Medium-Term Business Plan

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Three Years from FY16 to FY18

1. Vision

In May 2016, the Net One Group unveiled a three-year medium-term business plan ending in FY2018. Renewing its commitment to profit growth as the top priority, the Group will pursue autonomic innovation to support sustained growth, aim to boost customer and employee satisfaction, and strive to enhance corporate value.
Under the medium-term business plan, the Group will aim to provide highly practical solutions, develop high-value-added services, and expand its businesses by leveraging its actual experience in adopting ICT systems and corresponding improvement effects. In addition, it will strive to increase productivity by strengthening profit management and enhancing solution sales efficiency, while continuing to improve profitability.

Management policy

The Group has reported its progress toward FY2018 targets

The Group has reported its progress toward FY2018 targets.
2018/04/26 Results for Q4 and FY17

2. Growth strategy

The Group will clarify business domains and solution strategies for its key businesses, aim to shift to a business model that centers on service provision in response to technological trends and challenges, and look to expand cloud and security business while accelerating service business.

Growth strategy: Driving/Initiative incremental business

3. Business strategy

Growth areas are changing from equipment sales to telecom carriers to areas such as the integration of enterprise and public cloud systems, the provision of cybersecurity solutions, and support for work-style innovation. In tandem with higher ICT utilization, demand is starting to increase not only for design, installation, and maintenance services, but also a wide range of other services such as systems operation and consulting services geared toward systems optimization.

Revenue trend by market sector and product category

4. Numerical targets

The Group aims to achieve FY2018 (final-year) revenue of JPY170.0bn, operating income of JPY11.0bn, and an operating margin of 6.5%. It targets revenue growth of JPY24.0bn over three years and looks to expand the market and shift to value-added businesses by pursuing the following four goals: (1) integrate cloud systems for new markets or solutions and expand sales of cybersecurity solutions, (2) attract new customers in the corporate market (medium-sized companies), (3) work with overseas partners and launch businesses that support the operations of Japanese companies in ASEAN regions, and (4) cultivate a market for IIoT (Industrial IoT) solutions.

Progress of three-year business plan

5. Priority measures

(1) Key markets

  • ● Cloud system with security

While integrating cloud systems and developing cybersecurity solutions, ensure security for networks that connect clouds, and accordingly support the integration of cloud environments that combine robust security and a high level of convenience.

Cloud system with security

  • ● IIoT market

Leverage network integration technology accumulated thus far in the field of information systems, and move into the network infrastructure business that connects various production lines, paving the way for preventive maintenance of manufacturing plant equipment and the utilization of generated data.

IIoT(Industrial IoT) market

  • ● Global markets

Support the development of ICT infrastructure for Japanese companies that have expanded overseas, particularly in the ASEAN region. In addition, based on the experience of working with local partners in the ASEAN region, consider the development of new businesses in North America and Europe.

Global market

  • ● Corporate market

Develop novel and efficient approaches for new customers such as medium-sized companies, and aim to expand sales of proprietary solutions combined with cloud services.

Corporate market

(2) Acceleration of service business

With a view to achieving sustained growth and boosting customer satisfaction, the Group will redefine all of its business activities as “integrated service business”, and aim to shift to a business model built on services that fully coordinate the ICT infrastructure of customers. As a way to support the lifecycle of entire integrated cloud systems, it will develop an SD-HCI framework, and strengthen our approach for moving from systems operation and optimization to consulting services in accordance with the next medium-term plan, and thus aim to secure ongoing business.

Note: SD-HCI stands for Software Defined Hyper Converged Infrastructure.

Define all activities of the NetOne Group as Integrated Service Business

(3) Rigorous profit management and development of human resources

The Group will move forward with the visualization of profits derived from projects using internal core systems, and enhance the accuracy of its budget controls. Moreover, it will streamline its business processes to increase the time spent interacting with customers, and promote the acceleration of service business. In addition, the Group will continue to take steps to enhance cloud and security technology, and aim to strengthen its organizational capabilities in line with its strategy.

Profit management / Human resource development