Interim report
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This document is a translation of the original in Japanese. In the event of any discrepancies between the two, the original shall prevail. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 [J-GAAP] May 13, 2025 Company name: Cross Cat Co., Ltd. Stock exchange listing: Tokyo Code number: 2307 URL: https://www.xcat.co.jp Representative: Mitsunori Yamane, President & CEO Contact: Tomoki Y amashita, Director and Managing Executive Officer, Corporate Supervisory Department Phone: +81-3-3474-5251 Scheduled date of Annual General Meeting of Shareholders: June 26, 2025 Scheduled date of commencing dividend payments: June 9, 2025 Scheduled date of filing annual securities report: June 25, 2025 Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: No (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025) (1) Consolidated operating results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % March 31, 2025 16,194 8.5 1,836 20.7 1,898 20.9 1,316 0.4 March 31, 2024 14,931 7.9 1,521 4.2 1,570 4.0 1,311 28.6 (Note) Comprehensive income: Fiscal year ended March 31, 2025: ¥ 1,367 million [ (5.4) %] Fiscal year ended March 31, 2024: ¥ 1,445 million [ 34.5 %] Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets ratio Operating profit to net sales ratio Fiscal year ended Yen Yen % % % March 31, 2025 93.17 ― 24.1 19.0 11.3 March 31, 2024 90.28 ― 25.8 17.4 10.2 (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2025: ¥ - million Fiscal year ended March 31, 2024: ¥ - million (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % Yen March 31, 2025 10,526 5,853 55.6 415.03 March 31, 2024 9,466 5,083 53.7 356.83 (Reference) Equity: As of March 31, 2025: ¥ 5,853 million As of March 31, 2024: ¥ 5,083 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen March 31, 2025 692 (28) (319) 2,683 March 31, 2024 1,223 94 (963) 2,339
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2. Dividends Annual dividends Total dividends (total) Payout ratio (consolidated) Dividends to net assets (consolidated) 1st quarter- end 2nd quarter- end 3rd quarter- end Fiscal year-end Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended March 31, 2024 ― 0.00 ― 28.00 28.00 398 31.0 8.1 Fiscal year ended March 31, 2025 ― 0.00 ― 33.00 33.00 465 35.4 8.6 Fiscal year ending March 31,2026 (Forecast) ― 0.00 ― 34.00 34.00 35.5 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half (cumulative) 8,100 0.7 760 (12.2) 790 (12.1) 500 (14.2) 35.45 Full year 17,100 5.6 1,930 5.1 1,990 4.8 1,350 2.5 95.71 * Notes (1) Significant changes in the scope of consolidation during the period: No (2) Changes in accounting policies, changes in accounting estimates and retrospective restatements 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatements: No (3) Total number of shares issued (common shares) 1) Total number of shares issued at the end of the period (including treasury shares): March 31, 2025: 17,005,674 shares March 31, 2024: 17,005,674 shares 2) Number of treasury shares at the end of the period: March 31, 2025: 2,900,874 shares March 31, 2024: 2,760,632 shares 3) Average number of shares outstanding during the period: Fiscal Year ended March 31, 2025: 14,132,504 shares Fiscal Year ended March 31, 2024: 14,527,821 shares
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(Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025) (1) Non-consolidated operating results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Net income Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % March 31, 2025 11,891 11.2 1,491 23.8 1,710 26.4 1,253 4.8 March 31, 2024 10,695 7.4 1,205 0.4 1,353 (2.1) 1,195 18.7 Basic earnings per share Diluted earnings per share Fiscal year ended Yen Yen March 31, 2025 88.69 ― March 31, 2024 82.31 ― (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % Yen March 31, 2025 9,165 5,376 58.7 381.18 March 31, 2024 8,064 4,660 57.8 327.18 (Reference) Equity: As of March 31, 2025: ¥ 5,376 million As of March 31, 2024: ¥ 4,660 million * Financial results reports are exempt from reviews by certified public accountants or an audit firm. * Statement for proper use of business forecasts and other cautionary notes: The forecasts and other forward-looking statements presented in this document are based on information presently available to the Company and certain assumptions that the Company considers reasonable, and are not intended to be a commitment of achievement by the Company. Actual results may differ materially due to changes in various factors.
