Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — 1H FY03/26 Earnings Presentation
33 slides from Tsuzuki Denki's earnings presentation, Nov 18, 2025
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2026
Financial Results for the First Half of the Fiscal Year Ending March 31, 2026 November 18, 2025 Tsuzuki Denki Co., Ltd. Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 2: 1H FY03/26 Financial Results: Highlights
1H FY03/26 Financial Results: Highlights Overview of 1H FY03/26 Results • Sales and profits both increased YoY, with operating and ordinary income reaching record highs for the 1H period • Initiatives to improve profitability continued to deliver results, and the operating margin improved 2.4pt YoY
Slide 3: Overview of 1H FY03/26 Results; Progress of Medium-Term Management Plan
01 Overview of 1H FY03/26 Results 02 Progresss of Medium-Term Management Plan “Transformation 2026,” Toward Future Growth 2 Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 4: Highlights: Revenue increased, operating and ordinary profit at record highs
Highlights Revenue increased, and both operating profit and ordinary profit achieved record highs (Millions of yen) 1H FY03/25 1H FY03/26 YoY change YoY Composition Composition amount ratio amount ratio Net sales 41,842 43,437 ＋1,594 +3.8% Gross profit 9,527 22.8% 10,665 24.6% ＋1,138 +11.9% SG&A exp
Slide 5: Highlights of Consolidated Results
Highlights of Consolidated Results Net sales YoY +3.8% ✓ Growth in server, storage, and other solutions for municipalities and enterprise customers Demand for PC upgrades continued (roughly 20,000 units) during 1H due to the end of Windows 10 support ✓ Demand increased for network construction, incl
Slide 6: Factors Affecting Operating Profit
Factors Affecting Operating Profit (Millions of yen) +1,095 【Operating Profit】 YoY +78.6% -42 Increased costs due to +774 IT investments • Increase in Internal DX and Improved profitability Advertising Expenses. +363 Record high Effect of increased • Accelerated resource shift to growth areas and ex
Slide 7: Net Sales by Business Model
Net Sales by Business Model Net sales by business model (Millions of yen) Equipment YoY PCs Servers Storage devices Network devices PBXs, etc. +3.8% Net sales Overview of 1H FY03/26 composition Sales were steady, surpassing the same period of the previous year, driven 14,249 14,796 34.1% by orders f
Slide 8: Orders
Orders Orders received were extremely favorable, supported by strong IT investment appetite (Millions of yen) 1H FY03/25 1H FY03/26 YoY change YoY Orders 49,283 55,973 +6,690 +13.6% Order backlog 25,335 32,782 +7,447 +29.4% By business model Equipment: Acquired large-scale equipment installation pro
Slide 9: Progress in Six Growth Areas
Progress in Six Growth Areas Sales in the six growth areas expanded 28% YoY to 7.3 billion yen, progressing steadily toward achieving the full-year target of 16.3 billion yen. The “security” area, driven by strong zero-trust security implementation and network security measures, and the “DX services
Slide 10: Topics in Six Growth Areas (1)
Topics in Six Growth Areas (1) Managed Services Security Security Solutions Operational (contracted) services designed to reduce the One-stop services that provide support ranging from formulating workload on customers’ information systems departments and information security strategies to construct
Slide 11: Topics in the Six Growth Areas (2)
Topics in the Six Growth Areas (2) DX Consulting Market-specific DX Services Cloud-based vehicle operation management Sales management system for fruit and and delivery management services vegetable wholesale businesses One-stop support—ranging from identifying customer issues to operation—through D
Slide 12: FY03/26 Consolidated Earnings Forecast (No Change)
FY03/26 Consolidated Earnings Forecast (No Change) Taking into account that some backlog is expected to be recognized as revenue in subsequent periods, the full-year earnings forecast remains unchanged. Net sales are expected to increase, while operating profit and ordinary profit are projected to r
Slide 13: Shareholder Return (No Change)
Shareholder Return (No Change) Dividend yield Pay stable dividends with a target payout ratio of 40%* Year-end share price (Minimum dividend on equity [DOE] ratio of 3.5%) JPY1,657 JPY1,480 JPY1,563 JPY2,336 JPY2,263 Annual dividend:100yen (provisional) 4.5% （Interim dividend: 50 yen; Year-end divid
Slide 14: Progress of Medium-Term Management Plan Transformation 2026
01 Overview of 1H FY03/26 Results 02 Progresss of Medium-Term Management Plan “Transformation 2026,” Toward Future Growth 13 Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 15: Positioning of the Medium-term Management Plan (Re-post)
Positioning of the Medium-term Management Plan (Re-post) First stage: Shift resources and put growing businesses on track to achieve our long-term vision 1st Stage 2nd Stage 3rd Stage 100th Anniversary Growth Navigator Operating income: JPY10.0bn Shift resources Scale growth areas Make growth areas
Slide 16: Overview of the Medium-term Management Plan (Re-post)
Overview of the Medium-term Management Plan (Re-post) ※Revised FY03/26 targets Transformation 2026 ～ Shift resources to growth areas FY03/23 FY03/26 management results (Excluding the targets Electronic Devices Expand growth areas (After revision) business) 1. Business Increase profitability of exist
