Summary

 i Cubed Systems, Inc. is a SaaS company focused on mobile device management (MDM) services for enterprises. Through its flagship product, “CLOMO MDM,” the company centrally manages corporate smartphones, tablets, and other devices, enhancing security measures and improving operational efficiency. It maintains a flexible customer support structure tailored to client needs and sustains high reliability by leveraging partnerships with NTT DOCOMO, Inc. and Soraniwa, Inc..

For the fiscal year ended June 2024, the company achieved consolidated net sales of ¥2,949 million, representing a 10.7% year-on-year increase. Growth was primarily driven by the expansion of the CLOMO business, with the number of corporate customers reaching 6,710 and the customer base continuing to expand. Operating profit rose 11.9% year on year to ¥692 million, although rising cost of sales warrants attention.

i3 Systems has maintained the No. 1 market share in the MDM market for 14 consecutive years, sustaining its competitive advantage by offering products that meet particularly high security standards. As part of its future growth strategy, the company plans to strengthen its approach to the healthcare and government sectors, expand the functionality of the CLOMO business, and pursue initiatives to acquire new customers.

Under its mid-term management plan, the company aims to increase consolidated net sales from ¥3.8 billion to ¥5.0 billion, targeting an annual growth rate of 30%. It also intends to reinforce development resources through M&A and promote international expansion to achieve sustainable growth. For investors, shareholder returns through a stable dividend policy and share buybacks are attractive features, and continued growth is expected, supported by a solid financial foundation. While performance volatility factors, industry-specific risks, and overseas expansion risks must be considered, the company is expected to achieve further growth by continuing to respond swiftly to customer needs.

1. Financial Overview for the Fiscal Year Ended June 2024

For the fiscal year ended June 2024, i3 Systems recorded consolidated net sales of ¥2,949 million, up 10.7% year on year. This growth was driven by the expansion of its core CLOMO (mobile device management) business, with the number of adopting corporate clients reaching 6,710, a 36.1% increase year on year.

Operating profit increased 11.9% year on year to ¥692 million, maintaining an operating margin of 23.5%. However, attention should be paid to rising cost of sales, which reached ¥761 million—an increase of ¥147 million (24.1%) from ¥613 million in the previous year. This increase was attributable to development investments and M&A activities, which may place short-term pressure on profit margins.

Ordinary profit reached ¥668 million and net profit attributable to owners of the parent totaled ¥559 million, both achieving year-on-year growth. Total assets stood at ¥3,399 million, with an equity ratio of 69.3%, reflecting a stable financial base. Current assets amounted to ¥2,646 million, maintaining a sound current ratio. Operating cash flow reached ¥1,022 million, and free cash flow remained stable. Return on equity (ROE) was 15.7%, indicating financial efficiency.

Going forward, the company aims to achieve sustainable growth through further expansion of the CLOMO business and the creation of new businesses, while continuing to enhance customer satisfaction and maintain competitiveness. In particular, strengthening its approach to healthcare institutions and government agencies will be key to sustaining its competitive edge. For investors, the growth potential of the CLOMO business and effective risk management are critical considerations.

2. Earnings Outlook for the Fiscal Year Ended June 2024

For the fiscal year ended June 2024, the company forecasts consolidated net sales of ¥2,949 million, operating profit of ¥692 million, ordinary profit of ¥668 million, and net profit of ¥559 million, all representing year-on-year growth.

The expansion of the CLOMO business remains the primary growth driver, with the number of adopting corporate clients reaching 6,710, up 36.1% year on year. This growth is supported by increasing demand for mobile device management driven by corporate digital transformation (DX) initiatives and the widespread adoption of remote work.

Strategically, enhancing the functionality of CLOMO MDM and implementing measures to acquire new customers will remain priorities. In particular, expanding into healthcare institutions and government markets will be key to maintaining competitiveness.

Although the operating margin remains stable at 23.5%, rising cost of sales—stemming from development investments and M&A—may impact short-term profitability. Meanwhile, operating cash flow continues to grow steadily, creating a positive cycle that enables investment in new projects. The company is expected to achieve sustainable growth by expanding its customer base and launching new services, thereby presenting an attractive growth story for investors.

3. Medium- to Long-Term Growth Strategy

In its mid-term management plan targeting the fiscal year ending June 2026, i3 Systems seeks sustainable growth through the expansion of the CLOMO business. Specifically, it aims to increase consolidated net sales from ¥3.8 billion to ¥5.0 billion, targeting an annual growth rate of 30%.

To achieve this growth, expanding the customer base and creating new businesses are positioned as key initiatives. In particular, the company plans to increase customer numbers by leveraging OEM supply arrangements with the NTT Docomo Group. Additionally, it aims to improve ARPU (average revenue per user) by expanding operational support services and enhancing advanced security features.

As part of its M&A strategy, the company has made 10KN COMPANY LIMITED in Vietnam a subsidiary to strengthen development resources. By leveraging both domestic and international talent, it seeks to accelerate project execution.

