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Financial results presentation7078INCLUSIVE Holdings Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, revenue fell below the full-year forecast, while the operating loss and ordinary loss were both larger than forecast. At the same time, the company moved to restructure unprofitable projects and reduce costs, and indicated a policy of concentrating management resources on the food-related and space-related businesses, among others, with the aim of returning to consolidated profitability in the fiscal year ending March 2028.

Worth reading
44Recurring
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
-725689
¥ thousand
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 2026, full year6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,569,198 thousand-6.7%
Operating profit¥-414,597 thousand
Ordinary income¥-425,584 thousand
Net income¥-173,649 thousand
Full-year earnings forecast
Net Sales
¥4,827,662 thousand
Adjusted EBITDA
¥-60,702 thousand
Operating profit
¥-152,452 thousand
Ordinary income
¥-149,866 thousand
Profit attributable to owners of the parent
¥-177,612 thousand
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan not achieved
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in revenue¥-168 million
  • One-time costs related to demonstration projects¥-48 million
  • Increase in outsourcing expenses¥-63 million
  • Reduction in personnel expenses¥70 million
  • Depreciation and amortization expense reductions¥163 million
  • Other¥-1 million
New initiatives
  • Withdrawal from and restructuring of unprofitable businesses and projects
  • Concentration of management resources on the food, space and regional revitalization fields
  • Automated optimization of demand forecasting and marketing using AI
  • Nationwide implementation of field DX and expansion into municipal DX fields beyond agriculture
  • Rotation of the investment portfolio into high-growth stocks
  • 20% reduction in company-wide common costs
Key KPIsA metric the company considers important as a management benchmark.
  • Shimogamo Saryo EC business revenue year on year195 %
  • Number of municipalities adopting field DX125 Local government
  • Prior-year number of municipalities adopting field DX22 Local government
  • Reduction rate in the number of agricultural fields requiring on-site surveys80 %
Segment results
Brand Consulting
Net Sales
¥2,212,815 thousand-21.1%
EBITDA
¥-111,589 thousand
Segment profit
¥-180,754 thousand
Food-Related
Net Sales
¥2,216,684 thousand+6.1%
EBITDA
¥96,771 thousand+45.7%
Segment profit
¥87,285 thousand
Space-Related
Net Sales
¥30,078 thousand+529.5%
EBITDA
¥-3,326 thousand
Segment profit
¥-3,326 thousand
Investment Business
Net Sales
¥109,620 thousand
EBITDA
¥21,278 thousand
Segment profit
¥21,278 thousand
Medium-term management plan targets
Return to consolidated profitability
Target fiscal yearFiscal year ending March 2028
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥4,569,198 thousand (YoY -6.7%)
Operating profit¥-414,597 thousand
Ordinary income¥-425,584 thousand
Net income¥-173,649 thousand
Full-year earnings forecastNet Sales ¥4,827,662 thousand / Adjusted EBITDA ¥-60,702 thousand / Operating profit ¥-152,452 thousand / Ordinary income ¥-149,866 thousand / Profit attributable to owners of the parent ¥-177,612 thousand
Self-assessment against the planPlan not achieved
Segment resultsBrand Consulting Net Sales ¥2,212,815 thousand (YoY -21.1%) / EBITDA ¥-111,589 thousand / Segment profit ¥-180,754 thousand / Food-Related Net Sales ¥2,216,684 thousand (YoY +6.1%) / EBITDA ¥96,771 thousand (YoY +45.7%) / Segment profit ¥87,285 thousand / Space-Related Net Sales ¥30,078 thousand (YoY +529.5%) / EBITDA ¥-3,326 thousand / Segment profit ¥-3,326 thousand / Investment Business Net Sales ¥109,620 thousand / EBITDA ¥21,278 thousand / Segment profit ¥21,278 thousand
Breakdown of Factors Affecting the ChangeFactors Decrease in revenue / Amount ¥-168 million, Factors One-time costs related to demonstration projects / Amount ¥-48 million, Factors Increase in outsourcing expenses / Amount ¥-63 million, Factors Reduction in personnel expenses / Amount ¥70 million, Factors Depreciation and amortization expense reductions / Amount ¥163 million, Factors Other / Amount ¥-1 million
Key KPIsIndicator name Shimogamo Saryo EC business revenue year on year / Value 195 %, Indicator name Number of municipalities adopting field DX / Value 125 Local government, Indicator name Prior-year number of municipalities adopting field DX / Value 22 Local government, Indicator name Reduction rate in the number of agricultural fields requiring on-site surveys / Value 80 %
Medium-term management plan targetsReturn to consolidated profitability Target fiscal year Fiscal year ending March 2028
New initiativesWithdrawal from and restructuring of unprofitable businesses and projects, Concentration of management resources on the food, space and regional revitalization fields, Automated optimization of demand forecasting and marketing using AI, Nationwide implementation of field DX and expansion into municipal DX fields beyond agriculture, Rotation of the investment portfolio into high-growth stocks, 20% reduction in company-wide common costs
Items this document does not state (18)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout 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.

The company cited weak sales activity in the media division, withdrawal from unprofitable projects, temporary upfront investment to expand the business from the next fiscal year onward, the rescheduling of certain large brand consulting projects, intensifying competition for digital marketing projects using generative AI, and costs related to regional revitalization demonstration projects. At the same time, it said that the increase in losses was contained through operational efficiency gains using AI and personnel cost reductions resulting from organizational restructuring.

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Supplementary Financial Results Materials for the Fiscal Year Ending March 2026 | INCLUSIVE Holdings Inc. (7078) timely disclosure | Komori