Notice of Financial Results Briefing and Q&A Transcript | MFS,Inc. (196A) timely disclosure

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¥ hundreds of millions

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Contents of this document

Earnings briefing transcriptFull year, fiscal year ending June 202610 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥83 hundreds of millions

Operating profit¥2.2 hundreds of millions

Net income¥3 hundreds of millions

Selling, general and administrative expensesAdvertising expenses: approximately ¥400 million at the peak and approximately ¥100 million in the fourth quarter of the fiscal year ended June 2026. SG&A expenses as a percentage of revenue: Not disclosed

Results for the three months of the current quarterAdvertising expenses were approximately ¥100 million in the fourth quarter of the fiscal year ended June 2026. Quarterly revenue and profit: Not disclosed

Full-year earnings forecast

Fiscal year ending June 2027

Net Sales

¥102 hundreds of millions

Operating profit

Approximately 20% increase from the previous year's actual result

INVASE revenue after gross-up deduction

¥26.5 hundreds of millions

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

The company met its full-year budget for the fiscal year ended June 2026. However, the INVASE business fell short of budget.

Key points of the Q&AKey questions raised by investors at the briefing and the company's answers

Questions What are the effects of SEO? / Answer The company ranked highly for mortgage-related keywords and attracted traffic from approximately 300,000 monthly searches. This contributed to lower CPA.
Questions Progress on the partnership with Zenkoku Hosho / Answer The company is exchanging views on a new scheme and will make an announcement when it reaches a stage at which it can be disclosed.
Questions CAPS's contribution to earnings / Answer Revenue from CAPS is not included in the budget for the fiscal year ending June 2027. The company is not assuming a loss either.
Questions Progress on Vision 2030 / Answer The company believes it is making steady progress step by step, but will not disclose specific revenue and profit projections at this time.
Questions CAPS's owner-occupier brokerage model / Answer The company will initially pursue a pure brokerage model rather than a buy-and-resell model.
Questions Monetization through AI agents / Answer The company envisages monetization in stages, including referrals to Mogecheck, affiliate links and API integration.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Shift to loan-execution fees
Advertising expense reductionFrom approximately ¥400 million at the peak to approximately ¥100 million in the fourth quarter
Changes in financial institutions' underwriting criteria
Recognition of Deferred Tax Assets

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumed policy rate for the fiscal year ending June 20271.5 %
Difference between fixed and variable interest rates2.2 %
Borrowing Rates on Properties Held for Sale2 Around %
SeasonalityRevenue and profit weighted toward the second half

New initiatives

Mogecheck AI Phase 4
API integration with financial institutions
MCP integration for other AI agents
Monitoring functions for real estate companies
Integration of INVASE's website and app
Transformation of the INVASE business into an AI-powered service model
New CAPS service
Owner-occupier brokerage through CAPS

Key KPIsA metric the company considers important as a management benchmark.

User registrations12 10,000 people
Number of underwriting applications2.2 ten thousand items
Expected loan-execution amount¥2,600 hundreds of millions
ROAS400 Over %
Completed Engagements228 Engagements
Number of loan approvals448 Engagements
Number of condominiums covered by CAPS14.5 10,000 buildings

Unit price and quantity metricsThese figures show sales broken down by price and volume.

CPA¥5,617 per application
Year on year against the same period last yearExpected to be less than half the assumed level of approximately ¥12,000–¥13,000
Monthly member registrations1,000 people
Year on year against the same period last yearExpected to be approximately twice the current level

Segment results

Mojicheck business

ProfitProfitable for the full year; amount Not disclosed

INVASE business

Sales

¥70 hundreds of millions

ProfitProfitable for the full year; amount Not disclosed

Medium-term management plan targets

Vision 2030 was mentioned, but the comparison between targets and actual results was Not disclosed

Market Size / Share

Number of condominiums covered by CAPS14.5 10,000 buildings
CAPS MER6 Approximately %
Owner-occupier market sizeMore than 10 times the size of the investment-property market
Search rankings for mortgage-related termsApproximately 2nd–3rd for "mortgage" and approximately 1st–2nd for "mortgage interest rates"

