Komori
Earnings presentation materials3692FFRI Security,Inc.Information and Communications, Services and Others

Supplementary Explanatory Materials for Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

Revenue exceeded the year-earlier period in the second quarter of the fiscal year ending March 2027, driven by an increase in K Program projects. However, costs increased due to a rise in projects that exclude profit, staff expansion and stepped-up hiring, resulting in declines in operating profit, ordinary profit and net profit.

Worth reading
53Recurring
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
24.1
Operating profit year-on-year (% decrease)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings summarySecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,865 million+2.2%
Operating profit¥416 million-24.1%
Ordinary income¥426 million-25.9%
Net income¥308 million-30.1%
Gross Profit Margin64.6 %
Operating profit margin22.3 %
Selling, general and administrative expenses¥789 million
Results for the three months of the current quarter
Net Sales
¥955 million
Breakdown
Security Products
¥437 million
National Security Service
¥318 million
Other Security Services
¥116 million
Software Development and Testing
¥84 million
Full-year earnings forecast
Net Sales
¥5,135 million
Operating profit
¥1,452 million
Ordinary income
¥1,509 million
Profit attributable to owners of the parent
¥1,133 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both revenue and profit are progressing in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Cost of sales
    Second quarter of the fiscal year ending March 2026¥599 million
    2Q of the fiscal year ending March 2027¥659 million
  • Selling, General and Administrative Expenses
    Second quarter of the fiscal year ending March 2026¥678 million
    2Q of the fiscal year ending March 2027¥789 million
  • Labor Costs
    Second quarter of the fiscal year ending March 2026¥315 million
    2Q of the fiscal year ending March 2027¥330 million
  • Research and Development Expenses
    Second quarter of the fiscal year ending March 2026¥52 million
    2Q of the fiscal year ending March 2027¥102 million
  • Recruitment costs
    Second quarter of the fiscal year ending March 2026¥33 million
    2Q of the fiscal year ending March 2027¥50 million
New initiatives
  • Launch of the jointly developed 『NEC Cyber Secure Package powered by CyIOC』 by NEC, NECネッツアイ and Digital Arts
  • Launch of 『Mutual Defense Cyber SOC for FFRI yarai』 by シー・シー・ダブル
  • Launch of FFRI Security Works' cybersecurity business
  • Research and development into AI-assisted vulnerability scanning and the discovery of similar vulnerabilities
Key KPIsA metric the company considers important as a management benchmark.
  • Number of licenses for the FFRI yarai series666,651 Licensing
  • Increase in the number of FFRI yarai series licenses from the end of the previous fiscal year47,595 Licensing
  • Consolidated headcount263 people
  • Number of licenses contracted for government agencies230,264 Licensing
  • Number of licenses contracted for other industries and individuals355,292 Licensing
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of licenses for the FFRI yarai series666,651 Licensing
  • Unit price of FFRI yarai¥1,352
  • H&B unit price¥1,234
Segment results
  • Security Products
    Net Sales¥874 million
    Gross profit¥762 million
  • National Security Service
    Net Sales¥619 million
    Gross profit¥287 million
  • Other Security Services
    Net Sales¥201 million
    Gross profit¥110 million
  • Software Development and Testing business
    Net Sales¥170 million
Medium-term management plan targets
Fiscal year ending March 2027
Net Sales
¥5,135 million
Operating profit
¥1,452 million
Fiscal year ending March 2028
Net Sales
¥6,069 million
Operating profit
¥1,730 million
Fiscal year ending March 2029
Net Sales
¥7,029 million
Operating profit
¥1,951 million
Number of employees
263 people
Change during the period18 security engineers who joined in spring 2026, 4 mid-career hires and 4 FFRI Security Works hires joined
Annual Dividend
¥18 per share
Payout ratio
12.6 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings summary
