Slide 1: Presentation Material for FY04/2025 Full Year Financial Results
Presentation Material for FY04/2025 Full Year Financial Results June 13,2025 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 Japan
Slide 2: Contents
Contents 1. Financial Highlights 2. FY04/2025 Full-Year Performance (Consolidated) 3. Updates on Our Group Strategy 4. Initiatives in each business segment 5. Forecast of FY04/2026 Performance 6. Frequently Asked Questions and Answers © HEROZ, Inc. 2
Slide 3: Financial Highlights
01 Financial Highlights © HEROZ, Inc. 3
Slide 4: Financial Highlights
Financial Highlights ◼ For the fiscal year ending April 2025, net sales reached 5,929 million yen (+22.4% YoY), EBITDA was 793 million yen (-11.9% YoY), and operating profit was 306 million yen (-32.1% YoY). ◼ The AI/DX business saw B2B sales grow 27% annually (+68% in Q4), while B2C sales rose 8% a
Slide 5: FY04/2025 Full-Year Performance (Consolidated)
02 FY04/2025 Full-Year Performance (Consolidated) © HEROZ, Inc. 5
Slide 6: Our Key Performance Indicator
Our Key Performance Indicator Performance Indicators for ◼ EBITDA, a key performance indicator for generating cash, as an important metric, and aim to continuously enhance Business Profitability corporate value and shareholder value through the growth of EBITDA. The calculation:Operating Profit + 25
Slide 7: FY2025 Consolidated Performance Summary
FY2025 Consolidated Performance Summary HEROZ Group Consolidated Revenue EBITDA * Operating profit 5,929million yen 793million yen 306million yen [YoY＋22.4%] [YoY-11.9%] [YoY-32.1%] AI SaaS KPI AI Security ARR Recurring Revenue Ratio** Recurring Churn Rate*** 4,175million yen 65.6% 0.7% [YoY＋24.3%]
Slide 8: FY2025 Consolidated Performance Overview
FY2025 Consolidated Performance Overview ◼ Sales grew 22.4%, boosted by HEROZ's BtoC/BtoB growth and contributions from Tifana.com and VOIQ Inc.. ◼ Upfront HEROZ ASK/JOINT investments and BtoB delays led to lower-than-expected revenue. FY04/2024 FY04/2025 Initial Forecast Progress against Results Ac
Slide 9: Operating profit on an actual performance basis
Full-year cumulative: Operating profit landed at 582 million yen on an actual performance basis. ■ Operating profit for FY2025 totaled 306 million yen, landing at 582 million yen on an actual performance basis. ■ Investments in "HEROZ ASK" and "JOINT" reduced profits, but Q4 saw project growth and m
Slide 10: Trends in KPIs (Quarterly)
Trends in KPIs (Quarterly) Revenue Trends EBITDA Trends (Unit: Million Yen) (Unit: Million Yen) 1,800 350 1,583 301 1,519 300 1,500 279 281 1,403 1,423 258 256 1,296 1,217 1,209 250 1,200 1,114 1,100 1,118 201 200 170 170 166 900 150 124 600 100 300 50 0 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 3Q 4Q 1Q 2Q 3
Slide 11: Group total ARR 4,175 million yen
Our total ARR reached approximately 4.1 billion yen, achieving +24.3% YoY. ARR Trends (Unit: Million Yen) Significant growth of ARR YoY YoY+ 24.3 % Group total ARR 4,175 millon yen +24.3% 4,500 4,105 4,175 4,000 3,656 3,756 ◼ Recurring revenue includes BtoC and BtoB 3,500 3,328 3,357 subscription sa
Slide 12: AI/DX Recurring Revenue
Recurring Revenue: Significantly increased due to new SaaS and M&A effects, aiming for further expansion in the future. Recurring Revenue Trends（Quarterly） AI/DX Recurring Revenue ◼ Breakdown of recurring revenue is as follows: (Unit: Million Yen) ・ Shogi Wars-related Subscriptions 1200 ・ BtoB Conti
Slide 13: SG&A Expenses Trends (Consolidated)
SG&A Expenses Trends (Consolidated) ■ Continue to focus on cost control for SG&A expenses. ■ While continuing to invest in personnel and advertising for SaaS-related areas like HEROZ ASK and JOINT, corporate costs were controlled, leading to a 2.1% YoY decrease in organic SG&A expenses in Q4. 700 (U
Slide 14: Cost of Sales Trends (Consolidated)
Cost of Sales Trends (Consolidated) ■ Active hiring aligned with sales growth drove personnel investments, mainly in engineering and business roles, increasing COGS by 32.9% YoY. ■ Outsourcing costs were reduced YoY, maintaining ongoing cost management. (Unit: Million Yen) Excluding New Including Ne
Slide 15: Performance by Segment: FY04/2025
Performance by Segment ：FY04/2025 ■ In the AI/DX business, sales grew by 47.9%, driven by the increase in HEROZ BtoB projects and the expansion of revenue from the AI Sakura-san and VOIQ Inc.. ■ The AI Security business also maintained strong profitability, achieving an EBITDA margin of 39.1%. YoY F
Slide 16: AI/DX Services Segment
AI/DX Services Segment ◼ This segment is responsible for BtoC focused on Shogi Wars, BtoB providing AI solutions to customers, JOINT-related business of StrategIT, services in the contact center domain by A.I. Squared, Inc., and AI business of Tifana.com. ◼ The recurring revenue ratio in the AI/DX b
