Fiscal Year Ended January 31, 2024

Financial Results Briefing

Contents

1.

Operating results for the fiscal year ended January 31, 2024

2. VISION 2030 (long-term vision)

Full-year forecasts for the fiscal 3. year ending January 31, 2025

Contents

1.

Operating results for the fiscal year ended January 31, 2024

2. VISION 2030 (long-term vision)

Full-year forecasts for the fiscal 3. year ending January 31, 2025

Highlights of operating results for the fiscal year ended January 31, 2024

◼

Sales grew thanks to a positive trend in systems development as a whole, led by digital transformation (DX) demand among major customers.

◼ Operating income and ordinary income reached record highs. We applied tax deductions to net income based on the tax system to encourage wage increases.

FY ended January 2023

FY ended January 2024

YoY

Amount

%

Net sales

48,206

53,124

+4,917

+10.2%

Gross profit

11,310

14,096

+2,785

+24.6%

Gross profit margin

23.5%

26.5%

-

+3.0pt

Operating income

4,374

6,361

+1,987

+45.4%

Operating profit margin

9.1%

12.0%

-

+2.9pt

Ordinary income

4,413

6,409

+1,996

+45.2%

Ordinary profit margin

9.2%

12.1%

-

+2.9pt

Net income attributable to owners of parent

5,179

4,541

(637)*

(12.3)%

Margin on net income attributable to owners of parent

10.7%

8.5%

-

(2.2)pt

Quarterly performance trend

◼

Net sales grew in both core and focus businesses.

◼ Operating income grew thanks to higher sales, expanding sales of our security products, and a positive rebound from the recording of provisions for losses on orders received.

◼

We maintained a high operating profit margin through business efficiency improvements and expanding sales of our security products.

Main factors affecting operating income

(287)

+2,032

+242

Digital Industry

◉ Higher income driven by sales growth

Service Integration

  • ◉ Higher income driven by sales growth

  • ◉ Increase from our security products

  • ◉ Growth due to rebound from the recording of provisions for losses on orders received

  • ◉ Personnel costs

  • ◉ Cost of hiring enhancements

  • ◉ Promotional costs

  • ◉ Cost of improving the working environment

Total increase +1,987

Companywide costs

(Million yen)

Year-on-year change by business segment

◼ Sales and profit grew in the Digital Industry segment, powered by growth in the connected and mobility businesses.

◼

In the Service Integration segment, growth in the ICT infrastructure development and systems development businesses, combined with a rebound from the recording of provisions for losses on orders received, boosted bothsales and profit.

(Million yen)

FY ended January 2023

FY ended January 2024

YoY

Net sales

Operating income / operating profit margin

Net sales

Operating income / operating profit margin

Net sales

(%)

Operating income

(%)

Digital Industry

16,834

3,857 22.9%

18,313

4,100 22.4%

+1,479

[+8.8%]

+242

[+6.3%]

Service Integration

31,372

4,573 14.6%

34,810

6,606 19.0%

+3,438

[+11.0%]

+2,032

[+44.4%]

Companywide costs

-

(4,057)

-

(4,344)

-

(287)

Total

48,206

4,374 9.1%

53,124

6,361 12.0%

+4,917

[+10.2%]

+1,987

[+45.4%]

Digital Industry Business

◼ Net sales (100 million yen)

◼ Operating income, margin (100 million yen, %)

200

150

100

50

0

60

30%

50

40

20%

30

20

10

0

10%

0%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY22/1

FY23/1

FY24/1

FY22/1

FY23/1

FY24/1

Business category

Change in net sales

Change in income

Points

Smart Factory

  • • While factory DX projects showed an increasing trend, net sales were down YoY due to restrained investment by major customers in controls development.

  • • Income increased thanks to an improved gross profit margin resulting from efficiency improvements in product maintenance.

Connected Services

  • • Positive trends in connected cloud development and Big Data analysis for the auto industry

  • • Next generation testing, including auto-testing, demonstrated strong positive trends for cloud services.

Chubu Services

  • • Growth in systems development projects for major customer backbone systems (design, finance)

  • • While customer demand at the end of the year grew last year, income during this period returned to normal levels.

Nishinihon Services

  • • The LogiPull logistics solution grew, as did systems development (medical manufacturing and EOL services).

  • • Income trended largely unchanged YoY.

Service Integration Business

◼ Net sales (100 million yen)

◼ Operating income, margin (100 million yen, %)

400

0

300

80

20%

200

60

15%

100

40

10%

20

0

5%

0%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY22/1

FY23/1

FY24/1

FY22/1

FY23/1

FY24/1

Business category

Change in net sales

Change in income

Points

Service Integration

  • • Positive performance for Microsoft-related services and migration services, backed by DX demand

  • • Steady trends in systems development and maintenance for major customers

Platform Architect

  • • Growth in LCM services associated with system operations after environmental development in the ICT infrastructure development business

  • • Large-scale sales to government agencies contributed significantly to sales and profit in the security business.

Group companies

  • • Sales and profit grew thanks to growth in near-shore development and system operations sales to major customers.

Progress of the focus businesses

◼ Proposal of ICT solutions in line with customer DX demand bore fruit, increasing both sales and profit. Results exceeded targets.

◼

The operating profit margin also improved significantly, thanks in particular to growth in the security and migration domains.

Net sales (100 million yen)

売Sa上les高ta目rg標et

180

160

140

120

100

80

60

126

105

106

40

20

0

FY22/1

© Computer Engineering & Consulting Ltd. All rights reserved.

売Ac上tu高al 実sa績les

Up

+12.4%

Operating income / operating profit margin (100 million yen)

目標実績

営業利益 目標営業利益 実績

Operating incometargetActual operating income

利益率目標

Profit margin

target

利益率実績

Actual profit margi

Actual profit margin

60

Up

27.8% +30.1%

24.0%

50

30%

22.3%

23.7%

23.9%

40

25%

20%

22.2%

30

15%

142

143

127

20

38

39

30

30

10

10%

23

23

0

5%

0%FY23/1

FY24/1

FY22/1

FY23/1

FY24/1

9

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Computer Engineering & Consulting Ltd. published this content on 27 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2024 05:16:05 UTC.