KOZO KEIKAKU ENGINEERING HOLDINGS Inc.

Business Details

Provides CAE and other software package sales, along with cloud services such as RemoteLOCK (cloud-based access control), NavVis (indoor 3D digitization), and Twilio SendGrid (email delivery), for the manufacturing, architecture/civil engineering, information and communications, and cross-industry sectors. Major affiliated companies include Kozo Keikaku Engineering Inc., RemoteLock Japan Inc., RemoteLock, Inc., and KoreLock, Inc. Cloud service businesses are driving growth in orders and sales, and expanding subscription revenue is contributing to improved profit margins.

Recent Overview

Cloud services drove orders and sales, with ARR expanding 20.5% year on year to ¥4,034 million

For the nine months ended in FY2026 (ending June 2026), net sales rose to ¥6,490 million (up 16.7% year on year) and segment profit rose to ¥1,279 million (up 30.6% year on year), representing substantial growth in both revenue and profit. The cloud service business continued to drive growth, with ARR reaching ¥4,034 million (up 20.5% year on year). RemoteLock Japan Inc. began full-scale operations this fiscal year, and deployment of RemoteLOCK to accommodation facilities and local governments progressed smoothly. Meanwhile, in the software package sales business, growth in mature products continued to slow, and the order backlog decreased 8.8% year on year to ¥2,009 million. The company began offering new cloud platforms such as SimScale, promoting a higher value-added product mix.

Key Products

Growth Drivers

• Continued growth in subscription revenue driven by expansion of ARR in the cloud service business (¥4,034 million at end of Q3, up 20.5% year on year)
• New market development for RemoteLOCK targeting accommodation facilities and local governments, and expansion of the partner network through the full-scale launch of RemoteLock Japan Inc.
• Higher value-added product mix through the introduction of new cloud platforms such as SimScale
• Acceleration of measurement service provision through NavVis partner collaboration and expansion of cloud usage
• Strengthened collaboration among group companies under the holding company structure (collaboration with RemoteLock Japan Inc. and others)

Risks

• Slowing growth in mature products and a declining order backlog in the software package sales business (order backlog of ¥2,009 million at end of Q3, down 8.8% year on year)
• Cloud services record orders and sales nearly simultaneously, making them less reflected in the order backlog and reducing visibility as a leading indicator
• Foreign exchange risk and partner dependency risk associated with investments in and collaboration with overseas startups (such as NavVis GmbH)
• System risk and security risk related to maintaining stable operation of cloud platforms
• Increasing difficulty in securing specialized talent (including marketing and sales personnel for Products & Services) amid intensifying competition in the hiring market