TKC Corporation (9746) investor relations material

Executive summary

• Consolidated turnover, operating profit, ordinary profit and parent net profit reached records; profits rose for the 12th consecutive year.

• All 164 municipalities completed migration to standard-compliant systems on Gov-Cloud by the national deadline; related demand materially supported FY26 results.

Financial highlights

• Consolidated turnover was ¥87,541m (+4.9%); operating profit ¥17,845m (+10.6%); ordinary profit ¥18,502m (+11.5%); parent net profit ¥13,551m (+12.0%).

• Non-consolidated turnover was ¥83,088m (+5.3%); operating profit ¥17,485m (+12.8%); ordinary profit ¥18,376m (+13.6%); net profit ¥13,557m (+14.4%).

• Gross profit rose to ¥61,782m from ¥56,606m; EPS was ¥269.87 versus ¥234.31, and comprehensive income was ¥17,190m versus ¥15,061m.

• Operating cash flow was ¥20,552m, investing cash flow negative ¥7,964m, financing cash flow negative ¥14,730m, and year-end cash and equivalents ¥31,438m.

Outlook and guidance

• FY27 forecast: turnover ¥87,600m (+0.1%), operating profit ¥17,900m (+0.3%), ordinary profit ¥18,550m (+0.3%) and parent net profit ¥12,800m (-5.5%).

• Parent net profit is expected to decline as wage-increase tax deductions end; local-government migration-related revenue is also expected to recede after its FY26 peak.

• Growth drivers include OMS Agent and FX Agent monetization, Gov-Cloud operational support outsourcing, and revised local-government software pricing.

• FY28 plan: turnover ¥87,850m and ordinary profit ¥18,600m; excluding special factors, all segments are expected to grow.