SHIFT (3697) investor relations material

Executive summary

• FY2026 net sales guidance raised to JPY 160.0bn, reflecting strong sales momentum, robust AI sales, and successful M&A integration, including Nisseicom.

• Q3 utilization declined to 90.1% (YoY -2.5pts) due to focus on AI and long-term projects, but is expected to recover in July.

• AI net sales surged 3.1x quarter-on-quarter, with high profitability in both With AI (43.0%) and Native AI (53.7%) projects.

• First-ever dividend introduced (JPY 4.1/share) with a 20% total payout ratio policy, marking the commencement of dividend payments.

• Adjusted net profit revised down to JPY 9.0bn due to a one-off impairment loss and higher costs.

Financial highlights

• Q3 net sales reached JPY 43.8bn (+29.9% YoY), with consolidated AI sales at JPY 7.9bn (18% of total).

• Adjusted operating profit for Q3 was JPY 5.2bn (+23.0% YoY), and adjusted operating margin was 11.9%.

• Cumulative FY2026 Q3 net sales at JPY 115.8bn (+21.4% YoY); adjusted net income at JPY 5.8bn (+26.4% YoY).

• Gross margin declined to 32.5% (YoY -2.6pts) due to lower utilization and higher hiring costs.

• SG&A ratio improved to 20.7% (YoY -1.5pts) from efficiency gains and AI BPaaS adoption.

Outlook and guidance

• FY2026 full-year net sales guidance raised to JPY 160.0bn; adjusted operating profit target remains JPY 20.0bn.

• FY2027 targets: net sales of JPY 190-200bn and adjusted operating profit of JPY 25.5-30.0bn.

• Utilization expected to recover to prior-year levels in July, supporting margin improvement.

• Adjusted profit attributable to owners of parent is forecast at JPY 9.0bn, with adjusted basic EPS of JPY 34.79.

• Dividend forecast for FY2026 is JPY 4.10 per share, marking the start of dividend payments.