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Presentation materials for financial results9746TKC CorporationInformation and Communications, Services and Others

Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending September 2026

In the second quarter of the fiscal year ending September 2026, consolidated net sales, operating income, ordinary income and net income all exceeded the year-earlier period, while net sales, operating income and ordinary income reached record highs. Operating income in the accounting firm business declined due to higher personnel expenses and other factors, while one-time revenue from migration support in the local government business substantially boosted overall results.

Worth reading
47Recurring
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
19.4
% (year-on-year change in consolidated net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending September 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥46,825 million+19.4%
Operating profit¥11,126 million+28.2%
Ordinary income¥11,437 million+29.0%
Net income¥7,961 million+26.1%
Full-year earnings forecast
Net Sales
¥85,500 million
Ordinary income
¥17,100 million
Annual Dividend
¥110
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • System migration support fees from the local government business¥7,231 million
    ChangeIncreased
  • Higher personnel expenses in the accounting firm business
    ChangeFactors reducing profit
New initiatives
  • AI-driven system development and a company-wide project to establish GitHub Copilot across the organization
  • Provide AI licenses to approximately 1,000 engineers across the company
  • Begin rolling out AI-enabled TKC systems from July 2026
  • Launch Disaster Fast Link, an emergency-response service operated by Japan Finance Corporation, the TKC National Association and TKC
  • Begin sending and receiving Peppol invoices with Germany's DATEV
  • Bring forward IT investments and secure a stable supply of heavy fuel oil in response to the situation in the Middle East
Key KPIsA metric the company considers important as a management benchmark.
  • Number of local authorities completing migration164 Organization
    Year on year against the same period last year2 local authorities in the year-earlier period (eligible for migration support)
  • Number of customer municipalities receiving Government Cloud migration support96 Organization
  • Number of financial institutions using the TKC Monitoring Information Service500 banks and above
  • Number of cases using the TKC Monitoring Information Service370,000 over downloads
  • Number of corporate tax returns filed electronically through TKC systems654,000 companies or more
  • Number of TKC members11,600 People
  • Number of companies using the Monthly Flash Financial Results Service20,000 companies or more
    Year on year against the same period last yearExceeded the milestone within one year of the service launch
Segment results
  • Accounting firm business
    Net Sales¥26,508 million (YoY +3.9%)
    Operating profit¥5,443 million (YoY -22.2%)
  • Local government business
    Net Sales¥18,789 million (YoY +54.6%)
    Operating profit¥5,671 million (YoY +237.5%)
  • Printing business
    Net Sales¥1,527 million (YoY -1.9%)
    Operating profit¥3 million
  • Adjustments
    Operating profit¥7 million (YoY +57.1%)
Medium-term management plan targets
  • Target fiscal yearFiscal year 61
    Consolidated revenue
    ¥82,200 million
    Consolidated ordinary income
    ¥17,100 million
  • Target fiscal yearFiscal year 62
    Consolidated revenue
    ¥83,900 million
    Consolidated ordinary income
    ¥17,350 million
Market Size / Share
  • Adoption rate of group tax return filing systems and other services among companies with capital of more than ¥100 million46 %
  • TKC consolidated group solutions' share among listed companies44 %
  • Market share of legal information databases100 %
Number of employees
Changes during the period and hiring planStepped-up hiring
Annual Dividend
Annual
¥110
Interim
¥55
End of period
¥55
Acquisition of treasury shares
  • Number of shares acquired1,100,000 Shares
    Total acquisition priceApproximately ¥4.4 billion
    Period16 February 2026
    Number of shares cancelled1,100,000 Shares
    Cancellation date27 February 2026
  • Number of shares acquired400,000 Shares
    Total acquisition priceApproximately ¥1.5 billion
    Period12 March 2026
    Number of shares cancelled400,000 Shares
    Cancellation date31 March 2026
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending September 2026
Net Sales¥46,825 million (YoY +19.4%)
Operating profit¥11,126 million (YoY +28.2%)
Ordinary income¥11,437 million (YoY +29.0%)
