Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | Advantage Risk Management Co.,Ltd. (8769) timely disclosure

Worth reading

53Recurring

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

% (year-on-year change in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 20275 items taken from the company’s own explanation

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

Net Sales¥2,372 million+6.0%

Operating profit¥90 million-37.8%

Ordinary income¥105 million-30.8%

Net income¥125 million +29.1%profit attributable to owners of the parent

Operating profit margin3.8

Results for the three months of the current quarter

Net Sales

¥2,372 million

EBITDA

¥335 million

Operating profit

¥90 million

Ordinary income

¥105 million

Net income

¥125 million

What the company explained in this material

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

Small-Amount and Short-Term Insurance Business+¥64 million
DetailsNewly consolidated
LTD/EB business+¥37 million
DetailsYear-on-year revenue increase
Healthcare Management business+¥36 million
DetailsYear-on-year revenue increase
Work-Life Balance Support business+¥16 million
DetailsYear-on-year revenue increase
Mentality Management business-¥20 million
DetailsYear-on-year revenue decline
Personnel expenses+¥72 million
Marketing Expenses+¥25 million
Variable costs (cost of sales) in the healthcare field+¥23 million
Systems-related expenses+¥6 million
Software amortization-¥20 million
Costs of investigating and considering strategic options+¥22 million

New initiatives

Establishment of a new Engagement Solutions Department specializing in employee engagement
Launch of the new Occupational Health Dock service
Provision of “Advantage Pidika,” a pulse survey covering mental health, engagement and other areas

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

Recurring revenue ratio88.6 %
Year-on-year (%)1.6
Number of contracted companies3,190 companies
Number of service users634 10,000 people
Adoption rate among companies certified as White 500 companies or Health and Productivity Management Outstanding Organizations30 Approximately %
Mentality Management business recurring revenue¥749 million
Year-on-year (%)-1.3
Solution revenue¥181 million
Year-on-year (%)1.1

Segment results

Mentality Management business
Net Sales¥935 million
Year-on-Year Change in Revenue (%)-2.1
Profit¥118 million
Profit year-on-year change_pct3.2
Healthcare Management business
Net Sales¥803 million
Year-on-Year Change in Revenue (%)4.7
Profit¥54 million
LTD/EB business
Net Sales¥460 million
Year-on-Year Change in Revenue (%)8.8
Profit year-on-year change_pct-6.9
Work-Life Balance Support business
Net Sales¥108 million
Year-on-Year Change in Revenue (%)17.4
ProfitReturn to profitability
Small-Amount and Short-Term Insurance Business
Net Sales¥64 million
Year-on-year change in profitNo year-on-year comparison due to new consolidation

Market Size / Share

3,400 large corporations recognized as Health and Productivity Management Outstanding Organizations

ShareApproximately 30% of companies certified as White 500 companies or Health and Productivity Management Outstanding Organizations

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥2,372 million (YoY +6.0%)
Operating profit	¥90 million (YoY -37.8%)
Ordinary income	¥105 million (YoY -30.8%)
Net income	¥125 million (profit attributable to owners of the parent) (YoY +29.1%)
Operating profit margin	3.8
Results for the three months of the current quarter	Net Sales ¥2,372 million / EBITDA ¥335 million / Operating profit ¥90 million / Ordinary income ¥105 million / Net income ¥125 million
Segment results	Segment Mentality Management business / Net Sales ¥935 million / Year-on-Year Change in Revenue (%) -2.1 / Profit ¥118 million / Profit year-on-year change_pct 3.2, Segment Healthcare Management business / Net Sales ¥803 million / Year-on-Year Change in Revenue (%) 4.7 / Profit ¥54 million, Segment LTD/EB business / Net Sales ¥460 million / Year-on-Year Change in Revenue (%) 8.8 / Profit year-on-year change_pct -6.9, Segment Work-Life Balance Support business / Net Sales ¥108 million / Year-on-Year Change in Revenue (%) 17.4 / Profit Return to profitability, Segment Small-Amount and Short-Term Insurance Business / Net Sales ¥64 million / Year-on-year change in profit No year-on-year comparison due to new consolidation
Breakdown of Factors Affecting the Change	Factors Small-Amount and Short-Term Insurance Business / Amount +¥64 million / Details Newly consolidated, Factors LTD/EB business / Amount +¥37 million / Details Year-on-year revenue increase, Factors Healthcare Management business / Amount +¥36 million / Details Year-on-year revenue increase, Factors Work-Life Balance Support business / Amount +¥16 million / Details Year-on-year revenue increase, Factors Mentality Management business / Amount -¥20 million / Details Year-on-year revenue decline, Factors Personnel expenses / Amount +¥72 million, Factors Marketing Expenses / Amount +¥25 million, Factors Variable costs (cost of sales) in the healthcare field / Amount +¥23 million, Factors Systems-related expenses / Amount +¥6 million, Factors Software amortization / Amount -¥20 million, Factors Costs of investigating and considering strategic options / Amount +¥22 million
Key KPIs	Indicator name Recurring revenue ratio / Value 88.6 % / Year-on-year (%) 1.6 %, Indicator name Number of contracted companies / Value 3,190 companies, Indicator name Number of service users / Value 634 10,000 people, Indicator name Adoption rate among companies certified as White 500 companies or Health and Productivity Management Outstanding Organizations / Value 30 Approximately %, Indicator name Mentality Management business recurring revenue / Value ¥749 million / Year-on-year (%) ¥-1.3 million, Indicator name Solution revenue / Value ¥181 million / Year-on-year (%) ¥1.1 million
Market Size / Share	Market Size 3,400 large corporations recognized as Health and Productivity Management Outstanding Organizations / Share Approximately 30% of companies certified as White 500 companies or Health and Productivity Management Outstanding Organizations
New initiatives	Establishment of a new Engagement Solutions Department specializing in employee engagement, Launch of the new Occupational Health Dock service, Provision of “Advantage Pidika,” a pulse survey covering mental health, engagement and other areas

Items this document does not state (18)

Gross Profit MarginSelling, general and administrative expensesFull-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 outlookMedium-term management plan targetsFinancial targetsAnnual 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.

Revenue increased due to higher sales in the Healthcare Management, LTD/EB and Work-Life Balance Support businesses, as well as the newly consolidated short-term insurance business. Operating profit declined due to higher personnel and marketing expenses, together with ¥22 million in costs incurred to investigate and consider strategic options. Net income increased due to the recognition of gains on the sale of investment securities.

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