For new business creation, the company has established a dedicated internal department to bring in-house ideas to fruition and expand into broader markets. Within the CLOMO business, it plans to offer industry-specific services tailored to sectors such as healthcare and education, thereby diversifying revenue streams.

To improve ARPU, expanding optional services and responding precisely to customer needs will be essential, along with enhancing customer satisfaction. In terms of risk management, the company must continuously reassess and address risks associated with the rapidly evolving IT market and cybersecurity threats.

Through these multifaceted initiatives, i3 Systems is expected to continue growing while maintaining leadership in the MDM market.

・ In the fiscal year ended June 2024, i3 Systems achieved consolidated net sales of ¥2,949 million, recording 10.7% year-on-year growth driven by the expansion of the CLOMO business. Operating profit increased 11.9%, though rising cost of sales requires attention. Strengthening its approach to healthcare institutions and government markets will be key to maintaining competitiveness.

・ For the fiscal year ended June 2024, consolidated net sales of ¥2,949 million and operating profit of ¥692 million are projected, with expansion into healthcare and government sectors positioned as a critical competitive factor.

・ Targeting the fiscal year ending June 2026, the company aims to increase consolidated net sales from ¥3.8 billion to ¥5.0 billion through expansion of the CLOMO business, broadening its customer base, creating new businesses, and executing an M&A strategy to achieve sustainable growth.

Business Overview

1. Overview of the Business Model

i Cubed Systems, Inc. is a SaaS company primarily engaged in mobile device management (MDM) services for enterprises. Its flagship product, “CLOMO MDM,” provides a comprehensive solution that centrally manages a wide range of corporate-owned devices, including smartphones, tablets, and mobile PCs, enhancing security measures and improving operational efficiency. The service offers diverse functionalities such as remote monitoring, remote data wiping, and policy enforcement, thereby reducing the burden on corporate IT departments and streamlining operations.

A key feature of i3 Systems’ business model is its flexible customer support structure, which adapts to customers’ usage conditions and needs. In addition to its proprietary software development, the company has built a strong support network through partnerships with NTT DOCOMO, Inc. and Soraniwa, Inc.. This enables the company to provide customer-oriented services from implementation through post-deployment support, maintaining a high level of trust.

Furthermore, i3 Systems adopts a monthly subscription-based revenue model, ensuring stable recurring income as customers continue to use its services. The ongoing advancement of corporate digital transformation (DX) and the widespread adoption of remote work have significantly increased demand for CLOMO MDM, strongly suggesting continued future growth.

2. Main Business Segments

i3 Systems divides its operations into two primary segments: the “CLOMO Business” and the “Investment Business.”

The CLOMO Business is the company’s core segment, centered on the mobile device management service “CLOMO MDM,” and provides a variety of enterprise-focused services. CLOMO MDM includes numerous features designed to enable centralized management of corporate mobile devices and reduce unnecessary administrative work. This enhances corporate information security and enables employees to perform their duties more efficiently.

In recent years, the company has particularly strengthened its expansion into the healthcare and government sectors. These markets have extremely high security requirements, allowing the company to fully leverage the strengths of the CLOMO Business by providing services tailored to such strict standards.

Meanwhile, the Investment Business conducts investment activities in startup companies through iCubed Ventures, seeking synergies with the CLOMO Business. By investing in companies possessing assets and expertise, the firm aims to expand into new businesses and markets. This structure allows the growth of portfolio companies to contribute to its own growth. In this way, the CLOMO Business and the Investment Business play complementary roles in supporting the company’s overall growth strategy.

3. Market Position and Competitive Advantages

i3 Systems has established a solid position in the MDM market, maintaining the No. 1 market share for 14 consecutive years. In particular, CLOMO MDM has received “Android Enterprise Recommended” certification, reinforcing its strong credibility among customers. This recognition contributes to the acquisition of new clients and an increase in repeat customers.

The company’s most significant competitive advantage lies in its ability to provide products that meet high security standards. In particular, its registration under ISMAP provides a substantial advantage when serving government agencies and other customers with stringent security requirements, positioning the company as a highly reliable option. As a result, i3 Systems possesses the resilience needed to compete effectively in an increasingly competitive market environment.

Additionally, the breadth of its customer support and the speed of feedback further strengthen its competitive edge. The development team responds flexibly to customer requests, continuously improving products and adding new features. This differentiation from competing products contributes to long-term customer satisfaction and reinforces the company’s strong market position.

4. Market Background

The MDM market is experiencing rapid growth, driven in large part by the expansion of remote work and the advancement of digital transformation (DX). According to market research, the MDM market is projected to reach ¥18.7 billion in 2024 and ¥28.0 billion in 2028, reflecting growing demand for mobile device management within enterprises.

Frequent incidents of data breaches and cyberattacks have heightened corporate awareness of security risks, further increasing demand for MDM services. Consequently, demand for CLOMO MDM is expected to continue expanding.

