Overview of Financial Results for the Interim Period of the Fiscal Year Ending March 2027 | SAKURA KCS Corporation (4761) timely disclosure

Worth reading

63In 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

-16

Millions of yen (year-on-year change in ordinary profit)

Wording

Definitive

How definitive the wording is.

Contents of this document

Results presentationSecond quarter of the fiscal year ending March 202711 items taken from the company’s own explanation

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

Net Sales¥10,925 million

Operating profit¥262 million

Ordinary income¥404 million

Net income¥285 million

Selling, general and administrative expenses¥2,713 million

Gross Profit Margin

Rate27.2%

Year-on-year change (points)+0.5 percentage points year on year

Operating profit margin

Rate2.4%

Year-on-year change (points)-0.7 percentage points

Full-year earnings forecast

Net Sales

¥25,700 million

Operating profit

¥1,420 million

Ordinary income

¥1,620 million

Net income

¥1,230 million

Annual Dividend

62 yen

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

The strategies are generally progressing as planned in the first year of the medium-term management plan

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

Impact of higher revenue¥122 million
Profitability Improvement¥54 million
Higher SG&A expenses¥-239 million
Increase in non-operating income¥46 million
Investment in human resources (base pay increases, training and recruitment costs)¥108 million
Capital expenditures (security enhancements, office improvements and other investments)¥91 million
Research and development (AI-driven development and other initiatives)¥20 million
Other expenses¥19 million

New initiatives

Establishment of the CAXO and AX Promotion Department and an AI CoE
Establishment of an integrated AI and security governance framework
Strengthening Secu×Fra and expanding security and data center services
Upgrade of the financial reporting system
Addition of eL-QR payment functionality to Sossian
Launch of the renewed version of the pollution compensation system
Introduction of a career design leave of absence program
Introduction of a stock-based compensation plan for directors and establishment of a voluntary compensation committee

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

Number of municipalities using Sossian98 Local government
Number of Sossian systems in operation129 Systems
Number of financial institutions using the financial reporting system49 companies
Share of the financial reporting system among regional banks40 %
Number of applications to the AI Prompt Contest1,149 Engagements

Segment results

Financial-related

Net Sales

Second quarter of the fiscal year ending March 2026¥3,469 million

2Q of the fiscal year ending March 2027¥4,356 million

Segment profit

Second quarter of the fiscal year ending March 2026¥729 million

2Q of the fiscal year ending March 2027¥1,081 million

Public-related

Net Sales

Second quarter of the fiscal year ending March 2026¥2,720 million

2Q of the fiscal year ending March 2027¥2,864 million

Segment profit

Second quarter of the fiscal year ending March 2026¥245 million

2Q of the fiscal year ending March 2027¥377 million

Industrial-related

Net Sales

Second quarter of the fiscal year ending March 2026¥4,275 million

2Q of the fiscal year ending March 2027¥3,704 million

Segment profit

Second quarter of the fiscal year ending March 2026¥837 million

2Q of the fiscal year ending March 2027¥488 million

Medium-term management plan targets

FY2028

Net Sales¥28 billion

Operating profit¥1.90 billion

Operating profit margin6.8%

Ordinary income¥2.10 billion

Profit attributable to owners of the parent¥1,440 million

ROE6.4%

Strategic growth investment¥10 billion

Shareholder returns (DOE)3.5～4.0%

Financial targets

ROE

FY2025 actual results6.0%

Fiscal 2028 target6.4%

FY2031 Target8% or higher

PBR

Fiscal 2028 targetAt least 1x

End-September 20260.8x

DOE3.5–4.0% through fiscal 2028

Market Size / Share

Financial reporting system for regional banks
ShareCurrently 40%; target of 60% by the end of fiscal 2028
Pollution compensation system
ShareAim to change from 30% to 75%

