ISB (9702) Investor presentation summary

Business and market

• Independent SI provider spanning software development and access-control systems, serving automotive, government, medical, telecom, finance and security markets.

• Domestic IT and business services market forecast to grow at a 6.7% CAGR from 2024 to 2029, reaching ¥12tn in 2029, supported by ongoing digitization.

• Demand drivers include legacy-system renewal, complex customer requirements and ongoing operations and maintenance; AI is expected to shift engineering work toward upstream and value-creation tasks.

Interim performance

• FY26 2Q revenue was ¥19.171bn, up 4.0% YoY and 102.5% of the 2Q plan; operating profit was ¥1.582bn, up 12.3% and 112.2% of plan.

• 2Q operating margin was 8.3%, up 0.7 percentage points YoY; ordinary profit was ¥1.618bn and net income attributable to parent shareholders was ¥1.018bn.

• FY26 guidance: revenue ¥38.5bn, operating profit ¥3.0bn, ordinary profit ¥3.05bn and net income attributable to parent shareholders ¥1.85bn.

Competitive strengths

• Broad customer sectors, group coordination and end-to-end delivery from requirements gathering through maintenance support long-term relationships and a diversified customer base.

• Consolidated IT engineer headcount grew 22% from FY20 to FY25; approximately 120 new graduates joined in 2026, alongside technical training and partner development.

• Technical assets include Wi-SUN IoT communications and patented EGAM generative-AI optimization; recurring products include FITSDM, ALLIGATE and EasyPass.