Q1 FY2026 Financial Summary Q&A

Overview of Performance

In Q1 FY2026, performance deteriorated with profits halving due to a significant decline in prospective insurance contract customers caused by administrative sanctions in Q4 of the previous fiscal year. Expenses for personnel reinforcement and system upgrades have also been incurred accompanying the promotion of the business improvement plan. On the other hand, prospective insurance contract customers showed a recovery trend on a quarterly basis, and from Q2 onward, revenue contributions from new client Yamada Denki are expected. The number of cases allocated to sales staff has also improved, anticipating profit recovery.

Outlook and Challenges

Achieving the full-year plan is not easy, but it is considered fully possible with the recovery of prospective insurance contract customers and expansion of the Yamada Denki project. Although there is a risk of a decline in customer numbers again, sales measures will be steadily implemented with responses tailored to the situation. The contract assignment business is expected to turn profitable and aims to expand as a pillar alongside the affiliated company business. The dividend policy maintains a payout ratio of 45%, balancing shareholder returns and growth investment.