7087.T

Organizational & Segment Restructuring

• Willtech announced its long-term vision Future Vision 2035 in August 2025, and is revising its business portfolio to drive sustained growth and increase corporate value.
• Restructured reporting segments from 4 original business lines into two new field-based segments starting from the 2026 March fiscal year 2nd quarter, to speed up decision-making, improve management efficiency, and optimize management resource allocation.

Business Strategy by Segment

• Manufacturing Contracting & Dispatching: This is Willtech's core legacy business, with decades of experience managing diverse production lines. The company uses dispatching contracts to acquire new clients, builds in-house operational capability and product expertise, then transitions to contracting agreements. It pursues margin improvement via continuous improvement activities, automation and labor-saving proposals to cut operational costs.
• Engineer Dispatching: Dispatches specialized engineers to mechatronics, construction, and IT sectors. Is strengthening hiring of inexperienced new graduates and mid-career new entrants, leveraging existing strength in educational content development to turn young engineers into productive contributors quickly. Will further improve training systems and working environments to retain engineers long-term.
• EMS Business: Capitalizes on the growing trend of domestic reshoring of manufacturing functions in Japan, offering end-to-end domestic EMS services from component sourcing to maintenance with short lead times and high quality to accelerate growth.
• Social Support Business: Leverages Willtech's existing know-how and assets to develop new services addressing social issues, currently operating in three areas: social infrastructure (energy/robotics), employment support, and circular economy. Focused on growing this segment to become a next-generation core business.

Shareholder Return Updates

• Changed the dividend policy from "continuing stable returns to shareholders" to "implementing sustained stable dividends without dividend cuts", with a commitment to improve profitability to grow dividend amounts over time.
• Introduced a new shareholder benefit program for shareholders holding 300+ shares for 6+ months, offering QUO cards paired with the kids smile 笑顔でつなぐ未来基金 worth 10 thousand to 30 thousand yen annually, distributed twice per year (interim and year-end).

Marketing & IR Activities

• Exhibited EMS solution WILL ONE at the July Monozukuri World trade show in Makuhari Messe, and original construction engineer training content Construction Boarding at the August Construction DX Exhibition in Osaka. Will continue active trade show participation to boost brand awareness and acquire new clients.
• Participated in the September 2025 Nikkei/TSE IR Fair 2025 for individual investors, and will continue proactive IR engagement with the investment community.

• The full-year 2026 March fiscal year earnings guidance is maintained, with overall performance tracking in line with original plans.
• The Human Resources Field is expected to continue steady growth in Q3 2026.
• The EMS business expects some order shipments to slip from Q3 to Q4 2026, so Q3 revenue is forecast to be flat YoY with a slight profit decrease, while Q4 2026 revenue and profit are both forecast to exceed prior year levels due to the delayed order recognition.

Human Resources Field (Total)

• Revenue: 13.199 billion yen, +4.0% YoY
• Segment profit: 464 million yen, +24.7% YoY
• Revenue contribution to total consolidated revenue: ~60.3%
  1. Manufacturing Contracting & Dispatching Business
  • Revenue: 6.181 billion yen, +1.7% YoY
  • Revenue contribution to Human Resources Field: ~46.8%
  • Profit grew sharply driven by production recovery at information and communication client firms and improved production efficiency.
  1. Engineer Dispatching Business
  • Revenue: 7.017 billion yen, +6.2% YoY
  • Revenue contribution to Human Resources Field: ~53.2%
  • Profit grew driven by demand expansion in mechatronics and construction fields, plus successful contract unit price revisions aligned with skill levels.

Product & Solution Creation Field (Total)

• Revenue: 8.676 billion yen, -2.4% YoY
• Segment profit: 145 million yen net loss
• Revenue contribution to total consolidated revenue: ~39.7%
  1. EMS (Electronics Manufacturing Service) Business
  • Revenue: 7.506 billion yen, -5.6% YoY
  • Revenue contribution to Product & Solution Creation Field: ~86.5%
  • Profit declined significantly due to lower utilization from factory restructuring and upfront investments for new factory expansion.
  1. Social Support Business
  • Revenue: 1.169 billion yen, +25.3% YoY
  • Revenue contribution to Product & Solution Creation Field: ~13.5%
  • Achieved profitability this fiscal period after posting a loss in the prior year, and is growing on track to become a future core business line.

Consolidated Total

• Total revenue: 21.884 billion yen, +0.7% YoY
• Operating profit: 161 million yen, -46.5% YoY
• Ordinary profit: 244 million yen
• Net profit attributable to parent company shareholders: 101 million yen

• Domestic GDP is growing but personal consumption growth remains modest.
• While U.S. trade policy has reached a temporary resolution, future developments require ongoing monitoring.
• The company expects the economy to enter a period of full-scale inflation driven by high commodity prices, rising interest rates, and rising wages, which may create cost pressures.
• Upfront investments for new factory construction, management expansion-related personnel cost increases, and lower revenue from EMS business restructuring have compressed overall consolidated profit in the reporting period.

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