CREO CO.,LTD.

Business Details

This segment provides solution services centered on the HR/payroll and accounting solution "ZeeM." It is handled by the Cloud Business Division, the Enterprise DX Business Division, and the Business Acceleration Business Division. The company is focusing on expanding sales of its "HR Solution," which combines ZeeM with Amano Corporation's attendance management system, and growth in cloud-based usage fees (stock-type services) has driven sales growth. Under the medium-term management plan, this segment is also positioned as a growth business, and the company is promoting the expansion of stock-type business and reinforcement of human resources.

Recent Overview

Solid stock-type services drove segment sales up 5.6% and operating profit up 12.8%.

In FY2026 (ending March 2026), the stock-type services (usage-fee model) for the mainstay ZeeM series and other offerings performed steadily, leading to a stable expansion of the earnings base. Sales to external customers were ¥5,342 million (up 5.6% year on year), and segment profit was ¥1,019 million (up 12.8% year on year), with the operating margin improving to 19.1% from 17.8% in the prior year. While the impairment loss of ¥84 million (Solution Services Business) recorded in the prior year was not recorded in the current year, a software valuation loss of ¥25 million was recorded. Fixed asset investment also increased substantially to ¥385 million from ¥239 million in the prior year, reflecting continued active investment in product development.

Key Products

Growth Drivers

• Expansion of the stock-type business through continued growth in cloud-based usage fees (SaaS model)
• Sustained solid corporate IT investment demand related to work-style reform and human capital management
• Expanded sales of the "HR Solution" through collaboration with Amano Corporation (sales to Amano: ¥2,080 million in the prior year → ¥2,090 million in the current year)
• Strengthened customer DX support centered on the "DX Promotion Department" newly established in April 2025
• Continued strong demand driven by the growing emphasis on human capital in the HR field
• Continued strategic investment positioning the Solution Services Business as a pillar of growth under the medium-term management plan "VISION2030"

Risks

• Risk of insufficient human resources (project managers, systems engineers, etc.) for the solution provision structure as orders grow larger in scale
• Risk of fluctuation in sales recognition timing due to delays in order receipt and acceptance/inspection for large-scale projects
• Risk of unprofitable projects (a software valuation loss of ¥25 million was recorded in the current fiscal year)
• Risk of rising personnel costs and difficulty securing talent amid intensifying competition to hire IT engineers
• Seasonal fluctuation risk with sales and profit concentrated in the second and fourth quarters
• Customer concentration risk arising from sales dependence on specific customers such as Amano Corporation and the Fujitsu Group