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1 Contents 1. Overview of Operating Results, etc. ................................................................................................................. 2 (1) Overview of Operating Results for the Fiscal Year under Review ............................................................ 2 (2) Overview of Financial Position for the Fiscal Year under Review ............................................................ 3 (3) Overview of Cash Flows for the Fiscal Year under Review ...................................................................... 3 (4) Future Outlook ........................................................................................................................................... 4 2. Basic Policy on Selection of Accounting Standards ......................................................................................... 5 3. Consolidated Financial Statements and Principal Notes................................................................................... 6 (1) Consolidated Balance Sheets ..................................................................................................................... 6 (2) Consolidated Statements of Income and Comprehensive Income ............................................................. 8 Consolidated Statements of Income .......................................................................................................... 8 Consolidated Statements of Comprehensive Income ................................................................................ 9 (3) Consolidated Statements of Changes in Equity ....................................................................................... 10 (4) Consolidated Statements of Cash Flows .................................................................................................. 12 (5) Notes to Consolidated Financial Statements ........................................................................................... 13 (Notes on going concern assumption) ..................................................................................................... 13 (Changes in accounting policies) ........................................................................................................... 13 (Segment information, etc.) ..................................................................................................................... 13 (Per share information) ............................................................................................................................ 15 (Significant subsequent events) ............................................................................................................... 15
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2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review During the fiscal year under review, the Japanese economy continued to show a moderate recovery trend against the backdrop of an improved employment and income environment. However, the economic outlook remain s uncertain due to such factors as concerns over U.S. trade policy, soaring raw material and energy prices caused by the unstable international situation, and rising prices resulting from the weak yen. In the information service industry, where Cross Cat Co., Ltd. (the “Company”) and its subsidiaries (collectively, the “Group”) operate, despite ongoing supply-side challenges, such as a shortage of IT personnel, IT investments, including the promotion of Digital Transformation (DX) using cutting-edge technologies such as Cloud Computing and generative AI, will continue to expand steadily in pursuit of solutions to social issues. Amid such a business environment, the Group has set forth its management vision—“To be an independent information services provider that sustainably enhances corporate value and contributes to society” —as its medium- to long-term management policy. Guided by this vision, the Group has launched a new Medium-term Business Plan, “Growing Value 2026,” in April 2024. The plan clarifies our strengths and sets out a basic policy of improving our service quality by combining the quality, efficiency, expertise, and know -how, which are the value propositions, while aiming to contribute to our customers’ success . In accordance with this basic policy, the Group has defined five basic strategies: change its business model into one that can offer value; expand asset- based businesses; strengthen the customer base; enhance human resources and organizational capabilities; and leverage the strengths and attributes of each Group company . To achieve the goals of the new Medium-term Business Plan, we are advancing specific initiatives aligned with each strategy. As a result, net sales for the fiscal year under review totaled ¥16,194 million (up 8.5% compared to the previous corresponding period; hereinafter “year-on-year”), which is an increase over the previous fiscal year. The cost to sales ratio improved by 0.3 percentage point , as the Group successfully maintained a high operation rate supported by increased orders in its main businesses and improved productivity, resulting in gross profit of ¥3,846 million (up 9.5% year-on-year). Performance by business area is as follows. SI area The System Integration (SI) area provides high-quality SI services in system design, development, operation, and maintenance across a wide range of industry sectors, including credit , financial services , public, manufacturing, telecommunications, and distribution, by leveraging the technical expertise and know -how accumulated over many years. In the fiscal year under review, sales to the credit sector decreased 17.0% year- on-year, reflecting the absence of large-scale development projects compared to the previous fiscal year . Meanwhile, sales to financial services increased 6.2% year-on-year, mainly supported by strong performance in banking system maintenance services. Sales to government agencies, municipalities, and public corporations rose significantly, up 43.2% year-on-year, due to increased orders related to digitalization initiatives by national and local governments. As a result, net sales in the area totaled ¥13,988 million (up 6.2% year-on-year), and gross profit came to ¥3,313 million (up 8.7% year-on-year). DX area The Digital Transformation (DX) area supports various customers’ DX initiatives, such as improving business efficiency and productivity. To this end, we provide services that leverage cutting-edge technologies such as Cloud Computing and generative AI, offer support services and build infrastructure for data utilization, which has long been one of our strengths, and deliver proprietary systems. In the fiscal year under revie w, services related to our proprietary systems remained strong, and cloud-related services grew significantly amid increasing demand for data utilization. As a result, net sales in the area totaled ¥2,206 million (up 25.6% year-on-year), and gross profit came to ¥533 million (up 15.4% year-on-year).
