Japan Process Development Co.,Ltd.

Revenue grew for five consecutive fiscal years, from ¥7,643 million in FY2021 (ended May 2021) to ¥10,473 million in FY2025 (ended May 2025). Operating income expanded from ¥701 million to ¥1,145 million over the same period, with the operating margin improving from 9.2% to 10.9%. In the first year of the medium-term management plan (FY2025, ended May 2025), the company exceeded its initial targets, achieving revenue growth of 4.7% and operating income growth of 14.5% versus plan.

The company's total order backlog at the end of FY2025 (ended May 2025) stood at ¥2,002,787 thousand, up 35.7% year on year. All segments saw substantial increases, with Control Systems up 68.3%, Industrial & ICT Solutions up 39.5%, and Specific Information Systems up 31.0%, securing a solid revenue base for the following fiscal year and beyond.

The company operates with zero interest-bearing debt, funding all business activities from internal resources. At the end of FY2025 (ended May 2025), the equity ratio stood at 76.6%, and cash and cash equivalents totaled ¥5,664 million, up 23.6% year on year. This high level of financial stability provides the company with capacity for strategic investments such as M&A and business/capital alliances.

Improving productivity by enhancing new design capabilities, estimation capabilities, and management capabilities, and by raising the overall level of T-SES, thereby increasing orders for large-scale projects and new design projects. In FY2026 (ending May 2026), order expansion was achieved across all segments, resulting in a 15.7% increase in net sales and a 31.8% increase in operating income. The medium-term management targets were achieved one year ahead of schedule.

Expanding organizational structure with autonomous driving/advanced driver assistance-related, government cloud, aerospace, and crisis management-related fields as focus areas. Over the two years of the medium-term plan, the focus areas achieved a 35.0% increase in net sales and a 40.2% increase in gross profit. In FY2026 (ending May 2026), Industrial & ICT Solutions (government cloud), Specific Information Systems (crisis management, aerospace), and Automotive Systems (autonomous driving) all achieved increases in both revenue and profit.

Concluded a capital and business alliance agreement with SCSK Corporation dated September 30, 2025. The aim is to combine and coordinate the strengths of both companies to build strong competitiveness in industrial fields, including Automotive Systems. The Automotive Systems segment achieved a 9.3% increase in net sales and a 7.8% increase in segment profit in FY2026 (ending May 2026), and the materialization of alliance effects is expected going forward.

Implementing wage increases for four consecutive fiscal periods to return value to employees and to maintain and strengthen recruitment competitiveness. New graduate hiring for 2026 achieved approximately 10% of total employees, in line with the initial plan. Mid-career hiring is also progressing well, steadily increasing the number of engineers. Expanding the qualification acquisition incentive program and company-wide rollout of an online learning platform to promote strategic skill acquisition.

At the board of directors meeting on July 7, 2026, resolved to conduct a share buyback (ToSTNeT-3) with an upper limit of 900,000 shares and ¥1,750 million. This is a large-scale capital policy equivalent to 9.28% of total shares issued (excluding treasury shares). Combined with the progressive dividend policy (annual dividend of ¥92 planned for FY2027 (ending May 2027), representing 8 consecutive years of dividend increases), this aims to improve ROE and enhance shareholder returns.