Forecasts

Forecasts for Consolidated Results

For the consolidated results forecasts for the fiscal year ending March 31, 2025, the Company expects increases in revenue, operating income, and net income attributable to owners of the Company. In terms of operating income, the Company forecasts increased profits across all reportable segments, primarily the Consumer and Media & EC segments, with the policy to pursue the achievement of the current Medium-term Management Plan and, concurrently, growth investments in areas such as generative AI, to facilitate business growth during the next Medium-term Management Plan period commencing from the fiscal year ending March 31, 2027.

(Billions of yen)

FY2023
Actual		 FY2024
Forecast		 Year on year Year on year %
Revenue 6,084.0 6,200.0 +116.0 +1.9%
Adjusted EBITDA*1 1,667.7 1,680.0 +12.3 +0.7%
Operating income 876.1 900.0 +23.9 +2.7%
Net income*2 489.1 500.0 +10.9 +2.2%

Forecasts for the Operating Income by Segment

In the Consumer segment, the Company expects an increase in operating income mainly due to increases in telecommunications revenue and mobile device sales, along with a decrease in sales commissions. In the Enterprise segment, the Company expects an increase in operating income related to mobile, cloud and other solution services through promoting digitalization of enterprise customers. Excluding the one-time impact (¥9.0 billion) of a reversal recorded in the fiscal year ended March 31, 2024 of provisions for litigation that had been recorded in the previous fiscal year, the segment's operating income is forecast to increase by 7.4%. In the Media & EC segment, the Company will strengthen its security measures as its utmost priority. Along with this, it will also aim to increase revenue and income by reinforcing products in key growth domains through disciplined cost allocation. In the Financial segment, the Company aims for a favorable balance between growth and profitability and expects the segment to become profitable in the fiscal year ending March 31, 2025. Furthermore, Other is expected to report a decrease in operating income, due to increased growth investments such as investments in generative AI.

(Billions of yen)

FY2023
Actual		 FY2024
Forecast		 Year on year Year on year %
Consumer segment 495.5 530.0 +34.5 +7.0%
Enterprise segment 167.2 170.0 +2.8 +1.7%
Distribution segment 26.2 28.0 +1.8 +6.9%
Media & EC segment 198.0 230.0 +32.0 +16.2%
Financial segment -5.0 3.0 +8.0 -
Other*3, 4 -5.8 -61.0 -55.2 -
Total 876.1 900.0 +23.9 +2.7%
[Notes]
  1. *1
    Adjusted EBITDA = operating income + depreciation and amortization (including loss on disposal of non-current assets) + stock compensation expenses ± other adjustments
  2. *2
    Net income: net income attributable to owners of the Company
  3. *3
    From the fiscal year ending March 31, 2025, SB Technology Corp. and Cybertrust Japan Co., Ltd., etc., which were previously classified as Other, will be transferred to the Enterprise segment. As a result, the figures for the Enterprise segment and Other for the fiscal year ended March 31, 2024 have been retrospectively adjusted. Please note that these retrospectively adjusted figures are currently under review.
  4. *4
    Other includes information not included in any of the Consumer, Enterprise, Distribution, Media & EC, and Financial segments, and adjustments including eliminations of intersegment transactions and expenses not allocated to each reportable segment.