Review of financial results for FY2025

Business expansion boosted by tailwind

In FY2025, revenues increased by 11.5% YoY to ¥28.7billion, EBITDA^*1 increased by 12.2% to ¥9.7billion and net profits increased by 9.6% to ¥5.9billion.
With respect to sales in this fiscal year, I'll start with Business Document Solutions (BDS). SVF (form infrastructure solution) grew significantly, especially in licenses, due to continued orders for core systems of large enterprises and large-scale projects from the public sector. For invoiceAgent (digital form platform), although the number of licenses decreased due to the impact of large projects in the previous year, cloud services recorded strong growth of over 40% given strong needs for digital forms. To strengthen our business in the public sector, we acquired TRYSERVE Co., Ltd. as a wholly owned subsidiary in May 2024, which has contributed to sales expansion.
Next, in the DE segment, cloud services grew significantly. This is due to the accelerated migration of various systems to cloud environments. We believe that this has increased the amount of data stored in the cloud and as well as the need to utilize this data. We expect this trend to continue, and are further enhancing our cloud services.

Management that focuses on capital efficiency and stock price

We have defined ROE as the primary monitoring indicator for the purpose of stabilizing and continually improving capital efficiency. Our ROE of 14.7% for FY2025 is relatively higher than peers. We also recognize that our P/B ratio of 2.9 (Note 1) is also at a sufficient level as stock price increased as a result of the business performance improvement. On the other hand, we expect to accumulate capital as performance expands in the future and expect capital efficiency to decline. Therefore, we intend to continuously improve these indicators by striving to increase profit margins and making appropriate capital allocations.

Capital allocation that balances growth and returns

We announced our Capital Allocation Policy in October 2023, and have been implementing investments and shareholder returns based on this policy. M&A and investments in FY2025 include the acquisition of all shares of TRYSERVE Co., Ltd. (May 2024) to strengthen our public sector business and an investment in CIMTOPS Corporation (November 2024) to collaborate in manufacturing solutions. We will continue to strengthen our systems and diversify our financing methods in order to make flexible investments in a timely manner.

With respect to shareholder returns, in October 2023, we significantly strengthened our shareholder return policy from a payout ratio of around 30% to a total return ratio of 50%, as our business is primarily a recurring business and we expect to have ample cash flow, as well as a greatly improved financial base. Furthermore, for FY2025, in addition to the regular dividend, we have decided to pay a commemorative dividend to celebrate the 20th anniversary of our founding, resulting in a full-year dividend of ¥104.0 per share (regular dividend of ¥84.0 yen and commemorative dividend of ¥20.0 yen), an increase of ¥25.3 yen from the previous year.

A Message to our Stakeholders

Our strength lies in our business model, which is highly profitable and generates ample cash flow, and this has been the driving force behind our growth. We view the current social situation as a major tailwind for our business and believe our potential for growth is expanding even further.
We will take advantage of these opportunities to achieve solid growth and contribute to society. We feel that this is our responsibility to all stakeholders. Not only our shareholders and investors, but also our business partners, employees, and the society in which we operate.