Nippon Steel Solutions

Basic Information

Stock Code
2327
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
October 1980
Listing Year
October 2002
Official Website
https://www.nssol.nipponsteel.com
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sumitomo Densetsu, TIS, Nomura Research Institute, Simplex Holdings, OBIC, RYOYO SYSTEMS, Otsuka Corporation, Dentsu Soken, Osaka Steel, BIPROGY, NTT DATA Group, DTS, SCSK

Overview

Nippon Steel Solutions is a system integrator of the Nippon Steel Group founded in 1980, with a stable financial base and advanced technological capabilities, providing IT solutions to a wide range of industries.

Current Situation

Nippon Steel Solutions recorded consolidated sales of approximately 310.6 billion yen and 7,826 employees for the fiscal year ending March 2024, maintaining a debt-free status through solid management. It primarily provides IT services centered on system integration, covering everything from steel mill production management to financial market systems. It maintains a strong relationship with its technical partner Oracle, expanding performance through sales and support of Oracle-related products. Sales to companies other than Nippon Steel and government/public agencies account for about 80%, forming a diversified customer base, with a focus on strengthening consulting and system development capabilities. Most recently, it is promoting digital transformation initiatives, and future growth strategies include new business development and overseas expansion. Business expansion through the subsidiary acquisition of Infocom is also planned for 2025, with stable earnings and strong planning and proposal capabilities highly regarded. Financially, it maintains high financial soundness with an equity ratio of over 60%, continuing to enjoy substantial trust from the market.

Trivia

Interesting Facts

  • Originated from Nippon Steel's information systems division as an SI company.
  • Boasts one of the largest sales volumes in Japan as an Oracle distributor.
  • Features solid financial constitution with debt-free management since founding.
  • Operates 5 regional branches nationwide for broad service coverage.
  • Scheduled to list newly on Nagoya and Fukuoka Stock Exchanges in 2025.
  • Head office located in Toranomon Hills Business Tower.
  • Promotes cutting-edge technology R&D through industry-academia collaboration and naming rights.
  • High expertise in financial business systems.
  • Strengthened technological uniqueness through partnership with Oracle.
  • Made group company Network Value Components a wholly-owned subsidiary.
  • Advancing international expansion with diverse subsidiaries and overseas entities.
  • Maintains industry-top-class ordinary profit margin of about 10%.
  • High employee engagement through employee stock ownership plan.
  • Provides wide-ranging services through 9 major affiliates.
  • One of the representative SI companies listed on Tokyo Stock Exchange Prime.

Hidden Connections

  • Exclusively holds steel industry business system technologies as a core Nippon Steel Group company.
  • Established as Oracle's first external shareholder in Japan, forming strategic technology partnership.
  • Regional close-knit business deployment linked to multiple branch bases in areas with group steel mills.
  • Achieved entry into IT for distribution and trading via Infocom acquisition.
  • Donated lecture programs contribute to IT talent development at many universities through industry-academia collaboration.
  • Diverse technology exchanges via joint venture with Nippon Steel Hitachi Systems Engineering.
  • Strength in specialty finance field for financial institutions.
  • Employee stock ownership plan plays key role in fostering employee solidarity.

Future Outlook

Growth Drivers

  • Expansion of DX (digital transformation) market
  • Increasing demand for advanced financial systems
  • Order expansion from rising IT investments in industries
  • Share expansion through strengthened Oracle technology collaboration
  • Support for diversifying SI demand and market growth domestically and internationally
  • Technological innovation and new technology creation via industry-academia collaboration
  • Expansion of cloud service demand
  • Enhanced regional services and strengthened customer base
  • Talent development and securing advanced engineers
  • Maximizing synergy effects through group collaboration
  • Increasing needs related to environment and sustainability
  • Business expansion through new M&A

Strategic Goals

  • Establish position as DX leading company
  • Expand and diversify sales domestically and internationally
  • Industry-leading technological innovation and service provision
  • New business creation through open innovation
  • Strengthen contributions to sustainable society
  • Improve competitiveness through enhanced group company collaboration
  • Promote active roles for diverse talent and organizational culture reform
  • Expand market share in cloud and AI fields
  • Build long-term partnerships with core customers
  • Promote environmental impact reduction and sustainable management

Business Segments

IT Solutions for Manufacturing

Overview
IT systems supporting manufacturing efficiency and quality improvement.
Competitiveness
Optimization technology leveraging steel industry expertise
Customers
  • Steel manufacturers
  • Automotive manufacturers
  • Machinery manufacturers
Products
  • Production management systems
  • Quality management systems
  • Manufacturing site IoT solutions

Information Systems for Financial Industry

Overview
Supports advanced financial operations and risk management.
Competitiveness
Strong integration with Oracle products and specialized knowledge
Customers
  • Banks
  • Securities firms
  • Insurance companies
  • Financial institutions
Products
  • Market trading support systems
  • Risk management systems
  • Specialty finance systems

Solutions for Government and Public Institutions

Overview
Realizes efficiency in administrative tasks and improvement in regional services.
Competitiveness
Stable operations and highly reliable system provision
Customers
  • Local governments
  • National administrative agencies
  • Educational institutions
Products
  • Administrative information systems
  • Regional revitalization support services
  • Education support systems

Network and Security Services

Overview
Enhances IT infrastructure security and efficiency.
Competitiveness
Advanced technology and extensive operational track record
Customers
  • General enterprises
  • Financial institutions
  • Public institutions
Products
  • Network design and construction
  • Security monitoring services
  • Cloud security measures

