Komori
Financial results presentation3657Pole To Win Holdings,Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending January 2027

In the first quarter of the fiscal year ending January 2027, revenue declined following the withdrawal from the Media & Content business, while operating profit and net income returned to profitability due to business restructuring, reductions in personnel expenses and fixed costs, and foreign exchange gains. Operating profit and other items are progressing ahead of plan relative to the full-year forecast.

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
1522
¥ million (year-on-year decrease in revenue)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending January 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,237 million-11.9%
Operating profit¥266 million
Ordinary income¥474 million
Net income¥180 million profit attributable to owners of the parent
Gross Profit Margin24.3
Operating profit margin2.4
Results for the three months of the current quarter
Net Sales
¥11,237 million
Operating profit
¥266 million
Ordinary income
¥474 million
Profit attributable to owners of parent for the quarter
¥180 million
Full-year earnings forecast
Net Sales
¥47,082 million
Operating profit
¥2,014 million
Ordinary income
¥1,891 million
Profit attributable to owners of the parent
¥700 million
EBITDA
¥2,867 million
Earnings per share
¥19.81
Dividend per share
¥16
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。
Consolidated
Net Sales23.9
Operating profit13.2
Domestic Solutions
Net Sales23.9
Operating profit19.2
International Solutions
Net Sales23.8
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit finished in positive territory. Domestic solutions exceeded the plan in both revenue and profit. Nearly all overseas solutions services exceeded the plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit due to an improved mix and other factors¥160 million
  • Decrease in gross profit due to lower revenue¥-348 million
  • Reduction in personnel expenses, mainly overseas¥329 million
  • Reduction in fixed costs, including amortization¥146 million
  • Foreign exchange gains in the current fiscal year (yen depreciation)¥248 million
  • Foreign exchange losses in the previous fiscal year (yen appreciation)¥-433 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company expects an impact from future order trends and foreign exchange movements, but numerical assumptions are not disclosed. Investment evaluation is based on a target WACC of 8% and ROIC of 10%.
New initiatives
  • Establishment of a base in Riyadh, Saudi Arabia, under a memorandum of understanding with Savvy Games Group (scheduled to begin operations in 2026)
  • Announcement of Razer Cortex, a game debugging solution
  • Announcement of a new system that automates the design of software testing plans
  • Development of AI talent and reskilling, primarily for software test engineers
  • Focus on the FoodTech and FinTech fields within the domestic technology sector
  • Improving the profitability of overseas solutions through the use of AI, relocation of bases and organizational streamlining
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥410 million
    Year on year against the same period last year+31.4%
  • Consolidated number of employees7,891 People
    Year on year against the same period last year-5.2%
  • Domestic solutions headcount5,336 People
    Year on year against the same period last year+3.1%
  • Overseas solutions headcount2,523 People
    Year on year against the same period last year-7.7%
Segment results
Domestic Solutions
Net Sales
¥6,773 million
Revenue_yoy_pct7.6
Operating profit
¥233 million
Operating profit_yoy_pct-19.1
International Solutions
Net Sales
¥4,463 million
Revenue_yoy_pct-8.2
Operating profit
¥-13 million
Financial targets
ROE
Target value15
Target fiscal yearFiscal year ending January 2029
Actual ROE
Fiscal year ending January 2026-33.4 %
Market Size / Share
  • Gaming
    Growth rate8.0%
  • Technology
    Growth rate7.4%
  • MENA gaming market
  • EWC2025 viewership7.5 100 million people
Number of stores and locations
Number of stores and locations, and openings and closures during the period: not disclosed
Number of employees
Consolidated total7,891 People
Year-on-year change-431 People
Year-on-year change-5.2 People
Domestic Solutions5,336 People
International Solutions2,523 People
New graduates hired39 People
Annual Dividend
Annual¥16 per share
Interim¥8 per share
End of period¥8 per share
Payout ratio
Total payout ratio of 80.8%. The shareholder return policy provides for a minimum DOE of 3.0% and a total payout ratio of at least 30%.
Acquisition of treasury shares
The policy refers to M&A, share buybacks and other measures. The amount, number of shares and period for the acquisition program are not disclosed.
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending January 2027
Net Sales¥11,237 million (YoY -11.9%)
Operating profit¥266 million
Ordinary income¥474 million
Net income¥180 million (profit attributable to owners of the parent)