Slide 17: HEROZ's BtoB business: over 68% YoY growth
AI/DX Segment: HEROZ's BtoB business steadily initiated projects, achieving over 68% YoY growth. BtoB Number of BtoB Average Number of HEROZ BtoB Revenue Trends Active Projects Quarterly Personnel Quarterly ・In Q4, with projects gradually starting and large- ・Quarterly active project numbers continu
Slide 18: Performance of the BtoC Business and New Releases
AI/DX Segment Performance of the BtoC Business and New Releases ◼ The BtoC boasts overwhelming network externalities in offerings like Shogi Wars, achieving continued growth in the forth quarter. ◼ With "Sprint" mode's success, we aim to expand the shogi player base further. Quarterly match numbers
Slide 19: AI Security Segment: Performance Summary
AI Security Segment : Performance Summary ◼ This segment involves implementing HEROZ Group's AI into the security business operated by VarioSecure Inc.. ◼ With a high recurring revenue ratio of 87.9%, the business ensures stable income. FY04/2025 The recurring revenue ratio is maintained at a Actual
Slide 20: AI Security Segment: Churn Rate Trend
AI Security Segment : Churn Rate Trend ◼ Managed security maintains a stable revenue base with a low churn rate. ◼ The churn rate for Q4 FY2025 was 0.71%, consistently staying below 1%. Managed Security Services Quarterly Churn Rate Trends 1.50% 1.10% 1.02% 1.00% 0.94% 0.89% 0.85% 0.82% 0.82% 0.81%
Slide 21: Balance Sheet (As of April 2025 End)
Balance Sheet (As of April 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. FY04/2025 FY2024（Consolidated） Increment
Slide 22: Updates on Our Group Strategy
03 Updates on Our Group Strategy © HEROZ, Inc. 22
Slide 23: Changes in the AI and Generative AI Landscape
Changes in the AI and Generative AI Landscape ◼ Generative AI remains limited to skilled users, with little adoption among others. ◼ The emergence of AI agents enables task execution regardless of users' command or communication skills. Human actions for task execution and the capabilities of each s
Slide 24: AI Agents Drive a Transformative Evolution in AIX
The emergence of AI Agents drives a transformative evolution in AIX ◼ The emergence of AI agents surpasses traditional step-by-step processes, accelerating the realization of AIX. Allows natural language interaction, removing step-by-step AI Transformation processes. →Achieving LEAPFLOG ✓Organizatio
Slide 25: 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 26: The Next-Generation Collaboration Model Enabled by AI Agent 2.0
The Next-Generation Collaboration Model Enabled by AI Agent 2.0 ◼ Autonomously sets goals, recognizes the environment, and plans and executes workflows. ◼ Aiming for "with AI agents" to enhance human abilities and unlock new possibilities. Example: AI Agent 2.0 handling tasks for a sales team Autono
Slide 27: 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 28: HEROZ Group Strategic Policy (HEROZ 3.0): AI BPaaS
Restatement：HEROZ Group Strategic Policy (HEROZ 3.0): AI BPaaS ◼ Launch of HEROZ ASK and business integration with group companies led to growth in AI SaaS and recurring revenues. ◼ Through the remarkable progress of Generative AI, promoting value provision that goes beyond mere AI tools HEROZ 1.0 H
Slide 29: The AI BPaaS Model Evolving with AI Agents
The AI BPaaS Model Evolving with AI Agents ◼ HEROZ is transforming its AI BPaaS model, evolving from providing services using generative AI to adopting AI agents. ◼ Autonomously executing parts or entire tasks will expand user adoption and accelerate AI implementation across society. AI BPaaS with G
Slide 30: AI Agents Offered by the HEROZ Group
AI Agents Offered by the HEROZ Group ◼ The HEROZ Group enhances corporate efficiency and productivity by providing specialized AI agents tailored to specific business processes. AI Agents Offered by the HEROZ Group AI Front-End Operations -Customer Support- Streamlining and enhancing customer intera
Slide 31: HEROZ ASK Meeting Assist
HEROZ ASK Meeting Assist: From AI Agent 1.5 to the Next Generation ◼ HEROZ is promoting "Meeting Assist" to support the next generation of work styles. ◼ Supports meeting minutes and action item management, ensuring smooth preparation for the next meeting. Workflow from Meetings to Post-Meeting Task
Slide 32: AI Agent 1.5: AI Suitcase
AI Agent 1.5 : Next-Generation Mobility Support Technology, AI Suitcase ◼ "AI Suitcase," a mobility robot for the visually impaired, begins testing at the Osaka-Kansai Expo. ◼ Leveraging AI Agent 1.5, the Expo pilot seeks to resolve challenges for societal use. Mobility Support Utilizing AI Agent 1.
