Latest financial results

In this fiscal year, the final year of the medium-term management plan "RISE ITOKI 2023," our group aims to become a "highly profitable company" with a strong structure, and will continue to promote various measures based on structural reform projects, as well as prepare for the post-coronavirus era. We have worked to increase sales and profits by proposing new ways of working and workplaces to lead the creation of “Work Environment” and by developing sales activities focused on improving value.

Sales increased by 9,660 million yen (7.8%) year on year to 132,985 million yen.

• The workplace business performed well, centered on renovation projects to accommodate new hybrid work styles and office relocations.
• In the equipment and public business, demand remained steady for equipment for public facilities such as display cases for museums and art galleries and digital signage, as well as equipment for logistics facilities.
• In the IT/sharing business, in addition to the system development business, the system verification business, which we have been promoting as our second pillar, performed well.

Profit increased by 6,491 million yen (14.2%) year on year to 52,240 million yen.

• In the Workplace Business, despite the expected impact of soaring raw material prices, profits increased significantly due to improved profit margins due to increased sales and improved value provided.
• In theEquipment & Public Works-Related Business, profits increased due to increased demand and improved profit margins for equipment for public facilities and logistics facilities, despite the expected impact of soaring raw material prices.
• In the IT & Sharing Business, the system development and verification business remained strong.

Due to strategic expenditures for future growth, such as strengthening IT infrastructure for DX promotion, hiring of mid-career workers, and the recording of performance-linked bonus allowances as planned, as well as the effect of selling, general and administrative expenses reductions, such as continued distribution cost reductions through the structural reform project, net sales increased 2,550 million JPY (6.2%) year on year to 43,717 million JPY.

As a result of the above, operating income increased by 3,940 million yen (86.0%) year on year to 8,523 million yen.

• In the Workplace Business, profits increased significantly due to the effect of increased sales and improved profit margins due to improved value provided.
• In the Equipment & Public Works-Related Business, profits increased significantly due to improved profit margins due to improvements in the value provided in equipment for public facilities.
• In the IT & Sharing Business, sales were at the same level as the previous fiscal year.

Due to a decrease in subsidy income related to preventing the spread of the new coronavirus infection, net sales decreased by 74 million yen (13.5%) from the previous fiscal year to 481 million yen.

Due to foreign exchange losses due to exchange rate fluctuations and business restructuring costs of subsidiaries in the previous fiscal year, net sales decreased by 512 million yen (53.3%) from the previous fiscal year to 448 million yen.

As a result of the above, ordinary income increased by 4,378 million yen (104.8%) year on year to 8,555 million yen.

In the previous fiscal year, there was a gain on the sale of non-business assets for the purpose of improving asset efficiency, and a gain on debt forgiveness from some of the company's creditors following the dissolution of consolidated subsidiary GlobalTreehouse Co., Ltd. Sales decreased by 7,619 million yen (97.6%) to 186 million yen.

In the previous fiscal year, net sales decreased by 3,247 million yen (89.9%) from the previous fiscal year to 363 million yen due to the retirement of non-business assets with no future use prospects and the recording of impairment losses.

As a result of the above, net income attributable to owners of the parent company increased by 610 million yen (11.5%) year on year to 5,905 million yen, setting a new record high.