We would like to express our sincere gratitude to our shareholders and investors for your continued and exceptional support. The CRESCO Group has finalized the financial results for the second quarter of FY2025 (from April 1, 2025 to September 30, 2025).
Following the announcement of the protectionist trade policies by the US, there were increased activities including review of export prices, a curb on costs and restructuring of supply chains in domestic companies, and events such as cancellation and postponement of development and investment projects were also seen in the IT industry to which the CRESCO Group belongs. Furthermore, we believe that domestic companies’ wariness over the economic trend will continue due to pressure exerted by high prices and the direction of the BOJ’s interest rate policy.
However, the CRESCO Group’s client companies have shown strong demand for renovation of existing systems, and growing expectations of generative AI to improve productivity. In particular, inquiries on digital solutions such as AI, cloud, security and data analytics have been on the rise.
Under this business environment, the CRESCO Group has launched the “Medium-Term Management Plan 2026” starting from the previous fiscal year. We have set consolidated net sales of 70.0 billion yen, consolidated operating profit ratio of 11.5%, and consolidated ROE of 15% as financial KPIs for FY2026. We will achieve these financial KPIs and our mission as the CRESCO Group, “Continuously grow and move society forward together with our customers,” through the implementation of our seven growth strategies: (1) Establish a co-creation model, (2) Exercise quality leadership, (3) Promote human capital management, (4) Expand technologies and digital solutions, (5) Promote coordination among businesses, (6) Realize digital transformation, and (7) Group integrated management.
The Company restructured the Industrial Business Unit and established the Mobility DX Business Unit for the purpose of strengthening the development and proposal capabilities in the automobiles/transportation equipment area, and also established the Market Development-Unit for the purpose of strengthening sales capabilities. Furthermore, the Company enhanced the roster of executive officers and developed structures to omnidirectionally promote the Company’s business.
In July 2025, the Company consolidated its dispersed development bases to open “Teq-C.” We thoroughly pursued workplace comfort and stimulation of communication for employees.
On May 9, 2025, we announced that the consolidated dividend payout ratio was increased from the previous 40% to 50% starting from the interim dividend for the current fiscal year. Moreover, on the same day, we announced the open-market purchase of treasury shares up to a maximum of 1,000,000 shares or 1.5 billion yen. The actual record of shares bought back during this interim period is 754,500 shares (aggregate purchase amount is 1,252 million yen).
Furthermore, in August 2025, we disposed of 30,120 treasury shares as restricted shares remuneration for Directors (excluding Outside Directors and Directors serving on the Audit and Supervisory Committee), employees serving as Executive Officers, and some Directors of our subsidiaries (total amount of disposal price is 48,914,880 yen).
In August 2025, the Company concluded a business partner agreement with SonarSource Sàrl headquartered in Switzerland, and became the first “SonarQube Gold Reseller Partner” in Japan. In addition, we began offering Trust Code Hub, which is a service utilizing SonarQube, a code quality analysis platform.
On April 1, 2025, CRESCO J CUBE CO., LTD. took over their subsidiary TAKAGI SYSTEM CO., LTD for the purpose of maximizing synergistic effects and expanding business through integration. In addition, based on the resolution at their Board of Directors meeting held on September 9, 2025, the said company acquired all outstanding shares of iS Technoport, which has a strength in IBMi business, on October 1, 2025. Likewise, on October 1, 2025, CRESCO HOKURIKU. LTD. acquired all outstanding shares of APES CO.,LTD, which specializes in system development for the manufacturing industry, based on the resolution at their Board of Directors meeting held on August 25, 2025.
IOS Co., Ltd. entered into a ten-year basic partnership agreement with Mitsubishi UFJ Trust and Banking Corporation on May 1, 2025, for the purpose of steadily securing IT engineers in system development and services that are incidental to it over the long term.
Aside from the above, in funds management, the Company recorded a gain on sale of investment securities (in extraordinary income) of 262 million yen, and a gain on redemption of investment securities (in extraordinary income) of 54 million yen.
No changes have been made to the full year consolidated earnings forecasts for the fiscal year ending March 31, 2026 from the figures announced on May 9, 2025. If it becomes necessary to revise the forecasts due to future conditions, trends in financial results, etc., the revision will be disclosed promptly.
Nov, 2025
Hiroyuki Nemoto, Chairman & CEO
Hiroshi Tominaga, President
