PCI Holdings (3918) investor relations material

Executive summary

• Achieved record-high profit attributable to owners of parent, with both net sales and operating profit growing year-over-year.

• Annual dividend increased by 13 yen to 57 yen, reflecting strong performance and a total payout ratio of 50%.

• Strategic focus on AI-driven development, cloud integration, and expanding proprietary solutions across business segments.

• Group management structure optimized through mergers and subsidiary transfers to enhance operational efficiency.

• Comprehensive income reached ¥1,170 million, up from ¥494 million in the prior year.

Financial highlights

• Net sales: 26,835 million yen (+4.2% YoY); operating profit: 1,558 million yen (+35.3% YoY); operating margin: 5.8%.

• Profit attributable to owners of parent: 1,129 million yen (+15.7% YoY); EBITDA: 1,887 million yen (+27.6% YoY).

• ROE improved to 12.1% (+1.0p YoY); ROIC rose to 10.6% (+2.7p YoY); EPS increased to 113.97 yen.

• Total assets: 16,023 million yen; equity ratio: 60.8%.

• Free cash flow: 1,140 million yen; cash at period end up by 520 million yen.

Outlook and guidance

• FY3/2027 forecast: Net sales to decrease by 2.1% YoY (due to Privatech consolidation change), but adjusted net sales to rise 6.3% YoY.

• Operating profit projected to increase 16.0% YoY (25.0% YoY on adjusted basis); operating margin to reach 6.9%.

• Dividend forecast for FY3/2027 set at 58 yen per share.

• Basic earnings per share forecast for FY2027 is 127.00 yen.

• Privatech Inc. will be excluded from consolidation from Q2 FY2027 and accounted for by the equity method.