Financial Summary for Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Overview of Consolidated Financial Results

Consolidated revenue for the fiscal year ending March 2026 reached 814,708 million yen (6.5% YoY increase), driven by strong performance in financial IT solutions and IT infrastructure services. However, operating income significantly declined to 58,273 million yen (56.8% YoY decrease) due to goodwill impairment losses recorded in the Australia and North America businesses. Net income attributable to owners of the parent also fell to 15,257 million yen (83.7% YoY decrease). By segment, financial IT solutions posted both revenue and profit growth, while industrial IT solutions recorded an operating loss due to impairment losses.

Financial Position and Cash Flow Overview

Total assets were 959,794 million yen (3.4% increase from the previous fiscal year), and total equity was flat at 438,002 million yen. Interest-bearing debt decreased to 204,962 million yen (16.8% decline YoY), with a gross D/E ratio of 0.47 and a net D/E ratio of 0.05, maintaining financial soundness. Cash flows from operating activities totaled 147,641 million yen (13.4% increase YoY), but increased investment outflows led to cash and cash equivalents decreasing to 132,620 million yen (21.3% decline YoY).

Dividend Status and Capital Policy

An annual dividend of 77 yen per share is planned for the fiscal year ending March 2026 (an increase of 22 yen YoY), representing a consolidated payout ratio of 10.2%. For the fiscal year ending March 2027, an annual dividend of 84 yen per share is forecasted (42 yen each at the interim and year-end). Additionally, at the board meeting on April 24, 2026, a share buyback was resolved to acquire up to 21,000,000 shares and 70,000 million yen via market purchases from May 15 to August 31, 2026. This aims to enhance capital efficiency and improve shareholder returns towards achieving an ROE target of 25%.

Future Outlook

For the fiscal year ending March 2027, consolidated earnings forecasts include revenue of 850,000 million yen (4.3% YoY increase), operating income of 175,000 million yen (200.3% YoY increase), and net income attributable to owners of the parent of 119,000 million yen (679.9% YoY increase). Under the medium-term management plan (2026-2028), the company will promote DX evolution and global expansion aiming for sustainable growth.