OBIC Co.,Ltd.: history, ownership, mission, how it works & makes money

A Brief History of OBIC Co.,Ltd.

OBIC Co., Ltd. was founded in 1968 in Japan. Initially, the company focused on developing accounting software for businesses. Over the years, OBIC expanded its offerings to include comprehensive enterprise resource planning (ERP) solutions. The company's stock is traded on the Tokyo Stock Exchange under the ticker symbol 4684.

In 1991, OBIC launched its first ERP system, OBIC7, which revolutionized business management for Japanese companies. The success of OBIC7 positioned the company as a leader in the Japanese software market. By 2000, OBIC further enhanced its product line with the introduction of OBIC8.

Financially, OBIC has shown consistent growth. In the fiscal year ending March 2023, OBIC reported revenues of approximately ¥23.5 billion (around $176 million), an increase of 5.2% from the previous fiscal year. The net income for the same period was approximately ¥3.4 billion (about $25.6 million), reflecting a net profit margin of 14.5%.

OBIC has consistently reinvested in research and development to innovate its product offerings. In 2022, the company allocated approximately ¥1.5 billion (around $11.3 million) to R&D, which accounted for roughly 6.4% of its total revenue.

The company has also expanded internationally, forming partnerships with global technology firms to enhance its service delivery. The strategic move in 2019 to enter the Asian markets has yielded positive results, contributing to an increase in sales of approximately 15% in that region during 2023.

As of October 2023, OBIC's market capitalization stands at approximately ¥120 billion (around $910 million), underscoring its position as a prominent player in the software industry. The company's P/E ratio is approximately 35, reflecting investor confidence and growth expectations.

Furthermore, the company announced in September 2023 a dividend of ¥45 per share, marking an increase of 10% from the previous year. This dividend policy demonstrates OBIC's commitment to returning value to its shareholders while maintaining a solid balance sheet.

OBIC has been recognized multiple times for its innovative solutions and customer service excellence, receiving accolades such as the Japan Software Association's Excellence Award in 2022. These achievements highlight the company's dedication to quality and its adaptive strategies in a rapidly evolving market.

A Who Owns OBIC Co.,Ltd.

OBIC Co., Ltd. is a prominent player in the software and IT services industry in Japan. As of 2023, the ownership structure is characterized by a diverse range of shareholders, including institutional investors, individual investors, and insiders.

As reported in the latest financial disclosures, the major shareholders of OBIC Co., Ltd. include:

The total number of shares outstanding for OBIC Co., Ltd. is approximately 30.4 million, providing a market capitalization of about ¥156.9 billion as of October 2023, based on the stock price of ¥5,150 per share.

In terms of financial performance, OBIC reported for the fiscal year ending March 2023:

OBIC has shown a stable growth trajectory with an annual growth rate of approximately 9.6% in revenue over the last three years. The company's consistent profitability has made it attractive to institutional investors, further solidifying its ownership base.

The dividend distribution has also been favorable, with a dividend payout ratio of around 30%, reflecting a commitment to returning value to shareholders.

For context, OBIC's stock performance in 2023 has seen an increase of approximately 15% year-to-date, showing resilience in a competitive market. This performance further attracts investors, both institutional and retail, highlighting the growing interest in OBIC Co., Ltd.

OBIC Co.,Ltd. Mission Statement

OBIC Co., Ltd. is committed to delivering essential business solutions that enhance operational efficiency and promote optimized management strategies. The company focuses primarily on software development for financial management, contributing significantly to both corporate and public sectors. Its mission statement underscores the goal of fostering technological innovation to support integrated business solutions.

The mission statement emphasizes customer satisfaction, highlighting OBIC's dedication to addressing the specific needs of its clientele through tailored software solutions. OBIC aims to empower organizations to succeed in a competitive environment by leveraging data-driven insights and advanced analytics.

OBIC's mission aligns with its strategic objectives, focusing on sustainability and social responsibility. The company actively promotes environmental initiatives and strives to reduce its carbon footprint through innovative software solutions. This approach not only fulfills business goals but also contributes positively to society.

Furthermore, OBIC places a strong emphasis on continuous improvement and adaptability within its operation. The commitment to regularly updating its software solutions ensures clients benefit from the latest technological advancements and market trends.

In fiscal year 2023, OBIC reported a growth in subscription-based services, which now account for 60% of total revenue. This shift reflects changing customer preferences toward more scalable and flexible software solutions. The company continues to invest in cloud technologies, which are anticipated to grow by 30% year-on-year.

