Komori
Results presentation3970Innovation Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the Second Quarter of the Fiscal Year Ending March 2027

Although revenue fell 10.1% year on year, operating income, ordinary income and interim net income turned positive as a result of cuts to the cost of sales and SG&A expenses and structural reforms. The full-year forecast was left unchanged, and progress toward the operating income forecast was 72.3%.

Worth reading
70In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
464
¥ million (year-on-year change in operating income/loss)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,029 million-10.1%
Operating profit¥202 million
Ordinary income¥181 million
Net income¥113 million
Gross Profit Margin+5.4 percentage points year on year in the online media business
Full-year earnings forecast
Net Sales
¥7,030 million
Operating profit (loss)
¥280 million
Ordinary profit or loss
¥240 million
Profit attributable to owners of the parent
¥220 million
EBITDA
¥769 million
Annual Dividend
¥40
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales43.1%
Operating profit (loss)72.3%
Ordinary profit or loss75.7%
Profit attributable to owners of the parent51.4%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Change in sales¥-340 million
  • Change in cost of sales¥381 million
  • Change in SG&A expenses¥422 million
New initiatives
  • Expansion of the IT Trend monthly subscription model
  • Investment in new businesses
  • Development of a customer data platform (CDP)
  • Cross-selling initiatives and nurturing design across businesses
  • Business automation using generative AI and other technologies, and reallocation of surplus personnel
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of SHANON MARKETING PLATFORM and List Finder accounts888 projects
  • Equity ratio38.9 %
    Year on year against the same period last year+2.0 percentage points from the end of the previous fiscal year
  • ROE3.9 %
    Year on year against the same period last year-14.6% for the fiscal year ending March 2026
  • ROIC2.7 %
Segment results
  • Online Media Business
    Net Sales¥1,570 million
    Year-on-year revenue growth-12.0%
    Segment Profit or Loss¥577 million
    Year-on-year change in segment profit/loss-1.1%
  • IT Solutions Business
    Net Sales¥1,360 million
    Year-on-year revenue growth±0%
    Segment Profit or Loss¥257 million
    Year-on-year change in segment profit/loss+184.5%
  • Financial Platform Business
    Net Sales¥106 million
    Year-on-year revenue growth-52.6%
    Segment Profit or Loss¥-36 million
    Year-on-year change in segment profit/lossNarrowed loss
  • VC fund business
    Segment Profit or Loss¥-33 million
    Year-on-year change in segment profit/lossNarrowed loss
Medium-term management plan targets
FY27/3
Net Sales¥7.03 billion
Operating profit (loss)¥130 million
Operating profit margin1.8%
ROEApproximately 1%
FY28/3
Net Sales¥8–9 billion
Operating profit (loss)¥500 million-¥1 billion
Operating profit margin5〜12%
ROEApproximately 9%
FY29/3
Net Sales¥10–12 billion
Operating profit (loss)¥1.4–2.1 billion
Operating profit margin12〜20%
ROEApproximately 24%
ROIC15% or higher
Financial targets
ROE
FY27/3 interim actualsApproximately 3.9%
FY29/3 targetApproximately 24%
ROIC
FY27/3 interim actualsApproximately 2.7%
FY29/3 target15% or higher
Equity ratio
FY27/3 interim actuals38.9%
Number of employees
Number of Employees295 people
As ofEnd of September 2026
Annual Dividend
Annual¥40
InterimNo
End of period¥40 (single year-end payment)
Payout ratio
Approximately 49% (forecast)
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥3,029 million (YoY -10.1%)
Operating profit¥202 million
Ordinary income¥181 million
Net income¥113 million
Gross Profit Margin+5.4 percentage points year on year in the online media business
Full-year earnings forecastNet Sales ¥7,030 million / Operating profit (loss) ¥280 million / Ordinary profit or loss ¥240 million / Profit attributable to owners of the parent ¥220 million / EBITDA ¥769 million / Annual Dividend ¥40
Progress against full-year forecastNet Sales 43.1% / Operating profit (loss) 72.3% / Ordinary profit or loss 75.7% / Profit attributable to owners of the parent 51.4%
Segment resultsSegment Online Media Business / Net Sales ¥1,570 million / Year-on-year revenue growth -12.0% / Segment Profit or Loss ¥577 million / Year-on-year change in segment profit/loss -1.1%, Segment IT Solutions Business / Net Sales ¥1,360 million / Year-on-year revenue growth ±0% / Segment Profit or Loss ¥257 million / Year-on-year change in segment profit/loss +184.5%, Segment Financial Platform Business / Net Sales ¥106 million / Year-on-year revenue growth -52.6% / Segment Profit or Loss ¥-36 million / Year-on-year change in segment profit/loss Narrowed loss, Segment VC fund business / Net Sales Not disclosed / Segment Profit or Loss ¥-33 million / Year-on-year change in segment profit/loss Narrowed loss
Breakdown of Factors Affecting the ChangeFactors Change in sales / Amount ¥-340 million, Factors Change in cost of sales / Amount ¥381 million, Factors Change in SG&A expenses / Amount ¥422 million
Key KPIsIndicator name Cumulative number of SHANON MARKETING PLATFORM and List Finder accounts / Value 888 projects / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 38.9 % / Year on year against the same period last year +2.0 percentage points from the end of the previous fiscal year, Indicator name ROE / Value 3.9 % / Year on year against the same period last year -14.6% for the fiscal year ending March 2026, Indicator name ROIC / Value 2.7 % / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 295 people / As of End of September 2026
Medium-term management plan targetsFY27/3 Net Sales ¥7.03 billion / Operating profit (loss) ¥130 million / Operating profit margin 1.8% / ROE Approximately 1% / FY28/3 Net Sales ¥8–9 billion / Operating profit (loss) ¥500 million-¥1 billion / Operating profit margin 5〜12% / ROE Approximately 9% / FY29/3 Net Sales ¥10–12 billion / Operating profit (loss) ¥1.4–2.1 billion / Operating profit margin 12〜20% / ROE Approximately 24% / ROIC 15% or higher
Financial targetsROE FY27/3 interim actuals Approximately 3.9% / FY29/3 target Approximately 24% / ROIC FY27/3 interim actuals Approximately 2.7% / FY29/3 target 15% or higher / Equity ratio FY27/3 interim actuals 38.9%
Annual DividendAnnual ¥40 / Interim No / End of period ¥40 (single year-end payment)
Payout ratioApproximately 49% (forecast)
New initiativesExpansion of the IT Trend monthly subscription model, Investment in new businesses, Development of a customer data platform (CDP), Cross-selling initiatives and nurturing design across businesses, Business automation using generative AI and other technologies, and reallocation of surplus personnel
Items this document does not state (13)
Operating profit marginSelling, general and administrative expensesResults for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

Although revenue declined due to the downsizing of the information-request model and the sale of the outsourced IFA services division, profit improved as a result of reviewing the cost of sales and SG&A expenses, improving operational efficiency through generative AI and other technologies, reallocating surplus personnel, and concentrating resources on the IT solutions business.

How to read this page

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Supplementary Financial Results Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Innovation Inc. (3970) timely disclosure | Komori