AISAN TECHNOLOGY CO.,LTD. Q4 FY2026 earnings call

• Corporate Overview and Group Structure • Founded in 1970, listed on the Tokyo Stock Exchange Standard Market, with a secondary listing on the Nagoya Stock Exchange Main Market achieved in October 2024. As of April 2025, it has 202 consolidated employees and 15 locations across Japan. • The group includes 5 entities: core parent Aisan Technology, 3D measurement firm ThreeD, acquired surveying design firm Sanwa, acquired measurement equipment maintenance firm Shusoku, and Mitsubishi Corp joint venture A-Drive focused on autonomous driving one-stop services.

• Product and Segment Strategic Positioning • Public Segment: The company's legacy core business, providing end-to-end surveying solutions including software, hardware, support, and contracted surveying services. It has strong competitive advantage from full-spectrum support that most competitors cannot match, with high margin proprietary software and maintenance services. Its flagship Wingneo series has over 17,000 licenses in use, and is adopted by over 50 legal bureaus for real estate registration work. • Mobility DX Segment: Focused on autonomous driving solutions, high-precision 3D map data generation, MMS (mobile mapping system) sales and maintenance, with partnerships with Mitsubishi Electric, Mitsubishi Corp, and KDDI. It has completed over 100 autonomous driving demonstration projects across Japan, building significant institutional knowledge. • New Urban Space DX initiative: A planned third business segment focused on expanding 3D map data use cases beyond surveying and autonomous driving, currently in the trial-and-error development phase.

• Mid-term Management Plan Progress (April 2024 – March 2027, "Development & Evolution" slogan) • The plan is currently at its midpoint, after 18 months of implementation. The first year (FY2025) exceeded its 350 million yen operating profit target, achieving 440 million yen. • Public Segment progress: Successfully launched consecutive new products, with the July 2024-launched ANIST exceeding all sales expectations, with growth accelerating rather than slowing after one year on the market. Opened new sales offices in Saitama and Osaka, plus the new Nagasaki DX Lab, expanded measurement equipment product lineup, which has been well received by regional customers. • Mobility DX Segment progress: Increased order intake for demonstration projects and autonomous driving commercialization for work vehicles. Joint venture A-Drive has gotten off to a faster than expected start, receiving strong positive feedback from local governments for its one-stop autonomous driving services. • Corporate operations progress: Launched a dedicated recruitment and training department, which successfully hired high-quality new and experienced talent, with experienced hires quickly becoming productive core contributors. Strengthened IR and public relations, completed secondary listing on the Nagoya Stock Exchange, participated in the Nagoya Stock Exchange IR EXPO, and will continue expanding outreach to individual investors. Implemented BCP measures, opened the Nagasaki DX Lab (chosen for its low earthquake risk and strong local government support) to store critical company data offsite, mitigating disaster risk from the potential Nankai Trough earthquake.

For the first half of the 2026 March fiscal year: 1. Public Segment: Reported net sales of just over 1.8 billion yen, with segment profit of just under 500 million yen. Over 50% of the segment's revenue comes from proprietary software sales and related services, with the remainder from surveying measurement equipment sales and support services. This segment accounts for approximately 58.1% of total company first half revenue, and drove overall earnings growth due to strong performance of the new ANIST product and large project wins. 2. Mobility DX Segment: Reported net sales of 1.259 billion yen, with a slight segment operating loss. This segment accounts for approximately 40.6% of total company first half revenue. The segment has a revenue recognition structure where most sales and profits are recognized in the fourth quarter, so a half-year loss is a normal seasonal outcome. As of the half-year mark, the segment holds over 1.3 billion yen in work-in-progress orders that will be recognized in the second half. The remaining ~1.3% of revenue comes from minor real estate leasing income.

• Full year 2026 March fiscal year guidance is maintained at 7.2 billion yen in net sales and 600 million yen in operating profit. As of the half-year mark, 3.1 billion yen in revenue (43.1% of target) and 200 million yen in operating profit (33.3% of target) have been achieved, with a half-year operating margin of 6.5% vs the full year target of 8.3%. Management expects the margin to converge to the target as Mobility DX Segment profits are recognized in the second half.
• The final year of the 3-year mid-term management plan (FY2027 March fiscal year) target is maintained at 8.0 billion yen in net sales and 850 million yen in operating profit, and preparation for this target is progressing on schedule.
• The planned final year mid-term plan dividend target has been raised from 35 yen per share to 37 yen per share, as disclosed in the November 2025 financial release.
• Management expects all work-in-progress orders (over 1.3 billion yen in Mobility DX alone) will be recognized as revenue and profit in the fourth quarter of FY2026, and remains on track to hit full year targets.

• Geographic concentration risk: The company's headquarters is located in Nagoya, which faces risk from large potential earthquakes in the Nankai Trough. This has been partially mitigated by the opening of the Nagasaki DX Lab, which stores critical company data in a low-earthquake-risk region.
• Execution risk for new business lines: The new Urban Space DX business is still in the trial-and-error phase, with no guarantee of successful commercialization in the near term.
• Talent acquisition risk: Amid Japan's ongoing population decline and labor shortage, attracting and retaining high-quality talent is a key ongoing challenge for the firm.
• Seasonal revenue risk: The Mobility DX Segment's reliance on fourth quarter revenue recognition means that delays in project completion could lead to missed full year financial targets.

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