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

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Mixed performance

Direction inferred from the company’s description.

Scale

Millions of yen (year-on-year increase in operating profit)

Wording

Conditional

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Contents of this document

Financial results presentationFiscal 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 Sales7,742 Millions of yen+7.2%

Operating profit428 Millions of yen+20.2%

Ordinary income439 Millions of yen+22.1%

Net income261 Millions of yen+2.1%

Gross Profit Margin21.7%

Operating profit margin5.5%

Results for the three months of the current quarterQuarterly revenue and operating profit trends are provided for each quarter of the fiscal year ended September 2026. In Q4 of the fiscal year ended September 2026, SI business revenue was ¥1,899 million, education services and security solutions business revenue was ¥181 million, and operating profit was ¥197 million.

Full-year earnings forecast

Net Sales

8,059 Millions of yen

Gross profit

1,757 Millions of yen

Operating profit

386 Millions of yen

Ordinary income

381 Millions of yen

Net income

256 Millions of yen

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

207.7 Millions of yen

Increase in fees paid

-65.4 Millions of yen

Increase in personnel expenses

-29 Millions of yen

Increase in depreciation and amortization expense

-14.3 Millions of yen

Increase in advisory fees

-13.4 Millions of yen

Increase in goodwill amortization

-8.8 Millions of yen

Other

-4.7 Millions of yen

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

The forecast assumes client companies' promotion of DX, full-scale use of AI, IT investment demand driven by investment in human capital, strong demand for DX and security, the effects of M&A and concentrated AI investment. Numerical assumptions are Not disclosed.

New initiatives

Focused investment in the AI sector and business structure reform
Establishment of a new AI Promotion Division
Establishment of the Quality Management Division
Standardization of AI-driven development processes
AI-powered new employee training service “ピジェトレ”
Provision of “Cornelius-EDR by Heimdal,” an integrated cybersecurity platform
Raising the target payout ratio to 35%–40% from the fiscal year ending September 2027

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

Direct-contract ratio32.6 %
Year on year against the same period last year+0.9pt
Number of business partners183 people
Year on year against the same period last year+3 people
Revenue from prime-contractor projects in the SI business2,071 Millions of yen
Prime-contractor ratio in the SI business29.8 %
Equity ratio50.1 %
ROE16.7 %

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Quarterly trends are provided for the number of engineers providing ongoing client support and average unit price (overall, intermediate to advanced with 5 or more years of experience, and entry-level with less than 5 years). Individual figures are as shown in the charts.

Segment results

System Integration Business

Net Sales

6,962 Millions of yen+7.7%

Profit

1,427 Millions of yen+14.3%

Education services and security solutions businesses

Net Sales

779 Millions of yen+2.6%

Profit

252 Millions of yen+12.9%

Medium-term management plan targets

Target fiscal yearFiscal year ending September 2030

Net SalesApproximately ¥10 billion

Operating profit margin10.0%

Annual Plans

Fiscal year ending September 2027

Net Sales8,059

Operating profit386

Operating profit margin4.8%

Fiscal year ending September 2028

Net Sales8,665

Operating profit524

Operating profit margin6.0%

Fiscal year ending September 2029

Net Sales9,420

Operating profit773

Operating profit margin8.2%

Fiscal year ending September 2030

Net Sales10,107

Operating profit1,008

Operating profit margin10.0%

Financial targets

ROE trends and a comparison with the 12.57% average for the TSE Standard information and communications sector are provided. Target values for ROE and other metrics are Not disclosed.

Number of stores and locations

Group locations are in Tokyo, Osaka, Nagoya, Yokohama, Shizuoka, Fukuoka and Yamaguchi. The Osaka office was expanded and the Tokyo office renovated. The number of openings and closures during the period is Not disclosed.

Number of employees

747 people as of October 2026, including contract employees

Hires during the period32 experienced hires and 28 new graduates, for 60 hires during the full year. The company is considering continuing hiring at a similar scale in the fiscal year ending September 2027.

Annual Dividend

Fiscal year ending September 2026¥28.00

Planned for the fiscal year ending September 2027¥31.00

Payout ratio

31.1% for the fiscal year ending September 2026 and 35.2% planned for the fiscal year ending September 2027. The target consolidated payout ratio will be raised to 35%–40%. DOE is 4.5% for the fiscal year ending September 2026 and 4.6% planned for the fiscal year ending September 2027.

