Notice of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 2026 (Cumulative)

Performance Overview

In the first quarter of the fiscal year ending December 2026, consolidated net sales amounted to 18,262 million yen (5.4% YoY increase), operating income was 3,433 million yen (3.0% YoY increase), and net income attributable to owners of parent for the quarter was 2,357 million yen (18.0% YoY increase). Despite continued uncertainties in the economic environment, including geopolitical risks, rising commodity prices, and increasing long-term interest rates, advancements in AI technology influenced the market by fostering debates on the necessity of SaaS. In the IT Consulting & Services segment, although large projects were completed and temporary success fees declined, new cloud-based core system implementations for financial institutions and large-scale business reform projects progressed smoothly, resulting in increased revenue and profit. Meanwhile, the Business Innovation segment posted declines in revenue and profit, but operating losses narrowed.

Outlook and Strategy

Anticipating major transformations in the business environment driven by generative AI and robotics, our group will enhance support for management reforms utilizing AI and promote multifaceted assistance leveraging group synergies. We will revamp our own design and development processes to become AI-driven, aiming to improve productivity. We will actively pursue strategic investments, including intellectual property utilization and M&A, to establish a foundation for sustainable growth. Efforts to strengthen talent recruitment and development, continue R&D investments, and enhance group governance will also be prioritized. Each segment aims to reinforce its revenue base through expanding medium- to long-term partnerships, establishing intellectual property deployment models, supporting global expansion of existing clients, and product enhancements.