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Presentation materials for financial results4771F&M CO.,LTD.Information and Communications, Services and Others

Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

The full-year plan for the fiscal year ending March 2027 has been revised upward from the initial plan, with revenue increased from ¥246.94 billion to ¥256.75 billion and operating profit from ¥4.156 billion to ¥4.994 billion. Cumulative results for the second quarter also exceeded budget for both revenue and operating profit.

Worth reading
41Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
981
¥ million (increase in revenue from the initial plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,458 million+27.9%
Operating profit¥1,997 million+113.1%
Ordinary income¥2,029 million+111.7%
Net income¥1,381 million+113.3%
Selling, general and administrative expenses¥5,509 million
Gross Profit Margin
Rate65.5%
Year-on-year change (points)-0.8
Operating profit margin
Rate17.4%
Year-on-year change (points)6.9
Full-year earnings forecast
Net Sales
¥25,675 million
Operating profit
¥4,994 million
Ordinary income
¥5,046 million
Net income
¥3,448 million
EBITDA
¥7,560 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue increased by ¥2,502 million. Expenses including outsourcing fees, personnel expenses and commission fees increased. Amounts for individual expense items: Not disclosed.
New initiatives
  • Provision of SRAISE, a generative AI tool specializing in social insurance and labor consultant services
  • Provision of F&M OneGeNNect through a community focused on the use of generative AI for accounting firms
  • Expansion of services into human resources management and development, including talent management and performance evaluations
Key KPIsA metric the company considers important as a management benchmark.
  • Accounting service membership113,502 people
  • F&M Club membership14,817 people
  • Office Station series membership60,440 users
  • AI coverage of bookkeeping processes93.1 %
  • Accounting service member app penetration rate96.6 %
  • Number of companies implementing instructor-dispatch training1,854 companies
  • Office Station MRR¥512 million
  • Office Station ARR¥6,147 million
  • Office Station CAGR34.9 %
  • Labor management churn rate0.99 %
  • Payroll statement churn rate1.2 %
  • Time and attendance churn rate1.77 %
  • Year-end tax adjustment churn rate1.01 %
  • Pro churn rate0.36 %
Segment results
  • Accounting Services business
    Net Sales2,387
    Operating profit695
    Year-on-year change in revenue10.5
    Operating profit, year on year20
  • Consulting Business
    Net Sales5,473
    Operating profit2,123
    Year-on-year change in revenue37.1
    Operating profit, year on year74.9
  • Business Solutions business
    Net Sales3,365
    Operating profit-98
    Year-on-year change in revenue30.7
  • Real Estate Leasing
    Net Sales54
    Operating profit13
    Year-on-year change in revenue1.6
    Operating profit, year on year5.2
  • Systems development business
    Net Sales157
    Operating profit-63
    Year-on-year change in revenue10.2
  • Other Businesses
    Net Sales20
    Operating profit-4
    Year-on-year change in revenue-32.5
Medium-term management plan targets
Period CoveredFiscal years ending March 2026 to March 2028
Net Sales
Fiscal year ending March 2028¥25,675 million
Operating profit
Fiscal year ending March 2028¥4,994 million
Accounting service membership
Fiscal year ending March 2028120,000 people
F&M Club membership
Fiscal year ending March 202820,000 people
Office Station membership
Fiscal year ending March 202870,000 people
Financial targets
Equity ratio
Actual results74.6 %
Market Size / Share
  • Number of income tax filers23,535,000 people
  • Business income earners3,861,000 people
  • Life insurance sales representatives185,200 people
  • Percentage of our members among life insurance sales personnel60.7 %
  • Labor management cloud market shareNo. 1 for 6 consecutive years
Number of employees
Headcount in the sales division increased by 67 year on year. Total employee count and hiring plan: Not disclosed.
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥11,458 million (YoY +27.9%)
Operating profit¥1,997 million (YoY +113.1%)
Ordinary income¥2,029 million (YoY +111.7%)
Net income¥1,381 million (YoY +113.3%)
Gross Profit MarginRate 65.5% / Year-on-year change (points) -0.8
Operating profit marginRate 17.4% / Year-on-year change (points) 6.9
Selling, general and administrative expenses¥5,509 million
Full-year earnings forecastNet Sales ¥25,675 million / Operating profit ¥4,994 million / Ordinary income ¥5,046 million / Net income ¥3,448 million / EBITDA ¥7,560 million
Self-assessment against the planAbove plan
