(202A) Mamegura Digital Holdings - New Analyst Report 6/28

The Mamekura Digital Holdings Group consists of a total of 4 companies: Mamegura Digital Holdings and Mamezo, Kowamex, and NT Solutions, which are consolidated subsidiaries. The main business is the information-related service business, and the business is roughly divided into 4 services: “cloud consulting,” “AI consulting,” “AI robotics engineering,” and “mobility automation.” It also provides educational services that provide education and guidance on technology and know-how covering all services.

(1) Cloud consulting

This service is provided by Mamegura and NT Solutions. Since data storage and utilization are a prerequisite for an enterprise to build a digital business, it is necessary that the operation itself has been digitized. The current situation is that there are many companies that are in the early stages of realizing digital business, where they must first cloud existing systems or in-house manufacture of technical resources.

Cloud consulting supports DX (internal DX) within client companies, such as internal operations and changes within the organization, for the purpose of improving work efficiency and productivity by utilizing digital technology for such client companies. Instead of entrusting system construction and operation to IT vendors, support is provided, including the provision of education services, so that client companies can in-house manufacture by their own engineers.

Mamegura is providing IT in-house production support including IT human resource development, design support for cloud native architectures, DevOps introduction support, agile development support, etc. for core system renewal for business corporations.

NT Solutions is a consulting company specializing in the ERP business and has introduced SAP and Microsoft Dynamics 365 to support visualization and DX conversion of corporate management information.

(2) AI consulting

It is a service provided by Mamegura, and while cloud consulting is a service related to improving productivity and efficiency with respect to the business of client companies and building a platform for data collection and analysis so that it can be used for service and product development, AI consulting is a so-called external business that leads to consumer needs and demand forecasts based on the development of products and services using new digital technology and data analysis related to consumers The emphasis is on DX (external DX).

We are planning AI strategies for client companies promoting DX, constructing grand designs to be able to utilize AI and big data, analyzing data by data scientists, constructing and developing/operating AI algorithms, and developing human resources essential for client companies' own operations.

(3) AI robotics engineering

It is a service provided by Mamegura, and the manufacturing industry is its main customer. It provides development support services for industrial robots, consulting services for upstream processes in the automotive field, and research and development support.

Based on various software products, we not only provide consulting on system construction utilizing advanced technology such as AI and robots, but also conduct prototype development by utilizing knowledge such as mechanical (machinery) and electronics in addition to software.

(4) Mobility automation

We are designing and developing various functions that make up automobiles, ships, aircraft, robots, etc. Utilizing our own technologies such as software, mechanics, electronics, and AI, we support all processes from development/design to production in the industrial machinery and mobility fields to realize a digital shift.

The main customer of this service is Denso Techno, a subsidiary of Denso (6902 Tokyo Stock Exchange Prime), which develops and designs software for information processing and control systems. The majority of sales for Denso Techno are related to mobility automation, and although dependence on Denso Techno has declined, it has remained above 20% of company-wide sales.