Tsuzuki Denki Co., Ltd. · TSE:8157
Tsuzuki Denki — FY2026 Earnings Presentation
59 slides from Tsuzuki Denki's earnings presentation, May 15, 2026
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2026
Financial Results for the Fiscal Year Ended March 31, 2026 and Forecast for the Fiscal Year Ending March 31, 2027 Tsuzuki Denki Co., Ltd. Securities Code ：8157（Tokyo Stock Exchange (Prime Market) / Information & Communication） May 15, 2026
Slide 2: Highlights
Highlights ◆ All business models achieved growth, net sales reaching ¥103.7 billion, up 5.6% YoY. ◆ Operating income surpassed the upward revisions to the forecast announced on January 30, FY03/26 reaching ¥8.1 billion and achieving 26.2% YoY growth, with the operating margin improving to Results 7.
Slide 3: Consolidated Financial Results for the Fiscal Year Ended March 31, 2026
Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 （Millions of yen） FY03/25 FY03/26 YoY change YoY Composition Composition amount ratio amount ratio Net sales 98,263 103,728 ＋5,464 105.6% Gross profit 22,665 23.1% 24,965 24.1% +2,300 110.2% SG&A expenses 16,183 16.5% 16,787 16.
Slide 4: Factors Affecting Operating Income
Factors Affecting Operating Income (Millions of yen) 【Operating income】 +1,696 YoY 126.2% -604 Accelerated investments in +1,031 human capital <Record high> Improved profitability +1,269 • Higher personnel costs 8,178 • Pursuit of Appropriate Pricing (+611) Increased sales effect • Tightening profit
Slide 5: 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. 107.6% Net sales Overview of FY03/26 composition Sales grew steadily YoY, driven by orders for server and storage 40,320 43,378 41.8% installations from manu
Slide 6: Orders
Orders (Millions of yen) FY03/25 FY03/26 YoY change YoY Orders 100,615 110,384 ＋9,768 109.7% Order backlog 20,246 26,902 ＋6,655 132.9% By business model Equipment: Orders remained favorable due to the acquisition of large equipment installation projects from government agencies and financial institu
Slide 7: Six Growth Domains
Six Growth Domains Shifting resources to growth areas has proved successful, facilitating the achievement of full-year targets and delivering significant results that will contribute to the achievement of the new medium-term management plan targets. (Billions of yen) 17.7 Target: 16.3 billion yen To
Slide 8: FY03/27 Consolidated Earnings Forecast
FY03/27 Consolidated Earnings Forecast Although memory supply constraints are expected, we project net sales to increase for the second consecutive fiscal year, driven by continued strong demand for capital expenditures and growth investments. While profit attributable to owners of parent is project
Slide 9: Bring to society “yohaku” filled with possibilities
Bring to society “yohaku” filled with possibilities, through people, insight, and technology, together.
Slide 10: Medium-Term Management Plan Trust & Challenge 2029
Medium-Term Management Plan 「Trust & Challenge 2029」 Tsuzuki Denki Co., Ltd. Securities Code ：8157（Tokyo Stock Exchange (Prime Market) / Information & Communication） May 15, 2026
Slide 11: INDEX
INDEX Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a h
Slide 12: Review of Previous Medium-Term Management Plan Transformation 2026
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 13: Transformation 2026: Review
Transformation 2026: Review All financial targets achieved; revenue growth through identified growth markets and resource reallocation, with continued shift toward a high-profit structure Drivers of Revenue Growth FY03/26 Variance Market expansion driven by strong capital investment Targets • result
Slide 14: Trend in operating profit
Trend in operating profit Operating profit continues to improve under profitability-focused management, with the operating margin reaching four times the level of a decade ago 10.0%【Operating income growth】 (Millions of yen) 9.0% 7.9% 8.0% 7.0% 6.6% 5.8% 6.0% 4.4% 8,178 5.0% 4.2% 3.7% 4.0% 3.3% 3.0%
Slide 15: Transformation 2026: Evaluation and Review of Priority Measures
Transformation 2026: Evaluation and Review of Priority Measures Company-wide evaluation ・ Executed business structure transformations to become a pure-play ICT company ・ Shifted resources to growth areas and transitioned to a high-profitability business structure Business strategies Financial strate
Slide 16: Transformation 2026: Management Focused on Capital Costs and Share Price
Transformation 2026: Management Focused on Capital Costs and Share Price ROE remained at a high level of 10% or above, while PBR continued to improve in line with enhanced performance, various financing initiatives, and proactive IR activities. (%) (times) ROE PBR 14.5 14.0 1.3 10.4 11.3 0.9 1.0 0.9