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥1,865 million (YoY +2.2%)
Operating profit¥416 million (YoY -24.1%)
Ordinary income¥426 million (YoY -25.9%)
Net income¥308 million (YoY -30.1%)
Gross Profit Margin64.6 %
Operating profit margin22.3 %
Selling, general and administrative expenses¥789 million
Results for the three months of the current quarterNet Sales ¥955 million / Breakdown Security Products ¥437 million / National Security Service ¥318 million / Other Security Services ¥116 million / Software Development and Testing ¥84 million
Full-year earnings forecastNet Sales ¥5,135 million / Operating profit ¥1,452 million / Ordinary income ¥1,509 million / Profit attributable to owners of the parent ¥1,133 million
Self-assessment against the planBoth revenue and profit are progressing in line with plan
Segment resultsCategory Security Products / Net Sales ¥874 million / Year-on-year change in revenue Not disclosed / Gross profit ¥762 million / Year-on-Year Change in Profit Not disclosed, Category National Security Service / Net Sales ¥619 million / Year-on-year change in revenue Not disclosed / Gross profit ¥287 million / Year-on-Year Change in Profit Not disclosed, Category Other Security Services / Net Sales ¥201 million / Year-on-year change in revenue Not disclosed / Gross profit ¥110 million / Year-on-Year Change in Profit Not disclosed, Category Software Development and Testing business / Net Sales ¥170 million / Year-on-year change in revenue Not disclosed / Gross profit Not disclosed / Year-on-Year Change in Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Cost of sales / Second quarter of the fiscal year ending March 2026 ¥599 million / 2Q of the fiscal year ending March 2027 ¥659 million / yoy_pct 10.1, Factors Selling, General and Administrative Expenses / Second quarter of the fiscal year ending March 2026 ¥678 million / 2Q of the fiscal year ending March 2027 ¥789 million / yoy_pct 16.4, Factors Labor Costs / Second quarter of the fiscal year ending March 2026 ¥315 million / 2Q of the fiscal year ending March 2027 ¥330 million / yoy_pct 4.8, Factors Research and Development Expenses / Second quarter of the fiscal year ending March 2026 ¥52 million / 2Q of the fiscal year ending March 2027 ¥102 million / yoy_pct 97.1, Factors Recruitment costs / Second quarter of the fiscal year ending March 2026 ¥33 million / 2Q of the fiscal year ending March 2027 ¥50 million / yoy_pct 48.8
Key KPIsNumber of licenses for the FFRI yarai series 666,651 Licensing, Increase in the number of FFRI yarai series licenses from the end of the previous fiscal year 47,595 Licensing, Consolidated headcount 263 people, Number of licenses contracted for government agencies 230,264 Licensing, Number of licenses contracted for other industries and individuals 355,292 Licensing
Unit price and quantity metricsNumber of licenses for the FFRI yarai series 666,651 Licensing, Unit price of FFRI yarai ¥1,352, H&B unit price ¥1,234
Number of employees263 people
Medium-term management plan targetsFiscal year ending March 2027 Net Sales ¥5,135 million / Operating profit ¥1,452 million / Fiscal year ending March 2028 Net Sales ¥6,069 million / Operating profit ¥1,730 million / Fiscal year ending March 2029 Net Sales ¥7,029 million / Operating profit ¥1,951 million
Annual Dividend¥18 per share
Payout ratio12.6 %
New initiativesLaunch of the jointly developed 『NEC Cyber Secure Package powered by CyIOC』 by NEC, NECネッツアイ and Digital Arts, Launch of 『Mutual Defense Cyber SOC for FFRI yarai』 by シー・シー・ダブル, Launch of FFRI Security Works' cybersecurity business, Research and development into AI-assisted vulnerability scanning and the discovery of similar vulnerabilities
Items this document does not state (10)
Progress against full-year forecastNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket 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.

K Program projects increased in National Security Services, but the increase in projects that exclude profit, higher headcount and costs associated with stepped-up hiring by the Company and its subsidiaries reduced profit margins.

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