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Presentation materials for financial results9241Future Link Network Co.,Ltd.Information and Communications, Services and Others

Transcript of the Full-Year Results Briefing for the Fiscal Year Ending August 2026

For the fiscal year ended August 2026, the company posted an operating loss below its initial forecast due to lower partner revenue and hometown tax donation revenue and higher SG&A expenses. For the fiscal year ending August 2027, it presented a plan to pursue revenue and profit growth by spinning off the hometown tax donation business and focusing on MRR, AI, OEM and overseas expansion.

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Contents of this document

Earnings briefing transcriptFull year ended August 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales15.12 Hundreds of millions of yen
Operating profit¥-8,200 10,000
Gross Profit Margin66.2
Selling, general and administrative expenses10.83 Hundreds of millions of yen
Results for the three months of the current quarterDirectly operated MRR increased from ¥48 million in the second quarter to ¥59 million in the fourth quarter, up 23.7%.
Full-year earnings forecast
Fiscal year ending August 2027
Net Sales
16.75 Hundreds of millions of yen
Operating profit
¥2,200 10,000
MRR
7.02 Hundreds of millions of yen
Regional Information Distribution Business Segment Revenue
11.03 Hundreds of millions of yen
Public Solutions Business Segment Revenue
5.72 Hundreds of millions of yen
Public Solutions Business Segment Profit
1.14 Hundreds of millions of yen
Hometown Tax Donation Revenue
4.41 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan not achieved
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Issues OEM progress / Answer Already implemented at 2 companies. Sales have begun at 1 company, and are scheduled to begin shortly at the other. The plan includes only amounts considered reasonably certain to be achieved.
  2. Issues Growth strategy for the hometown tax donation business / Answer Resume sales activities targeting new local governments and consider alliances with surrounding businesses and other intermediaries in the same industry.
  3. Issues Confidence in the plan for 31.9% MRR growth / Answer Explained that the target is fully achievable, given growth in the directly operated enterprise business.
  4. Issues Operating loss and investment returns / Answer The dispersion of management resources was the primary cause of the loss. The company aims to recoup its investments by restructuring its portfolio and concentrating on growth areas.
  5. Issues Response to past shortfalls against earnings forecasts / Answer The company acknowledged that it had expanded its business scope too broadly and will improve planning accuracy through selectivity and focus.
  6. Issues Timing of grant receipt / Answer The grant is expected to be received as scheduled in the current fiscal year.
  7. Issues Breakdown of company-wide expenses / Answer There are inefficiencies in company-wide functions and indirect departments, and the company is considering streamlining administrative and other functions.
  8. Issues Investment decisions related to valuation losses and impairment / Answer The company acknowledged that its outlook for the growth rate of its investees had been overly optimistic.
  9. Issues 2030 market capitalisation target / Answer The company will concentrate management resources on MRR and aims for a market capitalisation of ¥10 billion.
  10. Issues Global Strategy / Answer After exceeding 100 contracts within 3 months of launching in Ho Chi Minh City, Vietnam, the company is considering expansion into other cities and countries.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Variance from the revenue forecast¥-22,900 10,000
  • Variance from the operating profit forecast¥-8,300 10,000
  • Impact on net profit from the delayed receipt of human resources development support subsidies¥-5,400 10,000
  • Impairment Loss on Investment Securities¥-5,000 10,000
  • Impairment Losses¥-7,300 10,000
  • Variance from the plan for new partner membership revenue¥-6,300 10,000
  • Variance from the plan for hometown tax donation revenue¥-14,000 10,000
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • FY2027 hometown tax donation amount77 Hundreds of millions of yen
  • FY2027 MRR compositionDirectly operated ¥317 million, partners ¥334 million, OEM ¥15 million, global ¥34 million
New initiatives
  • Demerger of the hometown tax donation business and establishment of a dedicated subsidiary
  • Strengthening the rollout of MRR to enterprise customers
  • Development and enhancement of the AI agent “Maipure-kun”
  • OEM Expansion
  • Overseas expansion originating in Vietnam
