Mksystem Corp. · TSE:3910
Mksystem — H1 FY3/26 Earnings Presentation
56 slides from Mksystem's earnings presentation, Nov 6, 2025
Slide 1: Presentation Materials for the Earnings Briefing for the First Half of FY3/26
Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 November 6, 2025 MKSystem Corporation (stock code: 3910)
Slide 2: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・ 2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3/
Slide 3: Company profile
■Group Overview and Business Activities Company profile ●Company name: MKSystem Corporation ●Representative: Noboru Miyake ●Location: Osaka Head Office 30F, Umeda Center Bldg., 2-4-12, Nakazaki-nishi, Kita-ku, Osaka, Japan ●Bases: Tokyo; Fukuoka; Ninohe, Iwate Prefecture; and Matsuyama ●Subsidiary:
Slide 4: Mission and vision
■Group Overview and Business Activities Mission and vision MISSION VISION Management Philosophy Management Policies We provide cloud solutions that benefit you Provide comprehensive services in the field of the personnel and labor management Our services are user-friendly for consumers, their famili
Slide 5: Segment structure
■Group Overview and Business Activities Segment structure Divided our business into two segments: Shalom Business and CuBe Business Shalom Business ● ASP service ● System construction service Monthly system service fee and initial setup fee, etc. ● System product sale Sales of working time recording
Slide 6: Business model: Steady-revenue businesses
■Group Overview and Business Activities Business model: Steady-revenue businesses Steady revenue business that builds a solid profit base 1Q A business model based on the monthly fee-based service Additional sales (Set-up Shalom generates stable income. charges) 4Q 4Q Additional Continuing sales sal
Slide 7: Business model: Target
■Group Overview and Business Activities Business model: Target Our target extends to all companies that outsource/not outsource to labor and social security attorneys. The goal is cross-selling by increasing the use of products associated with the Shalom series. Small payrolls Medium-size payrolls L
Slide 8: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3/
Slide 9: Results highlight (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Results highlight (consolidated) ● Sales up 1.6% YoY to 1,531 million yen. (The first half consolidated sales reached a record high *Achieved a record high in 1H FY3/25 too) ● Shalom Business sales increased 1.3% YoY to 1,195 million yen d
Slide 10: Financial summary (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Financial summary (consolidated) Gross profit increased 14% YoY to 615 million yen as IDC expenses were held down. An operating profit as steps to reduce outsourcing expenses and other items offset higher personnel expenses. A first half l
Slide 11: Balance sheet (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Balance sheet (consolidated) Non-current assets decreased due to amortization of expenses for the development of Shalom FOREVER released in FY3/25. Dividend payments and the loss attributable to owners of parent reduced net assets but the
Slide 12: Cash flows (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Cash flows (consolidated) Operating activities: Increased 347 million yen; profitability is improving Investing activities: Improved by 91 million yen to a negative 73 million yen; down temporarily due to the FY3/25 release of Shalom FOREV
Slide 13: Net sales (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Net sales (consolidated) 1H FY3/26 consolidated sales increased 1.6% YoY to 1,531 million yen. +1.6% 1,100 1,036 1,000 900 851 827 785 795 800 710 746 747 735 700 670 679 625 608 600 509 500 400 300 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 14: Sales composition for business segments (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Sales composition for business segments (consolidated) The Shalom Business is about 80% of total sales, driving the growth of the entire MKSystem Group. Accounting for more than 20% of sales, the Cube Business also contributes to the diver
Slide 15: Gross profit (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Gross profit (consolidated) 1H FY3/26 consolidated gross profit up 14.0% YoY 1H FY3/26 consolidated gross margin up 4.4pt YoY 450 Gross profit Gross margin 100.0 427 395 90.0 400 369 345 80.0 350 340 326 300 293 284 295 289 70.0 256 60.0 2
Slide 16: Operating profit (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Operating profit (consolidated) Operating profit of 2 million yen in 1H FY3/26 A 35 million yen operating loss was recorded in the first quarter due to a loss in the Cube Business projects. However, stable performance of new products and c
Slide 17: YoY changes in operating profit (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 YoY changes in operating profit (consolidated) Operating profit improved significantly from a loss in 1H FY3/25 Cut IDC expenses and outsourcing expenses by a total of about 90 million yen Personnel expenses / labor cost increased, but the
Slide 18: Number of employees (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Number of employees (consolidated) The recruitment of new college graduates and people with previous work experience is continuing to strengthen development and support systems. Number of employees Composition of employees 140 135 135 136
Slide 19: Personnel and promotion expenses (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 Personnel and promotion expenses (consolidated) The hiring of new graduates and people with previous work experience has strengthened development and user support capabilities. The April 2025 salary increase raised personnel expenses. Plan
Slide 20: IDC and software amortization expenses (consolidated)
