Focus on the priority-customer market business

「Revenue from HULFT Square increased 69.3% year on year.」

「During the current consolidated fiscal year, we announced 8 implementation cases. From January to March 2026, we announced implementation cases for HULFT Square at Japan Airlines Co.,Ltd., JAL Digital Co., Ltd. and 株式会社横浜銀行, steadily expanding our implementation track record.」

「During the current interim consolidated accounting period, adoption of HULFT Square and other products continued to expand. For example, THE BANK OF SAGA LTD. adopted HULFT Square and built a mechanism for seamless integration between its core banking system, in-house systems and email transmission system.」

「Our group is promoting a shift from contract system development to the provision of our own products and services. We are developing and providing HULFT Square as a growth driver. During the current consolidated fiscal year, we incorporated market needs into updates and progressively expanded functions required for large-scale data integration for enterprise companies in particular. The number of service uses expanded to 314.3% of the previous consolidated fiscal year's level, and we will continue to work across the group to expand the service further.」

「Our group is promoting a shift from contract development to a service-based business, with HULFT Square serving as a growth driver. During the current interim consolidated accounting period, we announced an integration solution combining HULFT Square with a service provided by キヤノンITソリューションズ株式会社, aimed at seamless integration of EDI data with various internal and external corporate systems and the automation of business processes.」

「In addition to expanding the scale of our iPaaS offerings, sales of licences and support services for conventional packaged products such as HULFT also progressed, bringing the data integration business's share to 52%.」

「As the proportion of the data integration business in our group's business mix expands through activities such as PoCs and developing prospective customers, the business shift is also beginning to produce steady results.」

「DataSpider Servista and HULFT DataCatalog were adopted for a data integration platform designed to improve residents' lives, including through flood forecasting in Nagano Prefecture.」

「Revenue was ¥599 million, up 23.7% year on year, owing mainly to steady growth in projects to build data integration platforms for companies.」

「Company-wide proposal activities have progressed, centred on the Concept Design Service, which we began providing in earnest during the current consolidated fiscal year, and the service has begun to be used to support DX initiatives by private-sector companies and government agencies. In the data platform business, a pillar of our DX initiatives, the customer base grew to 220 companies (as of 31 March 2023), while revenue for the current consolidated fiscal year expanded to ¥2,115 million.」

「We held HULFT DAYS 2022 from 8 to 10 November 2022. Amid growing interest in DX and strong attention to data integration between various systems and SaaS applications, the number of registrations for the event exceeded 3,500, more than double the previous year's figure. In addition, proposals for the Concept Design Service, a short-term consulting service covering upstream processes such as analysis and planning for data integration and utilisation, have progressed across all divisions, and the service has begun to be used to support DX initiatives by private-sector companies and government agencies. We have also won orders for data integration platform construction projects that can standardise data held by prefectures, municipalities and other local authorities.」

「Our group aims to achieve further business growth by improving the profitability of existing businesses through thorough productivity gains and expanding into new markets and customer segments. Specifically, we are implementing 5 priority initiatives: ① rollout of the DX data integration platform business across all divisions; ② competitive strategies for creating new businesses; ③ stronger alliances; ④ strengthening our structure in connection with the release of HULFT Square; and ⑤ our human resources strategy.」

「In the data platform business, we began providing Concept Design, a short-term consulting service covering upstream processes such as analysis and planning for data integration and utilisation, to support DX initiatives by private-sector companies and government agencies. We are also strengthening our delivery structure and developing a service menu to meet demand for data integration platform construction following consulting engagements. The number of customers in this business increased by 6 from the end of the previous consolidated fiscal year to a cumulative total of 204 (as of 30 June 2022), while revenue grew steadily, up 21.4% year on year.」

「The number of customers in the linkage business expanded to 198, mainly among major companies, and the business has become established as one of the pillars of our operations (as of 31 March 2022). Going forward, we will position this business as a DX data integration platform business, establish an operating structure for a service-based business using HULFT Square, and roll it out across all divisions.」

「The number of customers and transaction volumes for Linkage Services, positioned as a growth pillar, are expanding steadily.」

「In September 2021, we announced the joint development of a platform combining Buffalo’s corporate NAS products, from the Melco Holdings Group, with our IoT data integration solution. The platform proposes a new business model targeting a broad customer market ranging from small and medium-sized businesses to large corporations, with the aim of building infrastructure as a foundation for a safe and secure society.」

「Sales reached ¥399 million, up 87.2% year on year, reflecting substantial progress as both the customer base and transaction scale expanded, mainly for the Modern Management Service and Modern Finance Service. However, an increase in selling, general and administrative expenses, including expenses associated with higher staffing levels to expand the business, resulted in an operating loss of ¥97 million, compared with an operating loss of ¥167 million in the same period of the previous year.」

「Sales increased as the Modern Management Service for existing customers grew, reaching ¥925 million, up 4.8% year on year. However, an increase in selling, general and administrative expenses, including expenses associated with higher staffing levels to expand the business, resulted in an operating loss of ¥417 million, compared with an operating loss of ¥40 million in the same period of the previous year.」

