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How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Gross Profit MarginTemporarily decreased. Year-on-year change in percentage points: Not disclosed
Results for the three months of the current quarter
Number of inquiries115
Order win rate60.0%
Competitive bids lost46
Large-scale projects3 items
Renovation and expansion projects among large-scale projects2 items
Large-scale projects as a percentage of salesApproximately 35%
First-quarter operating profit progress against the full-year forecastApproximately 7%
Operating profit progress in the same period of the previous yearApproximately 13%
Full-year earnings forecast
Operating profit
¥1,951 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。
Operating profitApproximately 7%
Percentage of full-year operating profit to be recorded in the second halfApproximately 76%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance is tracking as expected. The company believes it can maintain its full-year outlook unchanged.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Orders and lost bids: All 46 projects were competitive bids lost and do not include shifts in completion timing.
- Measures to improve order intake: The company will promote the appropriate allocation of resources to projects and the sharing of order intake and lost-bid knowledge across the organization.
- Market trends: Customer-specific business circumstances had a greater impact than the overall market slowdown, and there has been no significant change in the proportion of relocation and renovation projects.
- Large-scale projects: The company accepts projects at strategic prices, prioritizing brand recognition and future potential, with the aim of opening accounts with major companies and building a track record of completed work.
- Full-year plan: The budget is focused on securing and recording projects in the second half, and the full-year outlook will remain unchanged.
- Shareholder returns: The company is prioritizing progressive dividends and raising the payout ratio to 40%; for now, it has adopted a year-end dividend-only structure.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Acceptance of large-scale projects at strategic prices
- Temporary decrease in the gross profit margin
- Impact of large-scale projects concentrated in the quarter
The company identifies the factors but does not state the amount attributable to each one.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Lead times for potential first- and second-half projectsBudget prepared taking lead times for potential first- and second-half projects into account. Figure: Not disclosed
New initiatives
- Appropriate allocation of resources to new projects
- Organization-wide sharing of order intake and lost-bid knowledge
- Strengthening organizational order-winning capabilities through team structures, a work design platform, and experience design
- Temporary strategic acceptance of projects to open accounts with major companies and build a track record of completed work
- Introduction of progressive dividends and an increase in the payout ratio to 40%
Key KPIsA metric the company considers important as a management benchmark.
- Number of inquiries for the branding business115 Engagements
- Order win rate60 %
- Competitive bids lost46 Engagements
- Large-scale projects completed during the quarter3 Engagements
- Renovation and expansion projects among large-scale projects2 Engagements
Annual Dividend
Year-end dividend only. Dividend per share: Not disclosedPayout ratio
Raised to 40%. Progressive dividends introduced from the current fiscal year| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Gross Profit Margin | Temporarily decreased. Year-on-year change in percentage points: Not disclosed |
| Results for the three months of the current quarter | Number of inquiries 115 / Order win rate 60.0% / Competitive bids lost 46 / Large-scale projects 3 items / Renovation and expansion projects among large-scale projects 2 items / Large-scale projects as a percentage of sales Approximately 35% / First-quarter operating profit progress against the full-year forecast Approximately 7% / Operating profit progress in the same period of the previous year Approximately 13% |
| Full-year earnings forecast | Operating profit ¥1,951 million |
| Progress against full-year forecast | Operating profit Approximately 7% / Percentage of full-year operating profit to be recorded in the second half Approximately 76% |
| Self-assessment against the plan | Performance is tracking as expected. The company believes it can maintain its full-year outlook unchanged. |
| Breakdown of Factors Affecting the Change | Factors Acceptance of large-scale projects at strategic prices / Amount Not disclosed, Factors Temporary decrease in the gross profit margin / Amount Not disclosed, Factors Impact of large-scale projects concentrated in the quarter / Amount Not disclosed |
| Key KPIs | Indicator name Number of inquiries for the branding business / Value 115 Engagements / Year on year against the same period last year Not disclosed, Indicator name Order win rate / Value 60 % / Year on year against the same period last year Not disclosed, Indicator name Competitive bids lost / Value 46 Engagements / Year on year against the same period last year Not disclosed, Indicator name Large-scale projects completed during the quarter / Value 3 Engagements / Year on year against the same period last year Not disclosed, Indicator name Renovation and expansion projects among large-scale projects / Value 2 Engagements / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Lead times for potential first- and second-half projects Budget prepared taking lead times for potential first- and second-half projects into account. Figure: Not disclosed |
| Annual Dividend | Year-end dividend only. Dividend per share: Not disclosed |
| Payout ratio | Raised to 40%. Progressive dividends introduced from the current fiscal year |
| Key points of the Q&A | Orders and lost bids: All 46 projects were competitive bids lost and do not include shifts in completion timing., Measures to improve order intake: The company will promote the appropriate allocation of resources to projects and the sharing of order intake and lost-bid knowledge across the organization., Market trends: Customer-specific business circumstances had a greater impact than the overall market slowdown, and there has been no significant change in the proportion of relocation and renovation projects., Large-scale projects: The company accepts projects at strategic prices, prioritizing brand recognition and future potential, with the aim of opening accounts with major companies and building a track record of completed work., Full-year plan: The budget is focused on securing and recording projects in the second half, and the full-year outlook will remain unchanged., Shareholder returns: The company is prioritizing progressive dividends and raising the payout ratio to 40%; for now, it has adopted a year-end dividend-only structure. |
| New initiatives | Appropriate allocation of resources to new projects, Organization-wide sharing of order intake and lost-bid knowledge, Strengthening organizational order-winning capabilities through team structures, a work design platform, and experience design, Temporary strategic acceptance of projects to open accounts with major companies and build a track record of completed work, Introduction of progressive dividends and an increase in the payout ratio to 40% |
Items this document does not state (17)
Net SalesOperating profitOrdinary incomeNet incomeOperating profit marginSelling, general and administrative expensesSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 company explained that the decline in operating profit was mainly due to the temporary decrease in the gross profit margin resulting from accepting large-scale projects at strategic prices to build relationships with major companies. Regarding the impact on inquiries, the company said that customer-specific business circumstances and restraints on capital investment associated with heightened tensions in the Middle East had a greater impact than the overall market slowdown.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.