Worth reading
76Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
300
¥10 billion (revenue target for the fiscal year ending March 2031)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.2%
基準 2,026Target2,031Hundreds of millions of yen
Operating profit+0.2%
基準 2,026Target2,031Hundreds of millions of yen
Operating profit margin+5.0pt
基準 2,026Target2,031％
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.
ROE targetPrevious plan target Fiscal year ending March 2029: ROE of 22% / Latest results Fiscal year ending March 2026: ROE of 22.2% → No target set under the new planROE is the percentage of profit generated from money provided by shareholders.
What happened to the previous planNet Sales ¥15 billion / Operating profit ¥1.5 billion or more / Operating profit margin At least 10% / ROE Fiscal year ending March 2029: 22% / Payout ratio 40% or more (raised to 50% from the fiscal year ending March 2026) / DOE At least 6% / Consecutive dividend increases Consecutive dividend increases → Net Sales ¥17.1 billion / Operating profit ¥2.1 billion / Operating profit margin 12.5％ / ROE 22.2％ / Payout ratio 53.0％ / DOE 11.6％ / Consecutive dividend increases 16 consecutive years of dividend increases（Net Sales 14.0% increase / Operating profit 40.0% increase / Operating profit margin Increase of 2.5 percentage points）
Total investment planGrowth investments of at least ¥3.3 billion during the fiscal years ending March 2027 through March 2029. The total investment amount has not been disclosed.
Investment amount by sectorField Growth Investment / Amount ¥3.3 billion or more / Details Strengthening the offering business (talent development, asset development, consulting and branding), optimizing and expanding office functions, and accelerating DX and AX initiatives, Field M&A / Amount Not disclosed / Details Promoting non-linear business growth using unspent budgets and additional borrowings as funding sources
Statements about the use of capital
Payout ratio / DOE policyDuring the plan period, the Company aims for a dividend payout ratio of 50% or more, DOE of 6% or more, progressive and consecutive dividend increases (an increase of at least ¥1), and 2 dividend payments per year (interim and year-end). The Company aims for 21 consecutive years of dividend increases.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 policyDuring the fiscal years ending March 2027 through March 2029, the Company will actively consider measures toward implementing a flexible capital policy. The acquisition limit, acquisition amount and acquisition timing have not been disclosed.
Cost of capitalCost of equity of around 8% (Company estimate)The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe current PBR is above 3x. The Company recognizes further potential for improvement through an increase in its share price. PER for the fiscal year ending March 2026 is 16.2x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Offering business: organizational structure and priority areas
02Next-generation SI business: areas of focus
03New technologies: applying AI to system development
04New technologies: expanding the scope of data management initiatives
05Human capital: talent portfolio for achieving business strategies
06Human capital: KPIs for improving employee satisfaction and achieving management targets
07M&A and Alliances
08Internal DX and AX initiatives
09Finance and capital allocation
10Shareholder Returns
Plan assumptionsThe AI market is expected to exceed ¥3 trillion in fiscal 2029, with a CAGR of 16.1% from fiscal 2024 through fiscal 2029 (fiscal 2029: ¥3,177.9 billion), Electricity demand is expected to expand in line with the rapid evolution of AI, data center construction and decarbonization initiatives, further increasing demand for IT system investment in the energy sector, Operating cash flow of ¥5.5 billion is forecast for the fiscal years ending March 2027 through March 2029
Segment targetBusiness Segments Offering business / Target Approximately 10% of revenue for the fiscal year ending March 2031, Business Segments Growth Businesses / Target 10%–20% of revenue for the fiscal year ending March 2031, Business Segments Baseload / Target 70%–80% of revenue for the fiscal year ending March 2031
Non-financial targetsIndicator Revenue per engineer / Target ¥30 million or more / Timing Fiscal year ending March 2031, Indicator Employee engagement survey score / Target 80 points or higher / Timing Fiscal year ending March 2031
Size of the Target MarketAI market: ¥1,507.5 billion in fiscal 2024 and ¥3,177.9 billion in fiscal 2029. CAGR from fiscal 2024 through fiscal 2029: 16.1%. Source: Fuji Keizai Co., Ltd., “Comprehensive Survey of the AI Market: Market Edition 2026, Soaring Growth Driven by Generative AI and AI Agents.” For the power sector, the Company describes expected expansion in electricity demand and demand for IT system investment. Sources: Organization for Cross-regional Coordination of Transmission Operators, “Demand Forecasts for Japan and Each Supply Region (Detailed Tables),” and the Company’s estimates based on the Federation of Electric Power Companies of Japan, “60 Years of Statistics on the Electric Power Industry,” for fiscal 2004 and earlier.
