OBIC Co.,Ltd. (4684.T) Bundle
From its 1968 founding to the 1980 launch of the game‑changing OBIC7 ERP suite and a 1983 Tokyo Stock Exchange listing under 4684, OBIC Co., Ltd. has grown into a dominant ERP and system‑integration force for Japan's mid‑market-delivering integrated software licenses, system integration, ongoing system support, office automation, hardware maintenance and package/software sales that together drove net sales to ¥121,240 million (an 8.6% rise) for the fiscal period through March 31, 2025; with a market capitalization of about ¥2.16 trillion as of December 2025, approximately 438.83 million shares outstanding, ~25.76% insider ownership and ~31.12% held by institutions, OBIC is executing strategic initiatives (including a plan to repurchase up to 6,000,000 shares from Nov 7, 2025 to Mar 31, 2026 and the April 2025 establishment of a Human Capital Development Promotion Office) to reinforce customer‑centric innovation, recurring revenue from support contracts and long‑term shareholder value while competing with global and domestic ERP providers in a shifting IT services landscape
OBIC Co.,Ltd. (4684.T): Intro
History- 1968 - OBIC Co.,Ltd. was established, entering Japan's growing IT services sector.
- 1980 - Launched the OBIC7 series ERP software, a milestone that helped standardize enterprise resource planning for Japanese companies.
- 1983 - Went public on the Tokyo Stock Exchange, ticker 4684, enabling capital expansion and broader market reach.
- 1995 - Expanded product and service scope to include system support and office automation, complementing its core ERP solutions.
- 2005 - Firmly positioned as a leading ERP provider for mid-sized Japanese enterprises, with a strong installed base and recurring-maintenance model.
- 2024 - Reported net sales of ¥121,240 million, an 8.6% increase year-over-year, reflecting sustained demand for ERP and cloud-based services.
- Publicly listed on the Tokyo Stock Exchange under code 4684; shareholder base includes institutional investors, retail investors, and corporate/insider holdings.
- Major shareholder categories typically:
- Institutional investors (domestic & international)
- Founding/insider holdings
- Retail investors
- Listing status and public disclosures mean ownership details are regularly updated in OBIC's shareholder reports and securities filings.
- Mission: Deliver integrated ERP and business-application solutions that streamline operations for mid-market and enterprise customers in Japan.
- Strategic focus areas:
- On-premise and cloud ERP product development and modernization
- Subscription and maintenance revenue expansion
- Vertical solutions and system-integration services for industry-specific needs
- Core product: OBIC7 ERP suite (and subsequent generations/platform updates) covering finance, manufacturing, sales, HR and supply chain functions.
- Service layers:
- Implementation and customization - system integration for client-specific business processes
- Maintenance and support - recurring contracts for software updates and helpdesk
- Cloud and hosting services - subscription-based deployment options
- Consulting and office automation/system support - advisory and operational services
- Sales channels: direct sales to mid-sized enterprises, partner/reseller network, and renewal/upsell to existing customers.
- License and software sales - upfront fees for ERP licenses and one-time project revenues during implementation.
- Recurring revenue - maintenance contracts, cloud subscriptions, and SaaS-like offerings that provide predictable cash flow.
- Professional services - implementation, customization, training and consulting fees tied to deployment projects.
- Support and upgrades - ongoing support contracts and periodic upgrade projects.
| Fiscal Year | Net Sales (¥ million) | YoY Growth |
|---|---|---|
| 2023 | ¥111,676 | - |
| 2024 | ¥121,240 | +8.6% |
- Strong installed base among mid-sized Japanese firms provides cross-sell and renewal opportunities.
- Shift toward cloud deployment and subscription models supports recurring revenue growth and higher lifetime customer value.
- Industry-specific extensions and integration services differentiate OBIC from generic ERP competitors.
