Under the new structure, we will make efficient use of internal capital.
It will enable us to carry out speedy development and deliver value.

――First of all, could you let us know the reasons behind the creation of the newly formed BDE unit?

WingArc1st's core businesses, the BDS business and the DE business, have each pursued sales growth within their respective departments.

However, as times change and amid the remarkable evolution of digital technology and the further rise in DX demand, there is an increasing need to incorporate new technologies, including generative AI, and respond swiftly to diverse needs. Due to this, we established the BDE-SBU and integrated our internal resources. By consolidating functions that were duplicated between BDS and DE, such as sales, development, and customer relations, we have streamlined operations and created a system that allows us to deliver necessary features more quickly.

――What benefits does this integration bring to customers?

We believe this integration will help us further increase the value we deliver to our customers. As an example, we are observing increased demand for proposals combining BDS products and DE products, which were previously implemented through collaboration across departments. This integration will make it easier to promote these proposals and enable us to offer customized solutions that better align with our customers' needs.

Additionally, when it comes to development, this integration should also help us ensure consistency in the UI and UX between BDS products and DE products, thereby enhancing ease of use for customers. By integrating our development teams, we can efficiently utilize resources allocated to development, and we can expect to see progress and acceleration in areas such as basic research and the integration of generative AI. Through this, we can create products with even higher functionality.

Service overview of invoiceAgent Enterprise Cloud

Our strengths lie in our advanced technological capabilities and strong customer base built through years of continuous investment and development in this field. Additionally, our product flexibility enables integration with any system, and our collaborative framework supports over 400 business partners. 30 years after its release, SVF remains the number one product in Japan with a 69%^* market share. The reason for its enduring popularity is that it has incorporated new technologies to keep up with the times, such as changes in system environments and business requirements, and has increased the value it delivers to customers. We will continue to maintain this approach as we aim for further growth.

*Market share of form management products in the MIC IT Report, November 2024, by Deloitte Tohmatsu MIC Research Institute Co., Ltd. Chart 2-3-1. Operations: Sales and market share by product/service vendor Trends in FY2024 Results (https://mic-r.co.jp/micit/2024/ (Japanese))

――What kind of progress have you made in utilizing generative AI in the BDS business?

At present, we are actively considering incorporating generative AI into all of our products. For example, technological development in areas such as automatic form generation and automatic form layout is already well underway, and we plan to promote the use of generative AI in the field of image recognition, where there is high demand.

In this era of generative AI, it becomes easier to tamper with digital data. The key challenge here would be how to ensure the authenticity of forms. To address this, on August 26, 2025, we released Trustee, a digital trust service equipped with a timestamp function that records the exact date and time when data and files are created or updated. In the future, in addition to utilizing generative AI, we will also develop other necessary functions for this new era.

Business are created because they are needed by society. It is precisely because we have enjoyed the long-standing support of our customers that we have been able to continue growing. We will continue to hone our technology and evolve together with our customers and partner companies in order to be their company of choice.

Compared to Europe and the United States, it is said that Japan's IT industry is still developing. Nevertheless, even in this environment, WingArc1st continues to provide products and features tailored to the way Japanese companies operate. This will support the growth of Japanese companies, contribute to society, and further develop the IT industry as a key sector. We aspire to make such a future a reality.
We hope that all of our stakeholders will look forward to BDE's further growth under this new structure.

Nowadays, the deciding factor for sales is whether it can lead to transformation.
We will build our customers' future with our arsenal of products.

――First, please tell us about the mission of the Sales Division.

Our mission in the Sales Division is "Bringing Smiles to the World through Data Utilization". To achieve this, we must first become a company that is chosen by customers. In this era overflowing with diverse products and competitors, how can we be chosen? For clients seeking to drive internal transformation through data utilization, what they need is not just to have someone "accompany" them. Instead, what's required of us is to be a driving force that takes initiative and leads our customers' transformation. To deliver on this, we are committed to building a sales team that takes responsibility for our customers' future and leads to transformation.

――The theme for this current fiscal year is "Focus and Fusion". What will be the first thing you will focus on?

We will first focus on our existing customers. By doing so, we hope to maximize Life Time Value (LTV).

The backdrop behind this is the fact that we now offer a full suite of cloud-based products, including invoiceAgent Enterprise Cloud (released in November 2024). This enables us to propose solutions based on a model aligned with customers' business challenges, allowing us to deliver a value proposition that encourages longer-term use of our products.

