Baudroie,inc. · TSE:4413
Baudroie,inc — Q1 FY2027 Earnings Presentation
47 slides from Baudroie,inc's earnings presentation, July 2026
Slide 1: Financial Results Briefing Material for the First Quarter of Fiscal Year Ending February 2027
Financial Results Briefing Material for the First Quarter of Fiscal Year Ending February 2027 Stock code：4413 July 2026
Slide 2: The possibility of jobs being replaced by generative AI
The possibility of jobs being replaced by generative AI The risk of generative AI replacing tasks in the infrastructure field is low, as there is fundamentally no development work involving programming. Level of impact of AI System Development Domain High AI ・AI excels at learning from vast amounts
Slide 3: AI Substitutability Across Project Phases
AI Substitutability Across Project Phases The IT infrastructure domain is mission-critical for every business, requiring meticulous decision-making and approval at every phase. Compared to the application domain, the scope of tasks that AI can replace is limited to a very small portion of the design
Slide 4: Agenda
Notice:This document has been translated from the Japanese original for reference purposes. In the event of any discrepancy between this translated document and the Japanese original, the latter shall prevail. 1. Business Overview P5 2. Highlights of Consolidated Financial Results P13 3. Medium-term
Slide 5: Business Overview
Business Overview
Slide 6: Company Overview
Company Overview Company name baudroie inc. Line of business IT infrastructure business Directors President and Chief Executive Officer Major clients SoftBank Corp. NTT DOCOMO BUSINESS, Inc. Shigehiro Tominaga NTT EAST, Inc. Representative Director KDDI CORPORATION Kazuya Fujii Mitsubishi Research I
Slide 7: What Are IT Infrastructure Services?
What Are IT Infrastructure Services? IT infrastructure services refer to designing and constructing complex IT infrastructure, including servers that operate systems, networks that connect devices to systems, and security solutions that protect secure communications and information, as well as condu
Slide 8: What Differentiates Us from System Developers and Facilities Contractors
What Differentiates Us from System Developers and Facilities Contractors In Japan, it is standard practice to outsource IT system operations. As systems become increasingly complex, attention is shifting toward specialized firms that focus on specific domains, rather than system developers who cover
Slide 9: Specialized Systems Companies
Specialized Systems Companies Due to the diversification of societal demands for IT, technologies in various IT fields have become more complex and advanced. System companies specialized in each field have been gaining increasing attention. Conventional, simple systems AI : Increased demand driven b
Slide 10: Business Domains
Business Domains We are a professional operator specializing in IT infrastructure services, especially in advanced technology areas. Advanced technology areas that are growing Where the IT infrastructure services market is positioned prominently in the IT infrastructure area In 2029, the entire Japa
Slide 11: Our Competitive Advantage
Our Competitive Advantage A typical case of team formation in general system companies. A system based on conventional technology A system incorporating advanced technology Since many companies have engineers, it is easier to gather people. Since there are few engineers with advanced technical skill
Slide 12: Our Competitive Advantage
Our Competitive Advantage Efficient team formation is possible through specialization and the development of young talent. Our engineers specialize in building experience in IT infrastructure, so even engineers with the same skills as those from other companies tend to have a lower average age. We c
Slide 13: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results
Slide 14: Executive Summary
Executive Summary Revenue Operating profit 5.41 billion yen (up 60.8％ YoY) 846 million yen (up 39.4％ YoY) ✓Financial results for Q1 are off to a solid start and generally progressing in line with the full-year forecast. →Due to the impact of subsidiaries consolidated during the previous fiscal year
Slide 15: Summary of Consolidated Financial Results
Summary of Consolidated Financial Results ✓Due to the impact of subsidiaries consolidated mid-way through the previous fiscal year, the YoY growth rate of revenue appears high; however, results are generally progressing in line with the full-year forecast. Q1 (Mar - May) FY2026 Q1 (Mar - May) FY2027
Slide 16: Trends in Quarterly Consolidated Revenue
Trends in Quarterly Consolidated Revenue ✓ As before, revenue are expected to increase gradually in the remaining quarters of FY2027 for the following reasons. ・The number of acceptance inspections will further rise in Q2 through the end of the fiscal year. ・With engineers (new graduate employees in
