Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | HIKARI TSUSHIN,INC. (9435) timely disclosure

Worth reading

61In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

4209

¥ million (revenue for the first half of the fiscal year ending March 2027)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20277 items taken from the company’s own explanation

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

Net Sales¥4,209 100 million+16.0%

Operating profit¥657 100 million+14.0%

Ordinary income¥871 100 million -1.0%profit before tax

Net income¥675 100 million-3.0%

Full-year earnings forecast

Net Sales

¥7,750 100 million

Stock profit

¥2,015 100 million

Operating profit

¥1,300 100 million

Profit before tax

¥1,775 100 million

Profit before tax excluding foreign exchange gains or losses

¥1,797 100 million

Net income

¥1,200 100 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales54%

Stock profit47%

Operating profit50%

Profit before tax49%

Profit before tax excluding foreign exchange gains or losses50%

Net income56%

Operating profit excluding one-time gains or losses and other items49%

What the company explained in this material

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

Increase in revenue
FactorsHigher electricity trading prices and an increase in the number of customer contracts
Foreign exchange loss¥-28 100 million
Year-on-year increase in foreign exchange losses¥-27 100 million
Gains on the sale of businesses and other items¥9 100 million
Increase in operating profit
FactorsHigher electricity and gas sales prices and an increase in the customer base
Continued operating profit decline
FactorsIncrease in amortisation of electricity and gas customers acquired in prior years
Increase in operating profit
FactorsIncrease in telecommunications content and decrease in acquisition costs
Increase in operating profit
FactorsSteady beverage sales and an increase in the customer base
Increase in operating profit
FactorsIncrease in the insurance customer base and decrease in acquisition costs
Increase in operating profit
FactorsStrong performance in overseas financial services businesses

New initiatives

Three-party joint investment in Leopalace21 and its conversion into an equity-method affiliate
Introduction of electricity and gas, telecommunications, insurance, warranty and other services at properties managed by Leopalace21
Remix Denki becoming a consolidated subsidiary in October 2026
Expansion of the customer base and recurring profits in the electricity retail business through M&A
Increase in the full-year dividend forecast to ¥815 per share

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

Stock profit¥954 100 million
Year on year against the same period last year+3.0%
EBITDA¥745 100 million
Year on year against the same period last year+13.0%
Capital Adequacy¥13,266 100 million
Year on year against the same period last year+25.0%
Equity ratio44.4 %
Year on year against the same period last year+3.4%
Share of operating profit (most recent 12 months)¥1,546 100 million
Year on year against the same period last year+17.0%
Earnings Yield16.6 %
Year on year against the same period last year+2.0%
Dividend yield4.2 %
Year on year against the same period last year0.0%
Dividends received¥266 100 million
Year on year against the same period last year+16.0%
Gains and losses on disposals¥600 100 million
Year on year against the same period last year+127.0%
Number of listed equity-method affiliates43 companies
Year on year against the same period last year+3 companies from the end of June 2026

Segment results

Electricity and gas
Net Sales¥2,026 100 million (YoY +30.0%)
Stock profit¥361 100 million (YoY +5.0%)
Acquisition costs¥187 100 million (YoY +18.0%)
Operating profit¥174 100 million (YoY -5.0%)
Connectivity
Net Sales¥637 100 million (YoY 0.0%)
Stock profit¥209 100 million (YoY 0.0%)
Acquisition costs¥41 100 million (YoY -41.0%)
Operating profit¥167 100 million (YoY +20.0%)
Beverages
Net Sales¥453 100 million (YoY +6.0%)
Stock profit¥179 100 million (YoY +3.0%)
Acquisition costs¥118 100 million (YoY -3.0%)
Operating profit¥60 100 million (YoY +22.0%)
Insurance
Net Sales¥205 100 million (YoY +25.0%)
Stock profit¥89 100 million (YoY +10.0%)
Acquisition costs¥32 100 million (YoY -9.0%)
Operating profit¥57 100 million (YoY +25.0%)
Financial risk
Net Sales¥259 100 million (YoY +28.0%)
Acquisition costs¥-139 100 million
Operating profit¥139 100 million (YoY +39.0%)
Solutions
Net Sales¥135 100 million (YoY +1.0%)
Stock profit¥51 100 million (YoY +12.0%)
Acquisition costs¥32 100 million (YoY +19.0%)
Operating profit¥19 100 million (YoY +1.0%)
Agency sales
Net Sales¥492 100 million (YoY 0.0%)
Stock profit¥63 100 million (YoY -5.0%)
Acquisition costs¥1 100 million (YoY -91.0%)
Operating profit¥61 100 million (YoY +31.0%)

Annual Dividend

Annual dividend per share¥815

Breakdown

1Q200

2Q205

3Q205

4Q205

Payout ratio

Rate39 % forecast total payout ratio for the fiscal year ending March 2027

10-year cumulative total payout ratio34%

Acquisition of treasury shares

Buyback limit

100 Shares maximum

Number of Shares350,000

Amount unit¥100 million (maximum)

