Reorganization of the Business Portfolio and Strengthening of Alliances

「Our US subsidiary, Saison Technology International, Inc., entered into strategic partnerships with Opnova, which provides an agentic AI platform, and Vectara, which specializes in retrieval-augmented generation (RAG). By combining our data integration technology with the advanced AI technologies of these companies, we will support greater productivity and secure use of AI by customers in the financial and manufacturing sectors and other industries, including business automation and conversational AI.」

「Our US subsidiary, Saison Technology International, Inc., entered into separate strategic partnerships with Opnova, which provides an agentic AI platform, and Vectara, which operates in the retrieval-augmented generation (RAG) field.」

「Standard support for SAP ERP 6.0 (ECC 6.0), used by many enterprise companies in Japan, will end in 2027, making system migration and optimization of operating costs an urgent priority. One measure is to shift business functions handled on the ERP side to functions provided by individual SaaS providers. Through HULFT Square's data integration capabilities, we will connect ERP systems and the SaaS offerings of individual providers through a loosely coupled architecture, and will pursue this initiative jointly with SaaS providers and technology partners.」

「During the interim consolidated accounting period, we announced a new integration solution combining HULFT Square with services provided by キヤノンITソリューションズ株式会社 to achieve seamless integration between EDI data and various internal and external systems and automate business processes.」

「We entered into a capital and business alliance agreement with メルコホールディングス on 29 October 2021. We subsequently entered into an agreement dated 19 March 2024 with 株式会社メルコグループ and メルコホールディングス to change that capital and business alliance agreement to a three-party agreement.」

「Our group and サイオステクノロジー株式会社 announced that they will jointly promote an integration solution combining technical cooperation involving DataSpider, which connects data and applications between systems without programming or coding, and LifeKeeper, a high-availability solution, to automate data integration and ensure stable operation of core business systems.」

「We are collaborating with partner companies on our product and service portfolio to develop solutions addressing customer needs, including cloud integration, paperless operations and business automation. We are also considering stronger collaboration among companies, including M&A, to expand our product and service portfolio, such as HULFT Square, and the technologies used to develop it.」

「To address customer needs in the data platform business and build the delivery structure required to meet them, we are strengthening our delivery capabilities by forming strategic alliances with partner companies. We are also working with partner companies to develop solutions that address customer needs through collaboration involving our product and service portfolio.」

「メルコホールディングス acquired 4,488,800 common shares of the company from ECM Master Fund through an in-kind contribution (27.72% of the number of shares calculated by deducting non-voting shares from the total number of issued shares as of 31 March 2021).」

「On 29 October 2021, the company entered into a capital and business alliance agreement with メルコホールディングス. The companies will work on developing products that combine their respective products and making mutual use of their sales channels.」

「The company has decided to discontinue and restructure the general-purpose server infrastructure services in the Distribution IT Services business because their profitability is expected to decline.」

「By limiting system development projects to those that leverage our strengths and actively expanding our data-integration service business, which led to a steady increase in projects, among other measures, revenue from the Distribution IT Services business during the cumulative first 3 quarters of the current consolidated fiscal year was ¥3,303 million, up 1.0% year on year.」

「The business is in the process of shifting its business model from one centered on system development to one centered on service provision. Although data-integration service projects have been increasing steadily in terms of revenue, revenue from the Distribution IT Services business during the cumulative first 2 quarters of the current consolidated fiscal year was ¥2,098 million, down 3.1% year on year, due in part to limiting system development projects to those that leverage the company’s strengths.」

「In terms of revenue, we aim to transform our business model to achieve higher productivity in existing businesses and expand into new markets and serve new customers. By limiting system development projects to those that leverage our strengths, among other measures, revenue from the Distribution IT Services business during the cumulative first quarter of the current consolidated fiscal year was ¥978 million, down 8.2% year on year.」

「At a meeting of the Board of Directors held on 29 November 2017, the company resolved to transfer all shares of its consolidated subsidiary フェス, of which it owned 100% of the issued shares, and sold the shares on 4 January 2018.」

「Under the new medium-term management plan, we will work to enhance corporate value by pursuing management priorities including the development and strengthening of our business portfolio, business foundation and financial foundation needed to achieve the vision of “Becoming a category leader! — Demonstrating an overwhelming presence in specific fields —” and achieve dramatic, non-linear long-term growth, as well as by developing and strengthening our financial foundation.」

「Under the new medium-term management plan, we will work to enhance corporate value by pursuing management priorities including the development and strengthening of our business portfolio, business foundation and financial foundation needed to achieve the vision of “Becoming a category leader! — Demonstrating an overwhelming presence in specific fields —” and achieve dramatic, non-linear long-term growth, as well as by developing and strengthening our financial foundation.」

「From the first quarter of the current consolidated fiscal year, we have been reorganizing to focus on our key customer market business and to pursue category leadership through “selection and concentration.”」

「We will seek to achieve long-term growth through the realignment of our business portfolio and stronger alliances, and establish a business foundation capable of consistently achieving ROE of 15%.」