Moreover, as government digitalization progresses, demand for CLOMO in public sector markets is expected to grow. With increasingly stringent security standards in government agencies and specific industries, CLOMO MDM is well positioned as a product capable of meeting these requirements.

Against this market backdrop, i3 Systems must continue capturing new business opportunities while enhancing customer satisfaction and maintaining competitiveness. Expanding the functionality of CLOMO MDM and implementing measures to acquire new customers will be key drivers of sustainable growth.

5. Future Outlook

Looking ahead, key focus areas for i3 Systems include expansion into new business domains and further growth of the CLOMO Business. In particular, strengthening its approach to the healthcare and government markets will be crucial for maintaining competitiveness and capturing additional revenue growth and market share.

Technological innovation and new product development will also be important, requiring the addition of features and services aligned with evolving customer needs. By reinforcing its customer support functions and enhancing development capabilities, the company aims to improve customer satisfaction and secure stable revenues.

Further development of the Investment Business will also be critical, with strategic investments in new market opportunities expected to support long-term growth. Through these multifaceted initiatives, i3 Systems is expected to continue expanding while maintaining leadership in the MDM market.

Building on its past achievements, the company is well positioned to achieve further growth by continuing to provide services that swiftly and effectively meet customer needs.

Performance Trends

1. Overview of Recent Performance

i Cubed Systems Inc. recorded consolidated net sales of ¥2,949 million for the fiscal year ended June 2024, representing a 10.7% year-on-year increase. This growth was driven by the expansion of its CLOMO (mobile device management) business. Specifically, the number of corporate clients adopting the service reached 6,710, up 36.1% year on year, demonstrating continued expansion of its customer base.

Over the past three years, the company has consistently delivered steady performance growth. Net sales increased from ¥2,029 million in 2021 to ¥2,454 million in 2022 and ¥2,665 million in 2023, reflecting rising demand for enterprise mobile device management services. However, sustaining this growth will require new investments and strategic adjustments.

From an expert perspective, as long as the CLOMO business continues to perform successfully, ICubed Systems is expected to maintain a stable growth trajectory. In particular, its OEM agreement with NTT DOCOMO, INC. is anticipated to further expand its customer base. From an investor standpoint, key considerations include future growth potential and risk management, with further development of the CLOMO business being central to both.

2. Income Statement Analysis

An analysis of the income statement for the fiscal year ended June 2024 shows operating profit of ¥692 million, up 11.9% year on year. The operating margin remained stable at 23.5%. However, rising cost of sales requires attention. Cost of sales reached ¥761 million, an increase of ¥147 million (24.1%) from ¥613 million in the previous year. This increase was attributable to development investments and M&A activities—investments aimed at future growth but potentially exerting short-term pressure on profit margins.

Gross profit reached ¥2,187 million, up 6.6% year on year, largely reflecting the expansion of the CLOMO business. Meanwhile, selling, general and administrative expenses rose to ¥1,495 million, a 4.4% increase from the previous year. Effective cost control will be essential to enhancing corporate value, particularly in maintaining profitability.

Ordinary profit totaled ¥668 million, up 9.6% year on year, and net profit for the period reached ¥559 million. This growth includes the impact of newly acquired subsidiaries, with further expansion anticipated. From an investor’s perspective, it is important to assess whether these indicators are sustainable in alignment with the company’s overall business strategy.

3. Balance Sheet Analysis

The balance sheet as of June 2024 shows total assets of ¥3,399 million, representing an increase from the previous year. The equity ratio stood at 69.3%, reflecting a stable financial foundation. Current assets amounted to ¥2,646 million, with cash and deposits comprising the majority, indicating strong short-term liquidity and a healthy current ratio.

Accounts receivable increased, which may impact cash flow and therefore warrants close monitoring. Non-current assets totaled ¥754 million, mainly reflecting increases in intangible assets and investment securities. These increases are part of the company’s M&A-driven growth strategy, and the effectiveness of these investments should be carefully evaluated going forward.

Total liabilities amounted to ¥826 million. The absence of interest-bearing debt is a key strength. However, the company’s increasing reliance on certain business partners suggests that diversification is an urgent priority. Improving the efficiency of fixed asset utilization and exploring appropriate financing methods will be important to maintaining long-term financial soundness.

4. Cash Flow Statement Analysis

The cash flow statement for the fiscal year ended June 2024 shows stable growth in operating cash flow, which reached ¥1,022 million. This has created a positive cycle in which sufficient funds are generated to finance investments in new projects. Free cash flow also remains stable, ensuring financial flexibility to support future growth initiatives.

In particular, investing cash flow reflects expanded resources through M&A activities. Collaboration with newly acquired companies is expected to generate additional growth opportunities and contribute to long-term revenue expansion. The strength of cash flow from operating activities underpins the company’s stable operations.

Investors should carefully analyze cash flow trends to assess future growth potential, particularly in terms of expanded investment areas and capital allocation strategies.

