Supplementary Explanatory Materials on Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | HOCHIKI CORPORATION (6745) timely disclosure

Worth reading

52Recurring

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

1125

¥ million (year-on-year increase in operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥51,894 million+6.8%

Operating profit¥5,432 million+26.1%

Ordinary income¥5,412 million+23.7%

Net income¥3,767 million +24.9%interim net income attributable to owners of the parent

Operating profit margin10.5

What the company explained in this material

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

Fire alarm equipment was above plan, maintenance fell short of plan, fire-extinguishing equipment was above the initial plan, and security equipment was above plan. The overall consolidated assessment was not disclosed.

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

Capturing domestic renewal demand and acquiring large-scale projects
Expanding sales in overseas markets
Increase in maintenance and repair work
Shift toward a contract mix that prioritises profitability
Expanded orders for security equipment and a higher proportion of highly profitable projects
Foreign exchange impactRevenue of ¥1,167 million and operating profit of ¥227 million (figures stated in the materials, calculated from the year-on-year changes and the difference excluding the foreign-exchange impact)

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

Exchange rate (JPY/USD)
Interim period of FY ending March 2026146.02
Interim period of FY ending March 2027159.49
Exchange rate (JPY/GBP)
Interim period of FY ending March 2026195.94
Interim period of FY ending March 2027214.16

New initiatives

The company will continue measures to expand orders, strengthen its sales and support structure, and review contracts with a focus on profitability. New investments, alliances, products and organisational changes were not disclosed.

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

Recurring-revenue business sales¥22,904 million
Year on year against the same period last year+14.7%
Recurring-revenue business as a percentage of domestic sales60.3 %
Year on year against the same period last yearUp 5.2pp
Overseas Sales¥13,896 million
Year on year against the same period last year+12.2%
Overseas sales as a percentage of consolidated revenue26.8 %
Year on year against the same period last yearUp 1.3pp
Orders received¥69,723 million
Year on year against the same period last year+9.7%
Order backlog¥47,640 million
Year on year against the same period last year+12.3%

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

Number of maintenance contractsDown year on year
Year on year against the same period last yearDecreased
Average maintenance contract priceHigher
Year on year against the same period last yearHigher

Segment results

Fire alarm systems
Net Sales33,662
Profit5,812
Revenue_yoy_pct12
Profit_yoy_pct46.4
Maintenance
Net Sales10,429
Profit2,323
Revenue_yoy_pct6.4
Profit_yoy_pct11.2
Fire-Extinguishing Equipment
Net Sales4,413
Profit516
Revenue_yoy_pct-26.9
Profit_yoy_pct-56.9
Security Equipment
Net Sales3,389
Profit517
Revenue_yoy_pct25.4
Profit_yoy_pct270.8

Financial targets

The actual equity ratio was 73.5%, while the target was not disclosed.

Market Size / Share

Domestic private non-residential construction investment
FY ending March 202712.2
Number of fire-protection properties in Japan
FY ending March 20264,300
Global fire alarm market size
FY ending March 20277,020
CAGR of the global fire alarm equipment market4.7 % fiscal year ending March 2024 to fiscal year ending March 2029

Orders received and order backlog

Orders received

¥69,723 million

Order backlog

¥47,640 million

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending March 2027
Net Sales	¥51,894 million (YoY +6.8%)
Operating profit	¥5,432 million (YoY +26.1%)
Ordinary income	¥5,412 million (YoY +23.7%)
Net income	¥3,767 million (interim net income attributable to owners of the parent) (YoY +24.9%)
Operating profit margin	10.5
Self-assessment against the plan	Fire alarm equipment was above plan, maintenance fell short of plan, fire-extinguishing equipment was above the initial plan, and security equipment was above plan. The overall consolidated assessment was not disclosed.
Segment results	Segment Fire alarm systems / Net Sales ¥33,662 million / Profit ¥5,812 million / Revenue_yoy_pct ¥12 million / Profit_yoy_pct ¥46.4 million, Segment Maintenance / Net Sales ¥10,429 million / Profit ¥2,323 million / Revenue_yoy_pct ¥6.4 million / Profit_yoy_pct ¥11.2 million, Segment Fire-Extinguishing Equipment / Net Sales ¥4,413 million / Profit ¥516 million / Revenue_yoy_pct ¥-26.9 million / Profit_yoy_pct ¥-56.9 million, Segment Security Equipment / Net Sales ¥3,389 million / Profit ¥517 million / Revenue_yoy_pct ¥25.4 million / Profit_yoy_pct ¥270.8 million
Breakdown of Factors Affecting the Change	Factors Capturing domestic renewal demand and acquiring large-scale projects / Amount Not disclosed, Factors Expanding sales in overseas markets / Amount Not disclosed, Factors Increase in maintenance and repair work / Amount Not disclosed, Factors Shift toward a contract mix that prioritises profitability / Amount Not disclosed, Factors Expanded orders for security equipment and a higher proportion of highly profitable projects / Amount Not disclosed, Factors Foreign exchange impact / Amount Revenue of ¥1,167 million and operating profit of ¥227 million (figures stated in the materials, calculated from the year-on-year changes and the difference excluding the foreign-exchange impact)
Key KPIs	Indicator name Recurring-revenue business sales / Value ¥22,904 million / Year on year against the same period last year ¥14.7 million, Indicator name Recurring-revenue business as a percentage of domestic sales / Value 60.3 % / Year on year against the same period last year Up 5.2pp, Indicator name Overseas Sales / Value ¥13,896 million / Year on year against the same period last year ¥12.2 million, Indicator name Overseas sales as a percentage of consolidated revenue / Value 26.8 % / Year on year against the same period last year Up 1.3pp, Indicator name Orders received / Value ¥69,723 million / Year on year against the same period last year ¥9.7 million, Indicator name Order backlog / Value ¥47,640 million / Year on year against the same period last year ¥12.3 million
Unit price and quantity metrics	Indicator name Number of maintenance contracts / Value Down year on year / Year on year against the same period last year Decreased, Indicator name Average maintenance contract price / Value Higher / Year on year against the same period last year Higher
Assumptions Underlying the Business Outlook	Item Exchange rate (JPY/USD) / Interim period of FY ending March 2026 146.02 / Interim period of FY ending March 2027 159.49, Item Exchange rate (JPY/GBP) / Interim period of FY ending March 2026 195.94 / Interim period of FY ending March 2027 214.16
Financial targets	The actual equity ratio was 73.5%, while the target was not disclosed.
Orders received and order backlog	Orders received ¥69,723 million / Order backlog ¥47,640 million
Market Size / Share	Market Domestic private non-residential construction investment / FY ending March 2027 12.2 Trillion yen (outlook), Market Number of fire-protection properties in Japan / FY ending March 2026 4,300 thousand cases, Market Global fire alarm market size / FY ending March 2027 7,020 USD million (outlook), Market CAGR of the global fire alarm equipment market / Value 4.7 % (fiscal year ending March 2024 to fiscal year ending March 2029)
New initiatives	The company will continue measures to expand orders, strengthen its sales and support structure, and review contracts with a focus on profitability. New investments, alliances, products and organisational changes were not disclosed.

Items this document does not state (14)

Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresKey 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.

The company cited the capture of domestic renewal demand, acquisition of large-scale projects, expansion of overseas sales, an increase in maintenance and repair work, a shift toward a contract mix that prioritises profitability, expanded orders for security equipment, and a greater proportion of highly profitable projects as factors contributing to higher revenue and profit. Operating profit margin also improved as the stock business expanded.

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