Heroz, Inc. · TSE:4382
Heroz — Q1 FY04/2026 Earnings Presentation
33 slides from Heroz's earnings presentation, Sep 11, 2025
Slide 1: Presentation Material for FY04/2026 Q1 Financial Results
Presentation Material for FY04/2026 Q1 Financial Results September 11,2025 HEROZ, Inc. ｜4382｜ Notice This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanes
Slide 2: Financial Highlights
01 Financial Highlights ©HEROZ, Inc. 2
Slide 3: Financial Highlights: Sales, EBITDA, and operating profit all increased year over year
Financial Highlights：Sales, EBITDA, and operating profit all increased year over year, marking a solid start. ◼ Revenue ¥1,514 million (+7.9% YoY), EBITDA ¥228 million (+37.3% YoY), and operating profit ¥117 million (+58.3% YoY), all increased. Performance Summary ◼ FY 04/2025 is an upfront investme
Slide 4: FY2026 Q1 Consolidated Performance Summary: Key SaaS metrics trending well
FY2026 Q1 Consolidated Performance Summary：Key SaaS metrics are also trending well. HEROZ Group Consolidated Revenue EBITDA * Operating profit 1,514 million yen 228 million yen 117million yen [YoY＋7.9%] [YoY+37.3%] [YoY+58.3%] AI SaaS KPI ARR Recurring Revenue Ratio ** Recurring Churn Rate*** AI Sec
Slide 5: Overview by business segment
Overview by business segment: BtoB is expected to be second-half weighted this fiscal year. *From 1Q FY ending April 2026, the AI/DX business will be renamed the AIX business. Revenue Revenue growth rate Segment Overview of the current fiscal year （YoY） progress ・Record quarterly revenue; targeting
Slide 6: Performance Overview (May 2024-July 2025)
Performance Overview (May 2024-July 2025) ❶Revenue was ¥1,514 million（+7.9% YoY）❷operating profit ¥117 million（+58.3% YoY） ❸EBITDA ¥228 million （+37.3% YoY）, showing significant growth. FY04/2025 FY04/2026 Initial Forecast Progress against Q1 Results Q1 Actual YoY (Announced on （Consolidated ） Initi
Slide 7: Key Performance KPIs (by Quarter) Net Sales, EBITDA
Key Performance KPIs (by Quarter) Net Sales, EBITDA ~¥65M shifted to 2Q, landing near 4Q levels. EBITDA, adjusted for timing, slightly below 4Q levels. Net Sales EBITDA (Units: JPY Millions) (Units: JPY Millions) Impact of 1,800 350 timing shift +65M Impact of 1,583 1,519 301 timing shift 300 1,500
Slide 8: Recurring Revenue & ARR: Steady growth driven by new SaaS and M&A effects
Recurring Revenue & ARR: Steady growth driven by new SaaS and M&A effects. Recurring Revenue Trends（Quarterly） ARR Trends *From 1Q FY ending April 2026, the AI/DX business will be renamed AIX business. (Units: JPY Millions) (Units: JPY Millions) ■AI Security ■AIX Business Business 4,500 4,175 4,227
Slide 9: Segment Revenue & Profit Trends
Segment Revenue & Profit Trends *From 1Q FY ending April 2026, the AI/DX business will be renamed AIX business. AIX Business * AI Security Business ・HEROZ BtoB revenue saw ~¥65M timing shift but ・Price revisions drove YoY growth, achieving record- grew 10.8% YoY. Impact of high quarterly results. 92
Slide 10: Performance of the BtoC: Recorded highest-ever quarterly revenue
AIX Segment Performance of the BtoC：Recorded highest-ever quarterly revenue. BtoC Revenue Trends Quarterly match numbers ・Achieved 0.5% YoY growth ・"Sprint" drove 30M+ games for two straight quarters, ・Recorded highest-ever quarterly revenue hitting a record high. Quarterly New Match Count YoY +0.5%
Slide 11: Performance of the BtoB: 17% YoY growth; 2Q plan improvement expected
AIX Segment Performance of the BtoB：17% YoY growth; 2Q plan improvement expected. BtoB Number of BtoB Revenue Trends Active Projects Quarterly ・Despite a ~¥65M timing shift, 1Q achieved +17% YoY ・Despite delays from timing shifts, expected to growth. surpass last fiscal year's second-half levels. ・2
Slide 12: Cost Breakdown: Development hiring raised cost of sales YoY
Cost Breakdown: Development hiring raised cost of sales YoY. ■ Development hiring progressed smoothly, raising cost of sales by 9.7% YoY and cost ratio by ~2 points. ■ Outsourcing costs are also trending downward. Organic Basis Cost-to-Revenue Ratio 53.8% 55.6% Cost of Sales YoY (On an organic basis
Slide 13: SG&A (Consolidated): 1Q down YoY, with a lower cost ratio
SG&A (Consolidated): 1Q down YoY, with a lower cost ratio, showing cost cuts. ■ Down 7.5% YoY; staffing rose, recruitment costs normalized, and ads were selective. ■ Cost-to-revenue ratio fell ~5 points; proper cost control will continue. Organic Basis Cost-to-Revenue Ratio 40.9% 35.7% SG&A YoY YoY
Slide 14: SaaS Progress: Investment results gradually emerging this fiscal year
SaaS Progress: Investment results gradually emerging this fiscal year. HEROZ ASK Revenue Trends JOINT Revenue Trends ⚫ 1Q revenue grew +77.6% QoQ, with total contracted ⚫ JOINT's revenue steadily increased in 1Q, growing +25.9% clients reaching ~300 as of the end of August. QoQ. ⚫ Targeting SMBs, pr
Slide 15: Churn Rate Trend: HEROZ ASK continues to decline to low levels
Churn Rate Trend: HEROZ ASK continues to decline to low levels. ◼ AI Security's 1Q FY2026 churn rate was 0.71%, staying below 1%. ◼ HEROZ ASK's churn rate decreased to 1.11%, showing continued improvement. ▍Quarterly Churn Rate Trend Security BPO Service: Quarterly Churn Rate Trend HEROZ ASK User ID
Slide 16: HEROZ Business Overview
