Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | Systems Engineering Consultants Co.,LTD. (3741) timely disclosure

Worth reading

61In focus

Scored from 4 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

20.5

Year-on-year revenue growth (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation

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

Net Sales¥2,772 million+20.5%

Operating profit¥440 million+51.6%

Ordinary income¥517 million+60.6%

Net income¥353 million+58.9%

Selling, general and administrative expenses¥435 million

Operating profit margin15.9%, up 3.3 percentage points year on year

Results for the three months of the current quarterNet sales: ¥2,772 million; operating profit: ¥440 million; ordinary profit: ¥517 million; net income: ¥353 million

Full-year earnings forecast

Net Sales

¥11,800 million

Operating profit

¥1,980 million

Ordinary income

¥2,300 million

Net income for the current fiscal year

¥1,575 million

What the company explained in this material

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

Generally within the planned range

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

Outsourcing costs¥1,093 million, up 24.8% year on year
Research and Development Expenses¥84 million, up 83.4% year on year
R&D subsidy income¥56 million, up 292.1% year on year

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

Demand conditions are expected to be similar to those in the previous fiscal year, with a focus on social infrastructure projects led by government agencies. Numerical assumptions: not disclosed

New initiatives

Addressing development for government agencies and autonomous vehicle operation and space-related development
Selection of research under the Space Strategy Fund
Development of quantum multiprogramming
Joint press release related to the Hayabusa2 asteroid explorer

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

Orders received¥1,718 million
Year-on-year (%)-33.6
Order backlog¥8,010 million
Year-on-year (%)22.3
Order backlog contributing to sales in the current fiscal year¥5,576 million
Year-on-year (%)16.5
Order backlog contributing to sales from the next fiscal year onward¥2,434 million
Year-on-year (%)38.1

Segment results

Mobile Network
Net Sales¥221 million
Year-on-year (%)20.4
Internet
Net Sales¥369 million
Year-on-year (%)-13.4
Social Infrastructure Systems
Net Sales¥1,363 million
Year-on-year (%)33.7
Advanced Space Systems
Net Sales¥818 million
Year-on-year (%)22.2

Orders received and order backlog

Orders received

¥1,718 million

Order backlog

¥8,010 million

Annual Dividend

¥62 per share (interim and year-end breakdown: not disclosed)

Payout ratio

Approximately 40%

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥2,772 million (YoY +20.5%)
Operating profit	¥440 million (YoY +51.6%)
Ordinary income	¥517 million (YoY +60.6%)
Net income	¥353 million (YoY +58.9%)
Operating profit margin	15.9%, up 3.3 percentage points year on year
Selling, general and administrative expenses	¥435 million
Results for the three months of the current quarter	Net sales: ¥2,772 million; operating profit: ¥440 million; ordinary profit: ¥517 million; net income: ¥353 million
Full-year earnings forecast	Net Sales ¥11,800 million / Operating profit ¥1,980 million / Ordinary income ¥2,300 million / Net income for the current fiscal year ¥1,575 million
Self-assessment against the plan	Generally within the planned range
Segment results	Segment Mobile Network / Net Sales ¥221 million / Year-on-year (%) 20.4, Segment Internet / Net Sales ¥369 million / Year-on-year (%) -13.4, Segment Social Infrastructure Systems / Net Sales ¥1,363 million / Year-on-year (%) 33.7, Segment Advanced Space Systems / Net Sales ¥818 million / Year-on-year (%) 22.2
Breakdown of Factors Affecting the Change	Factors Outsourcing costs / Amount ¥1,093 million, up 24.8% year on year, Factors Research and Development Expenses / Amount ¥84 million, up 83.4% year on year, Factors R&D subsidy income / Amount ¥56 million, up 292.1% year on year
Key KPIs	Indicator name Orders received / Value ¥1,718 million / Year-on-year (%) ¥-33.6 million, Indicator name Order backlog / Value ¥8,010 million / Year-on-year (%) ¥22.3 million, Indicator name Order backlog contributing to sales in the current fiscal year / Value ¥5,576 million / Year-on-year (%) ¥16.5 million, Indicator name Order backlog contributing to sales from the next fiscal year onward / Value ¥2,434 million / Year-on-year (%) ¥38.1 million
Assumptions Underlying the Business Outlook	Demand conditions are expected to be similar to those in the previous fiscal year, with a focus on social infrastructure projects led by government agencies. Numerical assumptions: not disclosed
Annual Dividend	¥62 per share (interim and year-end breakdown: not disclosed)
Payout ratio	Approximately 40%
Orders received and order backlog	Orders received ¥1,718 million / Order backlog ¥8,010 million
New initiatives	Addressing development for government agencies and autonomous vehicle operation and space-related development, Selection of research under the Space Strategy Fund, Development of quantum multiprogramming, Joint press release related to the Hayabusa2 asteroid explorer

Items this document does not state (12)

Gross Profit MarginProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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.

Development projects for government agencies remained strong, while research and development projects for autonomous vehicle operation and space-related development increased. Sales increased in the Social Infrastructure Systems BF, Advanced Space Systems BF and Mobile Network BF businesses.

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.