Worth reading
75Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
103.4
Year-on-year change in ordinary profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,440 million+20.9%
Operating profit¥834 million+101.3%
Ordinary income¥834 million+103.4%
Net income¥573 million+111.4%
Selling, general and administrative expensesSG&A expenses and the SG&A-to-revenue ratio: Not disclosed. The factors contributing to the change include a ¥10 million increase in SG&A expenses, R&D expenses and other costs.
Results for the three months of the current quarterRevenue: ¥5.44 billion; operating profit: ¥834 million; ordinary profit: ¥834 million; net income attributable to owners of the parent: ¥573 million
Full-year earnings forecastRevenue: ¥19.2 billion; ordinary profit: ¥1.90 billion; recurring revenue: ¥9.6 billion. Operating profit and net income: Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and profit are both progressing steadily against the first-half plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Ordinary profit increased from ¥410 million in the first quarter of the fiscal year ended December 2025 to ¥830 million in the first quarter of the fiscal year ending December 2026. The changes comprised a ¥140 million contribution from higher Retail Cloud revenue and the expansion of various services, a ¥110 million negative impact from higher Retail Cloud costs, labor costs and other expenses, a ¥20 million negative impact from increased software amortization, a ¥10 million negative impact from higher SG&A expenses, R&D expenses and other costs, a ¥420 million contribution from progress on Government Cloud projects, a ¥30 million contribution from Trust, a ¥20 million negative impact from Mobile Network and a ¥0 million negative impact from other factors.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Projects related to the standardization of municipal core systems in the Government Cloud business are expected to make a significant contribution in the first half. Annual software amortization in the Trust business is stated as ¥70 million, while annual amortization of goodwill in the Government Cloud business is stated as ¥160 million.New initiatives
Development to add AI functions to @rmsV6 in the Retail Cloud business; implementation of AI functions in the Government Cloud products Minna no Madoguchi (a one-stop public-service counter system) and ActiveCity; development of a venture-capital distribution platform and wallet in the Trust business; and establishment of an operations-consolidation hub and full-scale expansion of online customer service at stores in the Mobile business.Key KPIsA metric the company considers important as a management benchmark.
Recurring revenue: ¥2,297 million, up 8.5% year on year; ARR: ¥4.41 billion; number of stores using the core system: 1,283; C2Platform IDs deployed: 699; RetailPro stores: 193 overseas and 53 in JapanSegment results
Retail Cloud: revenue of ¥1,368 million, up 11.7% year on year; ordinary profit of ¥160 million, down 1.5%. Government Cloud: revenue of ¥2,843 million, up 35.0%; ordinary profit of ¥678 million, up 171.4%. Trust: revenue of ¥73 million, up 279.5%; ordinary loss of ¥3 million. Mobile Network: revenue of ¥1,154 million, up 0.5%; ordinary profit of ¥105 million, down 19.2%.Medium-term management plan targets
For fiscal 2030: revenue of ¥22.1 billion, recurring revenue of ¥12.6 billion and ordinary profit of ¥3.00 billion. Targets for the Retail Cloud business are 2,400 stores using the core system, 6,500 C2Platform IDs deployed, and 700 overseas and 1,300 domestic RetailPro stores.Market Size / Share
The Company's services are used by 30% of food supermarkets; adopted by 8 of the top 10 food wholesalers; and have a 49.2% share of mobile-agent sales in Wakayama Prefecture.Orders received and order backlog
The materials state that the Company won an order from a major supermarket in the Retail Cloud business. Order value: Not disclosedNumber of stores and locations
RetailPro stores: 193 overseas and 53 in Japan. The number of openings and closures of the Company's own stores and locations during the period: Not disclosedNumber of employees
903 consolidated employees as of the end of December 2025. The average company-wide salary increase in fiscal 2026 was 3.4%. Changes during the period and hiring plans: Not disclosedAnnual Dividend
Fiscal 2026 forecast: ¥35.0 per share. Interim and year-end breakdown: Not disclosedPayout ratio
The materials state a policy of increasing the dividend payout ratio. A specific numerical target: Not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | ¥5,440 million (YoY +20.9%) |
| Operating profit | ¥834 million (YoY +101.3%) |
| Ordinary income | ¥834 million (YoY +103.4%) |
| Net income | ¥573 million (YoY +111.4%) |
| Selling, general and administrative expenses | SG&A expenses and the SG&A-to-revenue ratio: Not disclosed. The factors contributing to the change include a ¥10 million increase in SG&A expenses, R&D expenses and other costs. |