5. Analysis of Key Performance Indicators

Looking at overall performance indicators, return on equity (ROE) showed strong growth, reaching 15.7% in 2024. This figure reflects financial efficiency and provides reassurance to shareholders. Return on assets (ROA) also remains favorable, indicating improved asset utilization efficiency.

EBITDA (earnings before interest, taxes, depreciation, and amortization) reached ¥1,009 million, continuing its growth trend. ICubed Systems intends to further advance its management strategy using these performance indicators, with a focus on establishing a sustainable profit structure.

These indicators are closely linked to future strategic initiatives, and investors should monitor how the company responds to market changes through its performance management.

ICubed Systems has established a strong position in the enterprise mobile device management market, and its growth potential continues to expand. However, maintaining profit margins, controlling costs, and ensuring consistency across performance indicators will be key challenges going forward. With continued expansion of its customer base and the launch of new services, further growth is anticipated, warranting close attention to future developments.

Mid-Term Management Plan and Growth Strategy

1. Overview of the Mid-Term Management Plan

i Cubed Systems, Inc. has clearly stated in its mid-term management plan, which targets the fiscal year ending June 2026, that it aims to achieve sustainable growth. At the core of this plan is the expansion of the CLOMO business to increase consolidated net sales from ¥3.8 billion to ¥5.0 billion, representing a planned annual growth rate of 30%. Expanding the customer base and creating new businesses are positioned as key initiatives within the plan.

Particular emphasis is placed on the CLOMO business, with a strategy to increase customer numbers by leveraging OEM supply to the NTT DOCOMO, INC. Group. In addition, the company aims to improve ARPU (Average Revenue Per User) by enhancing operational support services and expanding advanced security features. At the same time, it plans to review its strategies flexibly in order to adapt to changes in the business environment.

Through these initiatives, the company intends to build a foundation for sustainable growth, strengthen its competitiveness, and enhance corporate value. For investors, the clearly defined growth targets and concrete measures make it easier to assess the company’s growth potential.

2. Investment Plan and Strengthening of Facilities and R&D

Based on its mid-term management plan, the company has formulated an investment strategy that prioritizes capital expenditures and research and development. To strengthen development resources, it implemented an M&A strategy in 2024 by making 10KN COMPANY LIMITED in Vietnam a subsidiary, addressing the shortage of system engineers. This approach is expected to leverage not only domestic but also international talent resources, enabling faster project execution.

Specifically, the company plans to expand data center capacity and reinforce its cloud infrastructure to ensure more stable provision of CLOMO MDM services. It also places importance on R&D aimed at improving the quality of existing services, including version upgrades with new features and enhanced security functions. These investments are expected to increase customer satisfaction and, ultimately, contribute to higher profitability.

Additionally, the company plans to enhance internal training programs to improve engineers’ skills, which should further increase development efficiency. Strengthening the growth foundation through investment is essential to sustaining competitive advantages and is expected to contribute to medium- to long-term profitability for investors.

3. Creation of New Businesses and Segment-Specific Growth Strategies

The company’s strategy for creating new businesses centers on innovative initiatives that extend from the CLOMO business. A newly established dedicated department is tasked with transforming internal ideas into concrete businesses and expanding into broader markets. Maximizing internal resources in this way is expected to promote sustainable growth.

Within the CLOMO business, expansion of the customer base through OEM supply to the NTT Docomo Group is anticipated. By providing industry-specific services tailored to sectors such as healthcare and education, the company can address new needs and diversify revenue sources. In particular, expansion into the healthcare field is expected to align with increasing demand driven by the adoption of electronic medical records and related digital systems.

Furthermore, through its investment business, the company aims to promote innovation by investing in startups via a corporate venture capital (CVC) fund, thereby gaining access to new philosophies and technologies. Such initiatives are expected to generate diverse business opportunities while maintaining competitiveness alongside the company’s own growth.

4. Measures to Improve ARPU and Strengthen Customer Engagement

Improving ARPU (Average Revenue Per User) is a key indicator of sustainable growth for the company. To achieve this, it plans to expand optional services and respond more precisely to customer needs. Specifically, it intends to enhance the functionality of CLOMO MDM and strengthen its support framework to further increase customer satisfaction.

By delivering services that exceed user expectations, the company seeks to earn customer trust and increase repeat business. It also plans to strengthen communication with users and reflect customer feedback in service improvements and new feature development, thereby enhancing customer loyalty. This is expected to improve retention rates and ultimately drive ARPU growth.

Efforts to improve ARPU are not limited to short-term revenue increases but are critical to long-term market share expansion and corporate value enhancement. Successful implementation of these initiatives would create an attractive growth narrative for investors.

5. Risk Management and Adaptation to the Market Environment

The company emphasizes establishing a structure capable of responding flexibly to changes in the business environment. In particular, it recognizes the need for continuous risk assessment and countermeasures in response to the rapidly evolving IT market and growing cybersecurity threats. By differentiating itself from competitors and responding swiftly to shifts in customer needs, it aims to secure sustainable growth.

