Q&A on the Results for the First Quarter of the Fiscal Year Ending February 2027 | VRAIN Solution,Inc. (135A) timely disclosure

Worth reading

42Recurring

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

197

¥ million (improvement in operating loss from the same period a year earlier)

Wording

Conditional

How definitive the wording is.

Contents of this document

Summary of Q&AFirst quarter of the fiscal year ending February 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net SalesApproximately 3.3 times the same period a year earlier

Operating profit¥-31 million

Selling, general and administrative expensesIncreased

Results for the three months of the current quarterOperating loss of ¥31 million, revenue from continuing customers of ¥513 million, representing 79.1% of total revenue

Full-year earnings forecast

Net Sales

¥4,823 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Generally in line with the initial expectations, with overall performance progressing smoothly

Key points of the Q&AKey questions raised by investors at the briefing and the company's answers

Assessment of the first quarter: substantial revenue growth; the operating loss was ¥31 million, an improvement of ¥197 million from the same period a year earlier, and performance was generally in line with initial expectations
Reason for higher revenue: the division of sales processes proved effective, enabling the company to focus on new order activities
Nagoya Plant: scheduled to begin operations in late July this year
Expansion among existing customers: significant potential remains, but it is difficult to calculate uniform specific figures. The continuing-customer revenue ratio is expected to be approximately 50% for the full fiscal year
Timing of revenue recognition for the order backlog: approximately ¥1,000 million in the second quarter and approximately ¥386 million in the second half
Supply capacity: to be expanded by increasing support staff and establishing the Nagoya Plant
Decrease in assets and increase in the equity ratio: due to decreases in cash and other assets, collection of receivables and other assets, and repayment of short-term borrowings
Progress against the earnings forecast: the company is targeting cumulative revenue of ¥1,800 million for the first half and full-year revenue of ¥4,823 million
Middle East situation: there is no direct impact, but the company is monitoring persistently high energy costs and customers' restraint on capital investment

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Establishment of a division of sales processes and the concentration of sales personnel on new order activities
Increase in SG&A expenses associated with investments for future growth and other factors
Decrease in cash and deposits due to the payment of corporate taxes and other taxes¥-118 million
Collection of trade receivables and contract assets¥733 million
Full repayment of short-term borrowings

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Energy costs and other expenses are expected to remain elevated for the foreseeable future. Numerical assumptions are Not disclosed

New initiatives

Establishment of the Nagoya Plant and its scheduled start of operations in late July this year
Increase in support staff responsible for the process from equipment design and manufacturing through after-sales support

Key KPIsA metric the company considers important as a management benchmark.

Number of customers358 companies
Revenue from continuing customers¥513 million
Continuing-customer revenue ratio79.1 %
Average selling price of AI systems¥22 million
Year on year against the same period last yearUp 20.6% from the end of the previous fiscal year
Order backlog¥1,386 million

Unit price and quantity metricsThese figures show sales broken down by price and volume.

AI system selling price of ¥22 million, up 20.6% from the end of the previous fiscal year. The combination with volume indicators is Not disclosed

Medium-term management plan targets

The medium-term management policy targets 1.5-fold revenue growth. The target fiscal year is Not disclosed

Financial targets

The equity ratio rose from 64.9% at the end of the previous fiscal year to 82.5% at the end of the current quarter. Targets for ROE, ROIC, the D/E ratio and other metrics are Not disclosed

Orders received and order backlog

Order backlog

¥1,386 million

Expected revenue recognition

Second quarter¥1,000 million

Second half

¥386 million

Number of stores and locations

The Nagoya Plant is scheduled to begin operations in late July this year. The number of stores and sites at the end of the fiscal year, and the number of openings and closures, are Not disclosed

