Assess in H1 whether the weak start in operating profit is consistent with the full-year plan.

In Q1 of FY2027/3, revenue was ¥10,508 million, operating profit was ¥125 million, ordinary income was ¥58 million, and net income attributable to owners of the parent was ¥55 million. Year on year, revenue increased 2.0%, while operating profit declined 38.9%, ordinary income declined 65.1%, and net income declined 62.6%. The full-year forecasts are revenue of ¥45,200 million, operating profit of ¥1,160 million, ordinary income of ¥730 million, and net income of ¥470 million, representing Q1 progress rates of 23.2%, 10.8%, 7.9%, and 11.7%, respectively.

Revenue progress is close to the 25% share represented by one quarter of the fiscal year, while operating profit progress is substantially lower. In Q1 of the previous fiscal year, revenue was ¥10,305 million and operating profit was ¥204 million. Thus, despite a ¥203 million increase in revenue this year, operating profit declined by ¥79 million. The company’s operating profit plan of ¥1,160 million for the current fiscal year is ¥305 million above the previous year’s actual result of ¥855 million and assumes a 35.6% year-on-year increase. The issue is therefore whether the Q1 decline in profit can be recovered from Q2 onward.

If the full-year forecasts are simply divided between H1 and H2, the indicative H1 benchmarks are revenue of ¥22,600 million and operating profit of ¥580 million. Based on Q1 results, standalone Q2 revenue of ¥12,092 million and operating profit of ¥455 million would be required. However, these are not company-disclosed half-year forecasts, and neither seasonality nor the timing of revenue recognition by segment has been provided, so they cannot be used for a mechanical assessment of achievement.

Actual H1 results for FY2026/3 were revenue of ¥22,030 million and operating profit of ¥646 million. Accordingly, even if this year’s H1 revenue reaches the straight-line benchmark of ¥22,600 million, operating profit of ¥580 million would be below the prior-year H1 level. At the next results announcement, it will be necessary to review cumulative H1 results, standalone Q2 operating profit, the remaining profit required to meet the full-year plan, and whether the full-year forecast has been revised. As of now, the company has not disclosed an H1 plan or quarterly profit allocation.