■ The business contents of P.B. Systems <4447>

2. Emotional System Business

The Emotional System Business produces and sells a series of immersive VR theaters called "MetaWalkers" (formerly known as 4DOH, changed on January 16, 2023), based on a patented technology (Patent No. 4166260: Method and Apparatus for Projecting Stereoscopic Images) that enables seamless display of 3D images on a 360-degree screen. As of the end of September 2024, there are 12 permanent installations in Japan and one overseas, totaling 13 locations (excluding one research institution in Japan not open for public use). In addition, there are demonstration units set up in the headquarters showroom and Tokyo office to encourage existing customers visiting the office to try them out and discover potential demand.

In 2020, types were launched that featured interactive capabilities allowing viewers to influence the story branching of the displayed images, as well as a smaller version with improved ventilation suitable for the new normal of society addressing the spread of COVID-19. The products gained attention during this challenging time, having been used at the Aomi Garden Christmas event in December 2020 and in the nationwide special program "Hatori x Sasahara Everyone's Dream Award - Making Dreams Come True! SP" aired by KBC (Kyushu Asahi Broadcasting) in February 2021. Additionally, content production for screenings using MetaWalkers includes famous IPs such as "Ultraman Zero Another Battle ~ Light and Power ~" launched in March 2017, and has also worked on "Initial D Project VR - Dash -" and "Shinkansen Transforming Robot Shinkalion 360° The Movie." The company's president, Mr. Tomita, has extensive knowledge of anime and manga content, which likely aids in the business expansion.

While MetaWalkers originally centered on the attraction demand in amusement parks, its usage has started to expand into museums and science centers. Interest has been growing at a time when possibilities for applications as tools for regional revitalization, in healthcare and sports fields, and various simulator uses such as disaster prevention and factory tours were being explored, yet the COVID-19 pandemic struck. Therefore, rather than focusing on past trajectories or current situations, the specific demand after COVID has become the focus of this business. Already, there are plans to utilize it as a new attraction titled "Hamustan's 4D Theater" at the nationally renowned Hitachi Seaside Park, which is famous for its field of nemophila, and in March 2024, a recreated set of the production site for a popular NHK historical drama was also featured at the "Super Experience NHK Fest 2024 in SHIBUYA," indicating a recovery in current inquiries.

■ Strengths

Highly regarded by famous overseas IT companies as one of Japan's leading "virtualization technology companies."

The "P" in the company's name stands for "Powerful," and the "B" represents "Beautiful," indicating a desire to create systems that are both powerful and beautiful. The aim has always been to build systems that are as universal and resilient as possible, unaffected by the flow of the times, while continually striving to consider customer expectations one step further in terms of system building (solution proposals). This strong commitment to quality is evident from the high evaluations received from partner companies.

Recognized as 'Citrix Specialist of the Year' by Citrix Systems Japan in 2017, and received the 'Best of Citrix Advisor Rewards/Net New Partner Sourced Award' for two consecutive years in 2017 and 2018, as well as winning the first domestic 'Technology Excellence Award' in 2019, achieving recognition as a virtualization technology company. Citrix's resellers (authorized Dealers) are classified into three ranks, with 'PLATINUM' at the top, and the company continues to hold the highest rank of 'PLATINUM'. It also receives high ratings from globally recognized companies like Microsoft, VMware, and DELL, and has established numerous partnerships with domestic IT companies. On February 28, 2024, at the 'Wasabi Partner Network 2024 Japan' hosted by the advanced cloud storage company Wasabi Technologies Japan, it received the 'Cloud Visionary Award'. This award was granted due to the high evaluation of the unique resilience solution project utilizing Wasabi's cloud storage, the sales performance of Wasabi's new service, Wasabi Cloud NAS, and the expectations for further sales expansion in the future. The unique resilience solutions incorporating Wasabi storage are provided to clients in the manufacturing sector, including electronic materials manufacturers in the Tokyo metropolitan area and mid-sized companies in Kyushu, which are actively investing in infrastructure due to demand in the semiconductor industry, thereby contributing to the expansion of the customer base.

In September 2024, a capital and business partnership was announced between the Cloud Software Group, which owns Citrix, and Ascentec <3565>, which develops virtual desktop products, considering the establishment of a new company. The company anticipates strengthened support for Citrix product Dealers through the new company in the virtual desktop market for medium and small enterprises, and expects reduced impacts on performance, such as the delay in order receipt that occurred in the September 2024 period due to anticipated short-term fluctuations in foreign exchange and contract practices related to the procurement of Citrix products.

(Writer: FISCO analyst Tomoichi Murase)