Fiscal Year Ending May 2027 Q1 Earnings Presentation

Overview of Results

Consolidated results for Q1 were revenue of 816 million yen, operating loss of 142 million yen, ordinary loss of 125 million yen, and a quarterly net loss attributable to owners of parent of 81 million yen. The IoT-related business saw declines in both revenue and profit due to a preparation period for large orders received in the previous period, while the Industry 4.0 promotion business increased revenue but incurred a segment loss due to higher R&D expenses. From Q2 onward, revenue recognition from backlog is expected to progress, and results are expected to expand gradually. The full-year forecast remains unchanged at the time of announcement. An additional large IoT-related order of 747 million yen was received in September, raising backlog to 3,596 million yen. Base revenue progress secured 81% (4,123 million yen), and the company plans to secure 977 million yen of orders by around Q3.

Progress of Medium-Term Management Plan and Future Policy

The medium-term plan aims to expand base revenue of the IoT-related business to around 1,300 million yen and target over 3,000 million yen by 2030. Although dependence on a single South Korean customer is currently high, the company plans to diversify through domestic demand recovery, expansion of new product lines, new customer acquisition, and partner collaboration to improve PSR. Q1 progress was generally in line with the budget, and the company will aim to achieve the budget through revenue recognition of large orders and additional order intake.