| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥709.1B | ¥637.2B | +11.3% |
| Operating Income | ¥88.7B | ¥79.6B | +11.4% |
| Ordinary Income | ¥97.7B | ¥84.2B | +16.1% |
| Net Income | ¥67.1B | ¥55.2B | +21.6% |
| ROE | 12.8% | 11.1% | - |
The fiscal year ended March 2026 closed with Revenue of ¥709.1B (YoY +¥71.9B +11.3%), Operating Income of ¥88.7B (YoY +¥9.1B +11.4%), Ordinary Income of ¥97.7B (YoY +¥13.5B +16.1%), and Net Income of ¥67.1B (YoY +¥11.9B +21.6%), achieving both top-line and bottom-line growth. Revenue increased for the third consecutive fiscal year, led by the Japan segment, while Operating Income achieved double-digit growth in line with revenue growth due to a 45bp improvement in SG&A ratio. Ordinary Income outperformed Operating Income growth due to expanded non-operating income (interest income +¥0.7B, foreign exchange gains ¥3.5B, equity-method investment income ¥1.9B, etc.), and Net Income achieved high growth of +21.6% as stable effective tax rate absorbed higher non-controlling interests. Operating margin remained steady at 12.5% (prior year 12.5%), and Net margin improved by 1.2pt from 8.3% to 9.5%.
【Revenue】 Revenue was ¥709.1B (YoY +11.3%), driven by the Japan segment at ¥659.1B (sales mix 92.9%, YoY +11.4%). By region, Americas & Europe contributed ¥33.1B (+7.9%) and Asia & Oceania ¥17.0B (+12.8%), with all regions achieving revenue growth. The Japan segment maintained its position as the core revenue generator, accounting for approximately 93% of revenue, supported by steady demand for contact center operations and assistance services. Inter-segment eliminations amounted to ¥27.9B (prior year ¥25.4B), indicating deeper group collaboration. Gross Profit was ¥153.2B (gross margin 21.6%), down 0.4pt from 22.0% a year ago, but increased in absolute terms by +9.5% due to higher revenue.
【Profitability】 Operating Income was ¥88.7B (YoY +11.4%), helped by improved SG&A ratio. SG&A was ¥64.5B (SG&A ratio 9.1%), improving 0.45pt from 9.5% in the prior year, demonstrating operating leverage. Goodwill amortization was ¥0.6B (prior year ¥0.4B), a modest increase, and Operating Income, after deducting corporate expenses from segment profit total of ¥102.2B, recorded double-digit growth. Ordinary Income was ¥97.7B (+16.1%), driven by a large increase in non-operating income to ¥10.5B (prior year ¥5.5B). Major components were foreign exchange gains ¥3.5B, interest on securities ¥3.0B, and equity-method investment income ¥1.9B, while non-operating expenses were ¥1.5B (prior year ¥0.9B). Extraordinary items resulted in a net gain of ¥0.4B (extraordinary income ¥1.3B, extraordinary losses ¥0.9B), bringing Profit Before Tax to ¥98.1B (+16.7%). Income taxes were ¥31.0B (effective tax rate 31.6%), resulting in Net Income attributable to owners of the parent of ¥59.2B (+21.6%), and after deducting non-controlling interests of ¥7.9B, consolidated Net Income was ¥67.1B. In conclusion, revenue and profit growth were achieved, with tailwinds from non-operating income and improved cost efficiency accelerating profit growth.
The Japan segment reported Operating Income of ¥90.9B (prior year ¥85.4B, +6.4%), accounting for 89% of segment profit total, and maintained a high margin of 13.6% (prior year 14.2%). Americas & Europe posted Operating Income of ¥6.3B (prior year ¥5.8B, +8.7%) with a margin of 15.2% (prior year 15.6%), and Asia & Oceania recorded Operating Income of ¥5.1B (prior year ¥4.6B, +10.9%) with a margin of 17.6% (prior year 19.8%). Although overseas segments have relatively higher margins, their scale is approximately one-twelfth that of Japan, and the company's overall earnings continue to depend on stable growth in the Japan segment. Corporate expenses were ¥9.7B (prior year ¥9.0B), and operating income after inter-segment eliminations settled at ¥88.7B.
