Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
98
Sales progress against the full-year plan (approximately 98%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending October 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesAmount not stated+6.8%
Operating profit marginApproximately 40%; year-on-year change: not disclosed
Full-year earnings forecast
Sales growth rate30%
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 SalesApproximately 98%
Operating profit20–30% above plan
Net income20–30% above plan
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results were in line with the plan deliberately established from the outsetKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Factors behind the decline in the share price and measures to address it
- Scope of AEI operator support and delays in implementation
- Delays in IR and PR activities and the timing of disclosures
- Probability of achieving the full-year plan and medium-term management target
- Partnerships and M&A with major companies
- Shareholder returns and share buybacks
- Risk of dependence on LLMs and AEI's competitive advantage
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Prioritized resource allocation to service development in the first half, limited allocation to contracted services, focused on existing customers, and prioritized moving projects under implementation preparation into implementation
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Plans call for prioritizing resource allocation to service development in the second half. However, numerical assumptions regarding foreign exchange rates, raw material prices and other factors were not disclosedNew initiatives
- IR, PR and marketing initiatives originating from the results of a project to fully leverage AI in sales
- AI adoption and automation of the processes for articulating and codifying rules
- Consideration of sharing responsibility for business interviews with consulting firms and other parties
- Expansion of OEM offerings through partners
- Development of self-improving AI
- Reissuance of paid stock options
Key KPIsA metric the company considers important as a management benchmark.
- Revenue growth6.8 %
- Full-year forecast sales growth rate30 %
- Operating margin40 %
- Increase in projects preparing for AEI implementation1 companiesYear on year against the same period last year1 company increase from 1Q
- Number of companies using Brain Plus for Sales2 companiesYear on year against the same period last yearNo increase from the previous quarter
Medium-term management plan targets
Reaching the original medium-term management target during the current fiscal year is considered difficult, with the probability of achievement estimated at approximately 5%. Details of the target amount and target fiscal year were not disclosedMarket Size / Share
The addressable market for AEI was estimated at approximately 10–20% of workers engaged in customer service operations in JapanAcquisition of treasury shares
A second share buyback is not under consideration at this time. The acquisition limit, number of shares and period were not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending October 2026 |
| Net Sales | 非開示 (YoY +6.8%) |
| Operating profit margin | Approximately 40%; year-on-year change: not disclosed |
| Full-year earnings forecast | Net Sales Not disclosed / Operating profit Not disclosed / Net income Not disclosed / Sales growth rate 30% |
| Progress against full-year forecast | Net Sales Approximately 98% / Operating profit 20–30% above plan / Net income 20–30% above plan |
| Self-assessment against the plan | Results were in line with the plan deliberately established from the outset |
| Breakdown of Factors Affecting the Change | Prioritized resource allocation to service development in the first half, limited allocation to contracted services, focused on existing customers, and prioritized moving projects under implementation preparation into implementation |
| Key KPIs | Indicator name Revenue growth / Value 6.8 % / Year on year against the same period last year Not disclosed, Indicator name Full-year forecast sales growth rate / Value 30 % / Year on year against the same period last year Not disclosed, Indicator name Operating margin / Value 40 % / Year on year against the same period last year Not disclosed, Indicator name Increase in projects preparing for AEI implementation / Value 1 companies / Year on year against the same period last year 1 company increase from 1Q, Indicator name Number of companies using Brain Plus for Sales / Value 2 companies / Year on year against the same period last year No increase from the previous quarter |
| Assumptions Underlying the Business Outlook | Plans call for prioritizing resource allocation to service development in the second half. However, numerical assumptions regarding foreign exchange rates, raw material prices and other factors were not disclosed |
| Medium-term management plan targets | Reaching the original medium-term management target during the current fiscal year is considered difficult, with the probability of achievement estimated at approximately 5%. Details of the target amount and target fiscal year were not disclosed |
| Acquisition of treasury shares | A second share buyback is not under consideration at this time. The acquisition limit, number of shares and period were not disclosed |
| Market Size / Share | The addressable market for AEI was estimated at approximately 10–20% of workers engaged in customer service operations in Japan |
| Key points of the Q&A | Factors behind the decline in the share price and measures to address it, Scope of AEI operator support and delays in implementation, Delays in IR and PR activities and the timing of disclosures, Probability of achieving the full-year plan and medium-term management target, Partnerships and M&A with major companies, Shareholder returns and share buybacks, Risk of dependence on LLMs and AEI's competitive advantage |
| New initiatives | IR, PR and marketing initiatives originating from the results of a project to fully leverage AI in sales, AI adoption and automation of the processes for articulating and codifying rules, Consideration of sharing responsibility for business interviews with consulting firms and other parties, Expansion of OEM offerings through partners, Development of self-improving AI, Reissuance of paid stock options |
Items this document does not state (16)
Operating profitOrdinary incomeNet incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital 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.In the first half, engineering and scientific resources were prioritized for miraio, Brain Plus for Sales, and productivity improvements in AI coding, rather than for expanding sales through contracted services. The delay in implementing AI and disclosing information on large-scale projects was attributed to the need to coordinate with multiple parties, including customers and partners.
How to read this page
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