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

Worth reading

41Recurring

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

202

¥ million

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings summarySecond quarter of the fiscal year ending March 20277 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

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。

Operating profit (loss)72.3 %

Ordinary profit or loss75.7 %

Interim net income51.4 %

What the company explained in this material

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

Progressing as planned

New initiatives

IT Trend's monthly subscription model
Create content that is more likely to be cited by generative AI
Expansion of the core database and establishment of a data circulation model
Investment in new businesses in the second half

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

ROE3.9 %
Year on year against the same period last year△14.6% for the fiscal year ending March 2026
ROIC2.7 %
Online media business revenue mix52 %
IT solutions business revenue mix45 %

Segment results

Online Media Business
Net Sales¥1,570 million (YoY -12.0%)
Segment Profit or Loss¥577 million (YoY -1.1%)
IT Solutions Business
Net Sales¥1,360 million (YoY 0.0%)
Segment Profit or Loss¥257 million (YoY +184.5%)
Financial Platform Business
Net Sales¥106 million (YoY -52.6%)
Segment loss¥-36 million

Medium-term management plan targets

Period CoveredFiscal years ending March 2027 to March 2029

TargetExpansion of the core database, improved profitability through data circulation, and a higher stock revenue ratio for IT Trend

Financial targets

ROE

Actual results3.9 %

ROIC

Actual results2.7 %

Cost of equity

Approximately 8–10%

WACC

Approximately 7–9%

Annual Dividend

Annual¥40 per share

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings summary
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥3,029 million (YoY -10.1%)
Operating profit	¥202 million
Progress against full-year forecast	Operating profit (loss) 72.3 % / Ordinary profit or loss 75.7 % / Interim net income 51.4 %
Self-assessment against the plan	Progressing as planned
Segment results	Segment Online Media Business / Net Sales ¥1,570 million (YoY -12.0%) / Segment Profit or Loss ¥577 million (YoY -1.1%), Segment IT Solutions Business / Net Sales ¥1,360 million (YoY 0.0%) / Segment Profit or Loss ¥257 million (YoY +184.5%), Segment Financial Platform Business / Net Sales ¥106 million (YoY -52.6%) / Segment loss ¥-36 million
Key KPIs	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, Indicator name Online media business revenue mix / Value 52 % / Year on year against the same period last year Not disclosed, Indicator name IT solutions business revenue mix / Value 45 % / Year on year against the same period last year Not disclosed
Medium-term management plan targets	Period Covered Fiscal years ending March 2027 to March 2029 / Target Expansion of the core database, improved profitability through data circulation, and a higher stock revenue ratio for IT Trend
Financial targets	ROE Actual results 3.9 % / ROIC Actual results 2.7 % / Cost of equity Value Approximately 8–10% / WACC Value Approximately 7–9%
Annual Dividend	Annual ¥40 per share / Interim Not disclosed / End of period Not disclosed
New initiatives	IT Trend's monthly subscription model, Create content that is more likely to be cited by generative AI, Expansion of the core database and establishment of a data circulation model, Investment in new businesses in the second half

Items this document does not state (19)

Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition 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.

Company-wide reductions in the cost of sales and SG&A expenses were the main reason for the return to operating profitability. The decline in revenue resulted from the shift in the business model of the online media business and the sale of the outsourced IFA services division.

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.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.