■Consolidated Financial Results for the First Half of FY3/26 IDC and software amortization expenses (consolidated) IDC expenses decreased 12.7% YoY to 276 million yen due to the stable operation of Shalom FOREVER Software amortization expenses increased 2.4% YoY to 167 million yen as investments con
Slide 21: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・ 2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3
Slide 22: Use of the Shalom series
■Shalom Business Use of the Shalom series ● Introductions*1 ● IDs issued*1 ● Registered companies*1 and *2 3,206 13,922 800,000 companies IDs companies ● ARPU*3 ● ARPA*4 53,600 12,300 yen yen *1: Number of introductions, IDs issued, and companies registered in the Shalom series as of the end of Sept
Slide 23: Target markets and strategies: labor and social security attorney market
■Shalom Business Target markets and strategies 1 Labor and social security attorney market End-Sep 2025 Corporate Offices Offices using our systems*2 2,348 offices 2,913 offices Our market share 8.5% Private Offices 24,549 offices ●There is only one labor and social security attorney at 56.4% of lab
Slide 24: MKSystem market share at large labor and social security attorney offices
■Shalom Business Target markets and strategies 2 MKSystem market share at large labor and social security attorney offices (Top 100 based on number of employees) End-Sep 2025 Using MKSystem products 49 offices Not using MKSystem products 56 offices Using MKSystem products 49 offices Not using MKSyst
Slide 25: Net sales (Shalom Business)
■Shalom Business Net sales Steady revenue (ASP service) increased 2.3% YoY. Stable revenue from monthly service fees are major sources of sales. 700 *1 100.0 Steady revenue Other sales Steady revenue as pct. of net sales 90.0 600 90 44 43 44 31 32 81 88 29 80.0 78 63 500 50 70.0 41 60.0 400 39 50.0
Slide 26: Operating profit (Shalom Business)
■Shalom Business Operating profit Returned to profitability in the fourth quarter of FY3/25 because of measures to reduce IDC expenses, outsourcing expenses and other costs, and other actions. Operating profit continued to increase steadily during the first half of FY3/26. 100 73 73 51 50 50 30 21 1
Slide 27: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・ ・ 2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for F
Slide 28: Net sales and operating profit (CuBe Business)
■CuBe Business Net sales and operating profit A larger first quarter loss YoY because of outsourcing expenses due to the excess work hours beyond initial estimates. Expect second half project sales to be higher than in the first half, resulting in a fiscal year operating profit. Net sales Operating
Slide 29: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3/26
Slide 30: Shalom House branding strategy: Shalom x Chatwork API linkage
■Key Highlights Shalom House branding strategy API linkage for Shalom x Chatwork released on October 29, 2025 New business chat linkage for labor and social security tasks! Shalom x Chatwork linkage speeds up the digital transformation (DX) API linkage of the Chatwork (by kubell Co., Ltd.) Japanese
Slide 31: Shalom x Chatwork API linkage release details
■Key Highlights Shalom House branding strategy API linkage for Shalom x Chatwork released on October 29, 2025 October 29 release ■(1) Client company delivery function for payroll slips, etc. Salary calculation documents and remuneration request data sent to Chatwork ■(2) Notices for e-application re
Slide 32: Seminars for Shalom House users
■Key Highlights Shalom House branding strategy Seminars for Shalom House users Seven seminars were held throughout Japan to give participants information about how to use Shalom House for higher earnings and increasing relationships with consultants. These events create opportunities for basic plan
Slide 33: Seminars for Shalom House users (2)
■Key Highlights Shalom House branding strategy Seminars for Shalom House users (2) During the second half of the seminar, users can share information, including how they are using Shalom House. 33
Slide 34: Shalom House seminar with client company presentations
■Key Highlights Shalom House branding strategy Shalom House seminar with client company presentations Every month beginning Oct. 2025: Presentations by Shalom House users and client companies A labor and social security attorney and an individual at client companies who are using Shalom House provid
Slide 35: Promotion activities/Shalom House seminars
■Key Highlights Promotion activities/Shalom House seminars Branding strategy for Shalom House Shalom House seminars are a key element of the branding strategy. Labor and social security attorneys who use this product give presentations. Participants learn about latest examples of how Shalom House is
Slide 36: Promotion activities/DX product seminar
■Key Highlights Promotion activities/DX product seminar A seminar exclusively for DX products There are also seminars about year-end tax adjustments and personnel management systems. A September seminar was about the eNEN data collection system for web year-end tax adjustments and was led by two att
Slide 37: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・ 2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY
Slide 38: Financial summary (consolidated) forecast for FY3/26
Consolidated Earnings Forecast for FY3/26 Financial summary (consolidated) The Shalom Business is consistently profitable due to measures to hold down IDC expenses and customer support expenses. In the CuBe Business, a profit is expected in the second half because most earnings are normally record
Slide 39: Dividend forecast for FY3/26
