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Presentation materials for financial results4421D.I.System Co.,Ltd.Information and Communications, Services and Others

Second-Quarter Financial Results Presentation for the Fiscal Year Ending September 2026

In the second quarter of the fiscal year ending September 2026, revenue increased 6.1% year on year, supported by demand for IT investment. However, operating income and all profit lines below it declined due to growth investments, including M&A, human capital, the head office relocation and the expansion of the Osaka office. The full-year earnings forecast was unchanged.

Worth reading
80Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
6.1
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending September 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,603 million+6.1%
Operating profit¥160 million-25.3%
Ordinary income¥167 million-22.4%
Net income¥104 million -29.4%interim net income attributable to owners of the parent
Gross Profit Margin21.3 %
Operating profit margin4.5 %
Results for the three months of the current quarterThe quarterly trend graph shows revenue and operating income for the second quarter of the fiscal year ending September 2026: system integration revenue of ¥1,750 million, education services and security solutions revenue of ¥105 million, and operating income of ¥122 million.
Full-year earnings forecast
Net Sales
¥7,952 million
Gross profit
¥1,657 million
Operating profit
¥381 million
Ordinary income
¥380 million
Net income
¥256 million net income attributable to owners of the parent
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 Sales45.3 %
Gross profit46.4 %
Operating profit42.1 %
Ordinary income43.9 %
Net income40.8 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit¥16.9 million
  • Increase in personnel expenses¥-30.6 million
  • Increase in fees paid¥-11.3 million
  • Increase in advisory fees¥-6.8 million
  • Increase in rent and lease expenses¥-6.1 million
  • Increase in consumables expenses¥-4.7 million
  • Increase in training expenses¥-2.3 million
  • Higher Advertising Expenses¥-1.9 million
  • Increase in other SG&A¥-7.1 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company expects customer companies' investment in IT, IT talent development, security and the use of AI technologies to continue increasing. Numerical assumptions were Not disclosed.
New initiatives
  • Investment in developing an AI-powered education platform
  • Investment in expanding the functionality of security products and developing new services
  • Expansion of the Osaka office
  • Improvement of the working environment at the Tokyo office
  • Investment in additional functionality for core systems
  • Expansion into new technology fields, including generative AI
  • Cornelius-EDR by Heimdal, launched in December 2025
Key KPIsA metric the company considers important as a management benchmark.
  • Prime contractor ratio (company-wide)30.6 %
    Year on year against the same period last year+3.8pt
  • Number of business partners185 People
    Year on year against the same period last year+4 people
  • Equity ratio48.6 %
  • ROE16.7 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of onsite engineersShown in graph
  • Average billing rate (overall)Shown in graph
    Year on year against the same period last yearTrending higher
Segment results
  • Systems Integration business
    Net Sales3,411
    Revenue unit¥ million
    Revenue YoY (%)5.7
    Segment profit726
    Profit unit¥ million
    Profit yoy_pct1.4
  • Education services and security solutions business
    Net Sales192
    Revenue unit¥ million
    Revenue YoY (%)14.7
    Segment profit43
    Profit unit¥ million
    Profit yoy_pct20
Medium-term management plan targets
Plan periodFiscal year ending September 2024 to fiscal year ending September 2026
FY2026 target
Net Sales¥7,952 million, %
Operating profit¥381 million, %
Operating profit margin¥4.8 million, %
Vision2028
Target fiscal yearFiscal year ending September 2028
Net Sales¥10,000 million
Operating profit¥1,000 million
Financial targets
ROEThe presentation includes a comparison with the industry average, but the financial target was Not disclosed.
Equity ratio
Actual results48.6 %
Number of stores and locations
Group locations are in Tokyo, Osaka, Nagoya, Yokohama, Shizuoka, Fukuoka and Yamaguchi. The number of openings and closures during the period was Not disclosed.
Number of employees
766 people as of April 2026, including contract employees
Hiring planThe company hired 28 new graduates in April 2026. New graduate and mid-career hiring is expected to continue at a similar scale thereafter.
Annual Dividend
Annual dividend per share¥28
Payout ratio
31.8 %
DOE4.6
DOE_unit%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending September 2026
