Upgrade of the Payroll and Year-End Tax Adjustment System and Strengthening of the Operational Processing Structure

「The Group made ¥64.118 million in capital expenditures, primarily for BPaaS-related investments such as upgrades to cloud services to improve operating efficiency and server replacement to strengthen security.」

「これは主に年末調整システムの改修などに伴う無形固定資産の取得による支出43,379千円によるものであります。」

「This was mainly due to expenditures of ¥9.641 million for the acquisition of property, plant and equipment and ¥26.028 million for the acquisition of intangible assets.」

「In the BPO business, the company made ¥45.120 million in capital expenditures on property, plant and equipment, including purchases of new PCs to support staff increases, the relocation of certain departments at the Sapporo head office, expansion of the offshore site, and server replacement to strengthen security. It also made ¥79.775 million in capital expenditures on intangible assets, including licenses to expand operation of the payroll calculation system and upgrades to the year-end tax adjustment-related and data transfer systems.」

「Cash used in investing activities amounted to ¥69.878 million. This was mainly due to expenditures of ¥36.305 million for the acquisition of property, plant and equipment and ¥29.058 million for the acquisition of intangible assets.」

「Filing company Head office Chūō-ku, Sapporo BPO business Year-end tax adjustment system 51 — Internal funds 2024.5 2025.4」

「In the BPO business, the company made capital expenditures of ¥37.606 million in tools, furniture and fixtures under property, plant and equipment, mainly for strengthening network security and adding servers, and ¥69.949 million in software under intangible assets, mainly for expanding operation of the new payroll calculation system and upgrading the year-end tax adjustment-related system.」

「Total capital expenditures during the consolidated fiscal year amounted to ¥153.503 million. These consisted mainly of ¥55.165 million in tools, furniture and fixtures under property, plant and equipment, arising from the replacement of servers used for payroll calculation operations and other factors, and ¥96.998 million in software under intangible assets, arising from the introduction of a new payroll calculation system, the introduction of a communications system, and upgrades to the year-end tax adjustment-related system and other factors.」

「Fixed assets increased by ¥104.154 million from the previous consolidated fiscal year to ¥391.299 million. This was mainly due to a ¥52.928 million increase in software resulting from the development of the communications system and introduction of the new payroll calculation system, and a ¥27.046 million increase in tools, furniture and fixtures resulting from the replacement of the payroll calculation system server.」

「Fixed assets increased by ¥135.482 million from the end of the previous consolidated fiscal year to ¥422.627 million. This was mainly due to increases of ¥34.656 million in software and ¥46.263 million in deferred tax assets.」

「Fixed assets increased by ¥43.711 million from the previous consolidated fiscal year to ¥330.855 million. This was mainly due to increases of ¥30.398 million in software and ¥15.127 million in deferred tax assets.」

「Total capital expenditures during the consolidated fiscal year amounted to ¥165.886 million. These consisted mainly of ¥31.605 million in tools, furniture and fixtures under property, plant and equipment, arising from the introduction of ultra-high-speed scanners and other equipment used for year-end tax adjustment operations, and ¥87.650 million in software under intangible assets, arising from upgrades to the year-end tax adjustment-related system and other factors.」

「Fixed assets increased by ¥156.013 million from the previous consolidated fiscal year to ¥322.350 million. This was mainly due to a ¥98.375 million increase in software resulting from upgrades to the year-end tax adjustment system and other factors, and a ¥26.844 million increase in tools, furniture and fixtures resulting from the introduction of high-speed scanners and other factors.」

「Fixed assets increased by ¥20.729 million from the previous consolidated fiscal year to ¥187.065 million. This was mainly due to increases of ¥7.581 million in deferred tax assets, ¥9.012 million in software, and ¥5.710 million in tools, furniture and fixtures.」

「Total capital expenditures during the consolidated fiscal year amounted to ¥50.628 million. These consisted mainly of ¥4.127 million in building fixtures under property, plant and equipment, arising from the relocation of the head office of subsidiary Eikō Information Technology (Qingdao) Co., Ltd. and other factors, and ¥36.349 million in software under intangible assets, arising from upgrades to the year-end tax adjustment-related system and other factors.」

「This was mainly due to a ¥4.010 million decrease in tools, furniture and fixtures, while software increased by ¥9.860 million as a result of upgrades to the year-end tax adjustment system and other factors.」

「This was mainly due to increases of ¥4.175 million in accounts payable and ¥5.359 million in other payables resulting from upgrades to the Kantan Nenchō system and other factors, partly offset by decreases of ¥24.556 million in accrued corporate taxes and other liabilities and ¥4.020 million in other current liabilities.」

「Total capital expenditures during the consolidated fiscal year amounted to ¥43.774 million. These consisted mainly of ¥6.812 million in tools, furniture and fixtures under property, plant and equipment, arising from the replacement of the telephone exchange, the shredding of payroll-related forms, and the purchase of sorting machinery, and ¥35.000 million in software under intangible assets, arising from upgrades to the year-end tax adjustment-related system and other factors.」

「This was mainly due to a ¥1.058 million decrease in tools, furniture and fixtures and a ¥4.725 million decrease in investment securities, while software increased by ¥13.235 million as a result of upgrades to the year-end tax adjustment system (Kantan Nenchō) and other factors.」

「Total capital expenditures during the consolidated fiscal year were ¥45.083 million. These mainly comprised ¥9.587 million in tools, equipment and fixtures under property, plant and equipment related to the replacement of core servers, and ¥35.495 million in software under intangible assets, mainly for developing “簡単年調,” a new service released during the consolidated fiscal year.」

「The group made total capital investments of ¥41.854 million to strengthen the payroll business’s processing structure. The main investments were ¥11.769 million in tools, fixtures and equipment associated with replacing file servers and other projects, classified as tangible fixed assets, and ¥29.274 million in software associated with modifications to the year-end adjustment system and My Number-related systems, classified as intangible fixed assets.」

「The group made total capital investments of ¥45.120 million to strengthen the payroll business’s processing structure. The main investments were ¥11.600 million in building improvements associated with the head office relocation and other projects, classified as tangible fixed assets; ¥6.551 million in tools, fixtures and equipment associated with the purchase of servers and other equipment for the core payroll system, also classified as tangible fixed assets; and ¥26.969 million in software associated with replacing the core payroll system and modifying the year-end adjustment system, classified as intangible fixed assets.」