Financial Presentation Materials for Q1 FY2026 Ending November

Performance Overview

In Q1 FY2026 ending November, net sales amounted to 7,615 million yen (YoY -8.6%), operating income was 400 million yen (YoY -49.8%), ordinary income was 397 million yen (YoY -50.6%), and quarterly net income was 257 million yen (YoY -51.3%). The estimated number of insurance contract prospective customers had significantly declined in Q4 of the previous fiscal year due to suspension of distribution from major partners following administrative sanctions, but recovered to approximately 30,000 in Q1, suggesting potential improvement in performance from Q2 onward. While selling, general and administrative expenses increased due to the promotion of operational improvement plans, cost-cutting measures such as reductions in advertising and communication expenses are also underway.

Business Model and Outlook

The company sells life and non-life insurance mainly targeting customers in their 30s and 40s through partner companies, and offers free financial planning consultations nationwide. With 2,265 sales staff and 190 locations nationwide, it attracts a large customer base and the number of contracts held has been increasing annually. The estimated insurance contract prospective customers recovered to 30,652 in Q1, and performance recovery is expected through the second half of the fiscal year. Challenges remain such as a decrease in sales staff resignations and a significant decline in contract transfer agreements, but the company is working to strengthen its foundation while improving the quality of its earnings structure.