Fiscal Year Ending March 2026 3rd Quarter Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

In the consolidated cumulative period for the 3rd quarter of the fiscal year ending March 2026, net sales were ¥436,251 million (up 4.7% YoY), operating income was ¥54,803 million (up 12.1% YoY), ordinary income was ¥55,707 million (up 10.1% YoY), and net income attributable to owners of the parent was ¥38,196 million (up 10.8% YoY). The increase in net sales was contributed by business expansion driven by customers' digital transformation and growing IT investment demand. The operating income increase was due to revenue growth as well as investments in human resources, productivity improvement initiatives, and reduction of unprofitable projects. Special income of ¥3,944 million and special losses of ¥2,696 million were recorded.

Performance by Segment

Sales and operating income of major segments generally showed an increasing trend. Offering Services reported net sales of ¥116,244 million (up 9.0% YoY) and operating income of ¥7,818 million (up 5.7% YoY). BPM recorded net sales of ¥32,716 million (up 3.8% YoY) and operating income of ¥4,633 million (up 23.1% YoY). Financial IT posted net sales of ¥73,340 million (down 1.7% YoY) and operating income of ¥9,593 million (up 5.3% YoY). Industrial IT had net sales of ¥97,851 million (up 4.6% YoY) and operating income of ¥16,627 million (up 17.7% YoY). Wide-Area IT Solutions achieved net sales of ¥133,560 million (up 5.2% YoY) and operating income of ¥15,578 million (up 11.3% YoY).

Overview of Financial Position

At the end of the 3rd quarter of the fiscal year ending March 2026, total assets amounted to ¥524,060 million, a decrease of ¥33,991 million compared to the end of the previous consolidated fiscal year. Total liabilities were ¥183,083 million, down ¥18,903 million, and total net assets were ¥340,976 million, down ¥15,087 million. While retained earnings increased by ¥38,196 million, net assets decreased due to the acquisition of treasury stock.

Capital Policy and Treasury Stock Cancellation

In May 2025, the company decided on treasury stock acquisition totaling ¥42 billion and acquired approximately 8,656,200 shares from May to December 2025. Of the acquired treasury stock, ¥35 billion equivalent intended for optimizing capital structure is scheduled for cancellation of 7,833,411 shares on February 27, 2026. As a result, the total number of issued shares will be 228,400,000 shares.

Outlook

For the fiscal year ending March 2026, consolidated earnings forecasts are net sales of ¥588,000 million (up 2.9% YoY), operating income of ¥75,000 million (up 8.6% YoY), and net income attributable to owners of parent of ¥50,000 million (almost flat YoY). There are no changes to the earnings guidance; expenses related to preparation for the absorption-type merger with Intec are included but expected impact is minimal. The company aims for a total shareholder return ratio of 50%.