results for the 3 quarter of 33 business period...continuing transformation to "next-gen. it...

0 Copyright (c) 2017 TechMatrix Corporation. All rights reserved.

SCSK株式会社

2017.2.20a

Results for the 3rd Quarter of 33rd business period

TechMatrix Corporation Februay 17th, 2017

(Fiscal Year Ending March 31st, 2017)


Contents

1.Business Highlights for the nine Months of 33rd Business Period

2.Progress of the Medium-Term Management Plan "TMX 3.0" and Outlook for 33rd Business Period

3.Topics of Business activities

4.Business Model

5.Market Conditions for our business


SCSK株式会社

Business Highlights for the nine Months of 33rd Business Period


SCSK株式会社

Net sales ¥15,689M Year on year up

4.0%

Operating income ¥1,004M

Year on year up 29.7%

Ordinary income ¥986M

Year on year up 26.9%

Profit attributable to owners of parent

¥618M Year on year up

38.2%

The highest consolidated net sales, and profits ever recorded in the nine months

Increased revenue and profit by solid sales of security-related businesses and contribution of subsidiary companies' business performance

(¥ million)

15,079 15,689

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

3Q ofFY 03/16

3Q ofFY 03/17

774

1,004

0

200

400

600

800

1,000

1,200

3Q ofFY 03/16

3Q ofFY 03/17

777

986

0

200

400

600

800

1,000

1,200

3Q ofFY 03/16

3Q ofFY 03/17

447

618

0

200

400

600

800

1,000

1,200

3Q ofFY 03/16

3Q ofFY 03/17

(¥ million) (¥ million) (¥ million)

Business Highlights for the nine Months of 33rd Business Period (Consolidated)


SCSK株式会社 15,079

15,689

3Q of FY 03/16 3Q of FY 03/17

390

219

774

1,004

3Q of FY 03/16 3Q of FY 03/17

△9

239


Net Sales (¥Million)

Application Services Business

Information Infrastructure Business

Operating income (¥Million)




SCSK株式会社

◆Information Infrastructure Business Year on year

Load balancers

Security-related products Business for governments and public agencies (Direct)

Managed Security Service (MSSP)

Storage solutions

CROSS HEAD & Okinawa Cross Head

◆Application Services Business Year on year

Internet Service field (Including CASAREAL)

Software Quality Assurance field

Healthcare field (Including Ichigo)

CRM field


Net Sales

＋10% and over +5% ~ +10% within △10% under △10% within +5%

https://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJHM7NTX-MgCFcUVpgodz_UHBA&url=https://pixta.jp/illustration/1960584&psig=AFQjCNEe1QT4RKkFrEzZq95x6EEzmuHHrA&ust=1446791664774729

















SCSK株式会社

0

100

200

300

400

500

600

700

FY 03/13 FY 03/14 FY 03/15 FY 03/16 FY 03/17

3Q of FY03/17: The number of new bookings is about 100


（facility）

about 50

about 150

about 300

about 450

about 600


SCSK株式会社

Phishing

Targeted mails

Ransomware

DDoS attacks

＜Recent developments in cyber security＞

March 2015 MIC: Security guideline December 2015 METI: Cybersecurity Management Guidelines

Security cloud for Local government Resilience and sanitization for security （The social security and tax number system、LGWAN、Internet）

National center of Incident readiness and Strategy for Cybersecurity（NISC）

Teleworking

March 2016 METI: Information Security Management Standards (2016 Revised Version) April 2016 Basic Law for Cyber Security (2016 Revised Version)



SCSK株式会社

The amount of bookings remain unchanged from the previous year despite the non-existence of large-scale projects

Stock businesses have steadily grown

13,001 13,157

14,923

17,216 17,203

12,111 12,187

12,979

15,079 15,689 871

610 542

774

1,004

0

100

200

300

400

500

600

700

800

900

1,000

1,100

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

3Q ofFY 03/13

3Q ofFY 03/14

3Q ofFY 03/15

3Q ofFY 03/16

3Q ofFY 03/17

Operating income (¥Million)

Booking and sales (¥Million) Booking and sales / Operating income

Booking Sales Operating income



SCSK株式会社

Information Infrastructure Business: Booking slightly decreased by the non-existence of large-scale projects although security-related businesses were solid. Backlog has increased(9.9%UP)

