Heroz, Inc. · TSE:4382
Heroz — Q1 FY04/2027 Earnings Presentation
45 slides from Heroz's earnings presentation, Sep 14, 2026
Slide 1: FY04/2027 Q1 Financial Results
Presentation Material for FY04/2027 Q1 Financial Results September 11, 2026 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 Japane
Slide 2: Financial Highlights
01 Financial Highlights ©HEROZ, Inc. 2
Slide 3: FY27 Q1 Financial Highlights
* Operating profit before goodwill amortization is disclosed as a key accounting metric from Q1. FY27 Q1 Financial Highlights Its FY04/2027 full-year forecast is newly disclosed in this release. ◼ Net sales ¥1,643mn (+8.5% YoY; excluding the impact of the deconsolidation of StrategIT, the underlying
Slide 4: Overview by Business Segment: HEROZ BtoB surged +101.3% YoY
Overview by Business Segment: HEROZ BtoB surged +101.3% YoY Revenue Revenue Segment Overview of the current fiscal year growth progress (YoY) HEROZ HEROZ BtoB: Higher utilization via Business Embedded Model BtoB (BEM) drove +101.3% YoY growth (→P.12) +15.7% HEROZ ASK: Q1 revenue +25.9% QoQ; ARR ¥230
Slide 5: FY27 Q1 Consolidated Results
02 FY27 Q1 Consolidated Results ©HEROZ, Inc. 5
Slide 6: Q1 Consolidated Results Summary
Q1 Consolidated Results Summary: Key metrics also trending well HEROZ Group (Consolidated) Operating profit before goodwill Net sales amortization* Operating profit ¥1,643 mn ¥223mn ¥180mn [+8.5% YoY] [+40.8% YoY] [+52.8% YoY] KPI ARR (Annual Recurring Revenue) Recurring revenue ratio** Churn rate**
Slide 7: FY04/2027 Q1 Consolidated Results
*1 Operating profit before goodwill amortization is disclosed as a key financial metric from Q1. FY04/2027 Q1 Consolidated Results Its FY04/2027 full-year forecast is newly disclosed in this release. ❶Net sales ¥1,643mn (+8.5% YoY)❷Operating profit before goodwill amortization ¥223mn (+40.8% YoY) ❸O
Slide 8: Key KPI Trends: Net Sales and EBITDA
Key KPI Trends: Net Sales and EBITDA Q1 net sales ¥1,643mn +14.5% YoY excluding StrategIT EBITDA ¥287mn, a Q1 record high Net Sales Trends EBITDA Trends (Units: JPY Millions) (Units: JPY Millions) *Dashed line for FY04/2026 Q1 = StrategIT revenue. YoY Excludes StrategIT's ¥79mn from Q1 FY26 (¥1,514m
Slide 9: Recurring Revenue & ARR: Steady Revenue Growth
Recurring Revenue & ARR: Steady Revenue Growth Recurring Revenue Trends (Quarterly) ARR Trends (Units: JPY Millions) (Units: JPY Millions) ■AI Security Business ■AIX Business YoY 4,969 +14.8% 4,569 4,633 4,395 4,105 4,175 4,227 507 510 528 3,656 3,756 YoY 460 460 457 3,328 3,357 +17.6% 343 367 377 2
Slide 10: Segment Revenue and Profit Trends
Segment Revenue and Profit Trends AIX Business AI Security Business ・+28.2% YoY excluding StrategIT ・Revenue +0.3% YoY (Units: JPY Millions) *Dashed line for FY04/2026 Q1 = StrategIT revenue. Excludes StrategIT's ¥79mn from Q1 FY26 (¥810mn). YoY YoY Including StrategIT: +15.7% YoY. +28.2% +0.3% (Uni
Slide 11: BtoC: Cumulative matches approaching 1.2bn, growing steadily
AIX Business BtoC: Cumulative matches approaching 1.2bn, growing steadily Remains the world's largest shogi match platform ・Q1 matches just under 30mn; cumulative matches approaching 1.2bn, with steady growth Quarterly New Match Count Cumulative Match Count December 2025: Exceeded 1.1 billion matche
Slide 12: BtoB: Q1 revenue up sharply, +101.3% YoY
