Enhancing Earnings Across Six Business Units

「Against the backdrop of strong demand for digital transformation among companies and other organizations, all sectors generally performed well, particularly the Network Systems and Platform business units. In addition, the Company won a large-scale public-sector equipment renewal project, and some projects were brought forward. As a result, revenue reached a record high of ¥22,148 million, up 22.6% from the previous fiscal year. Although selling, general and administrative expenses increased, the increase in revenue and an improved gross profit margin resulting from the acquisition of new customers through expanded sales of AI products lifted segment profit to a record high of ¥3,384 million, up 56.6% from the previous fiscal year.」

「During the 6-month interim consolidated period, the business generally remained firm, particularly the information and communications network business for corporate customers. As a result, revenue was ¥7,231 million, up 9.2% year on year, and segment profit was ¥598 million, up 6.9% year on year.」

「From the end of the consolidated fiscal year, the breakdown of revenue from contracts with customers for the Solutions Business has been changed from Network, Public, Application Systems, Embedded Systems, and Video Systems to Network Systems BU, Fire and Disaster Prevention BU, Platform BU, Application Systems BU, and Video Systems BU.」

「During the 9-month period ended 31 December, the business generally remained on a recovery trend, particularly the information and communications network business for corporate customers, helped by the rebound from the same period of the previous year, when the business faced severe procurement difficulties for servers, communications equipment, and other products due to tight semiconductor and other supply and demand, as well as strong corporate demand for digital transformation. As a result, revenue was ¥10,038 million, up 27.7% year on year, and segment profit was ¥780 million, up 150.6% year on year.」

「During the 6-month period ended 30 September, the business generally remained on a recovery trend, particularly the information and communications network business for corporate customers, compared with the same period of the previous year, when the business faced severe procurement difficulties for servers, communications equipment, and other products due to tight semiconductor and other supply and demand. As a result, revenue was ¥6,619 million, up 26.3% year on year, and segment profit was ¥559 million, up 103.2% year on year.」

「During the 3-month period ended 30 June, the business generally remained on a recovery trend, particularly the information and communications network business for corporate customers, compared with the same period of the previous year, when the business faced severe procurement difficulties for servers, communications equipment, and other products due to tight semiconductor and other supply and demand. As a result, revenue was ¥2,727 million, up 29.2% year on year, and segment profit was ¥16 million, compared with a segment loss of ¥39 million in the same period of the previous year.」

「During the 9-month period ended 31 December, sales in the public sector declined following the recording of a large fire and disaster prevention project in the same period of the previous year. Other sectors also remained generally sluggish due to supply constraints affecting products as a result of tight supply and demand for semiconductors and other products. As a result, revenue was ¥7,861 million, down 0.02% year on year. In terms of earnings, higher selling, general and administrative expenses resulted in segment profit of ¥311 million, down 22.6% year on year.」

「During the 6-month period ended 30 September, the embedded systems and video systems sectors performed well, while sales in other sectors generally remained sluggish due to delivery delays and other issues caused by tight supply and demand for semiconductors and other products, which had continued from the previous consolidated fiscal year. As a result, revenue was ¥5,242 million, up 0.9% year on year. In terms of earnings, higher selling, general and administrative expenses resulted in segment profit of ¥275 million, down 10.2% year on year.」

「During the 3-month period ended 30 June, sales generally declined due to the impact of product delivery delays caused by tight semiconductor supply and demand, which had continued from the previous consolidated fiscal year. As a result, revenue was ¥2,110 million, down 2.8% year on year. In terms of earnings, higher selling, general and administrative expenses due to increased staffing resulted in a segment loss of ¥39 million, compared with a segment loss of ¥36 million in the same period of the previous year.」

「During the 9-month period ended 31 December, sales generally remained sluggish, as procurement of some products stalled against the backdrop of tight semiconductor supply and demand. As a result, revenue was ¥7,863 million, down 8.1% year on year. In terms of earnings, higher selling, general and administrative expenses from increased staffing also weighed on results, leaving segment profit down 40.3% year on year at ¥402 million.」

「During the 6-month period ended 30 September, sales generally remained sluggish, as procurement of some products stalled against the backdrop of tight semiconductor supply and demand from the second quarter onward. As a result, revenue was ¥5,196 million, down 11.9% year on year. In terms of earnings, although the gross profit margin improved, this was insufficient to offset the decline in revenue, while higher selling, general and administrative expenses from increased staffing also weighed on results, leaving segment profit down 43.6% year on year at ¥306 million.」

