Contents of this document
- Establishment of the CAXO (Chief AI Transformation Officer) position and the AX Promotion Department
- Establishment of a cross-business-unit AI CoE
- Proof-of-concept testing for a system development process conducted in collaboration with AI
- Holding an AI Prompt Contest
- Launch of use of the online learning service for engineers, Sawary Park
- Introduction of a career design leave of absence program
- Abolition of the executive retirement benefit program and introduction of an executive share-based compensation program
- PBR0.8xYear on year against the same period last year+0.1x vs. 31 March 2026
- Share price (closing price)¥1,399Year on year against the same period last year+¥120 vs. 31 March 2026
- ROE6.0% (FY2025 actual)Year on year against the same period last yearImproved from 4.3% in FY2022
- Total number of entries in the AI Prompt Contest1,149 Engagements
- Financial-relatedNet Sales¥2,064 millionYear-on-year change in revenue+¥402 millionSegment profit¥507 millionYear-on-year change in profit+¥172 millionOperating margin24.6%
- Public-relatedNet Sales¥1,246 millionYear-on-year change in revenue+¥9 millionSegment profit¥67 millionYear-on-year change in profit+¥1 millionOperating margin5.4%
- Industrial-relatedNet Sales¥1,864 millionYear-on-year change in revenue-¥198 millionSegment profit¥280 millionYear-on-year change in profit-¥110 millionOperating margin15.0%
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥5,175 million (YoY +4.3%) |
| Operating profit | ¥-4 million |
| Ordinary income | ¥103 million |
| Net income | ¥71 million (profit attributable to owners of the parent) |
| Gross Profit Margin | 26.3% |
| Selling, general and administrative expenses | ¥1,365 million |
| Results for the three months of the current quarter | Net sales ¥5,175 million, gross profit ¥1,361 million, SG&A expenses ¥1,365 million, operating loss ¥4 million, ordinary profit ¥103 million, quarterly net income attributable to owners of the parent ¥71 million |
| Full-year earnings forecast | Net Sales ¥25,700 million / Operating profit ¥1,420 million / Ordinary income ¥1,620 million / Net income ¥1,230 million (net income attributable to owners of the parent) |
| Self-assessment against the plan | Implemented as planned / progressing as planned for the current fiscal year |
| Segment results | Segment Financial-related / Net Sales ¥2,064 million / Year-on-year change in revenue +¥402 million / Segment profit ¥507 million / Year-on-year change in profit +¥172 million / Operating margin 24.6%, Segment Public-related / Net Sales ¥1,246 million / Year-on-year change in revenue +¥9 million / Segment profit ¥67 million / Year-on-year change in profit +¥1 million / Operating margin 5.4%, Segment Industrial-related / Net Sales ¥1,864 million / Year-on-year change in revenue -¥198 million / Segment profit ¥280 million / Year-on-year change in profit -¥110 million / Operating margin 15.0% |
| Key KPIs | Indicator PBR / Value 0.8x / Year on year against the same period last year +0.1x vs. 31 March 2026, Indicator Share price (closing price) / Value ¥1,399 / Year on year against the same period last year +¥120 vs. 31 March 2026, Indicator ROE / Value 6.0% (FY2025 actual) / Year on year against the same period last year Improved from 4.3% in FY2022, Indicator Total number of entries in the AI Prompt Contest / Value 1,149 Engagements / Year on year against the same period last year Not disclosed |
| Medium-term management plan targets | Net Sales 280 Hundreds of millions of yen / Operating profit 19 Hundreds of millions of yen / Operating profit margin 6.8 % / ROE 6.4 % / PBR 1 times / Three-year strategic growth investment 100 Hundreds of millions of yen |
| Financial targets | ROE of 8% or higher (FY2031), PBR of 1x or higher (FY2028), DOE of 3.5-4.0% (medium-term management plan period) |
| Annual Dividend | ¥62 per share |
| Payout ratio | not disclosed (FY2025 actual of 50.3% shown as a prior-year result) |
| Acquisition of treasury shares | Treasury share acquisitions and disposals mentioned. The acquisition amount, number of shares and period are not disclosed |
| Capital expenditures | ¥40 100 million (medium-term management plan period) |
| New initiatives | Establishment of the CAXO (Chief AI Transformation Officer) position and the AX Promotion Department, Establishment of a cross-business-unit AI CoE, Proof-of-concept testing for a system development process conducted in collaboration with AI, Holding an AI Prompt Contest, Launch of use of the online learning service for engineers, Sawary Park, Introduction of a career design leave of absence program, Abolition of the executive retirement benefit program and introduction of an executive share-based compensation program |
Items this document does not state (11)
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 mainly because system development projects grew for the SMBC Group, municipal information system standardization projects, and SAP business projects. Gross profit increased as the company focused on highly profitable businesses, but first-quarter investment outlays preceded the resulting benefits, and profit declined because growth and infrastructure investments, including office environment improvements, base-pay increases and employee training, were implemented as planned.