6540.T

• Overall Business Environment & Result Context

  • The external business environment sees increased capital investment from companies across commercial facilities, offices, hotels, and infrastructure-related facilities, supported by strong corporate performance and growing inbound demand.
  • Semba achieved the highest net profit since its 2016 listing in the 2025 December fiscal year, with strategic sales promotion and organizational strengthening initiatives driving both revenue and profit growth.

• Mid-Term Management Plan (2027) Progress

  • The plan uses the slogan "Create More Fun and More Fans!" and sets 5 core priority themes, with cross-alignment across people development, market strategy, service improvement, and co-creation collaboration.
  • Executive management is directly involved in hands-on oversight to accelerate delivery of initiatives, and growth investments including M&A are being pursued to speed up implementation and drive business expansion.
  • The company has expanded alliances with top industry players to advance service innovation, entering new partnerships with Mercer Japan, KOKUYO, and Autodesk.
  • For organizational and human resources strategy, the company revised its personnel system to build a foundation for diverse career development and establish a competitive compensation structure, and successfully hired approximately 80 new employees to secure top talent.

• Operational Project Highlights

  • Semba led many large projects across a wide range of sectors in fiscal 2025, including Fukuoka Airport, hotels, commercial facilities, and specialty stores. Notable completed projects include TAUTAU Terrace Tateyama, Wolfgang's Steakhouse Takanawa, Sarabeth Omotesando, MEGRÜS, the "Original Birkin" special exhibition, Mitsui Shopping Park LaLaport Taipei Nankang, and ETHICAL DESIGN WEEK TOKYO 2025.
  • The company won the 2025 Japan Spatial Design Award for its work.

• The company expects continued growth acceleration for the 2026 December fiscal year, and is strengthening its organizational structure to hit the final 2027 Mid-Term Management Plan targets of 40 billion yen in total revenue, 2.5 billion yen in operating profit, and 1.7 billion yen in net profit.
• The company expects continued steady order acquisition and backlog growth for 2026.
• For 2025 fiscal year dividends, the company approved a 6 yen increase to 76 yen per share. For the 2026 fiscal year, the company plans a 2 yen increase to 78 yen per share. The 2027 Mid-Term Management Plan maintains a target 50% payout ratio, aligned with the company's core policy of prioritizing shareholder returns as a key management goal.
• The entire company is aligned to deliver on the published financial targets of the 2027 Mid-Term Management Plan.

By market segment:

1. Office & Leisure Facilities: 47% year-over-year revenue growth, with the Office & Showroom sub-segment growing 2.2 billion yen year-over-year and continuing sustained expansion.
2. Specialty Stores: 18% year-over-year revenue growth. By geographic segment:
3. Domestic: 28.887 billion yen, 14% year-over-year growth, accounting for approximately 87.9% of total revenue.
4. Overseas: 3.944 billion yen, 11% year-over-year growth, accounting for approximately 12.1% of total revenue. Taiwan was the primary growth driver, with ongoing large development projects from Mitsui Fudosan delivering consistent order flow; Singapore secured a large project from a Japanese client following successful strategy execution, and Shanghai also recorded revenue growth.

Consolidated income statement performance:

• Total revenue: 32.831 billion yen, 113.4% of the prior year, driven by large project wins in office, infrastructure, and specialty store segments.
• Gross profit: 6.088 billion yen, 105.8% of the prior year. Increases in outsourcing costs, personnel expenses, and construction costs from higher revenue and headcount were offset by profit expansion and high value-added service delivery.
• Selling, general and administrative expenses: 3.783 billion yen, 98.6% of the prior year, as increased business segment personnel and construction costs were reclassified to cost of goods sold.
• Operating profit: 2.305 billion yen; recurring profit: 2.349 billion yen; net profit attributable to parent company shareholders: 1.515 billion yen, all recording year-over-year growth.

Order backlog performance:

• Large stores and mixed-use commercial facilities: Order backlog decreased as large renovation projects from the prior year were completed.
• Office & Leisure Facilities: Order backlog grew steadily, with approximately 3 billion yen in office-related backlog and approximately 1.7 billion yen in hotel-related backlog.
• Total order backlog: 8.429 billion yen, an increase of 1.897 billion yen compared to the end of 2024.

No explicit discussion of risks or operational failures is included in the provided transcript.

No question and answer section is included in the provided transcript.