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Presentation materials for financial results6730AXELL CORPORATIONElectrical Equipment and Precision Instruments

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue declined 4% year on year, while operating profit increased 14% and net income increased 26%, driven by higher sales of high-value-added products and an improved cost ratio. For the fiscal year ending March 2027, the company plans a modest increase in revenue but expects operating profit to decline 28% due to factors including market contraction.

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Presentation materials for financial resultsFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥14,656 million-4.0%
Operating profit¥1,664 million+14.0%
Ordinary income¥1,792 million+16.0%
Net income¥1,230 million+26.0%
Selling, general and administrative expenses¥3,044 million
Gross Profit Margin
Rate32%
Year-on-year change (points)Improved by 3 percentage points (from 29% to 32%)
Operating profit margin
Rate11%
Year-on-year change (points)Improved by 1 percentage point (from 10% to 11%)
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥15,000 million
Cost of sales
¥10,600 million
Gross profit
¥4,400 million
Selling, general and administrative expenses
¥3,200 million
Operating profit
¥1,200 million
Ordinary income
¥1,270 million
Profit attributable to owners of the parent
¥890 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in cost of salesDown ¥908 million
  • Increase in gross profitUp ¥321 million
  • Increase in selling, general and administrative expensesUp ¥117 million
  • Increase in R&D expensesUp ¥93 million
  • Increase in net development expensesUp ¥86 million
  • Increase in other administrative expensesUp ¥24 million
  • Increase in personnel expenses associated with the payment of performance-linked bonuses, among other factorsAmount not disclosed
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Graphics LSI market size for the fiscal year ending March 2027135 10,000 units
  • Graphics LSI units sold for the fiscal year ending March 202731 10,000 units
  • Graphics LSI reuse rate for the fiscal year ending March 202750 %
  • Graphics LSI market share for the fiscal year ending March 2027Approximately 55
  • Market size assumption for the fiscal year ending March 2031135 10,000 units
  • Market share assumption for the fiscal year ending March 203185%～90%
  • Reuse-rate assumption for the fiscal year ending March 2031At the same level as the fiscal year ending March 2026
New initiatives
  • Early transition to the monetization phase for the AI computing business
  • Continued development of next-generation products for graphics LSIs and memory modules
  • Establishment of a New Business Creation Office
  • Consideration of creating further new businesses and expanding the business portfolio
  • Optimization of selling prices in response to higher memory prices
Key KPIsA metric the company considers important as a management benchmark.
  • Graphics LSI market size153 10,000 units
    Year on year against the same period last year1.48 million units
  • Graphics LSI units sold51 10,000 units
    Year on year against the same period last year460,000 units
  • Graphics LSI reuse rate40 %
    Year on year against the same period last year35%
  • Graphics LSI market shareApproximately 55
    Year on year against the same period last yearApproximately 55%
  • Memory module units sold82 10,000 units
    Year on year against the same period last year650,000 units
  • Memory module reuse rate30 %
    Year on year against the same period last year45%
  • Memory module market shareApproximately 80
    Year on year against the same period last yearApproximately 80%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Mentions sales volumes, selling prices and sales volumes of higher-priced products. Specific unit-price figures are not disclosed.
Segment results
  • LSI Business
    Net Sales¥13,793 million (YoY -7.0%)
    Segment profit¥2,566 million (YoY -2.0%)
  • AI Business
    Net Sales¥862 million (YoY +96.0%)
    Segment profit¥-168 million
  • Adjustments
    Corporate Expenses¥-733 million
Financial targets
ROE
Actual results9.3 %
Market Size / Share
  • Graphics LSI1.53 million units
    ShareApproximately 55%
  • Memory modules
    ShareApproximately 80%
  • Target for the fiscal year ending March 20311.35 million units
    Share85%～90%
Orders received and order backlog
Order backlog¥14,929 million
Record dateEnd of March 2026
Capital expenditures
¥85 million
Annual Dividend
Fiscal year ending March 2026
Annual¥57 per share
End of period¥57 per share
Forecast for the fiscal year ending March 2027
Annual¥41 per share
End of period¥41 per share
Payout ratio
Fiscal year ending March 202650.1 %
Forecast for the fiscal year ending March 202749.6 %
Acquisition of treasury shares
¥227 million
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥14,656 million (YoY -4.0%)
Operating profit¥1,664 million (YoY +14.0%)
Ordinary income¥1,792 million (YoY +16.0%)
Net income¥1,230 million (YoY +26.0%)
Gross Profit MarginRate 32% / Year-on-year change (points) Improved by 3 percentage points (from 29% to 32%)
