Minori Solutions Co., Ltd. (3822) |
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Company |
Minori Solutions Co., Ltd. |
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Code No. |
3822 |
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Exchange |
TSE 1st Section |
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Industry |
Information and communications |
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President |
Yuji Morishita |
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Address |
Shinjuku NS Building, 2-4-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo |
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Year-end |
March |
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URL |
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*The share price is the closing price on November 9. The number of issued shares is obtained by deducting the number of treasury stocks from the number of shares issued at the end of the latest quarter. ROE, BPS are actual results at the end of the previous term.
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*The forecast is from the company.
This Bridge Report presents Minori Solutions's fiscal year March 2018 earnings results and fiscal year March 2019 earnings estimates. |
Key Points |
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Company Overview |
Minori Solutions business is supported by two pillars: development of software and operation/management of systems. Minori Solutions sells hardware, general-purpose packaged software, etc. for developing software. JSC Co., Ltd., which specialized in the development and operation of resident systems mainly for financial institutions, such as banks and credit-card companies, and E-Wave Co., Ltd. fully undertook the development of systems in a broad range of fields, including manufacturing, transportation, and distribution, merged into Minori Solutions Co., Ltd. in Apr. 2010 for a new beginning. The "Minori" in the corporate name represents an ear of grains, means "bearing fruit," and was infused with the hope that all employees will join hands to improve its corporate value further and produce good results as the "Minori" for clients, stakeholders, and employees, under the new organization after the merger.
【Corporate ethos and rules of conduct】
Corporate ethos
Through the use of our information technology, we will contribute to the creation of an affluent and fruitful society by growing, taking on challenges and always having high ambitions.
Rules of conduct
1. Ensure trust: We will observe relevant laws and regulations, ensure fair transactions, protect the confidentiality of information on clients, follow the basic rules for the proper management of personal information, etc., and execute fair corporate activities.
2. Coexist with clients: We will make continuous efforts to maintain and improve reliable relationships with clients, and aim to create the prosperity of clients and the growth of our company.
3. Continuation of self-reform: We will always be ambitious, and try to reform ourselves by taking on challenges to grow.
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Fiscal Year March 2018 Earnings Results |
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Progress of Mid-Term Management Plan (Term Ending March 2018 ? Term Ending March 2021) |
With its management goal of thoroughly pursuing the "Minori (harvest)" of three stakeholders, including the clients, shareholders, and employees, the company has drawn up the following four basic strategies for attaining the management goal: "business administration with added value," "improvement of the Minori brand," "Attractive company with a comfortable working environment (healthy management and work-style reform)," and "simple & speedy (management with swift decision-making)."
Management goals
・ A company that contributes to growth of clients
・ A company that satisfies the expectations from shareholders through sustainable growth
・ A company that takes pride in itself and creates its own future
Basic strategies
・ Business administration with high added value
・ Improvement of the Minori brand
・ Attractive company with a comfortable working environment (healthy management and work-style reform)
・ Simple & speedy (management with swift decision making)
Priority policies
Regarding the strategy of business administration with added value, the company will break new ground and boost the market value of its existing businesses using its strengths, with the aim of making a shift from the labor-intensive management to the high value-added one. It strives to achieve sales of 20 billion yen and an operating income of 2 billion yen as a goal for the term ending March 2021 and raise operating income ratio, which is currently around 8%, to 10%.
The following four items have been adopted as priority policies: creation of high value-added businesses using new technology, such as "cloud computing," "IoT," "big data analysis," "AI," and "Fin Tech," provision of a comprehensive solution service through Business Process Outsourcing (BPO) and Application Management Outsourcing (AMO), expansion of the amount of transactions with end users in both the existing businesses and new ones, and commercialization of new businesses by promoting intra-venture businesses.
In order to improve the Minori brand, the company will work on expanding its presence in the industry and enhancing its corporate brand, as an Information and Communication Technology (ICT) partner which contributes to growth of customers' businesses and development of the society.
To be known for "Minori, stepping together with clients," the following three items have been adopted as priority policies: enhancement of technological capabilities, quality, organizational power, and thorough risk management (as a company which is well aware of the importance of compliance), promotion of businesses in highly-public fields or ones that lead to contributions to local community as Minori in the society (as a company which displays a positive attitude toward welfare business), and promotion of commercialization of services, tools, and packages developed originally by Minori Solutions (in order to promote the corporate image of "+ONE").
Aiming to become an attractive company with a comfortable working environment (healthy management and work-style reform), the company will endeavor to make an enterprise in which each employee can have a picture of their futures and work healthily with a sense of security, and to develop an organization, in which growth of each employee results in growth of the company, through diversification of human resources and work styles.
The following three items have been adopted as priority policies: healthy management, diversity management (by augmenting the number of women in administrative posts and promoting globalization), and a company where employees thrive through diverse work styles (work-style reform).
With regard to the strategy of simple & speedy (management with swift decision-making), the company will connect the employees and the manager together more closely so that behavior of each employee contributes to development of the company, because it believes that simplification of every business and task will result in time-saving.
The following three items have been adopted as priority policies: swift (speedy) decision-making (a self-reliant and strengthened organization), self-reliant behavior by each employee (establishment of working groups), and a simple relationship between the employees and the manager (promotion of the "award system").