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3 Fiscal year ended March 31, 2024 Fiscal year ended March 31 2025 Year-on-year change SI area Net sales (millions of yen) 13,174 13,988 6.2% Gross profit (millions of yen) 3,049 3,313 8.7% DX area Net sales (millions of yen) 1,757 2,206 25.6% Gross profit (millions of yen) 462 533 15.4% Total Net sales (millions of yen) 14,931 16,194 8.5% Gross profit (millions of yen) 3,511 3,846 9.5% As for other profits, while investments in human capital increased as part of our efforts to secure and train human resources, including proactive wage hikes, active hiring of new graduates, and expansion of educational initiatives, we effectively controlled SG&A expenses, resulting in an operating profit of ¥1,836 million (up 20.7% year-on-year) and an ordinary profit of ¥1,898 million (up 20.9% year-on-year). Profit attributable to owners of parent increased 0.4% year-on-year to ¥1,316 million. This growth was driven by the increase in operating revenue mentioned above and tax reductions from the application of tax incentives for wage increases, which more than offset the absence of the gain on sale of investment securities recorded as extraordinary income in the previous fiscal year. As a result, net sales and all line-item profits achieved record highs for the fourth consecutive year. Regarding the progress of business metrics, the ordinary profit margin, which indicates profitability, rose by 1.2 percentage points year-on-year to 11.7%, driven by increased revenue from main businesses. The net profit margin and the return on equity (ROE) , which indicates capital efficiency, declined by 0.7 and 1.7 percentage points year-on-year, respectively, to 8.1% and 24.1%, due to the absence of the gain on sale of investment securities recorded as extraordinary income in the previous fiscal year. (2) Overview of Financial Position for the Fiscal Year under Review Total assets at the end of the fiscal year under review increased by ¥1,060 million to ¥10,526 million from ¥9,466 million at the end of the previous fiscal year. This was mainly due to an increase in cash and deposits of ¥343 million, an increase in accounts receivable - trade of ¥867 million, and an increase in investment securities of ¥98 million, which were partially offset by a total decrease of ¥108 million in property, plant and equipment and intangible assets. Total liabilities at the end of the fiscal year under review increased by ¥289 million to ¥4,672 million from ¥4,382 million at the end of the previous fiscal year. This was mainly due to an increase in short-term borrowings of ¥300 million, an increase in provision for bonuses of ¥39 million, and an increase in retirement benefit liability of ¥31 million, which were partially offset by a decrease in income taxes payable of ¥70 million. Net assets at the end of the fiscal year under review increased by ¥770 million to ¥5,853 million from ¥5,083 million at the end of the previous fiscal year. Main factors include an increase in capital surplus of ¥14 million, an increase as a result of recording profit attributable to owners of parent of ¥1,316 million, a decrease from dividends paid of ¥398 million, a decrease in treasury shares of ¥223 million primarily as a result of repurchases, and an increase in accumulated other comprehensive income of ¥50 million. As a result, the equity ratio at the end of the fiscal year under review was 55.6%, up 1.9 percentage points from 53.7% at the end of the previous fiscal year. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents (hereinafter referred to as “Funds”) at the end of the fiscal year under review totaled ¥2,683 million, up ¥343 million from the end of the previous fiscal year. The status of each cash flow and their factors for the fiscal year under review are as follows. (Cash Flows from Operating Activities) Cash flows from operating activities resulted in a net inflow of ¥692 million (a net inflow of ¥1,223 million was reported in the pre vious fiscal year). The inflow was mainly attributable to a profit before income taxes of
