Our business performance highlights by segment
FY2025/9
In Japan, the cloud sector continues to grow at a pace far exceeding the overall IT market. Microsoft's cloud portfolio, a core focus of our group, maintains strong market share across both application and infrastructure domains, and in the IaaS segment it stands alongside AWS as a market leader. For many customers, the initial wave of cloud adoption was triggered by the need to support remote work in the aftermath of Covid-19, particularly in infrastructure. Since the rise of generative AI, however, demand has expanded into full-scale digital transformation, with growing needs for cloud and AI utilization not only in information systems but also in customer-specific business IT areas. In the information systems domain, organizations are increasingly seeking to optimize siloed cloud environments and strengthen cybersecurity. To meet these needs, our group has evolved into a cloud integrator with deep expertise in communication infrastructure, built around Microsoft Cloud.
Operating results by segment are as follows:
1. Cloud integration business
In the cloud integration business, which is responsible for implementing cloud services, we secured a diverse range of projects by deepening customer engagement through an integrated production and sales framework. This led to an increase in the number of projects per client and a rise in average customer value. Additionally, enhanced project management contributed to maintaining and improving profitability. As a result, revenue totaled 27,736 million yen (up 17.6% year-on-year), and segment profit reached 5,036 million yen (up 68.7% year-on-year).
2. Cloud service business
In the cloud services business, which performs maintenance, operation, and improvement of cloud utilization, in addition to stable transactions with existing clients, deeper customer engagement and lead generation from our cloud integration business drove an increase in project volume. This resulted in net sales of 21,890 million yen (up 15.7% year-on-year) and segment profit of 3,290 million yen (up15.3% year-on-year).
3. License & Products business
In the licenses and products business, which is responsible for sales of Microsoft licenses and various hardware, software, and the other goods, we saw strong momentum in license upselling and cross-selling to existing customers, driven by increased cloud adoption among client companies. Additionally, robust product sales were supported by large public sector projects and heightened demand for PC replacements following the end of Windows 10 support, resulting in net sales of 122,941 million yen (up 25.0% year-on-year) and segment profit of 2,841 million yen (up 17.6% year-on-year).
Trends in business performance by segment (full-year)
- Cloud integration business
-
- Cloud service business
-
- License & Products business
-
（mil. yen）
| FY2022/9 （Non-consolidated） |
FY2023/9 （Consolidated） |
FY2024/9 （Consolidated） |
FY2025/9 （Consolidated） |
|
|---|---|---|---|---|
| Cloud integration business | ||||
| Net Sales | 18,344 | 23,015 | 23,593 | 27,736 |
| Segment profit | 2,800 | 3,537 | 2,985 | 5,036 |
| Cloud service business | ||||
| Net Sales | 13,371 | 15,389 | 18,922 | 21,890 |
| Segment profit | 1,781 | 1,983 | 2,854 | 3,290 |
| License & Products business | ||||
| Net Sales | 54,593 | 74,381 | 98,330 | 122,941 |
| Segment profit | 1,835 | 2,045 | 2,417 | 2,841 |
- The Company has started to adopt consolidated accounting in the fiscal year ended September 30, 2023.
Trends in business performance by segment (quarterly)
（mil. yen）
| 23/09 1Q |
23/09 2Q |
23/09 3Q |
23/09 4Q |
24/09 1Q |
24/09 2Q |
24/09 3Q |
24/09 4Q |
25/09 1Q |
25/09 2Q |
25/09 3Q |
25/09 4Q |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cloud integration business | ||||||||||||
| Net Sales | 4,888 | 10,816 | 16,608 | 23,015 | 5,653 | 11,633 | 17,174 | 23,593 | 6,474 | 14,151 | 20,561 | 27,736 |
| Segment profit | 723 | 1,685 | 2,351 | 3,537 | 703 | 1,604 | 2,069 | 2,985 | 1,155 | 2,982 | 3,771 | 5,036 |
| Cloud service business | ||||||||||||
| Net Sales | 3,678 | 7,666 | 11,425 | 15,389 | 4,395 | 9,036 | 13,782 | 18,922 | 5,194 | 10,629 | 16,029 | 21,890 |
| Segment profit | 503 | 1,100 | 1,568 | 1,983 | 665 | 1,496 | 2,088 | 2,854 | 826 | 1,625 | 2,314 | 3,290 |
| License & Products business | ||||||||||||
| Net Sales | 14,584 | 28,124 | 54,268 | 74,381 | 15,832 | 33,261 | 75,181 | 98,330 | 16,248 | 37,903 | 95,512 | 122,941 |
| Segment profit | 531 | 811 | 1,321 | 2,045 | 582 | 983 | 1,955 | 2,417 | 708 | 1,497 | 2,561 | 2,841 |
- 2nd Quarter (2Q) represents an aggregate of the 1st to 2nd quarters.
- 3rd Quarter (3Q) represents an aggregate of the 1st to 3rd quarters.
- 4th Quarter (4Q) represents an aggregate of the 1st to 4th quarters.
Financial Forecasts by Business Segments
With corporate DX investments accelerating and spending on cloud and generative AI expanding, demand in the Japanese IT market continues to rise. This growth extends beyond the renewal of core enterprise systems to include the optimization of siloed IT infrastructure, data utilization for generative AI, and increasing needs for in-house development within business divisions to drive new business creation. To contribute to the acceleration of our customers' digital transformation (centered on the cloud), our group will transform from a communications infrastructure vendor with strengths in Microsoft Cloud to a business IT partner offering one-stop support for in-house development for business growth.
Furthermore, the group has expanded its business with enterprise companies since providing Microsoft 365 licenses. Looking ahead, we aim to expand our transactions with the enterprise clients we've developed, by increasing the revenue share of engineering services, specifically in cloud integration and cloud services, while enhancing overall profitability.
