ORACLE CORPORATION JAPAN (4716) Stock Price

Market cap
¥1.11T
P/E ratio
23.6x
Japan Oracle provides database software, cloud services, and IT infrastructure to Japanese businesses as the local subsidiary of Oracle Corporation.

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Business Overview

Japan Oracle is a subsidiary of US-based Oracle Corporation, providing products and services for building and operating IT systems. Specifically, the company sells databases, middleware, application software, servers, storage, and network equipment. Additionally, Japan Oracle offers cloud services that deliver these products through the internet.

Japan Oracle holds a sales agency agreement with Oracle International Corporation, which manages Oracle Corporation's intellectual property rights. The company also has a contract with Oracle Information Systems LLC Japan, holding licensing rights for cloud services and acquired products. Through these arrangements, Japan Oracle supplies products to the Japanese market and pays royalties based on sales revenue.

Japan Oracle's business is divided into five segments: Cloud Services, License Support, Cloud License & On-Premise License, Hardware Systems, and Services. The Cloud Services segment provides software and hardware resources via the internet, while License Support delivers technical support to license users.

The Cloud License & On-Premise License segment sells licenses for database management software and business application software such as ERP. The Hardware Systems segment handles sales and support of hardware products including servers and storage. The Services segment provides implementation support and IT environment management services.

Management Policy

Oracle Japan's core mission is to create new value in IT and contribute to customer success and societal development. The company provides cutting-edge digital technologies, including cloud solutions, to strengthen customer competitiveness and improve business performance. This approach supports broader societal convenience and progress.

The company's medium-term business plan targets increased revenue, operating profit, and earnings per share (EPS) to enhance corporate value and return profits to shareholders. The plan emphasizes supporting customer business growth through cloud migration and data utilization, driving further company expansion.

Oracle Japan is accelerating cloud service delivery and promoting legacy system modernization in the Japanese market. The company focuses on providing enterprise-grade AI to support customer business innovation, delivering services with industry-leading security, performance, and efficiency.

The priority initiatives launched in the fiscal year ending May 2024 center on two pillars: "Cloud for Japan" and "AI for Customers." These efforts support the evolution of Japanese companies' core systems and aim to create new value. The company is particularly advancing mission-critical system modernization using Oracle Cloud Infrastructure (OCI).

Oracle Japan leverages OCI, which is certified for government cloud use, to support digital transformation across local municipalities nationwide. Through "Oracle Alloy," the company has deployed Japan's first sovereign cloud, offering solutions that address geopolitical and economic security risks while meeting data sovereignty and operational sovereignty requirements.

Additionally, the company provides AI-embedded Application Cloud (SaaS) to help customers transform their lifecycle cost structures. Quarterly version updates and proprietary AI agent development capabilities deliver the latest AI technology value to customers. To realize these initiatives, the company strengthens partnerships to provide industry-specific solutions tailored to each customer segment.

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