Strengthening Data Center Capabilities and Advancing the Cloud Business

「Under "Structural Reform," depreciation and amortization increased due in part to the launch of a new Ryomo Systems data center (the "RSDC") as a front-loaded investment to prepare for future business expansion. However, efforts including the promotion of a cloud usage-fee business using the data center helped level out earnings and contributed to securing stable earnings.」

「As part of efforts to strengthen the data center business, a new data center based on the concepts of “GREEN,” “TRUST” and “OPEN” (official name: Ryomo Systems Data Center) began operations on 17 April 2024, expanding the foundation for business growth.」

「In promoting the data center business, we proceeded with preparations for operations this spring, including the completion in December 2023 of the new data center whose construction began in November 2022.」

「The increase in property, plant and equipment was mainly due to an increase of ¥1,426.650 million in construction in progress, among other factors. Cash used in investing activities was ¥1,443.280 million (¥500.422 million in the same period of the previous year). The main factor was a ¥1,327.114 million cash outflow for the acquisition of property, plant and equipment, among other factors.」

「The increase in property, plant and equipment was mainly due to an increase of ¥1,029.615 million in construction in progress, among other factors.」

「As a foundation for medium- to long-term growth, the company promoted plans to build a new data center targeted to begin operations in spring 2024, in addition to」

「As a foundation for medium- to long-term growth, we commenced construction of a new data center targeting operations in spring 2024,」

「As part of the “structural reform” and “strategic investment” initiatives, we continued to consider the plan to construct a new data center for further growth.」

「The Group will strengthen its data center business so that it can use secure data centers to provide a diverse range of services to all customers on a one-stop basis.」

「As part of the “strategic investment” initiative, we are pursuing a plan to construct a new data center for further growth and have begun preparations for operations in November 2023 as “a next-generation SIer-oriented data center originating in a regional area, with reliability and convenience.”」

「Effective 1 April 2021, we conducted a merger by absorption under which the Company was the surviving company and RIDC was the absorbed company.」

「For the purpose of consolidating data center functions within the Company and operating them on an integrated basis, diversifying cloud services, enhancing security services, strengthening technical capabilities, expanding the areas in which the data center can be used, and improving earnings power by streamlining the ISP business, we will undertake organizational restructuring under which the ISP business will change from the Company to its wholly owned subsidiary, 両毛ビジネスサポート, which is responsible for business support functions.」

「■ Tier 4-level data center」

「In other information services, data center-related services remained solid.」

「Our group will strengthen the data center business so that it can provide a diverse range of services on a one-stop basis to all customers by leveraging secure data centers.」

「Other information services, particularly data center-related services, remained solid.」

「Other information services, particularly data center-related services, remained solid.」

「In the Social and Industrial Business segment, software development, systems sales and cloud services remained solid.」

「To respond to changes in customers’ ICT usage, our group will promote the cloud business and strengthen data center functions to protect customers’ data from unforeseen events such as disasters and accidents and support business continuity planning.」