Notice of the Online Release of the Financial Results Presentation Video and Script (Second Quarter of the Fiscal Year Ending March 2027) | Kudan Inc. (4425) timely disclosure

Worth reading

54Recurring

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

1.7

¥100 million (improvement in operating loss)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 20275 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥2.9 100 million cumulative second quarter

Operating profit¥-2.5 100 million cumulative second quarter

Ordinary income¥-3.2 100 million cumulative second quarter

Net income¥-3.2 100 million cumulative second quarter

Full-year earnings forecast

Net Sales

¥10.3 100 million

Operating profit

¥-3.4 100 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 Sales28%

What the company explained in this material

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

Improvement in operating income¥170 million

Reduction in ordinary profit due to foreign exchange impact¥150 million

Expected Q3 recognition of European R&D subsidy¥50 million

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

Year-end concentration of salesAssumption that revenue tends to be weighted toward the end of the fiscal year

New initiatives

Launch data technology for physical AI
Launch of disaster prevention solutions based on Kudan PRISM
Joint development of PRISM e-Road with ネクスコ東日本エンジニアリング and plans for external sales targeted for the next fiscal year
Development of AI robot applications in the energy and nuclear sectors with IFE
Collaboration with MRDVS on forklift automation and safety

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

Revenue per unit of operating expenses0.54 Times
Year on year against the same period last yearImproved from 0.49 in the previous fiscal year
Software as a percentage of gross profit85 %
Year on year against the same period last yearYear-on-year figure not disclosed
Software sales revenueUp 35% year on year
Year on year against the same period last yearUp 35%
Digital twin customer retention rate95 %
Digital twin customersUp 150% year on year
Year on year against the same period last yearUp 150%
Number of countries of operation10 countries
Development efficiency of mobile robot technologyApproximately 80 times at maximum

Market Size / Share

Domestic disaster prevention-related market
ScaleApproximately ¥250.0 billion
As ofFiscal 2031
Global disaster prevention-related market
ScaleApproximately ¥29 trillion
As of2030
Overall physical AI market
ScaleApproximately ¥20 trillion
As ofBy 2035
Data construction and simulation market
ScaleApproximately ¥2.5 trillion

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥2.9 100 million (cumulative second quarter)
Operating profit	¥-2.5 100 million (cumulative second quarter)
Ordinary income	¥-3.2 100 million (cumulative second quarter)
Net income	¥-3.2 100 million (cumulative second quarter)
Full-year earnings forecast	Net Sales ¥10.3 100 million / Operating profit ¥-3.4 100 million / Ordinary income Not disclosed / Net income Not disclosed
Progress against full-year forecast	Net Sales 28%
Breakdown of Factors Affecting the Change	Improvement in operating income ¥170 million / Reduction in ordinary profit due to foreign exchange impact ¥150 million / Expected Q3 recognition of European R&D subsidy ¥50 million
Key KPIs	Indicator name Revenue per unit of operating expenses / Value 0.54 Times / Year on year against the same period last year Improved from 0.49 in the previous fiscal year, Indicator name Software as a percentage of gross profit / Value 85 % / Year on year against the same period last year Year-on-year figure not disclosed, Indicator name Software sales revenue / Value Up 35% year on year / Year on year against the same period last year Up 35%, Indicator name Digital twin customer retention rate / Value 95 % / Year on year against the same period last year Not disclosed, Indicator name Digital twin customers / Value Up 150% year on year / Year on year against the same period last year Up 150%, Indicator name Number of countries of operation / Value 10 countries / Year on year against the same period last year Not disclosed, Indicator name Development efficiency of mobile robot technology / Value Approximately 80 times at maximum / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Year-end concentration of sales Assumption that revenue tends to be weighted toward the end of the fiscal year
Market Size / Share	Subject Domestic disaster prevention-related market / Scale Approximately ¥250.0 billion / As of Fiscal 2031, Subject Global disaster prevention-related market / Scale Approximately ¥29 trillion / As of 2030, Subject Overall physical AI market / Scale Approximately ¥20 trillion / As of By 2035, Subject Data construction and simulation market / Scale Approximately ¥2.5 trillion / As of Not disclosed
New initiatives	Launch data technology for physical AI, Launch of disaster prevention solutions based on Kudan PRISM, Joint development of PRISM e-Road with ネクスコ東日本エンジニアリング and plans for external sales targeted for the next fiscal year, Development of AI robot applications in the energy and nuclear sectors with IFE, Collaboration with MRDVS on forklift automation and safety

Items this document does not state (18)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders 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.

The company said it kept its full-year forecast unchanged on the assumption that revenue would be weighted toward the end of the fiscal year. It attributed the improvement in the operating deficit to the containment of operating expenses, a focus on higher-margin software rather than low-margin hardware, and increased software sales. It also said that foreign exchange effects from the valuation of intercompany receivables and payables reduced ordinary profit by ¥150 million year on year.

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.