Full-Year Earnings Presentation for the Fiscal Year Ending March 2026 | RAKUS Co.,Ltd. (3923) timely disclosure

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Direction

Improvement

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Scale

17345

¥ millions (operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2026, full year13 items taken from the company’s own explanation

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

Net Sales¥60,286 million+23.3%

Operating profit¥17,345 million+70.2%

Net income¥13,293 million+66.1%

Gross Profit Margin75.3 %

Operating profit margin28.8 %

Selling, general and administrative expenses¥28,075 million+7.5%

Results for the three months of the current quarter

Net Sales

¥15,988 million+19.7%

Operating profit

¥4,844 million+83.0%

Net income

¥3,696 million+53.1%

Operating profit margin

30.3 %

yoy_change_pt10.5

What the company explained in this material

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

Above plan

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

Positive effect of higher Cloud Business revenue¥9,907 million
Positive effect of higher IT Human Resources Business revenue¥1,474 million
Increase in personnel expenses¥-3,727 million
Decrease in advertising and promotional expenses¥688 million
Increase in other expenses¥-1,190 million

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

Assumes organic Cloud Business revenue CAGR of at least 15%, with M&A and price revisions not incorporated into the medium-term plan. Consolidated revenue for the fiscal year ending March 2027 is expected to appear to slow because of the transfer of the IT Human Resources Business.

New initiatives

Update to the AI assistance features of Rakuraku Hanbai
Launch of Rakuraku Employee Portal
Establishment of a CAIO (Chief AI Officer) position
Full-scale development of enterprise sales and establishment of a SOC framework
Establishment of a specialized cross-selling organization
Reorganization of the Partner Alliance Department into region-based sales organizations
Opening of sales locations in Shizuoka, Sendai and Okayama
Transfer of the IT Human Resources Business to BREXA Technology

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

Cloud Business ARR¥51,899 million
Year on year against the same period last year+19.4%
Recurring-revenue ratio92.6 %
Active Rakuraku Seisan customers17,147 companies
Active Rakuraku Meisai customers14,694 companies
Active Rakuraku Hanbai customers4,105 companies
LTV (core businesses)
Value
1,907, 3,357, 1,504

Unit price and quantity metricsThese figures show sales broken down by price and volume.

The company disclosed trends in the churn rate and ARPU (average monthly revenue per user), as well as the number of active customers and quarterly net additions. The specific ARPU figure was not disclosed.

Segment results

Cloud Business

Net Sales

¥51,770 million+23.7%

Operating profit

¥16,027 million+71.1%

IT human resources business

Net Sales

¥8,516 million+20.9%

Operating profit

¥1,318 million+59.2%

Medium-term management plan targets

Period CoveredFiscal years ending March 2027 to March 2029

Target

Organic Cloud Business revenue CAGR of at least 15%
Achieve the Rule of 50 (from the fiscal year ending March 2028)
Revenue of at least JPY 30 million per full-time employee in the fiscal year ending March 2029
Maintain ROE of at least 30%
Total payout ratio of at least 20%
Increase dividends every fiscal year under a progressive dividend policy

Financial targets

ROEMaintain at least 30% (55.4% in the fiscal year ended March 2026)

Equity ratio

Actual results71.2 %

Market Size / Share

Qualitative disclosure only, stating that the enterprise market is extremely large and the company's market share is low. Numerical data was not disclosed.

Number of stores and locations

Number of store openings and closures during the periodNew locations opened in Shizuoka, Sendai and Okayama

