Message from CEO
Aiming to build a foundation for future growth and achieve sustainable growth through transformation in our business, technology, and human resources
Intelligent Wave Inc. (IWI) has formulated a 3-year medium-term management plan beginning in the fiscal year ended June 2025. Under this medium-term management plan, we have set the theme of "Transformation for the Future," focusing on business diversification and building a foundation for sustainable growth with a view to the 2030s. We have reorganized our business domain into three: "payment," "security," and "data communication and analysis infrastructure," and are focusing on transformation from three perspectives: "business," "technology," and "human resources."
In the core payment domain, with the increasing use of cashless payments, our major business partners in the payment industry have been proceeding with system modernization and open systems initiatives. We are enhancing the value of our payment solutions, which are our strength, and expanding our business into the acquiring area in addition to the FEP* and fraud detection areas. Furthermore, with diversification of card fraud tactics, we are working to enhance the value we provide to the industry through initiatives such as the launch of a new cross-industry fraud prevention solution.
In the security domain, we are working to enhance the value and strengthen sales of our highly profitable proprietary products, while also focusing on expanding into overseas markets, particularly in Southeast Asia. In addition, we are participating in the DNP Group's all-in-one security services and are working to expand our customer base and business areas.
In the data communication and analysis infrastructure domain, we are exploring the application of our core technologies--high-speed, large-capacity data communication and analysis/processing technologies--to other industries, and taking on the challenge of expanding into new markets.
Results for the fiscal year ended June 2025
Net sales were 15,596 million yen (up 7.4% year on year) reflecting steady investment demand centered on credit card companies in our core payment domain. Demand for credit card fraud detection remains high. On the other hand, operating profit was 1,848 million yen (down 9.0% year on year) owing to the impact of quality enhancement measures for a certain project and lump-sum depreciation of some of our own products. We note these are one-off impacts, and from the next fiscal year onward, we will steadily promote the measures in the medium-term management plan and aim to achieve the targets in the final year of the plan.
Earnings forecast for the fiscal year ending June 2026 and shareholder returns
For the fiscal year ending June 2026, we forecast net sales of 17,400 million yen (up 11.6 % year on year) and operating profit of 2,400 million yen (up 29.8% year on year), an upward revision from the initial plan of the medium-term management plan. In terms of sales, we will respond to the demand for system renewal from major credit card companies while striving to expand our business by promoting measures based on our medium-term management plan. On the profit front, we will strive to improve productivity and profitability through standardization and quality enhancement in system development, maintenance, infrastructure, and operations.
As for shareholder returns, the year-end dividend for the fiscal year ended June 2025 was set at 20 yen per share, in line with our initial forecast, making the annual dividends 35 yen. We expect to increase annual dividends to 37 yen per share in the fiscal year ending June 2026.
We will continue to aim for further growth and increased corporate value to meet the expectations of our shareholders. We would appreciate your continued support and cooperation.
Koji Kawakami
Chief Executive Officer,
Representative Director