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• Core Operational Achievements

  • Achieved full-year profitability for the first time in FY2025, with expanding profit margin in Q4 FY2025 reaching 90 million yen in operating profit driven by steady revenue growth and selling, general and administrative (SG&A) expense optimization.
  • Grew total client count to 37 firms, with 19 new projects won from new clients in the fiscal year, building a steady project pipeline for future growth.
  • Ended FY2025 with 63 consultants: active hiring secured sufficient new talent, but a restructuring of the Singapore subsidiary limited net headcount growth to just 1 person year-over-year.
  • Revenue concentration risk continues to decline: the share of revenue from non-NTT Docomo clients increased 8.5% year-over-year, and high client retention (83.4% of revenue from continuing clients) supports stable revenue growth.

• Mid-term Management Plan (FY2025-FY2028) Updates

  • The original 2024-published quantitative financial plan for the mid-term period is withdrawn due to lower-than-expected revenue contribution from new service segments that led to a FY2025 earnings forecast revision. A new quantitative financial plan will be published as soon as it can be reasonably developed considering the current business environment, while all existing non-financial business growth strategies remain unchanged.
  • Core ongoing strategic priorities for FY2025-FY2028 remain: expanding services and increasing service added value, hiring and training high-quality talent, and acquiring and deepening client relationships to drive profitable growth.

• Business Growth Initiatives

  • Legacy Payments Segment: Has built one of Japan's largest expert teams for payments consulting; will focus on strengthening training to increase service added value, deepen existing client relationships and acquire new clients to maximize segment strength, and leverage accumulated expertise to drive cross-segment business development, resulting in an expected stable, solid revenue performance.
  • New Service Segments (banking, insurance, securities, PMO, IT risk): Core team hiring is completed; will continue to build a highly specialized project support structure, optimize consultant allocation to accumulate delivery track records, accurately identify client needs, proactively pursue new client acquisition, build trust, and expand alliance partnerships to increase order channels, with expected growing revenue contribution.
  • Service Lines: Operates both business consulting (upstream strategy and planning) and technology consulting (implementation and solutions); will continue active consultant hiring, and focus on increasing service rates and consultant utilization to drive organic business expansion.
  • Client Acquisition Strategy: 1) Pursue organic in-house lead generation including upselling/cross-selling to existing clients and new client development leveraging C-level management relationships; 2) Focus on horizontal expansion to group affiliated companies driven by existing client referrals; 3) Expand collaboration and alliances with synergistic external companies, with a new alliance-based order acquisition framework already established in FY2025 that is expected to drive future revenue growth.
  • Non-organic Growth: Continues to evaluate non-organic growth opportunities including synergy creation with the Singapore hub, strategic partnerships with other firms, and potential M&A.

• Human Resources Strategy

  • Identifies talent strategy as a core driver of growth; focuses on three priorities: hiring excellent talent, building an engaging work environment, and increasing service added value. Will continue aggressive investment in hiring, improve consultant retention by providing a supportive, growth-oriented work environment, and expand education and training to increase specialization and service added value. Will also focus on building and embedding a unified corporate culture to foster cohesion among consultants with diverse professional backgrounds.

• Capital Allocation Updates

  • Revised the use of proceeds from the company's listing: due to the adoption of hybrid work, large-scale office relocation or expansion is no longer required. All unallocated capital originally budgeted for facility-related costs will be reallocated to talent-related costs, which remain a high priority investment for growth. As of the end of FY2025, 333.4 million yen (0.3334 billion yen) remains unallocated for talent-related costs, with full allocation expected by FY2027, and facility-related cost allocation was completed in FY2025.

