Strengths: Bridge International<7039> faces competition in each of its services, but it can differentiate itself from competitors by offering end-to-end services from strategic planning of revenue processes to IT tool support that specializes in sales and marketing. Its main outsourcing service adopts a client-exclusive system, making it possible to change to the optimal business design based on the client's sales environment. As the client's business expands, the company can also expand its contract and transaction size. Moreover, the company focuses on quality, not just expanding business as the market grows, focusing on enhancing the reliability of client companies. As a result, the company has a low termination rate and a high continuation rate. We believe that this has enabled the company to successfully capture new demand as existing companies expand their business.
The company provides services that combine the three strengths of "strategic partnerships with NEC", "abundant knowledge of ICT", and "wide-ranging financial solutions". NEC Capital Solution <8793> was established to handle sales financing functions for NEC products and has been growing in partnership with NEC. The company's customer base is mainly government agencies and local governments, which is one of its characteristics, given its history of growth with NEC. Also, ICT equipment accounts for nearly 80% of the execution amount of lease contracts (execution amount by model for the fiscal year ended March 2024) so it has a wealth of knowledge about ICT. Therefore, not only leasing, but also services utilizing a wide range of expertise, including the procurement, introduction, and operation management of ICT equipment, are being offered. The need for services that provide for lifecycle management is increasing as ICT equipment, which undergoes rapid technological innovation, has a higher frequency of updates compared to other equipment. In addition, the company has a subsidiary, Captic & Reboot Technology Services Co., Ltd., which handles peripheral businesses related to ICT products, such as ICT equipment kitting (setup work performed when introducing personal computers, etc.), sales of ICT-related equipment after the lease contract has expired, and so on, providing one-stop support for ICT products (as previously mentioned, "PIT Managed Services").
Furthermore, one of the company's strengths is the provision of a wide range of financial solutions. It provides finance programs that take the perspective of manufacturers and sales companies, such as vendor finance, which is a method in which manufacturers and sales companies conduct product sales including payment methods, etc. It also enhances its service menu as a financial services company, including business loans to companies, liquidity of accounts receivable, fund composition, equity investment, and so on. In addition, Lisa Partners, which is a professional in investment and advisory services, provides solutions from both sides of support from a fund viewpoint and advice from a professional perspective on finance and real estate. As Lisa Partners has a network with regional financial institutions and the company's main customers are government agencies, local governments, and corporations, the company believes that growth is possible through the expansion of its business domain.
In addition, the company has been working on venture capital fund businesses that invest in venture companies since 2012. In 2012, it established the "Innovative Venture Investment Business Limited Liability Partnership" which invests in venture companies with strong technology, and in 2016 and 2018, it established the "Value Co-creation Venture Limited Liability Business Partnership" and the "Value Co-creation Venture 2nd Limited Liability Business Partnership" which invest in venture companies that solve social issues. Multiple IPOs and exits through M&A have been realized to date. In addition, by steadily accumulating knowledge and experience through venture investment, the NVC1 fund, which was established in February 2022, focuses not only on the solution-service sector that solves social issues, the advanced technology sector that supports materials and devices, but also on new areas that contribute to digital transformation (DX) and addressing climate change.
(Writer: FISCO analyst Tomoichi Murase)