Nippon RAD Inc.
4736・Standard Market・Information & Communication
IoT Integration Business
Growth segment providing hardware-driven IoT and DX solutions across diverse fields
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥1,744 million | ¥1,943 million (reference value, non-consolidated basis, prior fiscal year) | ↓ |
| Segment profit (operating profit basis) | ¥245 million | ¥441 million (reference value, non-consolidated basis, prior fiscal year) | ↓ |
| Depreciation and amortization | ¥48 million | ¥44 million (reference value, non-consolidated basis, prior fiscal year) | ↑ |
| Impairment loss | ¥3 million | – | ↓ |
Business Details
Deploys solution development through IoT integration, development and sale of system products starting from hardware, contract development of embedded systems, sale of video-related equipment systems, data center business, and cloud services business. Centered on the manufacturing-oriented DX platforms Dereva and konekti, it addresses diverse fields such as embedded security systems for automobiles and marine vessels, and video information systems. It is positioned as the core segment of the company-wide 'shift toward a product-asset-based revenue structure.'
Recent Overview
Enhanced DX promotion led to a surge in new inquiries, and repeat business from existing customers also increased
In the industrial IoT field, enhanced promotion of DX solutions and strengthened web marketing led to a surge in inquiries for new projects, and repeat sales to existing customers also increased. The company continued to develop solutions linking with core systems, leveraging the know-how of its original brand. Royalty income from in-vehicle security systems in the embedded field, marine vessel installation solutions, and the video information systems related field also progressed steadily. Note that the current consolidated fiscal year is the first year of preparing consolidated financial statements, so no comparison with the prior consolidated fiscal year has been made.
Key Products
Growth Drivers
- A surge in new project inquiries and increased repeat sales from existing customers due to strengthened promotion of manufacturing-oriented DX solutions (Dereva and konekti)
- Improved efficiency in acquiring customer leads through enhanced web marketing in the industrial IoT field
- Stable performance of royalty income from in-vehicle security systems and marine vessel installation solutions
- Steady performance in the video information systems related field
- Business expansion through continued development of original-brand solutions linked with core systems
Risks
- Risk of delayed order decision timing in the medical field
- Limits on project handling capacity due to engineer supply constraints (worsening talent shortage across the IT industry)
- Risk that market penetration of new platforms such as Dereva may take time (transition period toward becoming a product asset)
- Risk that changes in the external environment, such as US tariff policy, tensions in the Middle East, and geopolitical risks, spill over into IT investment decisions of manufacturing customers
- Risk of impairment of fixed asset value, as seen in the impairment loss recorded in the IoT Integration Business segment (¥2,795 thousand in the current consolidated fiscal year)
Last updated: June 23, 2026