Application Services Business: Booking and Backlog increased by progress of cloud businesses（5.6%UP /20.5％UP）

11,548 11,219

5,946 6,531

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

3Q ofFY 03/16

3Q ofFY 03/17

Booking Backlog

5,667 5,983

5,076

6,118

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

3Q ofFY 03/16

3Q ofFY 03/17

Booking Backlog

17,216 17,203

11,022 12,650

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

3Q ofFY 03/16

3Q ofFY 03/17

Booking Backlog

(¥ million) (¥ million) (¥ million)


Information Infrastructure Business Application Services Business total


SCSK株式会社

1,431 1,612 1,903 2,212 2,501 2,911 2,217

3,416 3,528 3,805 3,490

3,478 3,726

2,551

29.5% 31.4%

33.3%

38.8%

41.8% 43.9%

46.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 3Q ofFY03/17

Stock Non-stock Stock ration

2,634 2,812 2,909 3,003 3,216 3,669 2,949

2,963 3,470

3,857 3,874

4,777

6,065

4,479

47.1% 44.8%

43.0% 43.7%

40.2% 37.7%

39.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 3Q ofFY03/17

Stock Non-stock Stock ration

(¥ million) (¥ million)

Business Highlights for the nine Months of 33rd Business Period (Consolidated) Stock type sales (Recurring revenue) ratio (non-consolidated)

Information Infrastructure Business Application Services Business

＊In the Information Infrastructure Business, the stock ratio went up due to obtaining maintenance sales from large-scale projects in previous year

＊Application Services Business, the stock ratio went up due to growth of cloud businesses


FY03/2016 3Q of FY03/2017

Current assets 12,091 11,921

Cash and deposits 4,698 4,809

Notes and accounts receivable-trade 3,491 3,092

Other 3,901 4,019

Noncurrent assets 3,627 3,904

Property, plant and equipment 1,028 1,126

Goodwill 229 151

Other 904 1,052

Investments and other assets 1,464 1,572

Total assets 15,718 15,825

FY03/2016 3Q of FY03/2017

Current liabilities 8,064 7,837

Accounts payable-trade 1,063 1,013 Short-term loans payable 350 350

Current portion of long-term loans payable 300 300

Other 6,351 6,173

Noncurrent liabilities 3,687 3,528 Long-term loans payable 2,050 1,825

Other 1,637 1,703

Total liabilities 11,751 11,366 Shareholders' equity 4,005 4,449 Total accumulated other comprehensive income △53 △21

Total net assets 3,967 4,459

Total liabilities and net assets 15,718 15,825


(¥Million) Balance sheet


SCSK株式会社

Progress of the Medium-Term Management Plan "TMX 3.0" and Results for 33rd Business Period


SCSK株式会社

Progress of the "TMX 3.0" and Outlook for 33nd Business Period

Key principle

Continuing transformation to "Next-Gen. IT Service Creator", "Next-Gen. IT Service Provider" through a breakaway from conventional labor-intensive contract business.

Business strategy

Strategic and accelerated promotion of cloud-related businesses

Pursuit of security

and safety

Shareholder returns

Key principle : dividend payout ratio is more than 20% at the end of fiscal year Emphasize an increase in dividends based on profit level Improve the shareholder special benefit plan

Cost reduction for high profitability

Closer ties with partners

Direct sales & government and other public agencies

Strengthen workforce by promotion of diversity

Strengthen company's brand as corporate group

Operation strategy


Continuing transformation to "Next-Gen. IT Service Creator", "Next-Gen. IT Service Provider"

10％

To ¥30Billion

50％

10％

Growth rate of net sales

Business scale may reach ¥25B-30B through M&A and expanded Biz in overseas markets

Stock type sales ratio (Cloud, maintenance, operation and monitoring services)

Challenge to operating income margin of 10%

(¥Million) (¥Million)

15,202 15,279 16,731 17,353

18,417 20,400

22,700 25,100

666

971 1,194 1,118 1,130

1,300

1,700

2,350

0

500

1,000

1,500

2,000

2,500

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

FY03/2011 FY03/2012 FY03/2013 FY03/2014 FY03/2015 FY03/2016(Plan)

FY03/2017(Plan)

FY03/2018(Plan)

