(483A) Stock Price

Terra Technology Corporation primarily engages in system development, providing end-to-end services—from design and construction to operation—of cloud infrastructure and business systems, with a focus on the public sector and telecommunications industries. The company handles all stages in-house, from requirements definition through design, implementation, testing, and maintenance, and has particular strength in projects requiring high reliability, such as 24/7 stable operations and strict information management.

The company's major customers come largely through large information systems companies, though it also maintains direct relationships with telecommunications carriers, local governments, and financial institutions. With a high rate of repeat orders and an increasing proportion of direct contracts, Terra Technology has achieved a revenue structure that balances recurring income with relatively high profit margins.

While the business operates as a single system development segment, the company has a track record across multiple domains, including e-filing systems, subsidy payment processing, authentication and location-based systems, cloud migration, business support systems, and embedded software. Terra Technology also develops ChatCo!, a business chat tool for small and medium-sized enterprises, and maintains stable project operations and technical expertise through a workforce centered on new graduates and a high proportion of permanent employees.

The company has established "leverage our strengths and build on our strengths" as its core strategy for the medium-term business plan (fiscal year ending March 2026 through March 2028), aiming to expand sales and profits. The company positions an 8% year-on-year increase in full-time development staff as the engine for growth, planning to enhance order capacity and delivery responsiveness through workforce expansion. Given market conditions, IDC Japan forecasts that Japan's domestic IT services market will grow at over 6% annually from 2025 onward, reaching approximately 9.66 trillion yen by 2029. The company intends to convert this market expansion into revenue growth.

The company pursues differentiation through selective investment and focus in five priority sectors: public administration, telecommunications, information services, finance, and manufacturing. In the public sector, it will strengthen support for municipal digital transformation and cloud migration of legacy systems using open-source technology. In telecommunications, it will advance support for in-house development and agile adoption among carriers. In information services, it will focus on microservices architecture and cloud migration technology for e-commerce and digital marketing. In finance and manufacturing, it differentiates through tailored technology solutions including business process automation, EV control systems, and on-site digitalization. The company positions 24/7 operational stability and end-to-end in-house capabilities—from requirements definition through maintenance—as core competitive strengths.

For new market development and business expansion, the company aims to increase direct transaction ratios with telecommunications carriers, municipalities, and financial institutions, beyond existing relationships with major IT system integrators. To expand direct contracts, it will establish proposal capabilities for large-scale projects and create new revenue streams through proprietary services such as ChatCo!, a business chat tool for small and medium enterprises. On the human resources front, alongside an 8% annual hiring target, the company will implement health and wellness initiatives, flexible work arrangements, and collaborative team structures with partner companies to support order growth. Regarding funding, the company will primarily rely on internal resources but will consider borrowing and capital strategies as needed.

For technological innovation, the company has established a dedicated team to research and implement cutting-edge technologies and has created mechanisms for internal knowledge sharing. It will strengthen technical and project management capabilities through employee certification support and tiered training while continuing investment in practical technologies including cloud, virtualization, open-source tools, and advanced automation and monitoring. The company aims to maintain and enhance competitiveness by strengthening internal controls and governance while adopting new technologies, thereby ensuring operational stability and security.