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Financial results presentation4012AXIS CO.,LTD.Information and Communications, Services and Others

Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending December 2026

In the second quarter of the fiscal year ending December 2026, revenue and operating profit increased, driven by growth in projects such as public and social infrastructure projects and expansion in high-value-added areas. Progress against the full-year forecast was 47.7% for revenue and 57.6% for operating profit.

Worth reading
78Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
15.1
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,505 million+15.1%
Operating profit¥575 million+36.4%
Ordinary income¥582 million+33.6%
Net income¥376 million+32.9%
Gross Profit Margin
Rate27.2%
Year on year against the same period last year+1.5p
Operating profit margin
Rate12.8%
Year on year against the same period last year+2.0p
Results for the three months of the current quarter
Net Sales
¥2,256 million
Operating profit
¥237 million
Full-year earnings forecast
Net Sales
¥9,444 million
Gross profit
¥2,381 million
Operating profit
¥1,000 million
Ordinary income
¥1,005 million
Net income for the current fiscal year
¥700 million
Earnings per share
¥162.61
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。
Consolidated revenue47.7%
Consolidated operating profit57.6%
Consolidated ordinary income58.0%
Consolidated interim net income53.7%
Systems Services business revenue47.4%
IT Services Business revenue52.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performing well / progressing smoothly / generally progressing smoothly / focusing efforts
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of higher revenue¥384 million
  • Outsourcing cost factor¥18 million
  • Personnel expense factor¥-198 million
  • Other cost factors¥-51 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Number of SI projects380 Engagements
  • Average revenue per SI project¥23,607 thousand
  • Revenue per SI employee¥16,048 thousand
  • Number of KITARO contracts10,800 Units
New initiatives
  • Launch of “KITARO × Dashcam” sales for vehicle transport operators
  • Release of a dashcam for the vehicle transport industry
  • Begin providing the KITARO service for vessels
  • Winning orders for AI-driven development projects
  • Preparation to provide services using the AI platform “Communication Insight”
  • Direction of AI development combining a local LLM with RAG
Key KPIsA metric the company considers important as a management benchmark.
  • Order backlog¥2,166 million
    Year on year against the same period last year+18.3%
  • Revenue per employee¥3,668 thousand
  • Number of KITARO contracts9,694 Units
    Year on year against the same period last yearSteady growth
  • Share of high-value-added areas35.85%
    Year on year against the same period last year+1.29pt
  • Number of qualification holders269 people
    Year on year against the same period last year+14.0%
  • Engineers participating in AI-related projects168 or more
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of SI projects380 Engagements
  • Average revenue per SI project¥23,607 thousand
  • Revenue per employee¥16,048 thousand
  • Number of KITARO contracts10,800 Units
Segment results
  • Systems Services business
    Net Sales¥4,255 million
    Year on year against the same period last year+14.8%
  • IT Services Business
    Net Sales¥249 million
    Year on year against the same period last year+20.7%
Medium-term management plan targets
  • Revenue mix of high-value-added areas
    Target fiscal yearFiscal 2029
    Target valueIncrease in the revenue mix of high-value-added areas
  • Number of qualification holders
    Target fiscal yearFiscal 2029
    Target value570 or more
    Actual results269
Orders received and order backlog
Order backlog
¥2,166 million
Number of employees
Engineers participating in AI-related projects168 or more
Number of qualification holders269
Annual Dividend
Annual dividend per share¥57
Payout ratio
35.1%
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥4,505 million (YoY +15.1%)
Operating profit¥575 million (YoY +36.4%)
Ordinary income¥582 million (YoY +33.6%)
Net income¥376 million (YoY +32.9%)
Gross Profit MarginRate 27.2% / Year on year against the same period last year +1.5p
Operating profit marginRate 12.8% / Year on year against the same period last year +2.0p
Results for the three months of the current quarterNet Sales ¥2,256 million / Operating profit ¥237 million
Full-year earnings forecastNet Sales ¥9,444 million / Gross profit ¥2,381 million / Operating profit ¥1,000 million / Ordinary income ¥1,005 million / Net income for the current fiscal year ¥700 million / Earnings per share ¥162.61
Progress against full-year forecastConsolidated revenue 47.7% / Consolidated operating profit 57.6% / Consolidated ordinary income 58.0% / Consolidated interim net income 53.7% / Systems Services business revenue 47.4% / IT Services Business revenue 52.7%
Self-assessment against the planPerforming well / progressing smoothly / generally progressing smoothly / focusing efforts
Segment resultsSegment Systems Services business / Net Sales ¥4,255 million / Year on year against the same period last year +14.8%, Segment IT Services Business / Net Sales ¥249 million / Year on year against the same period last year +20.7%
Breakdown of Factors Affecting the ChangeFactors Impact of higher revenue / Amount ¥384 million, Factors Outsourcing cost factor / Amount ¥18 million, Factors Personnel expense factor / Amount ¥-198 million, Factors Other cost factors / Amount ¥-51 million
Key KPIsIndicator name Order backlog / Value ¥2,166 million / Year on year against the same period last year +18.3%, Indicator name Revenue per employee / Value ¥3,668 thousand / Year on year against the same period last year Not disclosed, Indicator name Number of KITARO contracts / Value 9,694 Units / Year on year against the same period last year Steady growth, Indicator name Share of high-value-added areas / Value 35.85% / Year on year against the same period last year +1.29pt, Indicator name Number of qualification holders / Value 269 people / Year on year against the same period last year +14.0%, Indicator name Engineers participating in AI-related projects / Value 168 or more / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of SI projects / Value 380 Engagements, Indicator name Average revenue per SI project / Value ¥23,607 thousand, Indicator name Revenue per employee / Value ¥16,048 thousand, Indicator name Number of KITARO contracts / Value 10,800 Units
Number of employeesEngineers participating in AI-related projects 168 or more / Number of qualification holders 269
Assumptions Underlying the Business OutlookItem Number of SI projects / Value 380 Engagements, Item Average revenue per SI project / Value ¥23,607 thousand, Item Revenue per SI employee / Value ¥16,048 thousand, Item Number of KITARO contracts / Value 10,800 Units
Medium-term management plan targetsItem Revenue mix of high-value-added areas / Target fiscal year Fiscal 2029 / Target value Increase in the revenue mix of high-value-added areas, Item Number of qualification holders / Target fiscal year Fiscal 2029 / Target value 570 or more / Actual results 269
Annual DividendAnnual dividend per share ¥57 / Interim Not disclosed / End of period Not disclosed
Payout ratio35.1%
Orders received and order backlogOrder backlog ¥2,166 million
New initiativesLaunch of “KITARO × Dashcam” sales for vehicle transport operators, Release of a dashcam for the vehicle transport industry, Begin providing the KITARO service for vessels, Winning orders for AI-driven development projects, Preparation to provide services using the AI platform “Communication Insight”, Direction of AI development combining a local LLM with RAG
Items this document does not state (8)
Selling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookFinancial 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.

The accumulation of projects, particularly in the 3 core industries, increased orders, expansion in high-value-added areas, and efficient use of partners were cited as factors behind the increases in revenue and profit. Personnel expenses increased as the number of engineers grew.

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Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending December 2026 | AXIS CO.,LTD. (4012) timely disclosure | Komori