Gross Profit Margin24.3
Operating profit margin2.4
Results for the three months of the current quarterNet Sales ¥11,237 million / Operating profit ¥266 million / Ordinary income ¥474 million / Profit attributable to owners of parent for the quarter ¥180 million
Full-year earnings forecastNet Sales ¥47,082 million / Operating profit ¥2,014 million / Ordinary income ¥1,891 million / Profit attributable to owners of the parent ¥700 million / EBITDA ¥2,867 million / Earnings per share ¥19.81 / Dividend per share ¥16
Progress against full-year forecastConsolidated Net Sales 23.9 / Operating profit 13.2 / Domestic Solutions Net Sales 23.9 / Operating profit 19.2 / International Solutions Net Sales 23.8 / Operating profit Not disclosed
Self-assessment against the planOperating profit finished in positive territory. Domestic solutions exceeded the plan in both revenue and profit. Nearly all overseas solutions services exceeded the plan.
Segment resultsDomestic Solutions Net Sales ¥6,773 million / Revenue_yoy_pct 7.6 / Operating profit ¥233 million / Operating profit_yoy_pct -19.1 / International Solutions Net Sales ¥4,463 million / Revenue_yoy_pct -8.2 / Operating profit ¥-13 million / Operating profit_yoy_pct Not disclosed / Media and Content Not disclosed
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit due to an improved mix and other factors / Amount ¥160 million, Factors Decrease in gross profit due to lower revenue / Amount ¥-348 million, Factors Reduction in personnel expenses, mainly overseas / Amount ¥329 million, Factors Reduction in fixed costs, including amortization / Amount ¥146 million, Factors Foreign exchange gains in the current fiscal year (yen depreciation) / Amount ¥248 million, Factors Foreign exchange losses in the previous fiscal year (yen appreciation) / Amount ¥-433 million
Key KPIsIndicator name EBITDA / Value ¥410 million / Year on year against the same period last year ¥31.4 million, Indicator name Consolidated number of employees / Value 7,891 People / Year on year against the same period last year -5.2 People, Indicator name Domestic solutions headcount / Value 5,336 People / Year on year against the same period last year 3.1 People, Indicator name Overseas solutions headcount / Value 2,523 People / Year on year against the same period last year -7.7 People
Number of stores and locationsNumber of stores and locations, and openings and closures during the period: not disclosed
Number of employeesConsolidated total 7,891 People / Year-on-year change -431 People / Year-on-year change -5.2 People / Domestic Solutions 5,336 People / International Solutions 2,523 People / New graduates hired 39 People
Assumptions Underlying the Business OutlookThe company expects an impact from future order trends and foreign exchange movements, but numerical assumptions are not disclosed. Investment evaluation is based on a target WACC of 8% and ROIC of 10%.
Financial targetsROE Target value 15 / Target fiscal year Fiscal year ending January 2029 / Actual ROE -33.4 %
Annual DividendAnnual ¥16 per share / Interim ¥8 per share / End of period ¥8 per share
Payout ratioTotal payout ratio of 80.8%. The shareholder return policy provides for a minimum DOE of 3.0% and a total payout ratio of at least 30%.
Acquisition of treasury sharesThe policy refers to M&A, share buybacks and other measures. The amount, number of shares and period for the acquisition program are not disclosed.
Market Size / ShareMarket Gaming / Growth rate 8.0%, Market Technology / Growth rate 7.4%, Market MENA gaming market / Value Not disclosed, Indicator EWC2025 viewership / Value 7.5 100 million people
New initiativesEstablishment of a base in Riyadh, Saudi Arabia, under a memorandum of understanding with Savvy Games Group (scheduled to begin operations in 2026), Announcement of Razer Cortex, a game debugging solution, Announcement of a new system that automates the design of software testing plans, Development of AI talent and reskilling, primarily for software test engineers, Focus on the FoodTech and FinTech fields within the domestic technology sector, Improving the profitability of overseas solutions through the use of AI, relocation of bases and organizational streamlining
Items this document does not state (7)
Selling, general and administrative expensesUnit price and quantity metricsRisk 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 declined due to the withdrawal from the Media & Content business and a temporary decrease in orders for overseas solutions. However, an improved sales mix following the withdrawal from unprofitable businesses, overseas layoffs and other business streamlining, lower fixed costs including personnel expenses and amortization, and foreign exchange gains resulting from the yen's depreciation contributed to improved profitability.

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Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending January 2027 | Pole To Win Holdings,Inc. (3657) timely disclosure | Komori