Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | BUFFALO INC. (6676) timely disclosure

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Mixed performance

Direction inferred from the company’s description.

Scale

4.3

Year-on-year change in consolidated operating profit (%)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Results presentationSecond quarter (interim period) 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¥551 100 million-8.2%

Operating profit¥57 100 million+4.3%

Ordinary income¥57 100 million+2.6%

Net income¥43 100 million-6.2%

Full-year earnings forecast

Net Sales

¥1,110 100 million

Operating profit

¥86 100 million

Ordinary income

¥85 100 million

Profit attributable to owners of the parent

¥62 100 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。

Net Sales49.7%

Revenue from continuing operations49.6%

Revenue from the Airdog series and other products61.8%

Operating profit67.3%

Operating profit from continuing operations66.1%

Operating profit from the Airdog series and other products171.3%

Ordinary income68.1%

Profit attributable to owners of the parent69.9%

What the company explained in this material

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

Upside exceeding the initial assumptions

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

Revenue from continuing operations

Previous-period results¥503 100 million

Higher yields+¥1.3 billion

Large Deals+¥1.2 billion

Industrial applications+¥2.5 billion

Other subsidiaries+¥0.3 billion

Wholesale products-¥900 million

Actual results for the current fiscal year¥547 100 million

Operating profit from continuing operations

Previous-period results¥31 100 million

Higher yields+¥2.8 billion

Large Deals+¥500 million

Industrial applications+¥0.8 billion

Other subsidiaries+¥100 million

Wholesale products+¥100 million

Cost Reduction+¥200 million

Foreign exchange-¥2.0 billion

Actual results for the current fiscal year¥56 100 million

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

Assumed full-year exchange rate¥155.00

Actual exchange rate for the second quarter¥157.36

Foreign-exchange sensitivityA ¥1 appreciation of the yen increases operating profit by approximately ¥300 million per year

Second-half HDD/SSD component procurement pricesExpected to rise substantially

New initiatives

Launching the new Crowxis brand
Increasing the maximum share repurchase limit to ¥14 billion / 4 million shares
Establishing finance and valuation committees
Capital and business alliance with SECURE,INC.
Capital and business alliance with 株式会社ビットキー
Contract manufacturing of shop-brand PCs
Contract development of network video recorders for a major manufacturer

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

Japan-market fit score for enterprise NAS2,486 items
Japan-market fit score for enterprise routers2,446 items
Storage division satisfaction ranking1 rank
Year on year against the same period last yearRanked first overall for 3 consecutive years
Number of NAS models certified under the JC-STAR conformity labeling scheme113 Model number
Unit share of external hard disk drives63.5%
Year on year against the same period last yearDown from 64.0% in 2026
Unit share of recordable DVD drives56.2%
Year on year against the same period last yearAt the same level as 56.2% in 2026
NAS unit share70.2%
Wireless LAN unit share48.4%
Year on year against the same period last yearUp from 46.4% in 2026
Router unit share48.7%
Year on year against the same period last yearDown from 53.0% in 2026
Card reader unit share46.2%
Year on year against the same period last yearDown from 47.6% in 2026

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Selling prices increased. Units sold were generally in line with assumptions.

