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Presentation materials for financial results4345CTS Co.,Ltd.Information and Communications, Services and Others

Notice of the Release of Materials and Transcript for the "Fiscal Year Ending March 2026 Full-Year Results Briefing"

The company released materials explaining the full-year results for the fiscal year ended March 2026 and the earnings and dividend forecasts for the fiscal year ending March 2027, together with the Q&A. For the fiscal year ended March 2026, revenue and profit increased, with revenue, operating profit and operating margin reaching record highs.

Worth reading
61In focus
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
925
¥ million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, full year15 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,747 million+7.8%
Operating profit¥3,369 million+9.5%
Ordinary income¥3,734 million+18.1%
Net income¥2,686 million +22.7%net income attributable to owners of the parent
Selling, general and administrative expenses¥3,179 million
Gross Profit Margin51.4%, unchanged from the same period of the previous year
Operating profit margin26.4%, up 0.4 percentage points year on year
Full-year earnings forecast
Net Sales
¥13,500 million
Operating profit
¥3,530 million
Operating profit margin
26.1 %
Annual Dividend
¥30
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell short of the target in the previous medium-term management plan, while operating profit and operating margin achieved their targets. The DDS business and Other fell short of their targets, while the SMS business achieved its target.
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
The disclosure states that a transcript article was released, but the questions and answers in the Q&A are not disclosed.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Company-wide revenue increase¥472 million
  • Decline in gross margin¥0 million
  • Higher SG&A expenses (personnel expenses)¥-109 million
  • Higher SG&A expenses (other)¥-71 million
  • DDS business revenue increase¥351 million
  • Improved DDS business gross margin¥26 million
  • Higher DDS business SG&A expenses¥-119 million
  • SMS business revenue increase¥157 million
  • Improved SMS business gross margin¥5 million
  • Higher SMS business SG&A expenses¥-68 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The assumptions include SAP expansion and investment in personnel and systems. Figures for foreign exchange rates, raw material prices, interest rates and other factors are not disclosed.
New initiatives
  • Promote SAP adoption and implement AI at ファイルフォース株式会社 (SAP + AI)
  • Develop cloud-based video services for government agencies, and replace and expand simple river-monitoring cameras
  • Strategic investment to accelerate the evolution of SAP content
  • Progressive dividend policy during the medium-term management plan period
Key KPIsA metric the company considers important as a management benchmark.
  • Repeat rate (1Q)57.8 %
    Year on year against the same period last year+0.5%
  • Repeat rate (2Q)64.4 %
    Year on year against the same period last year+0.5%
  • Repeat rate (3Q)68.2 %
    Year on year against the same period last year+0.1%
  • Repeat rate (4Q)70 %
    Year on year against the same period last year-0.1%
  • Number of customer sites (versus Q1 of the fiscal year ended March 2020)170 %
  • ROA19.8 %
    Year on year against the same period last year+1.1%
  • ROE18.8 %
    Year on year against the same period last year+1.3%
Segment results
DDS
Net Sales
¥7,510 million+8.9%
Operating profit
¥2,403 million+12.1%
Operating profit margin
32 %
SMS
Net Sales
¥3,870 million+10.4%
Operating profit
¥751 million+14.5%
Operating profit margin
19.4 %
Other
Net Sales
¥1,367 million-7.0%
Operating profit
¥214 million-22.5%
Operating profit margin
15.7 %
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2029
Net Sales16,000
DDS business net sales10,600
SAP revenue5,500
Operating profit4,400
Operating profit marginMore than 25%
ROEMore than 20%
Financial targets
ROE targetMore than 20%
Actual ROE18.8%
Actual equity ratio76.2%
Market Size / Share
The target market is described as approximately 2,600 local general contractors and approximately 100 nationwide general contractors. Figures for market size and market share are not disclosed.
Number of stores and locations
End of period32 Branch
Capital expenditures
432 Millions of yen purchases of tangible and intangible fixed assets
Annual Dividend
Fiscal year ending March 2025
Interim¥12.5
End of period¥12.5
Annual¥25
Fiscal year ending March 2026
Interim¥14
End of period¥15
Annual¥29
Forecast for the fiscal year ending March 2027
Interim¥15
End of period¥15
Annual¥30
Payout ratio
Not disclosed (a progressive dividend policy is stated)
Acquisition of treasury shares
Acquisition amount¥46 million expenditure for the acquisition
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥12,747 million (YoY +7.8%)
Operating profit¥3,369 million (YoY +9.5%)
Ordinary income¥3,734 million (YoY +18.1%)
Net income¥2,686 million (net income attributable to owners of the parent) (YoY +22.7%)
