On the 15th, Zenetec <4492> announced its consolidated accounting report for the fiscal year ending March 2024. Revenue increased significantly by 21.9% compared to the previous year, reaching 7.147 billion yen. Operating profit increased by 494.5% to 629 million yen and ordinary profit increased by 468.9% to 635 million yen. Net income belonging to parent company shareholders was 414 million yen (profit of 23 million yen in the previous year).

Sales in the system solution business reached 4.496 billion yen, an 18.2% increase from the same period last year. Segment profit also increased by 39.7% to 974 million yen. Order intake for software development in the digital information home appliance and automobile sectors was strong. For hardware development for semiconductor manufacturing equipment, there was a delivery delay in the first half of the year, but in the end, actual sales exceeded the initial plan. In terms of profitability, we have set improving profit margins in this division as a challenge, and as a result of our efforts to improve cost estimation accuracy and thoroughly manage man-hour budgets in subcontracting transactions, and to normalize the monthly unit prices for dispatched and quasi-contracted transactions, segment profit rates have also improved significantly.

Sales in the engineering solution business totaled 2.197 billion yen, a 32.2% increase, while segment profit was 435 million yen, up 9.0% from the previous year. Our major product, "Mastercam", is imported, so the profit margin was pushed down by the currency trend, but we were able to secure almost the same sales and profits as the previous year by actively engaging in development work such as converting costs to sales prices and developing customization that is not affected by currency fluctuations. For "FlexSim", we received strong inquiries from large companies in the automobile, electrical, and electronic component industries and significantly increased sales, contributing to increased profits. However, despite positioning PLM business as a growth business, it is currently in the stage of organizational development, and costs are being incurred ahead of revenue. As a result, overall segment profits did not increase as much as sales.

Sales in the GPS business reached 478 million yen, up 17.8% from the previous year, while segment profit was 85 million yen, up 11.1%. Overall, the installation of the "Kokodayo" service has exceeded a cumulative 1.26 million users as of March 2024, and the number of users continues to increase steadily. In addition, there were factors such as an increase in the unit price of services for the "Sugotoku Contents" unlimited use smartphone app service provided by NTT Docomo, contributing to increased sales and profits.

For the consolidated business performance forecast for the fiscal year ending March 2025, we expect sales to be 40.0 billion yen and operating profit to be 2.10 billion yen in the first half of the year, as costs take precedence. In the second half of the year, we expect sales to be 45.0 billion yen and operating profit to be 5.40 billion yen as we enter the recovery phase. In total, we anticipate sales to increase 18.9% from the previous year to 85.0 billion yen, with operating profit increasing by 19.2% to 7.50 billion yen, ordinary profit increasing by 14.9% to 7.30 billion yen, and net income belonging to parent company shareholders increasing by 2.7% to 426 million yen.