BUSINESS

PHILOSOPHY

Management philosophy

一 Strive to be a consistently-developing company
一 Take on change
一 Contribute to the world and its people
一 Pursue happiness for employees

Management vision: Contribute to the realization of a sustainable society

Management policy: Create business through IT technology education and contribute to societal development

Course of action: Be a group that values the creation and continued realization of new products, services and mechanisms

The company name "SERAKU" embodies and expresses the underlying philosophy of our company, with our management philosophy at its core. SERAKU is derived from "静楽" (kanji pronounced as “sei” and “raku”). We chose to make "静楽" read as “Seraku” for a more friendly and familiar feel, but the two individual kanji “静” (sei) and “楽” (raku) symbolize our management approach since they originally mean the following.

A kanji made up of two smaller kanji compounds 青+争, ”青” (the kanji for “blue”) expresses water, and “争” (the kanji for “competition”) expresses movement. Even a flow of water similar to that from a stream eventually becomes a great river and goes on to pour into the vast ocean. Such water then becomes known as “静” when it is no longer slowed down by anything, like an ocean. This expresses Seraku’s desire to grow big and strong like an ocean, and like “静”.

This kanji (meaning “ease”) represents a state of well-being and the belief that our relationships with all stakeholders, including shareholders, clients, partners and employees,build a good relationship.

"A drop of water that falls from heaven becomes a stream, and while nurturing the happiness of many, it eventually becomes a great river. The great river pours further into the ocean and establishes itself."

CORPORATE IDENTITY: Our company logo also expresses the flow of water and our desire to one day become a big and strong company, like a big river, and eventually, an entity that is not slowed down by anything, like the ocean.

TOP MESSAGE

Representative Director
TATSUMI MIYAZAKI

We would like to express our sincere gratitude to our shareholders for their continued support.
Business development: Since SERAKU was established, it has strived to tackle real-world problems through its business activities, to achieve both corporate growth and contribute positively to society.

In the face of the ongoing and widespread shortage of IT personnel, we are expanding our business using the more than 3,000 IT engineers we have nurtured through our original IT human resource training methods, as well as IT personnel from the more than 1,880 partner companies with which we share a common vision through our IT personnel platform .

Our Digital Integration business consists of System Integration (SI) business for supporting infrastructure and social development, and Digital Transformation (DX) business for developing solutions to real-world challenges through innovation.

Additionally, we are developing new businesses that contribute to real-world solutions, such as our Midori Cloud business for transforming agriculture through the power of IT, Mechanical Design and Engineering business, and our proprietary NewtonX service to help client companies utilize AI effectively.
Business and growth strategy: SERAKU is steadily establishing a new growth model, with initial targets of ¥4 billion in operating profit and ¥50 billion in market capitalization.

Under our IT personnel platform, we are working jointly with partner companies to address the IT challenges of approximately 800 clients. The aim is to increase profits by pursuing systematization and outsourcing.

The operation and integration of cloud systems is handled mainly by our subsidiary SERAKU CCC Co., Ltd. In this new era of rapid cloud migration of corporate systems and digital transformation, we are growing our client base by offering more comprehensive support for cloud systems and leveraging our proprietary hands-on support (customer success solutions) for ongoing support. This has enabled us to achieve higher than ever profitability and sales growth.

Midori Cloud Rakuraku Shukka is a proprietary digital shipping service that arose out of the Midori Cloud business we have pursued for the past 10 years. It has earned high praise for addressing worker shortages and improving productivity in agricultural distribution systems, most prominently those of Japan Agricultural Cooperatives (JA).

As the service has been adopted by numerous JA organizations in this fiscal year, we expect business growth to continue strongly over the foreseeable future.

SERAKU’s AI utilization service NewtonX was an early entry into the generative AI business market that rapidly emerged around 2023. We are now upgrading functionality in areas of competitive strength, such as cloud system operation and integration.

We are also actively pursuing M&A opportunities.
To shareholders and investors: SERAKU views changes in business environment as opportunities for progress. While sensibly assessing business investment risks, we continually take on new challenges to increase corporate value over the medium to long term.

We are committed to meeting the expectations of our shareholders and investors by ensuring steady growth in profitability and market capitalization in the medium and long term. Besides practicing business management with integrity and moving forward with an eye to the future, we will pay appropriate dividends and take advantage of business opportunities by making investments and tackling challenges.

For dividends, we have adopted a performance-linked dividend system that provides for stable dividends as well for dividend growth in line with financial performance.

We also perform share buybacks.

Going forward, while expanding shareholder returns in line with increased profit, we will focus on increasing opportunities to communicate with individual investors, aiming to extend the circle of people who buy into our growth vision and aspirations.

We look forward to your continued support.

OUR BUSINESS MODEL

SERAKU offers digital transformation (DX) services to support corporate digitalization through advanced technologies such as customer success business solutions (solutions that help customers achieve a successful experience through products and services) for cloud services, AI, cybersecurity, and robotic process automation (RPA), system integration (SI) services to support corporate IT infrastructure and IT systems, and agricultural IoT services such as Midori Cloud.

1995 –

Started an internet business before the internet became widely used and started training programs for web engineers

Currently expanding business operations in the digital marketing domain

1997 –

Anticipating growth of the web systems domain, started a system development business and training programs for system development engineers

Currently expanding the System Integration business

2002 –

Anticipating growth in demand for IT utilization services at companies, started training programs for IT infrastructure and network engineers

Currently expanding the System Integration business

2008 –

Looking ahead to the widespread use of smartphones and the IoT, started training programs for smart technology engineers

Currently expanding the Midori Cloud business and other activities in the data science domain

2013 –

Looking ahead to the growth of the cloud systems market, started training activities for Salesforce engineers

The goal is enlarging the customer success solutions business to a workforce of about 500 within three years

2018 –

Looking ahead to growth of the DX market, started training programs for robotic process automation, security, data science, verification and other activities

2020 –

Looking ahead to growth of the Microsoft platform, started training programs for the Microsoft certifications of at least 200 people every year

2021 –

Received the Salesforce Partner Summit “Top Certification of the Year” award.

Signed a partnership agreement with Tableau Software, LLC.

Announced a cloud-based digital healthcare service aimed at promoting employee health, mental health care, and productivity improvement.

Launched a business transformation support service in collaboration with NTT Data Japan Corporation , starting with Salesforce integration support.

2022 –

Strengthened collaboration with Works Human Intelligence Co., Ltd. to provides COMPANY® as a solution partner.

Established SERAKU CCC Co., Ltd., a subsidiary to focus on cloud system operation and integration support.

Invested in a subsidiary established by Resona Holdings, Inc. for DX support to participate in a joint venture.

2023 –

Transitioned to the Tokyo Stock Exchange Standard Market segment.

Entered the cloud BPM field in collaboration with NTT Data INTRAMART Corporation.

Released NewtonX, a ChatGPT enterprise service.

Midori Cloud Rakuraku Shukka received an Excellence Award in the SX/GX category at the Japan DX Grand Prix 2023.

Launched Midori Cloud Rakuraku Shukka, a digital service for fruit and vegetable distribution.

2024 –

Acquired MIND Co., Ltd., a company developing systems on the intra-mart platform, as a subsidiary.

Acquired AND Think Corporation, a company developing systems for the manufacturing industry, as a subsidiary.

ESG MANAGEMENT

By promoting ESG activities, We will strengthen its efforts toward the realization of a sustainable society.

For the three values of environmental response, social contribution, and corporate governance indicated by ESG, we will contribute to the achievement of the SDGs toward the realization of a sustainable society through IT technology by actively implementing initiatives centered on our management philosophy.