FY2027 plan calls for higher revenue and profit, but the focus is on first-quarter seasonality and full-year progress.

FY2026 consolidated revenue was ¥31,154 million, up 5.0% year on year, while operating profit was ¥4,420 million, up 9.2%. By contrast, the company's FY2027 plan calls for revenue of ¥34,200 million, up 9.8%, operating profit of ¥4,900 million, up 10.9%, and net income attributable to owners of the parent of ¥3,500 million, up 3.5%. Dividing planned operating profit by planned revenue implies a full-year operating margin of approximately 14.3%, so the first quarter will be assessed not only for revenue growth but also for progress toward this level of profitability.

The company has consistently explained that revenue in the first and fourth quarters tends to be higher than in the other quarters because customer fiscal year-ends are concentrated in March. Accordingly, it is necessary to look not only at whether first-quarter revenue exceeds a simple 25% of the full-year forecast, but also at year-on-year growth, the timing of revenue recognition by product, and the conversion of the order backlog into revenue. In particular, the timing of revenue recognition for products related to shareholders' meetings has varied due to the early disclosure of notices of convocation and the introduction of electronic provision. It is therefore important to determine whether seasonality remains unchanged or has structurally shifted.

The FY2027 full-year forecast does not disclose ordinary profit as an amount, although forecasts are provided for revenue, operating profit, net income, and annual dividends. At the next results announcement, we will check first-quarter revenue and operating profit, whether the full-year forecasts are maintained or revised, any additional disclosure of ordinary profit, and changes in operating margin. Even if revenue growth is supporting the plan as of the first quarter, higher expenses or nonrecurring gains and losses could delay progress in net income, so operating profit and net income need to be assessed separately.