AIX Business BtoB: Q1 revenue up sharply, +101.3% YoY BtoB Revenue Trends BtoB Number of Active Projects ・High utilization since Q1; +101.3% YoY ・Q1 project count +26.8% YoY ・Cumulative Q2 also expected +64.8% YoY on higher ・Growing demand to transform business foundations is expanding utilization c
Slide 13: Cost of Sales Breakdown
Cost of Sales Breakdown: Cost Ratio Improved 4.1pt as Revenue Outpaced Costs ■ Cost of sales +5.3% YoY on an organic basis; labor costs flat at ¥252mn ■ Revenue growth outpaced cost increases on higher AIX BtoB utilization; the Q1 cost of sales ratio improved 4.1pt YoY to 50.1% YoY +5.3% (Units: JPY
Slide 14: SG&A Breakdown
SG&A Breakdown: Personnel Expenses Flat; Increase Reflects Shift to External Resources ■ Excluding M&A costs, personnel expenses and goodwill amortization were largely flat on an organic basis; the increase came mainly from other expenses (outsourcing) as external resources covered retirements ■ The
Slide 15: HEROZ ASK Progress
HEROZ ASK Progress: Revenue Grew +25.9% QoQ HEROZ ASK Revenue Trends Continuous Updates to Drive Adoption ⚫ Q1 revenue +25.9% QoQ; ARR ¥230mn as of end-July 1 Automatic masking of personal ⚫ Approx. 470 cumulative contracted clients as of end-July information (PII) Overview Meets security and compli
Slide 16: Churn Rate Trends
Churn Rate Trends: HEROZ ASK Also Declining to Low Levels ◼ AI Security Q1 FY02/2027 churn rate 0.84%, stably below 1% ◼ HEROZ ASK Q1 churn rate 0.96% ▍Quarterly Churn Rate Trend AI Security: Quarterly Churn Rate Trend HEROZ ASK User IDs: Quarterly Churn Rate Trend 3.65% 0.84% 2.62% 0.82% 0.81% 0.80
Slide 17: HEROZ Business Overview
03 HEROZ Business Overview ©HEROZ, Inc. 17
Slide 18: History of HEROZ
History of HEROZ ⚫ Net Sales Trends and Key Milestones （ JPY Millions ） HEROZ was founded with the concept of “Surprise to the Heart,” aiming to create Newly added 6,800 services that surprise the world. Group companies 6,424 We believe everyone has unique abilities, and through creating services we
Slide 19: HEROZ's View of the AI Revolution in the Generative AI Era
HEROZ's View of the “AI Revolution” in the Generative AI Era HEROZ's vision is to “drive an AI revolution and create the future.” Delivering Value Through AI We aim to embed AI into everyday life so everyone can focus on self-fulfillment. AI is a partner for co-creating opportunities and value; we w
Slide 20: The AI BPaaS Model Evolving with AI Agents
The AI BPaaS Model Evolving with AI Agents ◼ Shifting from generative AI-based work (AI BPaaS) to AI agents ◼ AKM Consulting (BAKUNAGE) extends AI agents into back-office operations Evolution from HEROZ 1.0 to 3.0 AI BPaaS with AI Agents HEROZ 1.0 Solving individual issues with conventional AI Agent
Slide 21: HEROZ ASK: AI Utilization Platform
HEROZ ASK: AI Utilization Platform (Roadmap) ◼ AKM (AI BPO) joined in May 2026 and Extra (AI training) in August 2026, completing an end-to-end “Learn → Use → Delegate” structure on HEROZ ASK ◼ Training widens the entry point and BPO accumulates know-how, lifting ASK's client count and unit price Tw
Slide 22: Group Business Structure (Business Segments)
*1 MAU: Monthly Active Users Group Business Structure (Business Segments) *2 MPU: Monthly Paid Users *3 ARPPU: Average Revenue Per Paid User ◼ We operate two businesses: the AIX business and the AI Security business ◼ AKM Consulting joined the Group in May 2026 and Extra (AI training) in August 2026
Slide 23: HEROZ by the Numbers
