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Results presentation7320Solvvy Inc.Financials (excluding banks)

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending June 2027

In the first quarter of the fiscal year ending June 2027, revenue, operating profit and ordinary profit all exceeded both the year-earlier quarter and the quarterly plan announced by the company. Guarantees for housing grew, and the company announced the rollout of new services such as the My Class app and KROX, as well as a share buyback.

Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
10.8
Revenue versus the publicly announced 1Q figure (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationFirst quarter of the fiscal year ending June 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,661 million+8.3%
Operating profit¥236 million+17.3%
Ordinary income¥464 million+23.2%
Net income¥307 million
Selling, general and administrative expenses¥935 million
Results for the three months of the current quarter
Net Sales¥1,661 million
Operating profit¥236 million
Ordinary income¥464 million
Profit attributable to owners of parent for the quarter¥307 million
Full-year earnings forecast
Net Sales
¥8,000 million
Operating profit
¥1,900 million
Ordinary income
¥2,700 million
Profit attributable to owners of the parent
¥1,765 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。
Net Sales20.8%
Operating profit12.5%
Ordinary income17.2%
Profit attributable to owners of the parent17.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
1Q exceeded plan across all items
New initiatives
  • The My Class app began being offered at Asahi Culture Center.
  • KROX, a DX platform for renovation contracts jointly developed with JACCS, is scheduled to launch next spring for JACCS-affiliated merchants.
  • Resolved to acquire treasury shares
Key KPIsA metric the company considers important as a management benchmark.
  • Contract liabilities balance (consolidated)¥18,595 million
    Year on year against the same period last year120.3%
  • New contract value acquired by HomeworthTech¥1,711 million
    Year on year against the same period last year142.3%
  • HomeworthTech contract liabilities and long-term contract liabilities balance¥17,931 million
    Year on year against the same period last year122.2%
  • Unused balance of HomeworthTech electronic money¥3,080 million
    Year on year against the same period last year114.8%
  • Guarantee services revenue¥1,025 million
    Year on year against the same period last year122.2%
Segment results
  • HomeworthTech business (residential)
    Net Sales¥1,154 million
    Year on year against the same period last year121.1%
    Segment profit¥515 million
  • ExtendTech business (non-residential)
    Net Sales¥341 million
    Year on year against the same period last year81.3%
    Segment profit¥242 million
  • LifeTech business (SI and other)
    Net Sales¥157 million
    Year on year against the same period last year104.0%
    Segment profit¥35 million
Financial targets
Equity ratio: 16.0%; ROE actuals not disclosed (FY2025: -17.5%; FY2026: 36.0%)
Market Size / Share
Home renovation market: ¥7.5 trillion; population aged 65 and over: 36.19 million (29.4% of the total population); students enrolled in schools offering My Class: approximately 4.5 million; JACCS renovation loan volume: ¥192.4 billion
Number of employees
Approximately 400 people (group-wide, as of the end of September 2026)
Annual Dividend
¥30 (forecast for the fiscal year ending June 2027; interim and year-end breakdown not disclosed)
Payout ratio
Target: 30%. Forecast for the fiscal year ending June 2027: 19.3%
Acquisition of treasury shares
Up to 200,000 shares; total acquisition cost capped at ¥300 million; acquisition period from 13 November 2026 to 31 January 2027
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending June 2027
Net Sales¥1,661 million (YoY +8.3%)
Operating profit¥236 million (YoY +17.3%)
Ordinary income¥464 million (YoY +23.2%)
Net income¥307 million
Selling, general and administrative expenses¥935 million
Results for the three months of the current quarterNet Sales ¥1,661 million / Operating profit ¥236 million / Ordinary income ¥464 million / Profit attributable to owners of parent for the quarter ¥307 million
Full-year earnings forecastNet Sales ¥8,000 million / Operating profit ¥1,900 million / Ordinary income ¥2,700 million / Profit attributable to owners of the parent ¥1,765 million
Progress against full-year forecastNet Sales 20.8% / Operating profit 12.5% / Ordinary income 17.2% / Profit attributable to owners of the parent 17.4%
Self-assessment against the plan1Q exceeded plan across all items
Segment resultsSegment HomeworthTech business (residential) / Net Sales ¥1,154 million / Year on year against the same period last year 121.1% / Segment profit ¥515 million, Segment ExtendTech business (non-residential) / Net Sales ¥341 million / Year on year against the same period last year 81.3% / Segment profit ¥242 million, Segment LifeTech business (SI and other) / Net Sales ¥157 million / Year on year against the same period last year 104.0% / Segment profit ¥35 million
Key KPIsIndicator name Contract liabilities balance (consolidated) / Value ¥18,595 million / Year on year against the same period last year 120.3%, Indicator name New contract value acquired by HomeworthTech / Value ¥1,711 million / Year on year against the same period last year 142.3%, Indicator name HomeworthTech contract liabilities and long-term contract liabilities balance / Value ¥17,931 million / Year on year against the same period last year 122.2%, Indicator name Unused balance of HomeworthTech electronic money / Value ¥3,080 million / Year on year against the same period last year 114.8%, Indicator name Guarantee services revenue / Value ¥1,025 million / Year on year against the same period last year 122.2%
Number of employeesApproximately 400 people (group-wide, as of the end of September 2026)
Financial targetsEquity ratio: 16.0%; ROE actuals not disclosed (FY2025: -17.5%; FY2026: 36.0%)
Annual Dividend¥30 (forecast for the fiscal year ending June 2027; interim and year-end breakdown not disclosed)
Payout ratioTarget: 30%. Forecast for the fiscal year ending June 2027: 19.3%
Acquisition of treasury sharesUp to 200,000 shares; total acquisition cost capped at ¥300 million; acquisition period from 13 November 2026 to 31 January 2027
Market Size / ShareHome renovation market: ¥7.5 trillion; population aged 65 and over: 36.19 million (29.4% of the total population); students enrolled in schools offering My Class: approximately 4.5 million; JACCS renovation loan volume: ¥192.4 billion
New initiativesThe My Class app began being offered at Asahi Culture Center., KROX, a DX platform for renovation contracts jointly developed with JACCS, is scheduled to launch next spring for JACCS-affiliated merchants., Resolved to acquire treasury shares
Items this document does not state (11)
Gross Profit MarginOperating profit marginBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsCapital expendituresOrders received and order backlogKey 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.

Acquisition of guarantees for existing homes was strong, and revenue recognized from accumulated contract liabilities also increased. As selling, general and administrative expenses were broadly in line with the plan, most of the increase in revenue was reflected in operating profit. Ordinary profit also benefited from ¥228 million in non-operating income and expenses, including returns on cash on hand and rental income from investment real estate.

How to read this page

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Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending June 2027 | Solvvy Inc. (7320) timely disclosure | Komori