As it advances a sector-focused approach, the company is also strengthening partnerships and deepening relationships with customers. This strategy enhances trust and fosters long-term relationships, improving the company’s ability to adapt to market conditions and maintain a competitive edge.

Strengthening risk management also provides investors with greater confidence and demonstrates the flexibility of the company’s management strategy. Maintaining such a posture is essential to achieving sustainable growth.

Overall, the mid-term management plan and growth strategy of ICubed Systems are supported by clearly defined strategic initiatives grounded in a strong vision. Through the steady execution of these measures, the company is expected to enhance investor confidence and further strengthen its competitive position. Its future developments warrant close attention.

News & Topics

1. Expansion and Growth of the CLOMO Business Customer Base

i Cubed Systems, Inc. significantly expanded the customer base of its enterprise mobile device management service “CLOMO” in the fiscal year ended June 2024, with the number of adopting corporate clients reaching 1,781. This marked growth led to a 10.7% year-on-year increase in net sales to ¥2,949 million. Operating profit also reached ¥692 million, up 11.9% from the previous year. These results highlight the growing importance of CLOMO as companies accelerate their digital transformation (DX) initiatives.

Experts view this growth as a reflection of increasing demand for mobile device management. As companies continue investing in digitalization and security measures, CLOMO has gained traction as a solution that effectively addresses these needs. For investors, the strong rebound and expansion of the CLOMO business indicate not only short-term growth momentum but also highly promising medium- to long-term strategic potential.

2. Strengthening Partnership with Google

The company was certified as a Gold Partner in the Android Enterprise Partner Program provided by Google. This certification is an important factor in enhancing the quality of CLOMO services and strengthening customer support, thereby increasing the reliability of CLOMO MDM. In addition, CLOMO has obtained the Android Enterprise Recommended certification, enabling enterprises to adopt the service with greater confidence.

Experts suggest that this partnership serves as a key strategy for establishing a competitive advantage. High evaluations in the management of mission-critical mobile devices are expected to contribute to future customer acquisition and new market development. For investors, the strengthening partnership is likely to generate long-term benefits as the CLOMO business continues to mature.

3. New Services to Enhance Security Capabilities

To improve ARPU (average revenue per user) for the CLOMO service, the company announced the launch of new optional services. In collaboration with Check Point Software Technologies, it added “Harmony Mobile,” and through partnership with TeamViewer, it introduced “TeamViewer Remote.” These services offer advanced security features and are expected to enhance both operational efficiency and safety for customers. In an era of increasing cyberattacks, such solutions are particularly significant.

Experts believe that these enhanced security measures not only strengthen competitiveness in the market but also increase customer satisfaction and trust in CLOMO. From an investor’s perspective, these initiatives reinforce CLOMO’s market position and support stable recurring revenue, making them a crucial component of future growth.

4. M&A Strategy for Securing Talent

Amid a growing shortage of engineers in Japan, the company strengthened its development capabilities by making 10KN COMPANY LIMITED, based in Vietnam, a subsidiary. Through this M&A, it has secured highly skilled engineers and expanded its medium- to long-term development resources. This initiative is also a key means of supporting business expansion and enhancing technological capabilities.

Experts consider talent acquisition through M&A to be a critical investment that will shape future competitiveness. By expanding development resources, the company is better positioned to respond swiftly and effectively to customer needs. Such a strategy provides reassurance to investors and lays the foundation for sustainable corporate growth.

5. Registration on the ISMAP Cloud Service List

CLOMO has been registered on the ISMAP (Information System Security Management and Assessment Program) cloud service list. This registration enhances the credibility and security profile of CLOMO, particularly facilitating access to government and public-sector customers. ISMAP registration demonstrates compliance with government-required security standards, strengthening trust in the public sector market.

Experts predict that such certification will accelerate customer acquisition and new market expansion, contributing to corporate growth. For investors, CLOMO’s enhanced credibility and potential to secure new customers represent an important driver of revenue growth.

6. Enhancement of the Internal Environment and Talent Development

The company places strong emphasis on respecting employee diversity and improving its internal work environment. The introduction of remote work and a full-flex time system has enhanced workplace flexibility and increased employee satisfaction, with significant productivity improvements expected. Additionally, strengthened training and on-the-job training (OJT) programs support employee growth and contribute to a positive corporate culture.

Experts evaluate these initiatives as factors that promote overall corporate growth, noting that improvements in the work environment enhance competitive advantage. For investors, a corporate culture that values talent development and diversity serves as an important indicator of future performance and long-term growth potential.

Across these sections, the company’s current initiatives and strategic direction demonstrate a proactive response to changing market conditions. By implementing measures aligned with evolving demands, it is expected to sustain long-term growth. Continued reinforcement of these growth drivers is likely to attract increasing attention from investors in the future.

