During the consolidated fiscal year under review, the Japanese economy gradually recovered as employment and personal income continued to improve.
On the other hand, the outlook remains uncertain due to factors such as higher prices stemming from rising wages and the impact of foreign exchange rates, changes in overseas conditions such as geopolitical risks, and significant fluctuations in financial markets.
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, the Group worked as one to achieve the goals of the plan in the final year of its medium-term management plan (April 2022–March 2025).
In the current consolidated fiscal year, 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).
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 income.
Net profit attributable to shareholders of the parent company increased from the previous year, boosted by a gain on sales of investment securities.
(Source: Financial Results for the Fiscal Year Ended March 31, 2025)
