The FY2027 full-year plan, weighted toward the second half, will be tested by profit progress in FY2027-H1

Revenue in Q1 of the fiscal year ending March 2027 was ¥2,424 million, representing progress of 25.5% against the full-year forecast of ¥9,500 million. This was slightly above the 25% share of the year elapsed. Operating profit, however, was ¥101 million, or 11.2% of the ¥900 million full-year forecast; ordinary profit was ¥90 million, or 11.1%; and quarterly net income attributable to owners of the parent was ¥31 million, or just 6.9%. Revenue is running ahead of plan, but profit is tracking a plan weighted toward the second half, as the company expects. At this stage, full-year achievement cannot be assessed based on revenue alone.

In its responses to anticipated questions for Q1, the company indicated that progress in each level of profit for the first half would be approximately 20–25%, with most profit to be recorded in the second half. Applying this to the full-year forecasts gives a first-half operating profit of ¥180–225 million, ordinary profit of ¥162–203 million, and net income attributable to owners of the parent of ¥90–113 million as reference ranges. After deducting Q1 actual results, standalone Q2 operating profit of approximately ¥79–124 million, ordinary profit of approximately ¥72–113 million, and net income of approximately ¥59–82 million would be required.

The full-year forecasts for the fiscal year ending March 2027 are revenue of ¥9,500 million, operating profit of ¥900 million, ordinary profit of ¥810 million, and net income of ¥450 million. As of Q1, the company had not revised its earnings forecasts. The increase in operating profit from ¥727 million in the fiscal year ended March 2026 to ¥900 million is 23.8%. Although this cannot simply be equated with the 25–30% operating profit CAGR from the fiscal year ended March 2026 through the fiscal year ending March 2029 shown in the earnings presentation, first-half profit progress will provide an initial check on the medium-term growth trajectory. The EC consulting business is expected to be particularly weighted toward the second half, so the substance of the profit dependent on the second half needs to be examined.

At the next results announcement, we will check not only consolidated progress but also each segment’s contribution to first-half profit: the marketing business, investment business, and EC consulting business. While the timeline of recording most profit in the second half has been indicated, the company has not sufficiently disclosed its first-half profit plans by segment, the monthly timing of project execution, or the specific amount of risk incorporated into the full-year forecasts. The annual dividend forecast of ¥36 has been maintained, and we will also assess whether the dividend increase policy can be maintained even if profit remains heavily weighted toward the second half.