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Financial results presentation4828Business Engineering CorporationInformation and Communications, Services and Others

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027

In Q1 FY2027, revenue, operating profit and orders received exceeded the year-earlier levels, driven by the consolidation of 5 overseas subsidiaries and a substantial increase in mcframe license sales. Net income, however, declined because the gain on the sale of cross-shareholdings recognized in the previous year was no longer recorded.

Worth reading
70In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
12.3
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,781 million+12.3%
Operating profit¥1,910 million+10.5%
Ordinary income¥1,921 million+9.7%
Net income¥1,274 million-7.1%
Selling, general and administrative expenses¥1,486 million
Gross Profit Margin
Rate50.1%
Year-on-year change (points)Improved from 47.0% in the year-earlier period
Operating profit margin
Rate28.2%
Year-on-year change (points)Declined from 28.6% in the year-earlier period
Results for the three months of the current quarterRevenue of ¥6,781 million, gross profit of ¥3,396 million, operating profit of ¥1,910 million, ordinary profit of ¥1,921 million, net income attributable to owners of the parent of ¥1,274 million, and orders received of ¥7,214 million. All figures are for Q1 FY2027 alone.
Full-year earnings forecast
Net Sales
¥26,800 million
Operating profit
¥6,900 million
Ordinary income
¥6,900 million
Net income
¥4,600 million
Orders received
¥27,000 million
Annual Dividend
¥42 per share
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。The consolidated progress rates against the full-year forecasts are not disclosed. Against the first-half forecasts, progress was 51.4% for revenue, 55.4% for operating profit, 55.7% for ordinary profit, 55.4% for net income and 53.4% for orders received. Progress against the full-year revenue forecast was 25.3% in Q1, while progress against the full-year operating profit forecast was 27.7%.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily toward achieving the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue Growth¥349 million
  • Improvement in Gross Profit Margin¥205 million
  • Increase in SG&A expenses (strengthening sales activities and higher salary levels)¥-372 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Economic growth is expected to slow due to factors including the situation in the Middle East, while strategic digital investment appetite in the manufacturing sector is expected to remain strong. Numerical assumptions are not disclosed.
New initiatives
  • Plan to release the first version of the AI-enabled product mcframe Alchemist in Q4 FY2026
  • Accelerate development of AI capabilities for mcframe
  • Promote partner distribution of SaaS-based mcframe X
  • Expand and strengthen sales partners and expand overseas markets
  • Consolidate 5 overseas subsidiaries from the current fiscal year
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥7,214 million
    Year on year against the same period last year+17.0%
  • Solution Business order backlog¥4,973 million
    Year on year against the same period last year+1.9%
  • Product Business order backlog¥3,056 million
    Year on year against the same period last year+19.3%
  • System Support Business order backlog¥110 million
    Year on year against the same period last year+83.3%
  • Cumulative mcframe implementations1,131 companies
  • Cumulative number of countries in which mcframe has been deployed17 countries
  • EBITDA¥2,167 million
    Year on year against the same period last year+11.2%
Segment results
Solutions Business
Net Sales
¥3,935 million-1.4%
Operating profit
¥1,165 million-10.0%
Product Business
Net Sales
¥2,739 million+40.2%
Operating profit
¥1,159 million+52.9%
System Support Business
Net Sales
¥106 million+11.8%
Operating profit
¥131 million-5.1%
Medium-term management plan targets
Net Sales
¥33,000 million
Target fiscal yearFY30
Operating profit
¥10,000 million
Target fiscal yearFY30
Financial targets
ROE
FY26 forecast26.3%
FY2025 actual results33.2%
Equity ratio
FY26 Q172.0%
FY2025 actual results74.7%
Market Size / Share
Specific figures for market size and market share are not disclosed. The materials refer to mcframe's market advantage.
Orders received and order backlog
Orders received
¥7,214 million
Order backlog
Solutions Business
¥4,973 million
Product Business
¥3,056 million
System Support Business
¥110 million
Annual Dividend
Annual¥42.0 per share
Interim¥21.0 per share
End of period¥21.0 per share
Payout ratio
54.5%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥6,781 million (YoY +12.3%)
Operating profit¥1,910 million (YoY +10.5%)
