CROSS CAT CO.,LTD.

Business Details

The Group consists of the Company and its consolidated subsidiaries, operating in a single segment: the Information Service Business. In the SI field, the Company provides system design, development, and operation/maintenance services for a wide range of industries including credit, finance, government, manufacturing, telecommunications, and distribution. In the DX field, the Company offers data utilization support leveraging cloud and generative AI, as well as proprietary in-house developed systems. Major customers include Fujitsu (net sales of ¥3,412,700 thousand) and NTT DATA (net sales of ¥2,484,998 thousand). Under the medium-term management plan "Growing Value 2026," the Company is promoting a shift toward a value-provision model and expansion of asset-based businesses.

Recent Overview

Record highs for the fifth consecutive period; medium-term management plan financial targets achieved one year ahead of schedule

In FY2026 (ending March 2026), net sales reached ¥17,314 million (up 6.9% year on year), operating profit reached ¥2,014 million (up 9.7% year on year), and profit attributable to owners of parent reached ¥1,511 million (up 14.8% year on year), marking record highs in net sales and all profit measures for the fifth consecutive period. The Company achieved the financial targets (net sales, operating profit, operating margin, ROE) and KPIs (net sales per employee, operating profit per employee) of the medium-term management plan "Growing Value 2026" one year ahead of schedule. A gain of ¥81 million from the partial sale of investment securities was recorded as extraordinary income. The Company invested ¥500 million in the SBI Digital Space Fund to promote open innovation in the AI and DX fields. For FY2027 (ending March 2027) full year, the Company expects net sales of ¥17,900 million (up 3.4% year on year) and operating profit of ¥2,150 million (up 6.8% year on year).

Key Products

Growth Drivers

• Strong performance in banking system maintenance services for financial institutions (up 24.6% year on year in FY2026)
• Significant expansion in orders for public sports competitions and sports promotion lottery services (up 82.4% year on year)
• Steady growth in digitalization-related orders from government agencies, municipalities, and public enterprises
• Strong orders for data utilization platform construction in the DX field (net sales up 11.6% year on year)
• Steady sales of in-house developed systems, including the cloud-based attendance management service
• Promotion of open innovation in the AI and DX fields through a ¥500 million investment in the SBI Digital Space Fund
• Expansion of one-stop services leveraging the proprietary DX promotion support framework "CC-Dash"
• Expansion of the asset-based business and strengthening of the customer base based on the medium-term management plan "Growing Value 2026"
• Strengthening human capital investment and organizational capability through continuous wage increases and enhanced recruitment

Risks

• Supply-side constraints due to shortage of IT personnel (an industry-wide challenge)
• Risk of decline due to reaction from large-scale projects (credit-related services experienced a 24.4% year-on-year decline in FY2026)
• Possibility of reduced IT investment due to economic downturn stemming from US trade policy and geopolitical risks
• Rising personnel and cost expenses due to price increases and wage hikes
• Rising cost ratio due to upfront investment for expanding cloud-related services (evident in the DX field)
• Risk of revenue concentration in Fujitsu and NTT DATA (the top two clients account for approximately 34.1% of net sales)
• Risk of valuation loss on the ¥500 million investment in the SBI Digital Space Fund (a loss of ¥36 million was recorded in FY2026)