Company Overview

1. Company Overview

Systems Design (3766) is a digital service company supporting customers' information and business efficiency through two pillars: system development business and outsourcing business. Since its founding in 1967, the company has flexibly responded to changes in market environments and customer issues, constantly providing new technology and services to expand its business and establish a system as an sdc group that can solve customers' issues in a one-stop manner. In terms of product structure, 10-30 billion yuan products have operating income of 401/1288/60 million yuan respectively.

The company reviewed its corporate philosophy, corporate vision, and action philosophy in 2022 to further promote change as corporate responsibility for sustainable social growth increases. The slogan was newly established as "Design for the future-achieving a better society through people and digital technology", redefining "Customer First", which has been used as a management philosophy since its founding, as the action philosophy, and making it easier for employees to understand. By using "people and digital technology", it incorporates the idea of providing appropriate and optimal services by discerning where digital technology should be applied and where people should provide services. The corporate philosophy is to "contribute to sustainable social growth with stakeholders", and the corporate vision is to "continue to provide valuable technology and services as a digital service company". The new corporate slogan is an engagement of employees and the company, aiming to integrate employees and the company. To share them with all employees along with the corporate philosophy, corporate vision, and action philosophy, the basic design was solicited internally, leaflets were distributed along with employee ID cards, and each employee can see them anytime and anywhere.

At the same time, the company also reviewed its management policy as follows:

-Enhance transparency and continue to be a fair and sound company based on corporate ethics

-Respond in a timely manner to changes in market environments and customer issues

-As a digital service company, we aim to develop and improve each business and further enhance corporate value by integrating businesses

It is an independent SIer founded in 1967 and has been developing IT business since the dawn of Japan's IT industry. They handle a wide range of business areas from planning, development, and operation of information systems to outsourcing of business, and support various businesses in a total way from the field of IT. They have earned the trust of customers in a wide range of fields such as manufacturing, logistics, telecommunication services, medical care, government offices, and education, without being restricted by specific manufacturers or products, leveraging the strengths of an independent SIer. In October 2024, the company plans to relocate its head office from the current Suginami Ward, Tokyo to Shinjuku Ward.

2. History

The founding year of the company was 1967, and it has been developing IT business since the dawn of Japan's IT industry. They handle a wide range of business areas from planning, development, and operation of information systems to outsourcing of business, and support various businesses in a total way from the field of IT. They have earned the trust of customers in a wide range of fields such as manufacturing, logistics, telecommunication services, medical care, government offices, and education, without being restricted by specific manufacturers or products, leveraging the strengths of an independent SIer.

They have also been advancing into new business areas through mergers and acquisitions in recent years. In 2006, they acquired (Kabu) IDES, which handles system development outsourcing (the entire shares were transferred in 2019). In 2015, they acquired Shared System, which develops and sells application package products such as "HaiSurf" series. In 2016, they acquired Icom, which operates call centers. In 2018, they acquired For, which handles commissioned issuance of ID cards. In March 2024, they formed a capital business partnership with Multisoup, which provides a tool for aggregating and analyzing field information based on location information, iField. They also aim to expand their business area by conducting minority investments that are not subject to the equity method and concluding sales agency contracts for iField.

The largest shareholder of the company is Kawashima Co., Ltd., whose percentage of owned shares relative to the total number of issued shares (excluding treasury shares) is 36.72% (as of March 31, 2024). Kawashima is an asset management company headed by a relative of the founder of P.C.A. (9629), and is also the largest shareholder of P.C.A. (the percentage of owned shares relative to the total number of issued shares (excluding treasury shares) of P.C.A. is 40.97% (as of March 31, 2024). Hiroshi Kumamoto, the current representative director of the company, also serves as an outside director of P.C.A.

There is a business connection between the same company and PCA. The same company undertakes system development orders, manufacturing and distribution of package software, and call center operations from PCA. In addition, the Yamanashi Ryuo Center and Yamanashi Business site of the same company rent some of PCA's land and buildings. The trade performance with PCA as a percentage of the company's total revenue is 925 million yen (11.6%) in March 2021, 975 million yen (11.7%) in March 2022, 1,066 million yen (11.3%) in March 2023, and 1,068 million yen (11.3%) in March 2024.

(Author: FISCO Guest Analyst Shuji Matsumoto)