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Financial results presentation4492GENETEC CORPORATIONInformation and Communications, Services and Others

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue, operating profit and net income exceeded the previous fiscal year, driven by growth in the SS and ES businesses and the effect of newly consolidated subsidiaries. Revenue and profits reached record highs. For the fiscal year ending March 2027, revenue is expected to increase, but profit is forecast to decline due to the change in FlexSim's sales model and upfront investments.

Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
35.2
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥10,983 million+35.2%
Operating profit¥820 million+18.3%
Ordinary income¥824 million+20.7%
Net income¥510 million+21.2%
Gross Profit Margin37.8%
Operating profit margin7.5%
Results for the three months of the current quarter
Fourth quarter of the fiscal year ended March 2026
Net Sales
¥3,136 million
Operating profit
¥488 million
Operating profit margin
15.6%
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
¥11,500 million
Operating profit
¥700 million
Ordinary income
¥659 million
Net income
¥365 million
Operating profit margin
6.1%
Ordinary income margin
5.7%
Net profit margin
3.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Net income exceeded the earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
  • SS business¥2,562 million
  • ES business¥156 million
  • GPS Business¥-134 million
  • New consolidation of フラッシュシステムズ・モアソンジャパン¥2,562 million
  • Decrease in adjustments and intercompany revenue¥3 million
Operating profit
  • SS business¥185 million
  • ES business¥27 million
  • GPS Business¥-93 million
  • New consolidation of フラッシュシステムズ・モアソンジャパン¥63 million
  • Corporate overhead¥-53 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Year-end concentration of revenue
    DetailsRevenue tends to be concentrated at the end of the fiscal year due to customer demand
  • Deployment of new graduates
    DetailsExpected to become productive from the second half
  • Production adjustments by major customers
    DetailsTemporary production adjustments are expected
  • FlexSim sales model
    DetailsFrom April 2026 onward, sales will be consolidated into subscription licenses
New initiatives
  • Launch of AssessA SCAN, a business assessment service for PLM implementation
  • Launch of ココダヨ Life, an app for disaster preparedness, crime prevention, safety monitoring and multilingual support
  • Consolidation of FlexSim license sales into the subscription version
  • Change in the target dividend payout ratio to 40% for the fiscal years ending March 2027 through March 2029
  • From the first quarter of the fiscal year ending March 2027, the GPS business will be combined with adjustments and reported as the Other segment
Key KPIsA metric the company considers important as a management benchmark.
  • SS business segment profit margin22.1%
    Year on year against the same period last yearDown from 26.5%
  • ES business segment profit margin12.1%
    Year on year against the same period last yearDown from 15.1%
  • GPS business segment profit margin6.0%
    Year on year against the same period last yearDown from 22.0%
  • Record highQuarterly segment revenue for the fiscal year ended March 2026
Segment results
  • SS business
    Net Sales¥6,798 million (YoY +42.8%)
    Profit¥1,504 million (YoY +19.5%)
  • ES business
    Net Sales¥3,821 million (YoY +33.1%)
    Profit¥462 million (YoY +6.3%)
  • GPS Business
    Net Sales¥399 million (YoY -25.2%)
    Profit¥24 million (YoY -79.5%)
  • Adjustments
    Net Sales¥-37 million
    Profit¥-1,170 million
Medium-term management plan targets
The medium-term management plan covers the fiscal years ending March 2027 through March 2029 and calls for the implementation of business growth and management infrastructure strategies. Specific targets are not disclosed.
Number of employees
684 people
As of1 April 2026
Capital expenditures
120 Equivalent to ¥ million ¥65 million in purchases of property, plant and equipment and ¥55 million in purchases of intangible assets
Annual Dividend
Fiscal year ending March 2026
Annual¥22 per share
Interim¥8 per share
End of period¥14 per share
Forecast for the fiscal year ending March 2027
Annual¥12.5 per share
Interim¥5 per share
End of period¥7.5 per share
Payout ratio
Fiscal year ending March 2026Targeting a consolidated dividend payout ratio of approximately 50%
Fiscal years ending March 2027 through March 2029Target a consolidated payout ratio of 40%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥10,983 million (YoY +35.2%)
Operating profit¥820 million (YoY +18.3%)
Ordinary income¥824 million (YoY +20.7%)
Net income¥510 million (YoY +21.2%)
Gross Profit Margin37.8%
Operating profit margin7.5%