【Profitability】Operating margin was 12.5%, unchanged from the prior year, while gross margin declined 0.4pt to 21.6% (prior year 22.0%). SG&A ratio improved to 9.1% (prior year 9.5%), indicating improved cost efficiency. Net margin improved 1.9pt to 9.5% (prior year 7.6%), supported by expanded non-operating income and stable tax burden. ROE was 12.8%, explainable as Net margin 8.3% × Total Asset Turnover 0.86 × Financial Leverage 1.57, with Net margin improvement being the primary driver. 【Cash Quality】Operating Cash Flow (OCF) was ¥104.7B (YoY +33.5%), 1.6x Net Income of ¥67.1B. OCF/EBITDA (Operating Cash Flow / (Operating Income + Depreciation)) was 0.92x, indicating strong cash backing of profits. The accrual ratio ((Net Income - Operating Cash Flow) / Total Assets) was -4.6%, showing cash generation exceeded accounting profit. 【Investment Efficiency】Total Asset Turnover was 0.86x (prior year 0.89x); asset base expanded due to large investments while revenue growth provided support. Capital expenditure was ¥78.1B, approximately 3.1x depreciation of ¥25.3B, reflecting an aggressive investment phase, with capacity expansion centered on the Akita BPO main campus progressing. 【Financial Soundness】Equity Ratio was 63.8% (prior year 64.3%), remaining high. Current ratio was 173.8%, and cash on hand was ¥280.7B, well above short-term borrowings of ¥60.0B. Debt/Equity was 0.11x, Debt/EBITDA 0.53x, and interest coverage 187.8x, indicating extremely healthy credit metrics and minimal interest burden.
Operating Cash Flow was ¥104.7B (YoY +33.5%). Starting from Profit Before Tax of ¥98.1B, adding depreciation ¥25.3B, increase in contract liabilities ¥2.3B, increase in allowance for doubtful accounts ¥6.8B, and deducting income taxes paid ¥30.4B resulted in a substantial increase from prior year ¥78.4B. Changes in working capital were modest—decrease in trade receivables ¥1.0B, increase in inventories ¥1.2B, increase in trade payables ¥0.9B—with profit before tax growth and accumulation of contract liabilities being the main contributors to cash flow uplift. Investing Cash Flow was -¥69.1B, driven by acquisitions of tangible and intangible assets ¥63.6B (accelerated growth investments) and purchases of investment securities ¥19.9B, expanding from -¥38.7B in the prior year. Subsidy receipts ¥0.7B and sales of investment securities ¥1.1B partially offset outflows. Financing Cash Flow was ¥7.8B, as increases in short-term borrowings ¥60.0B outweighed dividend payments ¥31.6B and treasury stock purchases ¥14.7B, turning from -¥32.0B in the prior year to positive. Free Cash Flow (Operating CF + Investing CF) was ¥35.5B, sufficient to cover dividends of ¥31.6B, with FCF coverage at 1.1x, indicating soundness. Cash and cash equivalents at period-end were ¥280.6B (period-beginning ¥233.9B, +¥46.6B), with foreign exchange translation adjustments of ¥3.3B also contributing to ample liquidity.
Operating Income of ¥88.7B was boosted by non-operating income of ¥10.5B to reach Ordinary Income of ¥97.7B, indicating stability in both operating and ordinary earnings. Non-operating income components were foreign exchange gains ¥3.5B, interest on securities ¥3.0B, and equity-method investment income ¥1.9B. While foreign exchange gains are largely temporary due to FX volatility, interest on securities and equity-method income are relatively repeatable income sources. Extraordinary items were a net gain of ¥0.4B, with small transactions such as gains on sales of investment securities ¥0.5B and loss on disposal of fixed assets ¥0.2B, limiting impact on current period profit. Comprehensive income was ¥77.1B, ¥10.0B higher than Net Income ¥67.1B, with other comprehensive income comprising foreign currency translation adjustments ¥7.2B and valuation differences on securities ¥2.7B, reflecting unrealized gains in overseas operations and financial assets. With Operating Cash Flow at 1.6x Net Income and a negative accrual, there are no signs of earnings manipulation, and the quality of earnings is assessed as high.
