Worth reading
66In 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
4.31
¥ billions (operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFull fiscal year ended February 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales+22% year on year+22.0%
Operating profit¥4.31 100 million+362.0%
Net income¥-1.68 100 million
Operating profit margin4.8 %
Results for the three months of the current quarterThe DX Promotion Business became profitable in Q4 due to a large transaction. Segment profit in the AI Security Business was ¥79 million, while the Smart City Business closed 3 real estate transactions.
Full-year earnings forecast
Net Sales
¥85 100 million
Operating profit
¥4.6 100 million
Net incomeProjected conservatively, but the figure is not disclosed
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。
Digital Risk businessAchievement of the earnings forecast was below 100%
Other businessesGenerally exceeded the earnings forecast
Corporate ExpensesReduced by just under 10% compared with the earnings forecast
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The Digital Risk Business fell short of the plan, other businesses generally exceeded the plan, and company-wide expenses were reduced by more than plannedBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Loss of profit from the previous fiscal year due to the carve-out of the DX Promotion Business-26 million yen
- Increase in operating profit from core businesses150 million yen
- Increase in group operating profit100 million yen
- Investment in Human Resources-120 million yen
- Increase in sales promotion and advertising expenses-15 million yen
- Temporary additional costs associated with the office relocation-60 million yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- AssumptionsExecution of the DX Promotion Business carve-outFiguresAssumes exclusion from the consolidated accounts from the fiscal year ending February 2027
- AssumptionsOverlapping costs related to the office relocationFigures60 million yen
New initiatives
- Launch of an image risk detection service
- Launch of a new AI governance service
- Expansion of the IRI Business
- Development of new businesses and areas using the assets of the Social Risk Business
- Preparation for and individual sale of the DX Promotion Business carve-out
- Office Relocation
- Change to a rolling approach for the medium-term management plan
Key KPIsA metric the company considers important as a management benchmark.
- ARRIncreased by ¥50 million from 6 months earlier and recovered to a slight year-on-year increaseYear on year against the same period last yearSlight increase
- Number of IRI IDsIncreased by 10,000 IDs from 6 months earlier, but fell short year on yearYear on year against the same period last yearDecreased
- Monthly billable person-monthsExceeded the target
Segment results
- Digital Risk businessSales+9.2% year on yearProfitUp 7.7% year on year
- AI Security businessSales+37% year on yearProfit¥79 million profit, compared with a loss in the previous fiscal year
- DX Promotion BusinessProfitBecame profitable due to a large transaction in Q4
- Smart City BusinessProfitBecame profitable after 2 consecutive years of losses
Medium-term management plan targets
Target fiscal yearFiscal year ending February 2029
Operating profit margin12% or more
Operating profit¥900 million
Equity ratio40% or more
Comparison with actual resultsOperating margin was 4.8% in the previous fiscal year, operating profit was ¥430 million, and the equity ratio was 26%
Financial targets
Operating profit margin
Target12% or more
Actual results4.8 %
Operating profit
Target¥9 100 million
Actual results¥4.3 100 million
Equity ratio
Target40% or more
Actual results26 %
Number of stores and locations
Opened the Yokohama office. The number of offices and other openings and closures at fiscal year-end are not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Full fiscal year ended February 2026 |
| Net Sales | +22% year on year (YoY +22.0%) |
| Operating profit | ¥4.31 100 million (YoY +362.0%) |
| Net income | ¥-1.68 100 million |
| Operating profit margin | 4.8 % |
| Results for the three months of the current quarter | The DX Promotion Business became profitable in Q4 due to a large transaction. Segment profit in the AI Security Business was ¥79 million, while the Smart City Business closed 3 real estate transactions. |
| Full-year earnings forecast | Net Sales ¥85 100 million / Operating profit ¥4.6 100 million / Net income Projected conservatively, but the figure is not disclosed |
| Progress against full-year forecast | Digital Risk business Achievement of the earnings forecast was below 100% / Other businesses Generally exceeded the earnings forecast / Corporate Expenses Reduced by just under 10% compared with the earnings forecast |
| Self-assessment against the plan | The Digital Risk Business fell short of the plan, other businesses generally exceeded the plan, and company-wide expenses were reduced by more than planned |
| Segment results | Segment Digital Risk business / Sales +9.2% year on year / Profit Up 7.7% year on year, Segment AI Security business / Sales +37% year on year / Profit ¥79 million profit, compared with a loss in the previous fiscal year, Segment DX Promotion Business / Sales Not disclosed / Profit Became profitable due to a large transaction in Q4, Segment Smart City Business / Sales Not disclosed / Profit Became profitable after 2 consecutive years of losses |
| Breakdown of Factors Affecting the Change | Factors Loss of profit from the previous fiscal year due to the carve-out of the DX Promotion Business / Amount -26 million yen, Factors Increase in operating profit from core businesses / Amount 150 million yen, Factors Increase in group operating profit / Amount 100 million yen, Factors Investment in Human Resources / Amount -120 million yen, Factors Increase in sales promotion and advertising expenses / Amount -15 million yen, Factors Temporary additional costs associated with the office relocation / Amount -60 million yen |
| Key KPIs | Indicator name ARR / Value Increased by ¥50 million from 6 months earlier and recovered to a slight year-on-year increase / Year on year against the same period last year Slight increase, Indicator name Number of IRI IDs / Value Increased by 10,000 IDs from 6 months earlier, but fell short year on year / Year on year against the same period last year Decreased, Indicator name Monthly billable person-months / Value Exceeded the target / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Opened the Yokohama office. The number of offices and other openings and closures at fiscal year-end are not disclosed |
| Assumptions Underlying the Business Outlook | Assumptions Execution of the DX Promotion Business carve-out / Figures Assumes exclusion from the consolidated accounts from the fiscal year ending February 2027, Assumptions Overlapping costs related to the office relocation / Figures 60 million yen |
| Medium-term management plan targets | Target fiscal year Fiscal year ending February 2029 / Operating profit margin 12% or more / Operating profit ¥900 million / Equity ratio 40% or more / Comparison with actual results Operating margin was 4.8% in the previous fiscal year, operating profit was ¥430 million, and the equity ratio was 26% |
| Financial targets | Operating profit margin Target 12% or more / Actual results 4.8 % / Operating profit Target ¥9 100 million / Actual results ¥4.3 100 million / Equity ratio Target 40% or more / Actual results 26 % |
| New initiatives | Launch of an image risk detection service, Launch of a new AI governance service, Expansion of the IRI Business, Development of new businesses and areas using the assets of the Social Risk Business, Preparation for and individual sale of the DX Promotion Business carve-out, Office Relocation, Change to a rolling approach for the medium-term management plan |
Items this document does not state (13)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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 increase in operating profit was attributed to a large transaction in the DX Promotion Business in Q4, higher profits in the Digital Risk Business and other businesses, and optimization of company-wide expenses. The net loss was attributed to total impairment losses of ¥274 million, including those related to the carve-out of JAPANDX, and the restructuring of unprofitable businesses.
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.
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