We celebrated 40 years in business.

In December 2024, the company celebrated 40 years in business. This is all thanks to the support and cooperation provided by our shareholders and many others. We would like to express our sincere gratitude for everything that has allowed us to get to where we are now. I assumed the position of Chief Executive Officer and Representative Director in September 2024. While valuing the history which has been built up to this point, I will continue to strive to create new value and reliability for the further growth and development of the Company.

The Company has formulated a new 3-year medium-term management plan that begins in the fiscal year ending June 2025. In this medium-term management plan, the Company has set forth the theme of "Transformation for the Future," aiming to diversify business and build a foundation for sustainable growth, with an eye towards the 2030s. We have reorganized our business areas into three areas: "payment," "security," and "data communication and analytical infrastructure." Having done that, we are currently focusing on transformations taking place from three perspectives: "business," "technology," and "human resources." In each of these areas, we will further strengthen synergies with DNP and leverage the customer bases, functions, human resources, and services of both companies in an effort to combine value that will lead to innovation.

In the domain of payment, we are working to maximize the value and improve productivity of existing businesses, such as FEP* and fraud detection, and expand the domain. The FEP system is an essential component for payment service providers. Given the Company's already high market share, we are aiming for stable growth by shifting to a high-productivity model. In the area of fraud detection, the amount of fraudulent use taking place in terms of credit cards exceeded 50 billion yen in 2024. Problems such as this have become societal issues. With the Company taking the lead in the matter, payment service providers are working together to strengthen countermeasures against fraudulent use of credit cards across industries. When it comes to domain expansion, we are working to further expand our area starting with the acquiring area We are also working to expand the area in which we provide value to our key customers: credit card companies. We are strengthening our planning and consulting functions and working with customers to expand our area beyond FEP and fraud detection.

In the domain of security, we are enhancing product value by adding functions to our CWAT product and strengthening our presence in the field of information leakage prevention. We are also expanding our security operation services and rebuilding our cooperative structure with the DNP Group.

In the domain of data communication and analytical infrastructure, we are leveraging our core technologies to expand the field of market systems and to deploy our own products to the manufacturing industry. We are also working to strengthen our R&D capabilities. By repurposing core technologies and incorporating advanced technologies such as AI, we are going about expanding the functions of our products and services and improving the efficiency of system development and operation.

In the first half of the fiscal year ending June 2025, we recorded increases in sales and profits on firm growth in the mainstay areas of FEP* and fraud detection in the payment domain and the introduction of products to a major customer in the security domain. Net sales were 7.54 billion yen (up 8.6% year on year), operating income was 857 million yen (up 0.6% year on year), ordinary income was 887 million yen (up 3.2% year on year), and net income was 610 million yen (up 4.4% year on year). Amount of orders amounted to 12,751 million yen (up 30.5% year on year) with our orders on hand amounting to 21,795 million yen (up 57.9% year on year). Amount of orders increased significantly due to orders being received for large-scale infrastructure operation services for financial institutions and multi-year contracts for cloud services and security products.

We will continue to aim for further growth and increased corporate value to meet the expectations of our shareholders. We look forward to your continued support and cooperation.

*FEP (Front-End Processor) systems: Hardware and software with functions such as network connections and card authentication required for credit card payment processing

Chief Executive Officer,
Representative Director
Koji Kawakami