Net sales Operatting income

Progress of the "TMX 3.0" and Outlook for 33rd Business Period


Net sales for the first year of the TMX 3.0 exceeded the forecast (net sales UP2.5%, operating income UP6.2%)

(¥Million)

20,400 （TMX 3.0）

22,700 （TMX 3.0）

25,100 （TMX 3.0）

20,920 (Result)

22,300 （Forecast）

1,300（TMX 3.0）

1,700 （TMX 3.0）

1,381（Result） 1,650（Forecast）

2,350（TMX 3.0）

0

500

1,000

1,500

2,000

2,500

18,000

20,000

22,000

24,000

26,000

FY03/2016TMX 3.0/Result

FY03/2017TMX 3.0/Forecast

FY03/2018TMX 3.0

Plan and Result of consolidated Net sales and Operating income

(¥Million)



10,561 11,195 12,044

13,800 13,852 15,400 15,100

17,000 6,170 6,157 6,373

6,600 7,068 7,300 7,200

8,100

0

5,000

10,000

15,000

20,000

25,000

30,000

FY03/13 FY03/14 FY03/15 FY03/16 （TMX 3.0）

FY03/16 （Result）

FY03/17 （TMX 3.0）

FY03/17 （Forecast）

FY03/18 （TMX 3.0）



Net sales

1,017 876 1,029 1,120 1,131

1,320 1,600

176 242 101 180 250 380

750

0

500

1,000

1,500

2,000

2,500



Operating income

Operating income margin 6.4% 6.6％ 7.5% 7.4％ 9.4%

(¥Million)

(¥Million)

16,731 17,353

18,417

20,400

22,700

25,100

1,194 1,118 1,130 1,300 1,700 2,350

20,920

1,381

22,300

1,650



SCSK株式会社

Net sales for the nine months and operating income almost achieved the budget

The forecast of net sales and operating income for this fiscal year still remain unchanged


Net Sales(Consolidated) Operating Income(Consolidated)

10,500 10,397

15,689

22,300

0

5,000

10,000

15,000

20,000

25,000

2Q of FY03/2017(Forecast/Result)

3Q of FY03/2017(Result)

FY03/2017(Forecast)

590 595

1,004

1,650

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2Q of FY03/2017(Forecast/Result)

3Q of FY03/2017(Result)

FY03/2017(Forecast)

(¥Million) (¥Million)

（Forecast）（Result）

（Result）

（Forecast）

（Forecast）（Result）

（Result）

（Forecast）


SCSK株式会社

Item 3Q FY03/17 Valuation Description

Strategic and accelerated promotion of cloud-related businesses

Profit contribution by the cloud business (Realize profitability of the healthcare cloud business) ○

・NOBORI:Income for the nine months was maintained positively for the nine months but booking delayed timing of orders received in the first half ・Launched the "RAKURAKU-Item Manager" ・FastCloud（CRM）in good shape

Turn our cloud service into a platform (diversification) ○

・"NOBORI-PAL" expanded the services for B2B2C ・ICHIGO LLC concluded business alliance with SoftBank Corp in the pathology sector

Establish cloud business in overseas (Asian) market (At first, the success of the joint venture in China） △

・Healthcare field: Established joint venture company in China. Alliance with Peking University in the pathology sector ・CRM field: Alliance with Transcosmos (Thailand) in ASEAN market

Quality improvement for cloud operation (Exponential improvement of operational skills） ○ ・Driven by PMO section, stabilized

operation, continuing facility investment

Strategic application of virtualization technologies (Cloud first) ○ ・Hyper converged solution "VCE VxRail" ・Okinawa Cross Head: nas2cloud Plus

Analysis of Big data gathered by the cloud (Secondary use of the data) ○ ・Increased inquiries about BI


Core business strategy


SCSK株式会社

Core business strategy

Item 3Q FY03/17 Valuation Description

Pursuit of security and safety

Enhancement of defenses against cyber-attacks and provide as one-stop service ○

・Swivel PINsafe, ProofPoint, Tanium Endpoint Platform, ∴TRINITY for BIG-IP managed service、Votiro Auto Agent for FileZen

Design, construction, maintenance, operation and monitoring services Realize value chain of automatization

○ ・Expanded product sales and the maintenance, operation and monitoring services ・NOC/SOC

