• To Our Shareholders


To Our Shareholders

Results for the term ended June 2018.

(August, 2018)

We achieved our medium-term business plan’s target of 10 billion yen in sales a year earlier than anticipated. Our Financial Systems Solutions business saw us post sales as planned from large-scale development projects connected with card brands consolidation, as well as substantial growth in our cloud-based services. With the move toward a cashless society serving as a tailwind, increased requests for system development stemming from the diversification of payment methods also contributed to higher revenues. At the same time, operating income fell year-on-year as one of the processes in large-scale development projects turned unprofitable.

New medium-term business plan.

Looking ahead to the next 10 to 20 years, we have formulated a new medium-term business plan that positions the term ending June 2019 as the start of the company’s transformation period.

We are also carrying on with the “Evolving in 3 dimensions” concept, whose pillars are sales expansion in excess of 10 billion yen, human resources development, and corporate culture reform, and evolving its content in view of the current business conditions.

No matter how much things change, data will continue to be transmitted via networks. Utilizing the technical capabilities cultivated by our company will enable us to provide high-speed, secure, high-quality and convenient IT infrastructure, and to continue contributing to society regardless of what infrastructure or device configurations emerge.

Our company has inherited the technical capabilities to construct high-speed and secure “non-stop systems” compatible with any payment methods. In our new medium-term business plan, we are looking to support people’s livelihoods and evolve into a company that ushers in next-generation de facto standards by applying our company’s technology to data communications for a wider range of industries beyond the financial industry.

Business strategy for keeping sales above 10 billion yen.

The priorities for our Financial Systems Solutions business are developing next-generation products that will drive our company’s further growth and upgrading our cloud-based services.

With respect to next-generation products, we are developing our next-generation NET+1 (Net Plus One) as a gateway system that can simply connect not only to existing networks but also to a variety of networks for new payment services. To handle online payment and other non-face-to-face transactions, we have also begun developing a next-generation fraud detection system that employs artificial intelligence (AI). We are seeking to complete both of these during the term ending June 2019.

The three cloud-based services that we current offer – IOASIS (acquiring), IFINDS (fraud detection), and IGATES (switching) – have garnered more inquiries and agreements than anticipated. Sales for the current term are expected to reflect a substantial increase year-on-year, and we will work to further increase sales by expanding our new services.

In the Product Solutions business, we will supplement our sales of the CWAT system for preventing information leaks and the Traps system designed to counter targeted attacks that have driven our business thus far by enhancing Israeli-made information security products such as eyeShare, which automates responses to cyber-attacks, and SecBI, which uses AI to analyze threats hidden in large volumes of log data.

Reforms to be made to the corporate culture.

Our staffing has increased by nearly 100 over the past three years to bring the total number of employees to around 400. To ensure that we continue to improve our business performance, we will not only need to conduct continuing education for the employees we hire but also provide them all with a productive working environment and revamp the corporate culture to encourage personnel to take on new challenges at all times.

In improving the workplace environment, we will strive to put in place ideal working conditions that take into consideration the diversity of our employees. Six of the 38 new university graduates who joined the company in April 2018 were foreign nationals, and 16 were women. To enable employees who have newly joined the company to fully exercise their capabilities, we will put in place a workplace environment respectful of individuality with the intent of generating new energy from a diversity of values that transcend sex and nationality. For example, we will be using the results of company-wide questionnaire surveys that we conduct periodically to improve employee satisfaction by revamping existing personnel and labor systems and actively establishing new ones.

In reforming our corporate culture, we are aiming to form it imbued with an enterprising spirit. Looking ahead over the next 20 to 30 years, creating new “killer” systems that support growth will be absolutely essential. For that reason, we must evolve into a group of engineers prepared to actively tackle new ventures while maintaining the sound and conscientious characteristic of our company. The substantial generational changeover of business unit heads carried out in conjunction with the July 2018 organizational restructuring was also part of our corporate culture reform. 

In future, we hope to continue to build a corporate culture that will enable each and every employee to actively produce new products and new services beyond the next-generation NET+1 and next-generation fraud detection.

Forecasts for the term ending June 2019.

The term ending June 2019 marks the start of reform efforts under the new medium-term business plan, and we believe it will be an extremely important year for the company. Although sales from large-scale development projects are expected to decline year-on-year, we are convinced that sales can be kept above 10 billion yen by enhancing our cloud-based services, increasing development consignments as payment methods become progressively diversified, and expanding our business opportunities in new industries. In conjunction with these, we will strive to ensure suitable income levels on a sustained basis and create systems capable of growing by strengthening our management of development projects.

Message for shareholders.

In June 2018 the company changed its listing to the 2nd Section of the Tokyo Stock Exchange, not only to bolster our corporate brand strength by improving our social credibility but also to send a message to our employees. We always want the employees of the company to take pride in being members of a collection of outstanding engineers who support the basic infrastructure people use in their day-to-day lives, and to engage in their work with this sense of pride. We expect this section transfer to help us quickly implement our “Evolving in 3 dimensions” policies.

We would naturally be very grateful for the continued support of our shareholders.
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