TRIPLEIZE CO., LTD.

Business Details

Comprised of three sub-segments: AI Integration (AI/system development and consulting), Engineering (automotive design and development by BEX Co., Ltd.), and AI Products (in-house SaaS centered on the image recognition platform AIZE). Serving a broad customer base across finance, distribution, manufacturing, automotive, and other industries, the segment's competitive advantage lies in providing one-stop "social implementation of AI" that goes beyond the PoC barrier. It is the core business, accounting for approximately 86% of group revenue.

Recent Overview

Both AI Integration and Engineering progressed steadily, with segment profit improving significantly

For the cumulative nine months of FY2026 (ending August 2026), revenue reached ¥3,624 million (up 5.2% year on year) and segment profit reached ¥172 million (up 229.3% year on year). In AI Integration, productivity improvements from the revision of the sales channel structure and expanding development needs related to generative AI contributed to results. In AI Products, the increase in contract IDs for "Aruroku for LINE WORKS" accelerated, and social implementation progressed with the decision to introduce "AIZE Breath" at a major pharmaceutical company and the delivery of "EdgeFace" to a major motorcycle manufacturer. In Engineering, the decline in personnel has stabilized and contracted work volume is trending upward. Group synergy creation has also begun through the secondment/resident assignment of Triple-i members to BEX.

Key Products

Growth Drivers

• Increase in AI Integration projects (RAG development, AI-driven development, etc.) accompanying expanding demand for generative AI and AI agents
• Improved productivity per employee through revision of the sales channel structure and higher engineer unit prices (from ¥1,373 thousand to ¥1,569 thousand)
• Expansion of ID count for the AI product (Aruroku) driven by successful web advertising, expanding attendance service integrations, and tailwinds from related legal amendments
• Group synergy and accelerated AI product development for manufacturing through secondment/resident assignment of Triple-i members to BEX Co., Ltd.
• Commercialization of technology seeds and building a recruitment ecosystem for excellent talent through industry-academia collaboration (Chiba University, HAL Professional Training College, etc.)
• Transition to a phase of strengthened new graduate and mid-career hiring in Engineering, with an upward trend in contracted work volume
• High-unit-price expansion into the "stricter identity verification" domain (entertainment, web examinations, retail, etc.) using facial and biometric recognition

Risks

• Increasing costs of securing and training engineering talent and intensifying competition for hiring
• Medium- to long-term risk of declining automobile production volumes (impact of trade policy changes such as stronger US tariffs)
• Difficulty in managing outsourcing dependency and gross margin in AI Integration
• Customer concentration risk due to revenue concentration with Toyota Boshoku Corporation
• Risk of obsolescence of existing services due to rapid evolution of generative AI technology
• Full-year earnings forecast has been withdrawn, making the Q4 earnings outlook uncertain

Business Details

Provides high-performance GPU server development, sales, and operation, as well as end-to-end data center services from infrastructure construction and installation to system development, maintenance, and operation. Capturing changes in computing resource demand accompanying AI market expansion, the company is advancing a shift toward a business structure centered on sales of GPU servers for AI development applications. Sales of GPU servers for AI development applications are progressing through the expansion of the distributor network.

Recent Overview

GPU server sales progressed through distributor expansion, achieving profitability on a standalone Q3 basis

During the cumulative nine-month period of FY2026 (ending August 2026), sales of GPU servers for AI development applications progressed through expansion of the distributor network. As a result of adjustments to advertising and other SG&A expenses, the company recorded an operating profit of ¥23 million on a standalone third-quarter basis, achieving profitability. Cumulative operating loss narrowed to ¥28 million (compared with a loss of ¥465 million in the same period of the prior year). In addition, a comprehensive partnership agreement was concluded with Tsuruga City as a regional DX promotion model centered on the utilization of AI/HPC infrastructure. Although revenue declined to ¥591 million (down 24.7% year on year), the improvement in the earnings structure is notably progressing.

Key Products

Growth Drivers

• Global rise in demand for GPU servers and computing resources accompanying generative AI market expansion
• Acceleration of GPU server sales for AI development applications through distributor network expansion
• Group synergy combining Triple-i's AI development expertise with GPU infrastructure
• Gaining trust from enterprise customers through vertically integrated provision from the infrastructure layer to the application layer
• Deployment of a regional DX promotion and corporate attraction model through the comprehensive partnership agreement with Tsuruga City
• Improved earnings structure through optimization of SG&A expenses such as advertising costs

Risks

• Risk of delay in the full-scale rollout of GPU server sales for AI development applications (revenue continues to contract, down 24.7% year on year)
• Risk of increased procurement costs due to semiconductor shortages and rising GPU procurement costs
• Risk of substitution of GPU server demand due to intensifying competition with major cloud service providers
• Risk of valuation gains/losses arising from cryptocurrency market fluctuations (subject to impairment testing as intangible assets under IFRS)
• Continuing impact of reduced sales scale due to the termination of mining machine sales following the FY2025 tax reform
• Full-year earnings forecast has been withdrawn, resulting in a highly uncertain business environment