Notice of presentation materials for the fiscal year ending March 2026 results briefing | NIHON DENGI CO.,LTD. (1723) timely disclosure

Worth reading

63In focus

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

3310

¥ million (year-on-year increase in net sales)

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 202611 items taken from the company’s own explanation

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

Net Sales¥46,371 million+7.7%

Operating profit¥11,821 million+29.6%

Ordinary income¥12,126 million+30.3%

Net income¥8,442 million+31.6%

Gross Profit Margin47.4%

Operating profit margin25.5%

Full-year earnings forecast

Net Sales

¥51,500 million

Operating profit

¥12,500 million

Ordinary income

¥12,700 million

Net income for the current fiscal year

¥8,700 million

Operating profit margin

24.3%

ROE

18.4%

Annual Dividend

¥56 per share

What the company explained in this material

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

Continued robust construction demand
Completion and recognition of revenue from large projects in the air-conditioning and instrumentation-related business
Impact of the situation in the Middle East
Impact of measures to comply with the Act on the Optimization of Transactions

New initiatives

Upward revision of the financial targets under the medium-term management plan
Upward revision of the FY2030 performance targets under the long-term management guidelines
Increase in the shareholder return policy to a payout ratio of 40% or higher or DOE of 7% or higher
Plans to build the Dengi Academy and a technology innovation center
Cloud migration and integration of internal systems led by the DX Promotion Committee
Research and development of AI image diagnostic technology and data analysis software
Continued consideration of business alliances and M&A

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

ROE19.6 %
Year on year against the same period last year+2.3%
Orders received¥54,001 million
Year on year against the same period last year+23.4%
Order backlog¥33,476 million
Year on year against the same period last year+29.5%
Number of IR meetings92 times
Year on year against the same period last year+84.0%
Newly qualified personnel (Level 1 Electrical Construction Management Engineer)12 People
Year on year against the same period last year+8.0%
Newly qualified personnel (Level 1 Telecommunications Construction Management Engineer)22 People
Year on year against the same period last year+11.0%
Newly qualified personnel (Level 1 Piping Construction Management Engineer)10 People
Year on year against the same period last year0.0%
Newly qualified personnel (Level 1 Instrumentation Engineer)21 People
Year on year against the same period last year+9.0%

Segment results

HVAC Instrumentation-Related Business

Net Sales

¥41,697 million

Year-on-year change in revenue5.9

Segment profit

¥16,563 million

Segment profit, year on year22.3

Industrial Systems Business

Net Sales

¥4,674 million

Year-on-year change in revenue26.5

Segment profit

¥867 million

Segment profit, year on year102.5

Medium-term management plan targets

FY2027

Orders received545

Net Sales520

Operating profit130

Operating profit margin25%

ROE15.0% or higher

Financial targets

ROE15.0% or higher

Cost of shareholders’ equityApproximately 7–8%

Investors' expected rate of returnApproximately 9–10%

Orders received and order backlog

Orders received

¥54,001 million

Order backlog

¥33,476 million

Number of employees

Number of EmployeesStandalone: 954 people (at the end of FY2025)

Changes during the period and hiring planHired 78 new graduates and mid-career employees. Plans to reach 1,100 employees by the end of FY2030

Annual Dividend

Annual dividend per share56

Payout ratio

40% or higher, or DOE of 7% or higher

Acquisition of treasury shares

Continue to conduct flexible share repurchases (amount, number of shares and period of the repurchase program: not disclosed)

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	¥46,371 million (YoY +7.7%)
Operating profit	¥11,821 million (YoY +29.6%)
Ordinary income	¥12,126 million (YoY +30.3%)
Net income	¥8,442 million (YoY +31.6%)
Gross Profit Margin	47.4%
Operating profit margin	25.5%
Full-year earnings forecast	Net Sales ¥51,500 million / Operating profit ¥12,500 million / Ordinary income ¥12,700 million / Net income for the current fiscal year ¥8,700 million / Operating profit margin 24.3% / ROE 18.4% / Annual Dividend ¥56 per share
Segment results	HVAC Instrumentation-Related Business Net Sales ¥41,697 million / Year-on-year change in revenue 5.9 / Segment profit ¥16,563 million / Segment profit, year on year 22.3 / Industrial Systems Business Net Sales ¥4,674 million / Year-on-year change in revenue 26.5 / Segment profit ¥867 million / Segment profit, year on year 102.5
Key KPIs	Indicator name ROE / Value 19.6 % / Year on year against the same period last year 2.3 %, Indicator name Orders received / Value ¥54,001 million / Year on year against the same period last year ¥23.4 million, Indicator name Order backlog / Value ¥33,476 million / Year on year against the same period last year ¥29.5 million, Indicator name Number of IR meetings / Value 92 times / Year on year against the same period last year 84 times, Indicator name Newly qualified personnel (Level 1 Electrical Construction Management Engineer) / Value 12 People / Year on year against the same period last year 8 People, Indicator name Newly qualified personnel (Level 1 Telecommunications Construction Management Engineer) / Value 22 People / Year on year against the same period last year 11 People, Indicator name Newly qualified personnel (Level 1 Piping Construction Management Engineer) / Value 10 People / Year on year against the same period last year 0 People, Indicator name Newly qualified personnel (Level 1 Instrumentation Engineer) / Value 21 People / Year on year against the same period last year 9 People
Number of employees	Number of Employees Standalone: 954 people (at the end of FY2025) / Changes during the period and hiring plan Hired 78 new graduates and mid-career employees. Plans to reach 1,100 employees by the end of FY2030
Assumptions Underlying the Business Outlook	Continued robust construction demand, Completion and recognition of revenue from large projects in the air-conditioning and instrumentation-related business, Impact of the situation in the Middle East, Impact of measures to comply with the Act on the Optimization of Transactions
Medium-term management plan targets	FY2027 Orders received 545 / Net Sales 520 / Operating profit 130 / Operating profit margin 25% / ROE 15.0% or higher
Financial targets	ROE 15.0% or higher / Cost of shareholders’ equity Approximately 7–8% / Investors' expected rate of return Approximately 9–10%
Annual Dividend	Annual dividend per share 56 / Interim and Year-End Breakdown Not disclosed
Payout ratio	40% or higher, or DOE of 7% or higher
Acquisition of treasury shares	Continue to conduct flexible share repurchases (amount, number of shares and period of the repurchase program: not disclosed)
Orders received and order backlog	Orders received ¥54,001 million / Order backlog ¥33,476 million
New initiatives	Upward revision of the financial targets under the medium-term management plan, Upward revision of the FY2030 performance targets under the long-term management guidelines, Increase in the shareholder return policy to a payout ratio of 40% or higher or DOE of 7% or higher, Plans to build the Dengi Academy and a technology innovation center, Cloud migration and integration of internal systems led by the DX Promotion Committee, Research and development of AI image diagnostic technology and data analysis software, Continued consideration of business alliances and M&A

Items this document does not state (11)

Selling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookCapital expendituresMarket Size / ShareKey points of the Q&A

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 company cited higher revenue from robust construction demand, order-taking with a focus on profitability, and efforts to improve margins as the reasons for the improvement in performance. For the fiscal year ending March 2027, it cited the completion and recognition of revenue from large projects in the air-conditioning and instrumentation-related business as a factor driving higher revenue, and incorporated the impact of the situation in the Middle East and measures to comply with the Act on the Optimization of Transactions.

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.