Financial Results Presentation for the First Quarter of the Fiscal Year Ending June 2027 | IRRC Corporation (7325) timely disclosure

Worth reading

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

150

¥ million (year-on-year increase in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsFirst 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¥2,719 million+5.8%

Operating profit¥-18 million

Ordinary income¥-12 million

Net income¥-31 million

Operating profit margin-0.7 %

Selling, general and administrative expenses¥2,108 million

Results for the three months of the current quarter

Net Sales

¥2,719 million

Gross profit

¥2,090 million

Selling, general and administrative expenses

¥2,108 million

Operating profit

¥-18 million

Ordinary income

¥-12 million

Profit attributable to owners of the parent

¥-31 million

EBITDA

¥83 million

Full-year earnings forecast

Net Sales

¥12,556 million

Cost of sales

¥2,766 million

Gross profit

¥9,789 million

Selling, general and administrative expenses

¥8,976 million

Operating profit

¥812 million

Ordinary income

¥814 million

Profit attributable to owners of the parent

¥444 million

Operating profit margin

6.5 %

EBITDA

¥1,253 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 Sales45.9

Gross profit45.8

Selling, general and administrative expenses48.1

EBITDA21

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Generally in line with the initial plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Increase in sales in the insurance clinic business¥213 million
Increase in rent in the insurance clinic business¥-27 million
Decrease in sales in the FA business¥-5 million
Increase in personnel expenses in the FA business¥-45 million
Increase in stock sales in the solutions business¥7 million
Decrease in flow sales in the solutions business¥-45 million
Decrease in cost of sales in the systems business¥14 million
Decrease in stock sales in the systems business¥-26 million
Decrease in flow sales in the systems business¥-1 million
Other and personnel expenses, etc.¥-30 million

New initiatives

Joint development of a digital support solution for independent multi-insurance agencies
Addition of audit-trail management functionality to AS SYSTEM and AS-BOX
Development and sale of new AI-based services
Provision of 『書審AI』 (AI document review service)
Expansion of the IFA business handling financial products other than insurance

Key KPIsA metric the company considers important as a management benchmark.

Number of visitors10,675 projects
Year on year against the same period last year+18.1%
Conversion Rate56.8 %
Year on year against the same period last yearPrior-year same-period actual: 61.3%
Deal Closings5,691 projects
Year on year against the same period last year+4.4%
Number of member companies104 companies
Number of employees in the insurance clinic business485 People
Stock sales ratio in the solutions business93.4 %
Year on year against the same period last yearPrior-period actual: 77.5%
Number of IDs in the solutions business7,795 ID
Year on year against the same period last yearPrior-period-end actual: 7782 IDs
Stock sales ratio in the systems business88.1 %
Year on year against the same period last yearPrior-period actual: 82.8%
Percentage of customers acquired through the web51.4 %

Segment results

Hoken Clinic business
Net Sales¥1,512 million (YoY +16.5%)
Operating profit¥228 million (YoY +45.5%)
FA business
Net Sales¥559 million (YoY -1.0%)
Operating profit¥-27 million
Solutions Business
Net Sales¥292 million (YoY -11.3%)
Operating profit¥66 million (YoY -31.3%)
Systems Business
Net Sales¥458 million (YoY -2.1%)
Operating profit¥-52 million
Consolidated adjustments
Net Sales¥-104 million
Operating profit¥-231 million

Medium-term management plan targets

Target fiscal yearFiscal year ending June 2028

Net Sales

¥15,205 million

Operating profit

¥1,578 million

Operating profit margin

10.4 %

ROEAt least 20.0%

Financial targets

ROE

Forecast for the fiscal year ending June 202711.1%

Target for the fiscal year ending June 2028At least 20.0%

Market Size / Share

Total life insurance sales representativesApproximately 1.2 million people

Multi-insurer agency sales representativesApproximately 200,000 people

Multi-insurer agency sales representatives not using our systemMore than 90%

Insurance Clinic store count308 locations, ranked third in the industry

Number of stores and locations

Number of Stores at Period-End308 Store

Change during the periodNet increase of 1 location (111 company-operated locations, 197 franchise locations)

Number of branch offices33 Store

Number of employees

Number of Employees1,028 People including temporary employees

Change during the periodIncrease of 73 from the prior-period end and increase of 173 year on year

Hiring planFA business recruitment target: 256 people (increase of 63 year on year)