HEROZ by the Numbers *Shogi Wars total matches World Computer Shogi Championship Cumulative client growth (%) *Titles won HEROZ BtoB Business 1.1bn+ 6 FY04/2026 + 30% Match Sprint mode drove an increase in matches; “Hyousui,” by our engineers, won the 36th Client +34% (FY04/2024), +32% (FY04/2025);
Slide 24: Topics by Business Segment
04 Topics by Business Segment ©HEROZ, Inc. 24
Slide 25: Advancing Initiatives to Maximize the Shogi Population
Advancing Initiatives to Maximize the Shogi Population ◼ The new “Tsume Bato” match mode was opened to free members, expanding eligibility to all members ◼ Feature updates and the Shogi Wars JT Cup offered initiatives for all skill levels Proving AI capabilities while growing the shogi population ⚫
Slide 26: AI Agent Development Contest for the Pokémon Trading Card Game
AI Agent Development Contest for the Pokémon Trading Card Game ◼ Co-hosted an AI agent development contest with The Pokémon Company and Matsuo Institute on “Kaggle” ◼ Showcasing our AI capabilities to developers and researchers worldwide through an “imperfect information game” Overview of the AI Bat
Slide 27: AI Sakura-san: Expanding into New Domains
AI Sakura-san: Expanding into New Domains, +9.2% Growth ◼ Adoption is expanding into new fields: tourist information, elderly monitoring and government counters ◼ Revenue +9.2% YoY; some project impact persists through Q2, with recovery from H2 Growing use cases in new fields AI Sakura-san Revenue T
Slide 28: Frequently Asked Questions
05 Frequently Asked Questions ©HEROZ, Inc. 28
Slide 29: Frequently Asked Questions
Frequently Asked Questions ◼ Answers to selected questions frequently received at our recent earnings announcements Q: How will the BtoB (AI solution) business achieve growth and improve profitability going forward? A: We are shifting from taking on highly difficult projects as an external contracto
Slide 30: Appendix
06 Appendix ©HEROZ, Inc. 30
Slide 31: Two Strategic Axes Driving FY27: Becoming the AI BPaaS Front-Runner
Two Strategic Axes Driving FY27: Becoming the AI BPaaS Front -Runner ◼ HEROZ ASK redefines the up-to-¥12.8-trillion outsourcing market with Professionals × AI. ◼ Following its full subsidiary conversion, VarioSecure scales AI Security via a 24/365 on-site model × AI. ① Full-scale rollout of HEROZ AS
Slide 32: HEROZ ASK Cowork: Turning the ¥12.8-Trillion Market into 'Delegate'
①HEROZ ASK Cowork: Turning the ¥12.8-Trillion Market into 'Delegate' via AI × Professionals ◼ Transforming Japan's ¥12.8-trillion outsourcing market into 'delegate-to-AI'. ◼ Capturing with Cowork the 80% of the market that neither ASK nor BPO can reach (building the foundation for the Autonomous Ent
Slide 33: HEROZ ASK Cowork: Unifying Front and Back Office on a Common AI Platform
①HEROZ ASK Cowork: Unifying Front and Back Office on a Common AI Platform ◼ Integrating customer-facing and back-office functions on HEROZ ASK; rolling out AI Cowork company-wide. ◼ Real operational data such as BAKUNAGE directly improves AI accuracy—a unique competitive advantage. Three-layer struc
Slide 34: AI Security Cowork: Years of Operations × AI to Counter Threats
②AI Security Cowork: 25 Years of Operations × AI to Counter Threats ◼ With autonomous AI attacks and no dedicated staff, human-only monitoring is structurally reaching its limits. ◼ VarioSecure's 25 years of operations × AI accompany customers as an always-on team. Market environment — threats and t
Slide 35: AI Security Cowork: Fully Delegate Mid-Market/SME Security to AI × Professionals
