Company Overview

1. Business Overview

Unirita <3800> develops, sells, and supports packaged software and data utilization solutions for IT system operation management for a wide range of industries including Finance and Manufacturing, as well as providing consulting and outsourcing services related to these businesses.

Since its founding, products for mainframes focused on financial institutions and major enterprises have been a stable source of revenue, boasting high profitability. In the past, by contributing to the automation and efficiency of IT system operations, such as customer job management and report management, the company has also achieved steady growth in performance.

In response to external environmental changes such as the progression of system openness and downsizing, the spread of cloud technology, and the utilization of Big Data, the company has expanded its business areas not only in fields contributing to the automation and efficiency of IT system operations (such as productivity enhancement) but also in areas that directly contribute to enhancing the corporate value of customers (such as market expansion and improved competitiveness). Particularly, the flow of digital transformation (hereinafter referred to as DX) is accelerating not only in the information systems departments of companies but also in the service delivery models of business units, establishing a business system to respond to the DX needs of customers from both the offensive and defensive aspects of IT has become the company's strength. Recently, the company has also been working on service-based models of its own business model (transitioning to a subscription-based revenue model providing its own services through cloud utilization) as well as solving social issues using digital technologies.

The business segments are divided into three categories: "Product Services," "Cloud Play," and "Professional Services." While the revenue composition ratio of "Product Services," the mainstay since founding, is approximately 39.4%, it serves as a source of income due to its high operating margin. The future strategy is to significantly grow in the rapidly expanding field of "Cloud Play."

The overview of each business segment is as follows.

(1) Product Services

Products related to system operations (automation, forms, etc.) are provided in both on-premises and service models. Additionally, since its founding, it has been expanding sales and support for products aimed at mainframes, mainly for financial institutions, life and non-life insurance, and major Manufacturing companies (operation management of core business systems). The main products include the job management tool "A-AUTO" (automation business) and the "Marutto Form Cloud Service" that supports form business comprehensively.

On-premises type means installing and operating information systems such as servers and Software within facilities managed by users.

"A-AUTO" is a job management tool for batch processing that integrates the management of jobs from systems operating on different platforms and realizes automatic execution control.

A service that comprehensively supports the cumbersome form output operations of customers (from printing and mailing forms to digitization and web distribution).

(2) Cloud Services

The problem-solving areas of service provision are divided into three categories: "IT issues" (IT utilization cloud business), "business issues" (business promotion cloud business), and "social issues" (social cloud business), with services tailored to each characteristic. In the IT utilization cloud business, services such as "LMIS" (service management platform), "infoScoop × Digital Workforce" (remote work promotion service), and "Marutto Data Conversion and Processing Cloud Service" (data conversion, processing, and operational maintenance service) are provided for corporate information system departments. In the business promotion cloud business, services like "DigiSheet" (attendance management service for staffing agencies), "Rakuraku BOSS" (integrated solution for business management), "CommuRing" (service supporting inter-company communication), and "Gro" (customer success launch and growth support service) are positioned as future growth areas for corporate business and management departments. Additionally, in the social cloud business, "Community MaaS" is promoted to local governments and Public Transport organizations to support the realization of public transportation and regional revitalization.

A service management platform centered around the company's service desk functions (a contact point for supporting user inquiries on system malfunctions and technical support).

A platform that combines various public transportation services and other mobility services optimally, allowing for comprehensive route searching, booking, and payment services through the service called MaaS provided by the subsidiary Uni-Trand Co., Ltd., which facilitates services that encourage the purpose of mobility and uses the data collected from those services.

(3) Professional Services

Focusing on group companies, one-stop services are provided ranging from consulting utilizing expertise in data and service management to system implementation support, system integration, and outsourcing.

The number of customers (number of implementations of the company's products) exceeds 1,700, with many implementations observed from major corporations. In terms of revenue composition by Global Sectors, a wide range of industries are covered, but the ratios for Manufacturing, Retail & Distribution, and Finance & Insurance are high.

While sales channels were traditionally focused on direct sales, recent efforts have been made to enhance solution provision capabilities through collaboration with partner companies (Dealers) (promotion of a collaborative model), surpassing 100 partner companies. Additionally, there is a focus on web marketing, and a system for generating projects from web marketing has been established.

The main consolidated subsidiaries include BSP Solutions Co., Ltd., which engages in system operation consulting, and Bishi Software Technology (Shanghai) Co., Ltd., which serves as a sales base in China, in addition to Hue-Up Technology Co., Ltd. (services for the human resource business industry), Data Research Co., Ltd. (consulting business related to data utilization), Uni-Trand Co., Ltd. (Mobility IoT services for local Public Transport), Unirita Plus Co., Ltd. (strengthening sales to customers in the western Japan Region and collaboration with partner companies), Infinite Co., Ltd. (system integration business, development and sales of proprietary package software), and Unirita SR Co., Ltd. (provision of system operation agency services and technical support services), totaling eight companies.

(Written by Fisco Guest Analyst Ikuo Shibata)