Sustainable growth through a more diversified earnings base

「Based on the three-year outlook announced in May 2026, the Company is pursuing measures focused on expanding consolidated ordinary revenue and consolidated ordinary profit in order to maximize the Group’s sustainability and growth. As its forward-looking targets, the Company has set the following targets for fiscal 2028: fiscal 2025 results: consolidated ordinary revenue of ¥220.0 billion, consolidated ordinary profit of ¥30.1 billion and consolidated ROE of 4.8%; fiscal 2028 targets: consolidated ordinary revenue of ¥280.0 billion, consolidated ordinary profit of ¥40.0 billion and consolidated ROE of at least 8.0%.」

「Fiscal 2023 results | Fiscal 2025 target (initial plan) | Fiscal 2025 target (updated) | Consolidated ordinary revenue | ¥197.8 billion | ¥170.0 billion | ¥250.0 billion | Consolidated ordinary profit | ¥30.5 billion | ¥35.0 billion | ¥45.0 billion | ROE | 12.2% | At least 8.0% | At least 8.0%」

「Holders of the stock acquisition rights may exercise these stock acquisition rights only if all of the following financial targets set out in the Company’s medium-term management plan are achieved: (a) ordinary revenue in the consolidated income statement for the fiscal year ending March 2026: ¥250.0 billion; (b) ordinary profit in the consolidated income statement for the fiscal year ending March 2026: ¥45.0 billion; and (c) ROE calculated based on the consolidated balance sheet and consolidated income statement for the fiscal year ending March 2026: 8%.」

「Fiscal 2022 results | Fiscal 2025 target (initial plan) | Fiscal 2025 target (updated) | Consolidated ordinary revenue | ¥154.9 billion | ¥170.0 billion | ¥250.0 billion | Consolidated ordinary profit | ¥28.9 billion | ¥35.0 billion | ¥45.0 billion | ROE | 7.6% | At least 8.0% | At least 8.0%」

「Fiscal 2021 results | Fiscal 2025 target | Consolidated ordinary revenue | ¥136.6 billion | ¥170.0 billion | Consolidated ordinary profit | ¥28.2 billion | ¥35.0 billion | ROE | 8.7% | At least 8.0%」

「The Company positioned the five-year period through 2025 as a period for improving sustainability and growth and giving concrete form to its “second growth,” and formulated a medium-term management plan for fiscal 2021 through fiscal 2025.」

「Regarding the forecast for the fiscal year ending March 2021, many factors remained uncertain regarding the impact of the spread of COVID-19 on the Group, making it difficult to calculate an appropriate and reasonable forecast. Accordingly, the forecast was left undecided as of 23 June 2020. Based on the business environment and performance trends as of 7 August 2020, and calculated on the assumption that the impact of the spread of COVID-19 on the Company’s business would continue through the end of the fiscal year, the forecast for the fiscal year ending March 2021 is consolidated ordinary revenue of ¥134.2 billion and consolidated ordinary profit of ¥32.8 billion.」

「Our earnings forecast for the fiscal year ending March 2021 is consolidated ordinary revenue of ¥134.2 billion and consolidated ordinary profit of ¥32.8 billion.」

「Although our earnings forecasts had been left undetermined, we have calculated them based on the current business environment and earnings trends, as well as certain assumptions through the end of the fiscal year. Our earnings forecast for the fiscal year ending March 2021 is consolidated ordinary revenue of ¥134.2 billion and consolidated ordinary profit of ¥32.8 billion.」

「We place particular emphasis on consolidated ordinary revenue and consolidated ordinary profit as management indicators for continuously enhancing corporate value. However, given the uncertain economic outlook, including the expected further spread and prolonged impact of the novel coronavirus disease (COVID-19) worldwide and tighter regulations by governments in response, we have postponed announcing the New Medium-Term Management Plan because it is currently difficult to make appropriate and reasonable future estimates for the Group.」

「We place particular emphasis on consolidated ordinary revenue and consolidated ordinary profit as management indicators for maximizing group corporate value, and announced in May 2017 a medium-term management plan targeting consolidated ordinary revenue of ¥161.6 billion and consolidated ordinary profit of ¥44.7 billion for the fiscal year ending March 2020. However, given the difficult business environment, we determined that it would be difficult to recover delays in implementing the plan, and revised the targets for the fiscal year ending March 2020 to consolidated ordinary revenue of ¥148.9 billion and consolidated ordinary profit of ¥39.7 billion, thereby changing the numerical targets in the medium-term management plan. The key initiatives other than the numerical targets remain unchanged: we will continue promoting the basic policy of diversifying our businesses while expanding our core business, working to enhance corporate value over the medium to long term and achieve sustainable growth.」

「For fiscal 2019, the final year of the medium-term management plan, we are targeting consolidated ordinary profit of ¥44.7 billion. Fiscal 2019 plan Consolidated ordinary revenue ¥161.6 billion Consolidated ordinary profit ¥44.7 billion Consolidated ROE At least 13%」

「We formulated a medium-term management plan ending in fiscal 2019. Positioning the plan period as a time to build the foundation for long-term growth, we will work to expand our business by strengthening the following 3 businesses: ① ATM platform business ② payment account business ③ overseas business. In fiscal 2019, the final year of the plan, we are targeting consolidated ordinary profit of ¥44.7 billion.」

「We recognize that an important management challenge in achieving sustainable growth is to build a more diversified earnings structure by (1) further strengthening the ATM business, (2) deepening the financial services business, and (3) pursuing overseas operations and the development of new businesses.」