First-Quarter Financial Results Briefing Materials for the Fiscal Year Ending May 2027 | Pacific Net Co.,Ltd. (3021) timely disclosure

Worth reading

74In focus

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

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

131

Millions of yen (year-on-year change in operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending May 202713 items taken from the company’s own explanation

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

Net Sales¥2,578 million+8.3%

Operating profit¥191 million-40.6%

Ordinary income¥149 million-51.0%

Net income¥97 million-52.3%

Gross Profit Margin20.3 %

Operating profit margin7.4 %

Results for the three months of the current quarter

Net Sales

¥2,578 million

Operating profit

¥191 million

Ordinary income

¥149 million

Profit attributable to owners of parent for the quarter

¥97 million

EBITDA

¥1,201 million+4.6%

Full-year earnings forecast

Net Sales

¥11,100 million

Operating profit

¥1,450 million

Ordinary income

¥1,300 million

Profit attributable to owners of the parent

¥884 million

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 Sales23.2

Operating profit13.2

What the company explained in this material

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

Maintain the full-year forecast

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

Growth in recurring revenue (IT subscriptions)¥46 million
Lower gross profit margin on rental revenue¥-25 million
Decline in short-term rentals¥-62 million
Decline in IT services and sales¥-53 million
Growth in transactional revenue (ITAD, communication devices)¥19 million
Higher costs from investment in personnel¥-42 million
Higher costs from other investments, including IT and facilities¥-8 million
Other cost increases¥-6 million

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

Demand across the 3 main businesses remains firm, with continued demand for long-term rentals and LCM, ITAD security and proper-disposal services, and travel and corporate services. Numerical assumptions: Not disclosed.

New initiatives

Launch of TeamViewer ONE services from 14 September 2026
Sagamihara Technical Center opened in June 2026
Expanded ITAD coverage to servers, storage and network equipment

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

EBITDA¥1,201 million
Year on year against the same period last year+4.6%
Subscription assets, net7.3 % change from the end of the previous fiscal year
Utilization rate80.8 %
Order value44.6 % year on year
Number of customers10.1 % year on year
Long-term subscription revenue18.6 % year on year
Number of PCs leased10.4 % year on year
IT services revenue-26.1 % year on year

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

Number of PCs leased
Year on year against the same period last year+10.4%
Number of rental units shipped
Year on year against the same period last year+14.1%
Rental revenue
Year on year against the same period last year+5.4%
Average price per unitHigher

Segment results

IT Subscription Business
Net Sales¥1,819 million (YoY +5.9%)
Segment profit¥111 million (YoY -50.6%)
ITAD Business
Net Sales¥756 million (YoY +15.6%)
Segment profit¥284 million (YoY +3.1%)
Communication and Devices Business
Net Sales¥71 million (YoY +3.8%)
Segment profit¥20 million (YoY +121.6%)

Financial targets

ROE
Target18% or more
Actual results23.5
Equity ratio
Target20～30%
Actual results25.5
D/E ratio
Target3x or less
Actual results2.4

Market Size / Share

New PC shipments for business use

FY26735 10,000 units

FY27779 10,000 units

FY28682 10,000 units

Orders received and order backlog

Order value was 44.6% year on year. Amount: Not disclosed. Order backlog: Not disclosed.