Realize functional safety of embedded software for IoT (Internet of Things) △

・Signs of improvement of the investment appetite due to the recent low-yen trend

Contribute to safety and security within Internet-based society (accumulation of knowledge as a professional group in the Technology for Information Security and Software Quality Assurance field)

○



SCSK株式会社

Core business strategy Item 3Q FY03/17

Valuation Description

Operation strategy

Cost reduction for high profitability

‣Promote the active utilization of offshore development ○ ・Offshore development in Vietnamese and China

‣Improve operation efficiency by integrating the office space of Head Office ○ ・Additional relocation of offices

‣Transform business model without monotonic increase of human resources ○ ・Stock ratio increased

Closer ties with partners ○

・Healthcare field：SoftBank Corp , Peking University ・CRM field：Nihon Unisys, Ltd., Transcosmos (Thailand) Co., Ltd. 、NEC and LINE

Strengthen direct sales. Penetrate deeply into the market for the government and other public agencies △

・Security Cloud projects for local governments were active ・Direct Sales decreased ・Votiro Auto Agent for FileZen

Strengthen workforce by promotion of diversity ○ ・Grown diversity on hiring of new graduates

Strengthen company's brand as a corporate group ○ ・Renewed our Web site ・Corporate video ・Advertisement at a subway station



SCSK株式会社

Business Topics


Date Contents

April

Commenced the provision of "PINsafe" with two factor authentication

Concluded distributorship agreement with Nihon Unisys, Ltd. for our contact center CRM solution "Fast Series"

Commenced the provision of "NOBORI-PAL" as a new cloud platform service for healthcare information

Commenced the provision of "∴TRINITY " for BIG-IP managed service

May

Constructed FAQ system for Sasebo-city in Nagasaki pref.

Okinawa Cross Head commenced "nas2cloud Plus" service

Commenced the provision of "Proofpoint" as a next generation mail security solution

Jun Commenced the provision of the new service "RAKURAKU-Item Manager"

Commenced the provision of the cybersecurity platform for Endpoint "Tanium Endpoint Platform"

July Commenced the provision of "Yellowfin" a BI tool

Business topics for 33rd Business Period


Date Contents

September

Commenced the provision of dynamic data exchange function with the uncollectability-risk-guarantee type arrears payment services of Net Protections, Inc. on "Rakuraku-backoffice"

Transcosmos (Thailand) Co., Ltd. adopted the solution of contact center CRM system "FastHelp5" combined with the "ACCS" from Avaya Japan Ltd.

Okinawa Cross Head participated in establishing the Asia, Okinawa, and a media cloud council

October

Commenced the provision of a platform service for telepathology under the business alliance with SoftBank Corp

Concluded business alliance with Peking University in the pathology sector

Okinawa Cross Head commenced the provision of the next generation IoT center service with Hewlett-Packard Japan, Ltd.

Hewlett-Packard Japan, Ltd. Introduced the service from Okinawa Cross Head as a case study of a cloud service infrastructure



Date Contents

November

Commenced the provision of the Hyper Converged Solution for system virtualization

Commenced the provision of the automatic data exchange tool for Secure Data Sanitization, "Votiro Auto Agent for FileZen"

Entered into a share subscription agreement with venture-backed DocsApp which provides online medical and healthcare services in India

Integration of "FastHelp5" with "LINE Customer Connect"

December Concluded distributorship agreement with NEC Corporation for our contact center CRM solution "Fast Series"

January CASAREAL,inc concluded the first partner agreement with Pivotal in japan

Commenced the provision of the new service for Office 365 using F5 BIG-IP

February Resolution of stock split（effective on March 1, 2017）



In April, Held ITEM2016

The International Technical Exhibition of Medical Imaging 2016 On April 15–17 Received 20,864 attendees

Point!


In Jun, Commenced the provision of the cybersecurity platform for Endpoint "Tanium Endpoint Platform"

Commenced the provision of the cybersecurity platform for Endpoint "Tanium Endpoint Platform" from U.S.-based Tanium Inc. Security inspection and isolation of infected endpoint for large-scale network such as tens thousands of endpoints in high performance

Point!


