Targets for Revenue and Profit Growth in the Fiscal Year Ending March 2020

「Against this backdrop, the Group promoted businesses that create new value as a solutions provider, making maximum use of two strengths: regionally focused operations leveraging the economies of scale of its decentralized company structure, and a business structure capable of providing high-quality solutions nationwide with consistent standards in line with market needs. As a result, in the cumulative first quarter of the fiscal year, net sales were ¥4,355 million, up 0.9% year on year, operating income was ¥198 million, up 38.0%, ordinary income was ¥225 million, up 48.6%, and net income attributable to owners of the parent was ¥155 million, up 52.7%.」

「For the consolidated fiscal year, net sales were ¥20,997 million, up 2.6% from the previous consolidated fiscal year, operating income was ¥1,800 million, up 11.4%, ordinary income was ¥1,852 million, up 10.5%, and net income attributable to owners of the parent was ¥1,172 million, down 6.0%.」

「Against this backdrop, the Group established the business domain of “core businesses (*)” as a driving force for growth, shifted its business model from the contract-based SI business to the proposal-based solutions business, and promoted businesses that make maximum use of its strengths as a solutions provider by expanding the scale of the core businesses themselves. As a result, sales increased in the media and GNSS core businesses and in fields such as finance and social infrastructure within the proposal-based business. In the cumulative nine months of the fiscal year, net sales were ¥14,464 million, up 1.5% year on year, operating income was ¥1,101 million, up 18.3%, ordinary income was ¥1,148 million, up 16.8%, and net income attributable to owners of the parent was ¥753 million, up 10.8%.」

「As a result, sales increased in the media and healthcare core businesses and in the financial sector of the proposal-based business. In the cumulative first half of the fiscal year, net sales were ¥9,494 million, up 2.5% year on year, operating income was ¥637 million, up 26.2%, ordinary income was ¥675 million, up 22.2%, and net income attributable to owners of the parent was ¥437 million, up 15.6%.」

「As a result, although some sales related to automotive applications declined, sales increased in the strong social infrastructure and financial sectors. In the cumulative first quarter of the fiscal year, net sales were ¥4,316 million, up 0.1% year on year, operating income was ¥143 million, up 3.4%, ordinary income was ¥151 million, down 13.0%, and net income attributable to owners of the parent was ¥102 million, down 13.0%.」

「In the solutions business, the Company has defined a No. 1 strategy in each of the five business fields it identifies as core businesses: media, public services, healthcare, GNSS, and IoT (AI). It will accelerate growth through nationwide expansion using a cross-functional approach based on three forms of linkage—linkage among locations, linkage among solutions, and linkage among channels—while seeking further business expansion by creating new core businesses. Accordingly, for the fiscal year ending March 2020, the Company forecasts net sales of ¥22,000 million, up 7.5% from the previous consolidated fiscal year, operating income of ¥1,800 million, up 11.3%, ordinary income of ¥1,800 million, up 7.3%, and net income attributable to owners of the parent of ¥1,270 million, up 1.8%.」