Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending February 2027 | YE DIGITAL Corporation (2354) timely disclosure

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Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending February 202710 items taken from the company’s own explanation

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

Net Sales¥4,788 million-2.7%

Operating profit¥331 million+4.9%

Ordinary income¥313 million-11.2%

Net income¥163 million-25.1%

Gross Profit MarginConsolidated: not disclosed. Business solutions: 29.8% (up 0.8 percentage points from 29.0% in the same period of the previous year); IoT solutions: 30.7% (up 8.3 percentage points from 22.4% in the same period of the previous year)

Operating profit margin4.1%. 6.4% in the same period of the previous year, down 2.3 percentage points

Results for the three months of the current quarterRevenue: ¥4,788 million; gross profit: ¥1,433 million; operating profit: ¥331 million; ordinary profit: ¥313 million; quarterly net income attributable to owners of the parent: ¥163 million

Full-year earnings forecast

Net Sales

¥22,000 million

Operating profit

¥2,200 million

Ordinary income

¥2,300 million

Profit attributable to owners of the parent

¥1,600 million

Earnings per share

¥89.76

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales21.8％

Operating profit15.1％

Ordinary income13.6％

Profit attributable to owners of parent for the quarter10.2％

Business solutions revenue24.8％

IoT solutions revenue14.6％

What the company explained in this material

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

Progressing generally in line with the plan

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

Profit decrease due to lower business solutions revenue¥-164 million
Increase in profit from higher IoT Solutions revenue¥88 million
Improving profitability¥181 million
Increase due to investment in human resources and other factors¥-82 million
Other¥-8 million

New initiatives

Add DOE to the dividend policy, with targets of a 30% payout ratio and DOE of 5.0% or higher
Establish the joint venture LDXテクノロジーズ with FCCテクノ on 1 July 2026
Launch the Process-to-Process Transport Automation Package for manufacturers in summer 2026
Scheduled to launch generative AI support functions for teachers as standard features of NetSHAKER W-NAC in January 2027

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

Equity ratio53.9 ％
ROE (annualized)8.6 ％
WES market shareNo. 1 (for 3 consecutive years)

Segment results

Business Solutions

Net Sales

¥3,837 million-7.0%

Gross profit

¥1,142 million-4.5%

IoT Solutions

Net Sales

¥950 million+19.5%

Gross profit

¥291 million+63.9%

Financial targets

Payout Ratio Target30％

Shareholders' equity dividend ratio (DOE) targetAt least 5.0%

Equity ratio

53.9 ％

ROE

8.6 ％

Market Size / Share

No. 1 in the WES market (for 3 consecutive years)

Annual Dividend

¥30 per share

Interim15

End of period15

Payout ratio

33.8

Acquisition of treasury shares

Flexibly conduct share repurchases to enhance shareholder returns and capital efficiency

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	First quarter of the fiscal year ending February 2027
Net Sales	¥4,788 million (YoY -2.7%)
Operating profit	¥331 million (YoY +4.9%)
Ordinary income	¥313 million (YoY -11.2%)
Net income	¥163 million (YoY -25.1%)
Gross Profit Margin	Consolidated: not disclosed. Business solutions: 29.8% (up 0.8 percentage points from 29.0% in the same period of the previous year); IoT solutions: 30.7% (up 8.3 percentage points from 22.4% in the same period of the previous year)
Operating profit margin	4.1%. 6.4% in the same period of the previous year, down 2.3 percentage points
Results for the three months of the current quarter	Revenue: ¥4,788 million; gross profit: ¥1,433 million; operating profit: ¥331 million; ordinary profit: ¥313 million; quarterly net income attributable to owners of the parent: ¥163 million
Full-year earnings forecast	Net Sales ¥22,000 million / Operating profit ¥2,200 million / Ordinary income ¥2,300 million / Profit attributable to owners of the parent ¥1,600 million / Earnings per share ¥89.76
Progress against full-year forecast	Net Sales 21.8％ / Operating profit 15.1％ / Ordinary income 13.6％ / Profit attributable to owners of parent for the quarter 10.2％ / Business solutions revenue 24.8％ / IoT solutions revenue 14.6％
Self-assessment against the plan	Progressing generally in line with the plan
Segment results	Business Solutions Net Sales ¥3,837 million (YoY -7.0%) / Gross profit ¥1,142 million (YoY -4.5%) / IoT Solutions Net Sales ¥950 million (YoY +19.5%) / Gross profit ¥291 million (YoY +63.9%)
Breakdown of Factors Affecting the Change	Factors Profit decrease due to lower business solutions revenue / Amount ¥-164 million, Factors Increase in profit from higher IoT Solutions revenue / Amount ¥88 million, Factors Improving profitability / Amount ¥181 million, Factors Increase due to investment in human resources and other factors / Amount ¥-82 million, Factors Other / Amount ¥-8 million
Key KPIs	Indicator name Equity ratio / Value 53.9 ％ / Year on year against the same period last year Not disclosed, Indicator name ROE (annualized) / Value 8.6 ％ / Year on year against the same period last year Not disclosed, Indicator name WES market share / Value No. 1 (for 3 consecutive years) / Year on year against the same period last year Not disclosed
Financial targets	Payout Ratio Target 30％ / Shareholders' equity dividend ratio (DOE) target At least 5.0% / Equity ratio 53.9 ％ / ROE 8.6 ％
Annual Dividend	¥30 per share
Payout ratio	33.8
Acquisition of treasury shares	Flexibly conduct share repurchases to enhance shareholder returns and capital efficiency
Market Size / Share	No. 1 in the WES market (for 3 consecutive years)
New initiatives	Add DOE to the dividend policy, with targets of a 30% payout ratio and DOE of 5.0% or higher, Establish the joint venture LDXテクノロジーズ with FCCテクノ on 1 July 2026, Launch the Process-to-Process Transport Automation Package for manufacturers in summer 2026, Scheduled to launch generative AI support functions for teachers as standard features of NetSHAKER W-NAC in January 2027

Items this document does not state (10)

Selling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsCapital expendituresOrders received and order backlogKey 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.

Revenue was affected by a decline in business solutions as large-scale project orders reached completion, but remained at the level of the same period of the previous year due to growth in IoT solutions. Operating profit benefited from improved profitability in both businesses, expanded in-house operations and higher productivity through the use of generative AI, and increased IoT solutions revenue, although investments in human resources and other expenses also increased.

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