Slides
Page 1
1Q FY March 2027 Supplementary Materials for Financial Results Securities code : 2335 CUBE SYSTEM Aug. 5 , 2026
Page 2
© CUBE SYSTEM INC. All rights reserved. 2 Executive Summary (1Q FY March 2027) Net sales 45.5 100 million yen Operating profit 3.5 100 million yen Profit attributable to owners of parent 2.2 100 million yen ◼ Business Environment ◼ Net Sales ◼ Operating Profit ◼ Earnings Outlook 1Q FY March 2027 Actual ◼ Net Profit ⁚ Demand for modernization and cloud migration continues, while increasingly sophisticated cyberattacks are driving higher demand for cybersecurity measures, supporting continued strong IT investment. We are optimizing resources and ensuring development organization and facilities while pursuing modernization projects, expanding projects in existing business areas, acquiring projects utilizing AI and rolling out new services. ⁚ Remained stable despite an overall growth trend driven by strong demand for modernization projects, due to the reduction of some large-scale projects. ⁚ Decreased due to strengthening AI and consulting areas, proactive investment in R&D and other initiatives, as well as the impact of some unprofitable projects. ⁚ Increased due to lower income taxes resulting from the reversal of the provision for loss on orders received in the previous fiscal year. ⁚ No changes.
Page 3
3 © CUBE SYSTEM INC. All rights reserved. 2 CONTENTS 3 3 1 2 1Q FY March 2027 Overview of Financial Results FY March 2027 Earnings Outlook Appendix
Page 4
1 1 2 4 3 5 6 7 Overview of Consolidated Statements of Income 1 2 4 3 5 8 Trends in Net Sales by Business Style 6 7 9 10 1Q FY March 2027 Overview of Financial Results Trends in Transition by Accounting Period Factors Leading to Changes in Operating Profit (Compared to the Previous Fiscal Year) Trends in Net Sales by Business Model Trends in Net Sales by Industry Index Per Employee
Page 5
5 © CUBE SYSTEM INC. All rights reserved. 1 Overview of Consolidated Statements of Income （Millions of yen） 1Q FY Mar. 2026 1Q FY Mar. 2027 YoY Net sales 4,546 4,552 +0.1％ Operating profit 402 355 -11.8％ Margin 8.9% 7.8% ー Ordinary profit 412 355 -13.8％ Margin 9.1% 7.8% ー Profit attributable to owners of parent 200 222 +10.9％ Margin 4.4% 4.9% ー ‐1 ◼ Business Environment ⁚ Demand for modernization and cloud migration continues, while increasingly sophisticated cyberattacks are driving higher demand for cybersecurity measures, supporting continued strong IT investment. We are optimizing resources and ensuring development organization and facilities while pursuing modernization projects, expanding projects in existing business areas, acquiring projects utilizing AI and rolling out new services. ◼ Net Sales ◼ Operating Profit ⁚ Remained stable despite an overall growth trend driven by strong demand for modernization projects, due to the reduction of some large-scale projects. ⁚ Decreased due to strengthening AI and consulting areas, proactive investment in R&D and other initiatives, as well as the impact of some unprofitable projects. ◼ Net Profit ⁚ Income taxes decreased due to the reversal of the provision for loss on orders received in the previous fiscal year.
Page 6
6 © CUBE SYSTEM INC. All rights reserved. 1 Trends in Transition by Accounting Period 4,411 4,610 4,630 4,699 4,546 4,596 4,616 4,739 4,552 20.1 21.3 21.9 22.6 24.6 23.0 23.5 21.8 23.4 5.0 6.8 7.7 10.4 8.9 7.1 8.8 8.9 7.8 0 10 20 30 40 0 2,000 4,000 6,000 1Q FY Mar. 2025 2Q FY Mar. 2025 3Q FY Mar. 2025 4Q FY Mar. 2025 1Q FY Mar. 2026 2Q FY Mar. 2026 3Q FY Mar. 2026 4Q FY Mar. 2026 1Q FY Mar. 2027 Net sales Gross margin Operating margin（Millions of yen） ◼ Net sales increased by 6 million yen compared with the first quarter of the previous fiscal year, and the operating profit margin decreased by 1.1 points. （％） ‐2
Page 7
7 © CUBE SYSTEM INC. All rights reserved. 1 41 -35 -33 -20 402 355 Factors Leading to Changes in Operating Profit (Compared to the Previous Fiscal Year) 1Q FY Mar. 2026 1Q FY Mar. 2027 YoY Increase/Decrease: -47 million yen （Millions of yen） Strengthened growth areas and invested in R&D. Unprofitable projects occurred. Increased costs associated with development organization and facilities improvements. ‐3 Profit margin improved mainly in the Service- Providing Business. ◼ Positive Factors ◼ Negative Factors ⁚Expanded orders in the Service-Providing Business and improved profitability through the review of low-profit projects in the SIer* Business and End-User Business. ⁚Strengthened AI and consulting areas, promoted R&D investment, while some unprofitable projects occurred. *System integrator: a company that conducts system integration. Abbreviated as “SIer.” A general term for companies that plan, design, develop, operate, and provide other solutions for the IT operation systems of customers including companies and the government.