Slide 17: Overview of Medium-Term Management Plan Trust & Challenge 2029
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 18: Positioning of the Medium-Term Management Plan, Trust & Challenge 2029
Positioning of the Medium-Term Management Plan, Trust & Challenge 2029 Three-year plan targeting profit growth through the expansion of sales in growth areas and the development of new business areas 100th Anniversary Growth Navigator 3rd Stage 2nd Stage Scale growth areas Turn growth areas into 1st
Slide 19: Transition to the 2nd Stage toward achieving the long-term vision
Transition to the 2nd Stage toward achieving the long-term vision Performance expansion under “Transformation 2026” was driven by capturing market growth and the accumulation of internal transformation initiatives. Under “Trust & Challenge 2029,” we will further advance structural transformation and
Slide 20: Medium-Term Management Plan Trust & Challenge 2029
Medium-Term Management Plan Trust & Challenge 2029 Further expand the circle of trust earned from customers while proactively taking on challenges to enhance corporate value Customer base: 20,000 companies Customers Challenges (new initiatives) Challenge 1 Transform into a professional services comp
Slide 21: Initiatives Aimed at Enhancing Corporate Value (Challenges)
Initiatives Aimed at Enhancing Corporate Value (Challenges) Challenge 1 Transform into a professional services company ⚫ Transition to an AI-native value creation model ⚫ Advance from a product-centric to a service-centric revenue model centered on engineering services Challenge 2 Enhance corporate
Slide 22: Transforming into a professional services company
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 23: Perspectives on the Advancement and Societal Integration of AI Technology
Perspectives on the Advancement and Societal Integration of AI Technology The accelerating deployment and social integration of AI technologies are profoundly changing the business environment. For Tsuzuki Denki, which possesses technical expertise as both a system integrator (SI) and network integr
Slide 24: Transitioning to an AI-Native Value Creation Model
Transitioning to an AI-Native Value Creation Model From “use” to “work with” AI as a tool AI native Partners who think and work independently AI used as a supplementary tool AI-centric operations, processes, organizational designs Streamlines and automates individual tasks Redefines the division of
Slide 25: From Transforming Internal Processes with AI to Creating Customer Value
From Transforming Internal Processes with AI to Creating Customer Value Creating Internal Monetizing value for practices knowledge customers Maximizing human value Newly acquired intellectual assets Capturing new needs Design business processes incorporating AI Acquire practical knowledge of the AI
Slide 26: Advancing Toward a Service-Centric Earnings Model Centered on Engineering Services
Advancing Toward a Service-Centric Earnings Model Centered on Engineering Services (Billions of yen) Engineering service CAGR 9.3% net sales 40.6 31.1 32.3 FY03/26 FY03/27 FY03/29 Engineering services Services incorporating IT and cloud solutions for implementation and operations IT products and ser
Slide 27: Revamping Subsegments to Achieve Strategies
Revamping Subsegments to Achieve Strategies We categorize our technology provision activities into Engineering Services, and the sales of associated products and services into Products. In addition, within each category, we disclose SI/NI sales and the recurring-revenue ratio*, which is an indicator
Slide 28: Four Core Engineering Domains
Four Core Engineering Domains We have identified four core engineering domains as key growth areas where we have competitive advantages and can expand earnings by enhancing and broadening the value we provide, starting with Engineering Services. Strengthening implementation and ( : Core domains) pro
Slide 29: Promoting Market Strategies Centered on Engineering
Promoting Market Strategies Centered on Engineering Expanding white-space opportunities Cultivating the SME market through within key accounts enhanced offerings Market perspective Market perspective Major customers: 100 companies Target customers: 200 companies Normal access Leverage knowledge and
Slide 30: IT Platforms
IT Platforms A growth driver underpinning the development and operation of IT platforms across both on-premises and cloud environments, and serving as the foundation for business applications By increasing touchpoints in upstream processes, we aim to provide additional engineering services. Results
