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How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending January 20276 items taken from the company’s own explanation
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The company explained the factors behind its lead over domestic drone manufacturers in the defense business: knowledge gained in Ukraine and acquisitions, its autonomous-control development capabilities, and its credibility with defense primes.
- The company explained its expectation that bids by the Ministry of Defense will require the use of domestically produced key components, including flight controllers, batteries, motors and chargers.
- The company explained that initial revenue from the defense business is expected to begin being recognized around September to October 2026, and that it plans to expand through partnerships with defense primes and winning bids going forward.
- The company explained the market size for interceptor drones and higher-priced targets other than FPV drones.
- The company explained its talent acquisition capabilities, component partnerships with domestic small and midsize companies, and component integration capabilities as an EV motorcycle manufacturer.
- Over the next year, the company plans to pursue bids in Japan, Ukraine and overseas, cross-selling, and demos and contract signings with 11 overseas defense primes.
- The company explained that Kurin's setup time and quality are competitive advantages and that it aims to expand its market share going forward.
- The company explained plans to install domestically produced chips in modular drones in quantities of 300 and 1,767 units for Terra DFC.
- The company explained that it had successfully conducted an interceptor test against Shahed drones using autonomous navigation and is developing and testing the system in Ukraine's real-world combat environment.
- The company explained that it is in discussions on the assumption that its systems will connect to the C2 systems of 11 defense primes.
- The company explained its policy of entering overseas markets through partnerships with local defense primes and local assembly.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Timing of initial revenue recognition for the defense businessAround September to October 2026
- Typical period required to enter new business with the Ministry of Defense3–4 years
New initiatives
- The company will pursue partnerships with defense primes and sequentially win bids for interceptor drones.
- The company will conduct demos with 11 overseas defense primes by year-end and pursue contract signings.
- The company will leverage Kurin's customer base to cross-sell Terra Drone products.
- The company plans to install domestically produced chips in 300-unit and 1,767-unit modular drones.
- The company will build a supply chain through partnerships with domestic component manufacturers.
Key KPIsA metric the company considers important as a management benchmark.
- Number of demos planned with defense primes worldwide11 Engagements
- Number of defense business bids won2 Engagements
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Interceptor drone price¥15 10,000
- FPV drone priceSingle digits
Market Size / Share
- Interceptor drone market size (figure presented at the previous day's briefing)3,600 Hundreds of millions of yen
- Drone production capacity in Ukraine (2023)30 10,000 units
- Current drone production capacity in Ukraine700 Over 10,000 units
- Japan's industrial drone market6 10,000 units
- U.S. industrial drone marketApproximately 5 times Japan's market
- Drones deployed on the battlefield in Ukraine500〜600
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending January 2027 |
| Key KPIs | Indicator name Number of demos planned with defense primes worldwide / Value 11 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of defense business bids won / Value 2 Engagements / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Indicator name Interceptor drone price / Value ¥15 10,000 / Year on year against the same period last year Not disclosed, Indicator name FPV drone price / Value Single digits / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Item Timing of initial revenue recognition for the defense business / Value Around September to October 2026, Item Typical period required to enter new business with the Ministry of Defense / Value 3–4 years |
| Market Size / Share | Item Interceptor drone market size (figure presented at the previous day's briefing) / Value 3,600 Hundreds of millions of yen, Item Drone production capacity in Ukraine (2023) / Value 30 10,000 units, Item Current drone production capacity in Ukraine / Value 700 Over 10,000 units, Item Japan's industrial drone market / Value 6 10,000 units, Item U.S. industrial drone market / Value Approximately 5 times Japan's market, Item Drones deployed on the battlefield in Ukraine / Value 500〜600 |
| Key points of the Q&A | The company explained the factors behind its lead over domestic drone manufacturers in the defense business: knowledge gained in Ukraine and acquisitions, its autonomous-control development capabilities, and its credibility with defense primes., The company explained its expectation that bids by the Ministry of Defense will require the use of domestically produced key components, including flight controllers, batteries, motors and chargers., The company explained that initial revenue from the defense business is expected to begin being recognized around September to October 2026, and that it plans to expand through partnerships with defense primes and winning bids going forward., The company explained the market size for interceptor drones and higher-priced targets other than FPV drones., The company explained its talent acquisition capabilities, component partnerships with domestic small and midsize companies, and component integration capabilities as an EV motorcycle manufacturer., Over the next year, the company plans to pursue bids in Japan, Ukraine and overseas, cross-selling, and demos and contract signings with 11 overseas defense primes., The company explained that Kurin's setup time and quality are competitive advantages and that it aims to expand its market share going forward., The company explained plans to install domestically produced chips in modular drones in quantities of 300 and 1,767 units for Terra DFC., The company explained that it had successfully conducted an interceptor test against Shahed drones using autonomous navigation and is developing and testing the system in Ukraine's real-world combat environment., The company explained that it is in discussions on the assumption that its systems will connect to the C2 systems of 11 defense primes., The company explained its policy of entering overseas markets through partnerships with local defense primes and local assembly. |
| New initiatives | The company will pursue partnerships with defense primes and sequentially win bids for interceptor drones., The company will conduct demos with 11 overseas defense primes by year-end and pursue contract signings., The company will leverage Kurin's customer base to cross-sell Terra Drone products., The company plans to install domestically produced chips in 300-unit and 1,767-unit modular drones., The company will build a supply chain through partnerships with domestic component manufacturers. |
Items this document does not state (23)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planSegment resultsBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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 presentation has been omitted because it was identical to the "Earnings Briefing and Defense Business Strategy Presentation" held on 14 September, and the Q&A transcript has been published.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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