Page 8
8 © CUBE SYSTEM INC. All rights reserved. 1 2,481 2,258 1,786 1,958 277 335 Trends in Net Sales by Business Model （Millions of yen） YoY +9.6 ％ YoY -9.0％ Digital Business SI Business System Enhancement Business YoY +20.9 ％ ‐4 ◼ Digital Business ◼ SI Business ◼ System Enhancement Business ⁚Increased due to expanded orders for consulting and advanced technology support projects such as AI utilization. ⁚Increased because of growth in orders received for modernization projects. ⁚Decreased due to withdrawal from low-profit projects and the reallocation of resources to the SI Business in response to strong demand. 1Q FY Mar. 2026 1Q FY Mar. 2027
Page 9
9 © CUBE SYSTEM INC. All rights reserved. 1 Finance 817 1,002 563 442 503 499 502 623 738 771 1,421 1,212 Trends in Net Sales by Industry （Millions of yen） ‐5 Distribution Government agencies Other industries Transportation and Telecommunication Manufacturing YoY -14.7％ YoY +22.6％ YoY -21.5％ YoY +24.2％ YoY -0.8％ YoY +4.4％ ◼ Finance ◼ Distribution ◼ Government agencies ◼ Transportation and Telecommunication ◼ Manufacturing ◼ Other industries ⁚Decreased in projects for regional banks and online banks, as well as for megabanks. ⁚Increased in projects for GMS and convenience stores. ⁚Decreased significantly, despite an expansion in projects for central government agencies, due to a decline in other government-related projects. ⁚Increased significantly in projects for telecommunications companies. ⁚Increased in projects for energy-related industries and public racing. 1Q FY Mar. 2026 1Q FY Mar. 2027 ⁚Remained stable due to a decrease in projects for industrial manufacturers and other factors, despite an expansion in projects for alcoholic beverage companies.
Page 10
10 © CUBE SYSTEM INC. All rights reserved. 1 241 288 905 911 3,399 3,353 Trends in Net Sales by Business Style YoY -1.4％ YoY +0.6％ YoY +19.2％ （Millions of yen） SIer Business End-User Business Service-Providing Business ‐6 ◼ SIer Business ◼ End-User Business ◼ Service-Providing Business ⁚Decreased due to the reduction of some individual client projects, despite generally growing business with major customers. ⁚Remained stable despite efforts to deepen relationships with existing customers and acquire new customers, due to delays in converting opportunities into projects and the impact of reduced project scale resulting from customers' preference for in-house development. ⁚Increased significantly through the provision of services utilizing cloud technology. 1Q FY Mar. 2026 1Q FY Mar. 2027
Page 11
11 © CUBE SYSTEM INC. All rights reserved. 1 Index Per Employee Number of Employees Net Sales Per Employee* Operating Profit Per Employee* ‐7 ■ Number of domestic employees ■ Number of employees in overseas subsidiaries *Calculated based on the number of domestic employees. （Thousands of yen）（Persons） （Thousands of yen） *Calculated based on the number of domestic employees. 5,479 5,431 5,478 （+46） 0 2,000 4,000 6,000 8,000 1Q FY Mar. 2025 1Q FY Mar. 2026 1Q FY Mar. 2027 274 481 427 （-53） 0 100 200 300 400 500 600 1Q FY Mar. 2025 1Q FY Mar. 2026 1Q FY Mar. 2027 805 837 831 （-6） 146 143 146 （+3） 0 200 400 600 800 1,000 1,200 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 980951 977 （-3）
Page 12
２ 6 7 Overview of Earnings Outlook 1 2 3 4 5 6 FY March 2027 Earnings Outlook Orders Received and Order Backlog Trends in Dividends and Dividend Payout Ratio
Page 13
13 © CUBE SYSTEM INC. All rights reserved. 2 Overview of Earnings Outlook *The figures are those announced on May 7, 2026. ‐1 （Millions of yen） FY Mar. 2027 Full-year Outlook* 1Q FY Mar. 2027 Progress rate toward Full-Year Outlook FY Mar. 2027 First-half Outlook* Net sales 20,000 4,552 22.8％ 9,300 Operating profit 1,800 355 19.7％ 741 Margin 9.0% 7.8% ー 8.0% Ordinary profit 1,810 355 19.6％ 751 Margin 9.1% 7.8% ー 8.1% Profit attributable to owners of parent 1,500 222 14.8％ 600 Margin 7.5% 4.9% ー 6.5% ◼ Business Environment ◼ Earnings Outlook ⁚Demand for IT investment, including cybersecurity measures, is expected to remain strong, while the outlook remains uncertain due to factors such as domestic and international policy trends and fluctuations in the financial markets. ⁚No changes.
