Sustained Achievement of 15% ROE

「ROE was 7.7%, below the planned 11.2%, due mainly to spending on the development of products and services including “HULFT Square” and investment in human capital, but we will continue to manage the business with a focus on reaching the target level. As the following fiscal year will also be a period of business-structure transformation, we will continue spending on product and service development and human capital, and planned ROE is 7.2%.」

「ROE was 10.6%, exceeding the planned 10.5%, due mainly to a temporary increase in revenue from the acceptance of system development projects in the distribution IT services business and the expansion of the data integration business. We will continue to manage the business with a focus on reaching the target level. ROE of 11.2% is planned for the following fiscal year, supported by earnings improvement from further revenue growth in the data integration business.」

「Net income attributable to owners of the parent declined 58.1% from the previous fiscal year due mainly to the recognition of ¥1,805 million in provision for contract loss provisions as cost of sales in the distribution IT services business. ROE was therefore 4.2%, below the planned 8.9%, but we will continue to manage the business with a focus on reaching the target level. In the following fiscal year, ROE is planned to recover to 10.5% because no provision for contract loss provisions incurred in the distribution IT services business during the fiscal year under review will be recognized.」

「Net income attributable to owners of the parent declined 29.8% from the previous fiscal year due mainly to spending on the development of products and services including “HULFT Square” and investment in human capital, resulting in ROE of 9.8%. However, because net income attributable to owners of the parent exceeded the initial plan, ROE also exceeded the planned figure. As the group will continue spending on product and service development and human capital in the fiscal year ending March 2024, planned ROE is 8.9%.」

「The company has set ROE of 20% as a management metric, aims for an optimal capital structure by maintaining an equity ratio of 50%–75% while using a DOE (dividend on equity) of 10% as a guideline, and will continue to recognize the importance of the cost of capital while pursuing high ROE.」

「Net income attributable to owners of the parent declined 16.6% from the previous fiscal year due mainly to higher research and development expenses, resulting in ROE of 14.3%. This exceeded the planned figure. For the fiscal year ending March 2023, the planned ROE is 8.9% due mainly to further investment for future growth.」

「As described above, net income attributable to owners of the parent declined in the fiscal year under review due to the recognition of an extraordinary loss, falling 46.0% from the previous fiscal year. As a result, ROE was 8.5%, below the planned 15.3%, but we will continue to manage the business with a focus on reaching the target level.」

「Our group’s management objective is to become an attractive and rare high-profit IT company over the medium to long term and enhance corporate value. Specifically, we use the consistent achievement of ROE of at least 20% as a management metric.」

「We will seek to achieve long-term growth through the realignment of our business portfolio and stronger alliances, and establish a business foundation capable of consistently achieving ROE of 15%.」