TENDA CO., Ltd.

Business Details

Built on the concept of "white-collar business efficiency improvement," this segment comprises two areas: development and sales of in-house products such as the manual auto-creation tool "Dojo Series," and technology consulting centered on Microsoft products and AI utilization. It provides end-to-end integrated services for government agencies, municipalities, and companies. Through the consolidation of Almondo Inc. as a subsidiary, the segment has strengthened its AI implementation capabilities and is positioned as a group upstream function that handles everything from business design to operation and improvement support in an integrated manner.

Recent Overview

Revenue rose 8.2% year on year to ¥1,024 million, the only segment to post growth, though margin declined slightly

For the full year of FY2026 (ending May 2026), revenue was ¥1,024 million (up 8.2% year on year), making it the only one of the three segments to achieve revenue growth. On the other hand, segment profit declined slightly to ¥248 million (down 2.0% year on year), and the profit margin fell to 24.2% (from 26.8% in the prior period). Revenue was driven by the expansion of Dojo Series adoption among municipalities and progress in continued usage. The segment also advanced into higher value-added areas such as AI utilization, knowledge utilization, business visualization, and data infrastructure construction, and worked to strengthen its end-to-end support framework in coordination with the DX Solutions Business. Goodwill amortization amounted to ¥60,492 thousand (up from ¥25,205 thousand in the prior period).

Key Products

Growth Drivers

• Expansion of the recurring revenue base through the broader adoption and horizontal expansion of the Dojo Series among municipalities
• Deployment of AI-premised business reform support and continuous operation services leveraging Almondo Inc.'s advanced AI implementation capabilities
• Capturing demand for data utilization infrastructure construction and business automation support leveraging Microsoft 365, Microsoft Fabric, Azure OpenAI, and other tools
• Provision of end-to-end, high-value-added services spanning from conception to implementation and operation through collaboration with the DX Solutions Business
• Increase in per-project unit prices and improvement in contract renewal rates through strengthening its role as an upstream function for the group as a whole

Risks

• Downward pressure on profit margin due to increased selling, general and administrative expenses associated with expansion into higher value-added areas (segment profit margin for FY2026 (ending May 2026) fell 2.6 points year on year)
• Risk related to maintaining differentiation of the Dojo Series from competing products and the risk of prolonged procurement processes in the municipal market
• Goodwill amortization burden related to Almondo Inc. (¥60,492 thousand for the current period) and impairment risk
• Sensitivity to changes in partner strategy and licensing policy due to dependence on Microsoft products
• Risk of product/service obsolescence relative to the pace of technological innovation in the AI utilization support area