Dentsu Soken Inc. · TSE:4812
Dentsu Soken — H1 FY2026 Earnings Presentation
29 slides from Dentsu Soken's earnings presentation, Jul 29, 2026
Slide 1: Presentation Material of Financial Results for the First Half of FY2026
Presentation Material of Financial Results for the First Half of FY2026 (from January 1, 2026 to June 30, 2026) Note: This English translation is solely for reference purposes and not a legally definitive translation of the original Japanese text. In the event a difference arises regarding the meani
Slide 2: INDEX
INDEX 01 Outline of Financial Results for H1 FY2026 02 Forecasts for FY2026 03 Progress of the Medium-Term Management Plan 2
Slide 3: INDEX
INDEX 01 Outline of Financial Results for H1 FY2026 02 Forecasts for FY2026 03 Progress of the Medium-Term Management Plan 3
Slide 4: Summary
Summary for H1 FY2026 Net sales increased +10.5% and operating profit increased +15.8% YoY year on year, driven by Financial Solutions, Business Solutions, and Communication IT. Net sales increased +1.9% and operating profit increased +2.9% vs. Initial versus the initial forecast, with Business
Slide 5: Consolidated Results for H1 FY2026
Consolidated Results for H1 FY2026 H1 FY2026 H1 FY2025 H1 FY2026 YoY vs. Forecast Forecast (Unit: Millions of yen) Net sales 80,239 88,649 +8,410 +10.5% 87,000 +1,649 +1.9% Gross profit 28,785 32,153 +3,368 +11.7% - - - Gross profit margin 35.9% 36.3% +0.4pt - - - - Selling, general and administrati
Slide 6: Factors of Increase/Decrease in Operating Profit [YoY]
Factors of Increase/Decrease in Operating Profit for H1 FY2026 [YoY] Operating profit increased mainly due to increased sales despite an increase in SG&A expenses. (Unit: Billions of yen) Effect of increase in gross profit margin +0.35 YoY +1.68 SG&A expenses increased -1.68 Effect of increase in
Slide 7: Factors of Increase/Decrease in Operating Profit [vs. Forecast]
Factors of Increase/Decrease in Operating Profit for H1 FY2026 [vs. Forecast] Operating profit increased mainly due to increased sales. (Unit: Billions of yen) vs. Forecast +0.34 SG&A expenses decreased Effect of decrease in gross +0.18 Effect of increase profit margin in sales -0.44 +0.6 Factor o
Slide 8: Non-Operating Income/Expenses and Extraordinary Income/Losses
Non-Operating Income/Expenses and Extraordinary Income/Losses for H1 FY2026 H1 FY2025 H1 FY2026 YoY (Unit: Millions of yen) Operating profit 10,661 12,342 +1,681 +15.8% Non-operating income 470 588 +118 +25.1% Non-operating expenses 22 203 +181 +822.7% Ordinary profit 11,109 12,727 +1,618 +14.6% Ext
Slide 9: Net Sales and Operating Profit by Reportable Segment
Net Sales and Operating Profit by Reportable Segment for H1 FY2026 H1 FY2026 H1 FY2025 H1 FY2026 YoY vs. Forecast (Unit: Millions of yen) Forecast Financial Solutions Net sales 16,355 18,489 +2,134 +13.0% 18,700 -211 -1.1% Operating profit 1,905 2,545 +640 +33.6% - - - Operating margin 11.6% 13.8% +
Slide 10: Net Sales by Service Category and the Dentsu Group
Net Sales by Service Category and the Dentsu Group for H1 FY2026 Net Sales by Service Category H1 FY2026 H1 FY2025 H1 FY2026 YoY vs. Forecast (Unit: Millions of yen) Forecast Consulting Services 5,611 4,886 -725 -12.9% 5,900 -1,014 -17.2% Custom System Development 16,469 20,032 +3,563 +21.6% 18,900
Slide 11: Consolidated Results for Q2 FY2026 (April-June)
Consolidated Results for Q2 FY2026 (April-June) Q2 FY2025 Q2 FY2026 YoY (Apr-Jun) (Apr-Jun) (Unit: Millions of yen) Net sales 39,994 44,829 +4,835 +12.1% Gross profit 14,388 16,258 +1,870 +13.0% Gross profit margin 36.0% 36.3% +0.3pt - Selling, general and administrative expenses 9,505 10,505 +1,000
Slide 12: Net Sales and Operating Profit by Reportable Segment for Q2 FY2026
Net Sales and Operating Profit by Reportable Segment for Q2 FY2026 (April-June) Q2 FY2025 Q2 FY2026 YoY (Apr-Jun) (Apr-Jun) (Unit: Millions of yen) Financial Solutions Net sales 8,050 9,387 +1,337 +16.6% Operating profit 799 1,136 +337 +42.2% Operating margin 9.9% 12.1% +2.2pt - Business Solutions N
Slide 13: Net Sales by Service Category and the Dentsu Group for Q2 FY2026
Net Sales by Service Category and the Dentsu Group for Q2 FY2026 (April-June) Net Sales by Service Category Q2 FY2025 Q2 FY2026 YoY (Unit: Millions of yen) (Apr-Jun) (Apr-Jun) Consulting Services 2,344 1,888 -456 -19.5% Custom System Development 8,171 10,248 +2,077 +25.4% In-house Software 8,434 9,6
Slide 14: Net Sales by Industry for H1 FY2026
Net Sales by Industry for H1 FY2026 Composition H1 FY2025 H1 FY2026 YoY (Unit: Millions of yen) ratio H1 FY2026 Financial 16,173 18,886 +2,713 +16.8% 21.3% Banks 11,688 13,412 +1,724 +14.8% 15.1% Other financial institutions 4,484 5,473 +989 +22.1% 6.2% Manufacturing 34,069 34,943 +874 +2.6% 39.4% T
Slide 15: Orders Received and Order Backlog