We believe that our existing customers should be the top priority for such proposals. This is because our strength lies in our strong customer base, where we already have relationships built on trust. It is precisely for our existing customers that we should be able to make dynamic proposals that incorporate our new products. Through these proposals, we aim to contribute to the growth of our customers for the long term. The results we create in this manner will surely pave the way to proposals for new customers. That's the reason behind our focus.

――What is the aim embedded in "FUSION"?

Our company has been working to streamline sales activities by consolidating customer-related data within the department and implementing a Sales Force Automation (SFA) system. However, this was solely for sales operations, and it did not integrate sales activity history stored in other departments or data on product utilization after implementation.

Under the theme of "FUSION," we will centralize the information distributed throughout the company and integrate it to a level where it can be managed and utilized by existing customers and their assigned representatives. Moreover, by combining this data with generative AI, we will create a system that will identify customers showing strong interest and will enable us to propose the right products at the optimal time. By completing this next-generation sales tool (customer information database) powered by "FUSION Data × Generative AI," we plan to enable more comprehensive and effective sales activities.

Driven by both direct sales that meet the demands of the times and our robust partner network, we will achieve further growth.

――Please tell us about the structure of the Sales Division that supports our solid sales.

The Sales Division is comprised of the Partner Sales Management Department, which handles partner sales that serve as the backbone of our company, and the Customer Relationship Management Department, which focuses on creating direct demand by approaching customers directly. Additionally, all members of our departments are dedicated to building connections and relationships with our customers. This includes the Customer Experience Division, which handles post-implementation support and retention as part of customer success, and the Regional Sales Division, which oversees nationwide locations.

――When it comes to partner sales, we have one of Japan's largest partner networks at over 600 companies. How did you build this network?

Our company has primarily grown its business through partner sales, where we incorporate our products into proposals from partner companies and entrust them with sales. In this regard, what we value most is the relationship of trust with our partner companies. The initiatives under the WingArc1st Relationship Platform (WARP), a partnership program that has continued since our founding, is one such symbol of this.

WARP's purpose is to develop new markets and create a prosperous future by solving societal challenges through mutual growth and co-creation with partner companies. We have built relationships where we mutually refine and grow together, primarily by strengthening our support for partner companies, providing learning content for engineer development, offering a certification program that validates technical skills for our products, and implementing recognition programs.

――That being said, why did you start direct sales?

As DX continues to progress, it has become increasingly necessary for everyone to use technology as a tool to boost productivity. It is time for us to change our corporate culture so that we not only incorporate digital technology, but are able to utilize it effectively.

To solve these challenges for our customers, we need to establish contact points not only with the Information Systems departments that have traditionally handled customer data, but also with line-of-business (LOB) departments and other operational units. We initiated direct sales to further explore this market.

Another factor is the growing demand for cloud services in the market, along with our company's comprehensive lineup of cloud products capable of meeting this demand. Since our partner companies have specialized in selling our products for on-premises environments, we decided to take a proactive approach to the growing demand for cloud products.

That said, this is not a conflicting structure. At present, we continue to work with partner companies to build systems and make proposals for projects started by the direct sales team in line with customer needs. This will enable us to pursue new business development from both directions and continue our growth.

In the era of AI, we will hone our unique strengths and build systems to solve customer challenges to drive customer transformation through our sales operations.

――With integrated production and sales seen as WingArc1st's strength, could you tell us about the role the Sales Division plays?

One reason customers choose our company is our unique technological capabilities and high reliability. This reliability is not only rooted in the strength of our products, but also in our unwavering commitment to solving our customers' challenges.

In this context, the role of the Sales Division is to thoroughly identify customer issues and draw out the themes to be addressed. We will establish a collaborative framework where the Technology Development Department generalizes identified challenges and translates them into product specifications, while the Customer Success Department promotes their utilization to maximize effectiveness.

The essential skills for sales are flexible adaptability and discerning judgment. Although AI can generate ideas, it is still people who identify the key points, make selections, and exercise judgment. We need proactive personnel who can act and make decisions on their own. Furthermore, to maximize customer satisfaction by collaborating with development, business strategy, support, and user community teams, the ability to engage others is also essential.

――Could you share some of your policies and initiatives to develop sales personnel?

