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Mid-term management plan
Mid to long-term objectives/Mid-term management plan

Mid to long-term objectives／Management strategy
Mid-term management plan

Mid-term management plan(FY2019-FY2021)

Plan Framework

Becoming an excellent company that makes sustainable growth possible

In our mid-term management plan, we have formulated our company-wide focus measures, business strategy plan, investor strategy plan, ESG initiative plan, and business results plan based on management strategies aimed at achieving mid- to long-term objectives.

Company-wide Focus Measures

Company-wide focus measures promote strengthening of business foundations, as measures that form a basis for aiming to achieve sustainable growth. As strong constitution is necessary in order to adapt to all kinds of changes, we will develop both internal and external power.

Partner / channel strategies: Amid significant changes in the industry environment, it is inefficient for the Company to develop its business alone, and highly likely to lose expandability. As such, we will actively promote partnerships and sales channel expansion based on win-win relationships.

Enhancing competitiveness of cloud service: As a platform provider, we will provide cloud services by deploying applications developed by other companies that are highly specialized on our cloud infrastructure, increasing the added value of the Company's platform.

Further promoting cross-sales: We will further evolve the one-stop service, which the Company has continuously worked on as its strength, developing a consistent service structure from planning to BPO. Through this effort, we will further vitalize internal cross-sales between departments.

Business strategy plan

Information processing services

SS / Contract calculation / settlement

Increasing the market share of SS processed (from 33% to over 50%)
Expanding the non-oil business by utilizing the nationwide network of sales branches
Expanding sales of services for the LPG distribution business

Cloud services

Expanding sales of cloud service platform (NGEC)
Strengthening and expanding sales channels
(Increasing resellers / developing OEM model)

Printing / mailing / BPO

Reviewing and expanding the scope of services provided
Actively expanding the BPO service business

DX solution

Quickly monetizing the BIM and CIM businesses that utilize drones
Enhancing AI cloud service for mid-tier small and medium-sized companies and expanding sales
Establishing and developing an IoT business model

System development services

Finance

Strengthening and reviewing financial packages according to changing needs in the financial market

Distribution / service

Differentiation from competitors by utilizing the sales management know-how for the distribution industry
(Developing the industry template introduction business)
Utilizing the modernization know-how of AS400 legacy assets and increasing orders

Space

Expanding the scope of business by increasing business partners, including new space companies and in-house satellite development venture companies

New market / service

Entering and developing new business markets in relation to "parking lot" and "renting"

The business strategy plan is a plan for increasing market share, expanding sales channels, and creating new business models. Through this plan, we will aim to achieve the numerical targets for the mid-term management plan.

Investor strategy plan

Human resource development

Implementing measures to achieve the targeted number of new graduate recruitment, implementing a mid-career recruitment strategy
Enhancing education and training systems as well as their contents for upgrading human resources in each level

Data center

Systematically renewing the facilities in the 1st data
center and the 2nd data center
Considering policies for a data center expansion plan

Research and development

Developing the next-generation cloud platform that NGEC evolves into
Developing data analysis and data science businesses
Utilizing satellite data in business

Overseas business

Discussing forms of overseas expansion (planning to open an overseas site in Southeast Asia)
Aiming to develop service with strong fields and advanced technologies

We make proactive investments for sustainable growth. We will promote development that looks toward the future in the current mid-term management plan, including investments in human resources, which form the foundation for all activities, data centers, which are at the core of the Company's business model, research and development that lead to differentiation and enhancing competitiveness, and establishing overseas sites in preparation for an overseas business.

ESG initiative plan

In the current mid-term management plan, we are planning ESG initiatives as well. As the Company believes that human resources are the most important management assets, we are promoting health and productivity management as well as diversity, and strive to create an workplace environment that is easy to work. In addition, we actively conduct social contribution activities, and have established a specified subsidiary that promotes employment of people with disabilities. Furthermore, we are conducting initiatives for the environment and governance based on our business and circumstances.

Business plan

Million yen

	Fiscal year ending March 31, 2019	Fiscal year ending March 31, 2020	Fiscal year ending March 31, 2021	Fiscal year ending March 31, 2022
Net Sales	27,591	30,000	31,500	33,200
Operating income	2,345	2,450	2,580	2,730
ROE（％）	10.9	10.9	11.0	11.1

Having steady implementation of measures and strong market trends, we have set the net sales target for the final fiscal year at 33.2 billion yen in the mid-term management plan, an increase of 20.3% compared with the fiscal year prior to the plan (March 2019). As for the operating income, as we are planning to make prior investments for future growth within the current plan period, we have set the target at 2.7 billion yen, an increase of 16.1%. We will strive to achieve these targets to the best of its ability.

Capital policy

When formulating strategies such as mid-term management plans, we will make plans based on an appropriate capital policy, in consideration of its capital costs. As part of these efforts, we will establish a target ROE as an important management indicator. For the management strategies and management plans that have been formulated, we will annually confirm and analyze their progress, and consider amendments to the allocation plan of the management resources as necessary, including new business investments, capital investments, and investments in human resource development.