Financial Results Presentation for the Third Quarter of the Fiscal Year Ending December 2026 | DENTSU SOKEN INC. (4812) timely disclosure

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10.4

Year-on-year change in revenue (%)

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Contents of this document

Results presentationQ3 FY20269 items taken from the company’s own explanation

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

Net Sales¥133,752 million+10.4%

Operating profit¥17,890 million+9.9%

Ordinary income¥18,559 million+9.9%

Net income¥13,115 million+11.9%

Selling, general and administrative expenses¥30,107 million

Gross Profit Margin

Rate35.9%

Year-on-year change (points)-0.3

Operating profit margin

Rate13.4%

Year-on-year change (points)-0

Results for the three months of the current quarter

Net Sales

¥45,102 million+10.2%

Operating profit

¥5,548 million-1.2%

Ordinary income

¥5,832 million+0.8%

Net income

¥4,227 million+4.9%

Gross Profit Margin

Rate35.1%

Year-on-year change (points)-1.6

Operating profit margin

Rate12.3%

Year-on-year change (points)-1.4

Selling, general and administrative expenses

¥10,296 million+9.5%

Full-year earnings forecast

Net Sales

¥182,000 million

Operating profit

¥25,500 million

Operating profit margin

14.0%

Ordinary income

¥26,100 million

Net income

¥18,000 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 Sales73.5%

Operating profit70.2%

Ordinary income71.1%

Net income72.9%

What the company explained in this material

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

Cumulative operating income

Impact of higher revenue+¥4.56 billion

Impact of gross margin decline-¥360 million

Impact of increase in SG&A expenses-¥2.58 billion

Breakdown of increase in SG&A expenses

Research and Development Expenses+¥910 million

Personnel-related+¥790 million

Outsourcing expenses+¥300 million

Third-quarter operating profit

Impact of higher revenue+¥1.53 billion

Impact of gross margin decline-¥710 million

Impact of increase in SG&A expenses-¥890 million

Breakdown of increase in SG&A expenses

Research and Development Expenses+¥330 million

Personnel-related+¥200 million

Outsourcing expenses+¥100 million

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

Judgments and assumptions based on industry trends, customer conditions and other information available at this time. Numerical assumptions: Not disclosed.

New initiatives

Launch of the latest version of the Ci*X group management solution with AI functionality
Development of eMAFF Application 2.0, an online application system for administrative procedures
Development and provision of the first product in the GREENLIGHT series featuring an AI agent
Launch of Dsemantrix AI
Launch of the CIVILIOS super app for local governments

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

Orders received (nine months ended)¥149,873 million
Year on year against the same period last year+8.7%
Order backlog (at the end of the third quarter)¥92,461 million
Year on year against the same period last year+20.7%
Number of employees (at the end of the third quarter)4,860 People
Year on year against the same period last year+5.6%

Segment results

Cumulative total

Financial solutions

Net Sales

¥27,975 million+10.8%

Operating profit

¥3,819 million+24.5%

Business solutions

Net Sales

¥23,150 million+13.9%

Operating profit

¥5,516 million+13.2%

Manufacturing Solutions

Net Sales

¥46,495 million+1.9%

Operating profit

¥4,692 million-18.7%

Communication IT

Net Sales

¥36,131 million+20.6%

Operating profit

¥3,861 million+50.5%

Third quarter alone

Financial solutions

Net Sales

¥9,485 million+6.8%

Operating profit

¥1,273 million+9.5%

Business solutions

Net Sales

¥7,523 million+4.3%

Operating profit

¥1,490 million-23.2%

Manufacturing Solutions

Net Sales

¥15,505 million+5.9%

Operating profit

¥1,505 million-8.7%

Communication IT

Net Sales

¥12,588 million+23.7%

Operating profit

¥1,278 million+48.4%

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Amount undetermined. An impairment loss may need to be recognized on fixed assets, including goodwill and customer-related assets, of the consolidated subsidiary ミツエーリンクス.

Orders received and order backlog

Orders received

¥149,873 million+8.7%

PeriodNine months ended Q3

Order backlog

¥92,461 million+20.7%

As ofEnd of the third quarter

Number of employees

Number of Employees4,860 people

Change during the period+256 people year on year (+5.6%)

Annual Dividend

The year-end dividend forecast for the fiscal year ending December 2026 was revised to no dividend.

