Completed building a foundation for Enterprise Business’s growth
The New Stage of the ‘Second Founding’ Period
Since FY2017, we have been focusing on expanding our Enterprise Business as the ‘Second Founding’ period to foster the second earnings pillar following our mainstay Entertainment Business. We aggressively invested in building a solid businesses base of our Enterprise Business by strengthening engineers and other human resources, building an efficient operating system, and expanding services through alliances. These investments have mostly tripled the number of test engineers in the last three years, resulting in improvements in the company’s order capacity and technological capabilities. In addition, we have acquired test automation tools and advanced security services through M&A and alliances. As a result, our services offering are not limited to "System Testing planning and execution", but also enable us to support our clients’ various processes of software development from multiple perspectives. Consequently, as tangible results of Q3 nine months of FY2020, the Enterprise Business’s net sales grew approximately four times compared to FY2017 and it went into the black for the first time since we started the ‘Second Founding’ period. Then, despite some businesses affected by COVID-19, consolidated net sales in Q3 nine months were 16,313 million yen (YoY +4.1%) and consolidated operating income was 1,183 million yen (YoY +11.0%), driven by the growth of this Enterprise Business.
Going forward, against the backdrop of developments in IoT (Internet of Things) and DX (Digital Transformation), we believe that demand for quality and security will continue to expand in the market, and how quickly responding to the rapidly changing environment will be a source of corporate competitiveness for all business players. From this second half of FY2020, as the new stage of the ‘Second Founding’ period, we have started to launch lots of initiatives aiming to develop full range of services to provide various values from conventional "Quality" and "Security" to newly "Agility".
We will continue to strive to maximize corporate value by “Exploitation” to strengthen existing services and “Exploration” to create new business opportunities.
We look forward to your continued understanding and support.
President and CEO