Net income¥7,961 million (YoY +26.1%)
Full-year earnings forecastNet Sales ¥85,500 million / Ordinary income ¥17,100 million / Annual Dividend ¥110
Segment resultsSegment Accounting firm business / Net Sales ¥26,508 million (YoY +3.9%) / Operating profit ¥5,443 million (YoY -22.2%), Segment Local government business / Net Sales ¥18,789 million (YoY +54.6%) / Operating profit ¥5,671 million (YoY +237.5%), Segment Printing business / Net Sales ¥1,527 million (YoY -1.9%) / Operating profit ¥3 million, Segment Adjustments / Net Sales Not disclosed / Operating profit ¥7 million (YoY +57.1%)
Breakdown of Factors Affecting the ChangeFactors System migration support fees from the local government business / Amount ¥7,231 million / Change Increased, Factors Higher personnel expenses in the accounting firm business / Amount Not disclosed / Change Factors reducing profit
Key KPIsIndicator Number of local authorities completing migration / Value 164 Organization / Year on year against the same period last year 2 local authorities in the year-earlier period (eligible for migration support), Indicator Number of customer municipalities receiving Government Cloud migration support / Value 96 Organization / Year on year against the same period last year Not disclosed, Indicator Number of financial institutions using the TKC Monitoring Information Service / Value 500 banks and above / Year on year against the same period last year Not disclosed, Indicator Number of cases using the TKC Monitoring Information Service / Value 370,000 over downloads / Year on year against the same period last year Not disclosed, Indicator Number of corporate tax returns filed electronically through TKC systems / Value 654,000 companies or more / Year on year against the same period last year Not disclosed, Indicator Number of TKC members / Value 11,600 People / Year on year against the same period last year Not disclosed, Indicator Number of companies using the Monthly Flash Financial Results Service / Value 20,000 companies or more / Year on year against the same period last year Exceeded the milestone within one year of the service launch
Number of employeesNumber of Employees Not disclosed / Changes during the period and hiring plan Stepped-up hiring
Medium-term management plan targetsTarget fiscal year Fiscal year 61 / Consolidated revenue ¥82,200 million / Consolidated ordinary income ¥17,100 million, Target fiscal year Fiscal year 62 / Consolidated revenue ¥83,900 million / Consolidated ordinary income ¥17,350 million
Annual DividendAnnual ¥110 / Interim ¥55 / End of period ¥55
Acquisition of treasury sharesNumber of shares acquired 1,100,000 Shares / Total acquisition price Approximately ¥4.4 billion / Period 16 February 2026 / Number of shares cancelled 1,100,000 Shares / Cancellation date 27 February 2026, Number of shares acquired 400,000 Shares / Total acquisition price Approximately ¥1.5 billion / Period 12 March 2026 / Number of shares cancelled 400,000 Shares / Cancellation date 31 March 2026
Market Size / ShareIndicator Adoption rate of group tax return filing systems and other services among companies with capital of more than ¥100 million / Value 46 %, Indicator TKC consolidated group solutions' share among listed companies / Value 44 %, Indicator Market share of legal information databases / Value 100 %
New initiativesAI-driven system development and a company-wide project to establish GitHub Copilot across the organization, Provide AI licenses to approximately 1,000 engineers across the company, Begin rolling out AI-enabled TKC systems from July 2026, Launch Disaster Fast Link, an emergency-response service operated by Japan Finance Corporation, the TKC National Association and TKC, Begin sending and receiving Peppol invoices with Germany's DATEV, Bring forward IT investments and secure a stable supply of heavy fuel oil in response to the situation in the Middle East
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsPayout ratioCapital 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.

In the local government business, one-time revenue associated with providing support to 96 local authorities for compliance with standard-specification systems and migration to the Government Cloud was a major driver of higher revenue and earnings. In the accounting firm business, the number of companies using OMS Cloud and the FX Cloud series increased, while operating income declined due to higher personnel expenses resulting from increased company-wide performance-linked bonuses and stepped-up hiring.

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Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending September 2026 | TKC Corporation (9746) timely disclosure | Komori