Rakus (3923) investor relations material

Executive summary

• Achieved a strong start to FY2027.3, exceeding internal plans for net sales and operating profit, with a record-high operating profit margin of 33.5% due to a shift to a pure-play cloud business.

• Net sales for Q1 were ¥14,210 million, up 0.9% year-over-year, with operating profit at ¥4,756 million, up 30.1%, and profit attributable to owners of parent at ¥14,631 million, up 313.6%, driven by extraordinary income from the IT Outsourcing Business transfer.

• Extraordinary income of approximately ¥16,685 million was recorded from the transfer of the IT Outsourcing Business, significantly boosting profit attributable to owners of parent.

• Launched new products, including "Raku Raku Business Card," and began integration with "Raku Raku Seisan."

• Announced plans to make Plus Alpha Consulting an equity-method affiliate and concluded a capital and business alliance with ROBOT PAYMENT Inc.

Financial highlights

• EBITDA rose 30.4% year-over-year to ¥5,166 million; operating profit increased 30.1% to ¥4,756 million.

• Profit attributable to owners of parent surged 313.6% year-over-year to ¥14,631 million, driven by extraordinary income.

• Operating profit margin reached a record 33.5%, up 7.5 points year-over-year, aided by reduced advertising costs.

• Basic earnings per share for the quarter were ¥41.32, reflecting the stock split.

• Comprehensive income for the quarter was ¥14,795 million, up 496.0% year-over-year.

Outlook and guidance

• Full-year guidance for FY2027.3 remains unchanged: net sales projected at ¥59,700 million and operating profit at ¥20,500 million, reflecting an 18.2% increase year-over-year.

• Profit attributable to owners of parent is forecast to nearly double to ¥25,200 million; EPS expected to rise 92.8% to ¥71.16.

• Medium-Term Management Plan targets 15%+ CAGR in Cloud Business sales, "Rule of 50" (sales growth + operating margin ≥50%), and ROE (excluding one-time effects) of 30%+.

• Guidance is under review to factor in capital policy impacts and potential additional shareholder return measures.

• Shareholder returns policy aims for a total payout ratio of 20%+ and consecutive dividend increases.