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending September 2026
Net Sales	7,742 Millions of yen (YoY +7.2%)
Operating profit	428 Millions of yen (YoY +20.2%)
Ordinary income	439 Millions of yen (YoY +22.1%)
Net income	261 Millions of yen (YoY +2.1%)
Gross Profit Margin	21.7%
Operating profit margin	5.5%
Results for the three months of the current quarter	Quarterly revenue and operating profit trends are provided for each quarter of the fiscal year ended September 2026. In Q4 of the fiscal year ended September 2026, SI business revenue was ¥1,899 million, education services and security solutions business revenue was ¥181 million, and operating profit was ¥197 million.
Full-year earnings forecast	Net Sales 8,059 Millions of yen / Gross profit 1,757 Millions of yen / Operating profit 386 Millions of yen / Ordinary income 381 Millions of yen / Net income 256 Millions of yen
Segment results	System Integration Business Net Sales 6,962 Millions of yen (YoY +7.7%) / Profit 1,427 Millions of yen (YoY +14.3%) / Education services and security solutions businesses Net Sales 779 Millions of yen (YoY +2.6%) / Profit 252 Millions of yen (YoY +12.9%)
Breakdown of Factors Affecting the Change	Increase in gross profit 207.7 Millions of yen / Increase in fees paid -65.4 Millions of yen / Increase in personnel expenses -29 Millions of yen / Increase in depreciation and amortization expense -14.3 Millions of yen / Increase in advisory fees -13.4 Millions of yen / Increase in goodwill amortization -8.8 Millions of yen / Other -4.7 Millions of yen
Key KPIs	Direct-contract ratio 32.6 %, Number of business partners 183 people, Revenue from prime-contractor projects in the SI business 2,071 Millions of yen, Prime-contractor ratio in the SI business 29.8 %, Equity ratio 50.1 %, ROE 16.7 %
Unit price and quantity metrics	Quarterly trends are provided for the number of engineers providing ongoing client support and average unit price (overall, intermediate to advanced with 5 or more years of experience, and entry-level with less than 5 years). Individual figures are as shown in the charts.
Number of stores and locations	Group locations are in Tokyo, Osaka, Nagoya, Yokohama, Shizuoka, Fukuoka and Yamaguchi. The Osaka office was expanded and the Tokyo office renovated. The number of openings and closures during the period is Not disclosed.
Number of employees	747 people (as of October 2026, including contract employees)
Assumptions Underlying the Business Outlook	The forecast assumes client companies' promotion of DX, full-scale use of AI, IT investment demand driven by investment in human capital, strong demand for DX and security, the effects of M&A and concentrated AI investment. Numerical assumptions are Not disclosed.
Medium-term management plan targets	Target fiscal year Fiscal year ending September 2030 / Net Sales Approximately ¥10 billion / Operating profit margin 10.0% / Annual Plans Fiscal year ending September 2027 Net Sales 8,059 / Operating profit 386 / Operating profit margin 4.8% / Fiscal year ending September 2028 Net Sales 8,665 / Operating profit 524 / Operating profit margin 6.0% / Fiscal year ending September 2029 Net Sales 9,420 / Operating profit 773 / Operating profit margin 8.2% / Fiscal year ending September 2030 Net Sales 10,107 / Operating profit 1,008 / Operating profit margin 10.0%
Financial targets	ROE trends and a comparison with the 12.57% average for the TSE Standard information and communications sector are provided. Target values for ROE and other metrics are Not disclosed.
Annual Dividend	Fiscal year ending September 2026 ¥28.00 / Planned for the fiscal year ending September 2027 ¥31.00 / Interim and Year-End Breakdown Not disclosed
Payout ratio	31.1% for the fiscal year ending September 2026 and 35.2% planned for the fiscal year ending September 2027. The target consolidated payout ratio will be raised to 35%–40%. DOE is 4.5% for the fiscal year ending September 2026 and 4.6% planned for the fiscal year ending September 2027.
New initiatives	Focused investment in the AI sector and business structure reform, Establishment of a new AI Promotion Division, Establishment of the Quality Management Division, Standardization of AI-driven development processes, AI-powered new employee training service “ピジェトレ”, Provision of “Cornelius-EDR by Heimdal,” an integrated cybersecurity platform, Raising the target payout ratio to 35%–40% from the fiscal year ending September 2027

Items this document does not state (9)

Selling, general and administrative expensesProgress against full-year forecastSelf-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.

For the fiscal year ended September 2026, demand for IT investment by client companies, high engineer utilization, demand for security and reskilling, and improved profitability from an increase in prime-contractor projects contributed to higher revenue and profit. For the fiscal year ending September 2027, revenue is expected to increase due to demand for DX and security and the effects of M&A, while profit is expected to decline as upfront costs, including concentrated AI investment, are incorporated into the plan.

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