Earnings Presentation Materials Fiscal Year ending December 2026 Q3

Performance Overview

In FY2026 Q3, revenue and profits declined year-over-year due to the normalization of welfare-administration related demand. However, ARPU improved year-over-year driven by expansion of the prescription-history generation AI option in the dispensing segment, a revision of the pricing structure, and transition to a shared sales structure with Good Cycle System. By segment, there was a mix of decreased upfront sales and increased recurring (stock) sales. Recognition of gains on sale of investment securities narrowed the year-over-year decline in quarterly net income compared with the interim period. Although the full-year forecast was revised downward, the company maintains a payout ratio above 100% and kept the annual dividend at 23 yen.

Initiatives and Outlook for Next Fiscal Year

The company will conduct absorption-type mergers of two subsidiaries (EM Technology Laboratory and Good Cycle System) to integrate development, planning, sales, and service. Through organizational restructuring, the group aims to improve operating efficiency and eliminate duplicated costs, while continuing to invest in AI, cybersecurity, and medical DX. From next fiscal year onward, the company intends to improve profitability in each business and redirect capacity toward cross-group growth investments.