Oro ＜3983＞ has two main axes: the cloud solution (CS) business (61.2% of first-half sales revenue), which handles the development and sale of cloud-based ERP (integrated core business systems), and the marketing solution (MS) business (38.8%), which provides digital marketing support, etc. In the CS business, we provide 3 products for cloud-based integrated core business systems that promote business processing and information sharing within the enterprise according to the size of the enterprise. The main product “ZAC” is provided to small and medium-sized enterprises with 50 to 300 employees, and has been introduced by a cumulative total of over 1,000 companies, mainly in the software/IT service/advertising industry (about 70%). It supports improving the efficiency of various business processes such as sales, purchasing, and attendance within an enterprise, and is equipped with functions (approximately 2,000 parameters) to respond to functions and business practices required in specific industries. Also, it has the characteristic that the product evolves continuously through automatic version upgrades. The MS business provides a support model for large enterprises that continuously produces results through both planning and execution support for effective marketing tactics. Major customers include Aeon Group and Nissan Motor Group.
Cumulative sales revenue for the first half of the fiscal year ending 2024/12 reached 3,815 million yen, up 16.3% from the same period last year, and operating profit reached 1,309 million yen, up 11.4% from the same period last year. Sales revenue in the CS business remained soft compared to the full-year plan, but growth in stock earnings was steady, and it seems that the second half of the fiscal year will recover customized sales through solving business issues for existing customers. The number of contract licenses is also steadily increasing due to the acquisition of new customers and expansion of transactions with existing customers. Meanwhile, in the MS business, both sales revenue and operating profit remained steady, and it seems that new customer acquisition continued to improve in the first quarter, centering on projects related to web production. Full-year sales revenue is expected to increase 17.0% from the previous fiscal year to 8,229 million yen, and operating profit is expected to increase 9.2% to 2,782 million yen.
The CS business is currently strengthening proposal capabilities and strengthening cooperation with sales agents with the aim of expanding the scale of customers and increasing the number of new contractors. The number of customers is steadily increasing by strengthening the proposal system for large customers and reviewing proposals to small and medium-sized enterprises. However, there are currently about 44,000 domestic target companies, and there is still plenty of room for customer development, so it seems that stock sales can be expected to expand through customer acquisition in the future. In addition, localization of overseas tools and domestic sales agency business are growing steadily. In the MS business, we are continuously strengthening investment in human resources. As recent stock prices continue to be flat, I would like to keep an eye on whether top-line 2-digit growth continues, and whether stable growth in both businesses continues.