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How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending June 20268 items taken from the company’s own explanation
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below plan in the first quarter; broadly in line with plan in the second quarterKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Reasons for the first-quarter shortfall and recovery in the second quarter: sales activities stagnated as resources were allocated to efforts to normalize operations for the GIGA Warranty business, but performance recovered to broadly planned levels in the second quarter.
- Increase in repairs of GIGA School devices: repair costs increased as the frequency of failures exceeded expectations. For the next contract, the warranty rate will be increased and risk management strengthened.
- Outlook for performance in the second half: taking into account the seasonal concentration of sales in the fourth quarter, the Company aims to achieve its full-year targets by implementing measures during the busy season.
- Progress in ordinary income: a gain on the sale of real estate supported ordinary income as non-operating income.
- Renewable energy-related sales: sales activities normalized from the second quarter onward, and customer acquisition is progressing smoothly.
- Use of generative AI: AI trained on repair histories will be used for repair assessments, with improvements in service quality and restraint of personnel costs expected.
- Lifetech business: performance was broadly flat. The Company will strengthen its warranty app, accelerate development and expand into security-related areas.
- Shareholder returns: the Company plans to raise its payout ratio to 30% over several years. It will also conduct share buybacks flexibly.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Reason for the first-quarter shortfall: resources concentrated on efforts to normalize operations for the GIGA Warranty business, resulting in stagnant sales activities. Factor supporting ordinary income: gain on the sale of real estate, on the order of several hundred million yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Sales tend to be concentrated in the fourth quarter because housing-industry handovers peak in March and the Company runs campaigns toward the end of the fiscal yearNew initiatives
- Raise the warranty rate to an appropriate level in the next GIGA School-related contract
- Use generative AI in repair assessment operations
- Strengthen the warranty app by leveraging engineers from the Lifetech business
- Expand into new areas, including security-related fields
- Raise the payout ratio to 30% over several years
- Conduct share buybacks flexibly
Key KPIsA metric the company considers important as a management benchmark.
- Historical repair recordsTens of thousands of cases
- AI-based repair intake and assessment24 Time
Payout ratio
The actual payout ratio is in the 10% range, with a plan to raise it progressively to 30% over several yearsAcquisition of treasury shares
To be conducted flexibly. Purchase amount, number of shares and period: Not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending June 2026 |
| Self-assessment against the plan | Below plan in the first quarter; broadly in line with plan in the second quarter |
| Breakdown of Factors Affecting the Change | Reason for the first-quarter shortfall: resources concentrated on efforts to normalize operations for the GIGA Warranty business, resulting in stagnant sales activities. Factor supporting ordinary income: gain on the sale of real estate, on the order of several hundred million yen |
| Key KPIs | Indicator name Historical repair records / Value Tens of thousands of cases / Year on year against the same period last year Not disclosed, Indicator name AI-based repair intake and assessment / Value 24 Time / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Sales tend to be concentrated in the fourth quarter because housing-industry handovers peak in March and the Company runs campaigns toward the end of the fiscal year |
| Payout ratio | The actual payout ratio is in the 10% range, with a plan to raise it progressively to 30% over several years |
| Acquisition of treasury shares | To be conducted flexibly. Purchase amount, number of shares and period: Not disclosed |
| Key points of the Q&A | Reasons for the first-quarter shortfall and recovery in the second quarter: sales activities stagnated as resources were allocated to efforts to normalize operations for the GIGA Warranty business, but performance recovered to broadly planned levels in the second quarter., Increase in repairs of GIGA School devices: repair costs increased as the frequency of failures exceeded expectations. For the next contract, the warranty rate will be increased and risk management strengthened., Outlook for performance in the second half: taking into account the seasonal concentration of sales in the fourth quarter, the Company aims to achieve its full-year targets by implementing measures during the busy season., Progress in ordinary income: a gain on the sale of real estate supported ordinary income as non-operating income., Renewable energy-related sales: sales activities normalized from the second quarter onward, and customer acquisition is progressing smoothly., Use of generative AI: AI trained on repair histories will be used for repair assessments, with improvements in service quality and restraint of personnel costs expected., Lifetech business: performance was broadly flat. The Company will strengthen its warranty app, accelerate development and expand into security-related areas., Shareholder returns: the Company plans to raise its payout ratio to 30% over several years. It will also conduct share buybacks flexibly. |
| New initiatives | Raise the warranty rate to an appropriate level in the next GIGA School-related contract, Use generative AI in repair assessment operations, Strengthen the warranty app by leveraging engineers from the Lifetech business, Expand into new areas, including security-related fields, Raise the payout ratio to 30% over several years, Conduct share buybacks flexibly |
Items this document does not state (21)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendCapital expendituresOrders received and order backlogMarket Size / Share
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 first-quarter shortfall was attributable to the allocation of resources, including personnel, to efforts to normalize operations for the GIGA Warranty business, which caused sales activities to stagnate. The Company also explained that failures of GIGA School devices exceeded expectations, resulting in higher repair costs. Ordinary income was supported by a gain of several hundred million yen on the sale of real estate under favorable conditions.
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