The Distribution Business demonstrated steady performance driven by increased sales; however, the impact of amortization related to M&A activities resulted in a decline in profits. The goal for fiscal year 2024 is to achieve the highest-ever earnings.

For the fiscal year ending in December 2023, the full-year performance reached a sales of 15 billion yen (a 22.9% increase compared to the previous period) and an ordinary profit of 1.06 billion yen (a 6.9% decrease compared to the previous period). Sales increased across all segments, with both M&A activities and business growth contributing almost as planned. On the other hand, ordinary profit saw a decrease due to the impact of goodwill amortization, among other factors. However, we still achieved 130% of the planned target. Distribution experienced robust growth.

Looking at each segment, the Distribution Cloud Business, centered around the growth of services for food retailers, including the @rms ERP, steadily accumulated approximately 200 million yen throughout the year. The Government Cloud Business experienced a significant increase in revenue with the commencement of consolidation of the performance of Synergy Corporation. However, a decrease in profits occurred due to amortization burdens related to M&A. An upward deviation from the plan has been achieved by working on efficient project progress. The Trust Business saw an increase in sales with the commencement of large-scale operations for CloudCerts projects. Preparations are underway for the launch of electronic contract services for the real estate sector. The Mobile Network Business experienced increased sales through contributions from M&A activities, but persistent challenges in the business environment led to a decrease in profits.

Looking ahead, our plan is to achieve increased sales with a focus on the growth of the Distribution Cloud Business. With the business’s growth, the aim is to absorb investment and amortization costs related to M&A and development, striving to achieve the highest earnings on record. The future direction involves enhancing corporate value from both aspects of “Efficiently improving earning power ” and “Foster future expectations.”