Expansion of the Regional Information Cloud and Growth in Recurring Revenue

「The group's reportable segments in the previous consolidated fiscal year were “Digital Government,” “Mobility Services” and “Smart Venue.” Following the transfer of a portion of the digital government business effective 30 June 2025, the “Digital Government” segment was discontinued at the end of the previous consolidated fiscal year.」

「In the digital government segment, the company had provided “GabuCloud” as a CLOUD SUITE for local governments to promote the practical implementation of transparency, participation and collaboration in open government. However, as described above, effective 30 June 2025, the company transferred part of its digital government business, excluding the lab development business operated by its consolidated subsidiary 株式会社ノースディテール.」

「During the interim consolidated accounting period, the digital government segment focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures. As a result, segment revenue was ¥809.914 million, up 5.3% year on year, and segment profit was ¥76.524 million, up 10.9% year on year.」

「As of the end of the consolidated fiscal year, the number of stock service contracts in “GabuCloud,” meaning service contracts with local governments and public institutions, was 1,240, an increase to 112.7% of the previous consolidated fiscal year-end level.」

「Amid the broader trend toward the digitization of public administration, the company jointly developed “Rakuriza,” a public facility reservation system for local governments that accelerates administrative DX, with its alliance partner ウイングアーク1st株式会社, and launched the service in April 2024.」

「During the cumulative second-quarter consolidated period, the digital government segment focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures.」

「As of the end of the consolidated fiscal year, the number of stock service contracts in “GabuCloud,” meaning service contracts with local governments and public institutions, was 1,100, an increase to 117.1% of the previous consolidated fiscal year-end level.」

「As a result, segment revenue was ¥1,575.748 million, up 13.4% year on year, and segment profit was ¥407.274 million, up 38.9% year on year.」

「During the cumulative second-quarter consolidated period, the digital government business focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures. Sales of tendered projects for which local governments and public institutions were the delivery destinations remained strong as the government advanced its initiatives to digitize public administration. As a result, segment revenue was ¥858.102 million, up 13.2% year on year, and segment profit was ¥134.213 million, up 69.3% year on year.」

「“GabuCloud” consists of three platforms: “SMART L-Gov,” a cloud solution for local governments to disseminate information and promote transparency in open government toward realizing the digitization of public administration leading to the “new public”; “GaaS,” which connects residents and local governments online to encourage participation and collaboration; and “Open-gov Platform,” a data-use infrastructure, or urban OS, for smart areas operated by local governments. Through “GabuCloud,” the company promotes sustainable and democratic community development.」

「During the cumulative third-quarter consolidated period, the company focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures. Sales of tendered projects for which local governments and public institutions were the delivery destinations remained strong as the government advanced its initiatives to digitize public administration. As a result, segment revenue was ¥1,701.231 million, up 34.5% year on year, and segment profit was ¥207.534 million, up 19.5% year on year.」

「During the cumulative second-quarter consolidated period, the company focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures. Sales of tendered projects for which local governments and public institutions were the delivery destinations remained strong as the government advanced its initiatives to digitize public administration. However, following the recognition of amortization of goodwill related to 株式会社ストークス, which became a consolidated subsidiary in April 2021, segment revenue was ¥874.177 million, up 48.9% year on year, and segment loss was ¥65.074 million, compared with a loss of ¥63.875 million in the same period of the previous year.」

「During the cumulative first-quarter consolidated period, the digital government business focused on winning new projects and expanding business with existing customers, while pursuing ongoing cost-reduction initiatives and other measures. Sales of tendered projects for which local governments and public institutions were the delivery destinations remained strong as the government advanced its initiatives to digitize public administration. As a result, segment revenue was ¥402.264 million, up 43.8% year on year.」

「As of the end of the consolidated fiscal year, the number of stock service contracts in the Regional Information Cloud business, meaning service contracts with local governments and public institutions, was 769, an increase to 129.0% of the previous consolidated fiscal year-end level.」

「The company is focusing on providing cloud services forming the foundation of digital government, including “Smart L-Gov,” a cloud solution for local governments to disseminate information and promote transparency in open government, “GaaS,” which connects residents and local governments online to encourage participation and collaboration, and the launch of “Open-gov Platform,” a data-integration platform for smart cities.」

「During the cumulative second-quarter consolidated period, the digital government business focused on winning new projects and expanding business with existing customers, while also pursuing ongoing cost-reduction initiatives and other measures.」

