Presentation Materials for the Fiscal Year Ending March 2026 Results | TISI Inc. (3626) timely disclosure

Worth reading

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

7181

¥ million (year-on-year increase in operating income)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation

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

Net Sales¥596,479 million+4.3%

Operating profit¥76,229 million+10.4%

Net income¥46,624 million -6.8%net income attributable to owners of the parent

Gross Profit Margin28.2%

Operating profit margin12.8%

Selling, general and administrative expenses+¥940 million year on year

Results for the three months of the current quarter

Net Sales

¥160,227 million

Year on year against the same period last year+3.3%

Operating profit

¥21,426 million

Year on year against the same period last year+6.3%

Operating profit margin

13.4%

Year on year against the same period last year+0.4 percentage points

Profit attributable to owners of parent for the quarter

¥8,427 million

Year on year against the same period last year-45.8%

Full-year earnings forecast

Net Sales

¥620,000 million

Operating profit

¥81,000 million

Profit attributable to owners of the parent

¥57,000 million

Earnings per share

¥271.7

ROE

17.5%

What the company explained in this material

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

Revenue and operating income exceeded the plan. Net income attributable to owners of the parent fell short of the plan.

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

Impact of higher revenue+¥7.05 billion year on year / +¥2.41 billion versus plan
Profitability Improvement+¥1.07 billion year on year / ▲¥2.57 billion versus plan
Increase/decrease in SG&A expenses▲¥940 million year on year / +¥1.39 billion versus plan
Impact of unprofitable projects+¥1.20 billion year on year / ▲¥440 million versus plan

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

Extraordinary Gains on Sales of Investment Securities¥5 billion
Compensation investment+¥4 billion year on year
Growth InvestmentApproximately ¥100 billion cumulative over 3 years

New initiatives

Strengthen problem-solving, insight and integration capabilities based on the use of AI, and develop talent
Accelerate the commercialization of stablecoins
Extend AI-driven development to maintenance and quality management
Develop joint businesses with investee companies in ASEAN
Acquire ¥50 billion of treasury shares

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

Orders received during the period¥605,805 million
Year on year against the same period last year+5.0%
Software development orders received¥315,223 million
Year on year against the same period last year+6.6%
Order backlog at period-end¥210,769 million
Year on year against the same period last year+6.7%
Software development orders outstanding at period-end¥117,201 million
Year on year against the same period last year+8.5%
ROE14.0%
Year on year against the same period last yearDown 1.3 percentage points
Equity ratio58.9%
Year on year against the same period last year▲2.6 percentage points

Segment results

Offering Services
Net Sales¥160,574 million (+10.3% year on year)
Operating profit¥10,442 million (+5.1% year on year)
BPM
Net Sales¥44,092 million (+3.4% year on year)
Operating profit¥6,397 million (+20.1% year on year)
Financial IT
Net Sales¥98,730 million (▲1.5% year on year)
Operating profit¥12,729 million (+3.3% year on year)
Industrial IT
Net Sales¥133,396 million (+4.1% year on year)
Operating profit¥22,507 million (+16.4% year on year)
Wide-area IT Solutions
Net Sales¥184,238 million (+3.8% year on year)
Operating profit¥23,328 million (+8.1% year on year)

Medium-term management plan targets

Revenue
Target¥620 billion
Target fiscal yearFiscal year ending March 2027
Operating margin
Target13.1%
Target fiscal yearFiscal year ending March 2027
ROIC/ROE
TargetROIC above 13% / ROE above 16%
Target fiscal yearFiscal year ending March 2027
EPS CAGR
TargetMore than 10%
Target fiscal yearFiscal year ending March 2027

Financial targets

ROE
TargetAbove 16%
Actual results14.0%
ROIC
TargetMore than 13%
Actual results14.4%
D/E ratio
TargetPermitted up to 0.5
Equity ratio
Actual results58.9%

Orders received and order backlog

Orders received¥605,805 million (+5.0% year on year)

Order backlog¥210,769 million (+6.7% year on year)

Annual Dividend

Annual dividend per share¥80 (actual for the fiscal year ended March 2026), ¥90 (plan for the fiscal year ending March 2027)

BreakdownFiscal year ended March 2026: ¥38 interim / ¥42 year-end; fiscal year ending March 2027 plan: ¥45 interim / ¥45 year-end

Payout ratio

Rate35.3% for the fiscal year ended March 2026, 35.0% for the fiscal year ending March 2027 (adjusted)

Total payout ratio49.0% for the fiscal year ended March 2026, 50.0% for the fiscal year ending March 2027 (adjusted)