Slide 17: Progress of Medium-Term Management Plan (1)
Progress of Medium-Term Management Plan (1) Through determined execution of our business strategies, we are firmly advancing the transition to a highly profitable business structure 1. Rebuilding our business portfolio and group companies Shifting recourses to growth areas, Improving productivity St
Slide 18: Progress of Medium-Term Management Plan (2)
Progress of Medium-Term Management Plan (2) The initiatives mentioned earlier proved successful, resulting in a significant improvement in both the gross profit margin and operating margin, and delivering major progress in the transition toward a highly profitable business structure [Specific Result
Slide 19: Environment Surrounding the Information and Communications Industry
Environment Surrounding the Information and Communications Industry External environmental changes are also providing tailwinds, accelerating growth in the ICT market Increasing severity of Growing adoption of AI agents Worsening social issues ransomware damage Accelerated evolution of information (
Slide 20: Toward the Achievement of the Long-Term Vision
Toward the Achievement of the Long-Term Vision In the current medium-term management plan (1st Stage), we have achieved significant results in improving profit margins. In the next medium-term management plan (2nd Stage), our policy is to pursue profit growth driven by sales expansion. 1st Stage 2nd
Slide 21: Next Medium-Term Management Plan: Toward Sales Expansion
Next Medium-Term Management Plan: Toward Sales Expansion Cross-selling strategy Small and medium-sized business market (Overview of Initiatives) Security business Generative AI Collaboration with Active investment in Accelerated growth partner companies human capital through M&A Market Strategy Prom
Slide 22: Market Strategy (1)
Small and medium-sized Cross-selling strategy Market Strategy (1) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Promotion of Cross-Selling Strategy partner companies human capital through M&A The value we provide to major customers is conc
Slide 23: Market Strategy (2)
Small and medium-sized Cross-selling strategy Market Strategy (2) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Strengthening the Small and Medium-Sized Business Market partner companies human capital through M&A Demand for IT investment—s
Slide 24: Approach to Growth Markets (1)
Cross-selling strategy Small and medium-sized Approach to Growth Markets (1) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Expansion of Security Business partner companies human capital through M&A The security market is expected to contin
Slide 25: Approach to Growth Markets (2)
Cross-selling strategy Small and medium-sized Approach to Growth Markets (2) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Utilization of Generative AI and Business Development partner companies human capital through M&A With the spread of
Slide 26: Promotion of Business Expansion Initiatives (1)
Cross-selling strategy Small and medium-sized Promotion of Business Expansion Initiatives (1) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Collaboration with Partner Companies partner companies human capital through M&A We will promote co
Slide 27: Promotion of Business Expansion Initiatives (2)
Cross-selling strategy Small and medium-sized Promotion of Business Expansion Initiatives (2) business market Security business Generative AI Collaboration with Active investment in Accelerated growth Collaboration with Partner Companies (continued) partner companies human capital through M&A Expans
Slide 28: Promotion of Business Expansion Initiatives (3)
Cross-selling strategy Small and medium- Promotion of Business Expansion Initiatives (3) sized business market Security business Generative AI Collaboration with Active investment in Accelerated growth Active Investment in Human Capital partner companies human capital through M&A The market is expec
Slide 29: Accounting Period Performance Trends
Accounting Period Performance Trends [Note regarding quarterly earnings for the Group] Because many of the Group’s customers have fiscal years ending in March, and a large portion of transactions are recognized as revenue at a single point in time, net sales and operating profit tend to be concentra
Slide 30: Press Releases
Press Releases Announcement date Release details Nov. 6, 2025 Launch of collaboration with Proseed aimed at “CX-driven value creation” Nov. 4, 2025 Announcement of the publication of the integrated report “TSUZUKI REPORT 2025 – Leap Forward –” Oct. 23, 2025 Recipient of the “DX Certification Series
Slide 31: Stock Price and Trading Volume
Stock Price and Trading Volume （Price：Yen） （Volume:Stock） 250,000 3,500 3,000 200,000 2,500 150,000 2,000 1,500 100,000 1,000 50,000 500 0 0 2025/4/1 2025/5/1 2025/6/2 2025/7/1 2025/8/1 2025/9/1 2025/10/1 2025/11/4 30 Copyright © 2025 Tsuzuki Denki Co., Ltd.
Slide 32: Contact
Contact Tsuzuki Denki Co., Ltd. Contact Management Planning Office Address 6-19-15 Shinbashi, Minato-ku, Tokyo 105-8665, Japan (Tokyo Art Club Building) Phone: 050-3684-7780 ir-tantou@tsuzuki.co.jp https://www.tsuzuki.co.jp/ Disclaimer The forward-looking statements, including earnings forecasts, co
Slide 33: Bring to society “yohaku” filled with possibilities, through people, insight,
Bring to society “yohaku” filled with possibilities, through people, insight, and technology, together.