Orders Received and Order Backlog for H1 FY2026 Orders Received Order Backlog Q2 Q2 As of As of H1 H1 FY2025 FY2026 YoY YoY June 30, June 30, YoY FY2025 FY2026 2025 2026 (Unit: Millions of yen) (Apr-Jun) (Apr-Jun) Reportable segment 41,528 50,757 +22.2% 90,046 108,872 +20.9% 69,666 96,562 +38.6% Fin
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet for H1 FY2026 December 31, June 30, Change from previous Main factors for the change 2025 2026 fiscal year-end (Unit: Millions of yen) Increase in advance payments to suppliers (+12,104) Increase in deposits paid (+9,429) Current assets 136,923 152,921 +15,998 Decrease in
Slide 17: Consolidated Cash Flows
Consolidated Cash Flows for H1 FY2026 H1 FY2025 H1 FY2026 YoY Main factors this period (Unit: Millions of yen) Profit before income taxes (12,727) Increase in trade payables (7,395) Cash flows from operating activities 11,890 13,783 +1,893 Increase in contract liabilities (6,303) Increase in advance
Slide 18: INDEX
INDEX 01 Outline of Financial Results for H1 FY2026 02 Forecasts for FY2026 03 Progress of the Medium-Term Management Plan Note: Forecasts of business results in this document are based on judgments and assumptions made in light of industry trends, customer conditions, and other information currentl
Slide 19: Forecast for FY2026
Forecast for FY2026 There are no changes from the announcement on February 12, 2026. Full year (Unit: Millions of yen) FY2025 (Full Year) FY2026 (Full Year) YoY Net sales 164,865 182,000 +17,135 +10.4% Operating profit 22,888 25,500 +2,612 +11.4% Operating margin 13.9% 14.0% +0.1pt - Ordinary prof
Slide 20: Net Sales Forecast by Reportable Segment for FY2026
Net Sales Forecast by Reportable Segment for FY2026 Full year (Unit: Millions of yen) FY2025 (Full Year) FY2026 (Full Year) YoY Financial Solutions 34,832 39,500 +4,668 +13.4% Business Solutions 28,013 31,000 +2,987 +10.7% Manufacturing Solutions 61,039 66,000 +4,961 +8.1% Communication IT 40,980 45
Slide 21: Net Sales Forecast by Service Category for FY2026
Net Sales Forecast by Service Category for FY2026 Full year (Unit: Millions of yen) FY2025 (Full Year) FY2026 (Full Year) YoY Consulting Services 10,872 12,000 +1,128 +10.4% Custom System Development 35,083 39,500 +4,417 +12.6% In-house Software 33,985 38,500 +4,515 +13.3% Third-party Software 54,20
Slide 22: INDEX
INDEX 01 Outline of Financial Results for H1 FY2026 02 Forecasts for FY2026 03 Progress of the Medium-Term Management Plan 22
Slide 23: Toward Achieving the Medium-Term Management Plan
Toward Achieving the Medium-Term Management Plan Halfway through the three-year medium-term management plan, progress has been generally on track To further increase our growth rate and profit margin toward 2027 and 2030, we will accelerate the promotion of three priority measures Consolidated N
Slide 24: Progress on Priority Measure ①: Reforms to Double the Productivity of In-house Software Business
Progress on Priority Measure ①: Reforms to Double the Productivity of In-house Software Business ‒ Business Model Transformation 2026: Model AI-driven development. 2027: Scale to real projects. 2030: Full deployment, double productivity As productivity doubles, we will accelerate in-house softwa
Slide 25: Progress on Priority Measure ①: Modeling
Progress on Priority Measure ①: Reforms to Double the Productivity of In-house Software Business ‒ Modeling Planning and developing candidate agents, along with an orchestrator, covering the full lifecycle of in-house software projects 2026: 11 agents in PoC as of H1, of which 1 has already ente
Slide 26: Progress on Priority Measure ①: Product AI-Enablement
Progress on Priority Measure ①: Reforms to Double the Productivity of In-house Software Business ‒ Product AI-Enablement Accelerating the implementation of AI functionality in existing in-house software and the development of AI options Product Status Product Status Low-code Development Platform,
Slide 27: Progress on Priority Measure ②: Defining a New Product Development Process Powered by Data and AI
Progress on Priority Measure ②: Defining a New Product Development Process Powered by Data and AI Completed architecture design for the “AI-Era Product Design and Development Platform” Built a prototype using drone design/development as a case study, with real iQUAVIS, CAE, and PLM data Curren
Slide 28: Progress on Priority Measure ③: Strengthening Financial Industry Solutions and Providing Programmable Payments
Progress on Priority Measure ③: Strengthening Financial Industry Solutions and Providing Programmable Payments To increase the proportion of in-house software in the Formed a business alliance with UK-based Quant Network, a Financial Solutions segment (13% in 2025), we are leading company in pro
Slide 29: DENTSU SOKEN INC. Executive Office Investor Relations
For further information, please contact: https://www.dentsusoken.com/english/ir DENTSU SOKEN INC. Executive Office g-ir@group.dentsusoken.com Investor Relations +81-3-6713-6160