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4 ¥1,872 million and a depreciation of ¥153 million. The outflow was mainly attributable to an increase in trade receivables of ¥868 million and income taxes paid of ¥649 million. (Cash Flows from Investing Activities) Cash flows from investing activities resulted in a net outflow of ¥28 million (a net inflow of ¥94 million was reported in the previous fiscal year). The inflow was mainly attributable to proceeds from refund of leasehold and guarantee deposits of ¥48 million. The outflow was mainly attributable to p urchase of property, plant and equipment of ¥45 million and purchase of intangible assets of ¥34 million. (Cash Flows from Financing Activities) Cash flows from financing activities resulted in a net outflow of ¥319 million (a net outflow of ¥963 million was reported in the pre vious fiscal year). The inflow was mainly attributable to n et increase in short -term borrowings of ¥300 million. The outflow was mainly attributable to dividends paid of ¥396 million, and purchase of treasury shares of ¥223 million. (4) Future Outlook The economic outlook is predicted to remain uncertain due to soaring raw materials and energy prices caused by the unstable international situation, and rising commodities prices as the yen weakens. Meanwhile, IT investments, including the promotion of Digital Transformation (DX) with cutting -edge technologies such as Cloud Computing and generative AI, will continue to expand steadily in pursuit of solutions to social issues. Amid such a business environment, the Group has launched a new Medium -term Business Plan, “Growing Value 2026,” in April 2024. The plan got off to a strong start in the first fiscal year, with business performance exceeding the annual plan and both revenues and profits growing year-on-year, resulting in record-high net sales and profits for the fourth consecutive year. In order to further accelerate the grow th, we will pursue five basic strategies set in the new Medium-term Business Plan to achieve the goals thereof: change its business model into one that can offer value; expand asset-based businesses; strengthen the customer base; enhance human resources and organizational capabilities; and leverage the strengths and attributes of each Group company. In the SI area, the Company will continue to leverage its strength and proactively engage in sales and promotion activities in highly public domains, such as the credit sector, financ ial services , government agencies, municipalities, and public corporations, and expand its business by providing high value-added businesses. Furthermore, in the DX area, the Company has enhanced its lineup of services under its proprietary DX support framework, CC-Dash, by leveraging cutting-edge technologies such as Cloud Computing and AI. Through the provision of comprehensive one-stop services with necessary support tailored to each customer’s stage of data utilization, the Company will strive to further increase orders from customers. In addition, the Company will make active investments in human capital by constantly increasing wages and expanding and improving its educational curriculum as an effort to secure human resources, while also enhancing the office environment to improve productivity. Based on the above plans, the Company forecasts financial results for the first half (cumulative) of the fiscal year ending March 31, 2026 to be ¥8,100 million in net sales (up 0.7% year-on-year), ¥760 million in operating profit (down 12.2% year-on-year), ¥790 million in ordinary profit (down 12.1% year-on-year), and ¥500 million in profit attributable to owners of parent (down 14.2% year-on-year). While revenues are expected to increase and profits are expected to decrease for the first half of the fiscal year ending March 31, 2026 because high value- added projects for government agencies, municipalities, and public corporations were concentrated in the same period of the previous year, the Company forecasts increases in both revenues and profits for the full year of the fiscal year ending March 31, 2026, with ¥17,100 million in net sales (up 5.6% year-on-year), ¥1,930 million in operating profit (up 5.1% year-on-year), ¥1,990 million in ordinary profit (up 4.8% year-on-year), and ¥1,350 million in profit attributable to owners of parent (up 2.5% year-on-year).
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5 2. Basic Policy on Selection of Accounting Standards Since the Company provides services to customers within Japan, it uses Japanese GAAP. In the future, i f the Company expands its business overseas or recognizes the need to adopt the International Financial Reporting Standards (IFRS) due to a future increase in the number of companies switching to IFRS, it will reconsider its policy on accounting standards. For the time being, however, the Company intends to continue to use Japanese GAAP.