IT Consulting Services

Overview
Support for formulating IT strategies to solve management issues.
Competitiveness
Proposal strength and technical capabilities backed by track record
Customers
  • Large enterprises
  • Government agencies
  • Manufacturing
Products
  • Management strategy consulting
  • System planning and design support
  • DX promotion support

Overseas Solutions Deployment

Overview
Comprehensive IT services supporting overseas business.
Competitiveness
Collaboration with local subsidiaries and global responsiveness
Customers
  • Global enterprises
  • Overseas bases
Products
  • System construction and operations
  • Multilingual support services

System R&D

Overview
System R&D division for technological innovation.
Competitiveness
Rapid technology adoption through internal collaboration
Customers
  • Internal development teams
  • Related subsidiaries
Products
  • New technology research
  • Next-generation system development

IT Solutions for Logistics Industry

Overview
Support for logistics operation efficiency and optimization.
Competitiveness
Function design tailored to on-site needs
Customers
  • Transportation companies
  • Warehouse companies
Products
  • Logistics management systems
  • Shipping and delivery support tools

Systems for Energy Industry

Overview
Supports high-efficiency energy supply management.
Competitiveness
Industry-specific system proposal capabilities
Customers
  • Power generation companies
  • Energy supply companies
Products
  • Energy management systems
  • Equipment monitoring systems

IT Services for Educational Institutions

Overview
IT infrastructure supporting DX in education.
Competitiveness
Design reflecting voices from educational sites
Customers
  • Universities
  • Vocational schools
  • High schools
Products
  • Online class support systems
  • Education management systems

Systems for Medical and Healthcare

Overview
Supports information management at medical sites.
Competitiveness
High reliability and regulatory compliance
Customers
  • Hospitals
  • Medical institutions
Products
  • Medical information systems
  • Electronic medical records management

Environmental Systems

Overview
Provides systems contributing to environmental conservation.
Competitiveness
Technology considering sustainability
Customers
  • Local governments
  • Environmental companies
Products
  • Environmental data collection and management systems
  • Energy-saving monitoring systems

Competitive Advantage

Strengths

  • Stable base of Nippon Steel Group
  • High technological capabilities and extensive experience
  • Able to meet needs across a wide range of industries
  • Solid debt-free management
  • Strong partnership with Oracle
  • Diverse service provision capabilities
  • Network of branches in 5 major cities nationwide
  • High equity ratio over 60%
  • Long-term trust relationships with customers
  • Expertise in derivatives and financial systems
  • Technology innovation through industry-academia collaboration
  • Expanding global deployment capabilities
  • Strengthened consulting capabilities
  • Coverage of entire system lifecycle
  • Stable ordinary profit margin of about 10%

Competitive Advantages

  • High credibility as subsidiary of Japan's largest steelmaker
  • One of the largest sales volumes as Oracle product sales agent
  • Wide range of IT solutions tailored to diverse industries and markets
  • Financial stability from high equity ratio
  • Improved liquidity through listing on multiple stock exchanges
  • Comprehensive subsidiaries and local entities domestically and internationally
  • Proactive adoption of cutting-edge technologies via industry-academia ties
  • Reliability from long-term debt-free management
  • Differentiation through industry-specific expertise and track record
  • Sustainable revenue and profit growth supported by solid management base
  • Technical strengths in market systems specialized for financial trading support
  • Technological capabilities compatible with diverse platforms
  • Customer-close consulting service deployment
  • System development capabilities adapting to latest IT technologies
  • Strong customer base and trust relationships domestically and internationally

Threats

  • Intense competition and price wars in the IT industry
  • Expansion of overseas IT service competitors
  • Challenges in securing engineers due to talent shortage
  • Demands for flexible adaptation to rapid technological innovations
  • Increasing cyber security risks
  • Risk of customer IT budget cuts
  • Regulatory tightening and volatility risks in financial markets
  • Business interruption risks from natural disasters
  • Increased costs for regulatory and compliance enhancements
  • Potential impact from parent company's business environment changes
  • Overseas business impacts from exchange rate fluctuations
  • Social risks such as new infectious diseases

Innovations

2025: Infocom made wholly-owned subsidiary

Overview
Aiming to expand SI business by making Infocom a subsidiary.
Impact
Achieves business area expansion and sales growth.

2024: DX Promotion Services Enhanced

Overview
Supporting customer companies' digital transformation.
Impact
Increases new orders and improves customer satisfaction.

2023: Advanced Financial Market Systems

Overview
Major upgrade of risk management functions.
Impact
Contributes to operational efficiency for customer financial institutions.

2022: AI-Utilized System Operation Efficiency

Overview
Introduced AI technology into operations monitoring to promote automation.
Impact
Achieves operation cost reductions and quality improvements.

2021: Cloud Infrastructure Services Expanded

Overview
Expanded scope and diversified cloud environment provision.
Impact
Rapid response to customer needs, increasing contract volume.

2020: Technology Development through Industry-Academia Collaboration

Overview
Developed cutting-edge technologies through joint research with universities.
Impact
Enhances services through application of new technologies.

Sustainability

  • Energy-saving initiatives to reduce internal environmental impact
  • Promotion of recycled resource use and waste reduction
  • Environmental education support through collaboration with local communities
  • Promotion of diverse talent utilization and work-style reforms
  • Sustainable procurement across the entire supply chain