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

Supplementary Materials for the First Quarter of the Fiscal Year Ending May 2027

Although revenue declined year on year due to the scaling back of media-related projects, profit metrics, including the operating loss, improved through cost reductions and the use of AI. In addition, the full-year forecast was revised from a 12-month basis to a 14-month irregular fiscal period following the change in the fiscal year-end.

Worth reading
70In focus
Scored from 4 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
67
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending May 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,009,569 thousand-2.5%
Operating profit¥-121,052 thousand
Net income¥-69 million
Results for the three months of the current quarter
Net Sales
¥1,009,569 thousand
EBITDA
¥-98 million
Operating profit
¥-121 million
Profit attributable to owners of the parent
¥-69 million
Full-year earnings forecast
Net Sales
¥5,918,468 thousand
Adjusted EBITDA
¥-114,191 thousand
Operating profit
¥-176,858 thousand
Ordinary income
¥-148,421 thousand
Profit attributable to owners of the parent
¥-167,551 thousand
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is somewhat sluggish compared with the plan, but is tracking in line with the original full-year plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Scaling back and withdrawing from media-related projects
    ImpactRevenue decline
  • Fundamental cost reductions
    ImpactImprovement in operating income
  • Demand forecasting and digital marketing transformation through the use of AI
    ImpactImproved performance in the food-related business
  • Improved cost ratio following a review of raw-material procurement
    ImpactReduced losses in the food-related business
New initiatives
  • Deployment of a company-wide AI platform
  • The AI and data platform for the Shimogamo Saryo AOI Project is scheduled for release in August 2026
  • Joint demonstration of farmland maintenance support using satellite data and AI with Minamisoma City and operating companies
  • Nationwide rollout of Field DX
Key KPIsA metric the company considers important as a management benchmark.
  • Number of municipalities and projects adopting Field DX124 Engagements
    Year on year against the same period last yearOn pace to exceed 130, the full-year figure for the previous fiscal year
  • Number of Field DX proposals1,000 Local government
Segment results
  • Brand Consulting
    Net Sales¥560,882 thousand (YoY -18.3%)
    EBITDA¥57,764 thousand
    Segment profit¥47,967 thousand
  • Food-Related
    Net Sales¥446,739 thousand (YoY +27.7%)
    EBITDA¥-23,239 thousand
    Segment profit¥-27,805 thousand
  • Space-Related
    Net Sales¥1,947 thousand
    EBITDA¥-8,208 thousand
    Segment profit¥-8,208 thousand
  • Investment
    Net Sales¥0 thousand
    EBITDA¥-129 thousand
    Segment profit¥-129 thousand
Medium-term management plan targets
TargetReturn to profitability in fiscal 2028
Target fiscal yearFY2028
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending May 2027
Net Sales¥1,009,569 thousand (YoY -2.5%)
Operating profit¥-121,052 thousand
Net income¥-69 million
Results for the three months of the current quarterNet Sales ¥1,009,569 thousand / EBITDA ¥-98 million / Operating profit ¥-121 million / Profit attributable to owners of the parent ¥-69 million
Full-year earnings forecastNet Sales ¥5,918,468 thousand / Adjusted EBITDA ¥-114,191 thousand / Operating profit ¥-176,858 thousand / Ordinary income ¥-148,421 thousand / Profit attributable to owners of the parent ¥-167,551 thousand
Self-assessment against the planRevenue is somewhat sluggish compared with the plan, but is tracking in line with the original full-year plan.
Segment resultsSegment Brand Consulting / Net Sales ¥560,882 thousand (YoY -18.3%) / EBITDA ¥57,764 thousand / Segment profit ¥47,967 thousand, Segment Food-Related / Net Sales ¥446,739 thousand (YoY +27.7%) / EBITDA ¥-23,239 thousand / Segment profit ¥-27,805 thousand, Segment Space-Related / Net Sales ¥1,947 thousand / EBITDA ¥-8,208 thousand / Segment profit ¥-8,208 thousand, Segment Investment / Net Sales ¥0 thousand / EBITDA ¥-129 thousand / Segment profit ¥-129 thousand
Breakdown of Factors Affecting the ChangeFactors Scaling back and withdrawing from media-related projects / Impact Revenue decline, Factors Fundamental cost reductions / Impact Improvement in operating income, Factors Demand forecasting and digital marketing transformation through the use of AI / Impact Improved performance in the food-related business, Factors Improved cost ratio following a review of raw-material procurement / Impact Reduced losses in the food-related business
Key KPIsIndicator name Number of municipalities and projects adopting Field DX / Value 124 Engagements / Year on year against the same period last year On pace to exceed 130, the full-year figure for the previous fiscal year, Indicator name Number of Field DX proposals / Value 1,000 Local government / Year on year against the same period last year Not disclosed
Medium-term management plan targetsTarget Return to profitability in fiscal 2028 / Target fiscal year FY2028
New initiativesDeployment of a company-wide AI platform, The AI and data platform for the Shimogamo Saryo AOI Project is scheduled for release in August 2026, Joint demonstration of farmland maintenance support using satellite data and AI with Minamisoma City and operating companies, Nationwide rollout of Field DX
Items this document does not state (18)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress 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 explained that revenue declined as it scaled back and withdrew from unprofitable media projects, while profitability improved through fundamental cost reductions, the introduction of a company-wide AI strategy, the use of AI for demand forecasting and digital marketing, and improvements in the cost ratio following a review of raw-material procurement. The full-year forecast was revised because the fiscal year-end was changed from 31 March to 31 May, making the fiscal year ending May 2027 a 14-month irregular fiscal period.

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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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Materials for the First Quarter of the Fiscal Year Ending May 2027 | INCLUSIVE Holdings Inc. (7078) timely disclosure | Komori