  • Resumption of sales efforts to new local governments in the hometown tax donation business and consideration of alliances
Key KPIsA metric the company considers important as a management benchmark.
  • MRR5.32 Hundreds of millions of yen
  • Revenue from the related-population creation business
    Year on year against the same period last year+121.8%
  • Marketing support business revenue1.98 Hundreds of millions of yen
    Year on year against the same period last year+11.9%
  • Number of stores using まいぷれ
  • Number of operating partnersDown 20 companies year on year
    Year on year against the same period last yearDecreased
  • Number of contracted municipalities884 Local government
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average Mypl unit price¥12,826
    Year-on-year increase2,390
    Year on year against the same period last yearIncreased
  • Number of stores using まいぷれ
  • Donation amount handled through the hometown tax donation business81.5 Hundreds of millions of yen
Segment results
  • Regional information distribution business
    Net Sales8.33 Hundreds of millions of yen
    Year on year against the same period last year+8.7%
    Profit1.92 Hundreds of millions of yen
  • Public solutions business
    Net Sales6.78 Hundreds of millions of yen
    Year on year against the same period last year-12.7%
  • Business areasHometown Tax Donations
    Net Sales
    5.26 Hundreds of millions of yen
    Year on year against the same period last year-10.8%
Medium-term management plan targets
  • TargetMarket capitalization of ¥10 billion in 2030
    Target fiscal year2,030
Market Size / Share
  • Number of target customers421 10,000 companies
  • Target number of Mypl stores25 10,000 companies
  • Target market for Mypl-kun implementation180,000–230,000 companies
  • Prospective customers for the premium outsourced operations plan5,000–18,000 companies
Number of stores and locations
Number at period-endThe number of Mypl stores is not disclosed; 884 local governments under contract
Contents of this document
ItemDetails
Document typeEarnings briefing transcript
Fiscal Period CoveredFull year ended August 2026
Net Sales15.12 Hundreds of millions of yen
Operating profit¥-8,200 10,000
Gross Profit Margin66.2
Selling, general and administrative expenses10.83 Hundreds of millions of yen
Results for the three months of the current quarterDirectly operated MRR increased from ¥48 million in the second quarter to ¥59 million in the fourth quarter, up 23.7%.
Full-year earnings forecastFiscal year ending August 2027 Net Sales 16.75 Hundreds of millions of yen / Operating profit ¥2,200 10,000 / MRR 7.02 Hundreds of millions of yen / Regional Information Distribution Business Segment Revenue 11.03 Hundreds of millions of yen / Public Solutions Business Segment Revenue 5.72 Hundreds of millions of yen / Public Solutions Business Segment Profit 1.14 Hundreds of millions of yen / Hometown Tax Donation Revenue 4.41 Hundreds of millions of yen
Self-assessment against the planPlan not achieved
Segment resultsSegment Regional information distribution business / Net Sales 8.33 Hundreds of millions of yen / Year on year against the same period last year 8.7 / Profit 1.92 Hundreds of millions of yen, Segment Public solutions business / Net Sales 6.78 Hundreds of millions of yen / Year on year against the same period last year -12.7 / Profit Not disclosed, Business areas Hometown Tax Donations / Net Sales 5.26 Hundreds of millions of yen / Year on year against the same period last year -10.8
Breakdown of Factors Affecting the ChangeFactors Variance from the revenue forecast / Amount ¥-22,900 10,000, Factors Variance from the operating profit forecast / Amount ¥-8,300 10,000, Factors Impact on net profit from the delayed receipt of human resources development support subsidies / Amount ¥-5,400 10,000, Factors Impairment Loss on Investment Securities / Amount ¥-5,000 10,000, Factors Impairment Losses / Amount ¥-7,300 10,000, Factors Variance from the plan for new partner membership revenue / Amount ¥-6,300 10,000, Factors Variance from the plan for hometown tax donation revenue / Amount ¥-14,000 10,000
Key KPIsIndicator MRR / Value 5.32 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator Revenue from the related-population creation business / Value Not disclosed / Year on year against the same period last year 121.8 Up 121.8% year on year, Indicator Marketing support business revenue / Value 1.98 Hundreds of millions of yen / Year on year against the same period last year 11.9 Hundreds of millions of yen, Indicator Number of stores using まいぷれ / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator Number of operating partners / Value Down 20 companies year on year / Year on year against the same period last year Decreased, Indicator Number of contracted municipalities / Value 884 Local government / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator Average Mypl unit price / Value ¥12,826 / Year-on-year increase ¥2,390 / Year on year against the same period last year Increased, Indicator Number of stores using まいぷれ / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator Donation amount handled through the hometown tax donation business / Value 81.5 Hundreds of millions of yen / Year on year against the same period last year Not disclosed
