Supplementary Explanatory Materials for the Second Quarter (Interim Period) Financial Results for the Fiscal Year Ending March 2027 | NIPPON RIETEC CO.,LTD. (1938) timely disclosure

Worth reading

52Recurring

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

¥100 million (increase in full-year revenue from the initial forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Results presentationFiscal year ending March 2027, second quarter (first half)11 items taken from the company’s own explanation

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

Net Sales¥314 100 million+9.8%

Operating profit¥26 100 million+78.6%

Ordinary income¥31 100 million+76.5%

Net income¥20 100 million+100.0%

Operating profit margin8.3

Full-year earnings forecast

Net Sales

¥785 100 million

Operating profit

¥80 100 million

Ordinary income

¥90 100 million

Profit attributable to owners of the parent

¥69 100 million

What the company explained in this material

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

Expected to exceed the initial forecast

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

Increase in revenue from the initial forecast¥32 100 million
Increase in operating profit from the initial forecast¥6 100 million
Increase in ordinary profit from the initial forecast¥6 100 million
Increase in net income attributable to owners of the parent from the initial forecast¥8 100 million

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

Certain assumptions deemed reasonable. Figures are Not disclosed

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

Orders¥331 100 million
Year on year against the same period last year-4.0%
Common Equity Ratio69.4 %
Year-on-year change5.2

Segment results

Railway Electrical Facilities

Orders received

¥196 100 million

yoy_change19

Net Sales

¥154 100 million

yoy_change12

Road infrastructure

Orders received

¥64 100 million

yoy_change-1

Net Sales

¥50 100 million

yoy_change9

Indoor and outdoor electrical equipment

Orders received

¥35 100 million

yoy_change12

Net Sales

¥22 100 million

yoy_change-8

Transmission-line facilities

Orders received

¥35 100 million

yoy_change-34

Net Sales

¥67 100 million

yoy_change11

Ancillary businesses

Net Sales

¥17.8 100 million

yoy_change3.4

Real Estate Leasing Business

Net Sales

¥1.9 100 million

yoy_change0

Medium-term management plan targets

Target fiscal yearFiscal year ending March 2028

Consolidated revenue

81,000 Million yen

Consolidated operating profit

8,400 Million yen

ROE

10 %

DOE

4 %

Financial targets

ROE

Target value10 %

DOE

Target value4 %

Equity ratio

Actual value69.4 %

Orders received and order backlog

Orders received

¥331 100 million

Annual Dividend

Annual

¥107 /share

Interim

¥47 /share

End of period

¥60 /share

Payout ratio

40 %

Acquisition of treasury shares

Shareholder return policy through flexible repurchases of treasury shares. The amount, number of shares and period of the repurchase authorisation are Not disclosed

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Fiscal year ending March 2027, second quarter (first half)
Net Sales	¥314 100 million (YoY +9.8%)
Operating profit	¥26 100 million (YoY +78.6%)
Ordinary income	¥31 100 million (YoY +76.5%)
Net income	¥20 100 million (YoY +100.0%)
Operating profit margin	8.3
Full-year earnings forecast	Net Sales ¥785 100 million / Operating profit ¥80 100 million / Ordinary income ¥90 100 million / Profit attributable to owners of the parent ¥69 100 million
Self-assessment against the plan	Expected to exceed the initial forecast
Segment results	Railway Electrical Facilities Orders received ¥196 100 million / Net Sales ¥154 100 million / Road infrastructure Orders received ¥64 100 million / Net Sales ¥50 100 million / Indoor and outdoor electrical equipment Orders received ¥35 100 million / Net Sales ¥22 100 million / Transmission-line facilities Orders received ¥35 100 million / Net Sales ¥67 100 million / Ancillary businesses Net Sales ¥17.8 100 million / Real Estate Leasing Business Net Sales ¥1.9 100 million
Breakdown of Factors Affecting the Change	Factors Increase in revenue from the initial forecast / Amount ¥32 100 million, Factors Increase in operating profit from the initial forecast / Amount ¥6 100 million, Factors Increase in ordinary profit from the initial forecast / Amount ¥6 100 million, Factors Increase in net income attributable to owners of the parent from the initial forecast / Amount ¥8 100 million
Key KPIs	Indicator name Orders / Value ¥331 100 million / Year on year against the same period last year ¥-4 100 million, Indicator name Common Equity Ratio / Value 69.4 % / Year-on-year change 5.2 %
Assumptions Underlying the Business Outlook	Certain assumptions deemed reasonable. Figures are Not disclosed
Medium-term management plan targets	Target fiscal year Fiscal year ending March 2028 / Consolidated revenue 81,000 Million yen / Consolidated operating profit 8,400 Million yen / ROE 10 % / DOE 4 %
Financial targets	ROE Target value 10 % / DOE Target value 4 % / Equity ratio Actual value 69.4 %
Annual Dividend	Annual ¥107 /share / Interim ¥47 /share / End of period ¥60 /share
Payout ratio	40 %
Acquisition of treasury shares	Shareholder return policy through flexible repurchases of treasury shares. The amount, number of shares and period of the repurchase authorisation are Not disclosed
Orders received and order backlog	Orders received ¥331 100 million / Order backlog Not disclosed

Items this document does not state (12)

Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookCapital expendituresMarket Size / ShareKey points of the Q&ANew initiatives

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 reasons cited were steady progress on projects supported by a strong backlog of carried-over construction work and firm orders, higher profit resulting from increased revenue, improved profitability through price negotiations with customers, and higher productivity through digitalisation and workforce allocation.

How to read this page

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