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Financial results presentation8769Advantage Risk Management Co.,Ltd.Information and Communications, Services and Others

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

Revenue increased across all businesses in the first half, while operating profit declined due to upfront marketing investments and one-time expenses. Interim net income increased due to a gain on the sale of investment securities, and the full-year earnings forecast was unchanged.

Worth reading
52Recurring
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
-46
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales4,801 Millions of yen+5.3%
Operating profit233 Millions of yen-16.6%
Ordinary income245 Millions of yen-13.5%
Net income209 Millions of yen+12.0%
Operating profit margin4.9 %
Results for the three months of the current quarter
Net Sales
2,700 Millions of yen+5.3%
Operating profit
143 Millions of yen+6.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The first half was broadly in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Mentality Management business54 Millions of yen
  • Healthcare Management business-10 Millions of yen
  • LTD/EB business-40 Millions of yen
  • Work-Life Balance Support business51 Millions of yen
  • Small-Amount and Short-Term Insurance Business-16 Millions of yen
  • One-time expenses-48 Millions of yen
  • Other corporate expenses-37 Millions of yen
  • Upfront marketing investments and other expenses¥-85 million increase in total corporate expenses
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
A revenue structure in which most profit is recorded in the second half
New initiatives
  • An initiative to integrate login environments, enabling users to access multiple services with a single ID from spring 2027
  • Joint research with the National Institute of Advanced Industrial Science and Technology on AI-powered personalised training
  • Addition of online medical consultations to Career&Baby (scheduled to launch in January 2027)
  • Development of new products combining the Group's services in the small-amount and short-term insurance business
Key KPIsA metric the company considers important as a management benchmark.
  • Recurring revenue ratio85.4 %
    Year on year against the same period last yearBroadly unchanged year on year
  • Recurring Revenue4,102 Millions of yen
    Year on year against the same period last year+5.3%
  • Insurance commissions and premiums699 Millions of yen
    Year on year against the same period last year+12.0%
  • Number of contracted companies (work-life balance support)158 companies
    Year on year against the same period last year+16.2%
  • System investment429 Millions of yen
    Year on year against the same period last year+26.6%
  • Free cash flow1,077 Millions of yen
    Year on year against the same period last year+321.0%
Segment results
  • Mentality Management business
    Net Sales2,027 Millions of yen (YoY +0.8%)
    Profit376 Millions of yen (YoY +17.0%)
  • Healthcare Management business
    Net Sales1,614 Millions of yen (YoY +5.3%)
    Profit114 Millions of yen (YoY -8.4%)
  • LTD/EB business
    Net Sales792 Millions of yen (YoY +5.8%)
    Profit213 Millions of yen (YoY -16.1%)
  • Work-Life Balance Support business
    Net Sales240 Millions of yen (YoY +23.8%)
    Profit35 Millions of yen
  • Small-Amount and Short-Term Insurance Business
    Net Sales126 Millions of yen (YoY +76.2%)
    Profit-25 Millions of yen
Financial targets
Equity ratio
47 %
Market Size / Share
Percentage of services provided to Health and Productivity Management Outstanding Organizations (White 500) and other organizationsAt least 30%
Number of companies using the service3,765 companies
Capital expenditures
¥429 million system investment
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales4,801 Millions of yen (YoY +5.3%)
Operating profit233 Millions of yen (YoY -16.6%)
Ordinary income245 Millions of yen (YoY -13.5%)
Net income209 Millions of yen (YoY +12.0%)
Operating profit margin4.9 %
Results for the three months of the current quarterNet Sales 2,700 Millions of yen (YoY +5.3%) / Operating profit 143 Millions of yen (YoY +6.0%)
Self-assessment against the planThe first half was broadly in line with plan
Segment resultsSegment Mentality Management business / Net Sales 2,027 Millions of yen (YoY +0.8%) / Profit 376 Millions of yen (YoY +17.0%), Segment Healthcare Management business / Net Sales 1,614 Millions of yen (YoY +5.3%) / Profit 114 Millions of yen (YoY -8.4%), Segment LTD/EB business / Net Sales 792 Millions of yen (YoY +5.8%) / Profit 213 Millions of yen (YoY -16.1%), Segment Work-Life Balance Support business / Net Sales 240 Millions of yen (YoY +23.8%) / Profit 35 Millions of yen, Segment Small-Amount and Short-Term Insurance Business / Net Sales 126 Millions of yen (YoY +76.2%) / Profit -25 Millions of yen
Breakdown of Factors Affecting the ChangeFactors Mentality Management business / Amount 54 Millions of yen, Factors Healthcare Management business / Amount -10 Millions of yen, Factors LTD/EB business / Amount -40 Millions of yen, Factors Work-Life Balance Support business / Amount 51 Millions of yen, Factors Small-Amount and Short-Term Insurance Business / Amount -16 Millions of yen, Factors One-time expenses / Amount -48 Millions of yen, Factors Other corporate expenses / Amount -37 Millions of yen, Factors Upfront marketing investments and other expenses / Amount ¥-85 million (increase in total corporate expenses)
Key KPIsIndicator name Recurring revenue ratio / Value 85.4 % / Year on year against the same period last year Broadly unchanged year on year, Indicator name Recurring Revenue / Value 4,102 Millions of yen / Year on year against the same period last year 5.3 Millions of yen, Indicator name Insurance commissions and premiums / Value 699 Millions of yen / Year on year against the same period last year 12 Millions of yen, Indicator name Number of contracted companies (work-life balance support) / Value 158 companies / Year on year against the same period last year 16.2 companies, Indicator name System investment / Value 429 Millions of yen / Year on year against the same period last year 26.6 Millions of yen, Indicator name Free cash flow / Value 1,077 Millions of yen / Year on year against the same period last year 321 Millions of yen
Assumptions Underlying the Business OutlookA revenue structure in which most profit is recorded in the second half
Financial targetsEquity ratio 47 %
Capital expenditures¥429 million (system investment)
Market Size / SharePercentage of services provided to Health and Productivity Management Outstanding Organizations (White 500) and other organizations At least 30% / Number of companies using the service 3,765 companies
New initiativesAn initiative to integrate login environments, enabling users to access multiple services with a single ID from spring 2027, Joint research with the National Institute of Advanced Industrial Science and Technology on AI-powered personalised training, Addition of online medical consultations to Career&Baby (scheduled to launch in January 2027), Development of new products combining the Group's services in the small-amount and short-term insurance business
Items this document does not state (14)
Gross Profit MarginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders 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 across all businesses. Operating profit declined due to ¥46 million in upfront marketing investments to acquire new customers, ¥48 million in one-time expenses for investigating and considering strategic options, and increased costs from strengthening the organisation, variable expenses and personnel expenses. Interim net income increased due to the recognition of a ¥64 million gain on the sale of investment securities.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Advantage Risk Management Co.,Ltd. (8769) timely disclosure | Komori