Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | EM SYSTEMS CO.,LTD. (4820) timely disclosure

Worth reading

66In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Deterioration

Direction inferred from the company’s description.

Scale

1675

¥ million (year-on-year decrease in revenue)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 202612 items taken from the company’s own explanation

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

Net Sales¥5,039 million-24.9%

Operating profit¥216 million-85.9%

Ordinary income¥388 million-77.2%

Net income¥155 million-86.4%

Results for the three months of the current quarter

Net Sales

¥5,039 million

Operating profit

¥216 million

Ordinary income

¥388 million

Net income

¥155 million

Full-year earnings forecast

Net Sales

¥22,762 million

Operating profit

¥3,316 million

Ordinary income

¥3,939 million

Net income

¥2,193 million

Dividend per share

¥32

What the company explained in this material

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

Revenue was broadly in line with expectations, while the interim profit forecast was revised downward

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

Initial sales in Q1 of the previous year¥3,024 million
SubjectInitial sales of pharmacy systems
Restraint of in-house replacements, etc.¥-421 million
SubjectInitial sales of pharmacy systems
Completion of online eligibility verification demand¥-349 million
SubjectInitial sales of pharmacy systems
Completion of electronic prescription demand¥-834 million
SubjectInitial sales of pharmacy systems
Other¥243 million
SubjectInitial sales of pharmacy systems
Initial sales in Q1 of the previous year¥576 million
SubjectInitial sales of medical systems
Shift from in-house replacements to acquiring new customers from other vendors¥-57 million
SubjectInitial sales of medical systems
Other¥-27 million
SubjectInitial sales of medical systems
Completion of electronic prescription demand¥-183 million
SubjectInitial sales of medical systems
Other¥1 million
SubjectInitial sales of medical systems

New initiatives

Revamp the pharmacy sales structure into a specialized model (starting May 2026)
Comprehensive optimization of the pricing structure
Group-wide product development
Implement AI functions, including automatic AI SOAP generation and a medication guidance mode
Plan to add medical AI functions to MAPs for CLINIC in FY2026
Begin a proof of concept following the acquisition of PreCal and shift toward a service-based business
Expand the product and service platform in the nursing care and welfare fields through Conduct

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

Pharmacy system customers23,516 Engagements
Year on yearQoQ +34 customers
Medical system customers3,487 Engagements
Year on yearQoQ +61 customers
Nursing care and welfare system customers16,307 Engagements
Year on yearQoQ +3,294 customers
Pharmacy system market share42.8 %
Medical system market share3.9 %
Nursing care and welfare system market share5.6 %

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Pharmacy system ARPUImproved by more than 10% (specific amount: Not disclosed)

Customer BasePharmacy systems 23,516 customers, medical systems 3,487 customers, nursing care/welfare systems 16,307 customers

Segment results

Pharmacy systems
Net Sales¥4,074 million (YoY -25.8%)
Operating profit¥374 million (YoY -74.4%)
Medical systems
Net Sales¥592 million (YoY -28.8%)
Operating profit¥-170 million
Nursing care and welfare systems
Net Sales¥133 million (YoY +4.2%)
Operating profit¥-76 million
Other
Net Sales¥279 million (YoY -6.2%)
Operating profit¥40 million (YoY +76.4%)

Medium-term management plan targets

Target fiscal yearFY2027.12

Net Sales

¥23,511 million

Operating profit

¥4,031 million

Operating profit margin

17.1 %

Dividend per share

¥47

Financial targets

ROE

FY2024 actual results12.9%

FY2025 actual13.0%

Target at the end of the medium-term plan period17%

Market Size / Share

Pharmacy systems
Own customers23,516 customers
Total market55,000 customers
Share42.8%
Medical systems
Own customers3,487 customers
Total market90,000 customers
Share3.9%
Nursing care and welfare systems
Own customers16,307 customers
Total market290,000 customers
Share5.6%

Annual Dividend

Annual

¥23

Interim

¥5

End of period

¥18

Payout ratio

100% level during the medium-term plan period (omitted for FY2026.12 forecast because the full-year earnings forecast is currently under review)

Acquisition of treasury shares

The company disclosed a past share repurchase that began on 15 February 2024, with a total acquisition amount of ¥1 billion. The company will continue to consider shareholder returns, including share repurchases.