Operating profit marginRate 11% / Year-on-year change (points) Improved by 1 percentage point (from 10% to 11%)
Selling, general and administrative expenses¥3,044 million
Full-year earnings forecastSubject Fiscal year ending March 2027 / Net Sales ¥15,000 million / Cost of sales ¥10,600 million / Gross profit ¥4,400 million / Selling, general and administrative expenses ¥3,200 million / Operating profit ¥1,200 million / Ordinary income ¥1,270 million / Profit attributable to owners of the parent ¥890 million
Segment resultsSegment LSI Business / Net Sales ¥13,793 million (YoY -7.0%) / Segment profit ¥2,566 million (YoY -2.0%), Segment AI Business / Net Sales ¥862 million (YoY +96.0%) / Segment profit ¥-168 million, Segment Adjustments / Corporate Expenses ¥-733 million
Breakdown of Factors Affecting the ChangeFactors Decrease in cost of sales / Amount Down ¥908 million, Factors Increase in gross profit / Amount Up ¥321 million, Factors Increase in selling, general and administrative expenses / Amount Up ¥117 million, Factors Increase in R&D expenses / Amount Up ¥93 million, Factors Increase in net development expenses / Amount Up ¥86 million, Factors Increase in other administrative expenses / Amount Up ¥24 million, Factors Increase in personnel expenses associated with the payment of performance-linked bonuses, among other factors / Amount Amount not disclosed
Key KPIsIndicator name Graphics LSI market size / Value 153 10,000 units / Year on year against the same period last year 1.48 million units, Indicator name Graphics LSI units sold / Value 51 10,000 units / Year on year against the same period last year 460,000 units, Indicator name Graphics LSI reuse rate / Value 40 % / Year on year against the same period last year 35%, Indicator name Graphics LSI market share / Value Approximately 55 / Year on year against the same period last year Approximately 55%, Indicator name Memory module units sold / Value 82 10,000 units / Year on year against the same period last year 650,000 units, Indicator name Memory module reuse rate / Value 30 % / Year on year against the same period last year 45%, Indicator name Memory module market share / Value Approximately 80 / Year on year against the same period last year Approximately 80%
Unit price and quantity metricsMentions sales volumes, selling prices and sales volumes of higher-priced products. Specific unit-price figures are not disclosed.
Assumptions Underlying the Business OutlookItem Graphics LSI market size for the fiscal year ending March 2027 / Value 135 10,000 units, Item Graphics LSI units sold for the fiscal year ending March 2027 / Value 31 10,000 units, Item Graphics LSI reuse rate for the fiscal year ending March 2027 / Value 50 %, Item Graphics LSI market share for the fiscal year ending March 2027 / Value Approximately 55, Item Market size assumption for the fiscal year ending March 2031 / Value 135 10,000 units, Item Market share assumption for the fiscal year ending March 2031 / Value 85%～90%, Item Reuse-rate assumption for the fiscal year ending March 2031 / Value At the same level as the fiscal year ending March 2026
Financial targetsROE Actual results 9.3 %
Annual DividendFiscal year ending March 2026 Annual ¥57 per share / Interim Not disclosed / End of period ¥57 per share / Forecast for the fiscal year ending March 2027 Annual ¥41 per share / Interim Not disclosed / End of period ¥41 per share
Payout ratioFiscal year ending March 2026 50.1 % / Forecast for the fiscal year ending March 2027 49.6 %
Acquisition of treasury sharesAmount ¥227 million / Period Not disclosed
Capital expenditures¥85 million
Orders received and order backlogOrder backlog ¥14,929 million / Record date End of March 2026
Market Size / ShareMarket Graphics LSI / Market Size 1.53 million units / Share Approximately 55%, Market Memory modules / Market Size Not disclosed / Share Approximately 80%, Market Target for the fiscal year ending March 2031 / Market Size 1.35 million units / Share 85%～90%
New initiativesEarly transition to the monetization phase for the AI computing business, Continued development of next-generation products for graphics LSIs and memory modules, Establishment of a New Business Creation Office, Consideration of creating further new businesses and expanding the business portfolio, Optimization of selling prices in response to higher memory prices
Items this document does not state (8)
Results for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsKey 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.

For the fiscal year ended March 2026, sales volumes of high-value-added, higher-priced products increased in the graphics LSI and memory module businesses, reducing cost of sales, while research and development expenses and personnel expenses, including performance-linked bonuses, increased. For the fiscal year ending March 2027, the company expects revenue to increase by optimizing memory module selling prices, but expects gross profit and the profit margin to decline as the market contracts.

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Earnings Presentation Materials for the Fiscal Year Ending March 2026 | AXELL CORPORATION (6730) timely disclosure | Komori