OBIC Business Consultants (4733) investor relations material

Executive summary

• Net sales for the fiscal year rose 9.4% year-over-year to ¥51.4B, with operating profit up 8.4% to ¥23.6B and net profit up 12.0% to ¥18.1B.

• Cloud ARR increased 12.6% year-over-year, with cloud revenue up 20.8% and core cloud business up 26.4%.

• Recurring revenue ratio reached 83.9%, and contract retention rate remained high at 99.4%.

• Basic earnings per share increased to ¥241.20 from ¥215.27 year-over-year.

• The company operates as a single segment in the software business.

Financial highlights

• Net sales: ¥51.4B (up 9.4% year-over-year).

• Operating profit: ¥23.6B (up 8.4% year-over-year); ordinary profit: ¥25.2B (up 9.4%).

• Profit: ¥18.1B (up 12.0% year-over-year).

• Gross profit increased to ¥43.5B from ¥39.3B year-over-year.

• Cash and cash equivalents at year-end were ¥116.3B, down from ¥161.0B the previous year.

Outlook and guidance

• FY2027 net sales forecast: ¥57.5B (up 11.9% year-over-year), operating profit forecast: ¥26.5B (up 12.4%), and net profit forecast: ¥19.35B (up 6.7%).

• Basic earnings per share is projected at ¥257.39 for the next fiscal year.

• Dividend per share to increase from ¥111 to ¥130, with a payout ratio expected at 50.5%.

• Cloud shift to accelerate due to end of support for on-premise Bugyo 11 in April 2027.