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Earnings presentation6033EXTREME CO.,LTD.Information and Communications, Services and Others

Earnings Presentation for the Second Quarter of the Fiscal Year Ending March 2027

First-half revenue rose 9.9% year on year, reaching a record high for the first half. Operating profit, however, declined 18.9% due to increases in personnel and recruitment costs, M&A-related expenses and other items, while the full-year forecast was left unchanged.

Worth reading
85Important
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
-18.9
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,206 millions+9.9%
Operating profit¥539 millions-18.9%
Ordinary income¥616 millions-14.5%
Net income¥404 millions-11.7%
Gross Profit Margin31.7
Operating profit margin8.7
Results for the three months of the current quarter
Net Sales
¥3,110 millions
Operating profit
¥272 millions
Ordinary income
¥308 millions
Net income
¥224 millions
Full-year earnings forecast
Net Sales
¥13,000 millions
Operating profit
¥1,300 millions
Ordinary income
¥1,400 millions
Net income
¥920 millions
Operating profit margin
10 %
Year-end dividend
¥68 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。
Net Sales47.7%
Operating profit41.5%
Ordinary income44.0%
Net income44.0%
TSD revenue46.8%
Digital Talent Revenue46.2%
Contract Development Revenue48.0%
CPD Revenue73.8%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress was broadly in line with expectations. TSD was generally on plan, while CPD's full-year revenue progress was proceeding smoothly and ahead of expectations.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Customer Base¥165 millions
  • Revenue per customer¥97 millions
  • CPD¥-103 millions
  • Personnel expenses¥-519 millions
  • Recruiting-related expenses¥-120 millions
  • Development expenses¥-144 millions
  • Selling, general and administrative expenses¥25 millions
  • Other¥-62 millions
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Growth in the customer base, higher average customer spend, an increase in small-scale projects through the development of regional customers, and the use of CPD's existing IP. Numerical assumptions: Not disclosed
New initiatives
  • Opening of the Fukuoka Office
  • Sapporo office scheduled to open
  • Introduction of a Shareholder Benefits Program
  • Making ㈱アットアイパス and ㈱インフィズジャパン subsidiaries
  • Acquisition of the SES business of ㈱IT・アルファー
  • Development and live-action film adaptation of “LOLLIPOP CHAINSAW 2 Back2Back”
  • Announcement of a new game, “Langrisser: Sea of Swords”
Key KPIsA metric the company considers important as a management benchmark.
  • Customer Base370 companies
  • Revenue per customer¥802 10,000
    Year on year against the same period last year-2.9%
  • Number of active projects2,849 projects
    Year on year against the same period last year+306
  • Increase in Consolidated Employee Numbers208 people
    Year on year against the same period last year+208
  • Human resources42.3 %
    Year on year against the same period last year+42.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Customer Base370 companies
  • Revenue per customer¥802 10,000
  • Number of active projects2,849 projects
  • Project price¥70 10,000
Segment results
  • TSD
    Net Sales5,849
    Revenue Unit¥ millions
    Year-on-year revenue growth12.3
    Operating profit1,002
    Operating profit unit¥ millions
    Year-on-year change in operating profit20.5
  • Digital Talent
    Net Sales3,835
    Revenue Unit¥ millions
    Year-on-year revenue growth12.8
    Operating profit504
    Operating profit unit¥ millions
    Year-on-year change in operating profit37.1
  • Contract Development
    Net Sales2,014
    Revenue Unit¥ millions
    Year-on-year revenue growth11.3
    Operating profit498
    Operating profit unit¥ millions
    Year-on-year change in operating profit7.4
  • CPD
    Net Sales368
    Revenue Unit¥ millions
    Year-on-year revenue growth-16.6
    Operating profit159
    Operating profit unit¥ millions
    Year-on-year change in operating profit-39.2
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2029
Consolidated revenue¥20 billion
TSD¥18 billion
CPD¥2 billion
Operating profit margin12.5%
Financial targets
Actual equity ratio: 73.6%. Targets for ROE, ROIC and the D/E ratio, among others: Not disclosed
Number of stores and locations
Fukuoka office to open in September 2026. Sapporo office scheduled to open in November 2026. A network of 5 locations is planned. Total number of locations at fiscal year-end: Not disclosed
Number of employees
Consolidated headcount increased by 208 people year on year. Breakdown and fiscal year-end headcount: Not disclosed
Capital expenditures
¥83 millions
Annual Dividend
¥68 per share (year-end dividend)
Payout ratio
39.6%. The dividend policy is based on a dividend payout ratio of 20% or DOE of 5%.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥6,206 millions (YoY +9.9%)
Operating profit¥539 millions (YoY -18.9%)
Ordinary income¥616 millions (YoY -14.5%)
