Outline of Dawn <2303> Business.
1. Growth of cloud service market. In system development, there is a shift from "ownership to use" as the shift to "cloud" is underway. For customers, it is easy to use the latest system with initial investment restraint and there is no hassle of operating and maintaining it by themselves. From autumn 2020, efforts to gradually switch their own managed and owned current systems to cloud have started in each ministry and agency. Along with the strengthening of information security, cloud has been judged to be advantageous in terms of cost control and accelerated system updates. The trends of ministries and agencies are spreading to municipalities, and the trend towards cloud is accelerating. 1,404 municipalities (as of April 2021), accounting for 81.7% of the total, have introduced some kind of cloud system. The progress of cloudification has greatly contributed to the company's growth. The sales ratio of cloud usage fees, which was 20.5% of the total sales revenues in the fiscal year ending May 2016, has risen to 50.7% in the fiscal year ending May 2024, becoming a driver of the company's growth.
NET119 Emergency Reporting System, the major cloud service whose coverage of the domestic population has exceeded 70%. The emergency reporting system "NET119" that was started in 2010※ has become synonymous with the company. This system is an emergency reporting system for people with hearing and speaking disabilities, and can be used to report 119 quickly and easily using the internet connection function of smartphones and mobile phones. It can be used to report emergencies such as sudden illness or injury, earthquake or flood damage, and fires from not only home but also from outside thanks to its GPS function, and the receiver can identify the location immediately. It has been widely popularized in municipalities and fire brigades across the country, thanks to its ease of use and high reliability as a system. This system is a cloud service, and has the advantage of being operated at a lower cost and with less effort than when managed by the customer municipality themselves. The price system is a monthly usage fee based on the population of the fire-fighting jurisdiction. ※ The system name at the beginning was "Web119 Emergency Reporting System".
3. The strong advance of the cloud-type video reporting system "Live119".
The emergency reporting system "NET119" that was started in 2010※ has become synonymous with the company. This system is an emergency reporting system for people with hearing and speaking disabilities, and can be used to report 119 quickly and easily using the internet connection function of smartphones and mobile phones. It can be used to report emergencies such as sudden illness or injury, earthquake or flood damage, and fires from not only home but also from outside thanks to its GPS function, and the receiver can identify the location immediately. It has been widely popularized in municipalities and fire brigades across the country, thanks to its ease of use and high reliability as a system. This system is a cloud service, and has the advantage of being operated at a lower cost and with less effort than when managed by the customer municipality themselves. The price system is a monthly usage fee based on the population of the fire-fighting jurisdiction. ※ The system name at the beginning was "Web119 Emergency Reporting System".
* The system name at the beginning was "Web119 Emergency Reporting System".
Starting with Kobe City, Hyogo Prefecture and Kawaguchi City, Saitama Prefecture, the introduction of the system has progressed, and in December 2015, it started operating at the Tokyo Fire Department and in October 2016, at the Osaka City Fire Department, gaining momentum in expanding horizontally to municipalities nationwide. Various efforts by the Ministry of Internal Affairs and Communications since 2018 (such as the use of local allocation taxes to cover introduction costs and publicizing non-introduction areas) have also been a boost. As the introduction in metropolitan areas has advanced, the future introduction will be mainly for medium-sized and small municipalities. In April 2023, they took over the customers (fire department headquarters, etc.) of Ryobi Systems, which provides similar services. The coverage rate of the fire department headquarters that have introduced the same system has reached 72.6% (as of the end of May 2024).
3. The strong advance of the cloud-type video reporting system "Live119".
The company has been promoting the cloud-based video notification system "Live119" as its next generation flagship system and has been strengthening its deployment. With this system, in the event of emergencies such as ambulance, rescue, accidents, and fires, the caller can send videos on their smart phone to convey the situation on site that may be difficult to explain with words. Since it was launched in July 2020 by the Kobe City Fire Department and Ono City Fire Department, implementation and test operations have been progressing in fire departments nationwide. The system has been introduced in Osaka City, Ibaraki Prefecture (most municipalities in the prefecture), and most recently in the Tokyo Fire Department, the largest of its kind in Japan (including the 23 wards and 29 municipalities in the Tama area) and Fukuoka City, etc., and as of the end of May 2024, the population coverage rate has reached 39.6%. As background to the acceleration of its adoption, there are many successful examples of "quick connection", "simple and easy to use", "assured operating environment", and there is a growing expectation for it to be a "119 visualization solution" that will change the way emergency information is managed. In January 2024, it was introduced on TV Tokyo's "WBS (World Business Satellite)" and has gained popularity through numerous media reports. In July 2024, it underwent a significant version upgrade, such as the addition of an AED location information transmission function, strengthening of sharing functions, and multi-language support function. The immediate goal is to introduce it in 200 fire departments by May 2025, but so far, its introduction has been progressing smoothly, with implementation centered on urban areas. The company is drawing a medium to long-term scenario to continue growing steadily throughout the company by accelerating the expansion of video systems such as "Live119" and "Live-X", as it is expected that the growth of its current flagship "NET119 Emergency Notification System" will slow down.
(Written by FISCO Guest Analyst, Hideo Kakuta)