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Earnings presentation materials4820EM SYSTEMS CO.,LTD.Information and Communications, Services and Others

Presentation Materials on Financial Results for the Third Quarter of the Fiscal Year Ending December 2026

In the third quarter of the fiscal year ending December 2026, revenue and profit declined due to a reactionary decrease following the concentration of demand for online eligibility verification and electronic prescriptions in the prior year. The full-year forecast was revised downward to reflect extraordinary losses and other items, while the annual dividend forecast of ¥23 remains unchanged.

Worth reading
89Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-1529
¥ million (revision to the full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsQ3 FY202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,573 million-14.0%
Operating profit¥1,587 million-52.8%
Ordinary income¥2,134 million-44.1%
Net income¥1,722 million-28.3%
Results for the three months of the current quarterQuarterly standalone revenue is disclosed for the dispensing pharmacy, medical, and nursing care/welfare systems businesses, but consolidated profit and loss for the three-month quarter is Not disclosed.
Full-year earnings forecast
Net Sales
¥21,233 million
Operating profit
¥2,238 million
Ordinary income
¥2,963 million
Net income for the current fiscal year
¥1,485 million
Pharmacy dispensing system revenue
¥16,805 million
Medical system revenue
¥2,598 million
Elderly care/welfare system revenue
¥951 million
Pharmacy Systems Operating Profit
¥2,737 million
Medical Systems Operating Profit
¥-264 million
Nursing Care/Welfare Systems Operating Profit
¥-281 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Restrained promotion of replacement of the company’s own systems△¥835 million
    SubjectInitial sales of pharmacy systems
    Prior-year results¥7,411 million
  • Reactionary decline in demand for online eligibility verification△¥653 million
    SubjectInitial sales of pharmacy systems
  • Reactionary decline in demand for electronic prescriptions△¥806 million
    SubjectInitial sales of pharmacy systems
  • Restrained promotion of replacement of the company’s own systems-¥129 million
    SubjectInitial sales of medical systems
  • Reactionary decline in demand for electronic prescriptions△¥128 million
    SubjectInitial sales of medical systems
  • Hardware replacement△¥120 million
    SubjectInitial sales of medical systems
New initiatives
  • Absorption-type merger of EMテクノロジー研究所 and グッドサイクルシステム effective 1 January 2027
  • Restructuring of the company system and allocation of development functions to each company
  • Increased investment in AI, cybersecurity, healthcare DX, and solutions for resolving customer issues
  • Expansion of the rollout of the medication history-generating AI support option
  • Planned addition of AI functions to the medical systems business
Key KPIsA metric the company considers important as a management benchmark.
  • Pharmacy system ARPUSignificant increase year on year
    Year on year against the same period last yearSharp rise
  • Dispensing pharmacy systems market share40.9 %
  • Medical systems market share4.1 %
  • Nursing care/welfare systems market share5.5 %
  • Pharmacy record-generating AI support option utilization rateAt least 70%
  • Reduction in time required to prepare pharmacy recordsAt least 30%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of dispensing pharmacy systems customers22,507 projects
    Quarter-on-quarter change-753
  • Pharmacy system ARPUImproved by more than 10%
    Year on year against the same period last yearImproved by more than 10%
  • Number of medical systems customers3,688 projects
    Quarter-on-quarter change84
  • Number of nursing care/welfare systems customers16,022 projects
    Quarter-on-quarter change-72
Segment results
  • Pharmacy systems
    Net Sales12,289
    Revenue Unit¥ million
    Year-on-year revenue growth-16.5
    Operating profit1,998
    Operating profit unit¥ million
    Year-on-year change in operating profit-41.5
  • Medical systems
    Net Sales1,902
    Revenue Unit¥ million
    Year-on-year revenue growth-15.7
    Operating profit-218
    Operating profit unit¥ million
  • Nursing care and welfare systems
    Net Sales713
    Revenue Unit¥ million
    Year-on-year revenue growth81
    Operating profit-235
    Operating profit unit¥ million
  • Other
    Net Sales782
    Revenue Unit¥ million
    Year-on-year revenue growth-6.8
    Operating profit31
    Operating profit unit¥ million
    Year-on-year change in operating profit127.9
Medium-term management plan targets
Pharmacy system ARPUAchieved an improvement of more than 10%
Revenue for the fiscal year ending December 2027¥23,511 million
Operating profit for the fiscal year ending December 2027¥4,031 million
unit2¥ million
Operating margin for the fiscal year ending December 2027¥17.1 million
unit3%
Financial targets
ROE
Actual resultsFY2024.12 12.9%、FY2025.12 13.0%
Target at the end of the medium-term plan period17%
Market Size / Share
  • Pharmacy systems
    Share40.9
    Total market55,000
    Target Base Unitprojects
  • Medical systems
    Share4.1
    Total market90,000
    Target Base Unitprojects
  • Nursing care and welfare systems
    Share5.5
    Total market290,000
    Target Base Unitprojects
Annual Dividend
Annual¥23 per share
Interim¥5 per share
End of period¥18 per share
Payout ratio
100% or more during the medium-term management plan period
Acquisition of treasury shares
The company disclosed a past repurchase that began on 15 February 2024, with a total acquisition amount of ¥1 billion. It will continue to consider shareholder returns, including share repurchases.
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredQ3 FY2026
Net Sales¥15,573 million (YoY -14.0%)
Operating profit¥1,587 million (YoY -52.8%)
Ordinary income¥2,134 million (YoY -44.1%)
Net income¥1,722 million (YoY -28.3%)
