TKC Corporation (9746) investor relations material

Executive summary

• Achieved record highs in consolidated turnover, operating profit, ordinary profit, and net profit for the third quarter, driven by strong performance in both the Accounting Firm and Local Governments Business Divisions.

• Significant one-time revenue from supporting local governments' migration to standard-compliant systems and Gov-Cloud contributed to results.

• Upward revision of full-year forecasts and planned dividend increase for the 12th consecutive year.

• Minor impairment losses recorded due to planned transfer and sale of printing center assets.

• Both divisions saw increased cloud service usage and software turnover.

Financial highlights

• Consolidated turnover for the third quarter was ¥67,551 million, up 13.0% year-over-year; operating profit rose 26.8% to ¥16,532 million; ordinary profit increased 27.4% to ¥17,112 million; net profit grew 24.5% to ¥11,750 million.

• Net profit per share was ¥232.28 (vs. ¥182.48 YoY).

• Comprehensive income reached ¥14,403 million (+28.9% YoY).

• Non-consolidated turnover was ¥64,254 million (+14.0%), with operating profit up 30.1% and net profit up 27.5%.

• Equity ratio improved to 85.5% (from 83.6% YoY).

Outlook and guidance

• Full-year consolidated turnover is forecast at ¥86,800 million (+4.0% YoY), with operating profit projected at ¥17,600 million (+9.0% YoY), ordinary profit at ¥18,100 million (+9.1% YoY), and net profit attributable to owners at ¥12,850 million (+6.2% YoY).

• Net profit per share forecast: ¥248.93.

• Dividend planned at ¥126 per share annually, including a ¥16 special dividend, marking the 12th consecutive year of increases.