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Financial results presentation4345CTS Co.,Ltd.Information and Communications, Services and Others

Presentation Materials for the Second-Quarter Results for the Fiscal Year Ending March 2027

For the six months ended September 2026, revenue, operating profit and net income exceeded the year-earlier period, driven by higher SAP sales and growth in high-value-added services. The full-year earnings forecast remains unchanged, and the company believes it is progressing broadly as planned.

Worth reading
69In 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
22
Millions of yen (year-on-year increase in operating profit)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,205 million+0.3%
Operating profit¥1,545 million+1.5%
Ordinary income¥1,787 million+4.3%
Net income¥1,238 million+0.9%
Selling, general and administrative expenses¥1,663 million
Gross Profit Margin
Rate51.7
Year-on-year change (points)1.5
Operating profit margin
Rate24.9
Year-on-year change (points)0.3
Results for the three months of the current quarter
Net Sales
¥3,243 million-0.4%
Operating profit
¥862 million+1.9%
Operating profit margin
26.6 %
Year-on-year change (points)0.6
Full-year earnings forecast
Net Sales
¥13,500 million
Operating profit
¥3,530 million
Ordinary income
¥3,890 million
Profit attributable to owners of the parent
¥2,720 million
DDS business net sales
¥8,370 million
SAP revenue
¥3,470 million
SMS business net sales
¥3,750 million
Other net sales
¥1,380 million
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。
DDS business net sales45.3
SAP revenue44.4
Other DDS Revenue45.9
SMS business net sales46.4
Other net sales48.9
Net Sales46
Operating profit43.8
Ordinary income45.9
Profit attributable to owners of the parent45.5
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated results for the six months ended September 2026 progressed broadly as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profit
Revenue increase38
Gross margin improvement64
Increase in SG&A_Personnel Expenses-64
Increase in SG&A_Other-14
DDS business operating profit
Revenue increase105
Decline in gross margin-10
Increase in SG&A expenses-79
SMS business operating profit
Decline in Revenue-66
Gross margin improvement78
Increase in SG&A expenses-4
New initiatives
  • Implementation of a construction-industry-specific AI agent in Fileforce for Construction
  • Launch of SAP's new SAP Mind service
  • Expansion of SAP's B2B transactions
  • Adoption of a progressive dividend policy for the fiscal years ending March 2027 through March 2029
Key KPIsA metric the company considers important as a management benchmark.
  • SAP revenue¥1,542 million
    Year on year against the same period last year+18.5%
  • SAP's share of the DDS business40.7 %
    Year on year against the same period last year+4.6%
    Year-on-year comparison unitpt
  • Number of transaction sites176 Index versus Q1 of the fiscal year ended March 2020
Unit price and quantity metricsThese figures show sales broken down by price and volume.
NWC Implementation SitesDisplay the trend in a numerical chart
SAP Unit Price per SiteDisplay the trend in a numerical chart
Segment results
DDS
Net Sales
¥3,792 million+5.1%
Operating profit
¥1,114 million+1.3%
SMS
Net Sales
¥1,738 million-8.6%
Operating profit
¥322 million+2.3%
Other
Net Sales
¥674 million-0.2%
Operating profit
¥109 million+0.8%
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2029
Company-wide revenue
¥16,000 million
Consolidated operating profit
¥4,400 million
Operating profit margin
27.5 %
DDS business net sales
¥10,600 million
SAP revenue
¥5,500 million
ROE
20 Over %
Financial targets
ROE
Target value>20%
Equity ratio
Actual value75.3 %
Annual Dividend
Forecast for the fiscal year ending March 2027
Interim15
End of period15
Total30
Acquisition of treasury shares
Acquisition amount
¥277 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥6,205 million (YoY +0.3%)
Operating profit¥1,545 million (YoY +1.5%)
Ordinary income¥1,787 million (YoY +4.3%)
Net income¥1,238 million (YoY +0.9%)
Gross Profit MarginRate 51.7 / Year-on-year change (points) 1.5
Operating profit marginRate 24.9 / Year-on-year change (points) 0.3
Selling, general and administrative expenses¥1,663 million
Results for the three months of the current quarterNet Sales ¥3,243 million (YoY -0.4%) / Operating profit ¥862 million (YoY +1.9%) / Operating profit margin 26.6 %
Full-year earnings forecastNet Sales ¥13,500 million / Operating profit ¥3,530 million / Ordinary income ¥3,890 million / Profit attributable to owners of the parent ¥2,720 million / DDS business net sales ¥8,370 million / SAP revenue ¥3,470 million / SMS business net sales ¥3,750 million / Other net sales ¥1,380 million
Progress against full-year forecastDDS business net sales 45.3 / SAP revenue 44.4 / Other DDS Revenue 45.9 / SMS business net sales 46.4 / Other net sales 48.9 / Net Sales 46 / Operating profit 43.8 / Ordinary income 45.9 / Profit attributable to owners of the parent 45.5
Self-assessment against the planConsolidated results for the six months ended September 2026 progressed broadly as planned
Segment resultsDDS Net Sales ¥3,792 million (YoY +5.1%) / Operating profit ¥1,114 million (YoY +1.3%) / SMS Net Sales ¥1,738 million (YoY -8.6%) / Operating profit ¥322 million (YoY +2.3%) / Other Net Sales ¥674 million (YoY -0.2%) / Operating profit ¥109 million (YoY +0.8%)
Breakdown of Factors Affecting the ChangeConsolidated operating profit Revenue increase 38 / Gross margin improvement 64 / Increase in SG&A_Personnel Expenses -64 / Increase in SG&A_Other -14 / DDS business operating profit Revenue increase 105 / Decline in gross margin -10 / Increase in SG&A expenses -79 / SMS business operating profit Decline in Revenue -66 / Gross margin improvement 78 / Increase in SG&A expenses -4
Key KPIsIndicator name SAP revenue / Value ¥1,542 million / Year on year against the same period last year ¥18.5 million, Indicator name SAP's share of the DDS business / Value 40.7 % / Year on year against the same period last year 4.6 % / Year-on-year comparison unit pt, Indicator name Number of transaction sites / Value 176 Index versus Q1 of the fiscal year ended March 2020 / Year on year against the same period last year Not disclosed
Unit price and quantity metricsNWC Implementation Sites Display the trend in a numerical chart / SAP Unit Price per Site Display the trend in a numerical chart
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2029 / Company-wide revenue ¥16,000 million / Consolidated operating profit ¥4,400 million / Operating profit margin 27.5 % / DDS business net sales ¥10,600 million / SAP revenue ¥5,500 million / ROE 20 Over %
Financial targetsROE Target value >20% / Equity ratio Actual value 75.3 %
Annual DividendForecast for the fiscal year ending March 2027 Interim 15 / End of period 15 / Total 30
Acquisition of treasury sharesAcquisition amount ¥277 million / Period Not disclosed / Number of shares acquired Not disclosed
New initiativesImplementation of a construction-industry-specific AI agent in Fileforce for Construction, Launch of SAP's new SAP Mind service, Expansion of SAP's B2B transactions, Adoption of a progressive dividend policy for the fiscal years ending March 2027 through March 2029
Items this document does not state (9)
Number of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioCapital expendituresOrders received and order backlogMarket 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.

Orders from existing customers, particularly for SAP, remained solid, and revenue from rental and subscription services increased. Gross profit margin also improved, while personnel expenses related to improved compensation, including base-pay increases, relocation costs for existing sites, and listing administration costs increased.

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Presentation Materials for the Second-Quarter Results for the Fiscal Year Ending March 2027 | CTS Co.,Ltd. (4345) timely disclosure | Komori