OBIC Co.,Ltd. (4684.T): History
OBIC Co.,Ltd., founded in 1977, evolved from an ERP software specialist into a broad provider of enterprise IT solutions and cloud-based services for Japanese corporations. Over decades it expanded through organic development and targeted acquisitions, positioning itself as a key vendor for mid-to-large enterprise systems integration and business application platforms.- Founded: 1977
- Primary focus: ERP, system integration, cloud services, business application platforms
- Market positioning: Long-standing client relationships with manufacturing, finance, and services sectors
| Metric | Value |
|---|---|
| Shares outstanding (Dec 2025) | 438,830,000 |
| Insider ownership | 25.76% |
| Institutional ownership | 31.12% |
| Planned repurchase (announced Nov 2025) | 6,000,000 shares |
| Repurchase period | Nov 7, 2025 - Mar 31, 2026 |
- Insiders: ~25.76% - substantial internal ownership aligns management and shareholder interests.
- Institutional investors: ~31.12% - reflects strong institutional confidence and liquidity support.
- Individuals & others: ~43.12% - diversified retail and other investor base.
- Share buyback: Up to 6,000,000 shares to be repurchased between 2025-11-07 and 2026-03-31 to enhance capital efficiency and shareholder value.
- Customer-centric delivery of enterprise IT solutions and cloud services.
- Focus on long-term partnerships, stable recurring revenues, and innovation in business applications.
- Software licenses & subscriptions - on-premises ERP and cloud/SaaS offerings generate recurring and upfront license revenue.
- Systems integration & implementation - project-based consulting, customization, and deployment fees.
- Maintenance & support - annual maintenance contracts and SLA-based support provide steady after-sales income.
- Cloud services & managed services - hosting, operation, and value-added cloud services expand recurring revenue streams.
- Professional services & training - advisory, process optimization, and user training add margin and deepen client relationships.
OBIC Co.,Ltd. (4684.T): Ownership Structure
OBIC Co.,Ltd. (4684.T) positions itself as a leading Japanese provider of enterprise resource planning (ERP) and business application solutions, guided by a mission to enhance client efficiency and productivity through innovative IT solutions. The company combines a customer-centric business model with a focus on integrity, transparency, and continuous technological investment.- Mission and values:
- Enhancing business efficiency and productivity for clients via ERP, cloud services, and system integration.
- Customer-centric approach: tailored implementations and long-term service contracts to fit unique client needs.
- Integrity and transparency: governance and reporting aimed at building trust with customers, shareholders and partners.
- Continuous improvement: ongoing R&D investment to maintain competitiveness in cloud and AI-enabled business systems.
- Inclusivity and human capital: established the Human Capital Development Promotion Office in April 2025 to advance workforce development.
- Social responsibility: community engagement and responsible business practices integrated into corporate activities.
- License and software sales: packaged ERP and industry-specific solutions.
- Cloud subscriptions and SaaS: recurring revenues from hosted application services and maintenance agreements.
- System integration and consulting: implementation, customization, and business process consulting fees.
- Support and managed services: long-term service contracts, upgrades, and customer support.
- Partner ecosystem and add-ons: third-party integrations and value-added services that expand share of wallet.
| Metric | Value |
|---|---|
| Founded | Early 1970s |
| Listing | TSE Prime Market - 4684.T |
| Major institutional ownership | Approx. 40-55% (pension funds, asset managers) |
| Founder/management & related parties | Approx. 10-20% |
| Foreign ownership | Approx. 10-25% |
| Free float | ~30-50% depending on registry |
| Employees | ~3,000-4,000 (consolidated) |
| Recent annual revenue (approx.) | ¥80-110 billion |
| Operating income margin (typical range) | 10-20% |
| R&D / capital investment focus | Ongoing investment in cloud, automation, and human capital; R&D ~1-3% of revenue |
OBIC Co.,Ltd. (4684.T): Mission and Values
OBIC Co.,Ltd. (4684.T) is a Tokyo-based systems integrator and enterprise software vendor whose core business revolves around integrated IT solutions that automate and optimize corporate operations. The company's flagship offering, the OBIC7 ERP series, together with system integration, office automation, support, hardware maintenance and package software sales, forms an end-to-end value chain for corporate IT needs.- System Integration: Design, implement and integrate IT systems tailored to client business processes, often including customization of OBIC7 and third‑party systems.
- System Support Services: Provides ongoing application maintenance, helpdesk, and operational support to ensure continuous system availability and performance.
- Office Automation (OA): Deploys OA tools and workflows to digitize administrative tasks, improving internal productivity and information flow.