We focus on developing the skills necessary for our sales operations while also striving to bring out each individual's unique qualities. As we live in an era where AI can handle various tasks, I believe that what truly captivates us is the human touch, including our team members' unique perspectives, potential, and way of life. We aim to cultivate a team that is sharper and more compelling by creating an environment that brings out 120% of each individual's potential while highlighting their unique qualities.

We are also focusing on talent management, and are promoting sales enablement while receiving guidance from external experts. In particular, we are focusing our efforts on strengthening the group manager level, which has a large number of personnel. We believe this holds significant potential for organizational growth. In addition, to foster greater initiative among young employees and transform their concerns and requests into opportunities for growth, we established the Engagement Improvement Project, "Selecao," with members poised to lead the next generation of sales professionals. Up until now, we have been reforming our systems and providing on-boarding support for mid-career employees.

――What are your thoughts on using generative AI?

Moving forward, the utilization of generative AI will be a key focus. As a company driving digital transformation, we cannot lag behind in technological innovation. First, we plan to integrate generative AI into all major products we develop going forward to enhance operational efficiency across a wide range of applications.

Furthermore, for these new products and features, we will first promote their utilization within the Sales Division and accumulate various know-how using our company as a model. We aim to make these available to our customers as needed. To that end, we will continue to incorporate generative AI into our business, and make it a good companion and ally.

――What message would you like to share to your valued stakeholders?

We will continue to face the world's challenges head-on through technology, delivering products that embody WingArc1st's unique spirit, and strive to remain an organization dedicated to bring smiles to the world through data utilization.

In today's society, where generative AI is profoundly transforming our world, I believe we are entering an era where a person's uniqueness and corporate identity will be increasingly looked into. In this context, we will continue to refine our uniqueness. Moreover, as a company that leads our customers' transformation and is chosen for its compelling sales approach, we will continue to provide value that is suited for the times ahead.

We are confident that our solutions can address the challenges of local governments.
With demand expanding, we decided to make a full-fledged entry into the market.

――What is the current situation of the DX market for local governments?

The DX market for local governments continues to expand. Underlying factors behind this are the national government's promotion of the standardization of local government information systems and the transition to a Government Cloud environment. Currently, transition is mandated by the end of fiscal year 2025 as a general rule, and this is strongly driving the DX of local governments.

――Amidst these conditions, please tell us about your objective in establishing the new PSE.

We established the PSE to make a full-fledged entry into the public sector market and to speedily address the challenges faced by local governments. Our company has long supported the DX efforts of local governments in Kitakyushu City, Fukuoka Prefecture, and Izumi City, Osaka Prefecture. Through these initiatives, we realized that local governments face unique and complex challenges when it comes to the DX of their operations. We felt confident that the solutions we provide could resolve those challenges and further contribute to improving resident services, the next step after the DX of operations.
Among these, the 2025 deadline for migrating local government information systems should be one of the most important milestones for us as well. As the demand for DX of local governments grows, we aim to fully enter this market through commercialization and help solve the challenges of more municipalities with our solutions.

――Please tell us about PSE's mission.

Our mission is to become an agent of change in society. To achieve this, we will not only address the standardization of local government information systems, but also help improve resident services by utilizing data such as resident information. Data becomes more valuable when it is connected. By utilizing data to provide comprehensive DX services from operational improvements to resident services, we will build a society where residents can live comfortably.
To achieve our mission, we need speed, the ability to execute, and the ability to build relationships of trust. While this also applies to businesses, one issue in the IT systems of local governments can lead to losses for many people. Guided by our core value of "Build the Trust," we are committed to building even greater trust.

To address challenges arising from the standardization of local government information systems, we offer a comprehensive range of solutions spanning from operational support to resident-facing services.

――What kinds of challenges do local governments currently face?

Local governments find it difficult to introduce new IT systems due to a shortage of digital talent combined with high costs. Since they use multiple systems in combination, they also require complex processes for data management and utilization. This results in manual data bucket brigades. In other words, people have to take action to utilize data.
While this situation may improve to some degree through the standardization of local government information systems, new challenges have also been emerging. For example, how should policies previously implemented independently by large local governments be integrated into new systems? Additionally, how can the data stored in new systems be used to improve operational efficiency and enhance resident services? We plan to address such issues that will arise following transitions to new systems.

