About the company, business, and strengths
Q: What kind of business do you operate? (Please tell us about your main business activities.)
We provide comprehensive services, from consulting to system construction, operation, and maintenance, primarily for the manufacturing industry. Our business consists of three main areas: a "Solutions Business" that provides IT system consulting and construction, a "Product Business" that sells our proprietary licensed product, mcframe, and a "System Support Business" that handles system development, operation, and maintenance.
Go to the "For Individual Investors" page.
Q: What are your strengths and unique features (competitive advantages) that other companies do not have?
Our greatest strengths lie in our planning and consulting capabilities, complex and advanced application development capabilities, and project management skills, all based on the deep business knowledge we have cultivated by working alongside Japanese manufacturing companies for 30 years. We are deploying our proprietary package "mcframe" through a strong network of partners, and are working to make it the de facto industry standard in the supply chain management field.
Q: What makes your flagship product, "mcframe," different from other companies' systems?
The biggest difference and strength lies in its ability to offer "flexible customization" tailored to the needs of Japanese manufacturing sites. The reasons are as follows:
- Responding to detailed on-site requirements: Unlike overseas systems (such as SAP) that are implemented company-wide by global corporations, mcframe can be easily customized to meet the complex, unique requirements of each site.
- De facto industry standard: As a result of our continued investment focused on production management and cost management, we are now seeing an accelerating trend of competitors withdrawing from in-house development and selling mcframe as our partner.
- Hybrid adoption is expanding in large corporations: Hybrid solutions, such as using SAP for accounting and the user-friendly mcframe for on-site production management, are becoming more common even in large corporations with annual sales exceeding 1 trillion yen.
Go to the "mcframe product information" portal
Q: When was the company established? / When were its shares listed on the stock exchange?
Our company spun off from Toyo Engineering Corporation and began operations as "Toyo Business Engineering Corporation" on April 1, 1999 (※The number of fiscal periods indicated as "the ◯th fiscal period" in the regular shareholders' meeting and financial statements is based on the registered date of incorporation, December 20, 1980). Subsequently, on February 19, 2001, we registered our shares over-the-counter (listed on JASDAQ), and after listing on the Second Section and First Section of the Tokyo Stock Exchange, we are currently listed on the Prime Market.
Q: Could you tell us the origin of your company name, "Business Engineering (B-EN-G)"?
Our company name embodies our strong commitment to "engineering business," which is the greatest value we offer. It directly reflects our mission since the start of our IT services business: to clarify our clients' objectives and challenges and provide the best possible value by combining diverse technologies. We changed our company name in October 2019, marking our 20th anniversary.
Q: Could you tell us about your management philosophy and vision?
Our corporate philosophy is "As a group of professionals prioritizing customer satisfaction, we contribute to society through the creation of new value." In this era of transformation, we constantly strive to build new business models and introduce cutting-edge technologies.
Go to the "Corporate Philosophy" page.
Q: What are the goals and policies of your medium- to long-term management strategy (medium-term management plan)?
Under our growth strategy "BE 2030," we aim to achieve sales of 33 billion yen, operating profit of 10 billion yen, and an ROE of 20% or more by fiscal year 2030 (ending March 2031). We are strongly promoting the expansion of license sales, global expansion, investment in product development such as AI, and M&A.
Go to the "Business Plan" page.
Regarding financial results, financial statements, and performance trends
Q: When is your fiscal year end?
Our fiscal year ends on March 31st each year. Our business year runs from April 1st to March 31st of the following year.
Go to the "Basic Stock Information" page.
Q: Could you please tell me the schedule for the earnings announcement (the date of the next announcement)?
The date of the next earnings announcement and the schedule for the briefing sessions will be posted on the IR calendar as they become available.
Q: Where can I find the latest financial results and data?
Our latest financial statements, financial presentation materials, integrated reports, and other documents are available in the "IR Materials" section of our IR information website.
Go to the "IR Materials" page.
Q: Do you publish annual reports or integrated reports? (Where can I read them?)
To explain our commitment to sustainable corporate value creation, we publish an "Integrated Report" every year. The latest Integrated Report can be viewed on our "Integrated Report" page.
Go to the "Integrated Report" page.
Q: I'd like to know about the company's performance trends. Where can I find that information?