In October, Commenced the provision of platform service for telepathology under the business alliance with SoftBank Corp

A platform service that provides telepathology using the "iCOMBOX" which was developed by Ichigo LLC under the business alliance with SoftBank Corp. To solve the serious shortage of pathologists through the data exchange between medical institutions and tele-pathologists

Point!


In November, Held ET/Iot Technology 2016

The ET/Iot Technology 2016 On November 16-18 Received 25,654 attendees

Point!


In November, Integration of "FastHelp5" with "LINE Customer Connect"

Our contact center CRM system Fast "FastHelp5" started development of linkage function with "LINE Customer Connect" using communication app "LINE" of LINE Corporation

Point!

＊ The screen of LINE above is as an Image


In January, Commenced the provision of the new service for Office 365 using F5 BIG-IP

Commenced the provision of the new service for Office 365 using F5 BIG-IP

Point!


February and March in 2017, Scheduled Techmatrix CRM FORUM 2017

Scheduled Techmatrix CRM FORUM 2017, one of the biggest events in the Japanese contact center marketplace, for February 24 in Tokyo, and March 3 in Osaka

Point!

＊Techmatrix CRM FORUM 2016


We celebrated the 30th anniversary since our foundation We started a project consisting of diverse employees regardless of

his/her profession, division, gender and generation The menbers discuss and formurate many ideas and plans for Next Gen.

Techmatrix on their own initiative

Point!

"Next 30 Years Project" for future Techmatrix

●Teleworking has been under discussion Expect decline of turnover due to childcare, nursing care or others Improve operational efficiency by embracing work-life balance and a change of work-style

Etc・・・・・

●Renewed our Web site on September 28


"For Next Gen. Techmatrix"


SCSK株式会社

Business Models


Advanced Media, Inc.： Speech-recognition service for medical doctors 『AmiVoice CLx®』

Point!

Intrasense SA： 3D medical imaging workstation 『myrian®』

NOBORI-PAL： "Gather useful services into the Cloud" to provide various applications for NOBORI users

Techmatrix： Examination reservation service 『TONARI』

Techmatrix ： Remote image viewing in an emergency 『TSUNAGU』

Healthcare field Turn NOBORI into a platform (diversification) Increased a number of services from N-PAL partners


On-premise type Cloud type

CRM field

Point! Enhancing the competitiveness of customers by CRM system for contact centers

Phone

Mail

Web

Job efficiency Improve CS quality improvement

Profitability CRM promotion quality improvement

effectiveness effectiveness

effectiveness

self-contained, Job efficiency, Improve CS, quality improvement

Contact center Marketing/Promotion

Customer


Network & Security field Point! One-stop solution from Techmatrix

Knowledge base operation

Monitoring Center

Alart

Warning

No problem

Operation team

Manned monitoring 24/365 Multitier(operation/analysis) Professional service Biometric identification

Analyst team

Techmatrix SOC "Security Operation Center"

Customer

24/365 Security Monitoring Network Monitoring First level support

Defense solutions

One-stop solution One-stop solution for system design, construction, maintenance, operation and monitoring services.

Professional service with expert knowledges Techmatrix provides security monitoring services based on its in-depth knowledge on the products it

delivers, although other security vendors provide basic services for a wide variety of products.

Security monitoring service

SOC NOC

製品

サポート

Detect alert

Analysis

Measures

Accumulate knowledge


Software Quality Assurance field

Improve quality of embedded software Comply with functional safety standards

Solution for test, systems design and version control system Integration of infrastructure, training and operation support for development process Support for substantive improvement of software quality and productivity enhancement

Point! Every internet-connected device can be a target for cyber-attacks in the IoT era.


EC＆BI field

EC, Smart phone

Big data

Analysis

Provision of cloud services based on open-source software Analysis for big data accumulated on the cloud Provision of risk management systems based-on financial engineering

Point!


SCSK株式会社

Market Conditions for our business


クラウド市場規模

Domestic cloud market size was ¥1,010.8 billion (33.7% up year on year) and it expand to ¥3,388.2 billion in FY2020.

Forecast ¥3,000 billion in FY2020 for cloud market

＊Reference : Cloud business market report 2016(13,Dec,2016) by MM Research Institute

<Cloud business market size actual/forecast (Japan)>

Market Conditions

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Private cloud（Hosted, On-premise, community） Public cloud （SaaS, IaaS/PaaS）

(¥Billion)


Number of contracted facilities using cloud was 807 as of the end of FY2016 in Japan. Techmatrix has successfully contracted with about 450(accumulated) as of the end of FY2015.