Slide 17: Trends in Quarterly Consolidated Gross Profit
Trends in Quarterly Consolidated Gross Profit ✓Although the gross profit margin decreases in Q1 because hiring usually increases during this period and new hires are recorded as costs from their first day, it is projected to improve from Q2 to Q4. →Compared to the previous year, the margin is expect
Slide 18: Trends in Quarterly Consolidated Operating Profit
Trends in Quarterly Consolidated Operating Profit ✓While the Q1 profit margin temporarily declines due to a seasonal increase in hiring costs and newly consolidated subsidiaries, it is projected to trend slightly higher than the previous year in Q4, supported by revenue seasonality and profit recove
Slide 19: Status of Progress Against the Full-Year Consolidated Earnings Forecast
Status of Progress Against the Full-Year Consolidated Earnings Forecast ✓Progress is on track toward achieving the full-year earnings forecast. Q1 (Mar - May) FY2026 FY2026 Q1 (Mar - May) FY2027 FY2027 Progress Progress Result Full-year Result Full-year rate rate (ended Feb 2026) Results (ending Feb
Slide 20: Status of Progress Against the Full-Year Consolidated Earnings Forecast
Status of Progress Against the Full-Year Consolidated Earnings Forecast Revenue 23.0% FY2027 Full-year forecast (ending Feb 2027) Q1 Q4 23,500,000 thousand yen 19.3% 44.2% 70.7% FY2026 Full-year results (ended Feb 2026) Q1 Q2 Q3 Q4 17,423,340 thousand yen 20.1% 45.4% 72.3% FY2025 Full-year results (
Slide 21: YoY Operating Profit Outlook for the Fiscal Year Ending February 2027
YoY Operating Profit Outlook for the Fiscal Year Ending February 2027 ✓ Operating profit in the full-year earnings forecast is 4.41 billion yen, up 30% YoY. ✓ The Q1-Q2 cumulative total is expected to grow by more than 30% YoY. Any upside potential against the full-year forecast, should it occur, is
Slide 22: Medium-Term Management Plan
Medium-Term Management Plan
Slide 23: Medium-Term Business Plan: Revenue
Medium-Term Business Plan: Revenue ✓Performance has been trending above the initial plan set in the previous fiscal year, and we have now updated our long-term plan through FY2029. (Millions of yen) 45,000 Revised 40,000 39,715 35,000 Revised 30,550 30,000 Earnings Forecast 25,000 23,500 26,195 Befo
Slide 24: Medium-Term Business Plan: Operating Profit
Medium-Term Business Plan: Operating Profit ✓ Even after the transition to the Prime Market, we aim to maintain strong growth. (Millions of yen) Revised 8,000 7,451 7,000 Revised 6,000 5,732 Earnings 5,000 Forecast 5,493 4,409 Before Result the 4,000 revision 4,225 3,391 Result Before 3,000 the 2,46
Slide 25: Past revisions to the medium-term management plan
Past revisions to the medium-term management plan ✓Third upward revision to the Medium-Term Plan; maintaining 30%+ annual growth. Revenue Operating Profit (Millions of yen) Fiscal Year of Disclosure Plan (Millions of yen) 40000 39,715 8000 Plan … FY2023 7,451 … FY2024 35000 7000 … FY2025 Plan 30,550
Slide 26: Growth Strategy
Growth Strategy
Slide 27: Sales to Enterprise Clients (Non-consolidated)
Sales to Enterprise Clients (Non-consolidated) ✓Driven by group management, SMB customer sales are trending upward this fiscal year. From the current fiscal year, we plan to shift our focus back to increasing the proportion of sales from enterprise customers. Average sales per company Total sales to
Slide 28: Sales to Enterprise Clients (baudroie & actias)
Sales to Enterprise Clients (baudroie & actias) ✓Enterprise customer revenues for baudroie inc. and actias inc. have been aggregated since FY2026. ✓In the medium to long term, we aim to increase the combined enterprise customer sales ratio of the two companies. Average sales per company Total sales
Slide 29: Sales in Advanced Technology Areas (Non-consolidated)
Sales in Advanced Technology Areas (Non-consolidated) ✓ We are proactively securing security-related projects, with a recent increase in cloud security engagements driven by SASE implementation. Sales trends Advanced technology areas in the advanced technology areas expected to have high growth pote
Slide 30: Development of Specialized and Highly Specialized Talent
Development of Specialized and Highly Specialized Talent ✓ Develop highly specialized talents based on our education and training systems dedicated to IT infrastructure. ✓ The increase in the number of highly specialized talents are becoming larger as a result of intensified recruitment prior to the
Slide 31: Illustrative Drawing of Our Strategy
Illustrative Drawing of Our Strategy Prepare for high growth to be achieved in FY2028 and onward. Transform sales composition Raise the sales ratio of advanced technology areas and enterprise clients Highly specialized talent Expand the talent base that will Specialized Transform talent structure ev
Slide 32: PMI Overview