Net income¥404 millions (YoY -11.7%)
Gross Profit Margin31.7
Operating profit margin8.7
Results for the three months of the current quarterNet Sales ¥3,110 millions / Operating profit ¥272 millions / Ordinary income ¥308 millions / Net income ¥224 millions
Full-year earnings forecastNet Sales ¥13,000 millions / Operating profit ¥1,300 millions / Ordinary income ¥1,400 millions / Net income ¥920 millions / Operating profit margin 10 % / Year-end dividend ¥68 per share
Progress against full-year forecastNet Sales 47.7% / Operating profit 41.5% / Ordinary income 44.0% / Net income 44.0% / TSD revenue 46.8% / Digital Talent Revenue 46.2% / Contract Development Revenue 48.0% / CPD Revenue 73.8%
Self-assessment against the planProgress was broadly in line with expectations. TSD was generally on plan, while CPD's full-year revenue progress was proceeding smoothly and ahead of expectations.
Segment resultsSegment TSD / Net Sales 5,849 / Revenue Unit ¥ millions / Year-on-year revenue growth 12.3 / Operating profit 1,002 / Operating profit unit ¥ millions / Year-on-year change in operating profit 20.5, Segment Digital Talent / Net Sales 3,835 / Revenue Unit ¥ millions / Year-on-year revenue growth 12.8 / Operating profit 504 / Operating profit unit ¥ millions / Year-on-year change in operating profit 37.1, Segment Contract Development / Net Sales 2,014 / Revenue Unit ¥ millions / Year-on-year revenue growth 11.3 / Operating profit 498 / Operating profit unit ¥ millions / Year-on-year change in operating profit 7.4, Segment CPD / Net Sales 368 / Revenue Unit ¥ millions / Year-on-year revenue growth -16.6 / Operating profit 159 / Operating profit unit ¥ millions / Year-on-year change in operating profit -39.2
Breakdown of Factors Affecting the ChangeFactors Customer Base / Amount ¥165 millions, Factors Revenue per customer / Amount ¥97 millions, Factors CPD / Amount ¥-103 millions, Factors Personnel expenses / Amount ¥-519 millions, Factors Recruiting-related expenses / Amount ¥-120 millions, Factors Development expenses / Amount ¥-144 millions, Factors Selling, general and administrative expenses / Amount ¥25 millions, Factors Other / Amount ¥-62 millions
Key KPIsIndicator name Customer Base / Value 370 companies / Year on year against the same period last year Not disclosed, Indicator name Revenue per customer / Value ¥802 10,000 / Year on year against the same period last year ¥-2.9 10,000, Indicator name Number of active projects / Value 2,849 projects / Year on year against the same period last year +306 projects, Indicator name Increase in Consolidated Employee Numbers / Value 208 people / Year on year against the same period last year +208 people, Indicator name Human resources / Value 42.3 % / Year on year against the same period last year 42.3 %
Unit price and quantity metricsIndicator name Customer Base / Value 370 companies, Indicator name Revenue per customer / Value ¥802 10,000, Indicator name Number of active projects / Value 2,849 projects, Indicator name Project price / Value ¥70 10,000
Number of stores and locationsFukuoka office to open in September 2026. Sapporo office scheduled to open in November 2026. A network of 5 locations is planned. Total number of locations at fiscal year-end: Not disclosed
Number of employeesConsolidated headcount increased by 208 people year on year. Breakdown and fiscal year-end headcount: Not disclosed
Assumptions Underlying the Business OutlookGrowth in the customer base, higher average customer spend, an increase in small-scale projects through the development of regional customers, and the use of CPD's existing IP. Numerical assumptions: Not disclosed
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2029 / Consolidated revenue ¥20 billion / TSD ¥18 billion / CPD ¥2 billion / Operating profit margin 12.5%
Financial targetsActual equity ratio: 73.6%. Targets for ROE, ROIC and the D/E ratio, among others: Not disclosed
Annual Dividend¥68 per share (year-end dividend)
Payout ratio39.6%. The dividend policy is based on a dividend payout ratio of 20% or DOE of 5%.
Capital expenditures¥83 millions
New initiativesOpening of the Fukuoka Office, Sapporo office scheduled to open, Introduction of a Shareholder Benefits Program, Making ㈱アットアイパス and ㈱インフィズジャパン subsidiaries, Acquisition of the SES business of ㈱IT・アルファー, Development and live-action film adaptation of “LOLLIPOP CHAINSAW 2 Back2Back”, Announcement of a new game, “Langrisser: Sea of Swords”
Items this document does not state (6)
Selling, general and administrative expensesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey 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.

While higher revenue from TSD drove overall revenue growth, a pullback in CPD, increases in personnel and recruitment costs, and temporary increases in company-wide SG&A expenses, including M&A-related expenses, contributed to the decline in operating profit.

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.
Earnings Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | EXTREME CO.,LTD. (6033) timely disclosure | Komori