Development of Market-Competitive Systems with High Quality and Low Costs

「In engineering services, including system development, contact center construction, and IT infrastructure construction, the Company considered and researched new development and construction processes using generative AI, cloud computing, and other technologies.」

「Development and construction achieved double-digit growth」

「During the interim consolidated accounting period, active efforts to shift resources to growth areas and implement pricing management produced continued results, including higher revenue and improved profitability.」

「In addition to pricing management, including winning quality business opportunities and reviewing prices offered to customers, the Company focused on standardizing development processes, using generative AI, and improving sales productivity. As a result, profit margins improved in the equipment business, development and construction business, and maintenance services, reducing the cost ratio.」

「The Company has transitioned to a single segment, Information Network Solutions Services. Accordingly, although services in the six growth areas, including security and managed services, grew in terms of orders and revenue, results fell below the previous fiscal year because of the sale of the Electronic Devices Business and a decline in the equipment business following the loss of major one-off projects. On the profit side, SG&A expenses related to the Electronic Devices Business declined, but the impact of lower revenue was substantial, and profit fell below the previous fiscal year.」

「In existing businesses, the Company thoroughly implemented pricing management measures, including stricter screening of business negotiations and a review of the unit pricing system for engineers, as well as project management. As a result, low-margin projects declined and profit margins on development and construction projects improved, reducing the cost ratio.」

「Selling, general and administrative expenses increased because of higher investment in human capital, including personnel training, and costs associated with upgrading internal systems. However, the effects of substantially higher revenue and improved cost ratios resulted in record-high profit for the nine-month consolidated cumulative period.」

「Profit exceeded the previous year as a result of higher revenue, improved cost ratios, and lower selling, general and administrative expenses.」

「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.」

「Profit margins improved across equipment, development and construction, and services as a result of efforts to improve cost ratios, but profit declined because of higher SG&A expenses, including personnel costs, and the impact of lower revenue.」

「Profit substantially exceeded the previous year, reflecting improved profit margins resulting from better cost ratios on development and construction projects and equipment implementation projects, as well as higher service revenue.」

「Profit significantly exceeded the previous year because of improved cost ratios for development and construction projects and equipment installation projects, as well as the contribution from increased service revenue.」

「Profit significantly exceeded the previous year because of improved cost ratios for development and construction projects and equipment installation projects, as well as the contribution from increased service revenue.」

「Increase in gross profit resulting from improved cost ratios on equipment implementation projects and higher engineer utilization as development and construction projects increased」

「Gross profit increased by ¥2,036 million, or 10.5%, year on year to ¥21,496 million, reflecting higher revenue as well as improvements in the cost ratio through more efficient system development and lower outsourcing costs.」

「In system integration, demand for server and PC replacements increased following the end of support for Microsoft products, while cloud-based system development remained firm. In system development, efforts to improve productivity contributed to higher earnings.」

「Against this backdrop, the Group continued to make active investments for the future, including human resource development and research and development to improve the quality of system development and operations, while providing various solution services that leverage the respective strengths of its group companies to address these needs.」

「The Company continued to invest actively in training personnel and in R&D and other future-oriented initiatives aimed at improving the quality of the underlying system development and system operations.」

「In this environment, the group continued to actively invest for the future, including in research and development aimed at improving the quality of system development, while providing a range of solution services that leverage the strengths of each company to address these needs.」

「The Company actively invested in initiatives to improve the quality of system development, as well as R&D and training for new services using IoT, AI and other technologies, where demand is expected to increase.」

「To identify those needs, the Group implemented measures to improve the quality of system development and actively invested in R&D and other initiatives for the future.」

「We will continue to pursue these activities actively and develop high-quality, low-cost systems with market competitiveness.」