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Presentation materials for financial results3916Digital Information Technologies CorporationInformation and Communications, Services and Others

Presentation Materials for the Fiscal Year Ending June 2026

For the fiscal year ended June 2026, revenue, operating income and ordinary income reached record highs, marking 16 consecutive periods of revenue and profit growth. For the fiscal year ending June 2027, the company plans revenue of ¥26.7 billion and operating income of ¥3.2 billion while continuing to invest in the use of AI and the development of strategic products.

Worth reading
78Important
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
5.7
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending June 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥25,546 million+5.7%
Operating profit¥3,053 million+1.3%
Ordinary income¥3,076 million+1.6%
Net income¥2,092 million-3.9%
Gross Profit Margin25.2%
Operating profit margin12.0%
Selling, general and administrative expenses¥3,372 million
Results for the three months of the current quarterQuarterly standalone revenue and operating income results for the fiscal year ended June 2026 are presented. In Q4, revenue was ¥6,275 million and operating income was ¥606 million.
Full-year earnings forecast
Fiscal year ending June 2027
Net Sales
¥26,700 million
Operating profit
¥3,200 million
Ordinary income
¥3,200 million
Net income
¥2,190 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。
First-half forecast for the fiscal year ending June 2027
Net Sales48.7%
Operating profit46.1%
Ordinary income46.1%
Net income46.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell slightly short of plan, operating income was in line with plan, and net income fell below plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Business Solutions919
Embedded solutions507
Product solutions-151
Systems sales111
Operating profit
Gross profit280
Personnel Expenses-4
Research and development costs-122
Office supplies-35
Depreciation and amortization-22
Rent-5
Fees paid-26
Provision for allowance for doubtful accounts-32
Other expenses-5
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Budget adjustments for in-vehicle software investment by domestic automakers, continued investment in the use of generative AI and strategic product development, and revenue plans for each business
New initiatives
  • Move the AI co-existence model into the implementation phase
  • Roll out AI-driven development, the Qualicia AI verification platform and the Q-Compass verification standard
  • Develop an on-premises data-masking tool and conduct a proof of concept
  • Roll out AI image-diagnosis services and drone-based agricultural support services
  • Establish a Business Development Promotion Department under the Product Solutions Division
  • Promote sales of the Sentinel ARGUS ransomware protection product
  • Bring RezOT to market through partnerships
Key KPIsA metric the company considers important as a management benchmark.
  • ROE24.4 %
    Year on year against the same period last year-4.6%
  • ISTQB Platinum Partner-certified personnel71 People
  • Efficiency gains from the use of AI in verification75 %
  • Operational efficiency of drone-based agricultural chemical spraying12 times
Segment results
Software Development business
Net Sales
¥24,566 million+5.5%
Segment profit
¥2,918 million-0.6%
Business Solutions
Net Sales
¥14,117 million+7.0%
Embedded solutions
Net Sales
¥8,324 million+6.5%
Product solutions
Net Sales
¥2,126 million-6.6%
Systems Sales Business
Net Sales
¥978 million+7.5%
Segment profit
¥134 million+69.0%
Medium-term management plan targets
Fiscal year ending June 2027
Net Sales¥26.7 billion
Operating profit¥3.20 billion
Operating profit margin12.0%
ROEMaintain at 25% or higher
Payout ratio50% or higher
Percentage of Female Managers20% or higher
Number of new advanced IT certifications2x
Participation rate in purpose-related training100%
Financial targets
ROEMaintain at 25% or higher
Payout ratio50% or higher
Equity ratio
Actual results73.7%
Number of stores and locations
The Hakodate Branch Office opened in 2023, and the Hokuto AI Satellite Office opened in 2025. Number of locations at period-end and openings and closures during the period: not disclosed
Number of employees
The materials state that there are 71 certified personnel, but total employees, changes during the period and hiring plans are not disclosed
Capital expenditures
¥24 100 million medium-term plan cash allocation, cumulative actual amount for 2 periods
Annual Dividend
Fiscal year ending June 2026
Annual¥37.5
Interim¥18.5
End of period¥19.0
Fiscal year ending June 2027
Annual¥42
InterimForecast: ¥21
End of period¥21 (including commemorative dividend)
Payout ratio
Fiscal year ending June 202757.4%
Medium-term management plan targets50% or higher
Acquisition of treasury shares
Acquisition amountApproximately ¥480 million in total from August to December 2024
PeriodAugust–December 2024
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending June 2026
Net Sales¥25,546 million (YoY +5.7%)
Operating profit¥3,053 million (YoY +1.3%)
Ordinary income¥3,076 million (YoY +1.6%)
Net income¥2,092 million (YoY -3.9%)
Gross Profit Margin25.2%
Operating profit margin12.0%