Page 14
14 © CUBE SYSTEM INC. All rights reserved. 2 4,909 4,876 Order Backlog Orders Received and Order Backlog （Millions of yen） ‐2 （Millions of yen） ◼ We are to strengthen our sales activities in the distribution sector as well as the transportation and telecommunication sectors, where demand is strong. YoY -1.8％ YoY -0.7％ 4,665 4,582 Orders Received 1Q FY Mar. 2026 1Q FY Mar. 2027 As of Jun. 30, 2026 As of Jun. 30, 2025
Page 15
15 © CUBE SYSTEM INC. All rights reserved. 2 Trends in Dividends and Dividend Payout Ratio ◼ As announced on May 7, 2026, we have set the planned annual dividend for the fiscal year ending March 31, 2027, at 46 yen per share, based on a target consolidated dividend payout ratio of 50%. ‐3 49.7 47.7 44.5 46.5 5.4 6.0 6.5 6.4 0 2 4 6 8 10 12 0 15 30 45 60 FY Mar. 2024 FY Mar. 2025 FY Mar. 2026 FY Mar. 2027 Interim 15.0 Interim 20.0 Interim 20.0 Interim 22.0 Year-end 20.0 Year-end 20.0 Year-end 26.0 Year-end 24.0 0 15 30 45 60 FY Mar. 2024 FY Mar. 2025 FY Mar. 2026 FY Mar. 2027 Dividend payout ratio(left axis)Dividends per share Dividend on equity ratio(right axis) 46.0 （％） 35.0 40.0 （％） （Planned） （Planned） Trends in Dividends Trends in Dividend Payout Ratio 46.0 （Yen）
Page 16
３ 1 2 4 3 5 6 7 Five Year Summary 1 2 4 3 5Trends in Transition by Accounting Period Trends in Net Sales and Operating Profit Trends in Orders Received and Order Backlog Other Performance Indicators Appendix 6 Corporate Information and History
Page 17
17 © CUBE SYSTEM INC. All rights reserved. 3 Five Year Summary 1Q FY Mar. 2023 1Q FY Mar. 2024 1Q FY Mar. 2025 1Q FY Mar. 2026 1Q FY Mar. 2027 Net sales （Millions of yen） 3,982 4,376 4,411 4,546 4,552 Cost of sales （Millions of yen） 3,107 3,438 3,525 3,425 3,485 Gross profit （Millions of yen） 785 938 886 1,120 1,066 Gross margin（％） 20.2 21.4 20.1 24.6 23.4 Selling, general and administrative expenses （Millions of yen） 513 568 665 717 711 Operating profit （Millions of yen） 272 369 220 402 355 Operating margin（%） 7.0 8.5 5.0 8.9 7.8 Ordinary profit （Millions of yen） 271 371 226 412 355 Ordinary margin（％） 7.0 8.5 5.1 9.1 7.8 Profit attributable to owners of parent （Millions of yen） 173 232 157 200 222 Profit margin attributable to owners of parent （％） 4.5 5.3 3.6 4.4 4.9 ‐1
Page 18
18 © CUBE SYSTEM INC. All rights reserved. 3 Trends in Transition by Accounting Period 1Q FY Mar. 2025 2Q FY Mar. 2025 3Q FY Mar. 2025 4Q FY Mar. 2025 1Q FY Mar. 2026 2Q FY Mar. 2026 3Q FY Mar. 2026 4Q FY Mar. 2026 1Q FY Mar. 2027 Net sales （Millions of yen） 4,411 4,610 4,630 4,699 4,546 4,596 4,616 4,739 4,552 Cost of sales （Millions of yen） 3,525 3,627 3,615 3,635 3,425 3,538 3,533 3,704 3,485 Gross profit （Millions of yen） 886 983 1,014 1,063 1,120 1,058 1,083 1,034 1,066 Gross margin（％） 20.1 21.3 21.9 22.6 24.6 23.0 23.5 21.8 23.4 Selling, general and administrative expenses （Millions of yen） 665 670 657 572 717 730 677 613 711 Operating profit （Millions of yen） 220 312 356 490 402 327 406 421 355 Operating margin（%） 5.0 6.8 7.7 10.4 8.9 7.1 8.8 8.9 7.8 Ordinary profit （Millions of yen） 226 301 365 499 412 326 421 422 355 Ordinary margin（％） 5.1 6.5 7.9 10.6 9.1 7.1 9.1 8.9 7.8 Profit attributable to owners of parent （Millions of yen） 157 504 242 356 200 354 522 487 222 Profit margin attributable to owners of parent （%） 3.6 10.9 5.2 7.6 4.4 7.7 11.3 10.3 4.9 ‐2
