Exmotion

Basic Information

Stock Code
4394
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
September 2008
Listing Year
July 2018
Official Website
https://www.corporate.exmotion.co.jp/
TSE Information
TSE Information
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Overview

Exmotion is a software development and consulting company in the information and communications industry, established in 2008, specializing in embedded software for the automotive sector with high expertise.

Current Situation

Exmotion recorded net sales of approximately 880 million yen and operating profit of approximately 90 million yen in the fiscal year ending November 2020, focusing mainly on consulting and development of embedded software for automobiles. Headquartered in Shinagawa-ku, Tokyo, it has a solid management foundation and, despite being a small and medium-sized enterprise with capital of approximately 446 million yen, enjoys high acclaim in its specialized field. After listing on the Tokyo Stock Exchange Mothers market (now Growth) in 2018, it made Hinode Software Co., Ltd. a subsidiary in 2023 to expand related businesses. In recent years, it has focused on growth opportunities in the IoT sector and is actively promoting the application of software development to industries beyond automobiles. By emphasizing technological innovation and customer support, and leveraging specialization as its strength, it differentiates itself from competitors. In the future, it plans to advance high value-added embedded software and new market development through continuous technology investment.

Trivia

Interesting Facts

  • Established in 2008, a young company that has established itself in the industry
  • One of the few specialized companies focused on embedded software for automobiles
  • Headquarters located in Osaki Wiz Tower, Shinagawa-ku, Tokyo
  • Maintains a lean elite structure even after listing
  • Actively pursuing business diversification through subsidiary acquisitions
  • Major shareholder Solk Systems contributes to management stability
  • Representative Director and President is Hiroyuki Watanabe
  • Possesses high specialized technology despite being a small company with 64 employees
  • Strong focus on ISO 26262 safety standards compliance
  • Handles consulting in addition to software development
  • Exploring technology deployment in industries beyond automobiles
  • Increasing software products for IoT devices
  • Adopting niche strategies in competitive environments with major companies
  • Emphasizing technology training and talent development
  • Main clients are automotive manufacturers and industrial equipment makers

Hidden Connections

  • Solid technology development base through close collaboration with major shareholder Solk Systems
  • Many other IT-related companies are tenants in Osaki Wiz Tower
  • Strengthened development in industrial equipment field through subsidiary Hinode Software
  • President Watanabe has extensive consulting experience in the industry
  • Model example for SMEs as a Tokyo Stock Exchange Growth market listed company
  • Track record of technical and talent exchanges with many competitors
  • Collaborated with major companies such as Japan Display and Fujitsu
  • High evaluations gained in undisclosed industry projects

Future Outlook

Growth Drivers

  • Expansion of EV and autonomous driving technologies in the automotive industry
  • Spread of industrial IoT and increasing demand for control software
  • Expanding needs for advanced safety standards compliance
  • Market creation for AI-equipped embedded software
  • Expansion into global markets
  • Increasing demand for corporate consulting
  • Synergy effects from business expansion of new subsidiaries
  • Enhanced competitiveness through talent development and technological innovation
  • Promotion of environmentally considerate product development
  • Flexible and rapid management decisions as an SME
  • Digital transformation対応
  • Accelerated technology development through industry-academia-government collaboration

Strategic Goals

  • Establish top-class position in Japan for embedded software development
  • Achieve 5 billion yen in sales in automotive and IoT markets
  • Apply ISO 26262 and other safety standards compliance to all products
  • Initiate and expand business into overseas markets
  • Continuous promotion of sustainable management and environmental load reduction
  • Achieve 10 billion yen in group sales including subsidiaries
  • Maintain and strengthen technological capabilities through advanced talent development
  • Aggressive investment in new technology areas and business diversification
  • Expansion of social contribution activities to local communities
  • Improved productivity through utilization of digital technologies

Business Segments

Automotive Embedded Software Development

Overview
Segment focused on development and proposals for control embedded software specialized in the automotive field.
Competitiveness
Advanced know-how and experience in automotive control software development
Customers
  • Automobile manufacturers
  • Automotive parts suppliers
  • ADAS development companies
  • In-vehicle systems development companies
Products
  • Embedded software for driver assistance systems
  • In-vehicle network control software
  • Electric powertrain control software
  • In-vehicle sensor control modules

