TIS (3626) investor relations material

Executive summary

• Net sales rose 7.0% year-over-year to ¥150,111 million, driven by robust IT investment demand and digital transformation initiatives.

• Operating income increased 12.2% to ¥18,347 million, with operating margin improving by 0.5 percentage points to 12.2%.

• Orders received and order backlog both increased strongly, led by software development.

• Net income attributable to owners rose 15.1% to ¥14,409 million, though net income declined due to a deterioration in net extraordinary income/loss.

• The company completed a significant merger with INTEC Inc. and transitioned to a company with an Audit and Supervisory Committee.

Financial highlights

• Gross profit margin improved to 27.6% (up 0.1 percentage points year-over-year), and operating margin reached 12.2% (up 0.5 points year-over-year).

• Extraordinary income was ¥2,849 million (mainly from gain on sale of investment securities); extraordinary loss was ¥197 million.

• Basic earnings per share increased to ¥67.41 from ¥54.02 year-over-year.

• Net assets declined to ¥304,235 million, reflecting increased treasury shares from a major share repurchase.

• Total assets decreased to ¥524,657 million from ¥551,507 million at the previous fiscal year-end, mainly due to collections and securities redemption.

Outlook and guidance

• Full-year forecast unchanged: net sales expected to rise 3.9% to ¥620,000 million, operating income up 6.3% to ¥81,000 million.

• Net income forecast to increase 22.3% to ¥57,000 million, reflecting a ¥5 billion extraordinary gain.

• EPS CAGR of 10% and ROE over 16% targeted under the Medium-Term Management Plan.

• Operating margin forecast to improve to 13.1%; gross profit margin to 29.0%.

• Total payout ratio expected at 47.7%; dividend forecast for FY2027: annual ¥90.00 per share.