Contents of this document
- Decline due to lower revenue-¥46 million
- Improving Profitability+¥612 million
- Additional costs from project losses-¥433 million
- Personnel expenses and improved employee compensation-¥176 million
- Increase in headcount due to higher personnel expenses and expanded recruitment-¥218 million
- Research and development-related expenses-¥103 million
- Goodwill amortization-¥18 million
- Training investment-¥16 million
- Other expenses-¥244 million
- Completed one M&A transaction involving the acquisition of shares in ブリットアプリケーション株式会社
- Enhanced the functionality of proprietary solutions and introduced new solutions, including EBOM solutions
- Strengthened the sales structure for the SaaS-based ERP solution D-Ever flex
- Enhanced PM training and PMO capabilities
- Introduction of a Shareholder Benefit Program
- Introduced interim dividends from the fiscal year ending March 2027
- Orders received¥43,167 millionYear on year against the same period last year+2.1%
- Order backlog¥10,351 millionYear on year against the same period last year+6.9%
- Existing customer revenue ratio93.7 %Year on year against the same period last year+1.6pt
- Recurring-revenue ratio40.2 %Year on year against the same period last year+5.8pt
- ROE10.9 %
- ROIC8.7 %
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥42,500 million (YoY -0.4%) |
| Operating profit | ¥1,903 million (YoY -21.0%) |
| Ordinary income | ¥1,991 million (YoY -20.2%) |
| Net income | ¥1,442 million (YoY -14.3%) |
| Gross Profit Margin | 25.1% |
| Operating profit margin | 4.5% |
| Selling, general and administrative expenses | ¥8,784 million |
| Results for the three months of the current quarter | Fourth quarter of the fiscal year ended March 2026: revenue ¥10,096 million, gross profit ¥2,303 million, operating profit ¥189 million |
| Full-year earnings forecast | Net Sales ¥43,500 million / Operating profit ¥2,600 million / Ordinary income ¥2,680 million / Net income ¥1,750 million |
| Segment results | Priority Solutions Orders received ¥8,872 million / Net Sales ¥9,142 million / Gross profit ¥3,051 million / Core business Orders received ¥34,295 million / Net Sales ¥33,357 million / Gross profit ¥7,637 million / Product solutions Orders received ¥2,905 million / Net Sales ¥2,851 million / Gross profit ¥858 million / Software solutions Orders received ¥22,516 million / Net Sales ¥22,191 million / Gross profit ¥6,435 million / Network Solutions Orders received ¥17,746 million / Net Sales ¥17,457 million / Gross profit ¥3,394 million |
| Breakdown of Factors Affecting the Change | Factors Decline due to lower revenue / Amount -¥46 million, Factors Improving Profitability / Amount +¥612 million, Factors Additional costs from project losses / Amount -¥433 million, Factors Personnel expenses and improved employee compensation / Amount -¥176 million, Factors Increase in headcount due to higher personnel expenses and expanded recruitment / Amount -¥218 million, Factors Research and development-related expenses / Amount -¥103 million, Factors Goodwill amortization / Amount -¥18 million, Factors Training investment / Amount -¥16 million, Factors Other expenses / Amount -¥244 million |
| Key KPIs | Indicator name Orders received / Value ¥43,167 million / Year on year against the same period last year +2.1%, Indicator name Order backlog / Value ¥10,351 million / Year on year against the same period last year +6.9%, Indicator name Existing customer revenue ratio / Value 93.7 % / Year on year against the same period last year +1.6pt, Indicator name Recurring-revenue ratio / Value 40.2 % / Year on year against the same period last year +5.8pt, Indicator name ROE / Value 10.9 % / Year on year against the same period last year Not disclosed, Indicator name ROIC / Value 8.7 % / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 1,332 employees (consolidated, as of the end of March 2026) / Change during the period The consolidated number of engineers was 851, down by 12 from 863 in the previous fiscal year / Hiring plan Not disclosed |
| Medium-term management plan targets | Plan name CANVAS TWO / Target fiscal year Fiscal year ending March 2028 / Net Sales ¥45,000 million / Gross profit ¥12,500 million / Operating profit ¥3,000 million / Profit attributable to owners of the parent Net income attributable to owners of the parent: ¥2,050 million / Operating profit margin 6.7% |
| Financial targets | Target equity ratio 50% / Target cash and deposits ¥6 billion / DOE guideline 3% / Actual results Equity ratio 49.1% / ROE 10.9% / ROIC 8.7% |
| Annual Dividend | Fiscal year ending March 2026 ¥36 per share (interim ¥18, year-end ¥18) / Forecast for the fiscal year ending March 2027 ¥38 per share (interim ¥19, year-end ¥19) |
| Acquisition of treasury shares | The company will consider opportunistic share buybacks as appropriate. The amount, number of shares and period of the acquisition program are not disclosed |
| Orders received and order backlog | Orders received ¥43,167 million / Order backlog ¥10,351 million |
| New initiatives | Completed one M&A transaction involving the acquisition of shares in ブリットアプリケーション株式会社, Enhanced the functionality of proprietary solutions and introduced new solutions, including EBOM solutions, Strengthened the sales structure for the SaaS-based ERP solution D-Ever flex, Enhanced PM training and PMO capabilities, Introduction of a Shareholder Benefit Program, Introduced interim dividends from the fiscal year ending March 2027 |
Items this document does not state (10)
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 reasons given for the decline in profit were restrained hardware sales, lower network construction revenue, additional costs incurred in response to one-off project losses, research and development of proprietary solutions, increased employee compensation and training investment, and higher personnel and other expenses.