■Future outlook
1. Earnings forecast for the fiscal year ending March 31, 2025
True Data's financial results for the fiscal year ending 2025/3 are expected to be sales of 1,791 million yen (up 12.4% from the previous fiscal year), operating income of 100 million yen (up 56.4% from the same period), ordinary income of 98 million yen (up 57.6% from the same period), and net income of 87 million yen (up 46.5% from the same period). Sales are planned to grow by 2 digits by steadily accumulating stock-type sales in existing areas while scaling up (scale expansion) in new areas. Stock type sales are expected to be 1,568 million yen, which is 87.6% of expected sales, and the plan is to continue high growth with a 14.7% increase compared to the 2024/3 fiscal year. The breakdown is 847 million yen for “Eagle Eye,” which is the main service for consumer goods manufacturers, and 367 million yen for “shopping scans,” etc., which are services for the retail industry, and the plan is to achieve the others through “Dolphin Eye” and other stock sales. We aim for high growth for “Eagle Eye” with a 9.3% increase compared to the 2024/3 fiscal year. As a measure, the idea is to expand sales by targeting semi-major and mid-sized consumer goods manufacturers that the company positions as “white zones.” Unlike major companies, manufacturers that are undergoing data utilization know-how acquisition and infrastructure development or are undeveloped are regarded as potential customers, leading to customer expansion by developing solutions that meet site needs. We also aim for high growth in shopping scans, etc. with a 22.1% increase compared to the 2024/3 fiscal year. This reflects orders received from multiple retail businesses such as supermarkets in the 2024/3 fiscal year, but in addition to that, it is said that activities aimed at receiving orders for “SalesSensor,” which began service in 2023/9, are coming to fruition, and it is factored into the financial results for the fiscal year ending 2025/3.
In terms of profit, we plan a significant increase in operating profit, with a 56.4% increase compared to the fiscal year ending 2024/3. In the fiscal year ending 2024/3, the operating margin decreased 1.3 points from the previous fiscal year to 4.0% due to an increase in sales and administration expenses associated with growth investments, but we believe that it is quite possible to achieve an operating profit margin of 5.6% for the fiscal year ending 2025/3, which is expected to contribute by converting to stock sales, and considering the company's ability. The company is aiming for an operating profit margin of 8.0% or more as a numerical target for the fiscal year ending 2026/3, and the fiscal year ending 2025/3, which is in the growth acceleration phase, is positioned as the previous step, and it is thought that it will focus on improving profit margins. Note, according to the company, large-scale human resource investments or system investments such as the previous fiscal year are not currently planned for the fiscal year ending 2025/3, and the idea is to proceed with necessary investments in line with business growth while increasing profit margins.
2. Priority measures for the fiscal year ending 2025/3
As priority measures for the fiscal year ending 2025/3, the company has raised targets in a form that matches progress so far for the four policies promoted until the previous fiscal year, and has re-set and set policy details.
(1) Promoting retail DX as a data platform chosen by clients [retail DX area]
Orders for “shopping scans” progressed smoothly as a result of the 2024/3 fiscal year, and based on what can be expected to contribute to financial results for the fiscal year ending 2025/3, we aim to expand orders for data utilization solutions targeting the retail industry, especially drugstores, supermarkets, home centers, convenience stores, etc., and aim to expand and deepen the “aspect” related to purchasing big data in the retail industry. In addition to existing services such as “shopping scans,” it is planned to actively promote sales of new services utilizing AI such as “SalesSensor” and “Potential Scan,” and inquiries from customers are already increasing at the moment, and contributions to business results are expected.
(2) Launch of new areas that are a source of future growth [business analytics area/advertising area]
In the business analytics area, in the fiscal year ending 2024/3, the “POS Analysis Cloud” acquired orders exceeding plans, contributing to an increase in spot sales. In the fiscal year ending 2025/3, improvements to enhance convenience will be carried out by performing settings based on requests from introduction customers, and process development related to manufacturing will be carried out in the first half in order to reduce costs during various settings in the initial introduction stage, costs in the operation stage, etc. The idea is to focus on sales in the second half and promote scaling after devising ways to provide services more smoothly and improving the efficiency of the cost structure (improvement of profit margins). In the advertising area, collaboration with alliance partners is progressing, such as releasing data linkage with “Poswell,” which verifies the effects of YouTube advertisements in the 2024/3 fiscal year, and the menu “Instore Tracking” in the marketing solution of the Rakuten Group ＜4755＞, so contributions to sales are expected in the 2025/3 fiscal year. In the overseas domain, we are proceeding with the launch of new services related to EC and data marketing in physical stores in Vietnam with Vietnamese FPT Software Co., Ltd group companies that formed a business alliance in 2022. It supports local marketing for Japanese companies expanding into Vietnam through data analysis, and preparations are underway with the aim of releasing services during the 2025/3 fiscal year.
(3) Contributing to DX for consumer goods manufacturers (white zone advancing to the data utilization stage) [data marketing area]
In the 2024/3 fiscal year, semi-major and mid-tier consumer goods manufacturers that have not progressed in the utilization of data have been developing solutions that are easy to use in the field, and have been working on diversification of sales channels to capture these manufacturers as customers. In the fiscal year ending 2025/3, sales activities to expand sales of “Eagle Eye” will be promoted in earnest using these as weapons. It is thought that obtaining know-how on data utilization that has already been implemented by major companies on the manufacturer side will lead to the acquisition of major benefits such as sales expansion and business improvement through DX promotion. The company has a policy of rapidly expanding orders in the white zone by constructing sales channels in collaboration with companies that have each manufacturer as a customer base rather than individually capturing each manufacturer.
(4) Maximizing results through “growth of people and organizations” and “development of a business operation infrastructure”
In addition to enhancing support for employee learning and improving expertise as “human and organizational growth,” we will also promote next-generation leader development, team building, and the empowerment of female leaders by specialized coaches. The company regards “human resources” as the most important management asset, and in particular, it is said that know-how related to specialized areas such as handling and analysis of big data, and incorporating customer marketing operations, and the development of human resources who can utilize advanced technology such as AI is directly linked to the competitiveness of the company's business. In addition to responding to improvements in skills related to handling big data through in-house OJT, advanced technology and specialized analysis methods etc. are provided to employees in addition to OJT. In addition, efforts are being made to create a soil that enhances employees' expertise by encouraging them to acquire qualifications and providing stock type qualification allowances when they obtain certifications determined by the company. Furthermore, for the development of next-generation leaders and the empowerment of female leaders, programs such as career coaching are provided in-house to support leadership development. In “business operation infrastructure development,” internal operations and information system development for business promotion were completed by the 2024/3 fiscal year, so we will focus on improving service content for the 2025/3 fiscal year. The “POS analysis cloud” described above is similar, but in addition to providing services with a high level of satisfaction by responding to customers based on improvement requests obtained when the customer introduced the service, support costs are reduced and services are provided smoothly by reviewing the process leading up to service provision.
(Author: FISCO Analyst Tomokazu Murase)