• For FY2026, management forecasts 2.4 billion yen in total revenue (105.3% year-over-year growth from FY2025) and 60 million yen in operating profit, representing a 51 million yen year-over-year increase in profit, projecting continued growth in revenue and profit. The company plans to transition to a phase of stable profit generation starting from FY2026, after achieving full-year profitability in FY2025.
• The company's growth strategy for FY2026 and beyond is built on three core pillars: 1) deliver steady strategic implementation to drive business growth, prioritize meeting FY2026 performance targets, and strengthen consultant hiring and training to increase service added value; 2) redefine the company's market position in light of the new Tokyo Stock Exchange Growth Market listing maintenance requirement of 10 billion yen market capitalization by 2030, and refine the company's growth strategy to meet this standard; 3) develop capital policies that serve as clear inputs for investor decision-making, to improve the company's attractiveness as an investment while pursuing stable growth and maximizing total shareholder value.
• The long-term market outlook remains positive: Fintech sector demand for consulting services is expected to stay strong, driven by continued financial institution service efficiency improvement and ongoing entry of new industry players into financial services, as well as sustained demand for digital transformation (DX) support. The company will leverage its end-to-end service capability from strategy to implementation and its deep Fintech consulting expertise to accumulate project delivery track records and capture this demand.

Atlas Technologies operates two core service segments: 1. Legacy Payments segment: The core legacy business maintained solid order performance, with consistent revenue contribution. 2. New service segments: Including banking, insurance, securities, PMO support, IT risk management, cybersecurity, and data analysis. New service segments began formal revenue contribution in FY2025, after launching in 2024. By the end of FY2025, clients excluding NTT Docomo accounted for 48.4% of total revenue, an 8.5% increase from the prior year end. Continuing clients accounted for 83.4% of total revenue, and continuing clients excluding NTT Docomo saw a 4.6% year-over-year increase in revenue share. For Q4 FY2025, total segment revenue was 637 million yen (0.637 billion yen), with 117.5% year-over-year revenue growth driven by solid legacy payments performance and growing new project wins in new segments. For full year FY2025, total company revenue was 2.28 billion yen, 107.5% year-over-year growth, operating profit was 9 million yen, representing a 391 million yen reduction in net loss from the prior year.

• New service segments launched in 2024 have delivered lower revenue contribution than originally expected, which led to a downward revision of the FY2025 earnings forecast and required the withdrawal of the original mid-term financial plan, creating uncertainty around the timing and achievement of long-term financial targets.
• The company must meet the new Tokyo Stock Exchange Growth Market listing maintenance requirement of 10 billion yen market capitalization by 2030, which creates pressure to improve corporate value and market positioning to maintain listing status.
• Headcount growth has been slower than expected due to the restructuring of the Singapore subsidiary, which could limit near-term revenue growth capacity until hiring accelerates.

Q: Now that full-year profitability has been achieved in FY2025, will profitability continue after 2026, and what were the core drivers of the FY2025 profitability achievement?

A: The core drivers of FY2025 profitability are solid, stable profit contribution from our legacy payments business, which has built a more solid operating foundation, and the start of material revenue contribution from new service segments driven by steady project wins. For FY2026, we expect to continue accumulating project delivery track records and growing revenue contribution from both segments. We will also maintain strict financial discipline, pursue talent hiring aligned with market demand, continue SG&A efficiency improvements including hybrid work promotion and administrative infrastructure strengthening, and we expect to successfully transition to a phase of stable profit generation starting from FY2026.

Q: Consultant headcount only saw a minor net increase in FY2025, how much headcount growth do you expect going forward?

A: In FY2025, we actively hired new consultant talent to support growth at our Tokyo hub, and we successfully secured sufficient consultant headcount for our current operations. The minor net increase was almost entirely driven by the restructuring of our Singapore subsidiary. Going forward, we will continue focusing on strengthening our hiring pipeline, candidate pipeline development is already progressing well, and we will continue aggressive hiring of high-quality consultant talent to support growth.

Q: How are you adjusting your strategy in response to the revised Growth Market listing maintenance requirements, and are you considering M&A to meet these requirements? Do you have any updates on your strategy in this area?

A: Our three core strategic priorities for post-FY2025 growth, which are 1) steady strategy implementation to drive business growth, 2) redefining our market position to align with listing requirements, and 3) developing capital policies to support investor decision-making, are already designed to address the revised listing requirements. We will combine these three priorities to pursue total shareholder value growth and improve the company's overall investment attractiveness. There are no specific M&A plans that have been finalized at this point, and we will disclose any material decisions to investors in a timely manner once they are made.