Results for the three months of the current quarterQuarterly standalone revenue is disclosed for the dispensing pharmacy, medical, and nursing care/welfare systems businesses, but consolidated profit and loss for the three-month quarter is Not disclosed.
Full-year earnings forecastNet Sales ¥21,233 million / Operating profit ¥2,238 million / Ordinary income ¥2,963 million / Net income for the current fiscal year ¥1,485 million / Pharmacy dispensing system revenue ¥16,805 million / Medical system revenue ¥2,598 million / Elderly care/welfare system revenue ¥951 million / Pharmacy Systems Operating Profit ¥2,737 million / Medical Systems Operating Profit ¥-264 million / Nursing Care/Welfare Systems Operating Profit ¥-281 million
Segment resultsSegment Pharmacy systems / Net Sales 12,289 / Revenue Unit ¥ million / Year-on-year revenue growth -16.5 / Operating profit 1,998 / Operating profit unit ¥ million / Year-on-year change in operating profit -41.5, Segment Medical systems / Net Sales 1,902 / Revenue Unit ¥ million / Year-on-year revenue growth -15.7 / Operating profit -218 / Operating profit unit ¥ million, Segment Nursing care and welfare systems / Net Sales 713 / Revenue Unit ¥ million / Year-on-year revenue growth 81 / Operating profit -235 / Operating profit unit ¥ million, Segment Other / Net Sales 782 / Revenue Unit ¥ million / Year-on-year revenue growth -6.8 / Operating profit 31 / Operating profit unit ¥ million / Year-on-year change in operating profit 127.9
Breakdown of Factors Affecting the ChangeSubject Initial sales of pharmacy systems / Prior-year results ¥7,411 million / Item Restrained promotion of replacement of the company’s own systems / Amount △¥835 million, Subject Initial sales of pharmacy systems / Item Reactionary decline in demand for online eligibility verification / Amount △¥653 million, Subject Initial sales of pharmacy systems / Item Reactionary decline in demand for electronic prescriptions / Amount △¥806 million, Subject Initial sales of medical systems / Item Restrained promotion of replacement of the company’s own systems / Amount -¥129 million, Subject Initial sales of medical systems / Item Reactionary decline in demand for electronic prescriptions / Amount △¥128 million, Subject Initial sales of medical systems / Item Hardware replacement / Amount △¥120 million
Key KPIsIndicator Pharmacy system ARPU / Value Significant increase year on year / Year on year against the same period last year Sharp rise, Indicator Dispensing pharmacy systems market share / Value 40.9 % / Year on year against the same period last year Not disclosed, Indicator Medical systems market share / Value 4.1 % / Year on year against the same period last year Not disclosed, Indicator Nursing care/welfare systems market share / Value 5.5 % / Year on year against the same period last year Not disclosed, Indicator Pharmacy record-generating AI support option utilization rate / Value At least 70% / Year on year against the same period last year Not disclosed, Indicator Reduction in time required to prepare pharmacy records / Value At least 30% / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator Number of dispensing pharmacy systems customers / Value 22,507 projects / Quarter-on-quarter change -753 projects, Indicator Pharmacy system ARPU / Value Improved by more than 10% / Year on year against the same period last year Improved by more than 10%, Indicator Number of medical systems customers / Value 3,688 projects / Quarter-on-quarter change 84 projects, Indicator Number of nursing care/welfare systems customers / Value 16,022 projects / Quarter-on-quarter change -72 projects
Medium-term management plan targetsPharmacy system ARPU Achieved an improvement of more than 10% / Revenue for the fiscal year ending December 2027 ¥23,511 million / Operating profit for the fiscal year ending December 2027 ¥4,031 million / unit2 ¥ million / Operating margin for the fiscal year ending December 2027 ¥17.1 million / unit3 %
Financial targetsROE Actual results FY2024.12 12.9%、FY2025.12 13.0% / Target at the end of the medium-term plan period 17%
Annual DividendAnnual ¥23 per share / Interim ¥5 per share / End of period ¥18 per share
Payout ratio100% or more during the medium-term management plan period
Acquisition of treasury sharesThe company disclosed a past repurchase that began on 15 February 2024, with a total acquisition amount of ¥1 billion. It will continue to consider shareholder returns, including share repurchases.
Market Size / ShareMarket Pharmacy systems / Share 40.9 % / Total market 55,000 % / Target Base Unit projects, Market Medical systems / Share 4.1 % / Total market 90,000 % / Target Base Unit projects, Market Nursing care and welfare systems / Share 5.5 % / Total market 290,000 % / Target Base Unit projects
New initiativesAbsorption-type merger of EMテクノロジー研究所 and グッドサイクルシステム effective 1 January 2027, Restructuring of the company system and allocation of development functions to each company, Increased investment in AI, cybersecurity, healthcare DX, and solutions for resolving customer issues, Expansion of the rollout of the medication history-generating AI support option, Planned addition of AI functions to the medical systems business
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber 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 in revenue and profit was attributable to a reactionary decrease following the concentration of demand for online eligibility verification and electronic prescriptions in the prior-year period, restrained promotion of replacement of the company’s own systems in the dispensing pharmacy and medical systems businesses, and the end of demand related to welfare administration. The full-year forecast was revised downward because the company conservatively factored in the future market environment, extraordinary losses associated with the absorption-type merger of a subsidiary, and impairment losses in the nursing care and welfare systems business.

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