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How definitive the wording is.Contents of this document
Summary of Q&AFull year ended August 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit¥503 million
Net income¥338 million -14.5%fiscal year ending August 2027 forecast
Gross Profit Margin
Rate49.6
Operating profit margin
Rate10.8
Results for the three months of the current quarterA fourth-quarter gross profit margin of 50% and the factors behind it are provided, but standalone revenue and profit figures are Not disclosed
Full-year earnings forecast
Operating profit
¥523 million+3.8%
Net income
¥338 million-14.5%
Revenue from DX Promotion Support Business
¥4,336 million+20.3%
Gross Profit Margin
49.6 %
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Underlying earnings power excluding gains on the sale of investment securities
- Factors behind the improvement in the gross profit margin and its sustainability
- Customer acquisition channels and expansion of business with new customers
- Factors behind revenue growth in the digital transformation support business
- Upfront investment in recruitment, training and expanded office space
- Business opportunities arising from the spread of AI
- Semiconductor-related services in India
- Linkage with the medium-term management plan
- KPIs for confirming the business transformation phase
- Dividend policy and growth investment
- IR communications
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The forecast was prepared based on orders already received and projects in progress, with prospective projects added according to the likelihood of order receipt. The gross profit margin of 49.6% assumes the full-year project mix. Costs for expanding office space are included in the earnings forecast. Numerical assumptions are Not disclosedNew initiatives
- Establishment of the Social Value Transformation Research Institute (VXI)
- Provision of GxRaptor, an AI agent development service
- Expansion of consulting projects
- Increased investment in human capital, the technology platform and research and development
- Investment in business collaboration, partnerships and capital participation
- Expansion of the head-office premises
- New dividend policy using a payout ratio of approximately 20% and DOE of 2.0% as guidelines
Key KPIsA metric the company considers important as a management benchmark.
- Enterprise customer count26 companies
- Number of customers with which trading was newly initiated28 companiesYear on year against the same period last year15 companies in the previous fiscal year
- Revenue from customers within 3 years of the start of trading¥8.5 100 million
- Domestic AI systems market size (2024)¥1.3 1 trillion
- Domestic AI systems market size (2029 forecast)¥4.2 1 trillion
- Domestic AI systems market CAGR25.6 %
Segment results
DX Promotion Support Business
Net Sales
¥4,336 million +20.3%fiscal year ending August 2027 forecast
Medium-term management plan targets
Scheduled for publication at the end of November 2026. The company plans to explain its targeted earnings level and other matters, but specific targets are Not disclosedMarket Size / Share
The domestic AI systems market is forecast at ¥1.3 trillion in 2024 and ¥4.2 trillion in 2029, implying a CAGR of 25.6%. Market share is Not disclosedAnnual Dividend
The company mentioned the first dividend payment for the fiscal year ended August 2026. The dividend forecast for the fiscal year ending August 2027 is undecided. The amount and interim and year-end breakdown are Not disclosedPayout ratio
Approximately 20% as a guideline. The company is considering a phased increase, targeting more than 30% in approximately 3 years. DOE of 2.0% is a guideline for the lower limit of stable dividends| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Full year ended August 2026 |
| Operating profit | ¥503 million |
| Net income | ¥338 million (fiscal year ending August 2027 forecast) (YoY -14.5%) |
| Gross Profit Margin | Rate 49.6 / Year-on-year change (points) Not disclosed |
| Operating profit margin | Rate 10.8 / Year-on-year change (points) Not disclosed |
| Results for the three months of the current quarter | A fourth-quarter gross profit margin of 50% and the factors behind it are provided, but standalone revenue and profit figures are Not disclosed |
| Full-year earnings forecast | Operating profit ¥523 million (YoY +3.8%) / Net income ¥338 million (YoY -14.5%) / Revenue from DX Promotion Support Business ¥4,336 million (YoY +20.3%) / Gross Profit Margin 49.6 % |
| Segment results | DX Promotion Support Business Net Sales ¥4,336 million (fiscal year ending August 2027 forecast) (YoY +20.3%) / Profit Not disclosed |
| Key KPIs | Indicator name Enterprise customer count / Value 26 companies / Year on year against the same period last year Not disclosed, Indicator name Number of customers with which trading was newly initiated / Value 28 companies / Year on year against the same period last year 15 companies in the previous fiscal year, Indicator name Revenue from customers within 3 years of the start of trading / Value ¥8.5 100 million / Year on year against the same period last year Not disclosed, Indicator name Domestic AI systems market size (2024) / Value ¥1.3 1 trillion / Year on year against the same period last year Not disclosed, Indicator name Domestic AI systems market size (2029 forecast) / Value ¥4.2 1 trillion / Year on year against the same period last year Not disclosed, Indicator name Domestic AI systems market CAGR / Value 25.6 % / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | The forecast was prepared based on orders already received and projects in progress, with prospective projects added according to the likelihood of order receipt. The gross profit margin of 49.6% assumes the full-year project mix. Costs for expanding office space are included in the earnings forecast. Numerical assumptions are Not disclosed |
| Medium-term management plan targets | Scheduled for publication at the end of November 2026. The company plans to explain its targeted earnings level and other matters, but specific targets are Not disclosed |
| Annual Dividend | The company mentioned the first dividend payment for the fiscal year ended August 2026. The dividend forecast for the fiscal year ending August 2027 is undecided. The amount and interim and year-end breakdown are Not disclosed |
| Payout ratio | Approximately 20% as a guideline. The company is considering a phased increase, targeting more than 30% in approximately 3 years. DOE of 2.0% is a guideline for the lower limit of stable dividends |
| Market Size / Share | The domestic AI systems market is forecast at ¥1.3 trillion in 2024 and ¥4.2 trillion in 2029, implying a CAGR of 25.6%. Market share is Not disclosed |
| Key points of the Q&A | Underlying earnings power excluding gains on the sale of investment securities, Factors behind the improvement in the gross profit margin and its sustainability, Customer acquisition channels and expansion of business with new customers, Factors behind revenue growth in the digital transformation support business, Upfront investment in recruitment, training and expanded office space, Business opportunities arising from the spread of AI, Semiconductor-related services in India, Linkage with the medium-term management plan, KPIs for confirming the business transformation phase, Dividend policy and growth investment, IR communications |
| New initiatives | Establishment of the Social Value Transformation Research Institute (VXI), Provision of GxRaptor, an AI agent development service, Expansion of consulting projects, Increased investment in human capital, the technology platform and research and development, Investment in business collaboration, partnerships and capital participation, Expansion of the head-office premises, New dividend policy using a payout ratio of approximately 20% and DOE of 2.0% as guidelines |
Items this document does not state (14)
Net SalesOrdinary incomeSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planBreakdown 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 backlog
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.Net income for the current fiscal year includes ¥95 million in gains on the sale of investment securities. As no such gains are expected in the coming fiscal year, net income is expected to decline by 14.5%. In the core business, however, operating profit is expected to increase by 3.8% in the coming fiscal year, driven by project selection focused on profitability, the termination of low-margin licence sales, in-house development and productivity improvements through AI-driven development.
How to read this page
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