WingArc1st (4432) Investor Day 2025 presentation summary

Financial outlook and medium-term progress

• FY2026 revenue forecast 31,200 and EBITDA 10,460, in ¥ million; management expects full-year sales and profits to exceed FY2025, with results weighted to H2.

• Revenue and EBITDA exceeded initial medium-term projections, supported by IT investment led by large corporations; FY2026 forecasts are revenue 312 and EBITDA 105, in ¥100 million.

• FY2025 results: cloud growth 22.5% YoY, recurring revenue ratio 60.9%, and EBITDA ¥9.65 billion; FY2026 plan: 34.6%, 65.7%, and ¥10.46 billion, respectively.

• FY2027 medium-term targets are cloud growth CAGR of 40% over five years, recurring revenue ratio 75%, and EBITDA ¥12 billion.

Profitability and recurring revenue

• FY2026 company-wide EBITDA margin forecast 33.5%; organic margin, excluding M&A-related figures such as TRYSERVE and WingArcNEX, forecast at 35.6%.

• Recurring revenue CAGR for FY2022–FY2026: 14% overall, 28% for cloud, 38% for subscriptions, and 7% for maintenance.

• Group-wide cost management, portfolio review, and synergy creation with acquired subsidiaries are priorities for improving profitability.

Capital allocation and shareholder returns

• Medium-term capital allocation progress for FY2024–FY2026 includes ¥3.9 billion for growth M&A/investments, ¥2.4 billion for capital investment, and ¥5.2 billion for loan repayment.

• Dividends reached ¥9.9 billion against a medium-term plan of over ¥10 billion; dividend progress is ahead of plan as profits rise.

• Since the October 2023 policy change, the payout ratio has remained above 50%; the policy targets a 50% total payout ratio.

• Priority investment areas include cloud services, public-sector solutions, AI technology, and businesses that complement existing strengths around large-enterprise core systems.