Supplementary Materials for the Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Results

Overview of Results

In the second quarter of the fiscal year ending March 2027, revenue decreased 5.0% year-on-year. Despite some increases in cost of sales and selling, general and administrative expenses, productivity improvements led to a reduction in outsourcing expenses, resulting in a decline in final profit compared with the same period last year. Revenue composition showed growth in cloud services while license and maintenance services declined. The full-year forecast for FY2027 is revenue of 2,800 million yen, operating income of 320 million yen, and net income of 223 million yen, indicating an expected improvement year-over-year. The dividend is assumed to be 27 yen per share.

Key Initiatives and Investment Policy for the Second Half

For the second half, the business plan centers on releasing new products and new cloud offerings, improving quality, enhancing productivity including reducing outsourcing costs through AI utilization, deepening customer relationships, and increasing cloud service renewal rates. The company will pursue performance improvements through strengthening human resources, including reviewing the performance evaluation system and revising the compensation system.