Past performance trends, including sales and operating profit, are available for the most recent five years in the "Performance and Financial Information" section of our IR website.
Go to the "Performance and Financial Information" page.
Q: Your recent performance has been very strong. What are the reasons for the significant growth in sales and profit margins?
The main reasons are not a temporary surge in demand, but rather structural strengths stemming from establishing a unique position and thorough project management.
- Increase in large-scale projects: We have seen an increase in major business partners selling mcframe, allowing us to secure multiple large-scale projects, some exceeding 100 million yen each.
- Providing high-value-added solutions: We are able to offer our unique and highly profitable "extension solutions" to meet the demand for updating existing systems.
- Eliminating unprofitable projects: Based on the trust we have built with our long-standing clients, we maintain thorough quality control, which prevents us from having any unprofitable projects and allows us to maintain high profit margins.
About stocks and shareholder meetings
Q: What is the stock code? / Which stock exchange is it listed on?
Our stock code is "4828". We are listed on the Prime Market of the Tokyo Stock Exchange.
Go to the "Basic Stock Information" page.
Q: What is the minimum trading unit (number of shares)? (What is the minimum number of shares I can buy?)
The trading unit for our company's shares is 100 shares.
Go to the "Basic Stock Information" page.
Q: When will the shareholders' meeting be held?
The annual general meeting of shareholders is held every year in late June. Details regarding the date, time, and location will be provided in the notice of convocation.
Go to the "Shareholders' Meeting" page.
Q: Where should I contact for various stock-related procedures such as changing my address, transferring ownership, or selling off fractional shares?
For all procedures related to our shares, please contact Sumitomo Mitsui Trust Bank, Limited, our shareholder register administrator (dedicated call center: 0120-533-600, operating hours: 9:00 to 17:00, excluding Saturdays, Sundays, national holidays, and year-end/New Year holidays).
Go to the "Shareholders' Meeting (Procedure)" page.
Q: How can I exercise my voting rights at the shareholders' meeting? (Can I do it online?)
In addition to attending the general shareholders' meeting, you can also exercise your voting rights by mail or via the internet. Please refer to the notice of convocation for details.
Go to the "Shareholders' Meeting" page.
Regarding shareholder returns
Q: When will I receive my dividends? (What is the record date for dividend eligibility?)
Dividend payments are generally made twice a year (interim dividend and year-end dividend). The record date for the interim dividend is September 30th, and the record date for the year-end dividend is March 31st.
Go to the "Shareholder Returns" page.
Q: Could you please explain your basic dividend policy (DOE, dividend payout ratio, etc.)?
Our basic policy is to adopt a "progressive dividend" approach, which involves increasing or maintaining dividends without reducing them in the long term, and to strive to ensure that the consolidated dividend payout ratio exceeds 50% in the medium to long term.
Go to the "Shareholder Returns" page.
Q: Do you have a shareholder benefit program?
Currently, we do not have a shareholder benefit program. Our policy is to prioritize "direct returns through dividends" (progressive dividends and a consolidated dividend payout ratio of over 50%) as a means of returning value to our shareholders, from the perspective of business growth and fairness.
Go to the "Shareholder Returns" page.
Q: How can I change how I receive my dividends?
For information regarding changes to how you receive your dividends, please contact your securities company or Sumitomo Mitsui Trust Bank, Limited, which is our shareholder register administrator.
Go to the "Shareholders' Meeting (Procedure)" page.
Sustainability and Human Capital
Q: Could you tell us about your initiatives regarding sustainability (environment, social, and governance)?
We are actively working to promote sustainability by identifying material issues (key issues) with the aim of realizing a sustainable society through our business activities, including manufacturing and supply chains.
Go to the "Basic Policy and Promotion System for Sustainability" page.
Q: What initiatives are you undertaking to promote women's advancement and human capital (talent development)?
We consider our employees to be our greatest asset and support diverse working styles. We are working to increase the percentage of women among our employees, develop the next generation of female leaders, and obtain the "Eruboshi" certification (Level 3), which is awarded to companies that are proactive in promoting the advancement of women.
Go to the "Society (Sustainability)" page.
Q: The IT industry has a reputation for long working hours, but how is the work environment and employee retention rate?
