■Overview of NCD<4783>'s Business

1. Business Overview, Characteristics, and Strengths

The company operates as a total solution provider, engaging in IT-related system development (System Integration) and Support & Service business (Service Integration), as well as Unmanned parking systems business (Parking Solution) utilizing IT solution know-how, forming the three pillars of its management. With 57 years of rich experience as an independent entity, it prides itself on high technology and high-quality services, the latest information technology, and extensive application knowledge, providing total solutions in a one-stop manner.

The system development business primarily focuses on the development and maintenance of core business systems.

2. System Development Business

The system development business develops system construction solutions, infrastructure construction solutions, package solutions, etc., primarily focusing on core business systems, contracting for planning, design, development, construction, testing, implementation, maintenance, and operation for medium-sized enterprises and large enterprise groups. Based on 57 years of rich experience in large and small system construction, it establishes its unique system development standard NS-SD (NCD Standard System Development) and project management standard NS-PM (NCD Standard Project Management) to ensure stable quality in system development.

The package solution provides solutions for companies wanting to implement systems in a short period and at low costs, such as medium-sized enterprises by offering the implementation, customization, and operational support of strategic partner companies' package software. Particularly, it specializes in constructing systems that implement applications from Oracle Corp and the core business system "Bunbai Series" from OBIC Business Consultants (OBC)<4733>. Regarding OBC's "Bunbai Series", it has the largest dedicated team for implementation among OBC partners, and in August 2024, it was recognized for its sales activity achievements for the 2023-2024 season and received the "Regional Excellence Award" at the "OBC Bunbai Award 2023-2024."

In the cloud field, it has adopted AWS (Amazon Web Services) from Amazon (Amazon.com), the largest public cloud vendor, to construct and accumulate operational know-how for the foundation of its bicycle parking business core system, while also providing it as a service utilizing AWS solutions. As a certified partner of Salesforce.com (Salesforce) in Japan, it has numerous achievements in supporting the introduction of the world’s No. 1 cloud CRM platform "Salesforce". Additionally, it provides original tools it developed as a subscription service for "Salesforce" (task management tool "SMAGANN", report creation tool "Smart Report Meister", screen creation and data visualization tool "Smappi"), among other related package tools. It also supports the global expansion of Japanese companies, providing ERP package implementation support for Business Engineering<4828>'s globally compatible ERP "mcframe GA" and China’s No.1 ERP "Yonyou U8".

In October 2023, the company obtained the "AWS Solution Provider" certification and signed the AWS Solution Provider Program contract. Moving forward, the company plans to develop its business with Amazon "AWS" as a pillar of packaged solutions alongside OBC's "Obligo Series" and Panasonic Group's workflow system "MAJOR FLOW."

The Support & Service business primarily focuses on outsourcing maintenance and operations.

3. Support & Service Business

The Support & Service business develops service integration, contracted in the form of outsourcing services for the maintenance and operations of clients' systems and applications, including application maintenance and operation solutions, infrastructure maintenance and operation solutions, and business support solutions.

A specialized group of engineers capable of addressing complex failures in network system construction and maintenance is providing comprehensive support as an outsourcing service for maintenance and operations on behalf of clients' system operation departments. This is achieved through 24/7 remote monitoring and service desk support coordinated between the two MSC (Managed Service Center) locations of the headquarters and Nagasaki, realizing one-stop technical support for the maintenance and operations of systems and applications. Support for the introduction of cloud services such as AWS and Microsoft Azure is also provided.

The company is working to reduce clients' IT infrastructure operation management costs by building operational standards NS-OS (NCD Standard Operation Service) compliant with ITIL (Information Technology Infrastructure Library). The advantage of cost-efficiency is also a strength due to remote monitoring linked to clients' lines. For major life insurance companies, onsite support services are provided along with help desk support services and infrastructure support services, which support clients directly.

The company is characterized not only by maintaining and operating systems built for clients, utilizing rich knowledge gained from extensive experience, quick responsiveness, flexible service capabilities, and comprehensive support; it also undertakes the maintenance and operation of systems and applications built by other companies. Additionally, in Support & Service business locations, measures for disaster response and business continuity planning (BCP) are being strengthened in a high-security environment.

The IT-related business has built a strong customer base with major reputable clients.

4. The IT-related business has built a solid customer base with a stock revenue ratio of over 80%.

In the IT-related business (system development and support & service), a robust customer base has been established with major excellent companies such as large life and non-life insurance firms, major energy companies, and major manufacturers, featuring many long-term continuous trades. The system development industry generally has a structure where medium-sized companies often act as secondary or tertiary contractors for large SI (system integrator) firms, but in this case, over 80% of the transactions are direct trades with end users (primary contracts). This can be considered a figure indicating the company's high technical and quality capabilities. Additionally, due to the many long-term continuous trades with large excellent companies, stock revenues from maintenance and operation of developed and constructed systems are also accumulating. The revenue composition ratios for flow (system development/construction, etc.) and stock (system maintenance/operations, etc., including development from other companies) in the IT-related business are 17% for flow and 83% for stock in the March 2024 period, and 19% for flow and 81% for stock in the first half of the March 2025 period, indicating a stable revenue structure with a stock revenue ratio of over 80%.

(Authored by FISCO guest analyst Masanobu Mizuta)