Full Year guidance is Revenue ¥760.0B (vs. current period +7.2%), Operating Income ¥96.0B (+8.2%), Ordinary Income ¥99.3B (+1.6%), and Net Income ¥59.2B (flat). Compared with current period results, Revenue and Operating Income are underachieved (progress rate 93% and 92%), Ordinary Income at 98%, and Net Income at 100%. Non-operating income (foreign exchange gains, equity-method income, etc.) exceeded assumptions this period and boosted Ordinary Income; the divergence from full-year guidance is mainly due to this non-operating upside. Shortfalls in Revenue and Operating Income may be attributable to timing of orders at period-end and delays in some projects, but Net Income landed on plan, supported by improved cost efficiency and non-operating income. Going forward, whether the full-year guidance’s re-acceleration in Revenue and Operating Income (+7–8% growth) can be realized will hinge on investment payback progress and external factors (labor costs and FX).
Annual dividend is ¥26 (interim ¥13, year-end ¥13), and total dividends relative to Net Income of ¥67.1B amount to approximately ¥32.7B, resulting in a Payout Ratio of 62.7%. The dividend doubled from prior year ¥12, strengthening shareholder returns. The Payout Ratio of 62.7% is well supported by FCF of ¥35.5B, with FCF coverage approximately 1.1x. Additionally, ¥14.7B of treasury stock repurchases were executed, bringing total shareholder return to approximately ¥47.4B and Total Return Ratio to 70.6%. With cash on hand ¥280.7B and Debt/Equity 0.11x, financial capacity is ample and dividend sustainability is high. Next fiscal year’s forecast dividend is ¥14, implying a dividend cut, which is consistent with the flat full-year Net Income guidance of ¥59.2B. If investment recovery and stable Operating CF continue, there is significant scope to maintain or increase dividend levels.
Labor cost increases / recruitment difficulty risk: Contact center operations are labor-intensive and labor costs are a major component of Cost of Sales of ¥555.9B. Tight domestic labor markets and minimum wage increases may raise labor cost ratios and pressure gross margin of 21.6%. The improvement trend in SG&A ratio to 9.1% could reverse under labor cost inflation, and recruitment difficulties could reduce utilization rates or service quality, leading to lost revenue opportunities.
Foreign exchange risk: FX contributed a foreign exchange gain of ¥3.5B to Ordinary Income, but if currency reverses from yen depreciation to appreciation, foreign exchange losses could occur and increase volatility in Ordinary Income. Although overseas segment revenue share is limited at about 7%, FX translation effects for overseas operations and hedging costs for foreign-currency transactions could increase non-operating expenses.
Concentration of short-term debt / asset retirement obligation risk: Short-term borrowings of ¥60.0B account for 22.4% of current liabilities of ¥268.3B, creating a formal refinancing risk. Because cash on hand ¥280.7B greatly exceeds short-term borrowings, practical concerns are limited, but in a rising interest rate environment refinancing costs could increase. Asset retirement obligations ¥22.2B account for about 7.5% of total liabilities and could lead to one-off cash outflows upon future center downsizing or withdrawal.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 12.5% | 8.1% (3.6%–16.0%) | +4.4pt |
| Net Margin | 9.5% | 5.8% (1.2%–11.6%) | +3.6pt |
Both Operating Margin and Net Margin exceed industry medians, placing profitability in the upper peer group.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 11.3% | 10.1% (1.7%–20.2%) | +1.2pt |
Revenue growth modestly exceeds the industry median, confirming stable demand capture.
※Source: Company compilation
The achievement of double-digit Operating Income growth while maintaining a 12.5% Operating Margin, supported by resilient domestic BPO demand and SG&A ratio improvement, indicates a continued structural trend of profitability improvement. Capital expenditure is approximately 3.1x depreciation, reflecting an active investment phase, and capacity expansion centered on the Akita BPO main campus should underpin utilization and revenue growth in future periods. Progress on investment payback and utilization improvements will determine next-period profit growth.
Operating Cash Flow is 1.6x Net Income, FCF is ¥35.5B, and cash backing of profits is strong. Despite a Payout Ratio of 62.7% and Total Return Ratio of 70.6%, cash on hand ¥280.7B is maintained, suggesting a good balance between shareholder returns and growth investment. Non-operating upside such as foreign exchange gains elevated Ordinary Income, but Operating Income-based growth also secured double-digit increases, confirming resilience of the core business. Next period focus will be transition to investment recovery phase and resilience to labor cost inflation and FX volatility.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your responsibility; consult professionals as needed before making investment decisions.