「The Linkage Business uses HULFT and DataSpider, our strengths, to connect systems and data within and between companies with leading SaaS (Software as a Service) products. It provides services that improve customers’ operational efficiency, support decision-making by visualizing management information and drive management transformation. These services consist of 3 offerings: Modern Management Service, which supports DX for management and operations; Data Integration Platform Construction Service, which provides a DX platform; and Modern Finance Service, which supports DX for finance and accounting.」

「The Linkage Business provides data integration services that apply HULFT and DataSpider, our strengths, to integration between leading SaaS products and related systems, ensuring flexibility and improving productivity. It also provides services for designing and building customers’ data integration platforms and integrated data analytics platforms. Previously operated as part of the Distribution IT Services Business, it has been separated as the Linkage Business to pursue further growth. In addition, new service offerings have been added to the Modern Finance Service, a data integration service between SaaS products for finance and accounting departments and customers’ core systems. Service provision has begun to help improve productivity in customers’ financial closing and cash management operations. The business will be developed together with the Modern Management Service, a service already provided to support management decision-making through data integration.」

「As a result, linkage services have become established as a core business, and we will pursue further growth by increasing resource allocation. We will also work to build new services, including iPaaS (integration Platform as a Service), by leveraging the linkage business, HULFT products and cloud technologies.」

「The business model is steadily shifting from a focus on systems development to a focus on service provision. Although projects in existing areas declined, linkage service projects increased steadily, resulting in Distribution IT Services Business sales of ¥3,638 million for the first nine months of the fiscal year, up 10.1% year on year.」

「Linkage services, positioned as a core growth driver, use our strengths, HULFT and DataSpider. Starting with the implementation of leading SaaS products and data integration between related systems, the service scope has steadily deepened and expanded to include the design and construction of company-wide data integration platforms and integrated data analytics platforms.」

「During the first three months of the fiscal year, substantial progress was made in building an infrastructure for migration to the public cloud in the Fintech Platform Business, data integration services in the Distribution IT Services Business, and cloud-based subscription services in the HULFT Business. As a result, sales from the three new business categories totaled ¥1,246 million, up 120.9% year on year.」

「In the Distribution IT Services Business, we are conducting proof-of-concept testing toward the commercialization of a blockchain-based delivery locker and promoting the provision of various data integration services that support customers’ DX.」

「In our medium-term management plan, the Group has identified “creating new businesses” as a priority initiative. We are promoting the creation of new products and services for new technologies and markets, centered on the Group’s strength in “connecting” technologies.」

「In our medium-term management plan, the Group has identified “creating new businesses” as a priority initiative. We are promoting the creation of new products and services for new technologies and markets, centered on the Group’s strength in “connecting” technologies.」

「① Creating new businesses. In the Fintech Platform Business, we will expand payment services focused on convenience, create fee-based businesses and develop specialized Fintech service businesses. In the Distribution IT Services Business, we will provide various linkage services that support customers’ DX (digital transformation). In the HULFT Business, while maintaining safety and security as core product attributes, we will work to expand our track record of use in DX fields, led by IoT (Internet of Things).」

「In our medium-term management plan, the Group has identified “creating new businesses” as a priority initiative. We are promoting the creation of new business models by combining our strength in “connecting” technologies with advanced technologies such as IoT and blockchain.」

「In terms of earnings, profitability improved as the loss processing related to the cancellation of certain projects incurred in the same period of the previous year wound down. However, research and development expenses increased as we actively pursued proof-of-concept testing of a delivery locker using IoT and blockchain and the commercialization of data analytics services. As a result, the first six months of the fiscal year recorded an operating loss of ¥4 million, compared with an operating loss of ¥251 million in the same period of the previous year.」

「In our medium-term management plan, the Group has identified “creating new businesses” as a priority initiative. We are promoting the creation of new business models by combining our strength in “connecting” technologies with advanced technologies such as IoT and blockchain.」

「Meanwhile, services using advanced solutions in areas such as expense settlement and data analytics, which we began pursuing in the previous fiscal year, are beginning to produce results through customer acquisition and progress in marketing activities. We are also actively pursuing new initiatives aimed at the future development of the business, including proof-of-concept testing of a delivery locker that can be opened only by the intended recipient, using the latest technologies, IoT and blockchain.」

「From the first quarter, we have promoted a focus on the priority-customer market business and made organizational changes to become a category leader through “selection and concentration.” As a result, certain credit-card-related businesses previously included in the Enterprise Solutions Business were consolidated into the Card Systems Business. The Enterprise Solutions Business would focus on the distribution and retail industries, other new customers and new services, and its reporting segment was changed to the Distribution and IT Solutions Business.」

「As a result, certain credit-card-related businesses previously included in the Enterprise Solutions Business were consolidated into the Card Systems Business. The Enterprise Solutions Business would focus on the distribution and retail industries, other new customers and new services, and its reporting segment was changed to the Distribution and IT Solutions Business.」

「① Focus on the priority-customer market business. In the Card Systems Business, we will work to expand our IT share within our most important customers. In the Distribution and IT Solutions Business, we will provide proprietary solutions related to connectivity, integration and big data, and pursue new business through collaboration between the newly established Technovation Center, a coined term combining “technology” and “innovation,” and each business.」