Slide 31: Network & Security
Network & Security Security countermeasures centered on network construction and network security Expand resources in areas with strong competitive advantage, and capture market share through the development of new markets Results to date/growth opportunities Numerical targets (sales) (Billions of y
Slide 32: CX Communication Platform
CX Communication Platform Unified Communications (UC) and Contact Centers (CC) Drive growth through cross-selling by leveraging our strengths in both Unified Communications and contact center technologies, together with priority platforms Results to date/growth opportunities Numerical targets (sales
Slide 33: Business Applications
Business Applications Development and provision of packaged services (T-Cloud series, medical systems, ERP), as well as custom system development and maintenance services Convert consulting outcomes to new orders, reinforce the packaged services business, and increase per- customer sales for customi
Slide 34: Promoting Partner Strategy within Engineering Enhancement Efforts
Promoting Partner Strategy within Engineering Enhancement Efforts An orchestrator that implements and embeds optimal technologies tailored to customer needs as part of an ecosystem strategy to expand value creation Establish an ecosystem Co-create with market leaders in the SME Establish a joint val
Slide 35: Enhancing corporate value through a virtuous cycle of growth and shareholder returns
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 36: Enhancing Corporate Value through a Virtuous Cycle of Growth and Shareholder Returns
Enhancing Corporate Value through a Virtuous Cycle of Growth and Shareholder Returns We will enhance corporate value and expand total shareholder returns (TSR) by improving earnings power through growth investments, driving inorganic growth through strategic investments, and strengthening shareholde
Slide 37: Improving Earnings Power through Growth Investments
Improving Earnings Power through Growth Investments Execute strategic investment allocation to strengthen engineering services Growth investment A scale of 7.0 billion yen Increase staff numbers through enhanced recruiting efforts and improve benefits Human capital Invest in human resource developme
Slide 38: Strategic Investments for Inorganic Growth
Strategic Investments for Inorganic Growth Employ multi-layered investment strategies tailored to specific growth phases and objectives to proactively seize opportunities for discontinuous growth Strategic investment A scale of 40.0 billion yen (includes borrowings) 【 Purpose 】 M&A • Expand business
Slide 39: M&A Decision-Making Criteria
M&A Decision-Making Criteria Decision-making criteria Maintain financial discipline Equity ratio: 40–50% Net debt-to-equity ratio: Under 0.4x Payback period rationale Making a comprehensive assessment based on synergies and excess returns M&A capital structure Aim for ROE improvement through effecti
Slide 40: Enhancing Shareholder Returns
Enhancing Shareholder Returns As profits grow, shareholder returns continue to rise. Under the new medium-term management plan, we will revise our dividend policy to further strengthen shareholder returns and increase dividends for the sixth consecutive fiscal year. Dividend policy Annual dividend p
Slide 41: Transition to a human resource portfolio that accelerates value creation
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 42: Transitioning to a Human Resource Portfolio that Accelerates Value Creation
Transitioning to a Human Resource Portfolio that Accelerates Value Creation Enhancing the skills of young employees and revitalizing veteran staff through reskilling, promoting human resource portfolio transformation toward innovative and professional talent who will accelerate value creation Busine
Slide 43: Cultivating a Human Resources and Organizational Foundation that Maximizes Results
Cultivating a Human Resources and Organizational Foundation that Maximizes Results Formulating talent and human resource strategies aimed at expanding the engineering business, enhancing both talent and organizational capabilities Secure talent for business growth • Convey appeal through recruitment
Slide 44: Recruitment Plans, Results, and Approach
Recruitment Plans, Results, and Approach Our approach is to expand recruitment targeting both new graduates and mid-career hires, emphasizing our high levels of compensation and the growth potential of our businesses, with a primary focus on securing the mid-career professionals essential for busine