＊Reference : Medical Imaging Systems and PACS Markets 2016(Jan, 2017) by Yano Research Institute

<Cloud PACS market size estimate (Japan)>

102 241

414 611

807 890 950 1,000 1,058

355 667

1,250

2,342

3,173 3,618

4,058 4,583

4,957

0

1,000

2,000

3,000

4,000

5,000

6,000

0

200

400

600

800

1,000

1,200

FY2012(actual)

FY2013(actual)

FY2014(actual)

FY2015(actual)

FY2016(forecast)

FY2017(forecast)

FY2018(forecast)

FY2019(forecast)

FY2020(forecast)

Number of contracted facilities Estimated capacity

(TB)

*Estimate as of Jan, 2017

Market Conditions

(facilities)


<Type of PACS Cloud>

Market Conditions

Techmatrix is ahead in the healthcare cloud business with "NOBORI" which is installable at a low price and in short term.

Cloud type Brief summary Feature Configuration image "NOBORI"

TYPE 1

Store both short term and long term data in a in-house server + data center (dual storage for all data)

Data back up by data center Additional cost －

TYPE 2 Store short term data in a in-house server + long term data in data center

High frequency use data in hospital Additional cost

－

TYPE 3

All data in data center without in-house server (only cash in NOBORI appliance)

No additional cost and lower price range ◎


CRM市場

Market size of Call center (telemarketing) is forecasted to grow at average rate of 1.9% each year form FY2013 to FY2018 and to ¥883.1 billion as of FY2018 Market size of Contact center (CRM Solution) is forecasted to grow at average rate of 2.7% each year form FY2013 to FY2018 and to ¥494.5 billion as of FY2018

＊Reference : Call Center (Telemarketing)/Contact Center/CRM Solution Market in Japan: Key Research Findings 2016 by Yano Research Institute

<CRM software market size (Japan)>

*Service provider's sales. Estimate as of Nov, 2016

Market Conditions

803.7 819.6 839.0 852.4 867.0 883.1

433.7 450.7 463.9 475.8 485.3 494.5

0.0100.0200.0300.0400.0500.0600.0700.0800.0900.0

1,000.0

FY2013(actual)

FY2014(actual)

FY2015(actual)

FY2016(forecast)

FY2017(forecast)

FY2018(forecast)

Market size of Call center (telemarketing) Market size of Contact center (CRM Solution)

(¥Billion)


Market size rerated to EC was 7.6% up in 2015 year on year. Increased EC rate to 4.75% in 2015. Market size will be 26,000 billion in 2022. (NRI)

（～2015年 : Ministry of Economy, Trade and Industry 、 2016年～ : Based on Nomura Research Institute ）

＊Reference: "The E-Commerce Market Survey" by Ministry of Economy, Trade and Industry, "IT market trend survey to 2022" by Nomura Research Institute

Market Conditions

6,089 6,696 7,788 8,459 9,513 11,166

12,797 13,775 16,500

26,000

1.79% 2.08%

2.46% 2.83% 3.11%

3.67%

4.37%

4.75%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

0

5,000

10,000

15,000

20,000

25,000

30,000

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016(NRI

forecast)

FY2022(NRI

forecast)EC market size (actual/estimated) EC rate

<EC(B2C) market size actual/forecast (Japan)> (Billion)


ネットワークセキュリティ市場

＊Reference : Network Security business report 2016 by Fuji Chimera Research Institute

Forecasted Networks Security business market in Japan expanding from ¥386.5 billion in FY2015 to ¥487.1 billion in FY2020. High growth rate on average at 4.7% has been forecasted.

<Network & Security market size (Japan)>

Market Conditions

0

100

200

300

400

500

600

FY2014(actual)

FY2015(forecast)

FY2016(forecast)

FY2017(forecast)

FY2018(forecast)

FY2019(forecast)

FY2020(forecast)

Security product Security service

(¥Billion)


QUESTION

TechMatrix Corporation Planning and accounting division Corporate planning team TEL:03-4405-7802 [email protected]

results for the 3 quarter of 33 business period...continuing transformation to "next-gen. it...

Documents