Sustainable Earnings Growth and Business Expansion under the New Five-Year Plan

「Over the three years through the fiscal year ending June 2026, revenue, operating profit and net income each grew to approximately 1.4 times their levels in the fiscal year ending June 2023, while ROE, DOE and dividends reached their target levels. On the other hand, operating profit per employee and software gross profit are behind the levels targeted under the medium-term management plan.」

「The company targets revenue in the range of ¥40.0 billion to ¥45.0 billion for the fiscal year ending June 2028.」

「As a result, during the next medium-term management plan period, from the fiscal year ending June 2023 through the fiscal year ending June 2028, the company will target a revenue CAGR of at least 20%. In the second half of the medium-term management plan, it will target at least 40 points for Growth and Profit Point, or GPP, the sum of the growth rate and EBITDA margin. It will also aim to maintain average ROE of at least 20% and gradually increase DOE from the current level in the 5% range to 8% as shareholder returns.」

「ROE for the current consolidated fiscal year was 23.6%, above the target level, and remained above the medium-term management plan target of 20%, increasing 0.1 percentage point from the previous consolidated fiscal year.」

「Although revenue growth was limited to a modest 3.5% in the current consolidated fiscal year due to slower customer IT investment following the spread of COVID-19 and the decline following last year’s large projects, the operating margin improved by 2.7 percentage points from the previous consolidated fiscal year to 17.2%, partly owing to a higher in-house production ratio. As a result, GPP was 20.7 points, down 5.3 points from the previous consolidated fiscal year, and the gap from the target has not been reduced.」

「Operating profit for the current consolidated fiscal year was ¥2,796 million, reflecting improved project profitability, including a higher in-house production ratio, the effects of cutting nonessential expenses since the spread of COVID-19, and controls on certain expenses such as transportation, utilities and fuel costs following changes in working styles. Operating profit rose 22.7% year on year, and the company believes it is progressing steadily toward the medium-term plan targets, as with revenue.」

「Consolidated revenue was ¥16,236 million, up 3.5% year on year, and the company believes it is progressing steadily toward the targets of its medium-term plan.」

「The company targets revenue of ¥18.0 billion to ¥22.0 billion and operating profit of ¥3.1 billion to ¥3.8 billion for the fiscal year ending June 2023.」

「In September 2018, the Group formulated the new five-year medium-term management plan BE GLOBAL 2023, covering the fiscal year ending June 2023, with the goal of becoming a globally competitive software company. It announced targets for six items: revenue, stock revenue ratio, operating profit, revenue growth rate plus operating margin, ROE and dividends. The revenue target for the fiscal year ending June 2023 is ¥18.0 billion to ¥22.0 billion, and the operating profit target is ¥3.1 billion to ¥3.8 billion.」

「The new medium-term management plan announced in September 2018 identifies increasing the proportion of so-called stock revenue as one of the company’s management objectives.」

「The company has prepared a new five-year plan beginning with the fiscal year ending June 2019. Against the backdrop of growing demand from customer companies to strengthen governance and management capabilities, it will focus on providing sustainable value through its existing Consolidated Accounting-Related, Business Intelligence and Outsourcing businesses. As part of this effort, it aims to achieve earnings growth by improving quality and productivity and promoting automation.」