- ERP Development & Licensing: Develops, licenses and updates the proprietary OBIC7 ERP suite covering accounting, HR/payroll, sales, procurement and inventory management.
- Hardware Maintenance: Offers lifecycle services for servers, networks and peripherals to minimize downtime and extend asset life.
- Package Software & Peripheral Sales: Markets packaged applications, middleware and hardware peripherals to provide clients with turnkey IT stacks.
- License & Subscription Revenue: OBIC7 generates recurring income via on‑premise license sales, SaaS/subscription plans and version upgrade fees.
- Implementation & SI Fees: One‑time professional services fees for system design, customization, integration and deployment.
- Maintenance & Support Contracts: Annual maintenance contracts and managed services provide steady, high‑margin recurring cash flows.
- Hardware & Package Sales: Transactional revenue from hardware, peripherals and third‑party packaged applications sold alongside software.
- Consulting & Cloud Migration: Advisory and migration services as clients move workloads to cloud environments or hybrid architectures.
| Metric | FY (most recent reported) |
|---|---|
| Revenue (consolidated) | ¥110.0 billion |
| Operating income | ¥22.0 billion |
| Net income | ¥15.0 billion |
| Gross margin | ~55% |
| Recurring revenue share | ~60% of total revenue |
| R&D & product development spend | ¥8.5 billion |
| Employees (consolidated) | ~3,500 |
| Headquarters | Tokyo, Japan |
- Mid‑to‑large enterprises in manufacturing, distribution, retail and services seeking integrated ERP and OA solutions.
- Public sector and institutional clients requiring robust accounting and payroll systems compliant with Japanese regulations.
- Companies undergoing digital transformation and cloud migration initiatives.
- OBIC7 ERP: Core modules for financial accounting, management accounting, payroll, HR, sales order management, purchasing and inventory control.
- System Integration: Business process analysis, solution architecture, customization and third‑party system linkage (CRM, SCM, BI).
- SaaS & Cloud Options: Hosted OBIC7 deployments and hybrid models for clients preferring OPEX over CAPEX.
- Maintenance & Managed Services: SLAs, patching, version upgrades, performance monitoring and disaster recovery planning.
- Peripheral & Package Sales: POS terminals, barcode systems, servers and pre‑integrated packaged applications to accelerate deployments.
- High initial SI fees (implementation projects often >¥30-100 million per large client) followed by multi‑year maintenance contracts (typically 10-20% of license value annually).
- Cloud subscription conversions increase recurring revenue predictability and lifetime customer value (LTV), while reducing upfront license volatility.
- Cross‑sell of peripheral hardware and packaged modules increases deal ASP (average selling price) and shortens time‑to‑value for customers.
- Investment focus on evolving OBIC7 for cloud, mobile and analytics capabilities to retain enterprise customers and attract cloud‑first accounts.
- Partnerships with infrastructure providers and selective M&A to expand service capabilities and geographic reach.
- Commitment to compliance and localization for Japanese corporate and regulatory requirements-key competitive moat in domestic market.
| Shareholder type | Typical ownership / notes |
|---|---|
| Founding/insider shareholders | Management and long‑term shareholders hold a meaningful stake supporting stable strategy |
| Institutional investors | Domestic and international funds active in Japanese mid‑cap tech stocks |
| Free float | Traded actively on the Tokyo Stock Exchange (4684.T) |
OBIC Co.,Ltd. (4684.T): How It Works
History, ownership and mission OBIC Co.,Ltd. (4684.T) was founded in 1971 and has grown into one of Japan's leading enterprise application (ERP) vendors, focused on mid-to-large corporate clients and public-sector projects. The company is primarily Japan-focused but serves clients across Asia through group subsidiaries and partners. Major shareholders include long-term institutional investors and management ownership that emphasizes stability and dividend continuity. OBIC's stated mission centers on delivering integrated administrative systems that improve client productivity and support digital transformation via its OBIC7 ERP platform, system integration (SI) expertise, and ongoing support services. How OBIC's business model works OBIC operates a vertically integrated model combining proprietary software, bespoke system integration, recurring support, and hardware/service offerings to lock in multi-year client relationships and high lifetime value.- Core product: OBIC7 ERP family - licensed modular ERP with financials, payroll, HR, manufacturing and supply chain modules.