――How will you address these challenges?

PSE has already been offering Govlong, a comprehensive business platform for local governments, since October 2024. Govlong's main services are solutions for standardizing local government information systems and solutions for internal information systems. These services support the core operations of local governments and internal administrative tasks. They also provide essential administrative content alongside form and aggregation functions (covered by our products SVF, invoiceAgent, Dr.Sum, and MotionBoard) that are not implemented under the standardization of local government information systems. This will contribute to the effective utilization of local government data, paperless internal documents, and electronic payments.

In addition, WingArcNEX, which joined the group in June 2025, offers services for residents such as SMART L-Gov for website management, the online government platform, GaaS, and online facility reservation service Rakuriza. Through these services, we will support the DX of local governments from both internal and external perspectives. We will establish a cooperative framework in development and distribution channels in cooperation with package vendors for local governments and system integrators, which is one of our strengths.

――Could you share any current achievements in the public sector field?

As part of our solutions for standardizing local government information systems, we are currently working with Kyoto City to migrate its Population Statistics System. To be specific, the resident data stored in the new system will be statistically processed using Govlong, and then used for population statistics. We expect this initiative to help reduce costs, improve statistical operations, and improve staff literacy about data utilization. The official launch is scheduled for January 2026, and a trial is currently underway. We have also begun hypothesis testing to see if data from the new system can also be used in welfare and childcare support in the future.

We will expand our business by replicating solutions for local governments that face the same challenges.
Our products, expertise, and network serve as our strengths.

――Please tell us about PSE's growth strategy.

PSE's growth strategy is based on the following three policies:

1. Expand business by forming an ecosystem
We will secure market share in the public sector by collaborating with vendors that handle various solutions compliant with the standards for standardizing local government information systems and offering systems that incorporate our company's form and aggregation system functions.

2. Strengthen partnerships with major cities and then carry out horizontal rollout to other local governments
First, we will develop new solutions in collaboration with major cities. Since all municipalities share similar operations and challenges, we will expand our business by replicating successful projects across other municipalities after developing a lead project.

3. Create new services to promote DX in local governments
After the standardization of information systems, we will create new services for front yard reforms such as utilizing the data stored in these systems to streamline internal operations.
For example, we plan to create services that many people will find convenient, such as an automated assessment system that will allow residents to find out whether they qualify for conditional government subsidies.

――What role will WingArcNEX, which recently joined the group, play?

The subsidiaries in the PSE domain include WingArcNEX and TRYSERVE Co., Ltd. (TRYSERVE). Within these subsidiaries, WingArcNEX will be responsible for resident-facing services, and will contribute to the improvement of those services. WingArcNEX already has around 400 users of its local government website management service. It plans to continue leveraging this network to expand its share in the frontend area of local governments. Meanwhile, TRYSERVE will handle the development, implementation, operation, and maintenance of various frontend and backend systems, such as core operations and internal management. We plan to work with these two companies to provide comprehensive support for the DX of local governments across Japan, while continuing to place importance on relationships of trust.

――Please tell us about your competitive edge in the DX market for local governments.

First, we have existing products capable of data analysis and utilization, along with advanced expertise in handling data. As the need for data utilization in local governments increases, we expect the demand for our products and expertise to increase as well.
Second, we have an extensive partner network, which allows us to form an ecosystem and capture a significant market share. With regards to the standardization of local government information systems, we have already established relationships with vendors and partner companies, leading to market share gains. Going forward, we hope to further leverage this to become a market leader in the local government DX.
Third, we offer solutions that cover the entire scope of DX for local governments, from systems that support operations to resident services. While the majority of companies only offer one solution or the other, we at PSE can provide the entire package. This is a major advantage that can help us appeal to local governments.

Our goal is to achieve local government DX through data and build a sustainable future for public services.

――What message would you like to share to your valued stakeholders?

To maintain and strengthen public services in a society with a declining population, we need to make the most of the power of digital technology and bring about social change. We believe that by connecting data through various solutions, we can contribute to creating a sustainable future where residents can live comfortably while reducing personnel and financial burden. We will achieve a sustainable future by contributing to society and working with integrity. Through this, PSE will become a key pillar supporting WingArc1st's growth alongside BDE (Business Data Empowerment - Strategic Business Unit), and meet the expectations of our shareholders. We appreciate your anticipation for the future development of PSE.