Supplementary Materials for the Earnings Presentation, Second Quarter of the Fiscal Year Ending March 2027 | IPS,Inc. (4390) timely disclosure

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Mixed performance

Direction inferred from the company’s description.

Scale

¥ million (year-on-year change in net sales)

Wording

Conditional

How definitive the wording is.

Contents of this document

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¥7,886 million+0.4%

Operating profit¥2,335 million-0.7%

Ordinary income¥2,169 million-6.3%

Net income¥1,517 million-5.6%

Full-year earnings forecast

Net Sales

¥20,080 million

Operating profit

¥6,100 million

Ordinary income

¥6,177 million

Profit attributable to owners of the parent

¥4,200 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。

Net Sales39.3%

Operating profit38.3%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue and operating profit are both progressing smoothly. Operating profit finished above the first-half plan.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

International telecommunications business+¥66 million
Domestic telecommunications business-¥141 million
Medical and healthcare business+¥58 million
Intersegment adjustments¥0 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

U.S. dollar exchange rate¥150
Philippine peso exchange rate¥2.6

New initiatives

Completion of the domestic public offering of shares
Study of an international submarine cable branch line and landing station project in Wakayama Prefecture
Monetisation of new services, including Gnani AI, in the domestic telecommunications business
Investment in digital infrastructure assets, including Candle and the eastern and western landing stations

Key KPIsA metric the company considers important as a management benchmark.

Cumulative contracts in the International Communications Business2,366 projects
Stock-based revenue as a percentage of international telecommunications revenue53 %
Estimated APAC share of global traffic49 %

Segment results

International telecommunications business
Net Sales¥5,924 million (YoY +1.1%)
Operating profit¥2,214 million (YoY +3.1%)
Domestic telecommunications business
Net Sales¥1,122 million (YoY -8.1%)
Operating profit¥89 million (YoY -61.1%)
Medical and healthcare business
Net Sales¥839 million (YoY +8.8%)
Operating profit¥30 million

Medium-term management plan targets

TargetOperating profit of approximately ¥10 billion
Target fiscal yearNext medium-term management plan period (fiscal years ending March 2028 to March 2030)

Market Size / Share

Estimated APAC share of global traffic49%

Capital expenditures

4,580 Million yen upper limit of the public offering, planned to be allocated to capital investment in the Wakayama project by the fiscal year ending March 2030

Annual Dividend

Annual dividend per share¥40

Interim¥20

End of period¥20

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥7,886 million (YoY +0.4%)
Operating profit	¥2,335 million (YoY -0.7%)
Ordinary income	¥2,169 million (YoY -6.3%)
Net income	¥1,517 million (YoY -5.6%)
Full-year earnings forecast	Net Sales ¥20,080 million / Operating profit ¥6,100 million / Ordinary income ¥6,177 million / Profit attributable to owners of the parent ¥4,200 million
Progress against full-year forecast	Net Sales 39.3% / Operating profit 38.3%
Self-assessment against the plan	Revenue and operating profit are both progressing smoothly. Operating profit finished above the first-half plan.
Segment results	Segment International telecommunications business / Net Sales ¥5,924 million (YoY +1.1%) / Operating profit ¥2,214 million (YoY +3.1%), Segment Domestic telecommunications business / Net Sales ¥1,122 million (YoY -8.1%) / Operating profit ¥89 million (YoY -61.1%), Segment Medical and healthcare business / Net Sales ¥839 million (YoY +8.8%) / Operating profit ¥30 million
Breakdown of Factors Affecting the Change	Factors International telecommunications business / Amount +¥66 million, Factors Domestic telecommunications business / Amount -¥141 million, Factors Medical and healthcare business / Amount +¥58 million, Factors Intersegment adjustments / Amount ¥0 million
Key KPIs	Indicator name Cumulative contracts in the International Communications Business / Value 2,366 projects / Year on year against the same period last year Not disclosed, Indicator name Stock-based revenue as a percentage of international telecommunications revenue / Value 53 % / Year on year against the same period last year Not disclosed, Indicator name Estimated APAC share of global traffic / Value 49 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Item U.S. dollar exchange rate / Value ¥150, Item Philippine peso exchange rate / Value ¥2.6
Medium-term management plan targets	Target Operating profit of approximately ¥10 billion / Target fiscal year Next medium-term management plan period (fiscal years ending March 2028 to March 2030)
Annual Dividend	Annual dividend per share ¥40 / Interim ¥20 / End of period ¥20
Capital expenditures	4,580 Million yen (upper limit of the public offering, planned to be allocated to capital investment in the Wakayama project by the fiscal year ending March 2030)
Market Size / Share	Estimated APAC share of global traffic 49%
New initiatives	Completion of the domestic public offering of shares, Study of an international submarine cable branch line and landing station project in Wakayama Prefecture, Monetisation of new services, including Gnani AI, in the domestic telecommunications business, Investment in digital infrastructure assets, including Candle and the eastern and western landing stations

Items this document does not state (13)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout ratioAcquisition of treasury sharesOrders 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 was affected by the large contract secured in the previous fiscal year (Carriers Carrier). Operating profit benefited from the regional rollout of PDSCN and improvements in the Medical & Healthcare business, but declined in the domestic telecommunications business due to the loss of high-margin projects, among other factors. Ordinary profit and net income declined as a result of a ¥100 million foreign exchange gain in the previous fiscal year becoming a ¥240 million foreign exchange loss in the current fiscal year.

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