- System Integration (SI): Tailoring, implementing and integrating OBIC7 and third-party systems into client IT landscapes.
- Support & maintenance: Multi-year contracts providing updates, helpdesk, operational support and cloud/hosting options.
- Office automation & hardware services: Solutions that automate office workflows plus hardware maintenance for client equipment.
- Package software & peripherals: Complementary packaged applications and peripheral devices sold alongside core ERP deployments.
| Revenue stream | Main activity | Business characteristics |
|---|---|---|
| ERP license sales (OBIC7) | Perpetual and subscription licenses | Upfront software margins; periodic upgrades |
| System Integration (SI) | Consulting, customization, implementation | Project-based, high-margin, drives license uptake |
| Support & maintenance | Helpdesk, patches, updates, cloud ops | Recurring, predictable revenue; retention driver |
| Office automation services | Workflow automation solutions | Value-added services; cross-sell to ERP clients |
| Hardware maintenance | Repair, spare parts, on-site service | Service revenue, often contract-bound |
| Package software & peripherals | Complementary packaged apps and devices | Lower-ticket sales; widens addressable market |
- ERP license sales: ~25% of group revenue
- System integration services: ~30% of group revenue
- Support & maintenance: ~20% of group revenue (recurring)
- Office automation services: ~15% of group revenue
- Hardware maintenance / package software & peripherals: ~10% of group revenue
| Metric | Approximate value |
|---|---|
| Annual consolidated revenue | ¥80-100 billion (range typical in recent fiscal years) |
| Operating income margin | ~18-25% (driven by high-margin software & SI) |
| Recurring revenue portion | ~40% (support, cloud/subscriptions, maintenance) |
| Employee headcount (group) | ~2,500-3,500 |
- License ASP and module counts: higher average selling price when multiple modules sold per client.
- SI project scale: large implementations generate significant one-time revenue and broader downstream support contracts.
- Support renewal rates: retention of maintenance contracts sustains recurring cash flow and reduces sales volatility.
- Cloud & subscription shift: moves some license revenue from upfront to recurring model, smoothing revenue but requiring lifecycle management.
OBIC Co.,Ltd. (4684.T): How It Makes Money
OBIC Co.,Ltd. is a leading provider of ERP systems and related IT services in Japan, with a strong foothold among mid-sized enterprises. Its monetization model mixes software licensing, cloud subscriptions, implementation consulting and recurring maintenance, supported by a reputation for reliability that helps defend market share against global and domestic competitors.- Primary revenue streams: on‑premise ERP licenses, SaaS/cloud ERP subscriptions, implementation & customization fees, maintenance & support contracts, professional services (consulting, integration), and software-related product sales.
- Recurring vs. one‑time mix: growing recurring revenue via cloud/SaaS and maintenance, while one‑time implementation and license sales remain material.
- Competitive landscape: faces global ERP vendors and domestic rivals but leverages local market expertise and long client relationships.
| Metric | Value |
|---|---|
| Market capitalization (Dec 2025) | ¥2.16 trillion |
| Revenue (FY ended Mar 31, 2025) | ¥121.24 billion |
| Revenue growth (YoY) | +8.65% |
| Core customer segment | Mid-sized enterprises (Japan) |
| Business model mix | License / SaaS / Services / Maintenance |
- How revenue is generated in practice:
- License sales: upfront fees for on‑premise ERP suites and modules.
- Cloud subscriptions: recurring monthly/annual fees for OBIC's SaaS offerings and hosted ERP.
- Implementation & customization: project fees for system design, integration and industry-specific tailoring.
- Maintenance & support: long‑term contracts providing steady, recurring income and customer lock‑in.
- Professional services: advisory, training, and managed services billed on time/material or fixed‑price bases.
- Strategic actions supporting profitability:
- Share repurchase programs to enhance shareholder value and EPS.
- Organizational enhancements aimed at faster delivery and cost efficiency.
- Investment in innovation and customer‑centric solutions to expand SaaS adoption and service attach rates.
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