■Overview of IR <3854>

1. Service Overview ODK Solutions <3839> is a single segment information processing outsourcing service, so the business unit sales classification is system operation, system development and maintenance, and machinery sales. The sales composition ratio for the fiscal year ending March 2024 is 94.4% for system operation, 4.6% for system development and maintenance, and 1.0% for machinery sales, featuring a long-term and stable business model centered around system operation.

The company operates the system solution business with the main product being the core business management system series 'Aladdin Office', and the web solution business (CROSS business, other web business) focusing on the cloud-based multiple EC site integrated management software 'CROSS MALL' and the customer/point integrated management software 'CROSS POINT' for physical stores and EC. In order to support the business process transformation of client companies, they promote 'BX' by integrating the real and web aspects.

(1) System Solution Business

In the system solution business, they mainly provide core system design and development, hardware maintenance, system operation support, network construction, security management, etc. to client companies in-house. They offer the 'Aladdin Office' series with over 5,000 installations as their main product, as well as the store management system 'Aladdin Shop' for the fashion industry, the BtoB EC/Web ordering system 'Aladdin EC' specializing in inter-company transactions, and the data center operational type IaaS service 'Aladdin Cloud'. In March 2023, they strengthened the approval function of 'Aladdin Office' and started offering it as an optional feature 'Aladdin Workflow'. In addition, they operate ICC Osaka School and Tokyo School.

* Abbreviation for Infrastructure as a Service, a service that provides infrastructure such as virtual servers and networks over the Internet. In 'Aladdin Cloud', 'Aladdin Office' is operated in a data center instead of the traditional on-premises type.

The company aims to secure competitive advantage through system development tailored to the industry and business type of client companies, flexible customization, and a rich product variation specialized for each industry. They also focus on a stock-type business model to continuously generate income through maintenance and operational support post-sales. Since being certified as a supporting member of the Kansai Screw Cooperative Association for the first time as an IT company in 2006, they have been recognized as supporting members of multiple associations and have been conducting sales activities utilizing these connections.

(2) Web Solution Business

The web solution business consists of CROSS business and other web businesses. The CROSS business focuses on 'CROSS MALL' and 'CROSS POINT' as its main products. It has a high profit margin due to its inventory-based services. In November 2023, the company started providing the back-end platform 'BACKYARDTM'.

Other web businesses provide services such as staff management cloud system 'CROSS STAFF' for temporary staffing agencies (started in 2016), BtoC EC support, and web marketing support (including corporate website creation, operation support, EC site construction support, customer business analysis, business strategy consulting, promotion, and updates and improvements based on post-website creation log analysis results).

2. Major Products

Major products and examples of major adopters are as follows. The company's services have been certified as eligible tools for the Ministry of Economy, Trade and Industry's 'IT Introduction Subsidy 2024' (for the fifth consecutive year since 2020), in May 2024.

(1) Aladdin Office Series for mid-sized and small companies

Digitizes business management in areas such as sales, inventory, production, and store management, supporting workstyle reforms through operational efficiency and strengthening management capabilities through internal control. Examples of major adopters include Makers Shirt Kamakura Co., Fukusuke Co., ANAP Co., Madras Co., Farmaphood Co., Nada-Man Co., Nak Co., Osaka Prefectural School Meals Association, Fujiwara Steel Materials Co., Sakata Seisakusho Co., and Indosho Industry Co.

(2) Aladdin EC BtoB EC/Web Ordering System

Digitizes order management between companies and internally, supporting workstyle reforms through operational efficiency and increasing sales through differentiation from other companies. Examples of major adopters include PRECO GROUP (Preco Foods Co., Group Headquarters Company), Suntory Marketing & Commerce Co., France Bed Co., Amatake Co., Hitowa Food Service Co., Comfort Japan Co., Techno Eight Co., Kurokawa Dairy Co., Riteway (Lightway Products Japan Co.), Guest List Co., Seaman Co., and others in the medical device sales sector.

(3) Cross Mall is a centralized management software for multiple EC sites.

It supports the centralized management of various EC malls, EC carts, and multiple online shops, promoting workstyle reform through business efficiency improvement and sales enhancement through EC deployment strengthening. Major companies that have adopted it include Yahho Brewing for craft beer manufacturing and sales, Murasaki Sports for sporting goods sales, ANAP for ladies fashion, atmos for sneaker shops, Silver Bullet for men's fashion online shopping (P.B.I. Co., Ltd.), Iokto Co., Ltd. for environmentally friendly product import and wholesale, and Maruhisa for kimono wholesale and online shopping at Kimono Kyoto Komachi.

(4) Cross Point is a customer and point centralized management software for physical stores and EC.

By enabling omni-channelization and utilizing smartphone apps for physical stores and EC, it centralizes the management of customers and points for both channels, supporting sales growth through omni-channelization and expanding fan base through branding reinforcement. Major companies that have adopted it include Regal Corporation for shoe manufacturing and sales, Makers Shirt Kamakura for shirts and neckties, Fukusuke for stockings and socks, Branshes (Branshes Co., Ltd.) for baby clothing, children's clothing, and maternity wear, w closet (Double Closet: Wears Co., Ltd.) for casual women's clothing, B STONE Co., Ltd. for Amerivintage 'Ameri' online shopping, Soraobutokyo Co., Ltd. for ladies fashion online shopping 'flower', COO COMPANY LIMITED. for bag and apparel planning, manufacturing, and sales, and ANAP for ladies fashion.

(Authored by FISCO guest analyst Masanobu Mizuta)