Net Sales¥3,603 million (YoY +6.1%)
Operating profit¥160 million (YoY -25.3%)
Ordinary income¥167 million (YoY -22.4%)
Net income¥104 million (interim net income attributable to owners of the parent) (YoY -29.4%)
Gross Profit Margin21.3 %
Operating profit margin4.5 %
Results for the three months of the current quarterThe quarterly trend graph shows revenue and operating income for the second quarter of the fiscal year ending September 2026: system integration revenue of ¥1,750 million, education services and security solutions revenue of ¥105 million, and operating income of ¥122 million.
Full-year earnings forecastNet Sales ¥7,952 million / Gross profit ¥1,657 million / Operating profit ¥381 million / Ordinary income ¥380 million / Net income ¥256 million (net income attributable to owners of the parent)
Progress against full-year forecastNet Sales 45.3 % / Gross profit 46.4 % / Operating profit 42.1 % / Ordinary income 43.9 % / Net income 40.8 %
Segment resultsSegment Systems Integration business / Net Sales 3,411 / Revenue unit ¥ million / Revenue YoY (%) 5.7 / Segment profit 726 / Profit unit ¥ million / Profit yoy_pct 1.4, Segment Education services and security solutions business / Net Sales 192 / Revenue unit ¥ million / Revenue YoY (%) 14.7 / Segment profit 43 / Profit unit ¥ million / Profit yoy_pct 20
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount ¥16.9 million, Factors Increase in personnel expenses / Amount ¥-30.6 million, Factors Increase in fees paid / Amount ¥-11.3 million, Factors Increase in advisory fees / Amount ¥-6.8 million, Factors Increase in rent and lease expenses / Amount ¥-6.1 million, Factors Increase in consumables expenses / Amount ¥-4.7 million, Factors Increase in training expenses / Amount ¥-2.3 million, Factors Higher Advertising Expenses / Amount ¥-1.9 million, Factors Increase in other SG&A / Amount ¥-7.1 million
Key KPIsIndicator name Prime contractor ratio (company-wide) / Value 30.6 % / Year on year against the same period last year +3.8pt, Indicator name Number of business partners / Value 185 People / Year on year against the same period last year +4 people, Indicator name Equity ratio / Value 48.6 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 16.7 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of onsite engineers / Value Shown in graph / Year on year against the same period last year Not disclosed, Indicator name Average billing rate (overall) / Value Shown in graph / Year on year against the same period last year Trending higher
Number of stores and locationsGroup locations are in Tokyo, Osaka, Nagoya, Yokohama, Shizuoka, Fukuoka and Yamaguchi. The number of openings and closures during the period was Not disclosed.
Number of employees766 people (as of April 2026, including contract employees)
Assumptions Underlying the Business OutlookThe company expects customer companies' investment in IT, IT talent development, security and the use of AI technologies to continue increasing. Numerical assumptions were Not disclosed.
Medium-term management plan targetsPlan period Fiscal year ending September 2024 to fiscal year ending September 2026 / FY2026 target Net Sales ¥7,952 million, % / Operating profit ¥381 million, % / Operating profit margin ¥4.8 million, % / Vision2028 Target fiscal year Fiscal year ending September 2028 / Net Sales ¥10,000 million / Operating profit ¥1,000 million
Financial targetsROE The presentation includes a comparison with the industry average, but the financial target was Not disclosed. / Equity ratio Actual results 48.6 %
Annual DividendAnnual dividend per share ¥28 / Interim Not disclosed / End of period Not disclosed
Payout ratio31.8 %
New initiativesInvestment in developing an AI-powered education platform, Investment in expanding the functionality of security products and developing new services, Expansion of the Osaka office, Improvement of the working environment at the Tokyo office, Investment in additional functionality for core systems, Expansion into new technology fields, including generative AI, Cornelius-EDR by Heimdal, launched in December 2025
Items this document does not state (8)
Selling, general and administrative expensesSelf-assessment against the planRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.

Revenue increased on the back of demand for IT investment by customer companies, firm demand for security and reskilling, and high engineer utilization. Profit declined due to growth investments, including human capital investment, head office relocation-related expenses, the expansion of the Osaka office, internal IT infrastructure, and M&A-related expenses.

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.
Second-Quarter Financial Results Presentation for the Fiscal Year Ending September 2026 | D.I.System Co.,Ltd. (4421) timely disclosure | Komori