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  Message to Shareholders and Investors
ICHIRO SEIZAWA  President & Representative Director
Thank you to our shareholders and investors for your continued support.

The Japanese economy is transitioning from moderate growth to a more unpredictable state due to factors including US-China trade friction, Brexit, and the slowing of the global economy.

Meanwhile, in the industries of our client companies there is a growing movement toward gDigital Transformationh (DX), which has been dubbed the Fourth Industrial Revolution. This movement uses technology platforms comprised of IoT, mobile and social technologies, cloud, AI, and big data analytics, to generate new products, services, and business models, transform customer experiences both online and in-person, create value, and establish competitive advantage by doing so.
The following is an overview of future-oriented DX trends in each industry.
Electronics industry
EMinimizing production and distribution costs, improving productivity, creating smart factories and digital twins (digital replicas of living or non-living physical entities), and facilitating evolution toward Industry 4.0 by drastically boosting virtualization and automating production and distribution through the use of digital technologies such as AI and IoT to digitalize production and distribution processes.
EGathering big data from production equipment, utilizing data analysis by AI (machine learning, deep learning), and improving yield and defect analysis.
EShifting from gmonozukurih (manufacturing) to gkotozukurih (valued experience creation) by equipping products with IoT functionality.
Finance industry
EIn response to a drastically worsening earnings environment and competition with FinTech companies, advancements are under way in the development of new services that can be sources of income, as well as improvements to existing services, and operational efficiency improvements such as overhauls of store networks. Progress is particularly being made in convenient, accessible services such as payments by smartphone and the shift to cashless.
ETechnologies used in these cases include cloud, AI, RPA (Robotic Process Automation), open API (Application Programming Interface), and blockchain.
Entertainment industry
EProviding platforms that connect and inspire users, creators, and artists.
EIntegrating of the real events with virtual reality in 5G mobile, SNS and cloud at the customer contact points.
EUtilizing digital technologies such as cloud, AI, VR, AR (Augmented Reality), and blockchain.
Energy industry
EEvolving to Utility 3.0 in order to provide safer, more stable, cheaper and plentiful energy in response to the so-called g5D megatrendsh of depopulation, decarbonization, decentralization, deregulation, and digitalization.
Automotive industry
EThe trend toward what is referred to as CASE (Connected, Autonomous, Shared & service, and Electric) is bringing about a period of transformation seen only once every hundred years.
EShifting from the manufacturing and selling cars to the use of transportation services platforms.
EExpanding the MaaS (Mobility as a Service) consortium.
Healthcare industry
EDawning of the so-called gAge of 100-year lifeh characterized by a society of old age, health and longevity, and shifting from treatments to health promotion and prevention.
ECollecting daily medical, health, and life data in real-time with IoT measurement devices, and using digital imaging and big data analytics for early illness detection.
EEvolving from standard treatments to optimized individual treatments by employing human genome analysis, etc.
Quest sees these changes in the environment as new growth opportunities, and we advocate a vision of gTo be a trusted partner together with our customers through enhancing the value of ITh in line with our corporate philosophy to gExplore new technologies, create value and grow with customers.h We will be taking on the following key measures in our three-year medium-term management plan that kicks off in FY 2019.
1)Transforming the companyfs business structure
We will transform our business structure to provide services that offer even more added value. Our basic approach is to expand our deliverables-based and recurring-based cloud solutions.
Grow application solutions
We will expand solutions that utilize BASQUET and other of our proprietary business templates which are modeled around customer experience (CX). This will be done based on platforms such as ERP, CRM, RPA, IoT, big data analytics, and AI.
Expand infrastructure solutions
We will expand our multi-cloud consolidated operations services, which unify operations services from the perspective of the client across their data centers and public clouds. We will also expand security solutions that combine the security products from Silicon Valley with our own services based on the customer experience (CX) model.
2)Transforming the companyfs industry portfolio
To accumulate knowledge and expertise in customer experience (CX), we will focus on seven types of business in segments that have high synergy effects with IT. These are electronics, finance, communication media, entertainment, the public sector (energy, railroads), cars, and healthcare. Amongst these, we will also seek a business balance between domestic and foreign demand so that we can mitigate the risk of changes in the market environment.
3)Strengthening our operating base
We will create and cultivate teams and cultures in which engineers feel motivated and exhibit highly advanced technical skills as they grow together with our customers. To that end we will bolster our efforts to hire our next generation of human resources, while also upgrading our human resources systems. We will also create a better environment for professional development in each IT career track that engineers choose (IT specialist, IT architect, customer services management, project management, consultant, and business incubator), and hone their professional skills. As part of this, we are implementing the gQCAPh (Quest Certified Advanced IT Professionals) certification system for IT professionals.
4)Acquiring new technologies that are essential in a growing digital network society
To increase the added value of our solutions, we will continuously invest 2% of our sales in technology acquisition and engineer training. At the same time, to complement the solutions and technologies we believe necessary for our medium- to long-term growth strategy, we will also push forward with business partnerships and capital alliances. To facilitate our own digital transformation as a company we have also established a DX Center, going into operation in FY 2019.
A key management priority of Quest is the stable return of profits to its shareholders.
Quest will enhance its corporate value over the medium- and long-term. At the same time, it will position the provision of stable shareholder returns as an important corporate challenge. In addition to enhancement of its financial performance, Quest will secure sufficient internal reserves towards the future acquisition of technologies and human resources as well as carry out proactive profit allocation. As our basic policy on dividends of surplus, Quest aims for DOE (dividend on equity ratio) of 5% in the interest of stabile profit distribution to shareholders, and ROE (return on equity) of 10% or more.
Going forward Quest will continue to carry out highly transparent group-wide management. In addition, we will work towards further enhancement of corporate value and sustainable growth, through solving social issues with IT. We ask our shareholders and investors for your continued understanding and support as we endeavor to fulfill our goals.

Updated on June 2017, ICHIRO SEIZAWA   President & Representative Director