Supplementary Financial Materials Q3 FY2026

Overview of Performance

For Q3 FY2026, consolidated net sales amounted to 18,026 million yen (down 7% YoY), and ordinary income was 4,785 million yen (up 3% YoY). The decrease in net sales was influenced by a significant reduction in outsourcing due to the phased service launches of large projects, as well as business suspension and exclusion from consolidation of three subsidiaries. Profitability improved, with the ordinary income margin increasing to 26.5% (23.8% YoY). Quarterly net income was 3,267 million yen (down 1% YoY). The equity ratio improved to 85%, strengthening the financial base.

Capital Policy and Shareholder Returns

In November 2025, 3 million shares of treasury stock were retired. During FY2026, treasury stock acquisition exceeded 1.7 billion yen. The total return ratio, combining dividends and treasury stock acquisitions, is expected to surpass 100%. The annual dividend was raised to 26 yen per share (up 5 yen from 21 yen the previous year). We aim to control equity levels through shareholder returns and maintain ROE at the prior year's level of approximately 32%.

Business Trends and Future Measures

Although outsourcing declined with the service launches of large projects, resulting in lower utilization of internal human resources, profitability improved. Measures to expand the customer base are being promoted, including new SaaS contract acquisitions, aggressive investments in generative AI offering development, and considering capital and business alliances. Cost control across the company will continue, with priority given to internal use of generative AI and research and development investments.