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6 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets (Thousands of yen) As of March 31, 2024 As of March 31, 2025 Assets Current assets Cash and deposits 2,339,462 2,683,140 Accounts receivable - trade 4,114,622 4,982,414 Contract assets 352,792 326,770 Other 212,494 174,011 Allowance for doubtful accounts (4,441) (5,290) Total current assets 7,014,931 8,161,046 Non-current assets Property, plant and equipment Buildings and structures 463,360 399,003 Accumulated depreciation (201,099) (152,392) Buildings and structures, net 262,260 246,610 Tools, furniture and fixtures 337,148 346,494 Accumulated depreciation (227,446) (241,411) Tools, furniture and fixtures, net 109,702 105,082 Leased assets 19,708 19,708 Accumulated depreciation (12,670) (15,485) Leased assets, net 7,038 4,223 Land 30,877 147 Other 1,500 1,500 Accumulated depreciation (1,499) (1,499) Other, net 0 0 Total property, plant and equipment 409,879 356,064 Intangible assets Goodwill 174,596 124,711 Customer-related assets 28,499 20,357 Software 138,115 87,588 Other 4,082 3,963 Total intangible assets 345,295 236,620 Investments and other assets Investment securities 1,156,377 1,255,126 Deferred tax assets 123,012 125,782 Leasehold and guarantee deposits 309,123 306,049 Other 107,398 86,101 Total investments and other assets 1,695,912 1,773,059 Total non-current assets 2,451,087 2,365,744 Total assets 9,466,019 10,526,790
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7 (Thousands of yen) As of March 31, 2024 As of March 31, 2025 Liabilities Current liabilities Accounts payable - trade 608,058 574,860 Short-term borrowings 1,200,000 1,500,000 Lease liabilities 3,097 3,097 Income taxes payable 402,653 332,136 Contract liabilities 86,251 83,418 Provision for bonuses 356,212 395,362 Provision for loss on orders received 9,311 248 Other 790,379 811,944 Total current liabilities 3,455,963 3,701,066 Non-current liabilities Lease liabilities 4,645 1,548 Deferred tax liabilities 109,178 125,261 Retirement benefit liability 595,618 626,694 Asset retirement obligations 197,672 199,122 Other 19,858 19,132 Total non-current liabilities 926,972 971,759 Total liabilities 4,382,935 4,672,826 Net assets Shareholders’ equity Share capital 1,000,000 1,000,000 Capital surplus 14,490 29,078 Retained earnings 4,893,626 5,811,532 Treasury shares (1,511,738) (1,723,868) Total shareholders’ equity 4,396,379 5,116,741 Accumulated other comprehensive income Valuation difference on available-for-sale securities 679,848 738,653 Remeasurements of defined benefit plans 6,855 (1,430) Total accumulated other comprehensive income 686,703 737,222 Total net assets 5,083,083 5,853,964 Total liabilities and net assets 9,466,019 10,526,790
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8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Thousands of yen) For the fiscal year ended March 31, 2024 For the fiscal year ended March 31, 2025 Net sales 14,931,704 16,194,800 Cost of sales 11,419,755 12,348,398 Gross profit 3,511,948 3,846,402 Selling, general and administrative expenses 1,990,042 2,009,690 Operating profit 1,521,906 1,836,712 Non-operating income Interest income 15 808 Dividend income 17,305 24,325 Subsidy income 20,858 33,436 Rental income from buildings 3,336 2,893 Other 10,346 5,780 Total non-operating income 51,862 67,245 Non-operating expenses Interest expenses 3,041 5,340 Commission expenses 357 165 Total non-operating expenses 3,398 5,505 Ordinary profit 1,570,370 1,898,452 Extraordinary income Gain on sale of investment securities 263,334 ― Insurance claim income ― 4,000 Other 30,242 ― Total extraordinary income 293,577 4,000 Extraordinary losses Loss on sale of non-current assets ― 28,993 Loss on retirement of non-current assets 648 774 Total extraordinary losses 648 29,767 Profit before income taxes 1,863,299 1,872,684 Income taxes - current 573,645 578,941 Income taxes - deferred (21,845) (23,023) Total income taxes 551,799 555,918 Profit 1,311,499 1,316,766 Profit attributable to non-controlling interests ― ― Profit attributable to owners of parent 1,311,499 1,316,766
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9 Consolidated Statements of Comprehensive Income (Thousands of yen) For the fiscal year ended March 31, 2024 For the fiscal year ended March 31, 2025 Profit 1,311,499 1,316,766 Other comprehensive income Valuation difference on available-for-sale securities 110,300 58,804 Remeasurements of defined benefit plans, net of tax 23,270 (8,285) Total other comprehensive income 133,571 50,518 Comprehensive income 1,445,071 1,367,285 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,445,071 1,367,285 Comprehensive income attributable to non- controlling interests ― ―
