Cresco (4674) investor relations material

Executive summary

• Achieved consolidated net sales of 64.6 billion yen for FY ended March 31, 2026, exceeding initial forecasts, driven by robust IT investment demand and new consolidations.

• Operating profit rose 10.4% year-over-year to 6.6 billion yen, though below initial plan, while profit increased 19.8% due to special tax deductions and gains on sale of investment securities.

• Digital solutions business nearly doubled sales, driven by acquisitions and robust demand for AI, cloud, and security services.

• Major organizational restructuring included the creation of the Mobility DX Business Unit and several strategic acquisitions to strengthen digital solutions and manufacturing capabilities.

• Significant business partnerships and product launches, including a 10-year agreement with Mitsubishi UFJ Trust and Banking and the introduction of Trust Code Hub.

Financial highlights

• Net sales increased by 10.1% year-over-year; operating profit up 10.4%; ordinary profit up 11.0%; profit attributable to owners up 19.8%.

• EPS rose to 129.82 yen, reflecting strong profit growth and a 2-for-1 share split effective July 1, 2024.

• New orders and outstanding orders grew steadily, supported by ongoing digital transformation (DX) demand.

• Total assets rose by 4,563 million yen to 47,899 million yen; net assets increased by 2,663 million yen to 33,479 million yen.

• Cash and cash equivalents at period end increased by 18 million yen to 15,263 million yen.

Outlook and guidance

• FY3/2027 net sales forecast revised upward to 71.5 billion yen, a 10% year-over-year increase, with operating profit targeted at 8.0 billion yen.

• Dividend for FY3/2027 set to increase to 70 yen per share, with a payout ratio of 51.1%.

• Share buyback program up to 1,000,000 shares or 2.0 billion yen planned for FY3/2027.

• Focus remains on system renewals, productivity improvements, and generative AI-driven solutions.