Page 19
19 © CUBE SYSTEM INC. All rights reserved. 3 Trends in Net Sales and Operating Profit‐3 1Q FY Mar. 2026 1Q FY Mar. 2027 1Q FY Mar. 2026 1Q FY Mar. 2027 1Q FY Mar. 2026 1Q FY Mar. 2027 Net sales (Millions of yen) Net sales (Millions of yen) Composition （％） YoY （％） Operating profit (Millions of yen) Operating profit (Millions of yen) YoY （％） Operating margin (%) Operating margin (%) YoY （pt） Digital Business 277 335 7.4 +20.9 26 23 -9.3 9.4 7.1 -2.3 SI Business 1,786 1,958 43.0 +9.6 155 144 -7.5 8.7 7.4 -1.3 System Enhancement Business 2,481 2,258 49.6 -9.0 220 187 -15.2 8.9 8.3 -0.6 Finance 1,421 1,212 26.7 -14.7 149 107 -28.5 10.5 8.8 -1.7 Distribution 738 771 16.9 +4.4 74 91 +22.9 10.1 11.9 +1.8 Transportation and Telecommunication 502 623 13.7 +24.2 64 66 +3.2 12.8 10.6 -2.2 Manufacturing 503 499 11.0 -0.8 28 18 -35.5 5.7 3.7 -2.0 Government agencies 563 442 9.7 -21.5 21 34 +57.4 3.8 7.7 +3.9 Other industries 817 1,002 22.0 +22.6 63 37 -41.2 7.8 3.7 -4.1 SIer Business 3,399 3,353 73.7 -1.4 254 202 -20.3 7.5 6.0 -1.5 End-User Business 905 911 20.0 +0.6 159 141 -11.4 17.6 15.5 -2.1 Service-Providing Business 241 288 6.3 +19.2 -10 11 ー △4.4 3.9 ー Total 4,546 4,552 100.0 +0.1 402 355 -11.8 8.9 7.8 -1.1
Page 20
20 © CUBE SYSTEM INC. All rights reserved. 3 Trends in Orders Received and Order Backlog‐4 1Q FY Mar. 2026 1Q FY Mar. 2027 As of Jun. 30, 2025 As of Jun. 30, 2026 Orders received (Millions of yen) Orders received (Millions of yen) Increase/Decrease (Millions of yen) YoY （％） Order backlog (Millions of yen) Order backlog (Millions of yen) Increase/Decrease (Millions of yen) YoY （％） Digital Business 301 382 +80 +26.7 371 387 +15 +4.2 SI Business 1,970 1,956 -13 -0.7 1,806 1,764 -42 -2.3 System Enhancement Business 2,393 2,243 -149 -6.3 2,731 2,725 -5 -0.2 Finance 1,549 1,371 -178 -11.5 1,640 1,430 -209 -12.8 Distribution 782 1,114 +331 +42.3 814 1,045 +230 +28.3 Transportation and Telecommunication 505 725 +220 +43.7 511 620 +108 +21.2 Manufacturing 464 495 +30 +6.6 423 499 +76 +18.0 Government agencies 717 354 -362 -50.5 711 505 -205 -28.9 Other industries 645 520 -125 -19.4 807 775 -32 -4.0 SIer Business 3,879 3,636 -242 -6.3 3,493 3,317 -176 -5.0 End-User Business 728 755 +27 +3.7 1,184 1,213 +28 +2.4 Service-Providing Business 57 190 +132 +229.5 230 346 +115 +50.1 Total 4,665 4,582 -82 -1.8 4,909 4,876 -32 -0.7
Page 21
