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.

Pacific Net <3021> is the only company that provides IT equipment introduction, operation management, cloud, and security in a "subscription" model, comprehensively supporting the information systems of companies until appropriate disposal. Since its founding in July 1988, it has been supporting companies' IT strategies and information systems departments, and has accumulated experience and know-how through transactions with over 15,000 companies. As competitors, IT trading companies, leasing (finance), and rental businesses are mentioned in procurement and introduction. In operation and maintenance, there is competition with some rental companies, and in recovery, data erasure, reusing and recycling, there is competition with reuse businesses. Among them, the company's strength lies in the fact that it provides procurement, introduction, operation and maintenance, recovery, data erasure, reuse, and recycling as a one-stop service in the IT subscription business and ITAD business. Furthermore, based on its past achievements and know-how, it expands its services to meet the diversified customer needs in the continuously evolving IT society, enabling total workload reduction services and providing many cross-selling and upselling opportunities.

The company converted its long-standing rental business into the new business model of subscription and launched it as "Marutto 365" in November 2018. The ability to quickly deploy services to address challenges faced by corporate information systems departments, such as the predicted technological innovation and DX, and IT talent shortages, is also a strength backed by the company's track record and know-how. After the PC rental business in the IT subscription business ended, the company resells the returned PCs as reused products in the ITAD business. The synergy between the IT subscription business and the ITAD business, as well as the company's ESG efforts such as reducing CO2 emissions, are also major strengths.

The IT equipment specialty online auction platform "PCNET Auction" was launched to build a sound net auction platform and further promote reuse in the IT equipment field, contributing to the profit improvement of the ITAD business. The number of listings on "PCNET Auction" is approximately 18,000 per year, with a membership of over 200 companies. The auction is normally held twice a month in real-time, and is also live-streamed on YouTube. It is expected that the number of listings will increase further with the expansion of listings from all the company's locations and the implementation of listing agency services for corporations and local governments. In addition, since the equipment being auctioned is managed by the company, there is a high sense of reliability in terms of product quality, and there is a considerable potential demand. We expect further growth in distribution volume and an increase in profit contribution to the ITAD business. Furthermore, the company has obtained ISO 27001 certification, and its security system has been highly evaluated by customers who place importance on security management, such as government agencies and major banks.

In terms of services, the company provides not only cost reduction but also convenience through one-stop provision from introduction to operation, maintenance, and disposal. In addition, in the collection and recovery of used IT equipment, the company is the only one in the industry that has technical centers at all branches, enabling nationwide support. The Tokyo Technical Center, which has the largest area in the Greater Tokyo Area, is equipped with 24-hour manned security, multiple security zones, and access control, providing the highest level of security environment in Japan.

(Writer: FISCO analyst Tomoichi Murase)