Financial Data

During the three months ended June 30, 2025, the Japanese economy faced growing concerns over the negative impact on domestic business conditions following the announcement of new tariff policies by the United States in April 2025, resulting in increased uncertainty about the future. Furthermore, the prolonged conflict in Ukraine and the worsening situation in the Middle East have heightened geopolitical risks, causing continued instability in foreign exchange markets and persistent inflation both domestically and internationally. Under these circumstances, the business environment surrounding companies remains challenging.

In the information service industry to which our group (the Company, consolidated subsidiaries, and equity-method affiliates) belongs, system-related investments aimed at addressing labor shortages and improving operational efficiency among companies have continued. In addition, the advancement of cloud migration for existing systems and software, as well as the growing use of AI (artificial intelligence) and the expansion of IoT throughout society, have led to an increasing trend in demand for data center utilization.

In this economic environment, our group has formulated a three-year medium-term management plan, “Up Stage 2027,” with the fiscal year ending March 2026 as the first year. In the final year, the fiscal year ending March 2028, we aim for “Net sales of 50 billion yen and a market capitalization of 50 billion yen.” To achieve this goal, we have set four KPIs: “Net sales of 50,000 million yen, operating profit of 3,500 million yen, EBITDA of 6,500 million yen, and ROE of 13%.” The entire group is working together to improve business performance and expand our business operations.

For the three months ended June 30, 2025, the results were as follows: Net sales were 9,818 million yen (up 10.0% YoY), operating profit was 467 million yen (up 110.9% YoY), ordinary profit was 446 million yen (up 69.1% YoY), and profit attributable to owners of parent was 222 million yen (up 190.5% YoY), resulting in increased sales and profits compared to the same period of the previous year.

(Source: Financial Results for Q1 of Fiscal Year Ending March 31, 2026)

The outlook for the Japanese economy remains very uncertain due to concerns about inflation caused by rising prices and changes in overseas circumstances, and the business environment is expected to remain challenging. On the other hand, investment in system development and software is increasing further, especially for the promotion of digital transformation (DX), and the market for the information service industry is expected to continue expanding.

In this environment, the Group will continue to focus on expanding its mainstay information processing services business, positioned as a platform for promoting DX to solve issues faced by customers and society. The Group will enhance its advantages and expand its business base by strengthening its information processing services through the expansion of its own data centers and by providing one-stop services in combination with system development.

We believe that our main challenges going forward will be to strengthen our ability to respond to rising energy and license prices as well as higher costs, including the amortization of data center and system investments, as well as to expand our customer base by enhancing our services, and to secure and develop human resources.

For the fiscal year ending March 31, 2026, we forecast consolidated net sales of 42,250 million yen (up 8.4% year on year), operating profit of 2,750 million yen (up 4.1%), ordinary income of 2,800 million yen (up 4.4%), and net profit attributable to owners of the parent of 1,850 million yen (down 18.1%).

(Source: Financial Results for the Fiscal Year Ended March 31, 2025)