Progress
For actualizing business administration with high added value, the company formed an R&D team for the purpose of researching next-generation business, and strived to strengthen the engineering domain (offering CAE solutions in new ways). The development projects utilizing the cloud services of SAP: "SAP®: Cloud Platform" and "SAP®: Business ByDesign" progressed healthily, and the company released its original products, including RPA "MinoRobo" and AI help desk support services. The company's efforts to "develop a comfortable working environment" were highly evaluated, and received three stars in the survey on "Smart Work Management" by Nihon Keizai Shimbun Inc.
The themes of the newly established R&D team are "an interface utilizing smart devices" and "content matching through the extraction of characteristic words and machine learning." Based on this outcome, the company will contribute to local communities with social business (related to disaster information) and offer business streamlining solutions. For offering CAE solutions in new ways, the company will offer consulting services in cooperation with CAE software vendors, utilizing the strengths of the two companies in the fields of manufacturing and engineering CAE, next-generation optimization, electromagnetic field analysis, etc. in addition to structural analysis and fluid analysis, which have been major services of the company since before. As for cloud services, the company delivered "SAP®: Business ByDesign" to Toei Kogyo. Then, Toei Kogyo became able to visualize management information based on the cloud, and outsource the operation of mission-critical systems rather than having such systems by itself. The company was able to meet their request for early installation.
RPA "MinoRobo" is mounted with a user-friendly UI as a solution under the concept of "RPA" for everyday use, so that even a layperson can produce a scenario easily. Just by setting a worker's PC operation as a "scenario," it is possible to automatically process a great deal of routine work in a short period of time. This will save manpower by automating a lot of manual tasks, which costed considerable time, and so it will improve work efficiency significantly. A scenario can be produced without the knowledge of programming, and so workers in charge can configure settings freely according to their tasks.
Topics from the second half of the term ended Mar. 2018
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Fiscal Year March 2019 Earnings Estimates |
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Interview with President Morishita |
We visited their headquarters in Shinjuku, Tokyo, and interviewed President Morishita about the summary of the results for the term ended Mar. 2018 and the outlook for the term ending Mar. 2019.
【Summary of the results for the term ended Mar. 2018】
For the term ended Mar. 2018, both sales and profit exceeded the respective initial estimates, marking a record high.
President Morishita: The start was not good, and some projects were in the red in the first half, but from the second half, we received the favorable amount of orders from mainly electric power-related companies in local areas, such as Fukuoka and Sendai. In Fukuoka, we plan to enlarge our office. In Sendai, the projects for maintaining systems of carriers contributed. The performance of local transactions is difficult to predict because of cut-off error, budget spending earlier than planned, etc., but the transactions in the electric power field last long, and so we can expect good results from the term ending Mar. 2019. Our business in the Kansai region, too, was healthy. Our company has strengths in the manufacturing field, attracting leading and local manufacturers, etc., and there are no significant concerns over the term ending Mar. 2019. In Nagoya, our business scale is small, but profit rate is improving. We are struggling in the Tokyo metropolitan area.
Is your performance in the Tokyo metropolitan area affected by megabanks, etc.?
President Morishita: Our company was founded through the merger between JSC Co., Ltd., which exceled at developing and operating systems with stationing workers in client companies for financial institutions, such as banks and credit card companies, and E-wave Co., Ltd., which engaged in system development based on all-in contracts in a broad range of fields, including manufacturing, transportation, and distribution, in April 2010. In the Kansai region, we had clients in various fields evenly, and so we were able to realize the mutual complement between clients and resources after the merger. In the Tokyo metropolitan area, it took time to fuse the financial domain, which was overwhelming in the volume of transactions, and other businesses, and it was difficult to bring out synergy.
Is that the reason why you reformed your organization in April 2018?
President Morishita: We positioned the solution sections, which had managed business divisions, under Eastern Japan Business Group and Western Japan Business Group. Under Eastern Japan Business Group, we established the solution 1 section, which manages the financial innovation division, the business solutions division, the web solutions division, the Sendai development division, and the Matsumoto development division, the solution 2 section, which manages the IT service division, the core solutions division, the financial solution 1 division, and the financial solution 2 division, and the sales & marketing section, which carries out cross-sectoral sales activities, along with the above mentioned divisions. Previously, individual divisions submitted proposals, but they were incorporated into the marketing section. From now on, we hope to increase orders by taking full advantage of managerial resources of the two groups and 9 business divisions and producing synergetic effects.
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Conclusions |
The earnings forecast for the term ending Mar. 2019 is conservative, but there are many favorable factors, including the CAE solution based on the collaboration with SCSK, RPA "MinoRobo," which is highly evaluated because it is easy to install and use, and the support for the installation of "SAP®: ByDesign," which is conducted by only four companies in addition to Minori Solutions. All of them will increase its client assets, and form the foundation for medium/long-term growth, although their contribution to short-term earnings is not significant. In addition, it seems that its business in the Tokyo metropolitan area, where the effects of the merger are still to be exerted, has significant growth potential. We should not demand immediate results, but we would like to expect the outcomes of their efforts to reform their organization and solve problems. We would like to pay attention to the above three businesses and how they will explain the progress of their business at the session for briefing results for the first half in November.
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<Reference: Regarding corporate governance> |
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This report is intended solely for information purposes, and is not intended as a solicitation for investment. The information and opinions contained within this report are made by our company based on data made publicly available, and the information within this report comes from sources that we judge to be reliable. However, we cannot wholly guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration.Copyright (C) 2018 Investment Bridge Co., Ltd. All Rights Reserved. |
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