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Financial Results Presentation3988SYS Holdings Co.,Ltd.Information and Communications, Services and Others

Materials for the Presentation on Results for the Second Quarter (Interim Period) of the Fiscal Year Ending July 2026

For the six months ended in the second quarter of the fiscal year ending July 2026, revenue increased 11.5% year on year, driven by growth in existing businesses and contributions from M&A. Operating income and net income declined, however, due to an increase in employee departures, loss-making projects and other factors. Both revenue and profit fell short of the initial forecasts, and the Company is implementing measures for the second half, including recruitment and training, project management, and strengthened control over group companies.

Worth reading
86Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
788
Millions of yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter (interim period) of the fiscal year ending July 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales7,616 Millions of yen+11.5%
Operating profit322 Millions of yen-10.0%
Net income188 Millions of yen-9.4%
Operating profit margin
Rate4.2%
Year-on-year change (points)Down from 5.3% in the same period of the previous year
Results for the three months of the current quarter
Net Sales
3,858 Millions of yen
Operating profit
226 Millions of yen
Operating profit margin5.9%
Interim net income attributable to owners of the parent
130 Millions of yen
Full-year earnings forecast
Net Sales
16,850 Millions of yen
Operating profit
1,044 Millions of yen
Ordinary income
1,018 Millions of yen
Profit attributable to owners of the parent
604 Millions of yen
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。
Net Sales45.2%
Operating profit30.9%
Profit attributable to owners of the parent31.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Although below the initial forecast, performance in the second quarter is challenging compared with previous years
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Growth of Existing Businesses
  • Contribution from 3 M&A transactions completed in the previous fiscal yearApproximately ¥500 million
  • Net decline of 31 employeesLoss of approximately ¥26 million versus the forecast
  • 9 loss-making projectsLoss of approximately ¥40 million
  • Poor performance at 5 operating companiesDown ¥121 million year on year and down ¥64 million versus budget
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Growth of Existing Businesses
    Figures14%
  • Expected full-year year-on-year revenue growth for Global Manufacturing Solutions
    Figures15.4%
  • Expected full-year year-on-year revenue growth for Social Information Infrastructure and Solutions
    Figures22.2%
  • Expected full-year year-on-year revenue growth for Mobile and Solutions
    Figures36.0%
  • Expected year-on-year revenue growth for automotive ECU-related business
    Figures5.2%
  • Expected year-on-year revenue growth for transport equipment, machine tools and related businesses
    Figures28.9%
  • Expected year-on-year revenue growth for power and financial services-related businesses
    Figures5.3%
New initiatives
  • Acquisition of all shares of 株式会社サンライジングコーポレーション and making it a subsidiary
  • Group reorganization through the absorption-type merger of 3 small operating companies and the conversion of 2 companies into sub-subsidiaries
  • AI-based performance analysis and early detection of deviations from budget
  • Recruitment reforms using AI in the initial screening process
  • Skills transition toward project management and upstream processes
  • Relocation of the Chubu office
Key KPIsA metric the company considers important as a management benchmark.
  • Number of foreign-national employees192 People
  • Percentage of foreign-national employees12 %
  • Employee engagement score38.7 Score
    Year on year against the same period last yearDown
  • Average overtime hours14.7 Time
  • Paid leave utilization rate70.1 %
  • Percentage of female employees25.7 %
  • Female directors1 People
  • Total number of business unit heads46 People
Medium-term management plan targets
Plan nameSYSTarget2028
Target fiscal yearFiscal year ending July 2028
Net Sales
22,000 Millions of yen
Operating profit
1,500 Millions of yen
Ordinary income
1,480 Millions of yen
Profit attributable to owners of the parent
920 Millions of yen
ROE17.3%
Financial targets
ROE
Target for the fiscal year ending July 202615.1%
Target for the fiscal year ending July 202715.5%
Target for the fiscal year ending July 202817.3%
Market Size / Share
Global SCADA marketExpected to grow at a compound annual growth rate of 8.4% through 2030
Information services industry revenueUp 6.9% year on year in December 2025
Number of employees
Number of EmployeesNet decline of 31 employees
Change during the periodNet decline of 31 employees
Hiring planRecruitment plan of 202 people for the fiscal year ending July 2026
Annual Dividend
Forecast for the fiscal year ending July 2026¥8.00 per share
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending July 2026
Net Sales7,616 Millions of yen (YoY +11.5%)
Operating profit322 Millions of yen (YoY -10.0%)
Net income188 Millions of yen (YoY -9.4%)
Operating profit marginRate 4.2% / Year-on-year change (points) Down from 5.3% in the same period of the previous year