Contents of this document
Item	Details
Document type	Earnings briefing transcript
Fiscal Period Covered	Full year, fiscal year ending June 2026
Net Sales	¥83 hundreds of millions
Operating profit	¥2.2 hundreds of millions
Net income	¥3 hundreds of millions
Selling, general and administrative expenses	Advertising expenses: approximately ¥400 million at the peak and approximately ¥100 million in the fourth quarter of the fiscal year ended June 2026. SG&A expenses as a percentage of revenue: Not disclosed
Results for the three months of the current quarter	Advertising expenses were approximately ¥100 million in the fourth quarter of the fiscal year ended June 2026. Quarterly revenue and profit: Not disclosed
Full-year earnings forecast	Subject Fiscal year ending June 2027 / Net Sales ¥102 hundreds of millions / Operating profit Approximately 20% increase from the previous year's actual result / Ordinary income Not disclosed / Net income Not disclosed / INVASE revenue after gross-up deduction ¥26.5 hundreds of millions
Self-assessment against the plan	The company met its full-year budget for the fiscal year ended June 2026. However, the INVASE business fell short of budget.
Segment results	Mojicheck business Sales Not disclosed / Profit Profitable for the full year; amount Not disclosed / INVASE business Sales ¥70 hundreds of millions / Profit Profitable for the full year; amount Not disclosed
Breakdown of Factors Affecting the Change	Factors Shift to loan-execution fees / Amount Not disclosed, Factors Advertising expense reduction / Amount From approximately ¥400 million at the peak to approximately ¥100 million in the fourth quarter, Factors Changes in financial institutions' underwriting criteria / Amount Not disclosed, Factors Recognition of Deferred Tax Assets / Amount Not disclosed
Key KPIs	Indicator name User registrations / Value 12 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Number of underwriting applications / Value 2.2 ten thousand items / Year on year against the same period last year Not disclosed, Indicator name Expected loan-execution amount / Value ¥2,600 hundreds of millions / Year on year against the same period last year Not disclosed, Indicator name ROAS / Value 400 Over % / Year on year against the same period last year Not disclosed, Indicator name Completed Engagements / Value 228 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of loan approvals / Value 448 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of condominiums covered by CAPS / Value 14.5 10,000 buildings / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name CPA / Value ¥5,617 per application / Year on year against the same period last year Expected to be less than half the assumed level of approximately ¥12,000–¥13,000, Indicator name Monthly member registrations / Value 1,000 people / Year on year against the same period last year Expected to be approximately twice the current level
Assumptions Underlying the Business Outlook	Item Assumed policy rate for the fiscal year ending June 2027 / Value 1.5 %, Item Difference between fixed and variable interest rates / Value 2.2 %, Item Borrowing Rates on Properties Held for Sale / Value 2 Around %, Item Seasonality / Value Revenue and profit weighted toward the second half
Medium-term management plan targets	Vision 2030 was mentioned, but the comparison between targets and actual results was Not disclosed
Market Size / Share	Indicator name Number of condominiums covered by CAPS / Value 14.5 10,000 buildings, Indicator name CAPS MER / Value 6 Approximately %, Indicator name Owner-occupier market size / Value More than 10 times the size of the investment-property market, Indicator name Search rankings for mortgage-related terms / Value Approximately 2nd–3rd for "mortgage" and approximately 1st–2nd for "mortgage interest rates"
Key points of the Q&A	Questions What are the effects of SEO? / Answer The company ranked highly for mortgage-related keywords and attracted traffic from approximately 300,000 monthly searches. This contributed to lower CPA., Questions Progress on the partnership with Zenkoku Hosho / Answer The company is exchanging views on a new scheme and will make an announcement when it reaches a stage at which it can be disclosed., Questions CAPS's contribution to earnings / Answer Revenue from CAPS is not included in the budget for the fiscal year ending June 2027. The company is not assuming a loss either., Questions Progress on Vision 2030 / Answer The company believes it is making steady progress step by step, but will not disclose specific revenue and profit projections at this time., Questions CAPS's owner-occupier brokerage model / Answer The company will initially pursue a pure brokerage model rather than a buy-and-resell model., Questions Monetization through AI agents / Answer The company envisages monetization in stages, including referrals to Mogecheck, affiliate links and API integration.
New initiatives	Mogecheck AI Phase 4, API integration with financial institutions, MCP integration for other AI agents, Monitoring functions for real estate companies, Integration of INVASE's website and app, Transformation of the INVASE business into an AI-powered service model, New CAPS service, Owner-occupier brokerage through CAPS

Items this document does not state (13)

Ordinary incomeGross Profit MarginOperating profit marginProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Mogecheck business posted a first-half loss as it shifted from referral fees to loan-execution fees, but improved profitability by reducing advertising expenses and lowering CPA. The INVASE business was affected by changes in financial institutions' underwriting criteria, but remained profitable through measures including its transition to a purchase-and-resale model. Net profit includes an accounting benefit from recognizing deferred tax assets.

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