Number of employees

Number of Employees3,569 people

Year on year against the same period last year+15.7%

Change during the period483 people

Acquisition of treasury shares

Repurchase authorization amount¥5,000 million

SituationAll repurchased shares have been cancelled

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Fiscal year ending March 2026, full year
Net Sales	¥60,286 million (YoY +23.3%)
Operating profit	¥17,345 million (YoY +70.2%)
Net income	¥13,293 million (YoY +66.1%)
Gross Profit Margin	75.3 %
Operating profit margin	28.8 %
Selling, general and administrative expenses	¥28,075 million (YoY +7.5%)
Results for the three months of the current quarter	Net Sales ¥15,988 million (YoY +19.7%) / Operating profit ¥4,844 million (YoY +83.0%) / Net income ¥3,696 million (YoY +53.1%) / Operating profit margin 30.3 %
Self-assessment against the plan	Above plan
Segment results	Cloud Business Net Sales ¥51,770 million (YoY +23.7%) / Operating profit ¥16,027 million (YoY +71.1%) / IT human resources business Net Sales ¥8,516 million (YoY +20.9%) / Operating profit ¥1,318 million (YoY +59.2%)
Breakdown of Factors Affecting the Change	Factors Positive effect of higher Cloud Business revenue / Amount ¥9,907 million, Factors Positive effect of higher IT Human Resources Business revenue / Amount ¥1,474 million, Factors Increase in personnel expenses / Amount ¥-3,727 million, Factors Decrease in advertising and promotional expenses / Amount ¥688 million, Factors Increase in other expenses / Amount ¥-1,190 million
Key KPIs	Indicator name Cloud Business ARR / Value ¥51,899 million / Year on year against the same period last year ¥19.4 million, Indicator name Recurring-revenue ratio / Value 92.6 % / Year on year against the same period last year Not disclosed, Indicator name Active Rakuraku Seisan customers / Value 17,147 companies / Year on year against the same period last year Not disclosed, Indicator name Active Rakuraku Meisai customers / Value 14,694 companies / Year on year against the same period last year Not disclosed, Indicator name Active Rakuraku Hanbai customers / Value 4,105 companies / Year on year against the same period last year Not disclosed, Indicator name LTV (core businesses) / Value 1,907, 3,357, 1,504 / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	The company disclosed trends in the churn rate and ARPU (average monthly revenue per user), as well as the number of active customers and quarterly net additions. The specific ARPU figure was not disclosed.
Number of stores and locations	Number at period-end Not disclosed / Number of store openings and closures during the period New locations opened in Shizuoka, Sendai and Okayama
Number of employees	Number of Employees 3,569 people / Year on year against the same period last year 15.7 people / Change during the period 483 people
Assumptions Underlying the Business Outlook	Assumes organic Cloud Business revenue CAGR of at least 15%, with M&A and price revisions not incorporated into the medium-term plan. Consolidated revenue for the fiscal year ending March 2027 is expected to appear to slow because of the transfer of the IT Human Resources Business.
Medium-term management plan targets	Period Covered Fiscal years ending March 2027 to March 2029 / Target Organic Cloud Business revenue CAGR of at least 15%, Achieve the Rule of 50 (from the fiscal year ending March 2028), Revenue of at least JPY 30 million per full-time employee in the fiscal year ending March 2029, Maintain ROE of at least 30%, Total payout ratio of at least 20%, Increase dividends every fiscal year under a progressive dividend policy
Financial targets	ROE Maintain at least 30% (55.4% in the fiscal year ended March 2026) / Equity ratio Actual results 71.2 % / Debt-to-equity ratio Not disclosed / ROIC Not disclosed
Acquisition of treasury shares	Repurchase authorization amount ¥5,000 million / Number of Shares Not disclosed / Period Not disclosed / Situation All repurchased shares have been cancelled
Market Size / Share	Qualitative disclosure only, stating that the enterprise market is extremely large and the company's market share is low. Numerical data was not disclosed.
New initiatives	Update to the AI assistance features of Rakuraku Hanbai, Launch of Rakuraku Employee Portal, Establishment of a CAIO (Chief AI Officer) position, Full-scale development of enterprise sales and establishment of a SOC framework, Establishment of a specialized cross-selling organization, Reorganization of the Partner Alliance Department into region-based sales organizations, Opening of sales locations in Shizuoka, Sendai and Okayama, Transfer of the IT Human Resources Business to BREXA Technology

Items this document does not state (9)

Ordinary incomeFull-year earnings forecastProgress against full-year forecastRisk amount incorporated into the outlookAnnual DividendPayout ratioCapital 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.

The positive effect of higher revenue from the Cloud Business exceeded the increase in expenses, advertising and promotional spending was made more efficient and optimized, and strong performance continued in products such as Rakuraku Seisan and Rakuraku Kintai.

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