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	First quarter of the fiscal year ending June 2027
Net Sales	¥2,719 million (YoY +5.8%)
Operating profit	¥-18 million
Ordinary income	¥-12 million
Net income	¥-31 million
Operating profit margin	-0.7 %
Selling, general and administrative expenses	¥2,108 million
Results for the three months of the current quarter	Net Sales ¥2,719 million / Gross profit ¥2,090 million / Selling, general and administrative expenses ¥2,108 million / Operating profit ¥-18 million / Ordinary income ¥-12 million / Profit attributable to owners of the parent ¥-31 million / EBITDA ¥83 million
Full-year earnings forecast	Net Sales ¥12,556 million / Cost of sales ¥2,766 million / Gross profit ¥9,789 million / Selling, general and administrative expenses ¥8,976 million / Operating profit ¥812 million / Ordinary income ¥814 million / Profit attributable to owners of the parent ¥444 million / Operating profit margin 6.5 % / EBITDA ¥1,253 million
Progress against full-year forecast	Net Sales 45.9 / Gross profit 45.8 / Selling, general and administrative expenses 48.1 / EBITDA 21 / Operating profit Not disclosed / Ordinary income Not disclosed / Net income Not disclosed
Self-assessment against the plan	Generally in line with the initial plan
Segment results	Segment Hoken Clinic business / Net Sales ¥1,512 million (YoY +16.5%) / Operating profit ¥228 million (YoY +45.5%), Segment FA business / Net Sales ¥559 million (YoY -1.0%) / Operating profit ¥-27 million, Segment Solutions Business / Net Sales ¥292 million (YoY -11.3%) / Operating profit ¥66 million (YoY -31.3%), Segment Systems Business / Net Sales ¥458 million (YoY -2.1%) / Operating profit ¥-52 million, Segment Consolidated adjustments / Net Sales ¥-104 million / Operating profit ¥-231 million
Breakdown of Factors Affecting the Change	Factors Increase in sales in the insurance clinic business / Amount ¥213 million, Factors Increase in rent in the insurance clinic business / Amount ¥-27 million, Factors Decrease in sales in the FA business / Amount ¥-5 million, Factors Increase in personnel expenses in the FA business / Amount ¥-45 million, Factors Increase in stock sales in the solutions business / Amount ¥7 million, Factors Decrease in flow sales in the solutions business / Amount ¥-45 million, Factors Decrease in cost of sales in the systems business / Amount ¥14 million, Factors Decrease in stock sales in the systems business / Amount ¥-26 million, Factors Decrease in flow sales in the systems business / Amount ¥-1 million, Factors Other and personnel expenses, etc. / Amount ¥-30 million
Key KPIs	Indicator name Number of visitors / Value 10,675 projects / Year on year against the same period last year 18.1 projects, Indicator name Conversion Rate / Value 56.8 % / Year on year against the same period last year Prior-year same-period actual: 61.3%, Indicator name Deal Closings / Value 5,691 projects / Year on year against the same period last year 4.4 projects, Indicator name Number of member companies / Value 104 companies / Year on year against the same period last year Not disclosed, Indicator name Number of employees in the insurance clinic business / Value 485 People / Year on year against the same period last year Not disclosed, Indicator name Stock sales ratio in the solutions business / Value 93.4 % / Year on year against the same period last year Prior-period actual: 77.5%, Indicator name Number of IDs in the solutions business / Value 7,795 ID / Year on year against the same period last year Prior-period-end actual: 7782 IDs, Indicator name Stock sales ratio in the systems business / Value 88.1 % / Year on year against the same period last year Prior-period actual: 82.8%, Indicator name Percentage of customers acquired through the web / Value 51.4 % / Year on year against the same period last year Not disclosed
Number of stores and locations	Number of Stores at Period-End 308 Store / Change during the period Net increase of 1 location (111 company-operated locations, 197 franchise locations) / Number of branch offices 33 Store
Number of employees	Number of Employees 1,028 People (including temporary employees) / Change during the period Increase of 73 from the prior-period end and increase of 173 year on year / Hiring plan FA business recruitment target: 256 people (increase of 63 year on year)
Medium-term management plan targets	Target fiscal year Fiscal year ending June 2028 / Net Sales ¥15,205 million / Operating profit ¥1,578 million / Operating profit margin 10.4 % / ROE At least 20.0%
Financial targets	ROE Forecast for the fiscal year ending June 2027 11.1% / Target for the fiscal year ending June 2028 At least 20.0%
Market Size / Share	Total life insurance sales representatives Approximately 1.2 million people / Multi-insurer agency sales representatives Approximately 200,000 people / Multi-insurer agency sales representatives not using our system More than 90% / Insurance Clinic store count 308 locations, ranked third in the industry
New initiatives	Joint development of a digital support solution for independent multi-insurance agencies, Addition of audit-trail management functionality to AS SYSTEM and AS-BOX, Development and sale of new AI-based services, Provision of 『書審AI』 (AI document review service), Expansion of the IFA business handling financial products other than insurance

Items this document does not state (10)

Gross Profit MarginUnit price and quantity metricsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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.

Expansion of the insurance clinic business drove the increase in sales, while personnel expenses rose by ¥199 million year on year due to upfront investments, including hiring and training personnel, toward achieving the 3-year plan. The solutions business made upfront investments to optimize comparative recommendation-based sales, while the systems business saw a decline in sales of existing services due to the spread of generative AI and invested in developing new services.

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