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Presentation materials for financial resultsFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,778 million+3.5%
Operating profit¥221 million -51.3%adjusted
Ordinary income¥220 million -51.7%adjusted
Net income¥69 million-71.5%
Operating profit margin12.4%; year-on-year comparison not disclosed
Results for the three months of the current quarterRevenue: ¥1,778 million; adjusted operating profit: ¥221 million; adjusted ordinary profit: ¥220 million; profit attributable to owners of parent: ¥69 million
Full-year earnings forecast
Adjusted revenue
¥8,277 million
Adjusted operating profit
¥977 million
Adjusted ordinary profit
¥948 million
Profit attributable to owners of the parent
¥330 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。
Adjusted revenue21.5％
Adjusted operating profit22.6％
Adjusted ordinary profit23.3％
Profit attributable to owners of the parent21.2％
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily in line with the planBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Adjusted revenue
IT tools business¥295 million increase in gross profit from higher revenue
IT Services Business+¥90 million
Investment Business-¥326 million
Total year-on-year change+¥59 million
Adjusted operating profit
IT tools business+¥49 million
IT Services Business+¥36 million
Investment Business-¥305 million
Corporate Expenses-¥14 million
Total year-on-year change-¥232 million
New initiatives
- Accelerate development of in-house endpoint products, with the aim of making them AI-agent based
- Accelerate strategic investments and capital and business alliances leveraging ProofX's AI expertise
- Launch the “AI Security” website featuring AI security media and Cato AI Security
- Explore the possibility of providing AX and FDE consulting through Eye“247” Work Smart Cloud and ProofX
Key KPIsA metric the company considers important as a management benchmark.
- Cato revenue¥579 millionYear on year against the same period last year+44.0％
- Security product revenue¥393 millionYear on year against the same period last year+41.3％
- Work-style reform product (SaaS) revenue¥33 millionYear on year against the same period last year+9.9％
- Equity ratio25.5 ％Year on year against the same period last yearDown 1.5 percentage points from the end of the previous fiscal year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The materials mention higher unit prices in the IT Services business as a result of employee training, but unit price and volume figures were not disclosedSegment results
IT tools business
Net Sales
¥1,006 million
Year on year against the same period last year+41.5％
IT Services Business
Net Sales
¥682 million
Year on year against the same period last year+15.3％
Investment Business
Net Sales
¥89 million
Year on year against the same period last yearDown ¥326 million from ¥415 million in the same quarter of the previous fiscal year
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Adjusted revenue¥15 billion
Adjusted operating profit¥1.5 billion (operating margin of at least 10%)
ROE15% or higher
Payout ratio30% or more
Financial targets
ROEAt least 15% (target for the fiscal year ending March 2030)
Operating profit marginAt least 10% (target for the fiscal year ending March 2030)
Payout ratioAt least 30% (medium-term target)
Number of employees
Number of Employees251 People
Temporary employment20
Record date31 March 2026
Annual Dividend
Annual dividend for the current fiscal year¥16 per share
Payout ratio
A medium-term payout ratio of 30%; dividends initiated at 26% for the current fiscal yearAcquisition of treasury shares
The company will consider share buybacks opportunistically, depending on the share price and market conditions. The amount, number of shares and period of the buyback authorization were not disclosed| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥1,778 million (YoY +3.5%) |
| Operating profit | ¥221 million (adjusted) (YoY -51.3%) |
| Ordinary income | ¥220 million (adjusted) (YoY -51.7%) |
| Net income | ¥69 million (YoY -71.5%) |
| Operating profit margin | 12.4%; year-on-year comparison not disclosed |
| Results for the three months of the current quarter | Revenue: ¥1,778 million; adjusted operating profit: ¥221 million; adjusted ordinary profit: ¥220 million; profit attributable to owners of parent: ¥69 million |
| Full-year earnings forecast | Adjusted revenue ¥8,277 million / Adjusted operating profit ¥977 million / Adjusted ordinary profit ¥948 million / Profit attributable to owners of the parent ¥330 million |
| Progress against full-year forecast | Adjusted revenue 21.5％ / Adjusted operating profit 22.6％ / Adjusted ordinary profit 23.3％ / Profit attributable to owners of the parent 21.2％ |
| Self-assessment against the plan | Progressing steadily in line with the plan |
| Segment results | IT tools business Net Sales ¥1,006 million / Year on year against the same period last year +41.5％ / IT Services Business Net Sales ¥682 million / Year on year against the same period last year +15.3％ / Investment Business Net Sales ¥89 million / Year on year against the same period last year Down ¥326 million from ¥415 million in the same quarter of the previous fiscal year |
| Breakdown of Factors Affecting the Change | Adjusted revenue IT tools business ¥295 million increase in gross profit from higher revenue / IT Services Business +¥90 million / Investment Business -¥326 million / Total year-on-year change +¥59 million / Adjusted operating profit IT tools business +¥49 million / IT Services Business +¥36 million / Investment Business -¥305 million / Corporate Expenses -¥14 million / Total year-on-year change -¥232 million |
| Key KPIs | Indicator name Cato revenue / Value ¥579 million / Year on year against the same period last year +44.0％, Indicator name Security product revenue / Value ¥393 million / Year on year against the same period last year +41.3％, Indicator name Work-style reform product (SaaS) revenue / Value ¥33 million / Year on year against the same period last year +9.9％, Indicator name Equity ratio / Value 25.5 ％ / Year on year against the same period last year Down 1.5 percentage points from the end of the previous fiscal year |
| Unit price and quantity metrics | The materials mention higher unit prices in the IT Services business as a result of employee training, but unit price and volume figures were not disclosed |
| Number of employees | Number of Employees 251 People / Temporary employment 20 People / Record date 31 March 2026 |
| Medium-term management plan targets | Target fiscal year Fiscal year ending March 2030 / Adjusted revenue ¥15 billion / Adjusted operating profit ¥1.5 billion (operating margin of at least 10%) / ROE 15% or higher / Payout ratio 30% or more |
| Financial targets | ROE At least 15% (target for the fiscal year ending March 2030) / Operating profit margin At least 10% (target for the fiscal year ending March 2030) / Payout ratio At least 30% (medium-term target) |
| Annual Dividend | Annual dividend for the current fiscal year ¥16 per share / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | A medium-term payout ratio of 30%; dividends initiated at 26% for the current fiscal year |
| Acquisition of treasury shares | The company will consider share buybacks opportunistically, depending on the share price and market conditions. The amount, number of shares and period of the buyback authorization were not disclosed |
| New initiatives | Accelerate development of in-house endpoint products, with the aim of making them AI-agent based, Accelerate strategic investments and capital and business alliances leveraging ProofX's AI expertise, Launch the “AI Security” website featuring AI security media and Cato AI Security, Explore the possibility of providing AX and FDE consulting through Eye“247” Work Smart Cloud and ProofX |
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders 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.The IT Tools business reported higher revenue and profit, driven by expanded sales in the security sector centered on Cato and the contribution from ProofX. The IT Services business reported higher revenue due to higher unit prices resulting from employee training and the contribution of Youth Planet and ProofX following their consolidation. The Investment business, meanwhile, reported lower revenue and profit, reflecting the absence of the secondary offering conducted in connection with the IPO of portfolio company D in the same quarter of the previous fiscal year.
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