Worth reading
49Recurring
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
10
¥100 million (negative impact on profit)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending November 20266 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 (recovery has been slower than initially expected)Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Factors behind the recovery in second-quarter revenue and the downward revision to the full-year forecast / Summary of response Customer acquisition through Yamada Denki expanded to 3,000 households per month, and the distribution of leads from a major partner company resumed in June. The effects of these initiatives are being estimated conservatively, while upfront investment in customer acquisition, recruitment and training is weighing on profit.
- Issues Progress on the business improvement plan / Summary of response Staffing for meetings, committees and working groups has been completed, and monitoring is under way. A progress report was submitted to the Kanto Local Finance Bureau on 15 May.
- Issues Risk that the recovery in results will not proceed as planned / Summary of response A decline in the number of sales employees is a risk. The company is strengthening education and training for groups with high turnover rates, with the aim of improving retention.
- Issues Impact of changes in the industry environment / Summary of response The company views stronger operational control systems as positive for the company, while noting that additional funding may be required for staffing and system changes.
- Issues Referral hiring of sales employees / Summary of response The company explained that many employees achieve results quickly, which contributes to higher retention and lower turnover.
- Issues Response to a fully commission-based compensation system / Summary of response The company is proceeding with confirmation calls to customers, internal audits at all locations, the addition of functions to its customer management system, and the establishment of a specialized monitoring department.
- Issues Rising interest rates and insurance products / Summary of response The company handles approximately 700 products and has more than 2 million policies in force. When assumed interest rates rise, it will propose products that offer benefits to customers.
- Issues Conservatism of the plan after the downward revision / Summary of response The company explained that the current plan is not excessively conservative and was formulated as a level that must be achieved reliably during the current fiscal year.
- Issues Second-half new contracts and profit plan / Summary of response The company aims for approximately 60,000 new contracts in each quarter of the second half, or 120,000 in total. Upfront costs for expanding customer acquisition, strengthening recruitment and initial training will be recognized ahead of the related benefits.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Cost of acquiring prospective insurance customers
- Investment in recruiting sales employees and their education and training after joining the company
- Impact of upfront investment on profitApproximately ¥1 billion negative
New initiatives
- Development of an education curriculum for groups of sales employees with high turnover rates
- Strengthening the training framework for sales employees
- Adding monitoring functions to the customer management system
- Establishment of a specialized monitoring department
- Upfront investment in recruitment and training to expand customer acquisition through partner companies
Key KPIsA metric the company considers important as a management benchmark.
- Monthly households acquired through Yamada Denki3,000 Households/month
- Number of products handledApproximately 700
- Number of in-force policiesMore than 2 millionYear on year against the same period last yearIncreased
- Average quarterly number of new contracts in the previous periodApproximately 57,000
- Current number of new contractsMore than 50,000
Number of employees
The number of sales employees declined slightly on a net basis in the second quarter. It increased on a net basis in April and May. Number not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending November 2026 |
| Self-assessment against the plan | Below plan (recovery has been slower than initially expected) |
| Breakdown of Factors Affecting the Change | Factors Cost of acquiring prospective insurance customers / Amount Not disclosed, Factors Investment in recruiting sales employees and their education and training after joining the company / Amount Not disclosed, Factors Impact of upfront investment on profit / Amount Approximately ¥1 billion negative |
| Key KPIs | Indicator name Monthly households acquired through Yamada Denki / Value 3,000 Households/month / Year on year against the same period last year Not disclosed, Indicator name Number of products handled / Value Approximately 700 / Year on year against the same period last year Not disclosed, Indicator name Number of in-force policies / Value More than 2 million / Year on year against the same period last year Increased, Indicator name Average quarterly number of new contracts in the previous period / Value Approximately 57,000 / Year on year against the same period last year Not disclosed, Indicator name Current number of new contracts / Value More than 50,000 / Year on year against the same period last year Not disclosed |
| Number of employees | The number of sales employees declined slightly on a net basis in the second quarter. It increased on a net basis in April and May. Number not disclosed |
| Key points of the Q&A | Issues Factors behind the recovery in second-quarter revenue and the downward revision to the full-year forecast / Summary of response Customer acquisition through Yamada Denki expanded to 3,000 households per month, and the distribution of leads from a major partner company resumed in June. The effects of these initiatives are being estimated conservatively, while upfront investment in customer acquisition, recruitment and training is weighing on profit., Issues Progress on the business improvement plan / Summary of response Staffing for meetings, committees and working groups has been completed, and monitoring is under way. A progress report was submitted to the Kanto Local Finance Bureau on 15 May., Issues Risk that the recovery in results will not proceed as planned / Summary of response A decline in the number of sales employees is a risk. The company is strengthening education and training for groups with high turnover rates, with the aim of improving retention., Issues Impact of changes in the industry environment / Summary of response The company views stronger operational control systems as positive for the company, while noting that additional funding may be required for staffing and system changes., Issues Referral hiring of sales employees / Summary of response The company explained that many employees achieve results quickly, which contributes to higher retention and lower turnover., Issues Response to a fully commission-based compensation system / Summary of response The company is proceeding with confirmation calls to customers, internal audits at all locations, the addition of functions to its customer management system, and the establishment of a specialized monitoring department., Issues Rising interest rates and insurance products / Summary of response The company handles approximately 700 products and has more than 2 million policies in force. When assumed interest rates rise, it will propose products that offer benefits to customers., Issues Conservatism of the plan after the downward revision / Summary of response The company explained that the current plan is not excessively conservative and was formulated as a level that must be achieved reliably during the current fiscal year., Issues Second-half new contracts and profit plan / Summary of response The company aims for approximately 60,000 new contracts in each quarter of the second half, or 120,000 in total. Upfront costs for expanding customer acquisition, strengthening recruitment and initial training will be recognized ahead of the related benefits. |
| New initiatives | Development of an education curriculum for groups of sales employees with high turnover rates, Strengthening the training framework for sales employees, Adding monitoring functions to the customer management system, Establishment of a specialized monitoring department, Upfront investment in recruitment and training to expand customer acquisition through partner companies |
Items this document does not state (23)
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 locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital 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 company explained that costs to acquire prospective insurance customers to restore customer acquisition through partner companies, increased recruitment of sales employees, and education and training for new employees would have a negative impact of approximately ¥1 billion on profit. It also cited the temporary suspension of customer acquisition through partner companies and the delayed recovery in the number of sales employees as factors behind the downward revision to its earnings forecast.
How to read this page
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