Company Overview

1. Basic Information

i Cubed Systems, Inc. is a company specializing in enterprise mobile device management services, headquartered in Fukuoka City, Japan. Founded in September 2001, the company has focused on providing centralized management services for corporate smartphones, tablets, PCs, and other mobile devices. Its flagship offering is the mobile device management (MDM) service “CLOMO MDM,” which enables enterprises to address critical information security challenges.

The company operates sales offices nationwide. In addition to its Fukuoka headquarters, it maintains offices in Sapporo, Sendai, Nagoya, Osaka, and Hiroshima, serving a diverse customer base across Japan. With capital of ¥413,018,600, the company has established a stable financial foundation. The Representative Director and President is Tsutomu Sasaki. The company continues to focus on the growing SaaS market and transitioned to the Growth Market of the Tokyo Stock Exchange in fiscal year 2022. A key strength of iCubed Systems lies in its flexible service offerings tailored to corporate needs and its emphasis on building strong relationships of trust with customers.

2. History and Key Milestones

Since its founding, iCubed Systems has achieved numerous important milestones. Established in 2001 as a sole proprietorship, the company was incorporated in 2004. Within just a few years, it began expanding its business, and in 2010 it opened a Tokyo office in Minato Ward, accelerating its entry into major metropolitan markets.

In 2011, the company launched its proprietary MDM service, “CLOMO MDM.” In 2016, the service was certified as a Google EMM product, strengthening its credibility within the industry. In 2019, it obtained “Android Enterprise Recommended” certification, further enhancing its brand value. In 2020, the company was listed on the Mothers Market of the Tokyo Stock Exchange and subsequently transitioned to the Growth Market in 2022, opening new avenues for fundraising and expansion. Looking ahead, the company plans to establish a new subsidiary in Vietnam in 2024 and to acquire an existing company as a subsidiary in 2025, reflecting expectations for proactive international expansion and new market development.

3. Organizational Structure and Key Management

iCubed Systems maintains a clear organizational structure supported by a professional management team, enabling efficient corporate governance. Representative Director and President Tsutomu Sasaki brings extensive experience in the IT industry and a strong technical background. The company’s management strategies are formulated based on his corporate vision. Product development is driven by both technological innovation and market demand, with particular strengths in MDM and security-related services.

The executive team possesses deep expertise in their respective fields and plays key roles in strategic planning and new business development. The company also actively promotes diversity and talent development, implementing policies that foster employee growth. Through its well-defined organizational framework and strong leadership, iCubed Systems sustains continuous growth.

4. Business Operations and Market Positioning

The core of iCubed Systems’ operations is the CLOMO business. Through this segment, the company provides enterprise mobile device management and business applications, helping organizations improve IT operational efficiency and enhance security. SaaS-based offerings such as “CLOMO MDM” and “CLOMO SECURED APPs” are designed to respond flexibly to evolving customer needs.

By delivering solutions to address increasing security risks faced by enterprises, the company has established a competitive position in emerging markets. Partnerships related to Apple and Android device management further strengthen its competitiveness, particularly as digitalization continues to accelerate. The company also supports investment initiatives, aiming for additional growth through investments in technology-related startups.

5. Geographic Expansion and International Strategy

By expanding its sales network both domestically and internationally, iCubed Systems provides highly accessible services. While headquartered in Fukuoka, the company operates multiple sales offices across regions including Hokkaido, Tohoku, and Kansai, addressing a broad range of customer needs. As part of its strategy to enter new markets, the company plans to establish a subsidiary in Vietnam in 2024, further strengthening its international business development.

Its regionally rooted service strategy enhances customer relationships and is likely to prove effective in future international expansion. As the domestic market matures, rapidly increasing IT demand across Asia is expected to present new growth opportunities for the company.

6. Organizational Culture and Talent Development

iCubed Systems fosters an organizational culture that respects diversity and promotes growth. The company actively advances diversity and inclusion initiatives, creating an environment in which employees from all backgrounds can share and respect diverse perspectives. This multifaceted corporate culture contributes to more effective problem-solving and innovation.

The company also takes a proactive approach to talent development, enhancing training systems and offering programs focused on new technologies. By delegating authority to mid-career employees and young engineers, it cultivates a foundation for innovation and sustainable growth. Through these efforts, iCubed Systems maintains a positive work environment that supports long-term success.

7. ESG and Sustainability Initiatives

iCubed Systems recognizes that addressing ESG (Environmental, Social, and Governance) issues and sustainability is essential for corporate growth. The company promotes environmentally conscious and sustainable business operations while fulfilling its social responsibilities. Specific initiatives include encouraging the use of clean energy and providing products that contribute to a circular economy.

The company also engages in social contribution and community initiatives, emphasizing strong relationships with local communities. These efforts not only enhance corporate reputation but also reinforce its broader social responsibility. Going forward, the company is expected to further clarify its sustainability policies and link them to long-term enhancement of corporate value.

iCubed Systems carefully builds each essential component necessary for corporate growth. Through collaboration across departments and proactive engagement with social challenges, the company is well positioned for continued development. With a variety of strategic initiatives underway, its future progress merits close attention.