Ordinary income¥1,921 million (YoY +9.7%)
Net income¥1,274 million (YoY -7.1%)
Gross Profit MarginRate 50.1% / Year-on-year change (points) Improved from 47.0% in the year-earlier period
Operating profit marginRate 28.2% / Year-on-year change (points) Declined from 28.6% in the year-earlier period
Selling, general and administrative expenses¥1,486 million
Results for the three months of the current quarterRevenue of ¥6,781 million, gross profit of ¥3,396 million, operating profit of ¥1,910 million, ordinary profit of ¥1,921 million, net income attributable to owners of the parent of ¥1,274 million, and orders received of ¥7,214 million. All figures are for Q1 FY2027 alone.
Full-year earnings forecastNet Sales ¥26,800 million / Operating profit ¥6,900 million / Ordinary income ¥6,900 million / Net income ¥4,600 million / Orders received ¥27,000 million / Annual Dividend ¥42 per share
Progress against full-year forecastThe consolidated progress rates against the full-year forecasts are not disclosed. Against the first-half forecasts, progress was 51.4% for revenue, 55.4% for operating profit, 55.7% for ordinary profit, 55.4% for net income and 53.4% for orders received. Progress against the full-year revenue forecast was 25.3% in Q1, while progress against the full-year operating profit forecast was 27.7%.
Self-assessment against the planProgressing steadily toward achieving the plan
Segment resultsSolutions Business Net Sales ¥3,935 million (YoY -1.4%) / Operating profit ¥1,165 million (YoY -10.0%) / Product Business Net Sales ¥2,739 million (YoY +40.2%) / Operating profit ¥1,159 million (YoY +52.9%) / System Support Business Net Sales ¥106 million (YoY +11.8%) / Operating profit ¥131 million (YoY -5.1%)
Breakdown of Factors Affecting the ChangeFactors Revenue Growth / Amount ¥349 million, Factors Improvement in Gross Profit Margin / Amount ¥205 million, Factors Increase in SG&A expenses (strengthening sales activities and higher salary levels) / Amount ¥-372 million
Key KPIsIndicator name Orders received / Value ¥7,214 million / Year on year against the same period last year +17.0%, Indicator name Solution Business order backlog / Value ¥4,973 million / Year on year against the same period last year +1.9%, Indicator name Product Business order backlog / Value ¥3,056 million / Year on year against the same period last year +19.3%, Indicator name System Support Business order backlog / Value ¥110 million / Year on year against the same period last year +83.3%, Indicator name Cumulative mcframe implementations / Value 1,131 companies / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of countries in which mcframe has been deployed / Value 17 countries / Year on year against the same period last year Not disclosed, Indicator name EBITDA / Value ¥2,167 million / Year on year against the same period last year +11.2%
Assumptions Underlying the Business OutlookEconomic growth is expected to slow due to factors including the situation in the Middle East, while strategic digital investment appetite in the manufacturing sector is expected to remain strong. Numerical assumptions are not disclosed.
Medium-term management plan targetsNet Sales ¥33,000 million / Operating profit ¥10,000 million
Financial targetsROE FY26 forecast 26.3% / FY2025 actual results 33.2% / Equity ratio FY26 Q1 72.0% / FY2025 actual results 74.7%
Annual DividendAnnual ¥42.0 per share / Interim ¥21.0 per share / End of period ¥21.0 per share
Payout ratio54.5%
Orders received and order backlogOrders received ¥7,214 million / Order backlog Solutions Business ¥4,973 million / Product Business ¥3,056 million / System Support Business ¥110 million
Market Size / ShareSpecific figures for market size and market share are not disclosed. The materials refer to mcframe's market advantage.
New initiativesPlan to release the first version of the AI-enabled product mcframe Alchemist in Q4 FY2026, Accelerate development of AI capabilities for mcframe, Promote partner distribution of SaaS-based mcframe X, Expand and strengthen sales partners and expand overseas markets, Consolidate 5 overseas subsidiaries from the current fiscal year
Items this document does not state (7)
Unit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresKey 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 and operating profit increased due to the consolidation of 5 overseas subsidiaries, substantial growth in mcframe license sales and an improvement in the gross profit margin. Net income declined, however, because the one-time gain on the sale of cross-shareholdings recognized in the previous year fell away.

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Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | Business Engineering Corporation (4828) timely disclosure | Komori