02 HEROZ Business Overview ©HEROZ, Inc. 16
Slide 17: History of HEROZ
History of HEROZ ⚫ Sales Trends and Main History （ JPY Millions ） HEROZ was founded with the concept of “Surprise to the Heart", aiming to create services that will surprise the world. Newly added companies to 6,700 our group We believe that everyone has unique abilities, and through the creation of
Slide 18: HEROZ's Vision for the AI Revolution in the Generative AI Era
HEROZ's Vision for the "AI Revolution" in the Generative AI Era HEROZ's vision is to "Drive an AI revolution and create the future." Value Creation Through AI We aim to build a society where generative AI automates and supports daily tasks, allowing people to focus on self-fulfillment. AI is a partn
Slide 19: The AI BPaaS Model Evolving with AI Agents
The AI BPaaS Model Evolving with AI Agents ◼ Refreshing the model from AI BPaaS to AI agents. ◼ Autonomously execute tasks end-to-end or in parts, accelerating adoption and deployment. AI BPaaS with Generative AI AI BPaaS with AI Agents Examples of autonomously executed work Providing automatically
Slide 20: The Next-Generation AI Agent Aimed for by HEROZ
The Next-Generation AI Agent Aimed for by HEROZ ◼ HEROZ advances AI agents from instruction-based to fully autonomous, redefining task execution. ◼ A next-gen AI agent that structures problems and designs workflows to solve business challenges. AI Agent Evolution Direction 2022 Present 20XX 2025 Ful
Slide 21: Market Structure Changes Brought by AI Agents
Market Structure Changes Brought by AI Agents ◼ Targeting the rapidly transforming AI systems market driven by the emergence of AI agents, HEROZ aims for further growth. AI Systems Market: Market Size Trends Market Size in 4.2 trillion yen 2029 Key Drivers of Growth in the AI Systems Market ・The Spr
Slide 22: Initiatives in each business segment
03 Initiatives in each business segment ©HEROZ, Inc. 22
Slide 23: Hosting various events to maximize the shogi player population
Hosting various events to maximize the shogi player population. ◼ Hosted "Tanpopo Cup" with Vtubers and initiatives for all skill levels. ◼ Continue implementing initiatives to maximize the shogi population. Further expanding to maximize the shogi population ⚫ Teamed up with FESA (European Shogi Fed
Slide 24: Propally launched its new Free AI Sale Estimation service
Propally launched its new "Free AI Sale Estimation" service utilizing HEROZ's "Real Estate Price Estimation AI." ◼ AI estimation based on past transaction prices and public data enhances transparency in real estate transactions. ◼ Automatically provides an estimated sale price in as little as 60 sec
Slide 25: HEROZ ASK Feature Updates: OCR, Image Generation, Code Interpreter
HEROZ ASK Feature Updates: OCR, Image Generation, Code Interpreter. ◼ HEROZ ASK now includes OCR, image generation, and code interpreter to further boost productivity. ◼ A single platform enables fast, accurate document creation and data processing. Expanding features to drive further growth. ⚫ Adde
Slide 26: AI Sakura-san: Contracted users steadily growing
AI Sakura-san: Contracted users steadily growing. ◼ Expanding use cases in internal inquiries and city halls. ◼ AI Sakura-san's recurring revenue grows with new acquisitions, expecting further expansion. Continues to perform as AI meeting AI Sakura-san Revenue Trends national standards ⚫ Registered
Slide 27: Frequently Asked Questions and Answers
04 Frequently Asked Questions and Answers ©HEROZ, Inc. 27
Slide 28: Frequently Asked Questions and Answers
Frequently Asked Questions and Answers ◼ FAQs from our latest financial results announcement. Q：Outlook for HEROZ BtoB in FY 04/2026? A：In BtoB, while 4Q slightly underperformed planned figures due to timing shifts, we are targeting approximately 20% annual growth driven by increased projects and ca
Slide 29: Appendix
05 Appendix ©HEROZ, Inc. 29
Slide 30: SG&A Breakdown Trend (Consolidated)
SG&A Breakdown Trend (Consolidated) ■ Personnel costs rose YoY from investments in ASK and JOINT expansion. ■ Recruitment and training costs have normalized; cost control measures continue. (Units: JPY Millions) Includes Tifana from FY04/2025 1Q and VOIQ from FY04/2025 2Q 135 157 155 138 40 142 144
Slide 31: Cost of Sales Breakdown Trend (Consolidated)
Cost of Sales Breakdown Trend (Consolidated) ■ To drive growth, we will invest in personnel, raising labor costs group-wide. ■ Outsourcing costs are declining, absorbing VOIQ-related expenses. (Units: JPY Millions) 24 0 0 Includes Tifana from FY04/2025 1Q and VOIQ from FY04/2025 2Q 0 13 0 124 123 10
Slide 32: Balance Sheet (As of July 2025 End)
Balance Sheet (As of July 2025 End) ◼ Current cash and deposits will be gradually invested to achieve our growth strategy. ◼ Due to M&A activities, there is a goodwill balance of 1.9 billion yen in intangible fixed assets, which will be amortized over time. ◼ For operations via AI-driven liquidity p
Slide 33: Notes
Notes ◼ The forward-looking statements contained in this material are based on information currently available to the Company, but are not guarantees of future performance and are subject to various risks and uncertainties. Actual results may differ from the forward-looking statements contained or d