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Earnings presentation materials4832JFE Systems, Inc.Information and Communications, Services and Others

Overview of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

In the second quarter of the fiscal year ending March 2027, revenue, operating profit, ordinary profit and net income were below the year-earlier levels, reflecting lower revenue in the steel business following completion of the steelworks system refresh. Meanwhile, the business serving customers outside the Group grew, the full-year earnings forecast was unchanged from the previous announcement, and the interim dividend was increased from ¥22 to ¥24.

Worth reading
53Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-9.5
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥26,466 million-9.5%
Operating profit¥2,295 million-13.9%
Ordinary income¥2,396 million-11.5%
Net income¥1,528 million-13.4%
Selling, general and administrative expenses¥4,587 million
Full-year earnings forecast
Net Sales
¥60,000 million
Gross profit
¥15,560 million
Selling, general and administrative expenses
¥8,960 million
Operating profit
¥6,600 million
Ordinary income
¥6,800 million
Profit attributable to owners of the parent
¥4,380 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance is progressing in line with the full-year plan and as expected.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Steel business revenue impact¥-5.6 100 million
  • Other impacts from the steel business¥4.2 100 million
  • Revenue impact from the business serving customers outside the Group¥6.6 100 million
  • Other impacts from the business serving customers outside the Group¥-3 100 million
  • Selling Expenses¥-2.5 100 million
  • General and administrative expenses¥-3.3 100 million
New initiatives
  • Application of generative AI to the Company’s own products and services and to development and operations processes
  • Expansion of externally sold projects in the OT network and security fields
  • Expansion of the ERP business, with SAP and Microsoft core systems as growth drivers
  • Release of the cloud-based web procurement system Prociec Ver.1.3
  • Addition of an SAP integration simulation function to the J-CCOREs cost management system
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥25,952 million-8.3%
  • Order Backlog¥22,540 million-9.9%
  • ROE4.3 %-1.0%
  • EPS48.64 Yen
Segment results
  • Digital Manufacturing
    Net Sales¥1,193 million
  • ERP Solutions
    Net Sales¥2,037 million
  • Smart Solutions
    Net Sales¥2,978 million
  • Industrial Solutions
    Net Sales¥4,022 million
  • Steel
    Net Sales¥8,034 million
  • Platform
    Net Sales¥4,964 million
  • Subsidiaries
    Net Sales¥2,949 million
Medium-term management plan targets
Consolidated net sales for FY2026
¥600 100 million
Market Size / Share
FiBridge product seriesNo. 1 domestic product market share for 19 consecutive years
Orders received and order backlog
Orders received
¥25,952 million
Order backlog
¥22,540 million
Annual Dividend
¥70 per share
Interim24
End of period46
Payout ratio
50.2 %
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥26,466 million (YoY -9.5%)
Operating profit¥2,295 million (YoY -13.9%)
Ordinary income¥2,396 million (YoY -11.5%)
Net income¥1,528 million (YoY -13.4%)
Selling, general and administrative expenses¥4,587 million
Full-year earnings forecastNet Sales ¥60,000 million / Gross profit ¥15,560 million / Selling, general and administrative expenses ¥8,960 million / Operating profit ¥6,600 million / Ordinary income ¥6,800 million / Profit attributable to owners of the parent ¥4,380 million
Self-assessment against the planPerformance is progressing in line with the full-year plan and as expected.
Segment resultsSegment Digital Manufacturing / Net Sales ¥1,193 million / yoy_pct 13.2, Segment ERP Solutions / Net Sales ¥2,037 million / yoy_pct 8.5, Segment Smart Solutions / Net Sales ¥2,978 million / yoy_pct 7.4, Segment Industrial Solutions / Net Sales ¥4,022 million / yoy_pct 4.1, Segment Steel / Net Sales ¥8,034 million / yoy_pct -34, Segment Platform / Net Sales ¥4,964 million / yoy_pct 3.4, Segment Subsidiaries / Net Sales ¥2,949 million / yoy_pct -1.8
Breakdown of Factors Affecting the ChangeSteel business revenue impact ¥-5.6 100 million, Other impacts from the steel business ¥4.2 100 million, Revenue impact from the business serving customers outside the Group ¥6.6 100 million, Other impacts from the business serving customers outside the Group ¥-3 100 million, Selling Expenses ¥-2.5 100 million, General and administrative expenses ¥-3.3 100 million
Key KPIsOrders received ¥25,952 million (YoY -8.3%), Order Backlog ¥22,540 million (YoY -9.9%), ROE 4.3 % (YoY -1.0%), EPS 48.64 Yen
Medium-term management plan targetsConsolidated net sales for FY2026 ¥600 100 million
Annual Dividend¥70 per share
Payout ratio50.2 %
Orders received and order backlogOrders received ¥25,952 million / Order backlog ¥22,540 million
Market Size / ShareFiBridge product series No. 1 domestic product market share for 19 consecutive years
New initiativesApplication of generative AI to the Company’s own products and services and to development and operations processes, Expansion of externally sold projects in the OT network and security fields, Expansion of the ERP business, with SAP and Microsoft core systems as growth drivers, Release of the cloud-based web procurement system Prociec Ver.1.3, Addition of an SAP integration simulation function to the J-CCOREs cost management system
Items this document does not state (13)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition 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 in the steel business declined following completion of the steelworks system refresh, while revenue increased in the business serving customers outside the Group. Operating profit declined because the increase in selling, general and administrative expenses, including investments in sales strategies, employee training and internal systems, exceeded the increase in gross profit.

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Overview of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | JFE Systems, Inc. (4832) timely disclosure | Komori