Transforming the business structure through servitization

「Services: Revenue grew to ¥21,411 million, up 1.5% year on year, as the contracted value of recurring businesses, including cloud service usage fees, increased.」

「The company identified 6 growth areas with high margins and expected market growth, strengthened marketing and launched new services targeting the OT security field to expand those areas. As a result, sales in the growth areas were ¥12,300 million, up 3% from the previous fiscal year.」

「The performance of the 6 growth areas targeted under the medium-term management plan remained solid, led by security and managed services. However, maintenance fees for equipment fell below the previous fiscal year's level as equipment business sales declined. As a result, orders received were ¥22,175 million, up 1.8% year on year, and sales were ¥21,102 million, down 0.5% year on year.」

「As a result, sales in growth areas increased to 136% of the previous fiscal year's level during the fiscal year, contributing to higher business profitability.」

「Sales were ¥31,156 million, up 1.3% year on year, as cloud services overall and operations services remained solid. Orders received were ¥31,931 million, down 2.0% year on year.」

「Sales increased as cloud services, including TCV, grew and the company won maintenance service contracts accompanying increases in equipment such as personal computers and network equipment, as well as applications. As a result, orders received were ¥21,792 million, down 2.7% year on year, and sales were ¥21,201 million, up 7.0% year on year.」

「Profit increased and the business turned profitable during the first quarter as a result of the substantial effect of higher revenue, improved cost ratios across equipment, development and construction, and services through steady execution of the medium-term management plan, and reductions in selling, general and administrative expenses, including personnel costs.」

「Some declines were seen as the company shifted to service models, including LCM services and cloud services.」

「Services: Although cloud services, led by cloud-based contact center services, grew significantly from the previous fiscal year, the expiration of large-scale LCM services for some customers had an impact. Orders received were ¥12,108 million, down 0.1% year on year, and sales were ¥9,734 million, down 1.5% year on year, essentially unchanged from the previous fiscal year.」

「In the information network solutions services business, the company announced a new service framework, "Total SolutionService Framework (TSF)," to enable customers to achieve digital transformation rapidly, and released services including "DagreeX (a service for centralized management of electronic contracts and supporting documents)," "TCloud for Voice (a service that moves telephone exchange equipment (PBX) to the cloud)" and "CT-e1/SaaS (a cloud-based contact center service)."」

「The company announced a new service framework, Total SolutionService Framework (TSF), to enable customers to achieve DX rapidly, and released 3 new services under the framework, including DagreeX, a centralised management service for electronic contracts and supporting documents.」

「In addition to growth in LCM and cloud services, the inclusion of 株式会社コムデザイン in the scope of consolidation contributed to orders of ¥12,119 million, up 18.2% year on year, and sales of ¥9,879 million, up 17.1%, both substantially above the previous year.」

「In addition to growth in LCM and cloud services, the inclusion of 株式会社コムデザイン in the scope of consolidation contributed to orders of ¥12,119 million, up 18.2% year on year, and sales of ¥9,879 million, up 17.1%, both substantially above the previous year.」

「As part of the priority initiative of the medium-term management plan, "Transforming the business structure through servitization," 株式会社コムデザイン, which became a subsidiary on 30 September 2020, contributed to results from the third-quarter consolidated accounting period.」

「As part of the priority initiative of the medium-term management plan, "Transforming the business structure through servitization," 株式会社コムデザイン, which became a subsidiary on 30 September 2020, contributed to results from the current third-quarter consolidated accounting period.」

「As a key measure of the medium-term management plan, namely transforming the business structure through the shift to services, the company made 株式会社コムデザイン a subsidiary on 30 September 2020. It will seek to enhance the group's presence in the contact centre market and develop new markets through AI-enabled services.」

「① Transforming the business structure through servitization: In the information network solutions services business, the company aims to strengthen profitability by expanding business through modernization, which upgrades customers' existing assets with the latest technologies, and by strengthening its software business. In the electronic devices business, it aims to transform its business structure by shifting into areas expected to grow, including HMI, memory storage and embedded products.」