Worth reading
65In 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
-72.4
Year-on-year change in interim net income (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationInterim period of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥19,331 million+3.6%
Operating profit¥2,077 million-0.1%
Ordinary income¥2,099 million+0.8%
Net income¥387 million-72.4%
Gross Profit Margin21.1
Operating profit margin10.7
Full-year earnings forecast
Net Sales
¥42,000 million
Gross profit
¥8,800 million
Operating profit
¥4,700 million
Ordinary income
¥4,730 million
Net income
¥2,250 million
EBITDA
¥5,612 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales46 %
Gross profit46.3 %
Operating profit44.2 %
Ordinary income44.4 %
Net income17.2 %
EBITDA44.5 %
Depreciation and amortization41 %
Amortization of goodwill50 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Profit growth from business expansion¥263 million
Changes in Accounting Standards¥144 million
Optimization of personnel allocation and hiring plans¥104 million
Personnel-related expenses¥-194 million
Core system-related expenses¥-263 million
Other¥-56 million
New initiatives
- Launch of legacy system maintenance and operations and modernization support services through a business alliance with クリューグル社
- Support for data and AI platforms through collaboration with Dataiku Japan社
- Launch of FDE personnel development training in collaboration with DASA Japan社 and エディフィストラーニング社
Key KPIsA metric the company considers important as a management benchmark.
End-user revenue mix
45.7 %
Sales growth rate per major end-user customer
0.7 %
Gross profit growth rate per employee
2.2 %
Segment results
Technology
Net Sales
¥7,585 million+2.7%
Gross profit
¥1,610 million+2.5%
Business transformation support
Net Sales
¥7,442 million+5.4%
Gross profit
¥1,565 million+6.2%
Managed Services and Education
Net Sales
¥4,303 million+2.3%
Gross profit
¥899 million+8.6%
Medium-term management plan targets
Net Sales
¥53,000 million
Target fiscal yearFiscal year ending March 2029
Gross profit
¥10,900 million
Target fiscal yearFiscal year ending March 2029
Operating profit
¥6,300 million
Target fiscal yearFiscal year ending March 2029
EBITDA
¥7,600 million
Target fiscal yearFiscal year ending March 2029
End-user revenue mix
60 %
Target fiscal yearFiscal year ending March 2029
Financial targets
Cost of shareholders’ equity
8 Around %
Orders received and order backlog
Order backlog
Year on year against the same period last year+7.0%
Annual Dividend
Annual
52 yen
First quarter
13 yen
Interim
13 yen
Third quarter
13 yen
End of period
13 yen
Payout ratio
73.7 %
Including shareholder benefits
83.2 %
DOE
Actual, fiscal year ending March 20268.2 %
Three months of the current quarter
Net Sales
¥9,778 million+0.8%
Gross profit
¥2,162 million+7.5%
Operating profit
¥1,329 million+9.6%
Ordinary income
¥1,340 million+9.9%
Net income
¥904 million+8.6%
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Interim period of the fiscal year ending March 2027 |
| Net Sales | ¥19,331 million (YoY +3.6%) |
| Operating profit | ¥2,077 million (YoY -0.1%) |
| Ordinary income | ¥2,099 million (YoY +0.8%) |
| Net income | ¥387 million (YoY -72.4%) |
| Gross Profit Margin | 21.1 |
| Operating profit margin | 10.7 |
| Three months of the current quarter | Net Sales ¥9,778 million (YoY +0.8%) / Gross profit ¥2,162 million (YoY +7.5%) / Operating profit ¥1,329 million (YoY +9.6%) / Ordinary income ¥1,340 million (YoY +9.9%) / Net income ¥904 million (YoY +8.6%) |
| Full-year earnings forecast | Net Sales ¥42,000 million / Gross profit ¥8,800 million / Operating profit ¥4,700 million / Ordinary income ¥4,730 million / Net income ¥2,250 million / EBITDA ¥5,612 million |
| Progress against full-year forecast | Net Sales 46 % / Gross profit 46.3 % / Operating profit 44.2 % / Ordinary income 44.4 % / Net income 17.2 % / EBITDA 44.5 % / Depreciation and amortization 41 % / Amortization of goodwill 50 % |
| Segment results | Technology Net Sales ¥7,585 million (YoY +2.7%) / Gross profit ¥1,610 million (YoY +2.5%) / Business transformation support Net Sales ¥7,442 million (YoY +5.4%) / Gross profit ¥1,565 million (YoY +6.2%) / Managed Services and Education Net Sales ¥4,303 million (YoY +2.3%) / Gross profit ¥899 million (YoY +8.6%) |
| Breakdown of Factors Affecting the Change | Operating profit Profit growth from business expansion ¥263 million / Changes in Accounting Standards ¥144 million / Optimization of personnel allocation and hiring plans ¥104 million / Personnel-related expenses ¥-194 million / Core system-related expenses ¥-263 million / Other ¥-56 million |
| Key KPIs | End-user revenue mix 45.7 % / Sales growth rate per major end-user customer 0.7 % / Gross profit growth rate per employee 2.2 % |
| Medium-term management plan targets | Net Sales ¥53,000 million / Gross profit ¥10,900 million / Operating profit ¥6,300 million / EBITDA ¥7,600 million / End-user revenue mix 60 % |
| Financial targets | ROE Not disclosed / ROIC Not disclosed / Debt-to-equity ratio Not disclosed / Equity ratio Not disclosed / Cost of shareholders’ equity 8 Around % |
| Annual Dividend | Annual 52 yen / First quarter 13 yen / Interim 13 yen / Third quarter 13 yen / End of period 13 yen |
| Payout ratio | 73.7 % |
| Orders received and order backlog | Order backlog yoy_pct 7 % |
| New initiatives | Launch of legacy system maintenance and operations and modernization support services through a business alliance with クリューグル社, Support for data and AI platforms through collaboration with Dataiku Japan社, Launch of FDE personnel development training in collaboration with DASA Japan社 and エディフィストラーニング社 |
Items this document does not state (11)
Selling, general and administrative expensesSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey 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.Net sales increased due to the consolidation of HIT, expansion of the Data & AI-related business, expansion and cross-selling of existing projects with key customers, and the impact of changes in accounting standards. Operating profit benefited from the earnings contribution of business expansion, improved pricing, and changes in accounting standards, as well as cost efficiencies from optimizing personnel allocation and hiring plans. These benefits were offset by higher labor costs associated with pay raises and an increase in the number of employees, personnel-related expenses, and core system-related costs. Interim net income declined due to the recording of impairment losses in the first quarter following the partial suspension of use of the core system.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.