Densan System Holdings Co (4072) investor relations material

Executive summary

• Achieved 19 consecutive first halves of revenue growth, led by the Information Services segment and strong Google-related business.

• Net sales for the six months ended June 30, 2026, rose 8.1% year-over-year to ¥34,879 million, with operating profit up 22.3% to ¥2,007 million and profit attributable to owners of parent up 19.9% to ¥1,501 million.

• Comprehensive income increased 18.9% year-over-year to ¥1,486 million.

• Operating profit and net income grew year-over-year, absorbing higher labor and procurement costs.

• Full-year revenue and profit targets are on track, with forecasts unchanged.

Financial highlights

• Net sales for 2Q cumulative: ¥34,879 million, up 8.1% year-over-year.

• Operating profit: ¥2,007 million, up 22.3% year-over-year; profit margin rose to 5.8%.

• Ordinary profit: ¥2,194 million, up 19.0% year-over-year.

• Net income: ¥1,501 million, up 19.9% year-over-year.

• Total assets increased to ¥78,906 million as of June 30, 2026, mainly due to a rise in money trusts.

Outlook and guidance

• Full-year net sales forecast: ¥70,000 million; operating profit: ¥3,650 million; net income: ¥2,620 million.

• Revenue growth expected to decelerate due to a high baseline from prior GIGA School projects.

• Operating income to decrease as R&D investments in blockchain payment infrastructure expand.

• Net income forecasted to decline year-over-year as tax rates normalize after one-time gains in FY2025.

• Annual dividend forecast is ¥100 per share.