Fiscal Year Ending March 2026 Financial Results [Japanese Standards] (Consolidated)

Performance Overview

The consolidated results for the fiscal year ending March 2026 saw revenue decline by 9.7% YoY to 861.003 billion yen, but operating profit increased by 18.9% to 44.675 billion yen, ordinary income rose by 8.0% to 46.061 billion yen, and net income attributable to shareholders of the parent increased by 55.8% to 16.775 billion yen, achieving significant profit growth. Enhanced profitability measures domestically and internationally contributed to the increase in profit, especially in the latter half of the year, driven by a rise in gross profit. Although a special loss of 10.559 billion yen was recorded, the overall profit increase offset this loss.

Financial Position and Cash Flow Status

Total assets increased by approximately 30.9 billion yen YoY to 1.081 trillion yen. While liabilities also increased, net assets decreased by 11 billion yen to 402.5 billion yen. Cash flows from operating activities increased by 68.361 billion yen, whereas cash flows from investing activities decreased by 14.086 billion yen, and cash flows from financing activities decreased by 30.662 billion yen compared to the previous year. Cash and cash equivalents at the end of the period totaled 2.33077 trillion yen, showing an increase.

Dividend Status

The annual dividend for fiscal year 2026 is planned to be 32 yen per share (interim 16 yen, year-end 16 yen), continuing at the same level in fiscal year 2027. The dividend payout ratio was 69.4% for FY2026 and 109.1% for FY2025.

Forecast for Fiscal Year ending March 2027

For FY2027, consolidated revenue is forecasted to increase by 5.7% YoY to 910.0 billion yen, with operating profit rising by 4.5% to 46.7 billion yen, ordinary income increasing by 2.0% to 47.0 billion yen, and net income attributable to shareholders expected to grow by 55.0% to 26.0 billion yen. Revenue is planned to reach 1.675 trillion yen, aiming for increased revenue and profit through proactive business expansion.

Mid-term Management Plan and Business Strategies

The three-year period from FY2025 to FY2027 is positioned as a time for improving profitability and creating growth opportunities, with the goals of 'Maintaining and enhancing growth potential' and 'Strengthening earnings capacity.' Six business domains are established: marketing, consulting, technology, content, incubation, and global. Efforts will focus on strengthening collaboration among these domains and developing new growth opportunities. Under the global purpose 'Consumers, companies, society. Unleashing the power to open new eras - Aspirations Unleashed,' the company aims to create new relational value centered on creativity.