Consolidated Earnings Forecast for FY3/26 Dividend forecast for FY3/26 Our basic policy is to pay dividends while placing emphasis on the consistent distribution of earnings to shareholders. Although there was a loss in FY3/25, a dividend was paid in accordance with this earnings distribution poli
Slide 40: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3/
Slide 41: Basic policy for upgrading security: CIS Control Version 8
■Measures to Upgrade Security Basic policy for upgrading security CIS Control Version 8 The policy was established by using the CIS Controls (V8) of the U.S. Center for Internet Security as the basis. Control 01. Inventory and Control of Enterprise Assets Control 12. Network Infrastructure Managemen
Slide 42: Examples of security upgrades
■Measures to Upgrade Security Examples of security upgrades Main new security initiatives No Action Description 1 Restoration of operations after a major AWS outage Establish a service restoration environment in the AWS Osaka region Installed a system for notifications of account lockouts 2 Preventi
Slide 43: Cloud security certification
■Measures to Upgrade Security Cloud security certification ISO/IEC 27017: 2015 certification ISO/IEC 27017:2015 MKSystem has received standard ISMS (ISO/IEC 27001/2022) certification and certification for management systems and proper implementation of these systems concerning cloud services. These
Slide 44: Restrictions on access from outside Japan
■Measures to Upgrade Security Restrictions on access from outside Japan Restrictions on access from outside Japan using WAF of AWS Security has been tightened in response to the increasing number of security problems caused by unauthorized access from other countries. MKSystem uses the Web Applicati
Slide 45: Development of a system that checks operations involving services
■Measures to Upgrade Security Development of a system that checks operations involving services Alive monitoring of services by using an automatic log in system This system automatically performs log ins and automatically monitors the status of the operation of services. If an abnormality is detecte
Slide 46: Table of contents
■Presentation Materials for the Earnings Briefing for the First Half of the Fiscal Year Ending March 31, 2026 Table of contents 1 Group Overview and Business Activities・・・・・2P 5 Key Highlights ・・・・・・・・・・・・・・・・・・・・・・・・ 29P 2 Consolidated Financial Results for 6 Consolidated Earnings Forecast for FY3/
Slide 47: Our mainstay service (Shalom)
■Service Overview Our mainstay service (Shalom) A system for labor and social security attorney offices For number one and two tasks performed solely by social security attorney offices Tasks performed by labor and social security attorneys No. 1 tasks No. 2 tasks No. 3 tasks Preparation of reports
Slide 48: Our mainstay service (Shalom Company Edition)
Service Overview Our mainstay service (Shalom Company Edition) A version of Shalom for companies that is fully compatible with making e-applications mandatory at large companies Allows performing internally all application procedures for unemployment and social security insurance Shalom Personnel
Slide 49: Our mainstay service (MYNABOX)
Service Overview Our mainstay service (MYNABOX) A personal ID number management system that can be used with Shalom Links with a variety of procedures and a use history and other capabilities MYNABOX CL Flowchart Tax office MYNABOX Flowchart (MYNABOX for Clients) Labor and social Business operator
Slide 50: Our mainstay service (Net de Komon)
Service Overview Our mainstay service (Net de Komon) A web application for use with Shalom Use with master data recorded in Shalom Net de Komon One step payroll calculation by Can be accessed anywhere linking with work attendance and anytime (Smartphone Concerned about erroneous Can process with c
Slide 51: Our mainstay service (DirectHR)
Service Overview Our mainstay service (DirectHR) Centralized management using the cloud for all applications submitted by employees during their entire time at the company, including for events like childbirth. Smartphones and PCs can be used for applications. Handles everything from data input to
Slide 52: Our mainstay service (eNEN)
Service Overview Our mainstay service (eNEN) Fully supporting year-end tax adjustment operations by reducing tax filling input and implementing progress management function 1. It makes the operation easy to understand! Enhanced control with authority settings The screen guides you “what to do,” “w
Slide 53: Our mainstay service (Cloud Pocket)
Service Overview Our mainstay service (Cloud Pocket) For the safe and easy distribution and receipt of official documents. Greatly simplifies the distribution of job separation forms, benefit receipt qualification confirmation notices, workplace accident forms and other official forms as well as i
Slide 54: Our mainstay service (CuBe Business semi-customized services)
Service Overview Our mainstay service (Contracted development type semi-customized services / CuBe Business) Business process design + semi-customized system development Accurate and flexible like the one for custom-built houses Used by half a million major company employees. Your IT partner for t
Slide 55: Our mainstay service (GooooN / CuBe Business)
■Service Overview Our mainstay service (GooooN / CuBe Business) GooooN eliminates all unnecessary functions to focus solely on functions needed for the growth of employees. Support for HR development at small, midsize and larger companies by providing quality services that are quick, inexpensive. Ta
Slide 56: Forward-looking statements notice
The plans, estimates and other forward-looking statements contained in this material are forecast based on information available at the time this material was prepared, and these statements include risk and uncertainty. Actual performance may differ from these statements due to changes in business e