(155A) Stock Price

Information Strategy Technology supports corporate digital transformation (DX) as its core business. The company provides "0th Generation System Development," where customers and engineers work together in short cycles to build and continuously improve solutions, and "WhiteBox," an open platform for system development companies. Through both services, the company aims to eliminate traditional multi-tier subcontracting structures, promote customer in-house development capabilities, and create better working environments for engineers.

The company's primary customers are leading companies in the management and business divisions of operating businesses (end-users), with a focus on direct transactions and active new business development. Revenue comes mainly from contract development project fees and monthly subscription fees (paid plans) for WhiteBox members, while the company also focuses on improving engineer billing rates.

"0th Generation System Development," the core business pillar, is a service that supports customer in-house development through collaborative work. It enables phased progress on prototyping, mobile apps, system integration, and cloud migration even when requirements are not yet finalized. WhiteBox is a plan-based platform that provides free skill management for member engineers while offering paid features such as partner recruitment and project listings. The company aims to reform industry transaction flows by increasing member companies and registered engineers on the platform.

The company aims to achieve sustained growth in revenue and operating profit against the backdrop of significant domestic market opportunities. According to data from Japan's Ministry of Economy, Trade and Industry, the custom software market reached 10.243 trillion yen in 2023, with systems integration accounting for 6.668 trillion yen. IDC forecasts the domestic IT services market will grow at a compound annual growth rate (CAGR) of 6.6% from 2024 to 2029. Based on this market environment, the company has adopted key performance indicators including revenue and operating profit expansion, increased employee engineer headcount driving next-generation system development, improved revenue per employee engineer, and expanded WhiteBox total membership.

The company differentiates itself through focused investment in talent and platform capabilities. It leverages next-generation system development as a core strength—a collaborative approach with customers that builds and improves solutions in short cycles. By eliminating multi-tier subcontracting structures and securing direct contracts, the company reduces unnecessary intermediary costs and achieves competitive pricing. Specifically, the company secures and retains top engineering talent through increased recruitment spending, strengthened referral hiring, improved compensation and benefits, refined evaluation systems, and internal training programs. WhiteBox enhances platform competitiveness by offering basic features free while generating revenue through paid plans.

The company pursues business expansion through deepening existing customer relationships and acquiring new major clients. It builds track records by progressing from small projects to partnerships with leading companies, maintaining high-switching-cost customer relationships to ensure order continuity. WhiteBox membership growth serves as a near-term revenue source, while the long-term strategy aims to establish it as an indispensable platform in the systems development industry and drive structural reform in the industry's value chain. To support business expansion, the company is also recruiting and developing management talent and back-office personnel.

The company prioritizes continuous technological innovation. It maintains engineer development in scrum-based agile development practices, increases AWS-certified engineers, and strengthens technical capabilities to implement artificial intelligence, data analytics, and Internet of Things solutions on cloud platforms. Specific initiatives include certification support and training, internal hands-on sessions, and regular security testing to simultaneously enhance technical capabilities and information management systems, establishing the technological foundation to support industry transformation.