Shareholder Returns

1. Dividend Policy and History

i Cubed Systems, Inc. positions shareholder returns as a core pillar of its management strategy and emphasizes the stable payment of annual dividends as part of its commitment to sustainable growth. Beginning with the fiscal year ending June 2026, the company plans to introduce an interim dividend system, with an annual dividend of ¥34 per share. This reflects its continued ability to generate stable earnings and its commitment to consistently distributing profits to shareholders.

Over the past several years, dividends have shown an upward trend. In the fiscal year ended June 2022, the company set an annual dividend of ¥32 per share. It also plans to maintain the same dividend level for the fiscal year ended June 2024, with a payout ratio of approximately 30%. By aligning shareholder returns with profit growth, the company aims to meet shareholder expectations and strengthen relationships of trust.

Furthermore, the company maintains a high equity ratio of 71.2%, demonstrating strong financial stability. This solid capital base supports its ability to withstand fluctuating market conditions while continuing stable dividend payments, thereby providing reassurance to shareholders. iCubed Systems intends to maintain this stable dividend policy while pursuing further growth investments and meeting shareholder expectations.

2. Share Buybacks and Their Impact

The company enhances shareholder returns through share buybacks. By reducing the number of outstanding shares, buybacks are expected to increase earnings per share (EPS), thereby enhancing shareholder value. In 2025, the company resolved to acquire 220,000 shares for a total of ¥404 million. This initiative is expected to increase share scarcity and support the stock price.

The implementation of share buybacks is often interpreted as a signal of management’s confidence in future growth, generating a positive impression in the market. While contributing to short-term stock price stability, this measure also supports long-term corporate value enhancement. At the same time, efficient capital utilization allows the company to secure sufficient cash resources for executing its growth strategy.

As the company continues its share buyback initiatives, effective communication with shareholders will remain essential. By maintaining a transparent capital policy and strengthening investor trust, iCubed Systems aims to further enhance its potential for sustainable growth and solidify its position as an attractive investment.

3. Total Shareholder Return Ratio and Its Significance

As part of its shareholder return policy, the company adopts a strategy that emphasizes the total shareholder return ratio. For the fiscal year ending June 2025, it forecasts a total return ratio of 30%, combining dividends and share buybacks. This metric serves as an important indicator of the company’s commitment to returning profits to shareholders while pursuing sustainable growth.

By implementing both dividends and share buybacks in tandem, shareholders benefit from stable cash flow while also potentially gaining long-term value from increased share scarcity. The integration of these strategies enhances corporate recognition and market value, making the company increasingly attractive to investors.

A relatively high total return ratio also signals corporate reliability and financial stability, further supporting expectations for future growth. Investors should evaluate shareholder return trends in conjunction with the company’s growth potential and sustainability.

4. Financial Soundness and Shareholder Returns

A strong financial foundation is a prerequisite for executing shareholder return policies. With an equity ratio of 71.2%, iCubed Systems maintains a high level of financial stability, enabling steady operations even in challenging market environments. This strong capital structure allows the company to pursue growth strategies without excessive reliance on debt, providing a solid base for consistent profit distribution to shareholders.

Healthy financial conditions not only enhance investor confidence but also strengthen resilience against potential economic downturns. By effectively utilizing cash flow generated from past performance, the company improves its capacity to sustain stable dividend payments and maintain a reliable return environment. Moreover, a robust financial base supports new investments and strategic initiatives aimed at future growth.

For investors, assessing shareholder returns in light of financial soundness is essential. iCubed Systems is expected to continue strengthening its financial base while maintaining its shareholder return policy, thereby enhancing overall corporate value.

5. Communication with Investors

The company strives to build trust in its shareholder return policy through appropriate and transparent communication with investors. Regular disclosure of growth strategies and dividend policies is essential for fostering strong investor relations. In particular, information regarding share buybacks and dividend decisions serves as a key indicator of management’s growth outlook and commitment to shareholder returns.

At general shareholders’ meetings and investor relations (IR) briefings, the management team directly communicates with shareholders, helping to reduce information gaps and strengthen trust. Disclosure of management information and growth strategies supports investor understanding and reinforces expectations for future shareholder returns.

Through its clear commitment to returning value to shareholders and maintaining open communication, iCubed Systems aims to establish long-term relationships in which price and value are aligned.

Overall, the company’s shareholder return policy focuses on efficient capital utilization through stable dividend payments and share buybacks while supporting sustainable corporate growth. This chapter has analyzed key elements of its shareholder return strategy, including dividend policy, share buybacks, total return ratio, financial stability, and investor communication. Collectively, these initiatives contribute to building investor trust and creating an environment conducive to long-term growth.

