During the six months ended September 30, 2025, the Japanese economy continued to face an uncertain outlook due to factors such as the new tariff policies announced by the United States in April 2025, the prolonged conflict in Ukraine, and heightened geopolitical risks stemming from the worsening situation in the Middle East. On the other hand, with the inauguration of Prime Minister Takaichi, expectations have risen for sustained domestic economic expansion through proactive fiscal policies, and the business environment surrounding companies continues to undergo significant changes.
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 increasing use of AI (artificial intelligence) and the widespread adoption of IoT throughout society, have led to a growing 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. For the final year, the fiscal year ending March 2028, we have set four KPIs as targets: 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.
The results for the six months ended September 30, 2025, were as follows: Net sales were 20,373 million yen (up 7.9% YoY), operating profit was 1,391 million yen (up 34.6% YoY), ordinary profit was 1,356 million yen (up 32.0% YoY), and profit attributable to owners of parent was 774 million yen (down 23.3% YoY).
Net sales remained strong, with information processing services, system development services, and System product sales all exceeding the levels of the same period of the previous year. Operating profit increased year on year, as price revisions and cost reductions offset the continued high cost of goods since the previous fiscal year. Profit attributable to owners of parent decreased year on year, as there was no longer the impact of gains on sales of investment securities that had been recorded in the same period of the previous year.
(Source: Financial Results for the six months of Fiscal Year Ending March 31, 2026)
