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How definitive the wording is.Contents of this document
Summary of Q&AFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net income¥325 100 million
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Profit for the period
¥350 100 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Although growth investment in the ICT business is behind plan, organic earnings growth has brought the company to a point where it can secure net income of ¥35 billion.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Factors behind the upside in underlying profit / Answer All segments exceeded expectations toward the end of the fiscal year. Concerns about future supply shortages arising from higher prices and the situation in the Middle East may have had an impact
- Issues Conservatism of the plan for the fiscal year ending March 2027 / Answer The plan is based on the medium-term management plan's final target of ¥35 billion, with forecasts to be revised as necessary after assessing progress and external conditions
- Issues Breakdown of organic growth and investment-led growth / Answer Of the increase in profit from ¥23.2 billion in the fiscal year ended March 2024 to ¥32.5 billion in the fiscal year ending March 2026, investment returns accounted for ¥1.8 billion. The remainder consisted of organic growth, nonrecurring gains and losses, and other factors
- Issues Delay in ICT-related investment / Answer Reasons include a mismatch in the valuation of target companies, potential sellers deciding not to proceed, and rising investment costs. If high-quality opportunities arise, investments exceeding the ¥40 billion allocation remain an option
- Issues Additional shareholder returns / Answer No additional shareholder returns are contemplated during the current medium-term management plan, but they have not been ruled out as an option under the next plan
- Issues Financial strategy and leverage / Answer Over the long term, the company intends to maintain gross interest-bearing debt and equity at a 1:1 ratio while managing capital efficiency and financial soundness
- Issues Market valuation and shareholder returns / Answer The delay in large-scale ICT investment is limiting the extent to which expectations are reflected in the share price's PER. The company will prioritize growth investment, with dividends linked to EPS growth
- Issues Critical costs and stable supply / Answer Both cost control and stable supply are important, but stable supply is the top priority in areas such as food and national security
- Issues ICT Solutions profit margin / Answer Margins in the systems business temporarily declined due to upfront costs and other factors associated with the transition to cloud and subscription models. Margins in the services and support business improved as a result of the transition
- Issues Impact of AI agents / Answer The company is using AI to improve in-house development efficiency, while recognizing that end-to-end services covering design and construction, maintenance and operations, and security are difficult to replace
- Issues Profit growth and outlook for the food business / Answer The shift in demand from beef to chicken and pork due to higher beef prices, together with the recovery in pork procurement, contributed to profit growth. Strong performance is expected to continue for some time, although the duration is uncertain
- Issues Response to the food supply chain / Answer The company aims to secure stable procurement and supply by diversifying and broadening sourcing regions and passing higher procurement costs through to selling prices
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in profit from actual results for the fiscal year ended March 2024 to actual results for the fiscal year ending March 2026¥9.3 billion
- Investment returns from investments, including M&A executed during the current medium-term management plan¥1.8 billion
- Organic growth, nonrecurring gains and losses, and other factorsRemaining amount
- Investment returns incorporated into the fiscal year ending March 2027Approximately ¥500 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
In light of the significant uncertainty over the outlook, the plan is based on the medium-term management plan's final target of ¥35 billion. Specific assumptions for foreign exchange rates, raw material prices, volumes, and other factors were not disclosed.New initiatives
- Build AI agents in the ICT field to improve development efficiency and productivity
- Expand the engineering organization through M&A
- Consider investments exceeding the initial ¥40 billion allocation if suitable ICT-related opportunities arise
- Continue diversifying and broadening sourcing regions in the food business
Key KPIsA metric the company considers important as a management benchmark.