Slide 45: Numerical Targets, Financial Policies, and ESG
Ⅰ. Review of Previous Medium-Term Management Plan Transformation 2026 Ⅱ. Overview of Medium-Term Management Plan Trust & Challenge 2029 • Transforming into a professional services company • Enhancing corporate value through a virtuous cycle of growth and shareholder returns • Transition to a human r
Slide 46: Ambitious Targets Under the Long-Term Vision and Medium-Term Plan
Ambitious Targets Under the Long-Term Vision and Medium-Term Management Plan Trust & Challenge 2029 Ambitious targets under the long-term vision (FY03/33; revised upward) Net sales Operating income Operating margin ROE 150.0 Billion yen 10.0 18.0 Billion yen 6.7％ 12.0% 15.0％ 17.0% Billion yen Numeri
Slide 47: Trust & Challenge 2029: Management Focused on Capital Costs and Share Price
Trust & Challenge 2029: Management Focused on Capital Costs and Share Price Target PBR improvement by increasing adjusted ROE* through profit growth, leveraging growth opportunities via strategic investments, and strengthening communication with shareholders and investors (%) 14.5 14.5 14.0 ROE 11.3
Slide 48: Expansion of Recurring Revenue Business
Expansion of Recurring Revenue Business Recurring revenue at approximately 40%, with further expansion of a stable profit base Stock/Flow Revenue Mix Stock Revenue — Actuals and Outlook (Millions of yen) (% of Total Revenue, 3-Year Average) Targeting a ¥7.0 billion increase in stock-type revenue ove
Slide 49: Approach to Cash Allocation and Financial Discipline
Approach to Cash Allocation and Financial Discipline Financial Discipline Shareholders’ equity ratio 40%–50% Net D/E ratio Under 0.4x Available working capital Cash and deposits to monthly sales ratio: 2.0 months Capital allocation optimization Cash generation during the previous medium-term managem
Slide 50: Capital Allocation
Capital Allocation (Billions of yen) Basic approach to capital allocation Ensure a working capital cash-to-monthly sales 1 ratio of 2.0 as requisite cash and deposits 7.0 22.0 7.0 2 Plan growth investments in human capital, technologies, and internal DX initiatives 40.0 To achieve the long-term visi
Slide 51: ESG Initiatives
ESG Initiatives Environment Social Reduce environmental impacts Respond to labor shortages caused by a ⚫ Accelerating CO₂ Emission Reduction toward 2050 shrinking workforce Carbon Neutrality ⚫ Conduct collaborative discussions with customers (–34.0% vs. FY03/23; FY03/26 results) and partners, host c
Slide 52: Appendix: Accounting Period Performance Trends
＜Appendix＞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
Slide 53: Appendix: KPIs for Transformation 2026 (1)
<Appendix> KPIs for Transformation 2026 (1) Business/investment KPI Sustainability KPI Net sales in the six growth domains Growth investments (cumulative) CO2 emissions (Billions of yen) (Billions of yen) (t-CO2) Initial target: 16.0 billion yen Target: 8.0 billion yen Target: 1,468t-CO2 1,106t-CO2
Slide 54: Appendix: KPIs for Transformation 2026 (2)
<Appendix> KPIs for Transformation 2026 (2) Diversity KPI Women employees Women in career track positions Women managers (%) (%) (%) Target: 15% 15.5% Target: 12% 13.5% Target: 5% 4.0% 15.5 13.5 4.4 4.0 14.9 12.9 13.8 11.8 2.6 FY03/24 FY03/25 FY03/26 FY03/24 FY03/25 FY03/26 FY03/24 FY03/25 FY03/26 P
Slide 55: Appendix: Recognizing the Management Environment
<Appendix> Recognizing the Management Environment Despite soaring memory prices, rising geopolitical risks, and other uncertainties, we are accelerating growth-oriented investments aimed at sustaining economic growth and addressing social challenges, and expect the information and communications ind
Slide 56: Appendix: Numerical Targets Breakdown: FY03/27 and Mid-Term Plan
＜Appendix＞Numerical Targets Breakdown:FY03/27 and Mid-Term Management Plan (Billions of yen) FY03/26 FY03/27 YoY FY03/29 3-Year CAGR Engineering SI 19.1 19.7 103.1% 23.8 +7.5% Services NI 11.9 12.6 105.5% 16.8 +12.0% Engineering Services TOTAL 31.1 32.3 104.0% 40.6 +9.3% Products SI 50.0 51.2 102.4%
Slide 57: Appendix: Media Releases
<Appendix> Media Releases Published Release details April 21, 2026 Tsuzuki Denki Adds New Functions to TCloud for SCM Cloud-Based Real-Time Fleet Tracking Management Service April 16, 2026 Tsuzuki Revamps Yazuya Contact Center Infrastructure March 27, 2026 Tsuzuki Denki and IBM Japan Conclude AI Par
Slide 58: 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 59: Bring to society “yohaku” filled with possibilities
Bring to society “yohaku” filled with possibilities, through people, insight, and technology, together.