Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
322
¥100 million (increase from actual consolidated net sales for the fiscal year ending March 2026 to the plan for the fiscal year ending March 2029)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+27.3%
基準 117,813Target150,000million
Operating profit+22.7%
基準 19,073Target23,400million
Operating profit margin-0.6pt
基準 16.2Target15.6％
Net income for the current fiscal year+18.4%
基準 13,009Target15,400million
ROE+0.1pt
基準 18.4Target18.5％
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous plan¥100 billion → ¥117,813 million+117,713.0%Calculated from the two disclosed figures
Total investment planApproximately ¥25.0 billion in growth investments over 3 years
Investment amount by sectorField AI and solutions (R&D expenses and other investments) / Investment amount ¥6 billion, Field Human capital (recruitment, training, corporate culture and other investments) / Investment amount ¥9 billion, Field M&A and startups / Investment amount ¥10 billion
Statements about the use of capital
Payout ratio / DOE policyMaintain a total payout ratio of at least 70% and a dividend payout ratio of at least 50% throughout the 3-year period of the new medium-term planThe payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Company plans to maintain a total payout ratio of at least 70%, including share buybacks. Details of individual buyback limits, timing and conditions: not disclosed
Key initiatives
01Shift toward upstream business
02Strengthen consulting capabilities
03Expanding business scale
04Enhance the corporate brand
05Enhance AI proposal capabilities for customers
06Develop an internal framework for the use of AI
07M&A and collaboration with startup companies
08Allocate personnel to upstream processes and increase the number of leaders
09Strengthen consulting talent
10Accelerate initiatives involving new technologies such as AI
11Promoting Collaboration with Partner Companies
12Thorough supply chain management
13Build new relationships
Plan assumptionsThe Company recognizes that customers' willingness to invest in systems development will remain solid for the time being, Generative AI is expected to be widely adopted in domestic systems development, While a certain level of demand for conventional systems development is expected to remain, demand for the use of AI is expected to expand, particularly in midstream processes
Segment targetSegment DAS Business / Net Sales ¥57.5 billion → ¥80.0 billion, Segment Systems development business / Net Sales ¥100.8 billion → ¥124.0 billion, Segment Solutions Business / Net Sales ¥17.7 billion → ¥23.0 billion
Non-financial targetsIndicator AI expert ratio / Target At least 70% of mid-career engineer employees at Level 3 or above / Timing During the new medium-term plan period, Indicator Employees engaged in consulting-related work / Target Increase from 40 to 70 employees / Timing During the new medium-term plan period, Indicator AI skills / Target All employees at Level 2 or above / Timing During the new medium-term plan period
Risks identified by the company
The risk that a shortage of leaders in the Systems Development Business could undermine project management or lead to problems
A decline in the operating margin due to the insufficient scale of the Solutions Business and increased costs associated with M&A
The impact of generative AI on existing operations, particularly midstream processes, and the need to retrain and reassign personnel
The possibility of rapid changes in new technologies such as generative AI and in related businesses and society more broadly
Reason for revision or withdrawal
The plan period has been set at 3 years under the new medium-term plan, compared with 5 years under the previous plan, because the Company expects rapid changes in new technologies such as generative AI and in the nature of related businesses and society more broadly
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (Fiscal Years Ending March 2027 to March 2029) |
| Plan period | 1 April 2026 to 31 March 2029 (fiscal years ending March 2027 to March 2029) |
| Progress against the plan | Formulated |
| Sales Target | ¥117,813 million → ¥150,000 million（8.4% (average annual growth rate)） |
| Operating profit target | ¥19,073 million → ¥23,400 million |
| Operating profit margin target | 16.2 ％ → 15.6 ％ |
| Net income target | ¥13,009 million → ¥15,400 million |
| ROE target | 18.4 ％ → 18.5 ％ |
| Payout ratio / DOE policy | Maintain a total payout ratio of at least 70% and a dividend payout ratio of at least 50% throughout the 3-year period of the new medium-term plan |
| Treasury share acquisition policy | The Company plans to maintain a total payout ratio of at least 70%, including share buybacks. Details of individual buyback limits, timing and conditions: not disclosed |
| Total investment plan | Approximately ¥25.0 billion in growth investments over 3 years |
| Investment amount by sector | Field AI and solutions (R&D expenses and other investments) / Investment amount ¥6 billion, Field Human capital (recruitment, training, corporate culture and other investments) / Investment amount ¥9 billion, Field M&A and startups / Investment amount ¥10 billion |
| Segment target | Segment DAS Business / Net Sales ¥57.5 billion → ¥80.0 billion, Segment Systems development business / Net Sales ¥100.8 billion → ¥124.0 billion, Segment Solutions Business / Net Sales ¥17.7 billion → ¥23.0 billion |
| Non-financial targets | Indicator AI expert ratio / Target At least 70% of mid-career engineer employees at Level 3 or above / Timing During the new medium-term plan period, Indicator Employees engaged in consulting-related work / Target Increase from 40 to 70 employees / Timing During the new medium-term plan period, Indicator AI skills / Target All employees at Level 2 or above / Timing During the new medium-term plan period |
| Plan assumptions | The Company recognizes that customers' willingness to invest in systems development will remain solid for the time being, Generative AI is expected to be widely adopted in domestic systems development, While a certain level of demand for conventional systems development is expected to remain, demand for the use of AI is expected to expand, particularly in midstream processes |
| Key initiatives | Shift toward upstream business, Strengthen consulting capabilities, Expanding business scale, Enhance the corporate brand, Enhance AI proposal capabilities for customers, Develop an internal framework for the use of AI, M&A and collaboration with startup companies, Allocate personnel to upstream processes and increase the number of leaders, Strengthen consulting talent, Accelerate initiatives involving new technologies such as AI, Promoting Collaboration with Partner Companies, Thorough supply chain management, Build new relationships |
| Results under the previous plan | ¥100 billion → ¥117,813 million |
| Reason for revision or withdrawal | The plan period has been set at 3 years under the new medium-term plan, compared with 5 years under the previous plan, because the Company expects rapid changes in new technologies such as generative AI and in the nature of related businesses and society more broadly |
| Risks identified | The risk that a shortage of leaders in the Systems Development Business could undermine project management or lead to problems, A decline in the operating margin due to the insufficient scale of the Solutions Business and increased costs associated with M&A, The impact of generative AI on existing operations, particularly midstream processes, and the need to retrain and reassign personnel, The possibility of rapid changes in new technologies such as generative AI and in related businesses and society more broadly |
| Publication date | 8 May 2026 |
Items this document does not state (5)
ROIC targetCost of capitalSelf-assessment of PBR and share priceSize of the Target MarketDate of board resolution
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 shortened the plan period from 5 years under the previous plan to 3 years because it expects rapid changes in new technologies such as generative AI, as well as in related businesses and society more broadly. The shorter period will also enable the Company to actively make the investments needed for sustainable growth as growth investments.
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