Selling, general and administrative expenses¥3,372 million
Results for the three months of the current quarterQuarterly standalone revenue and operating income results for the fiscal year ended June 2026 are presented. In Q4, revenue was ¥6,275 million and operating income was ¥606 million.
Full-year earnings forecastFiscal year ending June 2027 Net Sales ¥26,700 million / Operating profit ¥3,200 million / Ordinary income ¥3,200 million / Net income ¥2,190 million
Progress against full-year forecastFirst-half forecast for the fiscal year ending June 2027 Net Sales 48.7% / Operating profit 46.1% / Ordinary income 46.1% / Net income 46.1%
Self-assessment against the planRevenue fell slightly short of plan, operating income was in line with plan, and net income fell below plan.
Segment resultsSoftware Development business Net Sales ¥24,566 million (YoY +5.5%) / Segment profit ¥2,918 million (YoY -0.6%) / Business Solutions Net Sales ¥14,117 million (YoY +7.0%) / Embedded solutions Net Sales ¥8,324 million (YoY +6.5%) / Product solutions Net Sales ¥2,126 million (YoY -6.6%) / Systems Sales Business Net Sales ¥978 million (YoY +7.5%) / Segment profit ¥134 million (YoY +69.0%)
Breakdown of Factors Affecting the ChangeNet Sales Business Solutions 919 / Embedded solutions 507 / Product solutions -151 / Systems sales 111 / Operating profit Gross profit 280 / Personnel Expenses -4 / Research and development costs -122 / Office supplies -35 / Depreciation and amortization -22 / Rent -5 / Fees paid -26 / Provision for allowance for doubtful accounts -32 / Other expenses -5
Key KPIsIndicator name ROE / Value 24.4 % / Year on year against the same period last year -4.6 %, Indicator name ISTQB Platinum Partner-certified personnel / Value 71 People / Year on year against the same period last year Not disclosed, Indicator name Efficiency gains from the use of AI in verification / Value 75 % / Year on year against the same period last year Not disclosed, Indicator name Operational efficiency of drone-based agricultural chemical spraying / Value 12 times / Year on year against the same period last year Not disclosed
Number of stores and locationsThe Hakodate Branch Office opened in 2023, and the Hokuto AI Satellite Office opened in 2025. Number of locations at period-end and openings and closures during the period: not disclosed
Number of employeesThe materials state that there are 71 certified personnel, but total employees, changes during the period and hiring plans are not disclosed
Assumptions Underlying the Business OutlookBudget adjustments for in-vehicle software investment by domestic automakers, continued investment in the use of generative AI and strategic product development, and revenue plans for each business
Medium-term management plan targetsFiscal year ending June 2027 Net Sales ¥26.7 billion / Operating profit ¥3.20 billion / Operating profit margin 12.0% / ROE Maintain at 25% or higher / Payout ratio 50% or higher / Percentage of Female Managers 20% or higher / Number of new advanced IT certifications 2x / Participation rate in purpose-related training 100%
Financial targetsROE Maintain at 25% or higher / Payout ratio 50% or higher / Equity ratio Actual results 73.7%
Annual DividendFiscal year ending June 2026 Annual ¥37.5 / Interim ¥18.5 / End of period ¥19.0 / Fiscal year ending June 2027 Annual ¥42 / Interim Forecast: ¥21 / End of period ¥21 (including commemorative dividend)
Payout ratioFiscal year ending June 2027 57.4% / Medium-term management plan targets 50% or higher
Acquisition of treasury sharesAcquisition amount Approximately ¥480 million in total from August to December 2024 / Number of Shares Not disclosed / Period August–December 2024
Capital expenditures¥24 100 million (medium-term plan cash allocation, cumulative actual amount for 2 periods)
New initiativesMove the AI co-existence model into the implementation phase, Roll out AI-driven development, the Qualicia AI verification platform and the Q-Compass verification standard, Develop an on-premises data-masking tool and conduct a proof of concept, Roll out AI image-diagnosis services and drone-based agricultural support services, Establish a Business Development Promotion Department under the Product Solutions Division, Promote sales of the Sentinel ARGUS ransomware protection product, Bring RezOT to market through partnerships
Items this document does not state (5)
Unit price and quantity metricsRisk amount incorporated into the outlookOrders received and order backlogMarket 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.

For the fiscal year ended June 2026, revenue growth was supported by the capture of resilient corporate demand for IT investment and growth in the business solutions, embedded solutions and systems sales businesses. Meanwhile, SG&A expenses increased due to investments in the development of AI and strategic products, research and development, and additional head office floor space. Net income attributable to owners of the parent declined due to the recognition of a ¥77 million impairment loss on investment securities.

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Presentation Materials for the Fiscal Year Ending June 2026 | Digital Information Technologies Corporation (3916) timely disclosure | Komori