M3 (2413) investor relations material

Executive summary

• Q1 FY2026 revenue rose 5% year-over-year to JPY 90,105 million, with most segments performing in line with expectations except for Overseas, which lagged.

• Operating profit declined 9% year-over-year to JPY 18,077 million, and profit before tax fell 5% to JPY 18,641 million.

• Net profit dropped 22% year-over-year to JPY 10,579 million, impacted by a one-time tax provision related to overseas dividends.

• Profit attributable to owners of the parent dropped 23.4% year-over-year to 9,074 million yen.

• Comprehensive income rose 13.5% year-over-year to 14,075 million yen.

Financial highlights

• Revenue: JPY 90,105 million (+5% YoY); Operating profit: JPY 18,077 million (-9% YoY); Net profit: JPY 10,579 million (-22% YoY, adjusted for one-time tax provision).

• Most segments met initial forecasts, but overall results were slightly below plan due to Overseas segment underperformance.

• Operating profit margin decreased as operating profit fell despite revenue growth.

• Basic earnings per share for the quarter were 13.60 yen, down from 17.44 yen year-over-year.

• Total assets as of June 30, 2026, were 634,803 million yen, with equity ratio stable at 64.0%.

Outlook and guidance

• Management maintains a medium- to long-term growth outlook, focusing on expanding business foundation and leveraging AI and M&A for sustainable growth.

• AI is expected to drive further operational efficiency and value creation, with over 100 AI-related projects underway.

• Full-year revenue forecast for fiscal year ending March 31, 2027, is 400,000 million yen, up 13.8% year-over-year.

• Operating profit is projected to reach 80,000 million yen, up 8.8% year-over-year.

• Profit attributable to owners of the parent is forecast at 53,000 million yen, up 7.9% year-over-year.