Worth reading
41Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
0.34
¥100 million (amount by which sales exceeded the plan)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings briefing transcriptFiscal year ending May 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥17.34 million
Operating profit¥6.55 million
Operating profit marginApproximately 3% increase (the specific year-on-year rate was Not disclosed)
Full-year earnings forecast
Net Sales
¥18 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan achieved, with further upsideKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The company explained that its field expertise in the safety and security sectors, as well as its UI and UX, will remain competitive even as AI agents advance.
- The company explained that although its existing services can be imitated, its strength lies in its ability to create services addressing new social issues together with customers.
- The company explained its policy of expanding its investor base and responding to the New NISA through a stock split.
- Overseas expansion is viewed as a future step, while the company will initially prioritize strengthening its business foundation through measures such as M&A.
- The company holds approximately ¥1.8 billion in cash and deposits and approximately ¥900 million in securities and investment securities, managing these assets with an emphasis on safety and liquidity.
- An agreement has been reached to acquire a majority stake in tiwaki, but the current ownership ratio is 19.9% due to subsidy requirements.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Quantitative assumptions were Not disclosed. The company explained that its basic policy is to set targets conservatively.New initiatives
- Launch of new AI-powered services
- Addition of an international-call blocking function to the crime prevention app and proposals to introduce it to other prefectural police forces
- Collaboration with tiwaki in AI-based automatic refueling monitoring systems and edge AI
- Discussions toward making tiwaki a subsidiary
- Consideration of integrating “Listening AI” and “Speaking AI” using AI services from major cloud vendors
- Share split
Key KPIsA metric the company considers important as a management benchmark.
- Cloud usage fees as a percentage of sales52 ％Year on year against the same period last yearUp 2 percentage points
- Recurring revenue ratio59 ％
- Live119 population coverage rate57.7 ％
- Number of prefectural police forces adopting the crime prevention app21 Prefectural police forcesYear on year against the same period last yearUp by 4 prefectural police forces
- Decrease in reported special fraud cases (Metropolitan Police Department, January–May 2026)40 % decreaseYear on year against the same period last yearApproximately 40% decrease year on year
- Special fraud losses (Metropolitan Police Department, January–May 2026)¥60 millionYear on year against the same period last yearApproximately 40% decrease year on year
Medium-term management plan targets
The company expects to achieve, in the second year, the profit level targeted for the three-year period of the Second Medium-Term Management Plan. For the third year, it conservatively expects an “additional” target looking beyond that level.Annual Dividend
The dividend after the stock split will increase by ¥2 from the previous year. On a pre-split basis, the increase will be ¥4. The specific annual dividend per share was Not disclosed.Payout ratio
The specific target was Not disclosed. The company explained that the payout ratio is not yet at a sufficiently high level.| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | Fiscal year ending May 2026 |
| Net Sales | ¥17.34 million |
| Operating profit | ¥6.55 million |
| Operating profit margin | Approximately 3% increase (the specific year-on-year rate was Not disclosed) |
| Full-year earnings forecast | Net Sales ¥18 million / Other earnings forecasts Not disclosed |
| Self-assessment against the plan | Plan achieved, with further upside |
| Key KPIs | Indicator name Cloud usage fees as a percentage of sales / Value 52 ％ / Year on year against the same period last year Up 2 percentage points, Indicator name Recurring revenue ratio / Value 59 ％ / Year on year against the same period last year Not disclosed, Indicator name Live119 population coverage rate / Value 57.7 ％ / Year on year against the same period last year Not disclosed, Indicator name Number of prefectural police forces adopting the crime prevention app / Value 21 Prefectural police forces / Year on year against the same period last year Up by 4 prefectural police forces, Indicator name Decrease in reported special fraud cases (Metropolitan Police Department, January–May 2026) / Value 40 % decrease / Year on year against the same period last year Approximately 40% decrease year on year, Indicator name Special fraud losses (Metropolitan Police Department, January–May 2026) / Value ¥60 million / Year on year against the same period last year Approximately 40% decrease year on year |
| Assumptions Underlying the Business Outlook | Quantitative assumptions were Not disclosed. The company explained that its basic policy is to set targets conservatively. |
| Medium-term management plan targets | The company expects to achieve, in the second year, the profit level targeted for the three-year period of the Second Medium-Term Management Plan. For the third year, it conservatively expects an “additional” target looking beyond that level. |
| Annual Dividend | The dividend after the stock split will increase by ¥2 from the previous year. On a pre-split basis, the increase will be ¥4. The specific annual dividend per share was Not disclosed. |
| Payout ratio | The specific target was Not disclosed. The company explained that the payout ratio is not yet at a sufficiently high level. |
| Key points of the Q&A | The company explained that its field expertise in the safety and security sectors, as well as its UI and UX, will remain competitive even as AI agents advance., The company explained that although its existing services can be imitated, its strength lies in its ability to create services addressing new social issues together with customers., The company explained its policy of expanding its investor base and responding to the New NISA through a stock split., Overseas expansion is viewed as a future step, while the company will initially prioritize strengthening its business foundation through measures such as M&A., The company holds approximately ¥1.8 billion in cash and deposits and approximately ¥900 million in securities and investment securities, managing these assets with an emphasis on safety and liquidity., An agreement has been reached to acquire a majority stake in tiwaki, but the current ownership ratio is 19.9% due to subsidy requirements. |
| New initiatives | Launch of new AI-powered services, Addition of an international-call blocking function to the crime prevention app and proposals to introduce it to other prefectural police forces, Collaboration with tiwaki in AI-based automatic refueling monitoring systems and edge AI, Discussions toward making tiwaki a subsidiary, Consideration of integrating “Listening AI” and “Speaking AI” using AI services from major cloud vendors, Share split |
Items this document does not state (17)
Ordinary incomeNet incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company explained that one factor behind the improvement in profit margins was the increase in cloud usage fees as a percentage of sales to approximately 52%, while recurring revenue, including cloud usage fees and maintenance services, expanded to approximately 59% of total revenue. The company also incorporated AI into its internal operations and proceeded with the launch of new AI-powered services.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.