Issues Requiring a Response
Although there are factors to monitor, such as political and geopolitical risks and rising global inflation, IT investment demand among domestic companies remains robust, and we believe that the favorable business environment for the Group will continue. As the practical application of innovative technologies, including AI agents, advances rapidly, the demand for digital solutions continues to grow and become more sophisticated. Meanwhile, in addition to increased entry by global IT platform providers and players from other industries, structural changes are underway in which AI itself has the potential to transform development processes, leading to a qualitative shift in the competitive landscape.
In light of these environmental changes, the Group will merge TIS and INTEC in July 2026 to establish a new company, TISI Inc. This merger is not merely an organizational integration; its purpose is to achieve unified management as "One Company" and maximize overall value by combining both companies' customer bases, technologies, and human resources. By integrating the two companies' customer bases, technologies, and human resources, we will enhance the comprehensive value we provide to address four key social challenges, namely, "financial inclusion," "concentration in cities/decline in rural areas," "low-carbon/decarbonization" and "health issues," and create a virtuous cycle that strengthens our competitiveness.
At the same time, by establishing an optimal organizational structure through this group reorganization, we will fundamentally review the allocation of resources and the efficiency of decision-making across the entire Group, and pursue further improvements in management efficiency. We believe it is important that the Group refines our strength in our deep understanding of customers and industries and also strengthens and expands our ability to solve issues through co-creation with a diverse range of players. Our understanding of management issues facing the Group is as follows.
- Active entry into growth domains
Continue efforts to strengthen our earnings base and develop an environment for creating high value-added services, technologies, and human resources - Strengthening and expansion of issue-solving capabilities
Enhance insight concerning the true issues faced by society and customers, and acquire issue-solving methods unconstrained by existing frameworks - More sophisticated human resources
Achieve more high value-added human resources and competitive remuneration levels - Acquisition of agility to create practical applications for new technologies
Develop human resources with advanced technical skills capable of driving continuous assessments of new technologies and their application in the field, and develop a knowledge base - Promotion of the accumulation and utilization of intellectual property
Promote the accumulation and utilization of quality intellectual property to achieve business structural transformation and the scaling-up of businesses - More advanced governance
Create more advanced governance to support ambitious growth plans - Optimized business portfolios
Pursue the optimal business portfolio to achieve the above and generate the maximum returns with the least capital - Accelerating the transformation of our business model
Moving away from labor-intensive businesses and expanding revenue from results, services, and products - Realizing integration synergies
Establishing a "One Company" management approach and expanding overall value
Under the "Frontiers 2026" medium-term management plan (2024-2026), which we have been implementing since April 2024, the Group has been advancing differentiation and consolidation as the first stage of the Group Vision 2032, building on the results of our investments and customer base development during the period of the previous medium-term management plan.
Fiscal 2026, the final year of the current medium-term management plan, marks a significant milestone involving a structural transformation with the launch of the new company, TISI Inc. Based on our understanding of the management issues outlined above, we will strive to both bring the current medium-term management plan to a successful conclusion and lay the groundwork for the next one.
< Positioning of the "Frontiers 2026" Medium-term Management Plan (2024-2026) >
