Earnings Presentation Materials for the Fiscal Year Ending March 2026 | AIZAWA SECURITIES GROUP CO.,LTD. (8708) timely disclosure

Worth reading

78Important

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-98.6

Operating profit year-on-year change (%)

Wording

Definitive

How definitive the wording is.

Contents of this document

Results presentationFiscal year ending March 20269 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥20,973 million+1.9%

Operating profit¥26 million-98.6%

Ordinary income¥666 million-74.1%

Net income¥2,752 million-13.2%

Selling, general and administrative expenses¥19,879 million

Results for the three months of the current quarter

Operating revenue

¥5,426 million

Selling, general and administrative expenses

¥5,172 million

Operating profit

¥-66 million

Ordinary income

¥59 million

Income before taxes

¥1,132 million

Profit attributable to owners of parent

¥676 million

What the company explained in this material

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

Securities Business¥2,255 million
Financial advisor¥810 million
Platform business¥1,198 million
Other operating revenue¥245 million
Investment Business¥-1,574 million
Asset management business¥-228 million
Transaction-related expenses¥-1,004 million
Fees paid¥-480 million
Personnel expenses and other selling, general and administrative expenses¥-965 million
Other trading-related expenses¥-39 million
Other adjustments¥-363 million
Non-Operating Income and Expenses¥-376 million
Extraordinary Income and Loss¥1,410 million
Income Taxes¥-6 million
Net income attributable to non-controlling interests¥81 million

New initiatives

Rollout of goal-based approach (GBA) sales at all branches from April 2026
Transition to a stable earnings structure by accumulating assets under custody in stock products
Expansion of the platform business
Increase investment in human capital
Renewal of the core systems supporting the platform business

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

ROE6 %
Year on year against the same period last year-0.3 percentage points
PBR0.95 times
Assets under custody in stock products¥5,639 100 million
Year on year against the same period last year+33.2% from the end of the previous fiscal year
Total assets under custody¥23,855 100 million
Year on year against the same period last year+21.3% from the end of the previous fiscal year
Coverage ratio of SG&A expenses by net recurring revenue from stock products35.6 %
Year on year against the same period last year+6.9 percentage points
Percentage of Female Managers15 %
Engagement score75.8 %

Segment results

Securities Business

Operating revenue

¥20,127 million+12.6%

Operating profit

¥1,054 million+313.2%

Income before taxes

¥867 million+139.4%

Investment Business

Operating revenue

¥832 million-65.4%

Operating profit

¥-722 million

Income before taxes

¥2,558 million-37.3%

Asset management business

Operating revenue

¥194 million-54.0%

Operating profit

¥-364 million

Income before taxes

¥-343 million

Group headquarters and other

Operating revenue

¥-182 million

Operating profit

¥58 million

Income before taxes

¥1,074 million

Medium-term management plan targets

ROE8% or higher

Assets under custody in stock products¥800 billion or higher

Total assets under custody¥2.5 trillion or higher

Coverage ratio of SG&A expenses by net recurring revenue from stock products40% or higher

Percentage of Female Managers15% or higher

Engagement scoreAt least 80%

Target fiscal yearFiscal year ending March 2028

Comparison with actual resultsYes

Financial targets

ROE

Target8% or higher

Actual results6.0%

Cost of shareholders’ equityApproximately 7–8%

Annual Dividend

Annual dividend per share¥117

Interim and Year-End Breakdown¥48 interim dividend and ¥69 year-end dividend (both planned to include ordinary and special dividends)

Payout ratio

Total payout ratio of 50% or higher, exceeding a DOE of approximately 2%

Acquisition of treasury shares

Reported resultsIn the fiscal year ended March 2025, total acquisition cost of ¥10,775,065,200 and 6,163,900 shares acquired