Risks identified by the company
Risk that competitiveness may decline over the long term if dependence on conventional SI continues
Risk that increasing complexity of requirements resulting from increasingly diverse and sophisticated customer needs will make execution capabilities a determinant of competitive advantage
Intensifying competition to acquire highly skilled AI talent
General industry and market conditions
Interest Rates
Currency and foreign exchange fluctuations
General domestic and international economic conditions
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Plan, “New Canvas 2031 –The Next Page–” |
| Plan period | Fiscal years ending March 2027 through March 2031 (five years) |
| Progress against the plan | Formulated |
| Sales Target | ¥15 billion (target for the fiscal year ending March 2026 under New Canvas 2026) → ¥30 billion (fiscal year ending March 2031)（100% increase） |
| Operating profit target | ¥1.5 billion or more (target for the fiscal year ending March 2026 under New Canvas 2026) → ¥5 billion (fiscal year ending March 2031)（Approximately 233.3% or more increase） |
| Operating profit margin target | 10% or more (target for the fiscal year ending March 2026 under New Canvas 2026) → 16.7% (fiscal year ending March 2031)（Approximately 67.0% increase） |
| ROE target | Previous plan target Fiscal year ending March 2029: ROE of 22% / Latest results Fiscal year ending March 2026: ROE of 22.2% → No target set under the new plan |
| Payout ratio / DOE policy | During the plan period, the Company aims for a dividend payout ratio of 50% or more, DOE of 6% or more, progressive and consecutive dividend increases (an increase of at least ¥1), and 2 dividend payments per year (interim and year-end). The Company aims for 21 consecutive years of dividend increases. |
| Treasury share acquisition policy | During the fiscal years ending March 2027 through March 2029, the Company will actively consider measures toward implementing a flexible capital policy. The acquisition limit, acquisition amount and acquisition timing have not been disclosed. |
| Cost of capital | Cost of equity of around 8% (Company estimate) |
| Self-assessment of PBR and share price | The current PBR is above 3x. The Company recognizes further potential for improvement through an increase in its share price. PER for the fiscal year ending March 2026 is 16.2x. |
| Total investment plan | Growth investments of at least ¥3.3 billion during the fiscal years ending March 2027 through March 2029. The total investment amount has not been disclosed. |
| Investment amount by sector | Field Growth Investment / Amount ¥3.3 billion or more / Details Strengthening the offering business (talent development, asset development, consulting and branding), optimizing and expanding office functions, and accelerating DX and AX initiatives, Field M&A / Amount Not disclosed / Details Promoting non-linear business growth using unspent budgets and additional borrowings as funding sources |
| Segment target | Business Segments Offering business / Target Approximately 10% of revenue for the fiscal year ending March 2031, Business Segments Growth Businesses / Target 10%–20% of revenue for the fiscal year ending March 2031, Business Segments Baseload / Target 70%–80% of revenue for the fiscal year ending March 2031 |
| Non-financial targets | Indicator Revenue per engineer / Target ¥30 million or more / Timing Fiscal year ending March 2031, Indicator Employee engagement survey score / Target 80 points or higher / Timing Fiscal year ending March 2031 |
| Plan assumptions | The AI market is expected to exceed ¥3 trillion in fiscal 2029, with a CAGR of 16.1% from fiscal 2024 through fiscal 2029 (fiscal 2029: ¥3,177.9 billion), Electricity demand is expected to expand in line with the rapid evolution of AI, data center construction and decarbonization initiatives, further increasing demand for IT system investment in the energy sector, Operating cash flow of ¥5.5 billion is forecast for the fiscal years ending March 2027 through March 2029 |
| Key initiatives | Offering business: organizational structure and priority areas, Next-generation SI business: areas of focus, New technologies: applying AI to system development, New technologies: expanding the scope of data management initiatives, Human capital: talent portfolio for achieving business strategies, Human capital: KPIs for improving employee satisfaction and achieving management targets, M&A and Alliances, Internal DX and AX initiatives, Finance and capital allocation, Shareholder Returns |
| Results under the previous plan | Net Sales ¥15 billion / Operating profit ¥1.5 billion or more / Operating profit margin At least 10% / ROE Fiscal year ending March 2029: 22% / Payout ratio 40% or more (raised to 50% from the fiscal year ending March 2026) / DOE At least 6% / Consecutive dividend increases Consecutive dividend increases → Net Sales ¥17.1 billion / Operating profit ¥2.1 billion / Operating profit margin 12.5％ / ROE 22.2％ / Payout ratio 53.0％ / DOE 11.6％ / Consecutive dividend increases 16 consecutive years of dividend increases（Net Sales 14.0% increase / Operating profit 40.0% increase / Operating profit margin Increase of 2.5 percentage points） |
| Size of the Target Market | AI market: ¥1,507.5 billion in fiscal 2024 and ¥3,177.9 billion in fiscal 2029. CAGR from fiscal 2024 through fiscal 2029: 16.1%. Source: Fuji Keizai Co., Ltd., “Comprehensive Survey of the AI Market: Market Edition 2026, Soaring Growth Driven by Generative AI and AI Agents.” For the power sector, the Company describes expected expansion in electricity demand and demand for IT system investment. Sources: Organization for Cross-regional Coordination of Transmission Operators, “Demand Forecasts for Japan and Each Supply Region (Detailed Tables),” and the Company’s estimates based on the Federation of Electric Power Companies of Japan, “60 Years of Statistics on the Electric Power Industry,” for fiscal 2004 and earlier. |
| Risks identified | Risk that competitiveness may decline over the long term if dependence on conventional SI continues, Risk that increasing complexity of requirements resulting from increasingly diverse and sophisticated customer needs will make execution capabilities a determinant of competitive advantage, Intensifying competition to acquire highly skilled AI talent, General industry and market conditions, Interest Rates, Currency and foreign exchange fluctuations, General domestic and international economic conditions |
| Date of board resolution | 20 May 2026 |
| Publication date | 20 May 2026 |
Items this document does not state (3)
Net income targetROIC targetReason for revision or withdrawal
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.The Company achieved the targets under the previous plan of three consecutive years of record-high performance and 16 consecutive years of dividend increases. It aims to pursue further business growth and enhance corporate value by evolving from an “IT company with strengths in social infrastructure” into a “one-of-a-kind IT company for smart cities.”
How to read this page
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