The focus on employee training and development is also evident in OBIC's mission. The company has committed over ¥ 1 billion ($8.7 million) in ongoing training programs, ensuring that its workforce remains at the forefront of technological changes and software development practices.

How OBIC Co.,Ltd. Works

OBIC Co., Ltd. is a prominent player in the IT services and software development sector, particularly in Japan. The company specializes in providing comprehensive solutions for enterprise resource planning (ERP), cloud computing, and an array of business applications tailored to various industries.

In the fiscal year 2022, OBIC reported revenue of approximately ¥38.8 billion, demonstrating a growth of 5.3% year-over-year. Their operating income for the same period stood at ¥9.6 billion, with a net income of ¥6.5 billion.

OBIC's core offerings include software solutions that cater to financial accounting, logistics, manufacturing, and customer relationship management. The company emphasizes a mix of on-premise and cloud-based solutions to accommodate diverse client needs.

OBIC has also been strategically expanding its cloud services to capture a wider market share. The company's investment in technology has allowed it to integrate AI and machine learning into its services, enhancing its offerings with advanced analytics and data-driven insights. In recent reports, OBIC stated that its cloud services recorded a revenue increase of 20% in fiscal 2022.

In terms of customer base, OBIC serves a diverse set of industries, including manufacturing, distribution, and services. Around 60% of its revenue is generated from Japan, while the company is actively pursuing expansion into Southeast Asian markets, targeting a 15% increase in international revenue by 2025.

Human resources play a critical role in OBIC's operations, with the company employing approximately 3,700 staff members across its various divisions. OBIC invests significantly in employee training and development, allocating about ¥900 million annually to enhance workforce skills and knowledge.

As of October 2023, the company’s stock performance on the Tokyo Stock Exchange reflects its growth trajectory, with shares trading at approximately ¥2,500, marking an increase of 10% over the last year. OBIC's market capitalization sits at around ¥92 billion.

The company also prioritizes R&D, dedicating approximately 15% of its revenue towards research and development initiatives to foster innovation and enhance product offerings. This commitment enables OBIC to stay competitive in a rapidly evolving technological landscape.

Given the strategic investments and growth strategies employed by OBIC Co., Ltd., the company is poised for continued success in the IT services sector, leveraging its expertise and adapting to market demands.

How OBIC Co.,Ltd. Makes Money

OBIC Co., Ltd. is a prominent player in Japan's software and IT services sector. The company generates revenue through multiple streams, primarily focusing on financial systems, business management solutions, and IT consulting services. In the fiscal year 2022, OBIC reported consolidated sales of approximately ¥49.8 billion (around $450 million), showcasing a consistent growth trajectory.

The company leverages its expertise in financial software, which is crucial for mid-sized enterprises. OBIC's flagship product, OBIC7, is an integrated accounting and business management system that accounts for a significant portion of their revenue. In fiscal year 2022, OBIC7 contributed to about 30% of total sales.

In terms of IT services, OBIC provides consulting and system integration solutions that target both public and private sectors. The IT consulting segment generated approximately ¥15 billion (around $137 million) in revenue in 2022, marking an increase of 8% year-on-year.

Below is a detailed breakdown of OBIC’s revenue sources for the fiscal year 2022:

OBIC has made strategic investments in cloud technology and services, which have shown rapid growth due to increasing demand for digital solutions. The cloud segment grew by 20% from the previous year, indicating strong market adoption.

In addition to software and consulting, OBIC also generates income through maintenance and support services, which are critical for product performance and customer satisfaction. This segment has shown stability and constitutes a significant share of recurring revenue.

International expansion is also on OBIC's radar as they explore opportunities beyond Japan. As of 2022, overseas sales represented around 5% of total revenue, primarily through partnerships and collaborations with local firms in Asia.

Furthermore, OBIC’s financial health is underscored by its operating profit margin, which stood at 17% in the fiscal year 2022, showcasing effective cost management alongside revenue growth.

The company maintains a keen focus on R&D, allocating around 10% of total revenue each year to sustain its competitive edge and innovate within the software domain. This commitment is evident as OBIC continues to roll out updated versions of its software solutions, enhancing functionality and user experience.

Looking ahead, OBIC aims to tap into emerging technologies, such as AI and machine learning, to further diversify its offerings and streamline operations for clients. This forward-thinking approach positions OBIC strategically within the evolving IT landscape, ensuring long-term viability and profitability.