Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | Ubicom Holdings,Inc. (3937) timely disclosure

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Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation

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

Net Sales¥1,744 million+17.5%

Operating profit¥410 million+30.9%

Ordinary income¥395 million+25.0%

Net income¥263 million-2.9%

Operating profit margin23.5%, up 2.4 percentage points from 21.1% in the year-earlier period

Full-year earnings forecast

Net Sales

¥7,383 million

Operating profit

¥1,511 million

Ordinary income

¥1,520 million

Profit attributable to owners of the parent

¥1,056 million

What the company explained in this material

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

Expansion of the Medical Business earnings base and contributions from newly acquired M&A subsidiaries
Increase in depreciation expense for MightyChecker Cloud X
Amortization of goodwill and temporary integration-related expenses associated with M&A
The earnings contribution from AI-driven development becoming production projects has been conservatively excluded
No material impact from geopolitical risks, including the situation in the Middle East, is anticipated

New initiatives

Making Radianceware a wholly owned subsidiary
Cross-selling across the Group's 3 companies and strengthening direct sales
Transitioning to an AI-driven development organization and establishing a 200-person AI-native engineering organization
Beginning to use ALSEA for a project with IBM Japan
Launching MightyChecker Cloud X
Expanding the insurance knowledge platform

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

Number of Mighty Series users23,157 facilities
Mighty Series retention rate99.6 %
AI-native engineers in operation70 people
Use of AI23 companies, 9 industries
Group direct-sales ratio4.8 %
LTV¥128 10,000
LTV/CAC ratio9.3 times

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

Mighty series users, LTV, CAC and the LTV/CAC ratio are disclosed

Segment results

Medical Business

Net Sales

¥653 million+45.8%

Operating profit

¥319 million+7.2%

AI Technology Strategic Business

Net Sales

¥1,090 million+5.2%

Operating profit

¥183 million+57.0%

Medium-term management plan targets

TargetCumulative M&A of 8–10 companies
Target fiscal year2030
Target200 AI-native engineers
Target fiscal yearFiscal year ending March 2027
TargetGroup direct-sales ratio of 35%
Target fiscal year2030
TargetLTV of ¥1.97 million
Target fiscal year2030
TargetLTV/CAC ratio of 14.2x
Target fiscal year2030

Financial targets

The company states that ROIC will be substantially above its cost of capital, but the numerical target and actual figure are not disclosed

Market Size / Share

Approximately 50% hospital share for the Mighty series
Approximately 18% clinic share for the Mighty series
Financial, manufacturing, healthcare and energy sectors are projected to account for 62% of the global generative AI market in 2030
The addressable market for MightyChecker Cloud X comprises approximately 3,000 hospitals in Japan, of which approximately 2,000 have not yet adopted the product

Number of employees

Approximately 70 AI-native engineers are in operation. The company aims to establish a 200-person organization this fiscal year. The number of engineers has decreased by approximately 80 from the previous fiscal year.

Annual Dividend

For the fiscal year ending March 2027, the company intends to maintain a stable dividend of ¥25 per share. A performance-linked dividend has not been determined at this time. The annual dividend amount has not been determined.

Payout ratio

A guideline of 50% or more over the medium to long term

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥1,744 million (YoY +17.5%)
Operating profit	¥410 million (YoY +30.9%)
Ordinary income	¥395 million (YoY +25.0%)
Net income	¥263 million (YoY -2.9%)
Operating profit margin	23.5%, up 2.4 percentage points from 21.1% in the year-earlier period
Full-year earnings forecast	Net Sales ¥7,383 million / Operating profit ¥1,511 million / Ordinary income ¥1,520 million / Profit attributable to owners of the parent ¥1,056 million
Segment results	Medical Business Net Sales ¥653 million (YoY +45.8%) / Operating profit ¥319 million (YoY +7.2%) / AI Technology Strategic Business Net Sales ¥1,090 million (YoY +5.2%) / Operating profit ¥183 million (YoY +57.0%)
Key KPIs	Indicator name Number of Mighty Series users / Value 23,157 facilities / Year on year against the same period last year Not disclosed, Indicator name Mighty Series retention rate / Value 99.6 % / Year on year against the same period last year Not disclosed, Indicator name AI-native engineers in operation / Value 70 people / Year on year against the same period last year Not disclosed, Indicator name Use of AI / Value 23 companies, 9 industries / Year on year against the same period last year Not disclosed, Indicator name Group direct-sales ratio / Value 4.8 % / Year on year against the same period last year Not disclosed, Indicator name LTV / Value ¥128 10,000 / Year on year against the same period last year Not disclosed, Indicator name LTV/CAC ratio / Value 9.3 times / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Mighty series users, LTV, CAC and the LTV/CAC ratio are disclosed
Number of employees	Approximately 70 AI-native engineers are in operation. The company aims to establish a 200-person organization this fiscal year. The number of engineers has decreased by approximately 80 from the previous fiscal year.
Assumptions Underlying the Business Outlook	Expansion of the Medical Business earnings base and contributions from newly acquired M&A subsidiaries, Increase in depreciation expense for MightyChecker Cloud X, Amortization of goodwill and temporary integration-related expenses associated with M&A, The earnings contribution from AI-driven development becoming production projects has been conservatively excluded, No material impact from geopolitical risks, including the situation in the Middle East, is anticipated
Medium-term management plan targets	Target Cumulative M&A of 8–10 companies / Target fiscal year 2030, Target 200 AI-native engineers / Target fiscal year Fiscal year ending March 2027, Target Group direct-sales ratio of 35% / Target fiscal year 2030, Target LTV of ¥1.97 million / Target fiscal year 2030, Target LTV/CAC ratio of 14.2x / Target fiscal year 2030
Financial targets	The company states that ROIC will be substantially above its cost of capital, but the numerical target and actual figure are not disclosed
Annual Dividend	For the fiscal year ending March 2027, the company intends to maintain a stable dividend of ¥25 per share. A performance-linked dividend has not been determined at this time. The annual dividend amount has not been determined.
Payout ratio	A guideline of 50% or more over the medium to long term
Market Size / Share	Approximately 50% hospital share for the Mighty series, Approximately 18% clinic share for the Mighty series, Financial, manufacturing, healthcare and energy sectors are projected to account for 62% of the global generative AI market in 2030, The addressable market for MightyChecker Cloud X comprises approximately 3,000 hospitals in Japan, of which approximately 2,000 have not yet adopted the product
New initiatives	Making Radianceware a wholly owned subsidiary, Cross-selling across the Group's 3 companies and strengthening direct sales, Transitioning to an AI-driven development organization and establishing a 200-person AI-native engineering organization, Beginning to use ALSEA for a project with IBM Japan, Launching MightyChecker Cloud X, Expanding the insurance knowledge platform

Items this document does not state (12)

Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.

In the Medical Business, the contribution from the acquisition of Radianceware and recurring revenue from the Mighty series expanded. Profitability in the AI Technology Strategic Business improved as a result of higher sales at the Philippine subsidiary, cost structure reforms and the establishment of an AI-driven development organization. The decline in net income was attributable to temporary special factors in tax-effect accounting related to undistributed earnings of overseas subsidiaries and M&A-related expenses.

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