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Presentation materials on financial results3626TISI Inc.Information and Communications, Services and Others

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue and operating profit increased, driven in part by the capture of IT investment demand, while the operating margin rose 0.5 percentage points year on year. The full-year earnings forecast was unchanged, and the materials outlined initiatives including the launch of a new AI-related brand and a payments platform strategy.

Worth reading
53Recurring
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
9794
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFirst quarter of the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥150,111 million+7.0%
Operating profit¥18,347 million+12.2%
Net income¥14,409 million +15.1%profit attributable to owners of the parent
Gross Profit Margin27.6 %
Operating profit margin12.2 %
Selling, general and administrative expenses¥8.4 100 million year-on-year increase
Results for the three months of the current quarterRevenue of ¥150,111 million, operating profit of ¥18,347 million, and quarterly net income attributable to owners of the parent of ¥14,409 million. The materials calculate the figures for each three-month quarter by subtracting cumulative-period figures.
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 % estimated
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of higher revenue27.1 Hundred millions of yen
  • Profitability Improvement1.1 Hundred millions of yen
  • Increase in SG&A expenses-8.4 Hundred millions of yen
  • Impact of unprofitable projects-1.3 Hundred millions of yen
  • SG&A expense breakdown, impact of changes in consolidated subsidiaries, and other factors1.6 Hundred millions of yen
  • Growth investment1 Hundred millions of yen
  • Initiative execution4.1 Hundred millions of yen
  • Merger-related expenses1.9 Hundred millions of yen
  • Other expenses-0.3 Hundred millions of yen
New initiatives
  • Launch of IntegriA, a new brand providing end-to-end support for AI utilization
  • Launch of PAYCIERGE's next-generation payments platform strategy, combining Vertical AI specialized in payments with specialist talent
  • Target ¥1 billion in revenue five years from now by providing end-to-end support for enterprise AI implementation
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received during the period¥111,700 million
    Year on year against the same period last year+11.3%
  • Software development orders received¥78,919 million
    Year on year against the same period last year+12.5%
  • Order backlog at period-end¥172,573 million
    Year on year against the same period last year+9.7%
  • Software development orders backlog¥118,105 million
    Year on year against the same period last year+12.6%
  • AI and data scientists200 People
  • Related consultants200 People
Segment results
  • Offering Services
    Net Sales¥39,831 million (YoY +9.9%)
    Operating profit¥1,643 million (YoY -5.0%)
  • BPM
    Net Sales¥11,050 million (YoY +3.4%)
    Operating profit¥1,437 million (YoY +1.0%)
  • Financial IT
    Net Sales¥25,801 million (YoY +9.2%)
    Operating profit¥3,528 million (YoY +18.4%)
  • Industrial IT
    Net Sales¥34,077 million (YoY +5.3%)
    Operating profit¥6,201 million (YoY +21.4%)
  • Wide-area IT Solutions
    Net Sales¥45,855 million (YoY +4.7%)
    Operating profit¥5,271 million (YoY +9.0%)
Medium-term management plan targets
Medium-term management plan (2024-2026)
TargetEPS CAGR of 10% and ROE above 16%
Comparison with actual resultsThe materials state that ROE under the plan for the fiscal year ending March 2027 is 17.5% (estimated) and is expected to meet the target.
Financial targets
ROE
TargetAbove 16%
Plan17.5% (estimated)
Orders received and order backlog
Orders received during the period
¥111,700 million+11.3%
Order backlog at period-end
¥172,573 million+9.7%
Number of employees
More than 400 people in the AI utilization organization. This comprises 200 AI and data scientists and 200 related consultants. Total employees, changes during the period, and hiring plans are Not disclosed.
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥150,111 million (YoY +7.0%)
Operating profit¥18,347 million (YoY +12.2%)
Net income¥14,409 million (profit attributable to owners of the parent) (YoY +15.1%)
Gross Profit Margin27.6 %
Operating profit margin12.2 %
Selling, general and administrative expenses¥8.4 100 million (year-on-year increase)
Results for the three months of the current quarterRevenue of ¥150,111 million, operating profit of ¥18,347 million, and quarterly net income attributable to owners of the parent of ¥14,409 million. The materials calculate the figures for each three-month quarter by subtracting cumulative-period figures.
Full-year earnings forecastNet 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 % (estimated)
Segment resultsSegment Offering Services / Net Sales ¥39,831 million (YoY +9.9%) / Operating profit ¥1,643 million (YoY -5.0%), Segment BPM / Net Sales ¥11,050 million (YoY +3.4%) / Operating profit ¥1,437 million (YoY +1.0%), Segment Financial IT / Net Sales ¥25,801 million (YoY +9.2%) / Operating profit ¥3,528 million (YoY +18.4%), Segment Industrial IT / Net Sales ¥34,077 million (YoY +5.3%) / Operating profit ¥6,201 million (YoY +21.4%), Segment Wide-area IT Solutions / Net Sales ¥45,855 million (YoY +4.7%) / Operating profit ¥5,271 million (YoY +9.0%)
Breakdown of Factors Affecting the ChangeFactors Impact of higher revenue / Amount 27.1 Hundred millions of yen, Factors Profitability Improvement / Amount 1.1 Hundred millions of yen, Factors Increase in SG&A expenses / Amount -8.4 Hundred millions of yen, Factors Impact of unprofitable projects / Amount -1.3 Hundred millions of yen, Factors SG&A expense breakdown, impact of changes in consolidated subsidiaries, and other factors / Amount 1.6 Hundred millions of yen, Factors Growth investment / Amount 1 Hundred millions of yen, Factors Initiative execution / Amount 4.1 Hundred millions of yen, Factors Merger-related expenses / Amount 1.9 Hundred millions of yen, Factors Other expenses / Amount -0.3 Hundred millions of yen
Key KPIsIndicator name Orders received during the period / Value ¥111,700 million / Year on year against the same period last year ¥11.3 million, Indicator name Software development orders received / Value ¥78,919 million / Year on year against the same period last year ¥12.5 million, Indicator name Order backlog at period-end / Value ¥172,573 million / Year on year against the same period last year ¥9.7 million, Indicator name Software development orders backlog / Value ¥118,105 million / Year on year against the same period last year ¥12.6 million, Indicator name AI and data scientists / Value 200 People / Year on year against the same period last year Not disclosed, Indicator name Related consultants / Value 200 People / Year on year against the same period last year Not disclosed
Number of employeesMore than 400 people in the AI utilization organization. This comprises 200 AI and data scientists and 200 related consultants. Total employees, changes during the period, and hiring plans are Not disclosed.
Medium-term management plan targetsSubject Medium-term management plan (2024-2026) / Target EPS CAGR of 10% and ROE above 16% / Comparison with actual results The materials state that ROE under the plan for the fiscal year ending March 2027 is 17.5% (estimated) and is expected to meet the target.
Financial targetsROE Target Above 16% / Plan 17.5% (estimated)
Orders received and order backlogOrders received during the period ¥111,700 million (YoY +11.3%) / Order backlog at period-end ¥172,573 million (YoY +9.7%)
New initiativesLaunch of IntegriA, a new brand providing end-to-end support for AI utilization, Launch of PAYCIERGE's next-generation payments platform strategy, combining Vertical AI specialized in payments with specialist talent, Target ¥1 billion in revenue five years from now by providing end-to-end support for enterprise AI implementation
Items this document does not state (13)
Ordinary incomeProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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.

Growth in earnings was driven by responding to IT investment demand, including customers' digital transformation needs, expanding the business by promoting service delivery, and the effect of higher revenue.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | TISI Inc. (3626) timely disclosure | Komori