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Presentation materials for financial results4761SAKURA KCS CorporationInformation and Communications, Services and Others

Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 2027

First-quarter net sales and gross profit increased, driven by growth in financial-related projects and other business, while operating profit, ordinary profit and net income fell below the year-earlier levels because growth investments were implemented as planned. The full-year earnings forecasts and annual dividend forecast remain unchanged from the figures announced on 13 May.

Worth reading
63In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-69
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst 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¥5,175 million+4.3%
Operating profit¥-4 million
Ordinary income¥103 million
Net income¥71 million profit attributable to owners of the parent
Gross Profit Margin26.3%
Selling, general and administrative expenses¥1,365 million
Results for the three months of the current quarterNet sales ¥5,175 million, gross profit ¥1,361 million, SG&A expenses ¥1,365 million, operating loss ¥4 million, ordinary profit ¥103 million, quarterly net income attributable to owners of the parent ¥71 million
Full-year earnings forecast
Net Sales
¥25,700 million
Operating profit
¥1,420 million
Ordinary income
¥1,620 million
Net income
¥1,230 million net income attributable to owners of the parent
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Implemented as planned / progressing as planned for the current fiscal year
New initiatives
  • Establishment of the CAXO (Chief AI Transformation Officer) position and the AX Promotion Department
  • Establishment of a cross-business-unit AI CoE
  • Proof-of-concept testing for a system development process conducted in collaboration with AI
  • Holding an AI Prompt Contest
  • Launch of use of the online learning service for engineers, Sawary Park
  • Introduction of a career design leave of absence program
  • Abolition of the executive retirement benefit program and introduction of an executive share-based compensation program
Key KPIsA metric the company considers important as a management benchmark.
  • PBR0.8x
    Year on year against the same period last year+0.1x vs. 31 March 2026
  • Share price (closing price)¥1,399
    Year on year against the same period last year+¥120 vs. 31 March 2026
  • ROE6.0% (FY2025 actual)
    Year on year against the same period last yearImproved from 4.3% in FY2022
  • Total number of entries in the AI Prompt Contest1,149 Engagements
Segment results
  • Financial-related
    Net Sales¥2,064 million
    Year-on-year change in revenue+¥402 million
    Segment profit¥507 million
    Year-on-year change in profit+¥172 million
    Operating margin24.6%
  • Public-related
    Net Sales¥1,246 million
    Year-on-year change in revenue+¥9 million
    Segment profit¥67 million
    Year-on-year change in profit+¥1 million
    Operating margin5.4%
  • Industrial-related
    Net Sales¥1,864 million
    Year-on-year change in revenue-¥198 million
    Segment profit¥280 million
    Year-on-year change in profit-¥110 million
    Operating margin15.0%
Medium-term management plan targets
Net Sales
280 Hundreds of millions of yen
Target fiscal yearFY2028
Operating profit
19 Hundreds of millions of yen
Target fiscal yearFY2028
Operating profit margin
6.8 %
Target fiscal yearFY2028
ROE
6.4 %
Target fiscal yearFY2028
PBR
1 times
Target fiscal yearFY2028
Three-year strategic growth investment
100 Hundreds of millions of yen
Period CoveredFiscal years 2026-2028
Financial targets
ROE of 8% or higher (FY2031), PBR of 1x or higher (FY2028), DOE of 3.5-4.0% (medium-term management plan period)
Capital expenditures
¥40 100 million medium-term management plan period
Annual Dividend
¥62 per share
BreakdownInterim and year-end breakdown not disclosed
Payout ratio
not disclosed (FY2025 actual of 50.3% shown as a prior-year result)
Acquisition of treasury shares
Treasury share acquisitions and disposals mentioned. The acquisition amount, number of shares and period are not disclosed
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥5,175 million (YoY +4.3%)
Operating profit¥-4 million
Ordinary income¥103 million
Net income¥71 million (profit attributable to owners of the parent)
Gross Profit Margin26.3%
Selling, general and administrative expenses¥1,365 million
Results for the three months of the current quarterNet sales ¥5,175 million, gross profit ¥1,361 million, SG&A expenses ¥1,365 million, operating loss ¥4 million, ordinary profit ¥103 million, quarterly net income attributable to owners of the parent ¥71 million
Full-year earnings forecastNet Sales ¥25,700 million / Operating profit ¥1,420 million / Ordinary income ¥1,620 million / Net income ¥1,230 million (net income attributable to owners of the parent)
Self-assessment against the planImplemented as planned / progressing as planned for the current fiscal year
Segment resultsSegment Financial-related / Net Sales ¥2,064 million / Year-on-year change in revenue +¥402 million / Segment profit ¥507 million / Year-on-year change in profit +¥172 million / Operating margin 24.6%, Segment Public-related / Net Sales ¥1,246 million / Year-on-year change in revenue +¥9 million / Segment profit ¥67 million / Year-on-year change in profit +¥1 million / Operating margin 5.4%, Segment Industrial-related / Net Sales ¥1,864 million / Year-on-year change in revenue -¥198 million / Segment profit ¥280 million / Year-on-year change in profit -¥110 million / Operating margin 15.0%
Key KPIsIndicator PBR / Value 0.8x / Year on year against the same period last year +0.1x vs. 31 March 2026, Indicator Share price (closing price) / Value ¥1,399 / Year on year against the same period last year +¥120 vs. 31 March 2026, Indicator ROE / Value 6.0% (FY2025 actual) / Year on year against the same period last year Improved from 4.3% in FY2022, Indicator Total number of entries in the AI Prompt Contest / Value 1,149 Engagements / Year on year against the same period last year Not disclosed
Medium-term management plan targetsNet Sales 280 Hundreds of millions of yen / Operating profit 19 Hundreds of millions of yen / Operating profit margin 6.8 % / ROE 6.4 % / PBR 1 times / Three-year strategic growth investment 100 Hundreds of millions of yen
Financial targetsROE of 8% or higher (FY2031), PBR of 1x or higher (FY2028), DOE of 3.5-4.0% (medium-term management plan period)
Annual Dividend¥62 per share
Payout rationot disclosed (FY2025 actual of 50.3% shown as a prior-year result)
Acquisition of treasury sharesTreasury share acquisitions and disposals mentioned. The acquisition amount, number of shares and period are not disclosed
Capital expenditures¥40 100 million (medium-term management plan period)
New initiativesEstablishment of the CAXO (Chief AI Transformation Officer) position and the AX Promotion Department, Establishment of a cross-business-unit AI CoE, Proof-of-concept testing for a system development process conducted in collaboration with AI, Holding an AI Prompt Contest, Launch of use of the online learning service for engineers, Sawary Park, Introduction of a career design leave of absence program, Abolition of the executive retirement benefit program and introduction of an executive share-based compensation program
Items this document does not state (11)
Operating profit marginProgress against full-year forecastBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookOrders 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.

Net sales increased mainly because system development projects grew for the SMBC Group, municipal information system standardization projects, and SAP business projects. Gross profit increased as the company focused on highly profitable businesses, but first-quarter investment outlays preceded the resulting benefits, and profit declined because growth and infrastructure investments, including office environment improvements, base-pay increases and employee training, were implemented as planned.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | SAKURA KCS Corporation (4761) timely disclosure | Komori