Asahi Intelligence Service (9799) Investor update summary

Business profile and strengths

• Founded in 1962; provides network system construction, operation and management, software design and development, host-system maintenance, office support and help-desk services. Workforce: 1,997 as of Sep 2025.

• Recurring operations and management services support customers’ system stability; network services represent 84.2% of sales and system development 14.0%.

• Long-standing customer relationships include Toyota Group and NTT Group; diversified end-user industries support stable orders. Auto-related manufacturing was 35.4% of sales and communications 16.1% as of Sep 2025.

• On-site engineering model builds customer relationships through technical proposals, engineer training and deployment, service delivery, and feedback-led improvements.

Performance and outlook

• FY Mar 2026 3Q sales were ¥12,260 million, up 4.7% YoY; operating profit was ¥1,100 million, down 8.4%; ordinary profit was ¥1,142 million, down 6.3%; net profit was ¥859 million, up 1.9%.

• FY Mar 2026 targets are sales of ¥16,950 million and operating profit of ¥1,700 million, increases of 7.1% and 7.2%, respectively, over FY Mar 2025 actuals.

• FY Mar 2028 targets: sales ¥19,650 million, operating profit ¥1,965 million, operating margin 10.0%, ROE at least 12.0%, PBR at least 1.5x and payout ratio at least 40%.

• Long-term sales target is ¥50 billion for FY Mar 2035, supported by growth in existing businesses, new revenue sources, M&A and capital or business alliances.

Strategy and organizational priorities

• Strengthen earnings through structural reform of existing operations, focus resources on growth areas, expand DX work and promote contract-based projects; reduce low-value labor-only engagements.

• Explore AI-enabled customer support, resale and agency sales, AI solution businesses and proprietary solutions; reinforce proposals through closer collaboration between engineers and sales teams.

• Recruit and reskill DX talent, improve productivity and engagement, and support flexible work; initiatives include base-pay increases, remote and slide-work options, and an employee stock trust.

• ESG and governance initiatives include rice-paddy conservation and rice donations, an Eru-boshi third-level certification, 2025 Health and Productivity Management Outstanding Organization recognition, and disclosure of a medium-term plan.