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Results presentation4323Japan System Techniques Co.,Ltd.Information and Communications, Services and Others

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue increased 2.7% year on year, while operating profit declined 24.3%. Although the results were affected by costs related to the relocation of the Tokyo head office and unprofitable projects, the full-year earnings forecast and annual dividend of ¥50 remain unchanged, and the company will continue share buybacks.

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Contents of this document

Results presentationSecond quarter of FY2027/314 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,337 million+2.7%
Operating profit¥1,282 million-24.3%
Ordinary income¥1,358 million-21.0%
Net income¥745 million-32.6%
Gross Profit Margin26.7 %
Operating profit margin8.4 %
Selling, general and administrative expenses¥2,804 million
Results for the three months of the current quarter
Net Sales
¥7,900 million+0.1%
Operating profit
¥892 million-25.6%
Ordinary income
¥956 million-21.0%
Net income
¥632 million-19.4%
Operating profit margin
11.3 %
yoy_change_pt-3.9
Full-year earnings forecast
Net Sales
¥34,300 million
Operating profit
¥4,150 million
Ordinary income
¥4,200 million
Profit attributable to owners of the parent
¥2,950 million
EPS
119.34 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 Sales44.7 %
Operating profit30.9 %
Ordinary income32.4 %
Net income for the current fiscal year25.3 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Largely in line with the initial plan / 7 of 8 items were in line with or ahead of plan. Operating profit progress was below plan in some areas.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue growth effect¥117 million
  • Profitability Improvement¥251 million
  • Other SG&A expenses¥11 million
  • Labor costs¥-310 million
  • 2 unprofitable projects¥-80 million
  • Costs related to the relocation of the Tokyo head office¥-399 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Opportunities for vendor selection for new GAKUEN projects in the second half
    FigureApproximately 1.9 times the year-earlier level
  • Healthcare order backlog
    Figure¥2,449 million (+22.4% year on year)
  • Ongoing costs related to the relocation of the Tokyo head office
    Figure¥223 million
New initiatives
  • Organizational restructuring around industry and solution lines
  • Launch of an educational IR service and acquisition of new customers
  • 1 partnership agreement in the healthcare sector
  • Launch of a special project led by AI engineers
  • Pilot project for an AI-driven development process
  • Development of company-wide common development platforms and rules
  • Embedding generative AI functionality into products
  • Implementation of a treasury share repurchase
Key KPIsA metric the company considers important as a management benchmark.
  • GAKUEN implementation school share27.9 %
  • JMICS participating insurer share26.3 %
  • BankNeo implementing financial institution share13.9 %
  • Order backlog at the end of September¥12,559 million
    Year on year against the same period last year+0.1%
  • Equity ratio67.8 %
    Year on year against the same period last year+1.6%
Segment results
  • DX＆SI
    Net Sales¥9,788 million
    Year-on-year change in net sales3.7
    Operating profit¥1,737 million
    Change in operating profit¥71 million
  • Package
    Net Sales¥3,204 million
    Year-on-year change in net sales-2.9
    Operating profit¥857 million
    Change in operating profit¥-263 million
  • Healthcare Big Data
    Net Sales¥1,410 million
    Year-on-year change in net sales13
    Operating profit¥147 million
    Change in operating profit¥-46 million
  • Global
    Net Sales¥933 million
    Year-on-year change in net sales-0.8
    Operating profit¥-109 million
    Change in operating profit¥110 million
  • Corporate Expenses
    Operating profit¥-1,351 million
    Change in operating profit¥-283 million
Medium-term management plan targets
Fiscal year ending March 2027
Net Sales¥34,300 million
Operating profit¥4,150 million
Operating profit margin12.1%
EBITDA¥4,450 million
ROE17.2%
EPS¥119.34
Fiscal year ending March 2029
Net Sales¥45,000 million
Operating profit¥5,900 million
Operating profit margin13.1%
EBITDA6,200 million yen
ROE20.0%
EPS¥165
Financial targets
ROE
Target for the fiscal year ending March 202717.2%
Target for the fiscal year ending March 202920.0%
Equity ratio
First-half results for the fiscal year ending March 202767.8%
Market Size / Share
Education
TAMApproximately ¥60.3 billion
SAMApproximately ¥24.4 billion
Customer share27.3% → FY2028 target: 35.0%
Health and medical care
TAMApproximately ¥77.3 billion
SAMApproximately ¥43.3 billion
Customer share26.3% → FY2028 target: 35.0%
Domestic financial IT marketForecast at ¥3.8956 trillion in 2028
Orders received and order backlog
Order backlog¥12,559 million (at the end of September 2026)
Year on year against the same period last year+0.1%
Number of employees
Number of EmployeesConsolidated: 1,683 / Non-consolidated: 1,202 (as of 31 March 2026)
Change during the periodAdded 17 management positions (organizational support positions)
Annual Dividend
Annual dividend amount¥50
Interim¥15
End of period¥35 (difference from the full-year forecast)
Payout ratio
Forecast41.9 %
Medium-term management plan policy50 %
Total payout ratio50% or more
DOEForecast: 7.2%; target level for the fiscal year ending March 2029: 10.0%
Acquisition of treasury shares
Share buyback authorization amount¥2.5 billion
Number of shares under the buyback program2,000,000 shares
Period1 July 2026 to 25 June 2027
Actuals at end-September357,700 shares, ¥720 million
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredSecond quarter of FY2027/3
Net Sales¥15,337 million (YoY +2.7%)
Operating profit¥1,282 million (YoY -24.3%)
Ordinary income¥1,358 million (YoY -21.0%)
