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Presentation materials for financial results4444INFONET GROUP inc.Information and Communications, Services and Others

Q&A on the full-year financial results for the fiscal year ending March 2026

For the fiscal year ending March 2026, both revenue and profit fell short of the initial plan, and the bottom line shifted from the planned profit to a net loss. In addition to the deferral of orders into a different fiscal period, office relocation costs, upfront investments for growth, and an impairment loss at a subsidiary weighed on profit.

Worth reading
49Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
115
¥ million (variance from operating income plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Summary of Q&AFiscal year ending March 2026, full year6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,085 million
Operating profit¥55 million
Ordinary income¥50 million
Net income-25 Millions of yen net loss attributable to owners of the parent
Full-year earnings forecast
Net Sales
¥2,230 million
Operating profit
¥171 million
Profit attributable to owners of the parent
¥96 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below-plan results
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Reasons for falling short of the full-year plan
  2. Growth drivers, service offerings, and competitive advantages of the AI Services Business
  3. Profitability of the AI Services and Web/CMS businesses
  4. Continuation of investments and timing of returns
  5. Policy on continuing the shareholder benefit program
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • One-time costs associated with the head office relocation¥48 million
  • Strategic upfront investments¥167 million
  • Extraordinary loss from impairment charges at a subsidiary¥59 million
  • Deferral of revenue recognition due to delays in orders
New initiatives
  • Continue investing in product evolution for the AI Services and Web/CMS businesses
  • Invest in an organizational structure to promote and manage greater efficiency through employee development and the use of AI
  • Develop high-value-added solutions by integrating and linking proprietary AI with various functions
  • Partner strategy and consolidation of internal operations
  • Continuation of the Shareholder Benefit Program
Key KPIsA metric the company considers important as a management benchmark.
  • Full-year revenue from the AI Services Business3.54 Hundreds of millions of yen
  • Flow revenue from the Web/CMS Business10.5 Hundreds of millions of yen
    Year on year against the same period last yearUp 9.5% year on year
  • Recurring revenue from the Web/CMS Business10.34 Hundreds of millions of yen
    Year on year against the same period last yearDown 2.5% year on year
Segment results
AI Services Business
Net Sales
3.54 Hundreds of millions of yen
Web/CMS Business—flow revenue
Net Sales
10.5 Hundreds of millions of yen
Year on year against the same period last yearUp 9.5% year on year
Web/CMS Business—recurring revenue
Net Sales
10.34 Hundreds of millions of yen
Year on year against the same period last yearDown 2.5% year on year
Contents of this document
ItemDetails
Document typeSummary of Q&A
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥2,085 million
Operating profit¥55 million
Ordinary income¥50 million
Net income-25 Millions of yen (net loss attributable to owners of the parent)
Full-year earnings forecastNet Sales ¥2,230 million / Operating profit ¥171 million / Profit attributable to owners of the parent ¥96 million
Self-assessment against the planBelow-plan results
Segment resultsAI Services Business Net Sales 3.54 Hundreds of millions of yen / Profit Not disclosed / Web/CMS Business—flow revenue Net Sales 10.5 Hundreds of millions of yen / Year on year against the same period last year Up 9.5% year on year / Profit Not disclosed / Web/CMS Business—recurring revenue Net Sales 10.34 Hundreds of millions of yen / Year on year against the same period last year Down 2.5% year on year / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors One-time costs associated with the head office relocation / Amount ¥48 million, Factors Strategic upfront investments / Amount ¥167 million, Factors Extraordinary loss from impairment charges at a subsidiary / Amount ¥59 million, Factors Deferral of revenue recognition due to delays in orders / Amount Not disclosed
Key KPIsIndicator name Full-year revenue from the AI Services Business / Value 3.54 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Flow revenue from the Web/CMS Business / Value 10.5 Hundreds of millions of yen / Year on year against the same period last year Up 9.5% year on year, Indicator name Recurring revenue from the Web/CMS Business / Value 10.34 Hundreds of millions of yen / Year on year against the same period last year Down 2.5% year on year
Key points of the Q&AReasons for falling short of the full-year plan, Growth drivers, service offerings, and competitive advantages of the AI Services Business, Profitability of the AI Services and Web/CMS businesses, Continuation of investments and timing of returns, Policy on continuing the shareholder benefit program
New initiativesContinue investing in product evolution for the AI Services and Web/CMS businesses, Invest in an organizational structure to promote and manage greater efficiency through employee development and the use of AI, Develop high-value-added solutions by integrating and linking proprietary AI with various functions, Partner strategy and consolidation of internal operations, Continuation of the Shareholder Benefit Program
Items this document does not state (18)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share

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.

In the first half, the timing of revenue recognition for certain orders was deferred due to delays, and one-time costs of ¥48 million were incurred in connection with the relocation of the head office. For the full year, the company made ¥167 million in strategic upfront investments, including depreciation of the next-generation CMS, personnel expenses associated with strengthening its workforce, and server costs. It also recorded an extraordinary loss of ¥59 million resulting from impairment charges at a subsidiary.

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Q&A on the full-year financial results for the fiscal year ending March 2026 | INFONET GROUP inc. (4444) timely disclosure | Komori