21 © CUBE SYSTEM INC. All rights reserved. 3 Other Performance Indicators Net Assets/Equity Ratio 7,346 9,444 9,865 10,849 11,153 73.8 76.5 76.2 75.5 78.2 0 20 40 60 80 100 0 3,000 6,000 9,000 12,000 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 Net assets Equity ratio 9,953 12,338 12,952 14,368 14,264 0 3,000 6,000 9,000 12,000 15,000 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 543.58 622.93 657.73 720.39 734.79 0 200 400 600 800 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 12.84 15.36 10.47 13.30 14.63 0 5 10 15 20 1Q FY Mar. 2023 1Q FY Mar. 2024 1Q FY Mar. 2025 1Q FY Mar. 2026 1Q FY Mar. 2027 Total Assets （Millions of yen） （Millions of yen） （％） Net Assets per Share（Yen） Earnings per Share（Yen） ‐5
Page 22
22 © CUBE SYSTEM INC. All rights reserved. 3 （Point） Other Performance Indicators 1.7 2.0 1.8 1.6 1.4 0.0 1.0 2.0 3.0 4.0 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 16.2 15.7 11.9 9.8 10.4* 0 5 10 15 20 25 FY Mar. 2023 FY Mar. 2024 FY Mar. 2025 FY Mar. 2026 FY Mar. 2027 (Outlook) Market Cap （One hundred million yen） Price-to-Book Ratio (PBR)（Multiple） Price-to-Earnings Ratio (PER)（Multiple） *Fiscal year ending March 31, 2027 (outlook) is calculated using the stock price as of the end of June and net profit per share in the full-year earnings outlook. 131 195 187 175 161 0 50 100 150 200 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026 ‐5 （Yen） Share Price Company’s share price（left axis） TOPIX（right axis） 904 1,241 1,191 1,117 1,023 0 1,500 3,000 4,500 6,000 0 500 1,000 1,500 2,000 As of Jun. 30, 2022 As of Jun. 30, 2023 As of Jun. 30, 2024 As of Jun. 30, 2025 As of Jun. 30, 2026
Page 23
23 © CUBE SYSTEM INC. All rights reserved. 3 Corporate Information and History July 1972 Customer Engineers Co., Ltd. founded April 1985 Osaka Sales Office* established October 1990 Changed the company name to "CUBE SYSTEM INC.“ October 2002 Listed on Jasdaq (OTC) March 2014 Designated to the First Section of the Tokyo Stock Exchange May 2019 Nagoya Office established April 2022 Transferred to the Prime Market of the Tokyo Stock Exchange a December 2022 Concluded a capital and business alliance agreement with Nomura Research Institute, Ltd. September 2023 Fukuoka Office established September 2025 Shinagawa Innovation Hub (S.I.H) established Corporate Information History Company name CUBE SYSTEM INC. Established July 5, 1972 Head office Osaki Wiz Tower, 2-11-1 Osaki, Shinagawa-ku, Tokyo Share capital 1.4 billion yen Representative Representative Director Masahiro Nakanishi Securities market Tokyo Stock Exchange Prime Market Net sales 18.4 billion yen（FY March 2026 consolidated） Total number 988（as of April 1, 2026 consolidated） of employees Company website https://www.cubesystem.co.jp/en/ ‐6 *now West Japan Solution Div.
Page 24
The earnings outlook and other forward-looking statements provided in this material are based on the information currently available to the Company and are subject to potential risks and uncertainties. Please understand that there is a large possibility that actual results may differ significantly from the outlook presented herein due to the impact of various external factors. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. https://www.cubesystem.co.jp/en/