RYOMO SYSTEMS CO.,LTD.
9691・Standard Market・Information & Communication
Public Sector Business
Core segment providing IT solutions for the public market, including local governments, police, and schools
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥14,759 million | ¥12,454 million | ↑ |
| Segment Profit | ¥3,070 million | ¥2,087 million | ↑ |
| Segment Assets | ¥9,410 million | ¥10,761 million | ↓ |
| Depreciation and Amortization | ¥611 million | ¥746 million | ↓ |
| Increase in Tangible/Intangible Fixed Assets | ¥436 million | ¥806 million | ↓ |
| Segment Profit Margin | 20.8% | 16.8% | ↑ |
Business Details
Targeting the public market, including local governments, police, water utilities, schools, and libraries, this segment provides Software Development & System Sales, Information Processing Services, and System Equipment & Product Sales. It contributes to both revenue and profit through government-led initiatives to unify and standardize core local government business systems, responses to legal reforms, and sales of NEXT GIGA-related IT equipment and associated services for schools. In FY2026 (ending March 2026), it is the flagship segment, accounting for approximately 57% of consolidated net sales.
Recent Overview
Standardization response and NEXT GIGA demand drove substantial growth, with net sales up 18.5% and profit up 47.1%
In the Public Sector Business segment for FY2026 (ending March 2026), in addition to expansion of Software Development & System Sales driven by local government system standardization and legal reform responses, sales of NEXT GIGA-related IT equipment and associated services for schools also performed steadily. Segment net sales reached ¥14,759 million (up 18.5% year on year), and segment profit reached ¥3,070 million (up 47.1% year on year), achieving substantial growth in both revenue and profit. The profit margin improved significantly to 20.8% from 16.8% in the prior period. Meanwhile, segment assets decreased to ¥9,410 million compared to the end of the prior period, indicating improved asset efficiency.
Key Products
Growth Drivers
- Continued demand for large-scale development and implementation driven by government-led unification/standardization of core local government business systems
- Expansion of NEXT GIGA-related IT equipment sales and associated services for schools
- Special software development projects arising from legal reform responses for local governments (e.g., family registry systems)
- Expansion of cloud services and outsourcing services leveraging the operation of the Ryomo Systems Data Center (RSDC)
- Increase in System Equipment & Product Sales driven by Windows 11 update demand
Risks
- Risk of a downturn once the special demand from local government system standardization response subsides (from FY2027 (ending March 2027) onward)
- Segment assets have decreased compared to the end of the prior period, suggesting a reduction in the backlog of large-scale orders
- Price pressure due to budget constraints and intensifying bidding competition specific to public procurement
- Risk to the execution of large-scale SI projects due to a shortage of IT engineers
- Uncertainty regarding future outlook due to non-disclosure of next-period earnings forecasts, following the planned delisting associated with a tender offer by the controlling shareholder
Last updated: June 23, 2026