「During the cumulative first-quarter consolidated period, the digital government business focused on winning new projects and expanding business with existing customers, while also pursuing ongoing cost-reduction initiatives and other measures.」

「As of the end of the consolidated fiscal year, the number of contracts with local governments and public institutions for the four core services of the Regional Information Cloud business was 596 (Hokkaido 7, Tohoku 48, Kanto 128, Shinetsu and Hokuriku 64, Tokai 66, Kinki 177, Chugoku 31, Shikoku 11, Kyushu and Okinawa 64), an increase to 112.2% of the previous consolidated fiscal year-end level.」

「In the digital government business, provision of “Smart L-Gov,” a cloud solution for local governments to disseminate information, continued steadily, and the expansion of recurring revenue resulted in revenue of ¥1,228.059 million, up 9.3% year on year.」

「In the digital government business, provision of “Smart L-Gov,” a cloud solution for local governments to disseminate information, continued steadily, generating revenue of ¥709.656 million.」

「To realize electronic public administration leading to the “new public,” the company provides “Smart L-Gov,” a cloud solution for local governments to disseminate information and promote transparency in open government, and “GaaS,” a cloud platform centered on a resident ID infrastructure that encourages participation and collaboration, as foundations for digital government.」

「As of the end of the consolidated fiscal year, the number of contracts with local governments and public institutions for the four core services of the Regional Information Cloud business was 531 (Hokkaido 7, Tohoku 45, Kanto 124, Shinetsu and Hokuriku 45, Tokai 63, Kinki 173, Chugoku 22, Shikoku 7, Kyushu and Okinawa 45), an increase to 131.4% of the previous fiscal year-end level.」

「The acquisition of new projects in the Regional Information Cloud business remained strong, and revenue from the initial implementation of the “SMART L-Gov” Regional Information Cloud platform accumulated toward the fiscal year-end for local governments, resulting in revenue of ¥708.942 million.」

「In the Regional Information Cloud business, including the Regional Information Cloud platform “SMART L-Gov (Smart L-Gov),” the acquisition of new projects continued at a pace exceeding that of the previous period, and revenue was ¥308.508 million, up 26.6% year on year.」

「In the Regional Information Cloud business, the company focused on winning new projects and expanding business with existing customers, generating revenue of ¥121.341 million, up 6.3% year on year.」

「As of the end of the fiscal year, the number of contracts with local governments and public institutions for the four major regional information cloud services was 404 (4 in Hokkaido, 21 in Tohoku, 112 in Kanto, 28 in Shinetsu and Hokuriku, 45 in Tokai, 145 in Kinki, 21 in Chugoku, 4 in Shikoku, and 24 in Kyushu and Okinawa), a steady increase to 131.6% of the level at the end of the previous fiscal year.」

「In regional information cloud services, revenue reached ¥612.22 million, up 18.5% year on year, as the number of new projects secured increased following the strengthening of sales capabilities, a longstanding focus, and revenue from initial implementation work accumulated in line with local governments' fiscal year-end demand.」

「In regional information cloud services, the number of projects secured increased as we focused on strengthening sales capabilities and improving the order-win rate in the increasingly competitive market for local government solutions. However, revenue was ¥243.696 million, down 11.6% year on year, because some projects shifted into a different period.」

「In regional information cloud services, revenue reached ¥114.2 million, up 15.5% year on year, as new orders were secured and recurring revenue built steadily despite intensifying market competition.」

「As of June 2017, the number of contracts with local governments and public institutions for the four major regional information cloud services was 307 (2 in Hokkaido, 1 in Tohoku, 139 in Kinki, 83 in Kanto, 16 in Shinetsu and Hokuriku, 17 in Chugoku, 32 in Tokai, 2 in Shikoku, and 15 in Kyushu and Okinawa), representing progress of 131.2% compared with the previous fiscal year.」

「In regional information cloud services, revenue reached ¥516.792 million, up 1.3% year on year, as we focused on securing new projects, building recurring revenue and expanding services for existing projects.」

「In regional information cloud services, revenue reached ¥275.615 million, up 45.7% year on year, as we secured new projects using regional revitalisation budgets and built up recurring revenue.」

「In regional information cloud services, we steadily secured new orders using regional revitalisation budgets and built up recurring revenue, resulting in revenue of ¥98.867 million, up 65.3% year on year.」

「By focusing on the regional information cloud field, which enables information to be distributed through websites, email, smart devices and other media, we aim to improve revenue opportunities by expanding our recurring-revenue business.」