Results for the three months of the current quarterSubject Fourth quarter of the fiscal year ended March 2026 / Net Sales ¥3,136 million / Operating profit ¥488 million / Operating profit margin 15.6%
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Net Sales ¥11,500 million / Operating profit ¥700 million / Ordinary income ¥659 million / Net income ¥365 million / Operating profit margin 6.1% / Ordinary income margin 5.7% / Net profit margin 3.2%
Self-assessment against the planNet income exceeded the earnings forecast
Segment resultsSegment SS business / Net Sales ¥6,798 million (YoY +42.8%) / Profit ¥1,504 million (YoY +19.5%), Segment ES business / Net Sales ¥3,821 million (YoY +33.1%) / Profit ¥462 million (YoY +6.3%), Segment GPS Business / Net Sales ¥399 million (YoY -25.2%) / Profit ¥24 million (YoY -79.5%), Segment Adjustments / Net Sales ¥-37 million / Profit ¥-1,170 million
Breakdown of Factors Affecting the ChangeNet Sales Factors SS business / Amount ¥2,562 million, Factors ES business / Amount ¥156 million, Factors GPS Business / Amount ¥-134 million, Factors New consolidation of フラッシュシステムズ・モアソンジャパン / Amount ¥2,562 million, Factors Decrease in adjustments and intercompany revenue / Amount ¥3 million / Operating profit Factors SS business / Amount ¥185 million, Factors ES business / Amount ¥27 million, Factors GPS Business / Amount ¥-93 million, Factors New consolidation of フラッシュシステムズ・モアソンジャパン / Amount ¥63 million, Factors Corporate overhead / Amount ¥-53 million
Key KPIsIndicator name SS business segment profit margin / Value 22.1% / Year on year against the same period last year Down from 26.5%, Indicator name ES business segment profit margin / Value 12.1% / Year on year against the same period last year Down from 15.1%, Indicator name GPS business segment profit margin / Value 6.0% / Year on year against the same period last year Down from 22.0%, Indicator name Record high / Value Quarterly segment revenue for the fiscal year ended March 2026 / Year on year against the same period last year Not disclosed
Number of employees684 people
Assumptions Underlying the Business OutlookItem Year-end concentration of revenue / Details Revenue tends to be concentrated at the end of the fiscal year due to customer demand, Item Deployment of new graduates / Details Expected to become productive from the second half, Item Production adjustments by major customers / Details Temporary production adjustments are expected, Item FlexSim sales model / Details From April 2026 onward, sales will be consolidated into subscription licenses
Medium-term management plan targetsThe medium-term management plan covers the fiscal years ending March 2027 through March 2029 and calls for the implementation of business growth and management infrastructure strategies. Specific targets are not disclosed.
Annual DividendFiscal year ending March 2026 Annual ¥22 per share / Interim ¥8 per share / End of period ¥14 per share / Forecast for the fiscal year ending March 2027 Annual ¥12.5 per share / Interim ¥5 per share / End of period ¥7.5 per share
Payout ratioFiscal year ending March 2026 Targeting a consolidated dividend payout ratio of approximately 50% / Fiscal years ending March 2027 through March 2029 Target a consolidated payout ratio of 40%
Capital expenditures120 Equivalent to ¥ million (¥65 million in purchases of property, plant and equipment and ¥55 million in purchases of intangible assets)
New initiativesLaunch of AssessA SCAN, a business assessment service for PLM implementation, Launch of ココダヨ Life, an app for disaster preparedness, crime prevention, safety monitoring and multilingual support, Consolidation of FlexSim license sales into the subscription version, Change in the target dividend payout ratio to 40% for the fiscal years ending March 2027 through March 2029, From the first quarter of the fiscal year ending March 2027, the GPS business will be combined with adjustments and reported as the Other segment
Items this document does not state (10)
Selling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesOrders 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 March 2026, growth in the SS and ES businesses resulting from priority initiatives in the second half, the effect of newly consolidated subsidiaries, and higher revenue from software and systems development contributed to results. For the fiscal year ending March 2027, profit is expected to decline due to temporary production adjustments by major customers, the transition of FlexSim to subscription licenses exclusively, and upfront investments in stronger sales activities, human resources and research and development.

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Earnings Presentation Materials for the Fiscal Year Ending March 2026 | GENETEC CORPORATION (4492) timely disclosure | Komori