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Q3 FY2026
Net Sales	¥133,752 million (YoY +10.4%)
Operating profit	¥17,890 million (YoY +9.9%)
Ordinary income	¥18,559 million (YoY +9.9%)
Net income	¥13,115 million (YoY +11.9%)
Gross Profit Margin	Rate 35.9% / Year-on-year change (points) -0.3
Operating profit margin	Rate 13.4% / Year-on-year change (points) -0
Selling, general and administrative expenses	¥30,107 million
Results for the three months of the current quarter	Net Sales ¥45,102 million (YoY +10.2%) / Operating profit ¥5,548 million (YoY -1.2%) / Ordinary income ¥5,832 million (YoY +0.8%) / Net income ¥4,227 million (YoY +4.9%) / Gross Profit Margin Rate 35.1% / Year-on-year change (points) -1.6 / Operating profit margin Rate 12.3% / Year-on-year change (points) -1.4 / Selling, general and administrative expenses ¥10,296 million (YoY +9.5%)
Full-year earnings forecast	Net Sales ¥182,000 million / Operating profit ¥25,500 million / Operating profit margin 14.0% / Ordinary income ¥26,100 million / Net income ¥18,000 million
Progress against full-year forecast	Net Sales 73.5% / Operating profit 70.2% / Ordinary income 71.1% / Net income 72.9%
Segment results	Cumulative total Financial solutions Net Sales ¥27,975 million (YoY +10.8%) / Operating profit ¥3,819 million (YoY +24.5%) / Business solutions Net Sales ¥23,150 million (YoY +13.9%) / Operating profit ¥5,516 million (YoY +13.2%) / Manufacturing Solutions Net Sales ¥46,495 million (YoY +1.9%) / Operating profit ¥4,692 million (YoY -18.7%) / Communication IT Net Sales ¥36,131 million (YoY +20.6%) / Operating profit ¥3,861 million (YoY +50.5%) / Third quarter alone Financial solutions Net Sales ¥9,485 million (YoY +6.8%) / Operating profit ¥1,273 million (YoY +9.5%) / Business solutions Net Sales ¥7,523 million (YoY +4.3%) / Operating profit ¥1,490 million (YoY -23.2%) / Manufacturing Solutions Net Sales ¥15,505 million (YoY +5.9%) / Operating profit ¥1,505 million (YoY -8.7%) / Communication IT Net Sales ¥12,588 million (YoY +23.7%) / Operating profit ¥1,278 million (YoY +48.4%)
Breakdown of Factors Affecting the Change	Cumulative operating income Impact of higher revenue +¥4.56 billion / Impact of gross margin decline -¥360 million / Impact of increase in SG&A expenses -¥2.58 billion / Breakdown of increase in SG&A expenses Research and Development Expenses +¥910 million / Personnel-related +¥790 million / Outsourcing expenses +¥300 million / Third-quarter operating profit Impact of higher revenue +¥1.53 billion / Impact of gross margin decline -¥710 million / Impact of increase in SG&A expenses -¥890 million / Breakdown of increase in SG&A expenses Research and Development Expenses +¥330 million / Personnel-related +¥200 million / Outsourcing expenses +¥100 million
Key KPIs	Indicator name Orders received (nine months ended) / Value ¥149,873 million / Year on year against the same period last year +8.7%, Indicator name Order backlog (at the end of the third quarter) / Value ¥92,461 million / Year on year against the same period last year +20.7%, Indicator name Number of employees (at the end of the third quarter) / Value 4,860 People / Year on year against the same period last year +5.6%
Number of employees	Number of Employees 4,860 people / Change during the period +256 people year on year (+5.6%) / Hiring plan Not disclosed
Assumptions Underlying the Business Outlook	Judgments and assumptions based on industry trends, customer conditions and other information available at this time. Numerical assumptions: Not disclosed.
Risk amount incorporated into the outlook	Amount undetermined. An impairment loss may need to be recognized on fixed assets, including goodwill and customer-related assets, of the consolidated subsidiary ミツエーリンクス.
Annual Dividend	The year-end dividend forecast for the fiscal year ending December 2026 was revised to no dividend.
Orders received and order backlog	Orders received ¥149,873 million (YoY +8.7%) / Order backlog ¥92,461 million (YoY +20.7%)
New initiatives	Launch of the latest version of the Ci*X group management solution with AI functionality, Development of eMAFF Application 2.0, an online application system for administrative procedures, Development and provision of the first product in the GREENLIGHT series featuring an AI agent, Launch of Dsemantrix AI, Launch of the CIVILIOS super app for local governments

Items this document does not state (10)

Self-assessment against the planUnit price and quantity metricsNumber of stores and locationsMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresMarket 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 cumulative period, the Financial Solutions, Business Solutions and Communication IT businesses drove performance, with the effect of higher revenue being the main contributor to the increase in profit. Meanwhile, lower revenue and profitability in Consulting Services, lower profitability in Software Products, and higher SG&A expenses, including research and development costs and personnel-related expenses, weighed on profit.

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