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending December 2026
Net Sales	¥5,039 million (YoY -24.9%)
Operating profit	¥216 million (YoY -85.9%)
Ordinary income	¥388 million (YoY -77.2%)
Net income	¥155 million (YoY -86.4%)
Results for the three months of the current quarter	Net Sales ¥5,039 million / Operating profit ¥216 million / Ordinary income ¥388 million / Net income ¥155 million
Full-year earnings forecast	Net Sales ¥22,762 million / Operating profit ¥3,316 million / Ordinary income ¥3,939 million / Net income ¥2,193 million / Dividend per share ¥32
Self-assessment against the plan	Revenue was broadly in line with expectations, while the interim profit forecast was revised downward
Segment results	Segment Pharmacy systems / Net Sales ¥4,074 million (YoY -25.8%) / Operating profit ¥374 million (YoY -74.4%), Segment Medical systems / Net Sales ¥592 million (YoY -28.8%) / Operating profit ¥-170 million, Segment Nursing care and welfare systems / Net Sales ¥133 million (YoY +4.2%) / Operating profit ¥-76 million, Segment Other / Net Sales ¥279 million (YoY -6.2%) / Operating profit ¥40 million (YoY +76.4%)
Breakdown of Factors Affecting the Change	Subject Initial sales of pharmacy systems / Item Initial sales in Q1 of the previous year / Amount ¥3,024 million, Subject Initial sales of pharmacy systems / Item Restraint of in-house replacements, etc. / Amount ¥-421 million, Subject Initial sales of pharmacy systems / Item Completion of online eligibility verification demand / Amount ¥-349 million, Subject Initial sales of pharmacy systems / Item Completion of electronic prescription demand / Amount ¥-834 million, Subject Initial sales of pharmacy systems / Item Other / Amount ¥243 million, Subject Initial sales of medical systems / Item Initial sales in Q1 of the previous year / Amount ¥576 million, Subject Initial sales of medical systems / Item Shift from in-house replacements to acquiring new customers from other vendors / Amount ¥-57 million, Subject Initial sales of medical systems / Item Other / Amount ¥-27 million, Subject Initial sales of medical systems / Item Completion of electronic prescription demand / Amount ¥-183 million, Subject Initial sales of medical systems / Item Other / Amount ¥1 million
Key KPIs	Indicator Pharmacy system customers / Value 23,516 Engagements / Year on year against the same period last year Not disclosed / Year on year QoQ +34 customers, Indicator Medical system customers / Value 3,487 Engagements / Year on year against the same period last year Not disclosed / Year on year QoQ +61 customers, Indicator Nursing care and welfare system customers / Value 16,307 Engagements / Year on year against the same period last year Not disclosed / Year on year QoQ +3,294 customers, Indicator Pharmacy system market share / Value 42.8 % / Year on year against the same period last year Not disclosed, Indicator Medical system market share / Value 3.9 % / Year on year against the same period last year Not disclosed, Indicator Nursing care and welfare system market share / Value 5.6 % / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Pharmacy system ARPU Improved by more than 10% (specific amount: Not disclosed) / Customer Base Pharmacy systems 23,516 customers, medical systems 3,487 customers, nursing care/welfare systems 16,307 customers
Medium-term management plan targets	Target fiscal year FY2027.12 / Net Sales ¥23,511 million / Operating profit ¥4,031 million / Operating profit margin 17.1 % / Dividend per share ¥47
Financial targets	ROE FY2024 actual results 12.9% / FY2025 actual 13.0% / Target at the end of the medium-term plan period 17%
Annual Dividend	Annual ¥23 / Interim ¥5 / End of period ¥18
Payout ratio	100% level during the medium-term plan period (omitted for FY2026.12 forecast because the full-year earnings forecast is currently under review)
Acquisition of treasury shares	The company disclosed a past share repurchase that began on 15 February 2024, with a total acquisition amount of ¥1 billion. The company will continue to consider shareholder returns, including share repurchases.
Market Size / Share	Market Pharmacy systems / Own customers 23,516 customers / Total market 55,000 customers / Share 42.8%, Market Medical systems / Own customers 3,487 customers / Total market 90,000 customers / Share 3.9%, Market Nursing care and welfare systems / Own customers 16,307 customers / Total market 290,000 customers / Share 5.6%
New initiatives	Revamp the pharmacy sales structure into a specialized model (starting May 2026), Comprehensive optimization of the pricing structure, Group-wide product development, Implement AI functions, including automatic AI SOAP generation and a medication guidance mode, Plan to add medical AI functions to MAPs for CLINIC in FY2026, Begin a proof of concept following the acquisition of PreCal and shift toward a service-based business, Expand the product and service platform in the nursing care and welfare fields through Conduct

Items this document does not state (11)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital 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.

The decline reflected the completion of demand for the introduction of online eligibility verification systems and electronic prescriptions, as well as the restraint of in-house replacements in order to prioritize acquiring new customers from other vendors and offering higher-value products. In addition, the drop-off in demand related to health and welfare administration exceeded expectations, while expenses planned for the second half were brought forward into the first half, further reducing profit.

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