②AI Security Cowork: Fully Delegate Mid-Market/SME Security to AI × Professionals ◼ From intrusion prevention to impact minimization and day-to-day operations, AI and professionals deliver as one. ◼ VarioSecure's operations × HEROZ's AI implementation enable fully delegable security. Three Cowork do
Slide 36: SG&A Breakdown Trend (Consolidated)
SG&A Breakdown Trend (Consolidated) ■ After the headcount increase from sales and marketing hires in the previous fiscal year, fixed costs were reduced through measures such as a review of group companies' officer structures. ■ Personnel expenses rose QoQ, mainly reflecting reclassifications between
Slide 37: Cost of Sales Breakdown Trend (Consolidated)
Cost of Sales Breakdown Trend (Consolidated) ■ To drive growth, we will invest actively in people and raise labor costs in cost of sales across the Group ■ The Q1 decline in labor costs mainly reflects a shift between expense items as external resources (outsourcing, etc.) covered headcount reductio
Slide 38: Balance Sheet (As of End-July 2026)
Balance Sheet (As of End-July 2026) ◼ Cash and deposits on hand continue to be allocated to investments for our medium- to long-term growth strategy ◼ Following M&A, intangible assets include approx. ¥1.8bn of goodwill, which will be amortized going forward FY04/2026 year-end FY04/2027 Q1 Change (Co
Slide 39: Vario Secure: Company Overview
Vario Secure: Company Overview ▶ Company Vario Secure Inc. ▶ Founded June 21, 2001 M i s s i on ▶ Representati To enable every internet-using company to do Tomohiro Takahashi, President & CEO ve business safely and comfortably, we deliver our ▶ Capital ¥757.1 million services wholeheartedly in Japan
Slide 40: A.I. Squared: Company Overview
A.I. Squared: Company Overview Company A.I. Squared, Inc. Founded December 2015 Capital ¥90 million Employees 30 Provides AI solutions for the contact-center domain—centered on PMO Tamachi 7F, 5-31-17 Shiba, Minato- natural language processing—including automated response and HQ location ku, Tokyo a
Slide 41: Tifana.com: Company Overview
Tifana.com: Company Overview Company Tifana.com, Inc. Representatives Hiroya Mori, President & CEO Ryo Fujii, Chairman Founded 1993 [Tokyo HQ] Murata Bldg., 2-22-7 Ohashi, Meguro-ku, Tokyo [Osaka Office] Aqua Dojima Fontana, 1-4-4 Dojimahama, Kita-ku, Osaka Certifications & patents *Tokyo HQ only IS
Slide 42: VOIQ: Company Overview
VOIQ: Company Overview Company VOIQ Inc. Established July 2024 Capital ¥500 thousand Employees 10 (excluding contractors) 5-31-17 Shiba, Minato-ku, Tokyo HQ location PMO Tamachi AI-powered outbound calling Business Inside / field sales support President & CEO Megumi Takada Director Takahiro Hayashi
Slide 43: AKM Consulting: Company Overview
AKM Consulting: Company Overview Company AKM Consulting, Inc. Cloud back-office setup support / IPO Business consulting / recruitment support President & CEO Kazumichi Nakayama Hiroya Mori Director Naoya Takahashi Yuya Nakahara Web https://akm-group.co.jp/ [Three features of BAKUNAGE] 1.All-in-one:
Slide 44: Extra: Company Overview
Extra: Company Overview Company Extra, Inc. Generative AI consulting / corporate generative AI training / generative AI training Business franchise / generative AI curriculum OEM supply Representative Takuya Kadomoto Director [Three Strengths of Extra’s Generative AI Education Business] Hiroya Mori
Slide 45: 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