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10 (3) Consolidated Statements of Changes in Equity Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 1,000,000 ― 4,138,119 (615,243) 4,522,876 Changes during period Dividends of surplus (555,993) (555,993) Profit attributable to owners of parent 1,311,499 1,311,499 Purchase of treasury shares (907,290) (907,290) Disposal of treasury stock 14,490 10,794 25,285 Net changes in items other than shareholders’ equity ― Total changes during period ― 14,490 755,506 (896,495) (126,497) Balance at end of period 1,000,000 14,490 4,893,626 (1,511,738) 4,396,379 Accumulated other comprehensive income Total net assets Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 569,548 (16,415) 553,132 5,076,009 Changes during period Dividends of surplus ― (555,993) Profit attributable to owners of parent ― 1,311,499 Purchase of treasury shares ― (907,290) Disposal of treasury stock ― 25,285 Net changes in items other than shareholders’ equity 110,300 23,270 133,571 133,571 Total changes during period 110,300 23,270 133,571 7,073 Balance at end of period 679,848 6,855 686,703 5,083,083
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11 Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 1,000,000 14,490 4,893,626 (1,511,738) 4,396,379 Changes during period Dividends of surplus (398,861) (398,861) Profit attributable to owners of parent 1,316,766 1,316,766 Purchase of treasury shares (223,896) (223,896) Disposal of treasury stock 14,587 11,766 26,353 Net changes in items other than shareholders’ equity ― Total changes during period ― 14,587 917,905 (212,130) 720,362 Balance at end of period 1,000,000 29,078 5,811,532 (1,723,868) 5,116,741 Accumulated other comprehensive income Total net assets Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 679,848 6,855 686,703 5,083,083 Changes during period Dividends of surplus ― (398,861) Profit attributable to owners of parent ― 1,316,766 Purchase of treasury shares ― (223,896) Disposal of treasury stock ― 26,353 Net changes in items other than shareholders’ equity 58,804 (8,285) 50,518 50,518 Total changes during period 58,804 (8,285) 50,518 770,881 Balance at end of period 738,653 (1,430) 737,222 5,853,964
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12 (4) Consolidated Statements of Cash Flows (Thousands of yen) For the fiscal year ended March 31, 2024 For the fiscal year ended March 31, 2025 Cash flows from operating activities Profit before income taxes 1,863,299 1,872,684 Depreciation 151,186 153,191 Amortization of goodwill 49,884 49,884 Share-based payment expenses 24,386 26,086 Increase (decrease) in allowance for doubtful accounts 353 849 Increase (decrease) in provision for bonuses 1,036 39,149 Increase (decrease) in retirement benefit liability 1,848 19,183 Increase (decrease) in provision for loss on orders received 1,136 (9,063) Interest and dividend income (17,320) (25,134) Interest expenses 3,041 5,340 Loss (gain) on sale of property, plant and equipment ― 28,993 Loss on retirement of non-current assets 648 774 Decrease (increase) in trade receivables (443,435) (868,023) Decrease (increase) in contract assets 90,511 26,021 Decrease (increase) in inventories (1,860) 1,697 Increase (decrease) in trade payables 86,290 (33,198) Loss (gain) on sale of investment securities (263,334) ― Other, net 112,838 33,610 Subtotal 1,660,512 1,322,047 Interest and dividends received 17,320 25,134 Interest paid (3,250) (5,752) Income taxes paid (450,597) (649,254) Net cash provided by (used in) operating activities 1,223,984 692,175 Cash flows from investing activities Proceeds from sale of property, plant and equipment ― 2,792 Purchase of property, plant and equipment (125,409) (45,559) Proceeds from sale of investment securities 327,360 ― Purchase of intangible assets (33,822) (34,475) Payments of leasehold and guarantee deposits (70,288) (88) Proceeds from refund of leasehold and guarantee deposits 548 48,821 Payments for asset retirement obligations (3,600) ― Net cash provided by (used in) investing activities 94,786 (28,508) Cash flows from financing activities Net increase (decrease) in short-term borrowings 500,000 300,000 Dividends paid (555,993) (396,093) Purchase of treasury shares (907,290) (223,896) Net cash provided by (used in) financing activities (963,283) (319,989) Net increase (decrease) in cash and cash equivalents 355,488 343,677 Cash and cash equivalents at beginning of period 1,983,974 2,339,462 Cash and cash equivalents at end of period 2,339,462 2,683,140