Net income¥745 million (YoY -32.6%)
Gross Profit Margin26.7 %
Operating profit margin8.4 %
Selling, general and administrative expenses¥2,804 million
Results for the three months of the current quarterNet Sales ¥7,900 million (YoY +0.1%) / Operating profit ¥892 million (YoY -25.6%) / Ordinary income ¥956 million (YoY -21.0%) / Net income ¥632 million (YoY -19.4%) / Operating profit margin 11.3 %
Full-year earnings forecastNet Sales ¥34,300 million / Operating profit ¥4,150 million / Ordinary income ¥4,200 million / Profit attributable to owners of the parent ¥2,950 million / EPS 119.34 Yen
Progress against full-year forecastNet Sales 44.7 % / Operating profit 30.9 % / Ordinary income 32.4 % / Net income for the current fiscal year 25.3 %
Self-assessment against the planLargely in line with the initial plan / 7 of 8 items were in line with or ahead of plan. Operating profit progress was below plan in some areas.
Segment resultsSegment DX＆SI / Net Sales ¥9,788 million / Year-on-year change in net sales 3.7 / Operating profit ¥1,737 million / Change in operating profit ¥71 million, Segment Package / Net Sales ¥3,204 million / Year-on-year change in net sales -2.9 / Operating profit ¥857 million / Change in operating profit ¥-263 million, Segment Healthcare Big Data / Net Sales ¥1,410 million / Year-on-year change in net sales 13 / Operating profit ¥147 million / Change in operating profit ¥-46 million, Segment Global / Net Sales ¥933 million / Year-on-year change in net sales -0.8 / Operating profit ¥-109 million / Change in operating profit ¥110 million, Segment Corporate Expenses / Operating profit ¥-1,351 million / Change in operating profit ¥-283 million
Breakdown of Factors Affecting the ChangeFactors Revenue growth effect / Amount ¥117 million, Factors Profitability Improvement / Amount ¥251 million, Factors Other SG&A expenses / Amount ¥11 million, Factors Labor costs / Amount ¥-310 million, Factors 2 unprofitable projects / Amount ¥-80 million, Factors Costs related to the relocation of the Tokyo head office / Amount ¥-399 million
Key KPIsIndicator name GAKUEN implementation school share / Value 27.9 % / Year on year against the same period last year Not disclosed, Indicator name JMICS participating insurer share / Value 26.3 % / Year on year against the same period last year Not disclosed, Indicator name BankNeo implementing financial institution share / Value 13.9 % / Year on year against the same period last year Not disclosed, Indicator name Order backlog at the end of September / Value ¥12,559 million / Year on year against the same period last year ¥0.1 million, Indicator name Equity ratio / Value 67.8 % / Year on year against the same period last year 1.6 %
Number of employeesNumber of Employees Consolidated: 1,683 / Non-consolidated: 1,202 (as of 31 March 2026) / Change during the period Added 17 management positions (organizational support positions)
Assumptions Underlying the Business OutlookItem Opportunities for vendor selection for new GAKUEN projects in the second half / Figure Approximately 1.9 times the year-earlier level, Item Healthcare order backlog / Figure ¥2,449 million (+22.4% year on year), Item Ongoing costs related to the relocation of the Tokyo head office / Figure ¥223 million
Medium-term management plan targetsFiscal year ending March 2027 Net Sales ¥34,300 million / Operating profit ¥4,150 million / Operating profit margin 12.1% / EBITDA ¥4,450 million / ROE 17.2% / EPS ¥119.34 / Fiscal year ending March 2029 Net Sales ¥45,000 million / Operating profit ¥5,900 million / Operating profit margin 13.1% / EBITDA 6,200 million yen / ROE 20.0% / EPS ¥165
Financial targetsROE Target for the fiscal year ending March 2027 17.2% / Target for the fiscal year ending March 2029 20.0% / Equity ratio First-half results for the fiscal year ending March 2027 67.8%
Annual DividendAnnual dividend amount ¥50 / Interim ¥15 / End of period ¥35 (difference from the full-year forecast)
Payout ratioForecast 41.9 % / Medium-term management plan policy 50 % / Total payout ratio 50% or more / DOE Forecast: 7.2%; target level for the fiscal year ending March 2029: 10.0%
Acquisition of treasury sharesShare buyback authorization amount ¥2.5 billion / Number of shares under the buyback program 2,000,000 shares / Period 1 July 2026 to 25 June 2027 / Actuals at end-September 357,700 shares, ¥720 million
Orders received and order backlogOrder backlog ¥12,559 million (at the end of September 2026) / Year on year against the same period last year 0.1
Market Size / ShareEducation TAM Approximately ¥60.3 billion / SAM Approximately ¥24.4 billion / Customer share 27.3% → FY2028 target: 35.0% / Health and medical care TAM Approximately ¥77.3 billion / SAM Approximately ¥43.3 billion / Customer share 26.3% → FY2028 target: 35.0% / Domestic financial IT market Forecast at ¥3.8956 trillion in 2028
New initiativesOrganizational restructuring around industry and solution lines, Launch of an educational IR service and acquisition of new customers, 1 partnership agreement in the healthcare sector, Launch of a special project led by AI engineers, Pilot project for an AI-driven development process, Development of company-wide common development platforms and rules, Embedding generative AI functionality into products, Implementation of a treasury share repurchase
Items this document does not state (5)
Unit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookCapital expendituresKey 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.

Costs related to the relocation of the Tokyo head office, 2 unprofitable projects, the concentration in the second half of vendor selection opportunities for new GAKUEN projects, and higher labor costs included in cost of sales were cited as factors behind the decline in profit.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Japan System Techniques Co.,Ltd. (4323) timely disclosure | Komori