Exmotion <4394> is a new style of consulting firm that solves the challenges of embedded software (ET) development, with automobiles at the forefront.

With a focus on consulting business, Exmotion provides a wide range of support by leveraging the knowledge gained in the field of software development and expanding into the talent development business, including subsidiaries. With consultants who have extensive experience and expertise in many technologies that are effective in software development, Exmotion is a consulting company that provides one-stop solutions from proposal to problem solving, mainly in the automotive industry. It has a strong track record in the automotive field and has supported the introduction of development technologies mainly in upstream processes for many areas of in-vehicle systems. In addition to the conventional business model where consultants provide direct support, Exmotion is expanding content services that are not constrained by the number of consultants, in order to meet the growing demand for in-house development of ET and build a stable revenue base.

For the first half of the fiscal year ending in November 2024, the cumulative revenue was 586 million yen (up 9.8% from the same period last year) and operating profit was 25 million yen (down 71.2% from the same period last year). While the sales scale expanded and increased revenue due to the contribution of consolidated subsidiary bubo, there was a decrease in profit due to the increase in costs such as increased development investment for the new AI service "CoBrain" and recruitment expenses, as well as goodwill. However, in the major automotive-related customers, we have secured approximately 80% of orders for the full-year consolidated performance forecast because demand continues to be strong. The full-year performance forecast expects sales of 1,258 million yen (up 13.9% from the previous year) and operating profit of 136 million yen (up 3.8% from the previous year).

The company's customers include major domestic automobile manufacturers such as Toyota Motor <7203> and Nissan Motor <7201>, as well as suppliers such as Denso <6902> and JTEKT <6471>, and it has also built a customer base in various fields such as motorcycles, healthcare, and industrial equipment. In its future growth strategy, Exmotion will strengthen solutions to realize a software-first approach, which now accounts for 30% of sales, in addition to solutions that solve traditional large-scale and complex projects. It will also focus on supporting the digital transformation (DX) in the automotive industry and expand support to a wider range of fields and customer segments based on the knowledge and experience gained there. Furthermore, Exmotion will accumulate the knowledge gained from its consulting business as knowledge and connect it to stock businesses such as training, online education, and AI-generated tools. The number of members of the online learning service "Eureka Box," which incorporates the knowledge of consulting, is already increasing. With a dividend yield of over 2.5%, it is worth noting whether top-line double-digit growth will continue in the medium to long term along with customer expansion.