Our company is committed to creating a comfortable working environment, resulting in a very high employee retention rate and consistent project quality. The reasons are as follows:
- Extremely low employee turnover: Excluding retirements and other reasons, our employee turnover rate is around 3-5%, which is extremely low in the IT industry, where employee turnover is high. This is due to improved employee satisfaction, including promoting paternity leave for men.
- Significant salary increases: We have implemented base pay increases that are approximately double the national average, investing in improving employee benefits and attracting and retaining top talent.
- Eliminating unprofitable projects: Because we thoroughly conduct quality checks in advance and adjust schedules to be manageable, we do not have "crisis (unprofitable) projects" that tend to cause long working hours, and we have created an environment where employees can perform at a high level in a healthy manner.
Go to the "Society (Sustainability)" page.
Q: Could you tell us about your approach to and philosophy regarding corporate governance?
To continuously enhance corporate value, we strive to build a transparent and fair corporate governance system. Details regarding the appointment of outside directors and the strengthening of our risk management system are disclosed in our corporate governance report and other documents.
Go to the "Corporate Governance" page.
Regarding future growth strategies
Q: What are your plans for future overseas expansion (global business)?
We position our overseas business as our next growth engine, and we will accelerate our expansion into local companies while strengthening our local bases.
- Stable growth record: Over the past 10 years, our overseas business has maintained an average annual growth rate of approximately 12%, building a solid track record primarily in Asian regions such as Thailand, China, and Indonesia.
- Market expansion to local companies: In addition to our existing support for Japanese companies expanding overseas, we will now expand our target market to include local companies by utilizing an easy-to-implement cloud-based version.
- Consolidation of all overseas subsidiaries: Starting in fiscal year 2026 (ending March 2027), all overseas local subsidiaries will be included in the consolidation, and the entire company will work together to expand global sales and profits.
Go to the "Investor's Guide" page.
Q: Are you considering M&A (mergers and acquisitions) or similar strategies to further your growth in the future?
Yes, we are actively considering and promoting M&A (mergers and acquisitions) as one of our key strategies for sustainable growth. The reasons are as follows:
- Abundant growth investment framework: In our medium-term management plan "BE 2030" for fiscal year 2030, we plan to allocate approximately 20 billion yen of our growth investment framework of approximately 32 billion yen to investments, primarily M&A.
- Emphasis on synergies with existing businesses: Rather than simply increasing the size of the company, we target companies where clear synergies can be expected with their current business, such as securing system engineers with strengths in manufacturing, expanding our product lineup, and expanding sales channels overseas.
- Solid investment track record: In recent years, we have steadily made investments with an eye on future growth, such as acquiring a company that has systems to support field workers as a wholly owned subsidiary.
Go to the "Business Plan" page.
Q: How are you proceeding with the implementation and utilization of generation AI, IoT, and data analysis functions in your proprietary package "mcframe"?
Leveraging the unique data accumulated in mcframe, we are advancing the automation of tasks using AI agents and the implementation of sophisticated prediction functions.
- AI functions that are already in practical use: "AI-OCR" in accounting services and "AI chatbots" in support desks have already achieved significant results and received positive feedback.
- From a "recording" platform to a "utilization" platform: Moving forward, we will evolve from a system that simply stores data to a platform where AI utilizes data to support on-site operations.
- The future of manufacturing through AI agents: We are implementing features such as an AI agent that automatically creates an "optimal production plan" based on on-site operational status, and an AI agent that automatically generates "procedure manuals" from videos of skilled workers' work.
Q: Please tell us about the use of generative AI and other technologies within your company (system development sites and back office), and your efforts to improve the productivity of the development process.
We are systematically utilizing AI in various internal operations, achieving significant improvements in development speed and cost reductions. The reasons are as follows:
- Accelerating the development process: We utilize AI in program drafting (coding) and the design of extensive system tests, achieving both shorter release times and improved quality.
- Efficiency improvements in translation work: By using AI to translate manuals and documents for overseas markets, we have a track record of reducing outsourcing costs and completing projects in half the time compared to traditional methods.
- Maximizing value delivered to customers: By entrusting simple tasks to AI, employees can focus on consulting work such as "understanding our customers' complex business processes and designing optimal systems," thereby providing higher value services.