Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | O.B.System Inc. (5576) timely disclosure

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Direction

Improvement

Direction inferred from the company’s description.

Scale

Millions of yen (year-on-year change in operating profit)

Wording

Conditional

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Contents of this document

Financial results presentationSecond 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¥4,686 million+20.2%

Operating profit¥311 million+45.8%

Ordinary income¥332 million+43.6%

Net income¥291 million +36.2%net income attributable to owners of the parent

Selling, general and administrative expenses¥608 million

Gross Profit Margin

Rate19.6

Year-on-year change (points)1.4

Operating profit margin

Rate6.6

Year-on-year change (points)1.2

Results for the three months of the current quarter

Net Sales

¥2,428 million+13.1%

Gross profit

¥474 million

Gross Profit Margin

19.5 %

Selling, general and administrative expenses

¥262 million

Operating profit

¥211 million+21.4%

Operating profit margin

8.7 %

Full-year earnings forecast

Net Sales

¥10,000 million

Operating profit

¥835 million

Ordinary income

¥900 million

Net income

¥720 million net income attributable to owners of the parent

EPS

¥309.2

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。

Net Sales46.9%

Gross profit47.2%

Selling, general and administrative expenses54.6%

Operating profit37.3%

Ordinary income36.9%

Net income40.5%

EPS40.5%

What the company explained in this material

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

Progressing smoothly in line with the initial plan

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

Change in operating profit

Revenue-growth effect160

Margin Improvement80

Personnel cost variance-48

Increase in Expenses Due to Consolidation-62

Increase in R&D and Education Expenses-25

Increase in other SG&A expenses-7

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Expect higher personnel and outsourcing unit costs, increased new graduate recruitment and training expenses, and a concentration of earnings in the second half

New initiatives

Established the AX Promotion Office in January 2026
POCs and co-creation proposals for business partners using AI agents (2 projects underway)
Joint AI research with Osaka University
Sales of CLIP with AI functionality
Strengthening in-house training toward obtaining AI certifications

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

EPS¥125.3
Year on year against the same period last year+35.1%
Equity ratio75.8 %
Operating cash flow¥354 million
Year on year against the same period last year¥2 million in the same period of the previous year
Free cash flow¥153 million
Number of employees holding AI certifications150 People

Segment results

Single segmentSystems integration services

Financial Business

Percentage of revenue50.0%

Industrial and Distribution Services

Percentage of revenue28.3%

Social and Public Services

Percentage of revenue21.7%

Medium-term management plan targets

Target fiscal yearthe fiscal year ending March 2027

Net Sales¥10 billion

Operating profit margin10%

Gross Profit Margin20%

ROE13%

Financial targets

ROE target13%

Actual equity ratio75.8%

Market Size / Share

Domestic IT market size

¥346,954 hundred million 2029 forecast

Domestic IT Market CAGR6.4% (2024–2029)

IT talent shortageUp to approximately 800,000 people (2030, high-end scenario)

Number of employees

Number of Employees649 People

Change during the periodIncreased from 624 people as of March 2026

Hiring planNew graduate hiring record: 52 in April 2024, 49 in April 2025, and 46 in April 2026

Annual Dividend

Annual dividend amount¥125 per share

Interim Dividend¥60 per share

Year-end dividend¥65 per share

Payout ratio

40.4

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥4,686 million (YoY +20.2%)
Operating profit	¥311 million (YoY +45.8%)
Ordinary income	¥332 million (YoY +43.6%)
Net income	¥291 million (net income attributable to owners of the parent) (YoY +36.2%)
Gross Profit Margin	Rate 19.6 / Year-on-year change (points) 1.4
Operating profit margin	Rate 6.6 / Year-on-year change (points) 1.2
Selling, general and administrative expenses	¥608 million
Results for the three months of the current quarter	Net Sales ¥2,428 million (YoY +13.1%) / Gross profit ¥474 million / Gross Profit Margin 19.5 % / Selling, general and administrative expenses ¥262 million / Operating profit ¥211 million (YoY +21.4%) / Operating profit margin 8.7 %
Full-year earnings forecast	Net Sales ¥10,000 million / Operating profit ¥835 million / Ordinary income ¥900 million / Net income ¥720 million (net income attributable to owners of the parent) / EPS ¥309.2
Progress against full-year forecast	Net Sales 46.9% / Gross profit 47.2% / Selling, general and administrative expenses 54.6% / Operating profit 37.3% / Ordinary income 36.9% / Net income 40.5% / EPS 40.5%
Self-assessment against the plan	Progressing smoothly in line with the initial plan
Segment results	Single segment Systems integration services / Financial Business Percentage of revenue 50.0% / Industrial and Distribution Services Percentage of revenue 28.3% / Social and Public Services Percentage of revenue 21.7%
Breakdown of Factors Affecting the Change	Change in operating profit Revenue-growth effect 160 / Margin Improvement 80 / Personnel cost variance -48 / Increase in Expenses Due to Consolidation -62 / Increase in R&D and Education Expenses -25 / Increase in other SG&A expenses -7
Key KPIs	Indicator name EPS / Value ¥125.3 / Year on year against the same period last year ¥35.1, Indicator name Equity ratio / Value 75.8 % / Year on year against the same period last year Not disclosed, Indicator name Operating cash flow / Value ¥354 million / Year on year against the same period last year ¥2 million in the same period of the previous year, Indicator name Free cash flow / Value ¥153 million / Year on year against the same period last year Not disclosed, Indicator name Number of employees holding AI certifications / Value 150 People / Year on year against the same period last year Not disclosed
Number of employees	Number of Employees 649 People / Change during the period Increased from 624 people as of March 2026 / Hiring plan New graduate hiring record: 52 in April 2024, 49 in April 2025, and 46 in April 2026
Assumptions Underlying the Business Outlook	Expect higher personnel and outsourcing unit costs, increased new graduate recruitment and training expenses, and a concentration of earnings in the second half
Medium-term management plan targets	Target fiscal year the fiscal year ending March 2027 / Net Sales ¥10 billion / Operating profit margin 10% / Gross Profit Margin 20% / ROE 13%
Financial targets	ROE target 13% / Actual equity ratio 75.8%
Annual Dividend	Annual dividend amount ¥125 per share / Interim Dividend ¥60 per share / Year-end dividend ¥65 per share
Payout ratio	40.4
Market Size / Share	Domestic IT market size Value ¥346,954 hundred million (2029 forecast) / Domestic IT Market CAGR 6.4% (2024–2029) / IT talent shortage Up to approximately 800,000 people (2030, high-end scenario)
New initiatives	Established the AX Promotion Office in January 2026, POCs and co-creation proposals for business partners using AI agents (2 projects underway), Joint AI research with Osaka University, Sales of CLIP with AI functionality, Strengthening in-house training toward obtaining AI certifications

Items this document does not state (7)

Unit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.

Revenue increased due to the expanded scope of consolidation and solid orders across each business area. Selling, general and administrative expenses increased due to higher personnel expenses, research and development expenses, goodwill amortization and other factors, but the increase was absorbed by the effect of higher revenue and an improved gross profit margin.

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