Contents of this document
Item	Details
Document type	Results presentation
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	¥20,973 million (YoY +1.9%)
Operating profit	¥26 million (YoY -98.6%)
Ordinary income	¥666 million (YoY -74.1%)
Net income	¥2,752 million (YoY -13.2%)
Selling, general and administrative expenses	¥19,879 million
Results for the three months of the current quarter	Operating revenue ¥5,426 million / Selling, general and administrative expenses ¥5,172 million / Operating profit ¥-66 million / Ordinary income ¥59 million / Income before taxes ¥1,132 million / Profit attributable to owners of parent ¥676 million
Segment results	Securities Business Operating revenue ¥20,127 million (YoY +12.6%) / Operating profit ¥1,054 million (YoY +313.2%) / Income before taxes ¥867 million (YoY +139.4%) / Investment Business Operating revenue ¥832 million (YoY -65.4%) / Operating profit ¥-722 million / Income before taxes ¥2,558 million (YoY -37.3%) / Asset management business Operating revenue ¥194 million (YoY -54.0%) / Operating profit ¥-364 million / Income before taxes ¥-343 million / Group headquarters and other Operating revenue ¥-182 million / Operating profit ¥58 million / Income before taxes ¥1,074 million
Breakdown of Factors Affecting the Change	Factors Securities Business / Amount ¥2,255 million, Factors Financial advisor / Amount ¥810 million, Factors Platform business / Amount ¥1,198 million, Factors Other operating revenue / Amount ¥245 million, Factors Investment Business / Amount ¥-1,574 million, Factors Asset management business / Amount ¥-228 million, Factors Transaction-related expenses / Amount ¥-1,004 million, Factors Fees paid / Amount ¥-480 million, Factors Personnel expenses and other selling, general and administrative expenses / Amount ¥-965 million, Factors Other trading-related expenses / Amount ¥-39 million, Factors Other adjustments / Amount ¥-363 million, Factors Non-Operating Income and Expenses / Amount ¥-376 million, Factors Extraordinary Income and Loss / Amount ¥1,410 million, Factors Income Taxes / Amount ¥-6 million, Factors Net income attributable to non-controlling interests / Amount ¥81 million
Key KPIs	Indicator name ROE / Value 6 % / Year on year against the same period last year -0.3 percentage points, Indicator name PBR / Value 0.95 times / Year on year against the same period last year Not disclosed, Indicator name Assets under custody in stock products / Value ¥5,639 100 million / Year on year against the same period last year +33.2% from the end of the previous fiscal year, Indicator name Total assets under custody / Value ¥23,855 100 million / Year on year against the same period last year +21.3% from the end of the previous fiscal year, Indicator name Coverage ratio of SG&A expenses by net recurring revenue from stock products / Value 35.6 % / Year on year against the same period last year +6.9 percentage points, Indicator name Percentage of Female Managers / Value 15 % / Year on year against the same period last year Not disclosed, Indicator name Engagement score / Value 75.8 % / Year on year against the same period last year Not disclosed
Medium-term management plan targets	ROE 8% or higher / Assets under custody in stock products ¥800 billion or higher / Total assets under custody ¥2.5 trillion or higher / Coverage ratio of SG&A expenses by net recurring revenue from stock products 40% or higher / Percentage of Female Managers 15% or higher / Engagement score At least 80% / Target fiscal year Fiscal year ending March 2028 / Comparison with actual results Yes
Financial targets	ROE Target 8% or higher / Actual results 6.0% / Cost of shareholders’ equity Approximately 7–8%
Annual Dividend	Annual dividend per share ¥117 / Interim and Year-End Breakdown ¥48 interim dividend and ¥69 year-end dividend (both planned to include ordinary and special dividends)
Payout ratio	Total payout ratio of 50% or higher, exceeding a DOE of approximately 2%
Acquisition of treasury shares	Amount under the acquisition limit Not disclosed / Number of shares under the acquisition limit Not disclosed / Period Not disclosed / Reported results In the fiscal year ended March 2025, total acquisition cost of ¥10,775,065,200 and 6,163,900 shares acquired
New initiatives	Rollout of goal-based approach (GBA) sales at all branches from April 2026, Transition to a stable earnings structure by accumulating assets under custody in stock products, Expansion of the platform business, Increase investment in human capital, Renewal of the core systems supporting the platform business

Items this document does not state (14)

Gross Profit MarginOperating profit marginFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital 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.

Operating revenue increased due to higher equity brokerage commissions and trust fees. Operating profit declined due to increased selling, general and administrative expenses associated with increased investment in human capital and the renewal of the core systems supporting the platform business, as well as valuation losses on funds investing in unlisted assets and impairment losses on operating investment securities. The recognition of gains on sales of investment securities partially offset the decline in operating profit at the net income level.

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