Capital expenditures

¥4,000 million cumulative target for fiscal 2026–2028

Annual Dividend

Annual¥62

Interim¥31

End of period¥31

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
Item	Details
Document type	Results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥10,925 million
Operating profit	¥262 million
Ordinary income	¥404 million
Net income	¥285 million
Gross Profit Margin	Rate 27.2% / Year-on-year change (points) +0.5 percentage points year on year
Operating profit margin	Rate 2.4% / Year-on-year change (points) -0.7 percentage points
Selling, general and administrative expenses	¥2,713 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 / Annual Dividend 62 yen
Self-assessment against the plan	The strategies are generally progressing as planned in the first year of the medium-term management plan
Segment results	Financial-related Net Sales Second quarter of the fiscal year ending March 2026 ¥3,469 million / 2Q of the fiscal year ending March 2027 ¥4,356 million / Segment profit Second quarter of the fiscal year ending March 2026 ¥729 million / 2Q of the fiscal year ending March 2027 ¥1,081 million / Public-related Net Sales Second quarter of the fiscal year ending March 2026 ¥2,720 million / 2Q of the fiscal year ending March 2027 ¥2,864 million / Segment profit Second quarter of the fiscal year ending March 2026 ¥245 million / 2Q of the fiscal year ending March 2027 ¥377 million / Industrial-related Net Sales Second quarter of the fiscal year ending March 2026 ¥4,275 million / 2Q of the fiscal year ending March 2027 ¥3,704 million / Segment profit Second quarter of the fiscal year ending March 2026 ¥837 million / 2Q of the fiscal year ending March 2027 ¥488 million
Breakdown of Factors Affecting the Change	Factors Impact of higher revenue / Amount ¥122 million, Factors Profitability Improvement / Amount ¥54 million, Factors Higher SG&A expenses / Amount ¥-239 million, Factors Increase in non-operating income / Amount ¥46 million, Factors Investment in human resources (base pay increases, training and recruitment costs) / Amount ¥108 million, Factors Capital expenditures (security enhancements, office improvements and other investments) / Amount ¥91 million, Factors Research and development (AI-driven development and other initiatives) / Amount ¥20 million, Factors Other expenses / Amount ¥19 million
Key KPIs	Indicator name Number of municipalities using Sossian / Value 98 Local government / Year on year against the same period last year Not disclosed, Indicator name Number of Sossian systems in operation / Value 129 Systems / Year on year against the same period last year Not disclosed, Indicator name Number of financial institutions using the financial reporting system / Value 49 companies / Year on year against the same period last year Not disclosed, Indicator name Share of the financial reporting system among regional banks / Value 40 % / Year on year against the same period last year Not disclosed, Indicator name Number of applications to the AI Prompt Contest / Value 1,149 Engagements / Year on year against the same period last year Not disclosed
Medium-term management plan targets	FY2028 Net Sales ¥28 billion / Operating profit ¥1.90 billion / Operating profit margin 6.8% / Ordinary income ¥2.10 billion / Profit attributable to owners of the parent ¥1,440 million / ROE 6.4% / Strategic growth investment ¥10 billion / Shareholder returns (DOE) 3.5～4.0%
Financial targets	ROE FY2025 actual results 6.0% / Fiscal 2028 target 6.4% / FY2031 Target 8% or higher / PBR Fiscal 2028 target At least 1x / End-September 2026 0.8x / DOE 3.5–4.0% through fiscal 2028
Annual Dividend	Annual ¥62 / Interim ¥31 / End of period ¥31
Acquisition of treasury shares	Treasury share acquisitions and disposals mentioned. The acquisition amount, number of shares and period are not disclosed
Capital expenditures	¥4,000 million (cumulative target for fiscal 2026–2028)
Market Size / Share	Subject Financial reporting system for regional banks / Share Currently 40%; target of 60% by the end of fiscal 2028, Subject Pollution compensation system / Share Aim to change from 30% to 75%
New initiatives	Establishment of the CAXO and AX Promotion Department and an AI CoE, Establishment of an integrated AI and security governance framework, Strengthening Secu×Fra and expanding security and data center services, Upgrade of the financial reporting system, Addition of eL-QR payment functionality to Sossian, Launch of the renewed version of the pollution compensation system, Introduction of a career design leave of absence program, Introduction of a stock-based compensation plan for directors and establishment of a voluntary compensation committee

Items this document does not state (10)

Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioOrders 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.

Gross profit increased due to the effect of higher revenue and improved profitability, but SG&A expenses increased by ¥239 million because growth and infrastructure investments, including base pay increases, talent development and recruitment, training, R&D in AI-driven development, and improvements to the office environment, were implemented as planned, resulting in investment ahead of returns.

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