FAQ (Search categories)

FY08/22_Q1

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• What is the purpose of the capital and business alliance between SHIFT SECURITY and SentryMark?

  The area of SOC for which SentryMark is the exclusive distributor to, is a rapidly growing area of cloud demand in the current post-COVID world. SHIFT SECURITY’s strength in securing and training security personnel makes it highly compatible with SOCaaS, and is currently one of the fastest growing areas. Furthermore, SHIFT SECUIRTY is one of the very few companies in Japan that can provide SOCaaS at a cost-effective price, and is aiming for further rapid growth to gain first-mover advantage. Through this Capital and Business Alliance, SHIFT SECURITY will provide technical support to SentryMark’s Japanese-language SOC infrastructure platform.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-capital-and-business-alliance-between-shift-security-inc-and-sentrymark-inc/

• How much potential is there for future expansion regarding the metaverse-related market? Furthermore, what specific services do you provide?

  Regarding the metaverse-related market, SHIFT provides quality assurance services focused on software testing. By leveraging the expertise we have culminated in regards to quality assurance for VR products, we believe that our market size will follow the expansion of the metaverse-related market.

• Gross profit in FY2022 Q1 is up 5.5 points from FY2021 Q1, but is this level of growth expected to continue, or is it just temporary?

  We believe that it is sustainable.
  Of the 5.5 points in increase, roughly 0.5 points was due to the changes in accounting standards, while the remaining points were a result of more efficient staffing to achieve consistently high occupancy rates, risk management on each project to reduce unprofitable projects, and the growth of group companies through PMI. Our understanding is that this trend can be expected to continue in the future.

• The recruitment to sales ratio seems to be declining, but is recruitment going well?

  It is going as planned. While sales in FY2022 Q1 were higher than initially expected, recruitment proceeded exactly as planned, and therefore, resulting in a somewhat low recruitment to sales ratio.

• Why was FY2022 1H revised upward, while FY2022 2H remains the same?

  In FY2022 Q1, we achieved sales growth higher than what was forecasted due to the high number of orders received from strengthened sales activities, promoting strategic recruitment activities, and stably high utilization ratio achieved through efficient staffing plans. Additionally, the strong performances of the various group companies due to PMI have significantly contributed to this upward trend. FY2022 Q2 has also been similarly successful, and therefore, we have upwardly revised our net sales and profits of each stage. As for FY2022 Q3 and beyond, business is expected to be good as we assumed at the beginning of the quarter, so we have again made an upward revision that maintains the increased amount of the FY2022 1H forecast.
  We are strengthening our business activities in the following four areas as we aim to realize the “SHIFT1000” goal of achieving 100 billion JPY in sales: 1. Account/Sales, 2. Human Resources/Recruitment, 3. Services/Technology, 4. M&A/PMI. As for FY2022 Q2 and beyond, we plan to continue promoting strategic investments for aggressive recruitment in addition to strengthening sales activities and PMI.
  Note: This is based on judgments and assumptions made in light of information that is available as of January 14, 2022, and therefore, the actual results may differ from the forecast due to various factors.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-revision-of-consolidated-financial-guidance-for-fy08-22/

• What is the purpose of the establishment of the new subsidiary SHIFT Growth Capital was announced on January 25, 2022?

  The objectives of SHIFT Growth Capital are as follows. 1. Further accelerate M&A activities. 2. Operate PMI. 3. Strengthen the group management structure. Details will be announced after establishment.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-establishment-of-a-subsidiary-shift-growth-capital/

• As of January 2022, there has been a significant increase in new cases of COVID-19 (especially the Omicron variant), but has that had any negative impacts?

  As of now, there have not been any significant impact.

• What are the factors behind this upward revision?

  In FY2022 Q1, we achieved sales growth higher than what was forecasted due to the high number of orders received from strengthened sales activities, promoting strategic recruitment activities, and stably high utilization ratio achieved through efficient staffing plans. Additionally, the strong performances of the various group companies due to PMI have significantly contributed to this upward trend.
  Please refer to the link for more details.
  https://en.shiftinc.jp/news_en/announcement-of-revision-of-consolidated-financial-guidance-for-fy08-22/

• There is impressive rapid growth, especially in terms of sales growth, but is your internal structure keeping up with it?

  SHIFT has been pursuing to hit the goals of its mid-term strategy “SHIFT1000”, which aims to achieve sales of over 100 billion JPY starting in FY2020. In the long run, we aim to achieve further growth with sales of 300 billion JPY, 500 billion JPY, and even beyond. In order to make this a reality, SHIFT is maintaining its growth with a well-developed internal structure to sustain a healthy overall growth.