- Net debt-to-equity ratio0.45 times
- PER10 approximately ×
- Average annual growth rate in earnings over the past 2 years18 %
- Dividend payout ratio30 Approximately %
Segment results
Food
Profit for the period
¥54 100 million
ICT SolutionsOnly the direction of the profit margin was explained; figures were not disclosed
Medium-term management plan targets
Final yearFiscal year ending March 2027
Profit for the period
¥350 100 million
Growth Investment
¥600 100 million
ICT-related investment target
¥400 100 million
Comparison with actual resultsThe amount invested in ICT-related initiatives to date is approximately ¥2 billion
Financial targets
Net debt-to-equity ratioApproximately 1x, or a 1:1 ratio, is considered acceptable
Gross interest-bearing debt and equity1:1
ROEThe company intends to maintain ROE at approximately twice its actual ROIC
Actual net DER0.45 times
Orders received and order backlog
Figures were not disclosed. Questions were raised about growth in ICT Solutions bookings and order backlogPayout ratio
Approximately 30%| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending March 2026, full year |
| Net income | ¥325 100 million |
| Full-year earnings forecast | Fiscal Period Covered Fiscal year ending March 2027 / Profit for the period ¥350 100 million |
| Self-assessment against the plan | Although growth investment in the ICT business is behind plan, organic earnings growth has brought the company to a point where it can secure net income of ¥35 billion. |
| Segment results | Food Profit for the period ¥54 100 million / Year on year against the same period last year Not disclosed / ICT Solutions Only the direction of the profit margin was explained; figures were not disclosed |
| Breakdown of Factors Affecting the Change | Factors Increase in profit from actual results for the fiscal year ended March 2024 to actual results for the fiscal year ending March 2026 / Amount ¥9.3 billion, Factors Investment returns from investments, including M&A executed during the current medium-term management plan / Amount ¥1.8 billion, Factors Organic growth, nonrecurring gains and losses, and other factors / Amount Remaining amount, Factors Investment returns incorporated into the fiscal year ending March 2027 / Amount Approximately ¥500 million |
| Key KPIs | Indicator name Net debt-to-equity ratio / Value 0.45 times / Year on year against the same period last year Not disclosed, Indicator name PER / Value 10 approximately × / Year on year against the same period last year Not disclosed, Indicator name Average annual growth rate in earnings over the past 2 years / Value 18 % / Year on year against the same period last year Not disclosed, Indicator name Dividend payout ratio / Value 30 Approximately % / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | In light of the significant uncertainty over the outlook, the plan is based on the medium-term management plan's final target of ¥35 billion. Specific assumptions for foreign exchange rates, raw material prices, volumes, and other factors were not disclosed. |
| Medium-term management plan targets | Final year Fiscal year ending March 2027 / Profit for the period ¥350 100 million / Growth Investment ¥600 100 million / ICT-related investment target ¥400 100 million / Comparison with actual results The amount invested in ICT-related initiatives to date is approximately ¥2 billion |
| Financial targets | Net debt-to-equity ratio Approximately 1x, or a 1:1 ratio, is considered acceptable / Gross interest-bearing debt and equity 1:1 / ROE The company intends to maintain ROE at approximately twice its actual ROIC / Actual net DER 0.45 times |
| Payout ratio | Approximately 30% |
| Orders received and order backlog | Figures were not disclosed. Questions were raised about growth in ICT Solutions bookings and order backlog |
| Key points of the Q&A | Issues Factors behind the upside in underlying profit / Answer All segments exceeded expectations toward the end of the fiscal year. Concerns about future supply shortages arising from higher prices and the situation in the Middle East may have had an impact, Issues Conservatism of the plan for the fiscal year ending March 2027 / Answer The plan is based on the medium-term management plan's final target of ¥35 billion, with forecasts to be revised as necessary after assessing progress and external conditions, Issues Breakdown of organic growth and investment-led growth / Answer Of the increase in profit from ¥23.2 billion in the fiscal year ended March 2024 to ¥32.5 billion in the fiscal year ending March 2026, investment returns accounted for ¥1.8 billion. The remainder consisted of organic growth, nonrecurring gains and losses, and other factors, Issues Delay in ICT-related investment / Answer Reasons include a mismatch in the valuation of target companies, potential sellers deciding not to proceed, and rising investment costs. If high-quality opportunities arise, investments exceeding the ¥40 billion allocation remain an option, Issues Additional shareholder returns / Answer No additional shareholder returns are contemplated during the current medium-term management plan, but they have not been ruled out as an option under the next plan, Issues Financial strategy and leverage / Answer Over the long term, the company intends to maintain gross interest-bearing debt and equity at a 1:1 ratio while managing capital efficiency and financial soundness, Issues Market valuation and shareholder returns / Answer The delay in large-scale ICT investment is limiting the extent to which expectations are reflected in the share price's PER. The company will prioritize growth investment, with dividends linked to EPS growth, Issues Critical costs and stable supply / Answer Both cost control and stable supply are important, but stable supply is the top priority in areas such as food and national security, Issues ICT Solutions profit margin / Answer Margins in the systems business temporarily declined due to upfront costs and other factors associated with the transition to cloud and subscription models. Margins in the services and support business improved as a result of the transition, Issues Impact of AI agents / Answer The company is using AI to improve in-house development efficiency, while recognizing that end-to-end services covering design and construction, maintenance and operations, and security are difficult to replace, Issues Profit growth and outlook for the food business / Answer The shift in demand from beef to chicken and pork due to higher beef prices, together with the recovery in pork procurement, contributed to profit growth. Strong performance is expected to continue for some time, although the duration is uncertain, Issues Response to the food supply chain / Answer The company aims to secure stable procurement and supply by diversifying and broadening sourcing regions and passing higher procurement costs through to selling prices |
| New initiatives | Build AI agents in the ICT field to improve development efficiency and productivity, Expand the engineering organization through M&A, Consider investments exceeding the initial ¥40 billion allocation if suitable ICT-related opportunities arise, Continue diversifying and broadening sourcing regions in the food business |
Items this document does not state (16)
Net SalesOperating profitOrdinary incomeGross 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 employeesRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesCapital expendituresMarket 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.The company stated that it was making the Q&A available to investors and the media to promote understanding. Regarding performance, it cited all segments exceeding expectations, concerns about supply shortages amid rising prices and the situation in the Middle East, and a shift in food-business demand from beef to chicken and pork.
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