The company’s shareholder return policy is closely linked to its broader growth strategy. By balancing shareholder returns with corporate value enhancement, and by reinforcing its sincere commitment to sustainable growth and transparency, iCubed Systems is expected to further strengthen its credibility and solidify its position as an attractive long-term investment. Continued attention to its future developments is warranted.

Business Risks

1. Factors Causing Earnings Volatility

i Cubed Systems, Inc. relies primarily on its CLOMO business, and its revenue is influenced by market conditions, customers’ IT investment appetite, and competitive dynamics. In particular, the subscription-based CLOMO MDM service provides mobile device management to corporate clients and must adapt swiftly to changing customer needs. Approximately 47.6% of its revenue is derived from specific sales partners, meaning that relationships with these partners have a direct impact on management performance. If a key partner changes its policy or encounters technical issues, there is a risk of a sharp decline in sales.

In addition, attention must be paid to new market entrants and intensifying competition. Price competition could put pressure on profit margins, while customer churn presents another significant risk. A decline in customer satisfaction may directly lead to cancellations and reduced revenue, making customer relationship management essential. Economic fluctuations also affect performance; during downturns, corporate IT investment tends to contract. Under such uncertain conditions, the company must develop flexible strategies to mitigate volatility.

For investors, it is crucial to continuously monitor these performance drivers and strengthen risk management in order to capture future opportunities. Ongoing efforts to enhance products and services to increase customer value are equally important.

2.  Industry-Specific Risks

As a participant in the information and communications technology sector, the company faces rapid technological innovation and a constantly evolving market environment. Industry-specific risks are particularly related to security and competition. In recent years, cyberattack methods have become increasingly sophisticated, and the risk of data breaches is ever-present. For companies that handle customer data, maintaining trust is essential. A security incident could significantly damage customer confidence, and in the event of a data breach, the company may face legal liability, potentially affecting its long-term viability.

Moreover, as technological advancement accelerates, management must continuously respond to new trends and demands. With shorter product and service lifecycles, differentiation from competitors is critical; failure to do so could result in a rapid loss of market share. Regulatory tightening also represents a key risk factor, as increased compliance costs may weigh on management.

To address these industry-specific risks, appropriate strategies are required. Sustaining a competitive advantage depends on continuous innovation and a precise understanding of customer needs. Investors should evaluate how effectively the company mitigates these risks and maintains shareholder value.

3. Financial and Managerial Risks

The company’s financial condition is closely linked to its management strategy. With approximately 47.6% of CLOMO business revenue generated from specific sales partners, this high level of dependency constitutes a significant management risk. If a key partner were to terminate transactions or change its policy, the impact on overall performance could be substantial. Therefore, diversifying business partners and expanding the customer base are critical priorities.

Operational cost pressures must also be considered. Rising development expenses and personnel costs could compress operating margins, potentially lowering profitability. If capital costs increase or financing becomes constrained, this could adversely affect investment decisions and business operations. Accordingly, optimal allocation of management resources and elimination of inefficiencies are urgent priorities.

Furthermore, strengthening corporate governance is essential. Weak internal controls may lead to regulatory violations and erode social trust. Establishing a transparent governance framework and implementing appropriate risk management practices will contribute to sustainable growth and enhanced shareholder value.

4. Risks Related to Overseas Expansion

The company is also considering expansion into overseas markets, which entails various risks. While international expansion offers new market opportunities, differences in regulations, cultural factors, and economic conditions across countries may affect decision-making. In emerging markets in particular, infrastructure may not always be sufficiently developed, creating challenges in partner selection and market entry.

Geopolitical risks must also be taken into account. Instability in global trade environments, the introduction of new regulations, or changes in tariffs can quickly impact operations. Such factors may alter cost structures and pressure profitability. As demonstrated by the disruptions to global supply chains during the COVID-19 pandemic, sudden market fluctuations in international operations can pose serious risks.

Investors should therefore consider how the company manages international risks, as well as its adaptability and flexibility. Careful and well-structured strategic planning is essential for success in global markets.

5. ESG and Natural Disaster Risks

In recent years, attention to ESG (Environmental, Social, and Governance) issues has increased, while natural disasters and environmental challenges have also become significant corporate risk factors. Climate change–related natural disasters may severely impact corporate infrastructure and business operations. Data center outages or supply chain disruptions could increase costs and undermine operational sustainability.

In addition, ESG initiatives influence investor evaluations. If a company fails to fulfill its social responsibilities, it risks damaging its brand image and losing customer support. Environmental considerations and social contribution activities are essential for sustainable growth and are increasingly regarded as key evaluation criteria by investors.

Strengthening the management of ESG-related and natural disaster risks requires an integrated approach that combines corporate strategy and risk management. Investors should closely examine how the company addresses these risks and assess its potential for sustainable growth.

Overall, the business risks facing the company are diverse and closely tied to fluctuating market conditions. Investors should understand this environment and observe corporate strategies and market trends from a long-term perspective. Through appropriate risk management and proactive By appropriately addressing these risks, the company can pursue sustainable growth, and continued support for such efforts will be essential.