Worth reading
82Important
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
57
¥100 million (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFY2025 (fiscal year ending March 2026)11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,813 hundred million+13.0%
Operating profit¥442 hundred million+15.0%
Ordinary income¥453 100 million +16.0%profit before tax
Net income¥308 hundred million+14.0%
Gross Profit Margin26.7%
Operating profit margin11.6%
Selling, general and administrative expenses¥576 hundred million
Results for the three months of the current quarter
Revenue
¥1,059 hundred million
Gross profit
¥287 hundred million
Operating profit
¥133 hundred million
Pretax profit
¥135 hundred million
Net income
¥97 hundred million
Full-year earnings forecast
Revenue
¥4,170 hundred million
Gross profit
¥1,145 hundred million
Operating profit
¥475 hundred million
Pretax profit
¥483 hundred million
Net income
¥316 hundred million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Finished above the forecast (operating profit) / The first year of the medium-term management plan got off to a solid startBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Increase in gross profit from higher revenue+¥4.7 billion
Improvement in Gross Profit Margin+¥4.2 billion
Increase in selling, general and administrative expenses, etc.-¥14.4 billion
Change in operating profit+¥5.7 billion
Gross profit margin improvement
Price improvement+¥2.3 billion
Gross profit margin improvement+¥4.2 billion
Change in SG&A expenses, etc.
Investment to strengthen sales capabilities-¥2.0 billion
Technology research and development investment-¥3.2 billion
Strategic capital enhancement investment-¥0.5 billion
Enhanced security-¥0.5 billion
Common administrative expenses, etc. (base)+¥0.8 billion
Subtotal of changes in SG&A expenses, etc.-¥5.4 billion
Year-end bonus provision difference+¥0.3 billion
Year-end enterprise-size tax-¥1.0 billion
Year-end litigation-related items+¥2.3 billion
Common administrative expenses, etc. (administrative function integration)+¥2.0 billion
Infocom-related-¥9.9 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
TAM-based revenue ratioApproximately 50% in FY2026
Order backlog coverage ratio at the end of FY2026Approximately 40%
Coverage of revenue forecast by orders expected during the fiscal year63%
New initiatives
- Transition to a new TAM-based business model
- Launch of the COREPEAK offering brand
- AI-driven development based on the Nestorium platform
- Synergy initiatives with Infocom
- Planned launch of disclosure of operating profit by service and customer industry
Key KPIsA metric the company considers important as a management benchmark.
- Orders received¥4,073 hundred millionYear on year against the same period last year+14%
- Order backlog¥1,990 hundred millionYear on year against the same period last year+15%
- ROE11.4%Year on year against the same period last year+0.5 percentage points year on year
- TAM-based revenue ratio (FY2025)38%
- Generative AI adoption rate (development projects)Over 50%
- Revenue productivity of administrative functions+15% year on year
Segment results
Business Solutions
Revenue
¥2,098 hundred million
Year on year against the same period last year+7%
Industrial and steel
Revenue
¥1,025 hundred million
Distribution and platform businesses
Revenue
¥608 hundred million
Finance
Revenue
¥466 hundred million
Consulting and digital services
Revenue
¥915 hundred million
Year on year against the same period last year+2%
Government and educational institutions
Revenue
¥258 hundred million
IT infrastructure and solutions, etc.
