Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
Partially revisedNet Sales+1.8%
基準 27,987Target28,500million
Operating profit margin-19.6pt
基準 31.9Target12.3%
ROE-8.6pt
基準 23.4Target14.8%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planOperating margin of 10% or higher, ROE of 10% or higher, and PBR of 1.0x or higher → Fiscal year ended March 2026: operating margin of 31.9%, ROE of 23.4% and PBR of 1.1x+20,160.0%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyIntroduced progressive dividends and a target guideline for the dividend on equity (DOE). The company plans to provide stable and continuous shareholder returns. Specific target levels and the applicable period are not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyAcquired 270,000 treasury shares in the fiscal year ended March 2026. The future acquisition limit, timing and conditions are not disclosed.
Cost of capitalThe assumed cost of equity is 7–9%. It was 8.33% at the end of March 2026 and 7.11% at the end of May 2026.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR was 1.1x in the fiscal year ended March 2026. Based on the share price of ¥2,286 as of 19 June 2026 and book value per share of ¥2,927.30 for the fiscal year ended March 2026, PBR was 0.8x. PER remains low, and the company recognizes that its growth potential and profitability are not being sufficiently valued.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Conduct R&D to strengthen the foundation for future growth
02Strengthen execution capabilities through technology transfer and talent development
03Promote alliances and M&A with companies capable of addressing customer needs, including generative AI, robotics and low-code technologies
04Implement capital allocation based on a careful assessment of strategic investments in growth areas
05Strengthen partnerships and acquire new customers
06Create new customer-driven value and develop services
07Reconfigure the business portfolio and improve profitability
08Provide stable and continuous shareholder returns
09Conduct IR activities focused on dialogue with shareholders and investors
Risks identified by the company
Changes in economic conditions
Changes in market trends and other factors
Reason for revision or withdrawal
In the fiscal year ended March 2026, revenue growth related to the standardization of municipal government systems contributed to results, and all targets for operating margin, ROE and PBR were achieved. Although a temporary decline in revenue is expected in the fiscal year ending March 2027, the company aims to achieve sustained improvement in capital profitability by ensuring that the results for the fiscal year ended March 2026 are not a one-off and by continuing to meet its targets.
| Item | Details |
|---|---|
| Plan name | Update on Initiatives to Achieve Management Conscious of Cost of Capital and Share Price |
| Plan period | Fiscal years ending March 2027 to March 2029 |
| Progress against the plan | Partially revised |
| Sales Target | ¥27,987 million → ¥28,500 million（＋1.8%） |
| Operating profit margin target | 31.9% → 12.3%（△61.4%） |
| ROE target | 23.4% → 14.8%（△36.8%） |
| Payout ratio / DOE policy | Introduced progressive dividends and a target guideline for the dividend on equity (DOE). The company plans to provide stable and continuous shareholder returns. Specific target levels and the applicable period are not disclosed. |
| Treasury share acquisition policy | Acquired 270,000 treasury shares in the fiscal year ended March 2026. The future acquisition limit, timing and conditions are not disclosed. |
| Cost of capital | The assumed cost of equity is 7–9%. It was 8.33% at the end of March 2026 and 7.11% at the end of May 2026. |
| Self-assessment of PBR and share price | PBR was 1.1x in the fiscal year ended March 2026. Based on the share price of ¥2,286 as of 19 June 2026 and book value per share of ¥2,927.30 for the fiscal year ended March 2026, PBR was 0.8x. PER remains low, and the company recognizes that its growth potential and profitability are not being sufficiently valued. |
| Key initiatives | Conduct R&D to strengthen the foundation for future growth, Strengthen execution capabilities through technology transfer and talent development, Promote alliances and M&A with companies capable of addressing customer needs, including generative AI, robotics and low-code technologies, Implement capital allocation based on a careful assessment of strategic investments in growth areas, Strengthen partnerships and acquire new customers, Create new customer-driven value and develop services, Reconfigure the business portfolio and improve profitability, Provide stable and continuous shareholder returns, Conduct IR activities focused on dialogue with shareholders and investors |
| Results under the previous plan | Operating margin of 10% or higher, ROE of 10% or higher, and PBR of 1.0x or higher → Fiscal year ended March 2026: operating margin of 31.9%, ROE of 23.4% and PBR of 1.1x |
| Reason for revision or withdrawal | In the fiscal year ended March 2026, revenue growth related to the standardization of municipal government systems contributed to results, and all targets for operating margin, ROE and PBR were achieved. Although a temporary decline in revenue is expected in the fiscal year ending March 2027, the company aims to achieve sustained improvement in capital profitability by ensuring that the results for the fiscal year ended March 2026 are not a one-off and by continuing to meet its targets. |
| Risks identified | Changes in economic conditions, Changes in market trends and other factors |
| Date of board resolution | 26 June 2026 |
| Publication date | 26 June 2026 |
Items this document does not state (9)
Operating profit targetNet income targetROIC targetTotal investment planInvestment amount by sectorSegment targetNon-financial targetsPlan assumptionsSize of the Target Market
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 the fiscal year ended March 2026, revenue growth related to the standardization of municipal government systems contributed to results, while a temporary decline in revenue is expected in the fiscal year ending March 2027. In addition, although performance was strong, the company recognizes that expectations for the future have weakened and that its growth potential and profitability are not being sufficiently valued by the market.
How to read this page
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