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13 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Changes in accounting policies) The Group has applied the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the “2022 Revised Accounting Standard”), etc. from the beginning of the fiscal year under review. With respect to the revisions to the classification of income taxes (taxation on other comprehensive income), the Company follows the transitional treatment stipulated in the proviso to paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment stipulated in the proviso to paragraph 65 -2 (2) of the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022, hereinafter referred to as the “2022 Revised Guidance”). This change in accounting policy has no effect on the consolidated financial statements. In addition, with respect to the revisions related to the treatment in consolidated financial statements of deferring, for tax purposes, gains or losses on sales of shares, etc. of subsidiaries between consolidated companies, the 2022 Revised Guidance has been applied from the beginning of the fiscal year under review. This change in accounting policy has been applied retrospectively, and the consolidated financial statements for the previous fiscal year are those after retrospective application. This change i n accounting policy has no effect on the consolidated financial statements for the previous fiscal year. (Segment information, etc.) a. Segment information This information is omitted as the Group operates in the single segment of information service business and its associated businesses and believes that this information is not significant enough to be disclosed. b. Related information For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024) 1. Information by product and service This information is omitted as net sales to external customers in a single product and service category have exceeded 90 percent of the net sales in the consolidated statements of income. 2. Information by region (1) Net sales There is no applicable information, as there are no net sales to external customers outside Japan. (2) Property, plant and equipment There is no applicable information, as there are no property, plant and equipment located outside Japan. 3. Information by major customer Name of customer Net sales (thousands of yen) Names of related segments Fujitsu Limited 2,933,741 ― NTT DATA Japan Corporation 1,980,851 ―
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14 For the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) 1. Information by product and service This information is omitted as net sales to external customers in a single product and service category have exceeded 90 percent of the net sales in the consolidated statements of income. 2. Information by region (1) Net sales There is no applicable information, as there are no net sales to external customers outside Japan. (2) Property, plant and equipment There is no applicable information, as there are no property, plant and equipment located outside Japan. 3. Information by major customer Name of customer Net sales (thousands of yen) Names of related segments Fujitsu Limited 3,060,466 ― NTT DATA Japan Corporation 2,067,332 ― National Tax Agency 1,938,076 ― c. Information on impairment loss on non-current assets by reportable segment Not applicable. d. Information on amortization and unamortized balance of goodwill by reportable segment This information is omitted as the Group operates in the single segment of information service business and its associated businesses. e. Information on gain on bargain purchase by reportable segment Not applicable.
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15 (Per share information) For the fiscal year ended March 31, 2024 For the fiscal year ended March 31, 2025 Net assets per share ¥356.83 ¥415.03 Basic earnings per share ¥90.28 ¥93.17 (Notes) 1. Diluted earnings per share is not stated as there are no dilutive shares. 2. The basis for the calculation of basic earnings per share is as follows. For the fiscal year ended March 31, 2024 For the fiscal year ended March 31, 2025 Profit attributable to owners of parent (thousands of yen) 1,311,499 1,316,766 Amount not attributable to common shareholders (thousands of yen) ― ― Profit attributable to owners of parent relating to common shares (thousands of yen) 1,311,499 1,316,766 Average number of common shares outstanding during the period (shares) 14,527,821 14,132,504 (Significant subsequent events) Not applicable.