| Results for the three months of the current quarter | Revenue: ¥5.44 billion; operating profit: ¥834 million; ordinary profit: ¥834 million; net income attributable to owners of the parent: ¥573 million |
| Full-year earnings forecast | Revenue: ¥19.2 billion; ordinary profit: ¥1.90 billion; recurring revenue: ¥9.6 billion. Operating profit and net income: Not disclosed |
| Self-assessment against the plan | Revenue and profit are both progressing steadily against the first-half plan. |
| Segment results | Retail Cloud: revenue of ¥1,368 million, up 11.7% year on year; ordinary profit of ¥160 million, down 1.5%. Government Cloud: revenue of ¥2,843 million, up 35.0%; ordinary profit of ¥678 million, up 171.4%. Trust: revenue of ¥73 million, up 279.5%; ordinary loss of ¥3 million. Mobile Network: revenue of ¥1,154 million, up 0.5%; ordinary profit of ¥105 million, down 19.2%. |
| Breakdown of Factors Affecting the Change | Ordinary profit increased from ¥410 million in the first quarter of the fiscal year ended December 2025 to ¥830 million in the first quarter of the fiscal year ending December 2026. The changes comprised a ¥140 million contribution from higher Retail Cloud revenue and the expansion of various services, a ¥110 million negative impact from higher Retail Cloud costs, labor costs and other expenses, a ¥20 million negative impact from increased software amortization, a ¥10 million negative impact from higher SG&A expenses, R&D expenses and other costs, a ¥420 million contribution from progress on Government Cloud projects, a ¥30 million contribution from Trust, a ¥20 million negative impact from Mobile Network and a ¥0 million negative impact from other factors. |
| Key KPIs | Recurring revenue: ¥2,297 million, up 8.5% year on year; ARR: ¥4.41 billion; number of stores using the core system: 1,283; C2Platform IDs deployed: 699; RetailPro stores: 193 overseas and 53 in Japan |
| Number of stores and locations | RetailPro stores: 193 overseas and 53 in Japan. The number of openings and closures of the Company's own stores and locations during the period: Not disclosed |
| Number of employees | 903 consolidated employees as of the end of December 2025. The average company-wide salary increase in fiscal 2026 was 3.4%. Changes during the period and hiring plans: Not disclosed |
| Assumptions Underlying the Business Outlook | Projects related to the standardization of municipal core systems in the Government Cloud business are expected to make a significant contribution in the first half. Annual software amortization in the Trust business is stated as ¥70 million, while annual amortization of goodwill in the Government Cloud business is stated as ¥160 million. |
| Medium-term management plan targets | For fiscal 2030: revenue of ¥22.1 billion, recurring revenue of ¥12.6 billion and ordinary profit of ¥3.00 billion. Targets for the Retail Cloud business are 2,400 stores using the core system, 6,500 C2Platform IDs deployed, and 700 overseas and 1,300 domestic RetailPro stores. |
| Annual Dividend | Fiscal 2026 forecast: ¥35.0 per share. Interim and year-end breakdown: Not disclosed |
| Payout ratio | The materials state a policy of increasing the dividend payout ratio. A specific numerical target: Not disclosed |
| Orders received and order backlog | The materials state that the Company won an order from a major supermarket in the Retail Cloud business. Order value: Not disclosed |
| Market Size / Share | The Company's services are used by 30% of food supermarkets; adopted by 8 of the top 10 food wholesalers; and have a 49.2% share of mobile-agent sales in Wakayama Prefecture. |
| New initiatives | Development to add AI functions to @rmsV6 in the Retail Cloud business; implementation of AI functions in the Government Cloud products Minna no Madoguchi (a one-stop public-service counter system) and ActiveCity; development of a venture-capital distribution platform and wallet in the Trust business; and establishment of an operations-consolidation hub and full-scale expansion of online customer service at stores in the Mobile business. |
Items this document does not state (9)
Gross Profit MarginOperating profit marginProgress against full-year forecastUnit price and quantity metricsRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresKey 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 the Government Cloud business, projects involving the standardization of municipal core systems, disaster-prevention administrative radio systems and document management progressed. In the Retail Cloud business, the rollout of various services advanced, resulting in higher revenue, while labor costs and software amortization expenses increased following the strengthening of the operating structure in the previous fiscal year. In the Mobile Network business, terminal sales expanded, but personnel expenses increased due to changes to the incentive structure, higher sales-promotion expenses and higher wages.
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