Contents of this document
Item	Details
Document type	Summary of Q&A
Fiscal Period Covered	First quarter of the fiscal year ending February 2027
Net Sales	Approximately 3.3 times the same period a year earlier
Operating profit	¥-31 million
Selling, general and administrative expenses	Increased
Results for the three months of the current quarter	Operating loss of ¥31 million, revenue from continuing customers of ¥513 million, representing 79.1% of total revenue
Full-year earnings forecast	Net Sales ¥4,823 million
Self-assessment against the plan	Generally in line with the initial expectations, with overall performance progressing smoothly
Breakdown of Factors Affecting the Change	Factors Establishment of a division of sales processes and the concentration of sales personnel on new order activities / Amount Not disclosed, Factors Increase in SG&A expenses associated with investments for future growth and other factors / Amount Not disclosed, Factors Decrease in cash and deposits due to the payment of corporate taxes and other taxes / Amount ¥-118 million, Factors Collection of trade receivables and contract assets / Amount ¥733 million, Factors Full repayment of short-term borrowings / Amount Not disclosed
Key KPIs	Indicator name Number of customers / Value 358 companies / Year on year against the same period last year Not disclosed, Indicator name Revenue from continuing customers / Value ¥513 million / Year on year against the same period last year Not disclosed, Indicator name Continuing-customer revenue ratio / Value 79.1 % / Year on year against the same period last year Not disclosed, Indicator name Average selling price of AI systems / Value ¥22 million / Year on year against the same period last year Up 20.6% from the end of the previous fiscal year, Indicator name Order backlog / Value ¥1,386 million / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	AI system selling price of ¥22 million, up 20.6% from the end of the previous fiscal year. The combination with volume indicators is Not disclosed
Number of stores and locations	The Nagoya Plant is scheduled to begin operations in late July this year. The number of stores and sites at the end of the fiscal year, and the number of openings and closures, are Not disclosed
Assumptions Underlying the Business Outlook	Energy costs and other expenses are expected to remain elevated for the foreseeable future. Numerical assumptions are Not disclosed
Medium-term management plan targets	The medium-term management policy targets 1.5-fold revenue growth. The target fiscal year is Not disclosed
Financial targets	The equity ratio rose from 64.9% at the end of the previous fiscal year to 82.5% at the end of the current quarter. Targets for ROE, ROIC, the D/E ratio and other metrics are Not disclosed
Orders received and order backlog	Order backlog ¥1,386 million / Expected revenue recognition Second quarter ¥1,000 million / Second half ¥386 million
Key points of the Q&A	Assessment of the first quarter: substantial revenue growth; the operating loss was ¥31 million, an improvement of ¥197 million from the same period a year earlier, and performance was generally in line with initial expectations, Reason for higher revenue: the division of sales processes proved effective, enabling the company to focus on new order activities, Nagoya Plant: scheduled to begin operations in late July this year, Expansion among existing customers: significant potential remains, but it is difficult to calculate uniform specific figures. The continuing-customer revenue ratio is expected to be approximately 50% for the full fiscal year, Timing of revenue recognition for the order backlog: approximately ¥1,000 million in the second quarter and approximately ¥386 million in the second half, Supply capacity: to be expanded by increasing support staff and establishing the Nagoya Plant, Decrease in assets and increase in the equity ratio: due to decreases in cash and other assets, collection of receivables and other assets, and repayment of short-term borrowings, Progress against the earnings forecast: the company is targeting cumulative revenue of ¥1,800 million for the first half and full-year revenue of ¥4,823 million, Middle East situation: there is no direct impact, but the company is monitoring persistently high energy costs and customers' restraint on capital investment
New initiatives	Establishment of the Nagoya Plant and its scheduled start of operations in late July this year, Increase in support staff responsible for the process from equipment design and manufacturing through after-sales support

Items this document does not state (13)

Ordinary incomeNet incomeGross Profit MarginOperating profit marginProgress against full-year forecastSegment resultsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresMarket Size / Share

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The division of sales processes introduced from the previous fiscal year worked effectively, enabling sales personnel to focus on new orders and resulting in higher revenue. SG&A expenses increased due to investments for future growth and other factors, but the increase was absorbed by the effect of higher revenue.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.