Contents of this document
Financial results presentationThird quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,576 million+82.2%
Operating profit¥232 million+31.3%
Ordinary income¥243 million+33.0%
Net income¥115 million
Operating profit margin4.2 %
Full-year earnings forecast
Net Sales
¥7,338 million
Operating profit
¥164 million
Ordinary income
¥151 million
Profit attributable to owners of the parent
¥91 million
EPS
25 Yen
Annual Dividend
85 Yen
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。
Consolidated
Net Sales76
Gross profit78.1
Operating profit141.1
Ordinary income160.6
Profit attributable to owners of the parent127.2
Segment
Inside sales outsourcing business
Net Sales77.6
Segment profit115
Process and technology business
Net Sales56.3
Segment profit28.5
Training business
Net Sales85.3
Segment profit124.3
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Against the full-year plan revised downward, revenue is tracking in line with plan and profit is progressing above plan. Although the Process and Technology business is slightly below plan, the inside sales outsourcing business is above plan, while the training business and AI and DX business are progressing smoothly in line with plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Inside sales outsourcing business-357
Process and technology business-89
Comprehensive support-762
Training business-61
EraX64
Operating profit
Revenue (excluding TS and EraX)-509
Cost of sales and SG&A expenses-10
TS operating profit-4
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Q4 forecast idle rate3.5
2026 foreign-owned IT project ratio37
New initiatives
- Launch of the AI and DX business from July 2026
- Making EraX a wholly owned subsidiary and a consolidated subsidiary
- In the inside sales business, changing to a senior customer coverage model led by the Sales Department
- Establishment of a Resource Management Division
- Authorization of short-term telemarketing and spot projects
- Launch of agency services through inside sales
- Establishment of a Strategic Accounts Sales Department and a New Business Development Sales Department in the training business
- Expansion of the center delivery model in the training business
Key KPIsA metric the company considers important as a management benchmark.
Revenue concentration of the top 10 customers58
Retention rate of the top 10 revenue-generating customers90
Average tenure of the top 10 revenue-generating customers9
Inside sales business contribution margin89.3
Q3 idle rate13.6
Q4 forecast idle rate3.5
Segment results
Inside sales outsourcing business
Net Sales
¥3,107 million+89.7%
Segment profit
¥420 million+100.1%
Segment profit under the former definition
¥125 million+29.9%
Process and technology business
Net Sales
¥507 million+85.0%
Segment profit
¥44 million+72.9%
Segment profit under the former definition
¥-9.3 million
Training business
Net Sales
¥1,897 million+96.8%
Segment profit
¥140 million+53.8%
AI and DX Business
Net Sales
¥64 million+390.0%
Segment profit
¥-4 million
Profit before goodwill amortization
¥38.8 million
Financial targets
ROE
Target16 % or higher
PER
Target18 times or more
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Annual revenue capacity lost due to the termination or downsizing of projects with 3 major foreign-owned IT companies620
Shortfall against the expansion plan for existing and new business549
Annual Dividend
85 Yen
Payout ratio
50 %
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Third quarter of the fiscal year ending December 2026 |
| Net Sales | ¥5,576 million (YoY +82.2%) |
| Operating profit | ¥232 million (YoY +31.3%) |
| Ordinary income | ¥243 million (YoY +33.0%) |
| Net income | ¥115 million |
| Operating profit margin | 4.2 % |
| Full-year earnings forecast | Net Sales ¥7,338 million / Gross profit Not disclosed / Operating profit ¥164 million / Ordinary income ¥151 million / Profit attributable to owners of the parent ¥91 million / EPS 25 Yen / Annual Dividend 85 Yen |
| Progress against full-year forecast | Consolidated Net Sales 76 / Gross profit 78.1 / Operating profit 141.1 / Ordinary income 160.6 / Profit attributable to owners of the parent 127.2 / Segment Inside sales outsourcing business Net Sales 77.6 / Segment profit 115 / Process and technology business Net Sales 56.3 / Segment profit 28.5 / Training business Net Sales 85.3 / Segment profit 124.3 / AI and DX Business Not disclosed |
| Self-assessment against the plan | Against the full-year plan revised downward, revenue is tracking in line with plan and profit is progressing above plan. Although the Process and Technology business is slightly below plan, the inside sales outsourcing business is above plan, while the training business and AI and DX business are progressing smoothly in line with plan. |
| Segment results | Inside sales outsourcing business Net Sales ¥3,107 million (YoY +89.7%) / Segment profit ¥420 million (YoY +100.1%) / Segment profit under the former definition ¥125 million (YoY +29.9%) / Process and technology business Net Sales ¥507 million (YoY +85.0%) / Segment profit ¥44 million (YoY +72.9%) / Segment profit under the former definition ¥-9.3 million / Training business Net Sales ¥1,897 million (YoY +96.8%) / Segment profit ¥140 million (YoY +53.8%) / AI and DX Business Net Sales ¥64 million (YoY +390.0%) / Segment profit ¥-4 million / Profit before goodwill amortization ¥38.8 million |
| Breakdown of Factors Affecting the Change | Net Sales Inside sales outsourcing business -357 / Process and technology business -89 / Comprehensive support -762 / Training business -61 / EraX 64 / Operating profit Revenue (excluding TS and EraX) -509 / Cost of sales and SG&A expenses -10 / TS operating profit -4 |
| Key KPIs | Revenue concentration of the top 10 customers 58 / Retention rate of the top 10 revenue-generating customers 90 / Average tenure of the top 10 revenue-generating customers 9 / Inside sales business contribution margin 89.3 / Q3 idle rate 13.6 / Q4 forecast idle rate 3.5 |
| Assumptions Underlying the Business Outlook | Q4 forecast idle rate 3.5 / 2026 foreign-owned IT project ratio 37 |
| Risk amount incorporated into the outlook | Annual revenue capacity lost due to the termination or downsizing of projects with 3 major foreign-owned IT companies 620 / Shortfall against the expansion plan for existing and new business 549 |
| Financial targets | ROE Target 16 % or higher / PER Target 18 times or more |
| Annual Dividend | 85 Yen |
| Payout ratio | 50 % |
| New initiatives | Launch of the AI and DX business from July 2026, Making EraX a wholly owned subsidiary and a consolidated subsidiary, In the inside sales business, changing to a senior customer coverage model led by the Sales Department, Establishment of a Resource Management Division, Authorization of short-term telemarketing and spot projects, Launch of agency services through inside sales, Establishment of a Strategic Accounts Sales Department and a New Business Development Sales Department in the training business, Expansion of the center delivery model in the training business |
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsAcquisition 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.