PMI Overview Through PMI, we aim to raise the subsidiaries’ profit margins to the level of baudroie inc. Enhancing each subsidiary’s competitive advantages to achieve overall group growth. SPIN TECHNOLOGY GOKU TECHNOLOGIES ZOSTEC baudroie FunClock actias ONE-TECH ALJOY RIKSOL Operating profit margin
Slide 33: Summary of Highlights
Summary of Highlights 01 ✓ Raise the ratio of specialized talents and highly specialized talents. ✓ Expand and deepen projects in advanced technology areas and for enterprise clients. ✓ M&A 02 ✓ Maintain high growth rates ✓ Medium-term business plan 03 ✓ Transition to the TSE Prime market. ✓ Start p
Slide 34: Appendix
Appendix
Slide 35: Inclusion evaluation and revision schedule for the Next-Generation TOPIX
Inclusion evaluation and revision schedule for the Next-Generation TOPIX ✓ Taking into account upcoming inclusion evaluations and re-evaluation for the next-generation TOPIX, we aim to achieve a free-float market capitalization of 40 to 50 billion*1 yen at an early stage. March 2025 April 2025 Octob
Slide 36: Regarding the Dividend Initiated in FY2026
Regarding the Dividend Initiated in FY2026 ✓ According to the material on the right, it appears that transitioning from no dividend paying to dividend paying may lead to a decrease in volatility. The Effect of Dividends Number of 90-day volatility Dividend payout Dividend on Volatility companies med
Slide 37: Approach to Dividends
Approach to Dividends ✓ There is a tendency for stock price volatility to decrease when a company transitions from being non-dividend-paying to dividend-paying. ✓ Accordingly, we are initiating dividend payments as a management initiative with an awareness of the capital markets. Comparison of non-d
Slide 38: Past M&A Results and Future M&As Utilizing Treasury Shares
Past M&A Results and Future M&As Utilizing Treasury Shares Company Name ZOSTEC Inc. ALJOY Inc. FunClock Inc. actias Inc. Business Network and Network and Network and Testing and Validation Description Server Integration Server Integration Server Integration 224 million yen 389 million yen 1 billion
Slide 39: Our Stance for Implementing Future M&As
Our Stance for Implementing Future M&As As an acquisition scheme to deepen group synergy, we intend to provide incentives for the target company’s president to remain committed to expanding the group's corporate value from a founder’s perspective. This is achieved by using our own shares as part of
Slide 40: Image of M&A Strategy
Image of M&A Strategy As M&A targets, 1–3 are included, with the three subsidiaries consolidated from Q2 FY2026 classified as Category 1. 1. M&A of Companies mainly staffed by young employees → Companies primarily composed of young employees and engaged in comprehensive IT support services are easie
Slide 41: Effective Utilization of Shares
Effective Utilization of Shares Maximize the benefits of direct financing to increase corporate value ✓Acquisition of treasury stock December 2024～April 2025, acquired treasury shares ✓Share-based compensation Number of treasury shares acquired 610,400 Regularly grant share-based compensation to emp
Slide 42: Trends in Financial Results
Trends in Financial Results FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 (Thousands of yen) 10th period 11th period 12th period 13th period 14th period 15th period 16th period 17th period 18th period 19th period ※Transitioned to IFRS Revenue 1,626,968 2,087,013 2,261,561 2,6
Slide 43: Recurring Sales through Continuous Services with Retained Clients (Non-consolidated)
Recurring Sales through Continuous Services with Retained Clients (Non-consolidated) ✓ Continued stable earnings from recurring sales. FY2026 (ended Feb 2026) Q1 FY2027 (ending Feb 2027) Single-project Single-project sales sales Recurring Recurring 49.3% sales 46.0% sales 50.7% 54.0% Recurring sales
Slide 44: Definitions of Specialized and Highly Specialized Talents
Definitions of Specialized and Highly Specialized Talents Specialized talents Employees at sub-leader or higher levels in comprehensive capabilities, which are rated by class, or associate or higher levels in technical capabilities, which are rated by grade, in our personnel assessment and who are c
Slide 45: Corporate Social Responsibility
Corporate Social Responsibility We believe that developing young people who are capable of creating new IT industry areas and down-to-earth young people with advanced IT skills should lead to the development of a sustainable society. The Company not only conducts education and training for its emplo
Slide 46: Disclaimer
Disclaimer This material contains forward-looking statements.These statements are based only on information available to the Company at the time they were prepared. Moreover, such statements do not guarantee the future outcomes, and involve risks and uncertainties. Please note that actual results ma
Slide 47: baudroie inc.
baudroie inc.