UT Group Co (2146) investor relations material

Executive summary

• Achieved record-high quarterly operating income in 1Q FY3/2027, with significant margin improvement and net sales rising 1.2% year-over-year to ¥42.2 billion, driven by strong semiconductor sector demand despite automotive sector weakness.

• Operating income surged 42.4% year-over-year to ¥3.5 billion, reflecting improved gross margins and reduced SG&A expenses, especially in recruitment.

• Net income attributable to owners of the parent increased 44.9% year-over-year to ¥2,238 million.

• Strategic focus on optimizing human capital, reducing recruitment costs, launching new employee-focused digital platforms, and reorganizing to a single segment structure with a renewed medium-term business plan.

Financial highlights

• Net sales: ¥42.2 billion, up 1.2% year-over-year.

• Gross income: ¥8.36 billion, up 4.9% year-over-year; gross margin improved to 19.8%.

• Operating income: ¥3.5 billion, up 42.4% year-over-year; operating margin rose to 8.3%.

• EPS: ¥3.93, up 48.9% year-over-year; diluted EPS: ¥3.72.

• Net assets at quarter-end were ¥31,915 million, with an equity ratio of 40.1%.

Outlook and guidance

• FY3/2027 full-year guidance unchanged: net sales forecast at ¥170.0 billion (+1.9%), operating income at ¥10.0 billion (-5.8%), and net income attributable to owners of the parent of ¥6,100 million (-14.3%).

• EPS forecast for FY3/2027 is ¥10.72.

• Dividend payout ratio maintained at 100% with a minimum annual dividend of ¥10 per share.