Gross Profit Margin51.4%, unchanged from the same period of the previous year
Operating profit margin26.4%, up 0.4 percentage points year on year
Selling, general and administrative expenses¥3,179 million
Full-year earnings forecastNet Sales ¥13,500 million / Operating profit ¥3,530 million / Operating profit margin 26.1 % / Annual Dividend ¥30
Self-assessment against the planRevenue fell short of the target in the previous medium-term management plan, while operating profit and operating margin achieved their targets. The DDS business and Other fell short of their targets, while the SMS business achieved its target.
Segment resultsDDS Net Sales ¥7,510 million (YoY +8.9%) / Operating profit ¥2,403 million (YoY +12.1%) / Operating profit margin 32 % / SMS Net Sales ¥3,870 million (YoY +10.4%) / Operating profit ¥751 million (YoY +14.5%) / Operating profit margin 19.4 % / Other Net Sales ¥1,367 million (YoY -7.0%) / Operating profit ¥214 million (YoY -22.5%) / Operating profit margin 15.7 %
Breakdown of Factors Affecting the ChangeFactors Company-wide revenue increase / Amount ¥472 million, Factors Decline in gross margin / Amount ¥0 million, Factors Higher SG&A expenses (personnel expenses) / Amount ¥-109 million, Factors Higher SG&A expenses (other) / Amount ¥-71 million, Factors DDS business revenue increase / Amount ¥351 million, Factors Improved DDS business gross margin / Amount ¥26 million, Factors Higher DDS business SG&A expenses / Amount ¥-119 million, Factors SMS business revenue increase / Amount ¥157 million, Factors Improved SMS business gross margin / Amount ¥5 million, Factors Higher SMS business SG&A expenses / Amount ¥-68 million
Key KPIsIndicator name Repeat rate (1Q) / Value 57.8 % / Year on year against the same period last year 0.5 %, Indicator name Repeat rate (2Q) / Value 64.4 % / Year on year against the same period last year 0.5 %, Indicator name Repeat rate (3Q) / Value 68.2 % / Year on year against the same period last year 0.1 %, Indicator name Repeat rate (4Q) / Value 70 % / Year on year against the same period last year -0.1 %, Indicator name Number of customer sites (versus Q1 of the fiscal year ended March 2020) / Value 170 % / Year on year against the same period last year Not disclosed, Indicator name ROA / Value 19.8 % / Year on year against the same period last year 1.1 %, Indicator name ROE / Value 18.8 % / Year on year against the same period last year 1.3 %
Number of stores and locationsEnd of period 32 Branch / Number of store openings and closures during the period Not disclosed
Assumptions Underlying the Business OutlookThe assumptions include SAP expansion and investment in personnel and systems. Figures for foreign exchange rates, raw material prices, interest rates and other factors are not disclosed.
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2029 / Net Sales 16,000 / DDS business net sales 10,600 / SAP revenue 5,500 / Operating profit 4,400 / Operating profit margin More than 25% / ROE More than 20%
Financial targetsROE target More than 20% / Actual ROE 18.8% / Actual equity ratio 76.2%
Annual DividendFiscal year ending March 2025 Interim ¥12.5 / End of period ¥12.5 / Annual ¥25 / Fiscal year ending March 2026 Interim ¥14 / End of period ¥15 / Annual ¥29 / Forecast for the fiscal year ending March 2027 Interim ¥15 / End of period ¥15 / Annual ¥30
Payout ratioNot disclosed (a progressive dividend policy is stated)
Acquisition of treasury sharesAcquisition amount ¥46 million (expenditure for the acquisition) / Number of Shares Not disclosed / Period Not disclosed
Capital expenditures432 Millions of yen (purchases of tangible and intangible fixed assets)
Market Size / ShareThe target market is described as approximately 2,600 local general contractors and approximately 100 nationwide general contractors. Figures for market size and market share are not disclosed.
Key points of the Q&AThe disclosure states that a transcript article was released, but the questions and answers in the Q&A are not disclosed.
New initiativesPromote SAP adoption and implement AI at ファイルフォース株式会社 (SAP + AI), Develop cloud-based video services for government agencies, and replace and expand simple river-monitoring cameras, Strategic investment to accelerate the evolution of SAP content, Progressive dividend policy during the medium-term management plan period
Items this document does not state (6)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlog

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 company cited an increase in orders, mainly from existing customers, due to its focus on sales activities for the DDS business, higher revenue from rental and subscription services centered on SAP, and higher sales and rental revenue in the SMS business. It also stated that SG&A expenses increased due to improvements in employee compensation, including changes to the salary structure, as well as marketing and other sales activities.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice of the Release of Materials and Transcript for the "Fiscal Year Ending March 2026 Full-Year Results Briefing" | CTS Co.,Ltd. (4345) timely disclosure | Komori