Nippon Sanso (4091) investor relations material

Executive summary

• Revenue grew 14.9% year-over-year in Q1 FYE2027, reaching ¥361,763 million, driven by foreign currency effects, price management, and acquisitions.

• Core operating income rose 19.9% year-over-year to ¥54,688 million, with significant contributions from the U.S. and Oceania.

• Net income attributable to owners of the parent increased 54.0% to ¥43,716 million.

• Profitability improved in most regions except Japan, where electronics-related equipment and construction sales declined.

• New management structure implemented and additional investment in HYSYTECH approved.

Financial highlights

• Q1 revenue: ¥361.7bn (+14.9% YoY); core operating income: ¥54.6bn (+19.9% YoY); net income: ¥44.7bn (+53.0% YoY).

• Operating income (IFRS): ¥64.7bn (+42.1% YoY); EBITDA margin: 25.0% (up from 23.8%).

• Free cash flow: ¥38.2bn (up from ¥22.0bn YoY); CAPEX: ¥28.5bn.

• Basic EPS: ¥101.00 (up from ¥65.60 YoY); overseas sales ratio: 71.8%.

• Cash and cash equivalents at quarter-end were ¥166,648 million.

Outlook and guidance

• Full-year FYE2027 revenue forecast: ¥1,380.0bn (+1.5% YoY); core operating income: ¥208.0bn (+2.4% YoY).

• Net income attributable to owners of the parent projected at ¥131.0bn (+5.7% YoY); EPS forecast: ¥302.64.

• EBITDA margin expected to rise to 25.1%; core operating income margin to 15.1%.

• No revisions to previously announced forecasts.