6572.T

• Overall Consolidated Performance

  • The full FY2026 February period achieved revenue growth and profit growth, with all core business segments performing solidly. Consolidated revenue reached 8.148 billion yen, up 12.8% year-over-year; operating profit reached 1.004 billion yen, up 53.7% year-over-year (a new record high); ordinary profit reached 949 million yen, up 304.4% year-over-year; net profit attributable to parent company shareholders reached 639 million yen, up 46.8% year-over-year. M&A activity contributed to additional revenue growth.

• Core Corporate Strategy

  • The company's core strategy is AI Transformation, which aims to transform industrial structure (not just improve operational efficiency) to solve Japan's labor shortage problem. The company pursues "industry redefinition": instead of only providing automation tools, it acts as an industry participant itself, uses automation to reshape industry structure and operation models, and has already achieved proven results in the advertising sector.

• Capital Allocation and Shareholder Returns

  • In FY2026 February, the company acquired approximately 2 billion yen worth of treasury stock, completed several M&As in new business areas, and upwardly revised the full-year dividend from 4.50 yen per share to 4.90 yen per share. It adheres to a payout policy of 40% of core business earnings as dividends, with an original target of reaching 3% DOE by FY2028 February, which is now expected to be achieved one year ahead of schedule.
  • The company targets double-digit ROE on a core business profit basis as early as possible.

• Core Segment Strategic Goals

  • Intelligent Automation is shifting from traditional single-task RPA to end-to-end hyperautomation, targeting a 30% annual average operating profit growth rate and the No.1 market share by FY2028 February. Ad Automation has achieved 2-3x higher productivity than competitors through automation, targeting 300 billion yen in transaction value and No.1 market share by FY2028 February.

• New Business Development

  • 1. Payroll Automation: The total Japanese market size is 1 trillion yen (with 600 billion yen yet to be tapped). The company uses hyperautomation to achieve 3x higher productivity and doubled operating margin for acquired targets, actively pursues M&A of small and mid-sized payroll service providers (which face severe labor shortages and lack digital transformation capacity), and targets No.1 in the SME segment with 30 billion yen in revenue by FY2028 February, with a long-term goal of becoming Japan's leading low-cost, high-quality shared back-office service center.
  • 1. Medical Automation: The company provides hybrid human-AI remote back-office and medical claims BPO services for small in-home clinics and visiting nursing stations. It acquired OASIS INNOVATION (a leading remote medical BPO provider) in August last year, holds a network of 1,000 medical institutions with over 300 existing users, and targets deploying its hyper-online medical service to 200 institutions within 3 years, aiming for the No.1 market position in this segment.

• For FY2027 February, consolidated revenue is projected to be 9.8 billion yen, up 20.3% year-over-year, supported by stable growth of core businesses and new business growth.
• Operating profit is projected to be 1.1 billion yen, up 9.5% year-over-year; ordinary profit is projected to be 1.08 billion yen, up 13.8% year-over-year; net profit attributable to parent company shareholders is projected to be 650 million yen, up 1.7% year-over-year. The guidance incorporates planned aggressive investment in AI and new businesses to lay the groundwork for accelerated profit growth in the future.
• Core businesses are projected to achieve a 32% year-over-year increase in profit, driven by revenue growth strategies that protect profit margins, and core business profit is expected to continue growing sustainably.
• The annual dividend is planned to be 6.50 yen per share, up from 4.90 yen per share in FY2026 February. The planned new business investment does not affect the dividend, as it is excluded from core business profit calculations.
• The company maintains a policy of targeting 3% DOE by FY2028 February, and this target is now expected to be achieved one year ahead of schedule.
• The company plans to invest 1 billion yen in organic growth for new businesses in FY2027 February, with investment allocated to personnel, external partners, product development, marketing, and AI-related new services. Separate sufficient capital is reserved for M&A to drive non-continuous growth.

1. Intelligent Automation Business: Revenue of 5.638 billion yen, up 18.2% year-over-year; segment profit of 964 million yen, up 89.3% year-over-year, accounting for 69.2% of total consolidated revenue. Accumulated customer count reached 4,564 companies, with a very low churn rate of 0.89% for BizRobo!, and recurring (stock) revenue grew 6% year-over-year. Profit margin improved due to growing recurring revenue and strengthened cost control despite continued upfront investment in RoboRobo product development.
2. Ad Automation Business: Revenue of 1.317 billion yen, down 11.7% year-over-year due to business restructuring of high-volatility projects; segment profit of 648 million yen, up 16.3% year-over-year, with segment profit margin improving significantly to 47.9%, accounting for 16.2% of total consolidated revenue. Profit growth came from improved commission rates in high-share segments and enhanced cost control.

• As of the end of FY2026 February, the company still does not meet the Prime Market listing maintenance criteria for traded market capitalization and tradable share ratio. It aims to meet the criteria during the FY2027 February improvement period, and has started researching and reviewing backup plans, with further announcements to be made when details are confirmed.
• Rapid changes in the competitive environment driven by AI evolution create uncertainty for business operations, requiring large upfront investments to position the company for future growth.
• Target industries for expansion (payroll, medical automation) have large numbers of small and mid-sized incumbents that lack digital transformation capacity, and successful M&A integration and industry redefinition carry execution risk.

Q: What impacts and risks does the rapid evolution of AI technology (such as Anthropic's Claude) bring to the company's SaaS business?

A: The company views AI evolution as a net positive opportunity aligned with its long-held core strategy of AI-driven automation and industry transformation. The company has already planned flexible, dedicated investment for AI-related new services to leverage AI advances to improve customer value, and has proactively integrated third-party leading AI tools into its hyperautomation offerings. While increased competition from generative AI is a potential risk, the company's strengths in end-to-end business implementation and proven industry transformation experience create a sustainable competitive advantage that offsets this risk.

Q: What is the current progress of the hyperautomation business and what are the plans for the coming fiscal year?

A: The business has transitioned from the planning phase to active go-to-market, leveraging the company's existing base of 800 enterprise customers to drive upselling and cross-selling of the Tungsten TotalAgility platform. Early case studies with large financial institutions show that hyperautomation delivers 4-5x the automation benefit of traditional RPA by automating entire processes (including non-routine work via AI agents) rather than just isolated tasks. The coming fiscal year will prioritize investment in partner capabilities and product development to scale adoption across the enterprise customer base, with a long-term target of 30% annual profit growth for the segment.