Industrial IoT Systems Development

Overview
Provides development and implementation support for IoT-related solutions targeted at industrial equipment.
Competitiveness
Integration capabilities of control embedded technology and IoT technology
Customers
  • Factory equipment manufacturers
  • Industrial equipment manufacturers
  • Smart factory implementation companies
Products
  • IoT gateway development
  • Cloud integration solutions
  • Device management platforms

Safety Standards Compliance Consulting

Overview
Consulting services regarding safety standards for embedded software.
Competitiveness
Abundant track record in safety standards compliance
Customers
  • Automotive industry
  • Industrial machinery manufacturers
  • Control systems development companies
Products
  • ISO 26262 compliance support
  • Safety design evaluation
  • Standards conformance verification

Software Quality Evaluation Services

Overview
Services to support quality evaluation and improvement of embedded software.
Competitiveness
Specialized testing techniques and analysis capabilities
Customers
  • Software development companies
  • Automotive suppliers
  • IT systems integrators
Products
  • Software performance evaluation
  • Debugging and testing support
  • Quality improvement proposals

Training and Education Programs

Overview
Provides education programs to enhance specialized skills for engineers.
Competitiveness
Content aligned with practical work and experienced instructors
Customers
  • Automotive manufacturing companies
  • IT companies
  • Technical vocational schools
Products
  • Embedded technology training
  • Safety standards courses
  • IoT development seminars

Competitive Advantage

Strengths

  • Advanced embedded software development technology
  • Specialized knowledge in the automotive field
  • Solid management foundation and trust as a listed company
  • Customization capabilities tailored to customer needs
  • Abundant track record in safety standards compliance
  • IoT integration capabilities
  • Flexible small-team structure
  • Quality evaluation and testing expertise
  • Strong customer support system
  • Rapid response to latest technologies
  • Continuous technology training implementation
  • High reliability within the industry
  • Competitive edge specialized in niche markets
  • Business diversification through subsidiaries
  • Solid financial stability

Competitive Advantages

  • Embedded software development capabilities specialized in the automotive field
  • Deep knowledge of industry safety standards and high-quality product delivery
  • Capable of developing new markets through integration with IoT technology
  • Rapid development by highly skilled engineers despite small scale
  • Abundant customer support experience and collaboration systems
  • Ensured transparency and reliability through listing
  • Flexible and highly customizable solution proposals
  • Strengthened consulting for safety standards compliance
  • Business expansion and diversification through subsidiary acquisitions
  • Reliable financial operations and revenue stability
  • Local sales and customer relationship building
  • Maintaining technological strength through employee education
  • Brand value backed by abundant track record
  • Enhanced competitiveness through adoption of latest technologies
  • Continuous service improvements based on customer needs

Threats

  • Intensifying competition with major industry players
  • Accelerating pace of technological changes in the automotive industry
  • Market structure changes due to AI and autonomous driving technologies
  • Challenges in talent acquisition and risk of outflow
  • Revenue fluctuation risk due to high customer dependency
  • Price pressure from new entrants
  • Strengthening of regulations in global markets
  • Risk of delayed response to technological innovations
  • Possibility of information security breaches
  • Reduction in capital investment due to economic fluctuations
  • Risk of business disruption from cyberattacks
  • Occurrence of intellectual property disputes

Innovations

2023: Acquisition of Hinode Software Co., Ltd. as a subsidiary

Overview
Acquired Hinode Software as a subsidiary to expand related businesses and strengthen software development capabilities.
Impact
Successfully expanded business areas and diversified revenue base

2022: Advanced Automotive Embedded Software Project

Overview
Strengthened development framework for ADAS-compatible and electric powertrain control software.
Impact
Contributed to expanded orders from automotive manufacturers

2021: Development of Lightweight Embedded Control Software for IoT

Overview
Productized IoT control software aiming for entry into the industrial IoT field.
Impact
Successfully acquired new customers and expanded business areas

2020: Enhanced ISO 26262 Safety Standards Compliance

Overview
Promoted training and management systems to improve safety standards compliance in in-house development processes.
Impact
Contributed to improved reliability in the automotive industry

Sustainability

  • Promotion of renewable energy usage
  • Thorough implementation of paperless operations within the company
  • CO2 reduction through promotion of remote work
  • Strengthening of environmentally considerate product development
  • Support for environmental education in local communities