Acquisition of treasury shares

Buyback limit¥50 billion in total

Acquired to date¥13.9 billion during the fiscal year ended March 2026

Going forwardRemaining ¥36.1 billion during the fiscal year ending March 2027

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending March 2026, full year
Net Sales	¥596,479 million (YoY +4.3%)
Operating profit	¥76,229 million (YoY +10.4%)
Net income	¥46,624 million (net income attributable to owners of the parent) (YoY -6.8%)
Gross Profit Margin	28.2%
Operating profit margin	12.8%
Selling, general and administrative expenses	+¥940 million year on year
Results for the three months of the current quarter	Net Sales ¥160,227 million / Operating profit ¥21,426 million / Operating profit margin 13.4% / Profit attributable to owners of parent for the quarter ¥8,427 million
Full-year earnings forecast	Net Sales ¥620,000 million / Operating profit ¥81,000 million / Profit attributable to owners of the parent ¥57,000 million / Earnings per share ¥271.7 / ROE 17.5%
Self-assessment against the plan	Revenue and operating income exceeded the plan. Net income attributable to owners of the parent fell short of the plan.
Segment results	Segment Offering Services / Net Sales ¥160,574 million (+10.3% year on year) / Operating profit ¥10,442 million (+5.1% year on year), Segment BPM / Net Sales ¥44,092 million (+3.4% year on year) / Operating profit ¥6,397 million (+20.1% year on year), Segment Financial IT / Net Sales ¥98,730 million (▲1.5% year on year) / Operating profit ¥12,729 million (+3.3% year on year), Segment Industrial IT / Net Sales ¥133,396 million (+4.1% year on year) / Operating profit ¥22,507 million (+16.4% year on year), Segment Wide-area IT Solutions / Net Sales ¥184,238 million (+3.8% year on year) / Operating profit ¥23,328 million (+8.1% year on year)
Breakdown of Factors Affecting the Change	Factors Impact of higher revenue / Amount +¥7.05 billion year on year / +¥2.41 billion versus plan, Factors Profitability Improvement / Amount +¥1.07 billion year on year / ▲¥2.57 billion versus plan, Factors Increase/decrease in SG&A expenses / Amount ▲¥940 million year on year / +¥1.39 billion versus plan, Factors Impact of unprofitable projects / Amount +¥1.20 billion year on year / ▲¥440 million versus plan
Key KPIs	Indicator Orders received during the period / Value ¥605,805 million / Year on year against the same period last year ¥5 million, Indicator Software development orders received / Value ¥315,223 million / Year on year against the same period last year ¥6.6 million, Indicator Order backlog at period-end / Value ¥210,769 million / Year on year against the same period last year ¥6.7 million, Indicator Software development orders outstanding at period-end / Value ¥117,201 million / Year on year against the same period last year ¥8.5 million, Indicator ROE / Value 14.0% / Year on year against the same period last year Down 1.3 percentage points, Indicator Equity ratio / Value 58.9% / Year on year against the same period last year ▲2.6 percentage points
Assumptions Underlying the Business Outlook	Item Extraordinary Gains on Sales of Investment Securities / Value ¥5 billion, Item Compensation investment / Value +¥4 billion year on year, Item Growth Investment / Value Approximately ¥100 billion cumulative over 3 years
Medium-term management plan targets	Indicator Revenue / Target ¥620 billion / Target fiscal year Fiscal year ending March 2027, Indicator Operating margin / Target 13.1% / Target fiscal year Fiscal year ending March 2027, Indicator ROIC/ROE / Target ROIC above 13% / ROE above 16% / Target fiscal year Fiscal year ending March 2027, Indicator EPS CAGR / Target More than 10% / Target fiscal year Fiscal year ending March 2027
Financial targets	Indicator ROE / Target Above 16% / Actual results 14.0%, Indicator ROIC / Target More than 13% / Actual results 14.4%, Indicator D/E ratio / Target Permitted up to 0.5 / Actual results Not disclosed, Indicator Equity ratio / Target Not disclosed / Actual results 58.9%
Annual Dividend	Annual dividend per share ¥80 (actual for the fiscal year ended March 2026), ¥90 (plan for the fiscal year ending March 2027) / Breakdown Fiscal year ended March 2026: ¥38 interim / ¥42 year-end; fiscal year ending March 2027 plan: ¥45 interim / ¥45 year-end
Payout ratio	Rate 35.3% for the fiscal year ended March 2026, 35.0% for the fiscal year ending March 2027 (adjusted) / Total payout ratio 49.0% for the fiscal year ended March 2026, 50.0% for the fiscal year ending March 2027 (adjusted)
Acquisition of treasury shares	Buyback limit ¥50 billion in total / Acquired to date ¥13.9 billion during the fiscal year ended March 2026 / Going forward Remaining ¥36.1 billion during the fiscal year ending March 2027 / Period Not disclosed
Orders received and order backlog	Orders received ¥605,805 million (+5.0% year on year) / Order backlog ¥210,769 million (+6.7% year on year)
New initiatives	Strengthen problem-solving, insight and integration capabilities based on the use of AI, and develop talent, Accelerate the commercialization of stablecoins, Extend AI-driven development to maintenance and quality management, Develop joint businesses with investee companies in ASEAN, Acquire ¥50 billion of treasury shares

Items this document does not state (9)

Ordinary incomeProgress 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&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 response to demand for IT investment, including customers' digital transformation initiatives, the expansion of service delivery, and a decline in unprofitable projects contributed to higher revenue and operating income. However, extraordinary items deteriorated due to such factors as the provision for litigation loss and impairment losses, resulting in lower net income.

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