payment-related services centered on the prepaid card business, where we have an established track record, are steadily growing. We are also strengthening services for customer-facing operations, including the launch of sales of tablet solutions for regional financial institutions.」

「First, in the digital innovation field, one of the challenge areas under the medium-term management plan, payment-related services centered on the prepaid card business, where we have an established track record, are steadily growing. As we pursue initiatives toward promoting a cashless society, also a government growth strategy, in the rapidly expanding payment services field, we will seek further growth by responding to diverse payment methods and linking them with marketing services that use purchase data, while improving convenience for consumers in Japan and supporting use by tourists from overseas visiting Japan toward 2020. We are also strengthening new initiatives, including a demonstration project supporting customer services through collaboration between 2 different types of robots at a multi-purpose commercial facility.」

「The group is beginning to deliver results that will lead to the next stage in the 3 growth strategies of the challenge areas—digital innovation, life innovation, and business ICT platforms—and in corporate culture and human resources reform.」