Revenue
¥657 hundred million
Group Businesses
Revenue
¥800 hundred million
Year on year against the same period last year+54%
Medium-term management plan targets
Target fiscal yearFY2027
Revenue
¥4,500 hundred million
Operating profit
¥600 hundred million
Operating profit margin
13%
ROE
Approximately 13%
M&A
¥1,500 100 million / three-year period
Payout ratio
50%
TAM-based revenue ratio
Approximately 75%
Growth investment-to-revenue ratio (excluding M&A)
Approximately 5%
Financial targets
ROE
Actual results11.4%
Medium-term targetApproximately 13.0% (FY2027)
Orders received and order backlog
Orders received
¥4,073 hundred million
Order backlog
¥1,990 hundred million
Annual Dividend
Annual dividend per share
¥85 per share
Interim
¥40 per share
End of period
¥45 per share
Payout ratio
50.4%
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | FY2025 (fiscal year ending March 2026) |
| Net Sales | ¥3,813 hundred million (YoY +13.0%) |
| Operating profit | ¥442 hundred million (YoY +15.0%) |
| Ordinary income | ¥453 100 million (profit before tax) (YoY +16.0%) |
| Net income | ¥308 hundred million (YoY +14.0%) |
| Gross Profit Margin | 26.7% |
| Operating profit margin | 11.6% |
| Selling, general and administrative expenses | ¥576 hundred million |
| Results for the three months of the current quarter | Revenue ¥1,059 hundred million / Gross profit ¥287 hundred million / Operating profit ¥133 hundred million / Pretax profit ¥135 hundred million / Net income ¥97 hundred million |
| Full-year earnings forecast | Revenue ¥4,170 hundred million / Gross profit ¥1,145 hundred million / Operating profit ¥475 hundred million / Pretax profit ¥483 hundred million / Net income ¥316 hundred million |
| Self-assessment against the plan | Finished above the forecast (operating profit) / The first year of the medium-term management plan got off to a solid start |
| Segment results | Business Solutions Revenue ¥2,098 hundred million / Year on year against the same period last year +7% / Industrial and steel Revenue ¥1,025 hundred million / Year on year against the same period last year Not disclosed / Distribution and platform businesses Revenue ¥608 hundred million / Year on year against the same period last year Not disclosed / Finance Revenue ¥466 hundred million / Year on year against the same period last year Not disclosed / Consulting and digital services Revenue ¥915 hundred million / Year on year against the same period last year +2% / Government and educational institutions Revenue ¥258 hundred million / Year on year against the same period last year Not disclosed / IT infrastructure and solutions, etc. Revenue ¥657 hundred million / Year on year against the same period last year Not disclosed / Group Businesses Revenue ¥800 hundred million / Year on year against the same period last year +54% |
| Breakdown of Factors Affecting the Change | Operating profit Increase in gross profit from higher revenue +¥4.7 billion / Improvement in Gross Profit Margin +¥4.2 billion / Increase in selling, general and administrative expenses, etc. -¥14.4 billion / Change in operating profit +¥5.7 billion / Gross profit margin improvement Price improvement +¥2.3 billion / Gross profit margin improvement +¥4.2 billion / Change in SG&A expenses, etc. Investment to strengthen sales capabilities -¥2.0 billion / Technology research and development investment -¥3.2 billion / Strategic capital enhancement investment -¥0.5 billion / Enhanced security -¥0.5 billion / Common administrative expenses, etc. (base) +¥0.8 billion / Subtotal of changes in SG&A expenses, etc. -¥5.4 billion / Year-end bonus provision difference +¥0.3 billion / Year-end enterprise-size tax -¥1.0 billion / Year-end litigation-related items +¥2.3 billion / Common administrative expenses, etc. (administrative function integration) +¥2.0 billion / Infocom-related -¥9.9 billion |
| Key KPIs | Orders received ¥4,073 hundred million, Order backlog ¥1,990 hundred million, ROE 11.4%, TAM-based revenue ratio (FY2025) 38%, Generative AI adoption rate (development projects) Over 50%, Revenue productivity of administrative functions +15% year on year |
| Assumptions Underlying the Business Outlook | TAM-based revenue ratio Approximately 50% in FY2026 / Order backlog coverage ratio at the end of FY2026 Approximately 40% / Coverage of revenue forecast by orders expected during the fiscal year 63% |
| Medium-term management plan targets | Target fiscal year FY2027 / Revenue ¥4,500 hundred million / Operating profit ¥600 hundred million / Operating profit margin 13% / ROE Approximately 13% / M&A ¥1,500 100 million / three-year period / Payout ratio 50% / TAM-based revenue ratio Approximately 75% / Growth investment-to-revenue ratio (excluding M&A) Approximately 5% |
| Financial targets | ROE Actual results 11.4% / Medium-term target Approximately 13.0% (FY2027) |
| Annual Dividend | Annual dividend per share ¥85 per share / Interim ¥40 per share / End of period ¥45 per share |
| Payout ratio | 50.4% |
| Orders received and order backlog | Orders received ¥4,073 hundred million / Order backlog ¥1,990 hundred million |
| New initiatives | Transition to a new TAM-based business model, Launch of the COREPEAK offering brand, AI-driven development based on the Nestorium platform, Synergy initiatives with Infocom, Planned launch of disclosure of operating profit by service and customer industry |
Items this document does not state (9)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey points of the Q&A
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.In addition to strong domestic IT demand, the gross profit margin improved due to the acquisition of high-margin Infocom, business model transformation, productivity improvements and an increase in high-value-added projects. Selling, general and administrative expenses and other costs increased following the consolidation of Infocom as a subsidiary and the execution of initiatives under the medium-term management plan, but the increase was absorbed by higher revenue and the improved gross profit margin.
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