「During the 3-month period ended 30 June, the rebound from the previous year, when the impact of the COVID-19 outbreak was limited unlike in the Device Business, was limited, while sales generally declined. As a result, revenue was ¥2,170 million, down 9.3% year on year. In terms of earnings, the decline in gross profit due to lower revenue and changes in the sales mix, together with higher selling, general and administrative expenses from increased staffing, resulted in a segment loss of ¥36 million, compared with segment profit of ¥82 million in the same period of the previous year.」

「During the 9-month period ended 31 December, although the impact of the COVID-19 outbreak was limited compared with the Device Business, sales declined year on year in nearly all sectors except application software. As a result, revenue was ¥8,554 million, down 9.9% year on year. In terms of earnings, although the gross profit margin improved, this was insufficient to offset the decline in revenue, and segment profit fell 3.6% year on year to ¥674 million.」

「Although the impact of the COVID-19 outbreak was limited compared with the Device Business, sales declined year on year in nearly all sectors except application software. As a result, revenue was ¥5,900 million, down 15.3% year on year.」

「Although the impact of the COVID-19 outbreak was limited compared with the Device Business, sales declined across all business units from the generally strong performance in the same period of the previous year. As a result, revenue was ¥2,393 million, down 23.5% year on year. In terms of earnings, although the gross profit margin improved, this was insufficient to offset the decline in revenue, and segment profit fell 48.0% year on year to ¥82 million.」

「In terms of earnings, the improvement in the gross profit margin resulted in segment profit of ¥1,443 million, up 13.5% from the previous fiscal year.」

「During the 9-month period ended 31 December, sales in the public sector, which had included large projects in the same period of the previous year, turned downward. However, sales in other sectors generally remained strong, resulting in revenue of ¥9,495 million, down 0.2% year on year. In terms of earnings, the improvement in the gross profit margin lifted segment profit 44.3% year on year to ¥699 million.」

「During the 6-month period ended 30 September, sales in the public sector, which had included large projects in the same period of the previous year, turned downward. However, sales in other sectors generally remained strong, resulting in revenue of ¥6,961 million, up 3.8% year on year. In terms of earnings, the increase in revenue and improvement in the gross profit margin lifted segment profit 124.3% year on year to ¥629 million.」

「During the 3-month period ended 30 June, although the embedded business declined from the same period of the previous year, other businesses generally remained firm. As a result, revenue was ¥3,130 million, up 35.2% year on year, and segment profit was ¥158 million, compared with a segment loss of ¥84 million in the same period of the previous year.」

「During the 9-month period ended 31 December, sales to the public and video sectors remained strong compared with the same period of the previous year, resulting in revenue of ¥9,517 million, up 22.2% year on year. In terms of earnings, despite higher selling, general and administrative expenses due to increased staffing, segment profit rose 70.8% year on year to ¥484 million, owing in part to the delivery of large projects with high profit margins.」

「In the Solutions Business, to establish an earnings base for the Data Center Business, we worked to expand the cloud service lineup and create synergies among business units by promoting cross-selling.」

「In the Solutions Business, we worked to expand the cloud service lineup to establish an earnings base for the Data Center Business, while also working to create synergies among business units by promoting cross-selling.」

「The Solutions Business is organized into 7 business units, including the Technology Business Unit, based on the industries of its customers and the products it handles. The V70 Medium-Term Management Plan identifies as a key initiative expanding the range of solutions proposed to customers by leveraging the strengths of each business unit and increasing synergies.」

「In the Solutions Business, in addition to focusing on expanding sales of existing businesses, we worked to establish an earnings base for medium- to long-term growth by expanding the range of cloud services and creating synergies among business units.」

「In the Solutions Business, in addition to working to close sales opportunities, we worked to establish an earnings base for medium- to long-term growth by expanding the range of cloud services and creating synergies among business units.」

「In the Solutions Business, in addition to working to close identified sales opportunities, we worked to establish an earnings base for medium- to long-term growth by expanding the range of cloud services and creating synergies among business units through the sharing of customer assets.」

「The Solutions Business is organized into 6 business units based on the industries of its customers and the products it handles: Information and Communications Networks, Government, Fire and Disaster Prevention, Embedded Systems, Application Software, and Video. We will continue to reinforce staffing across these 6 business units, work to expand stock-based businesses such as maintenance and operational support, and deepen sales to customers across business units through cross-selling. By establishing strong earnings bases in each unit, we will enhance our ability to respond to changes in the business environment.」