Performance Trends of SIG Group <4386>
2. Trends by Business Segment The sales revenue of the system development business was 520.2 million yen, which exceeded the plan by 30.2% from the previous period. Some (related to electronic component mounting equipment) budget cuts for manufacturing customers in SIG, and occurrence of unprofitable projects in Y.C.O. were negative factors, but growth in service sectors in SIG, increase in DX projects at Act Information Service, additional orders due to the expansion of personnel system in public and energy sectors, and efforts to raise order prices also contributed. For public sectors, we promoted response to newly-introduced national health insurance standard system project for local governments, expansion of personnel system for tax systems while maintaining the existing system development and maintenance system for personnel salaries, mutual aid, and national health insurance related. For energy sector, we expanded beyond existing projects such as dispatching and meter-reading to development of common infrastructure, system maintenance, and PMO projects utilizing remote personnel outside of the Tokyo metropolitan area. Service sector achieved significant growth from the previous year and plan, as it responded to increasing demands for DX projects and additional orders for system development for general corporations. Quarterly sales revenue trend was as follows: 1st quarter was 1,284 million yen (+44.1% YoY), 2nd quarter was 1,318 million yen (+31.7%), 3rd quarter was 1,264 million yen (+26.8%), and 4th quarter was 1,335 million yen (+21.0%).
The sales revenue of Infrastructure and Security Services business was 170.4 million yen, which exceeded the plan by 19.7% compared to the previous period. It achieved sales growth of about 20% for two consecutive terms. It exceeded the plan in all fields except for public services. Particularly, cloud-related projects significantly increased. Energy sector responded to rapid expansion of demand by shifting personnel from public and financial sectors and utilizing personnel in local bases. Due to temporary decrease in demand, financial sector implemented personnel shift to energy sector. As for service sector, demands for cloud projects increased mainly for maintenance of existing customers and small-scale construction projects. As for security sector, existing sales of products, security system construction, vulnerability diagnosis, etc. are decreasing due to the increase in one-stop service for cloud environment construction, etc. in service sector. Quarterly sales revenue trend was as follows: 1st quarter was 401 million yen (+26.9% YoY), 2nd quarter was 425 million yen (+25.0%), 3rd quarter was 417 million yen (+20.9%), and 4th quarter was 459 million yen (+9.2%).
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(Authored by FISCO guest analyst Masanobu Mizuta)