I-NET at a Glance

In the information service industry, to which the Group (the Company, consolidated subsidiaries, and equity-method affiliates) belongs, demand for business efficiency systems continues to grow as companies respond to labor shortages and labor-saving needs. In addition, the market is on an expansionary trend due to increasing investment in systems, as the shift to cloud computing of systems and software moves ahead under the theme of “digital transformation (DX),” and the use of big data and artificial intelligence (AI), as well as the popularization and spread of IoT, continue.

Under these circumstances, net sales were 38,987 million yen (up 3.2% year on year), operating profit was 2,640 million yen (down 8.5% year on year), ordinary profit was 2,681 million yen (down 8.6% year on year), and net profit attributable to owners of the parent was 2,259 million yen (up 2.8% year on year) in the current consolidated fiscal year.
Net sales increased from the previous fiscal year. In the information processing services, data center cloud services, which are recurring revenue business, and contract computing services for service stations (SS and gas stations) performed well, and new orders for mailing services also increased. In the system development services, orders for projects in the energy and distribution sectors declined, but system development for the financial and manufacturing sectors, as well as space and defense-related business, grew.

Operating profit and ordinary profit both decreased from the previous fiscal year. In the period under review, the cost of sales remained high, mainly due to higher license fees for cloud services and an increased depreciation burden for system investments and capital expenditures. Although the profit margin gradually improved as a result of efforts to pass on higher costs to selling prices and cost reductions, the increase in SG&A expenses, especially personnel expenses, resulted in a full-year decrease in operating profit. Net profit attributable to shareholders of the parent company increased from the previous year, boosted by a gain on sales of investment securities.

With respect to dividends, we plan to increase dividends for the 14th consecutive fiscal year, emphasizing the return of profits to our shareholders, who have supported our growth to this point. Going forward, we will continue to target a stable return of profit.

• Forward-looking statements contained in this document are based on information currently available to the Company and on what the Company deems are reasonable assumptions. Actual results could differ materially due to various factors.

For details, see Financial Data