Nomura System Corporation,Ltd

Business Details

The sole business segment of Nomura System Corporation. Based on a service partner agreement with SAP Japan Co., Ltd. and a PartnerEdge channel agreement as a VAR, the company provides SAP ERP implementation consulting, maintenance, and license sales. Centered on prime contracts where it deals directly with end users, the company also offers PMO Consulting, FIS, and other services. It possesses in-house developed templates such as "Jet-One" and "Zex-One," leveraging high quality, short implementation periods, and low pricing as its strengths.

Recent Overview

In Q1 of FY2026 (ending December 2026), both net sales and operating income declined significantly year on year

In Q1 of FY2026 (ending December 2026) (January to March 2026), net sales were ¥849 million (down 11.9% year on year) and operating income was ¥124 million (down 44.5% year on year), representing a significant decline in both revenue and profit. The gross margin fell from 32.7% in the same period of the prior year to 24.7%, as a rise in the cost ratio squeezed profits. On the capital policy front, the company conducted share repurchases (¥142 million), increasing treasury shares at period-end to 1,582,404 shares (up from 558,204 shares at the end of the previous fiscal year). The full-year earnings forecast (net sales of ¥3,800 million, operating income of ¥530 million) remains unchanged, with a recovery expected from the second quarter onward. The annual dividend forecast of ¥3.55 also remains unchanged.

Key Products

Growth Drivers

• Expanding demand for core system migration due to the approaching end of standard support and maintenance for SAP ERP 6.0®
• Continued increase in IT investment trends driven by growing corporate DX promotion and cloud adoption needs
• Expanding demand for online meeting systems and cloud-based system implementation
• Improved profitability through expansion of direct transaction (prime) projects
• Improved profit structure through a higher ratio of work handled by in-house personnel
• Proactive sales activities leveraging a high project success rate and strong consulting capabilities as strengths

Risks

• Risk of dependence on the business relationship and product trends of SAP Japan Co., Ltd. (single vendor dependence)
• Risk of sales concentration among specific customers (Stanley Electric 21.4%, NHK Media Holdings 13.2%, NHK Enterprises 10.4%)
• High difficulty in securing and developing highly specialized personnel such as SAP-certified consultants
• Full-year operating income for FY2026 (ending December 2026) is expected to decline 9.6% year on year due to increased human capital investment and other factors
• Risk of client companies curbing IT investment due to geopolitical risks such as intensified U.S. tariffs, heightened Japan-China tensions, and escalating Middle East tensions
• Uncertainty regarding achievement of the full-year forecast due to Q1 net sales progress reaching only 22.3% of the full-year forecast, reflecting a revenue structure weighted toward the second half