Period1 July 2026–30 June 2027

Actual as of end-October 2026

Number of Shares137,100

Amount unit¥100 million

Progress against share acquisition limit39.2%

Progress against amount limit52.0%

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥4,209 100 million (YoY +16.0%)
Operating profit	¥657 100 million (YoY +14.0%)
Ordinary income	¥871 100 million (profit before tax) (YoY -1.0%)
Net income	¥675 100 million (YoY -3.0%)
Full-year earnings forecast	Net Sales ¥7,750 100 million / Stock profit ¥2,015 100 million / Operating profit ¥1,300 100 million / Profit before tax ¥1,775 100 million / Profit before tax excluding foreign exchange gains or losses ¥1,797 100 million / Net income ¥1,200 100 million
Progress against full-year forecast	Net Sales 54% / Stock profit 47% / Operating profit 50% / Profit before tax 49% / Profit before tax excluding foreign exchange gains or losses 50% / Net income 56% / Operating profit excluding one-time gains or losses and other items 49%
Segment results	Segment Electricity and gas / Net Sales ¥2,026 100 million (YoY +30.0%) / Stock profit ¥361 100 million (YoY +5.0%) / Acquisition costs ¥187 100 million (YoY +18.0%) / Operating profit ¥174 100 million (YoY -5.0%), Segment Connectivity / Net Sales ¥637 100 million (YoY 0.0%) / Stock profit ¥209 100 million (YoY 0.0%) / Acquisition costs ¥41 100 million (YoY -41.0%) / Operating profit ¥167 100 million (YoY +20.0%), Segment Beverages / Net Sales ¥453 100 million (YoY +6.0%) / Stock profit ¥179 100 million (YoY +3.0%) / Acquisition costs ¥118 100 million (YoY -3.0%) / Operating profit ¥60 100 million (YoY +22.0%), Segment Insurance / Net Sales ¥205 100 million (YoY +25.0%) / Stock profit ¥89 100 million (YoY +10.0%) / Acquisition costs ¥32 100 million (YoY -9.0%) / Operating profit ¥57 100 million (YoY +25.0%), Segment Financial risk / Net Sales ¥259 100 million (YoY +28.0%) / Stock profit Not disclosed / Acquisition costs ¥-139 100 million / Operating profit ¥139 100 million (YoY +39.0%), Segment Solutions / Net Sales ¥135 100 million (YoY +1.0%) / Stock profit ¥51 100 million (YoY +12.0%) / Acquisition costs ¥32 100 million (YoY +19.0%) / Operating profit ¥19 100 million (YoY +1.0%), Segment Agency sales / Net Sales ¥492 100 million (YoY 0.0%) / Stock profit ¥63 100 million (YoY -5.0%) / Acquisition costs ¥1 100 million (YoY -91.0%) / Operating profit ¥61 100 million (YoY +31.0%)
Breakdown of Factors Affecting the Change	Factors Higher electricity trading prices and an increase in the number of customer contracts / Subject Increase in revenue, Factors Foreign exchange loss / Amount ¥-28 100 million, Factors Year-on-year increase in foreign exchange losses / Amount ¥-27 100 million, Factors Gains on the sale of businesses and other items / Amount ¥9 100 million, Factors Higher electricity and gas sales prices and an increase in the customer base / Subject Increase in operating profit, Factors Increase in amortisation of electricity and gas customers acquired in prior years / Subject Continued operating profit decline, Factors Increase in telecommunications content and decrease in acquisition costs / Subject Increase in operating profit, Factors Steady beverage sales and an increase in the customer base / Subject Increase in operating profit, Factors Increase in the insurance customer base and decrease in acquisition costs / Subject Increase in operating profit, Factors Strong performance in overseas financial services businesses / Subject Increase in operating profit
Key KPIs	Indicator name Stock profit / Value ¥954 100 million / Year on year against the same period last year ¥3 100 million, Indicator name EBITDA / Value ¥745 100 million / Year on year against the same period last year ¥13 100 million, Indicator name Capital Adequacy / Value ¥13,266 100 million / Year on year against the same period last year ¥25 100 million, Indicator name Equity ratio / Value 44.4 % / Year on year against the same period last year 3.4 %, Indicator name Share of operating profit (most recent 12 months) / Value ¥1,546 100 million / Year on year against the same period last year ¥17 100 million, Indicator name Earnings Yield / Value 16.6 % / Year on year against the same period last year 2 %, Indicator name Dividend yield / Value 4.2 % / Year on year against the same period last year 0 %, Indicator name Dividends received / Value ¥266 100 million / Year on year against the same period last year ¥16 100 million, Indicator name Gains and losses on disposals / Value ¥600 100 million / Year on year against the same period last year ¥127 100 million, Indicator name Number of listed equity-method affiliates / Value 43 companies / Year on year against the same period last year +3 companies from the end of June 2026
Annual Dividend	Annual dividend per share ¥815 / Breakdown 1Q 200 / 2Q 205 / 3Q 205 / 4Q 205
Payout ratio	Rate 39 % (forecast total payout ratio for the fiscal year ending March 2027) / 10-year cumulative total payout ratio 34%
Acquisition of treasury shares	Buyback limit Number of Shares 350,000 Shares (maximum) / Amount 100 Shares (maximum) / Amount unit ¥100 million (maximum) / Period 1 July 2026–30 June 2027 / Actual as of end-October 2026 Number of Shares 137,100 / Amount 52 / Amount unit ¥100 million / Progress against share acquisition limit 39.2% / Progress against amount limit 52.0%
New initiatives	Three-party joint investment in Leopalace21 and its conversion into an equity-method affiliate, Introduction of electricity and gas, telecommunications, insurance, warranty and other services at properties managed by Leopalace21, Remix Denki becoming a consolidated subsidiary in October 2026, Expansion of the customer base and recurring profits in the electricity retail business through M&A, Increase in the full-year dividend forecast to ¥815 per share

Items this document does not state (16)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterSelf-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 targetsCapital 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.

The increases in revenue and operating profit were attributable to higher electricity trading prices, an increase in the number of customer contracts, higher sales prices and an increase in the electricity and gas customer base, and an increase in telecommunications content and a decrease in acquisition costs. The decline in profit before tax was due to foreign exchange losses of ¥2.8 billion, which increased by ¥2.7 billion from the year-earlier period.

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