Number of employees

281 people

As of1 October 2026

Annual Dividend

¥65 per share

Breakdown

Regular dividend57

Commemorative dividend8

Payout ratio

30 % or higher

DOE

5 % or higher

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	First quarter of the fiscal year ending May 2027
Net Sales	¥2,578 million (YoY +8.3%)
Operating profit	¥191 million (YoY -40.6%)
Ordinary income	¥149 million (YoY -51.0%)
Net income	¥97 million (YoY -52.3%)
Gross Profit Margin	20.3 %
Operating profit margin	7.4 %
Results for the three months of the current quarter	Net Sales ¥2,578 million / Operating profit ¥191 million / Ordinary income ¥149 million / Profit attributable to owners of parent for the quarter ¥97 million / EBITDA ¥1,201 million (YoY +4.6%)
Full-year earnings forecast	Net Sales ¥11,100 million / Operating profit ¥1,450 million / Ordinary income ¥1,300 million / Profit attributable to owners of the parent ¥884 million
Progress against full-year forecast	Net Sales 23.2 / Operating profit 13.2
Self-assessment against the plan	Maintain the full-year forecast
Segment results	Segment IT Subscription Business / Net Sales ¥1,819 million (YoY +5.9%) / Segment profit ¥111 million (YoY -50.6%), Segment ITAD Business / Net Sales ¥756 million (YoY +15.6%) / Segment profit ¥284 million (YoY +3.1%), Segment Communication and Devices Business / Net Sales ¥71 million (YoY +3.8%) / Segment profit ¥20 million (YoY +121.6%)
Breakdown of Factors Affecting the Change	Factors Growth in recurring revenue (IT subscriptions) / Amount ¥46 million, Factors Lower gross profit margin on rental revenue / Amount ¥-25 million, Factors Decline in short-term rentals / Amount ¥-62 million, Factors Decline in IT services and sales / Amount ¥-53 million, Factors Growth in transactional revenue (ITAD, communication devices) / Amount ¥19 million, Factors Higher costs from investment in personnel / Amount ¥-42 million, Factors Higher costs from other investments, including IT and facilities / Amount ¥-8 million, Factors Other cost increases / Amount ¥-6 million
Key KPIs	Indicator name EBITDA / Value ¥1,201 million / Year on year against the same period last year ¥4.6 million, Indicator name Subscription assets, net / Value 7.3 % change from the end of the previous fiscal year / Year on year against the same period last year Not disclosed, Indicator name Utilization rate / Value 80.8 % / Year on year against the same period last year Not disclosed, Indicator name Order value / Value 44.6 % year on year, Indicator name Number of customers / Value 10.1 % year on year, Indicator name Long-term subscription revenue / Value 18.6 % year on year, Indicator name Number of PCs leased / Value 10.4 % year on year, Indicator name IT services revenue / Value -26.1 % year on year
Unit price and quantity metrics	Indicator name Number of PCs leased / Year on year against the same period last year 10.4 %, Indicator name Number of rental units shipped / Year on year against the same period last year 14.1 %, Indicator name Rental revenue / Year on year against the same period last year 5.4 %, Indicator name Average price per unit / Value Higher
Number of employees	281 people
Assumptions Underlying the Business Outlook	Demand across the 3 main businesses remains firm, with continued demand for long-term rentals and LCM, ITAD security and proper-disposal services, and travel and corporate services. Numerical assumptions: Not disclosed.
Financial targets	Indicator ROE / Target 18% or more / Actual results 23.5 %, Indicator Equity ratio / Target 20～30% / Actual results 25.5 %, Indicator D/E ratio / Target 3x or less / Actual results 2.4 times
Annual Dividend	¥65 per share
Payout ratio	30 % or higher
Orders received and order backlog	Order value was 44.6% year on year. Amount: Not disclosed. Order backlog: Not disclosed.
Market Size / Share	New PC shipments for business use FY26 735 10,000 units / FY27 779 10,000 units / FY28 682 10,000 units
New initiatives	Launch of TeamViewer ONE services from 14 September 2026, Sagamihara Technical Center opened in June 2026, Expanded ITAD coverage to servers, storage and network equipment

Items this document does not state (7)

Selling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresKey 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 increased on the buildup of long-term rentals and higher sales in the ITAD business, but profit was weighed down by the reaction to large short-term rental and IT services projects in the same quarter of the previous year, lower profitability amid intensifying competition in the long-term rental market and higher PC procurement prices, and upfront costs for depreciation of subscription assets and expanded staffing and organizational capabilities.

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.