Segment resultsSegment Accounting Services business / Net Sales ¥2,387 million / Operating profit ¥695 million / Year-on-year change in revenue ¥10.5 million / Operating profit, year on year ¥20 million, Segment Consulting Business / Net Sales ¥5,473 million / Operating profit ¥2,123 million / Year-on-year change in revenue ¥37.1 million / Operating profit, year on year ¥74.9 million, Segment Business Solutions business / Net Sales ¥3,365 million / Operating profit ¥-98 million / Year-on-year change in revenue ¥30.7 million / Operating profit, year on year Not disclosed, Segment Real Estate Leasing / Net Sales ¥54 million / Operating profit ¥13 million / Year-on-year change in revenue ¥1.6 million / Operating profit, year on year ¥5.2 million, Segment Systems development business / Net Sales ¥157 million / Operating profit ¥-63 million / Year-on-year change in revenue ¥10.2 million / Operating profit, year on year Not disclosed, Segment Other Businesses / Net Sales ¥20 million / Operating profit ¥-4 million / Year-on-year change in revenue ¥-32.5 million / Operating profit, year on year Not disclosed
Breakdown of Factors Affecting the ChangeRevenue increased by ¥2,502 million. Expenses including outsourcing fees, personnel expenses and commission fees increased. Amounts for individual expense items: Not disclosed.
Key KPIsIndicator name Accounting service membership / Value 113,502 people / Year on year against the same period last year Not disclosed, Indicator name F&M Club membership / Value 14,817 people / Year on year against the same period last year Not disclosed, Indicator name Office Station series membership / Value 60,440 users / Year on year against the same period last year Not disclosed, Indicator name AI coverage of bookkeeping processes / Value 93.1 % / Year on year against the same period last year Not disclosed, Indicator name Accounting service member app penetration rate / Value 96.6 % / Year on year against the same period last year Not disclosed, Indicator name Number of companies implementing instructor-dispatch training / Value 1,854 companies / Year on year against the same period last year Not disclosed, Indicator name Office Station MRR / Value ¥512 million / Year on year against the same period last year Not disclosed, Indicator name Office Station ARR / Value ¥6,147 million / Year on year against the same period last year Not disclosed, Indicator name Office Station CAGR / Value 34.9 % / Year on year against the same period last year Not disclosed, Indicator name Labor management churn rate / Value 0.99 % / Year on year against the same period last year Not disclosed, Indicator name Payroll statement churn rate / Value 1.2 % / Year on year against the same period last year Not disclosed, Indicator name Time and attendance churn rate / Value 1.77 % / Year on year against the same period last year Not disclosed, Indicator name Year-end tax adjustment churn rate / Value 1.01 % / Year on year against the same period last year Not disclosed, Indicator name Pro churn rate / Value 0.36 % / Year on year against the same period last year Not disclosed
Number of employeesHeadcount in the sales division increased by 67 year on year. Total employee count and hiring plan: Not disclosed.
Medium-term management plan targetsPeriod Covered Fiscal years ending March 2026 to March 2028 / Net Sales Fiscal year ending March 2028 ¥25,675 million / Operating profit Fiscal year ending March 2028 ¥4,994 million / Accounting service membership Fiscal year ending March 2028 120,000 people / F&M Club membership Fiscal year ending March 2028 20,000 people / Office Station membership Fiscal year ending March 2028 70,000 people
Financial targetsEquity ratio Actual results 74.6 % / Other Not disclosed
Market Size / ShareIndicator Number of income tax filers / Value 23,535,000 people, Indicator Business income earners / Value 3,861,000 people, Indicator Life insurance sales representatives / Value 185,200 people, Indicator Percentage of our members among life insurance sales personnel / Value 60.7 %, Indicator Labor management cloud market share / Value No. 1 for 6 consecutive years
New initiativesProvision of SRAISE, a generative AI tool specializing in social insurance and labor consultant services, Provision of F&M OneGeNNect through a community focused on the use of generative AI for accounting firms, Expansion of services into human resources management and development, including talent management and performance evaluations
Items this document does not state (12)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual 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.

Revenue increased as membership remained steady across all segments and the consulting business recognized ¥1,206 million in subsidy approval fees, among other factors. Expenses, including outsourcing fees, personnel expenses and commission fees, also increased with the rise in revenue.

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Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | F&M CO.,LTD. (4771) timely disclosure | Komori