■ Company Overview of TechMatrix <3762>

(2) Application and Service Business

In the Application and Service Business, systems development, application packages, testing solutions, cloud play, etc. are being developed for specific markets and industries. The target fields are CRM, Business Solutions, SE, and Mainland Education. In the revenue composition for the fiscal year ending March 2024, the CRM field, Business Solutions field, and SE field each accounted for about one-third. The revenue composition ratio for the Mainland Education field, which was entered as a new business in 2021, is still small.

a) CRM Field

In the CRM field, the contact center CRM system/FAQ knowledge system "FastSeries" is provided both on-premise and as cloud play to support companies in improving customer service. The on-premise version has also been transitioning to a subscription payment model for the past three years, and for the fiscal year ending March 2024, about 60% of the revenue will come from recurring revenue. In the CRM system market, it has the top share in packaged products domestically, and Salesforce Japan is a major competitor in SaaS. Additionally, in April 2023, a local corporation, TechMatrix Asia, was established in Thailand, promoting business expansion in the Southeast Asian market in partnership with local companies.

Key partners include Bell System 24 (a subsidiary of Bell System 24 Holdings <6183>), as well as major SIers like NEC <6701> and Itochu Techno-Solutions Corporation, which are implemented in contact (telemarketing) centers and customer support centers of various companies. In the pharmaceutical industry, the "Medicine Consultation Center" promoted by the Japan Pharmaceutical Manufacturers Association (JPMA) has been set up by various pharmaceutical companies, many of which have implemented the company's CRM system.

b) Business Solutions Field

In the Business Solutions field, services are mainly provided for financial solutions, academic and public solutions (support for academic research projects), and Business Intelligence (BI) solutions. In financial solutions, support is provided for the financial transaction integration management system "ARECCIA" series developed and sold by Alexis FinTech for financial institutions, as well as for the introduction of financial product evaluation and analysis, ALM risk management tools from overseas major vendors, and maintenance and operation. In academic and public solutions, development, operation, and maintenance of issue management systems for research topics and DOI registration and management systems for papers and research data are carried out for national research and development agencies (Japan Agency for Medical Research and Development, Japan Science and Technology Agency, etc.). Additionally, the consolidated subsidiary Casa Real is engaged in system development related to internet services, educational training services for engineers, and consulting services for cloud-native development.

DOI (Digital Object Identifier) is a permanent identifier assigned to documents on the internet. It is often used in the field of academic papers.

c) Software Quality Assurance Field

In the SE field, it provides BEST Inc development support tools (such as testing tools) and Consulting Services that support the entire lifecycle during the development process aimed at improving software quality and productivity of development processes. Among the products handled, Parasoft's software testing tools hold a high Share in the field of embedded software development.

Rather than using series products from the same manufacturer, it means to select the best products even if the manufacturers are different, and to use them in combination.

The targets include digital appliances, information communication equipment, Automobiles, Medical Devices, robots, and other devices where Software is embedded, as well as mission-critical Software such as financial systems. In terms of market-specific revenue, the Automotive industry, which has strong development demand for various onboard systems such as AD (Self-Driving Cars) and ADAS (Advanced Driver Assistance Systems), car navigation, and powertrains, is the largest. In recent years, there has been a focus on providing development support tools on a cloud infrastructure as SaaS, and by the fiscal year ending March 2024, about 80% of revenue will come from stock revenue.

d) Education Field

As a new business, the provision of the cloud play "Tsumugino" for educational institutions began in April 2021. It is a platform service that implements a school support system based on a school communication platform developed to support children's proactive and dialogic deep learning. It was developed utilizing the accumulated know-how in building cloud play and information Security systems. Features include the ability to support multi-platform, being designed as a platform where children are at the center but also allowing participation from parents and local residents, and robust information Security measures based on the know-how cultivated in the information infrastructure business. In particular, information Security measures are an important evaluation point for educational institutions and are considered a differentiating factor from competing services. Since the start of the business, it has been introduced in private secondary schools with advanced educational philosophies oriented towards active learning as well as some national and public schools.

(Written by FISCO guest analyst, Jo Sato)