■ Overview of SIG Group ＜4386＞

1. Business Overview

The company operates as an independent system integrator, providing comprehensive services from system planning, proposal, development, construction, to operation in the system development business, and offering centralized IT infrastructure solutions and Security services in the infrastructure and Security services business, actively expanding its operations through M&A.

The subsidiary SIG is involved in system development and infrastructure and Security services, Y.C.O. focuses on building and operational support for financial accounting systems primarily for independent administrative agencies, national universities, and public interest corporations, and Act Information Service conducts system development and system engineering services mainly for NEC Corporation ＜6701＞. The company you and I solutions, consolidated from the fiscal year ending March 2025, will be involved in system development, construction, and operation (with approximately 70% of revenue coming from the infrastructure and Security services business and about 30% from the system development business) and has been certified as an Excel partner by Hitachi Solutions. Additionally, A Creation, which is expected to become a wholly owned subsidiary in March 2025, will develop system development, maintenance, and operation with a focus on sales support systems for pharmaceutical companies, EC site system development, and embedded software development as core areas.

The trends in sales by business segment and their composition ratios over the past four fiscal years (from March 2021 to March 2024) and in the interim period of March 2025 are as follows. The composition ratio of revenue has generally trended with the system development business accounting for slightly over 70% and the infrastructure and Security services business for slightly over 20%. In the fiscal year ending March 2024, the system development business accounted for 75.3%, and the infrastructure and Security services business accounted for 24.7%. In the interim period of March 2025, the system development business accounted for 68.1%, and the infrastructure and Security services business for 31.9%. The inclusion of you and I solutions in consolidation has increased the composition ratio of the infrastructure and Security services business.

The system development business has a wealth of experience in public-related projects.

2. System Development Business

The system development business provides comprehensive services tailored to various industries and sectors, including public agencies, local governments, service industries, manufacturing, distribution, and finance, from proposal planning based on the client's business content and objectives to hardware and software selection, system development, construction, and operation. It has extensive development experience and know-how, particularly in the following fields.

1) Development of systems for the public utility sector

Development of personnel and payroll systems for designated cities, mutual aid and pension systems, and health insurance systems.

2) Development of embedded systems for industrial robots

Design, development, and maintenance of production line control systems for electronic component mounting equipment and production planning and management systems, support for system development of semiconductor manufacturing equipment, etc.

3) Development of telematics services that provide various information to on-board devices utilizing mobile communication technology

A communication (Telecommunications) and information processing (Infomatics) combined, next-generation information provision service for major Auto Manufacturers, including the communication system between in-vehicle devices and Datacenter, as well as the system development for contractor-specific web services.

4) Development of automated certificate issuance systems for the educational field

Development of automated certificate issuance systems with certificate application, issuance, and various payment functions to support the efficiency of university administrative systems, as well as development of My Number card-compatible automated certificate issuance machines aimed at digitizing campuses, etc.

5) Support for system development in the Energy sector.

Support and maintenance for the reception and transmission system for transmission and distribution operators related to the liberalization of Electrical Utilities in April 2016, and the building of a Proof of Concept (PoC) for Human Machine Interface (HMI) aimed at power generation operators.

6) Support for system development related to Real Estate operations.

Development of a document management system aimed at streamlining contract-related documents (such as contracts and important matters explanation documents) in the Real Estate sector.

7) Development support for Internet service providers.

Development, maintenance, and operation of systems associated with various services provided to corporate and individual clients by Internet service providers, development support for next-generation brand services compatible with 5G, and application development related to the enhancement of Security measures for cloud play.

8) Support for system development related to FinTech (a blend of Finance and Technology) deployed by IT companies in the financial sector.

Support for the development of a life insurance sales support system.

(Authored by FISCO guest analyst Masanobu Mizuta)