Number of stores and locationsNumber at period-end The number of Mypl stores is not disclosed; 884 local governments under contract / Number of store openings and closures during the period Not disclosed
Assumptions Underlying the Business OutlookItem FY2027 hometown tax donation amount / Value 77 Hundreds of millions of yen, Item FY2027 MRR composition / Value Directly operated ¥317 million, partners ¥334 million, OEM ¥15 million, global ¥34 million
Medium-term management plan targetsTarget Market capitalization of ¥10 billion in 2030 / Target fiscal year 2,030
Market Size / ShareItem Number of target customers / Value 421 10,000 companies, Item Target number of Mypl stores / Value 25 10,000 companies, Item Target market for Mypl-kun implementation / Value 180,000–230,000 companies, Item Prospective customers for the premium outsourced operations plan / Value 5,000–18,000 companies
Key points of the Q&AIssues OEM progress / Answer Already implemented at 2 companies. Sales have begun at 1 company, and are scheduled to begin shortly at the other. The plan includes only amounts considered reasonably certain to be achieved., Issues Growth strategy for the hometown tax donation business / Answer Resume sales activities targeting new local governments and consider alliances with surrounding businesses and other intermediaries in the same industry., Issues Confidence in the plan for 31.9% MRR growth / Answer Explained that the target is fully achievable, given growth in the directly operated enterprise business., Issues Operating loss and investment returns / Answer The dispersion of management resources was the primary cause of the loss. The company aims to recoup its investments by restructuring its portfolio and concentrating on growth areas., Issues Response to past shortfalls against earnings forecasts / Answer The company acknowledged that it had expanded its business scope too broadly and will improve planning accuracy through selectivity and focus., Issues Timing of grant receipt / Answer The grant is expected to be received as scheduled in the current fiscal year., Issues Breakdown of company-wide expenses / Answer There are inefficiencies in company-wide functions and indirect departments, and the company is considering streamlining administrative and other functions., Issues Investment decisions related to valuation losses and impairment / Answer The company acknowledged that its outlook for the growth rate of its investees had been overly optimistic., Issues 2030 market capitalisation target / Answer The company will concentrate management resources on MRR and aims for a market capitalisation of ¥10 billion., Issues Global Strategy / Answer After exceeding 100 contracts within 3 months of launching in Ho Chi Minh City, Vietnam, the company is considering expansion into other cities and countries.
New initiativesDemerger of the hometown tax donation business and establishment of a dedicated subsidiary, Strengthening the rollout of MRR to enterprise customers, Development and enhancement of the AI agent “Maipure-kun”, OEM Expansion, Overseas expansion originating in Vietnam, Resumption of sales efforts to new local governments in the hometown tax donation business and consideration of alliances
Items this document does not state (12)
Ordinary incomeNet incomeOperating profit marginProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog

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 cited lower partner-related revenue and hometown tax donation revenue, higher SG&A expenses, the delayed receipt of human resources development support subsidies, an ¥50 million valuation loss on investment securities and a ¥73 million impairment loss. It explained that partner revenue was affected by difficulty generating leads in new business development and insufficient operating structures and staffing at prospective customers, while hometown tax donation revenue was affected by the backlash from rush demand ahead of the system revision and the termination of contracts with certain local governments.

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Transcript of the Full-Year Results Briefing for the Fiscal Year Ending August 2026 | Future Link Network Co.,Ltd. (9241) timely disclosure | Komori