Segment results

Continuing operations

Net Sales

¥547 100 million

Year-on-year revenue growth+8.7%

Operating profit

¥56 100 million

Year-on-year change in operating profit+79.3%

Airdog series and other products

Net Sales

¥3 100 million

Year-on-year revenue growth-96.2%

Operating profit

¥1 100 million

Year-on-year change in operating profit-92.9%

Medium-term management plan targets

Target fiscal yearFiscal year ending March 2030

Net Sales¥130–150 billion

Operating profitAt least ¥10 billion

Net income for the current fiscal year¥7 billion or more

Operating profit margin7～9%

Consolidated ROEApproximately 15–20%

Capital Adequacy¥35–40 billion

Financial targets

Fiscal year ending March 2030

Consolidated ROEApproximately 15–20%

ROICApproximately 14–19%

ROAApproximately 8–10%

Assumptions for the fiscal year ending March 2027

Consolidated ROE15% or higher

ROICApproximately 15–17%

ROAApproximately 8–10%

Market Size / Share

Unit share of major PC peripherals

External hard disk drive63.5%

Recordable DVD drive56.2%

NAS70.2%

Wireless LAN48.4%

Router48.7%

Card reader46.2%

Number of employees

Number of Employees620 people, 980 people on a consolidated group basis

Record dateEnd of September 2026

Annual Dividend

Annual Dividend Forecast¥60/share

Interim Dividend¥30 per share

Fiscal year-end dividend forecast¥30 per share

Payout ratio

Consolidated payout ratio of 30–40% as a guideline

Acquisition of treasury shares

Buyback limitUp to ¥14 billion / 4 million shares

Period15 May 2026–30 April 2027

Method of acquisitionToSTNeT-3, tender offer, and on-auction market purchases

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending March 2027
Net Sales	¥551 100 million (YoY -8.2%)
Operating profit	¥57 100 million (YoY +4.3%)
Ordinary income	¥57 100 million (YoY +2.6%)
Net income	¥43 100 million (YoY -6.2%)
Full-year earnings forecast	Net Sales ¥1,110 100 million / Operating profit ¥86 100 million / Ordinary income ¥85 100 million / Profit attributable to owners of the parent ¥62 100 million
Progress against full-year forecast	Net Sales 49.7% / Revenue from continuing operations 49.6% / Revenue from the Airdog series and other products 61.8% / Operating profit 67.3% / Operating profit from continuing operations 66.1% / Operating profit from the Airdog series and other products 171.3% / Ordinary income 68.1% / Profit attributable to owners of the parent 69.9%
Self-assessment against the plan	Upside exceeding the initial assumptions
Segment results	Continuing operations Net Sales ¥547 100 million / Year-on-year revenue growth +8.7% / Operating profit ¥56 100 million / Year-on-year change in operating profit +79.3% / Airdog series and other products Net Sales ¥3 100 million / Year-on-year revenue growth -96.2% / Operating profit ¥1 100 million / Year-on-year change in operating profit -92.9%
Breakdown of Factors Affecting the Change	Revenue from continuing operations Previous-period results ¥503 100 million / Higher yields +¥1.3 billion / Large Deals +¥1.2 billion / Industrial applications +¥2.5 billion / Other subsidiaries +¥0.3 billion / Wholesale products -¥900 million / Actual results for the current fiscal year ¥547 100 million / Operating profit from continuing operations Previous-period results ¥31 100 million / Higher yields +¥2.8 billion / Large Deals +¥500 million / Industrial applications +¥0.8 billion / Other subsidiaries +¥100 million / Wholesale products +¥100 million / Cost Reduction +¥200 million / Foreign exchange -¥2.0 billion / Actual results for the current fiscal year ¥56 100 million
Key KPIs	Indicator name Japan-market fit score for enterprise NAS / Value 2,486 items / Year on year against the same period last year Not disclosed, Indicator name Japan-market fit score for enterprise routers / Value 2,446 items / Year on year against the same period last year Not disclosed, Indicator name Storage division satisfaction ranking / Value 1 rank / Year on year against the same period last year Ranked first overall for 3 consecutive years, Indicator name Number of NAS models certified under the JC-STAR conformity labeling scheme / Value 113 Model number / Year on year against the same period last year Not disclosed, Indicator name Unit share of external hard disk drives / Value 63.5% / Year on year against the same period last year Down from 64.0% in 2026, Indicator name Unit share of recordable DVD drives / Value 56.2% / Year on year against the same period last year At the same level as 56.2% in 2026, Indicator name NAS unit share / Value 70.2% / Year on year against the same period last year Not disclosed, Indicator name Wireless LAN unit share / Value 48.4% / Year on year against the same period last year Up from 46.4% in 2026, Indicator name Router unit share / Value 48.7% / Year on year against the same period last year Down from 53.0% in 2026, Indicator name Card reader unit share / Value 46.2% / Year on year against the same period last year Down from 47.6% in 2026
Unit price and quantity metrics	Selling prices increased. Units sold were generally in line with assumptions.
Number of employees	Number of Employees 620 people, 980 people on a consolidated group basis / Record date End of September 2026
Assumptions Underlying the Business Outlook	Assumed full-year exchange rate ¥155.00 / Actual exchange rate for the second quarter ¥157.36 / Foreign-exchange sensitivity A ¥1 appreciation of the yen increases operating profit by approximately ¥300 million per year / Second-half HDD/SSD component procurement prices Expected to rise substantially
Medium-term management plan targets	Target fiscal year Fiscal year ending March 2030 / Net Sales ¥130–150 billion / Operating profit At least ¥10 billion / Net income for the current fiscal year ¥7 billion or more / Operating profit margin 7～9% / Consolidated ROE Approximately 15–20% / Capital Adequacy ¥35–40 billion
Financial targets	Fiscal year ending March 2030 Consolidated ROE Approximately 15–20% / ROIC Approximately 14–19% / ROA Approximately 8–10% / Assumptions for the fiscal year ending March 2027 Consolidated ROE 15% or higher / ROIC Approximately 15–17% / ROA Approximately 8–10%
Annual Dividend	Annual Dividend Forecast ¥60/share / Interim Dividend ¥30 per share / Fiscal year-end dividend forecast ¥30 per share
Payout ratio	Consolidated payout ratio of 30–40% as a guideline
Acquisition of treasury shares	Buyback limit Up to ¥14 billion / 4 million shares / Period 15 May 2026–30 April 2027 / Method of acquisition ToSTNeT-3, tender offer, and on-auction market purchases
Market Size / Share	Unit share of major PC peripherals External hard disk drive 63.5% / Recordable DVD drive 56.2% / NAS 70.2% / Wireless LAN 48.4% / Router 48.7% / Card reader 46.2%
New initiatives	Launching the new Crowxis brand, Increasing the maximum share repurchase limit to ¥14 billion / 4 million shares, Establishing finance and valuation committees, Capital and business alliance with SECURE,INC., Capital and business alliance with 株式会社ビットキー, Contract manufacturing of shop-brand PCs, Contract development of network video recorders for a major manufacturer

Items this document does not state (9)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterNumber of stores and locationsRisk amount incorporated into the outlookCapital 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.

Continuing operations benefited from higher selling prices through appropriate pricing, the acquisition of larger-than-expected projects, increased demand for industrial applications, profit management for wholesale products, and cost reductions. Consolidated revenue declined following the termination of the exclusive distribution agreement for the Airdog series. In the second half, the company expects a substantial rise in HDD and SSD component procurement prices and yen depreciation to weigh on profit.

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