Results for the three months of the current quarterNet Sales 3,858 Millions of yen / Operating profit 226 Millions of yen / Operating profit margin 5.9% / Interim net income attributable to owners of the parent 130 Millions of yen
Full-year earnings forecastNet Sales 16,850 Millions of yen / Operating profit 1,044 Millions of yen / Ordinary income 1,018 Millions of yen / Profit attributable to owners of the parent 604 Millions of yen
Progress against full-year forecastNet Sales 45.2% / Operating profit 30.9% / Profit attributable to owners of the parent 31.1%
Self-assessment against the planAlthough below the initial forecast, performance in the second quarter is challenging compared with previous years
Breakdown of Factors Affecting the ChangeFactors Growth of Existing Businesses / Amount Not disclosed, Factors Contribution from 3 M&A transactions completed in the previous fiscal year / Amount Approximately ¥500 million, Factors Net decline of 31 employees / Amount Loss of approximately ¥26 million versus the forecast, Factors 9 loss-making projects / Amount Loss of approximately ¥40 million, Factors Poor performance at 5 operating companies / Amount Down ¥121 million year on year and down ¥64 million versus budget
Key KPIsIndicator name Number of foreign-national employees / Value 192 People / Year on year against the same period last year Not disclosed, Indicator name Percentage of foreign-national employees / Value 12 % / Year on year against the same period last year Not disclosed, Indicator name Employee engagement score / Value 38.7 Score / Year on year against the same period last year Down, Indicator name Average overtime hours / Value 14.7 Time / Year on year against the same period last year Not disclosed, Indicator name Paid leave utilization rate / Value 70.1 % / Year on year against the same period last year Not disclosed, Indicator name Percentage of female employees / Value 25.7 % / Year on year against the same period last year Not disclosed, Indicator name Female directors / Value 1 People / Year on year against the same period last year Not disclosed, Indicator name Total number of business unit heads / Value 46 People / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees Net decline of 31 employees / Change during the period Net decline of 31 employees / Hiring plan Recruitment plan of 202 people for the fiscal year ending July 2026
Assumptions Underlying the Business OutlookItem Growth of Existing Businesses / Figures 14%, Item Expected full-year year-on-year revenue growth for Global Manufacturing Solutions / Figures 15.4%, Item Expected full-year year-on-year revenue growth for Social Information Infrastructure and Solutions / Figures 22.2%, Item Expected full-year year-on-year revenue growth for Mobile and Solutions / Figures 36.0%, Item Expected year-on-year revenue growth for automotive ECU-related business / Figures 5.2%, Item Expected year-on-year revenue growth for transport equipment, machine tools and related businesses / Figures 28.9%, Item Expected year-on-year revenue growth for power and financial services-related businesses / Figures 5.3%
Medium-term management plan targetsPlan name SYSTarget2028 / Target fiscal year Fiscal year ending July 2028 / Net Sales 22,000 Millions of yen / Operating profit 1,500 Millions of yen / Ordinary income 1,480 Millions of yen / Profit attributable to owners of the parent 920 Millions of yen / ROE 17.3%
Financial targetsROE Target for the fiscal year ending July 2026 15.1% / Target for the fiscal year ending July 2027 15.5% / Target for the fiscal year ending July 2028 17.3%
Annual DividendForecast for the fiscal year ending July 2026 ¥8.00 per share / Interim and Year-End Breakdown Not disclosed
Market Size / ShareGlobal SCADA market Expected to grow at a compound annual growth rate of 8.4% through 2030 / Information services industry revenue Up 6.9% year on year in December 2025
New initiativesAcquisition of all shares of 株式会社サンライジングコーポレーション and making it a subsidiary, Group reorganization through the absorption-type merger of 3 small operating companies and the conversion of 2 companies into sub-subsidiaries, AI-based performance analysis and early detection of deviations from budget, Recruitment reforms using AI in the initial screening process, Skills transition toward project management and upstream processes, Relocation of the Chubu office
Items this document does not state (12)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesSegment resultsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioAcquisition 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.

Revenue increased due to growth in existing businesses, a contribution of approximately ¥500 million from 3 M&A transactions completed by the end of the previous fiscal year, and continued demand for DX. Operating income was affected by a net decline of 31 employees, losses of approximately ¥40 million from 9 loss-making projects, poor performance at 5 operating companies, a shortfall against the business partner procurement plan, and difficulties in the early deployment of foreign engineers.

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Materials for the Presentation on Results for the Second Quarter (Interim Period) of the Fiscal Year Ending July 2026 | SYS Holdings Co.,Ltd. (3988) timely disclosure | Komori