Slide 33: Initiatives in each business segment
04 Initiatives in each business segment © HEROZ, Inc. 33
Slide 34: Progress of HEROZ ASK
Progress of HEROZ ASK Developing Meeting Assist features to transform the future of work. ◼ HEROZ ASK is growing in sales and customers, with the company united in business expansion efforts. ◼ With Meeting Assist added, HEROZ aims to grow as a work-supporting AI agent and boost sales further. Conti
Slide 35: JOINT iPaaS for SaaS expanding in sales and integration counts
"JOINT iPaaS for SaaS" is expanding in both sales and integration execution counts ◼ Sales are steadily increasing, with continued growth expected into the next fiscal year. ◼ Connector execution counts are increasing, with plans to grow the business and enhance features as an Embedded iPaaS support
Slide 36: Co-developed an ESG-focused AI agent with NZAM
Co-developed an ESG-focused AI agent with NZAM ◼ Co-developed an AI agent to streamline ESG evaluations with automated data collection. ◼ The AI agent aims to create constructive dialogue time with investee companies, crucial for engagement activities. Joint development of an AI agent to streamline
Slide 37: HEROZ ASK × JOINT iPaaS for SaaS/for Biz
Launched with a vision for AI agents: "HEROZ ASK" × "JOINT iPaaS for SaaS/for Biz." ◼ HEROZ ASK, as an AI agent, supports workflow design and enables automated data integration processes. ◼ We will expand compatible services to enhance SaaS value and support IT-driven strategy realization. Strengthe
Slide 38: HEROZ selected for Growth Company Selection 2025
HEROZ selected for "Growth Company Selection 2025" in the SMB category ◼ Ranked in the top 5% of ~61,000 SMBs, HEROZ is recognized as one of Japan's fastest-growing companies. ◼ Recognized for merging AI and recruitment expertise, HEROZ will continue boosting corporate competitiveness and brand valu
Slide 39: Shogi Wars collaboration at JRA Niigata Racecourse
Shogi Wars joins the collaboration: "Traveling Shogi Wanderings in JRA Niigata Racecourse" event held! ◼ "Traveling Shogi Wanderings in JRA Niigata Racecourse" was held at Niigata Racecourse on May 24–25, 2025. ◼ A collaborative event was held where participants could experience Shogi Wars' Sprint M
Slide 40: AI Sakura-san: Recurring revenue and contracted users increasing
AI Sakura-san: Recurring revenue and cumulative contracted users are steadily increasing. ◼ AI Sakura-san is increasingly active in new fields, such as Ministry of Land, Infrastructure, Transport and Tourism transport bureaus and public housing service counters. ◼ AI Sakura-san's recurring revenue c
Slide 41: AI Security: Expanding services and strengthening sales channels
AI Security: Expanding services and strengthening sales channels to accelerate security support ◼ Strengthening security support for SMEs through the expansion of products and services. ◼ Leveraging the selection as a Platinum Partner of WithSecure, further promoting adoption and strengthening the s
Slide 42: Forecast of FY04/2026 Performance
05 Forecast of FY04/2026 Performance © HEROZ, Inc. 42
Slide 43: Forecast of FY04/2026 Performance
Forecast of FY04/2026 Performance ◼ Considering the business expansion of HEROZ ASK and JOINT, full-year sales are projected at 6.7 billion yen. ◼ Continuing investments, targeting 800 million yen in operating profit. FY04/2025 FY04/2026 Actual Forecast Increase and decrease Increase Raito （Units: J
Slide 44: Profit Contributions of Each Business from This Fiscal Year Onward
Profit Contributions of Each Business (Group & New Ventures) from This Fiscal Year Onward ◼ This year sees the monetization of FY2025 investments, with FY2026 operating profit expected to rise 500 million yen YoY to 800 million yen. FY04/2023 FY04/2024 FY04/2025 FY04/2026 Forecast（YoY） From August 2
Slide 45: Full-Year Performance Forecast: Operating Profit
Full-Year Performance Forecast: Operating Profit ◼ Although upfront investments occurred in the previous fiscal year, recovery is expected to progress from FY2026 onward, with operating profit projected to increase by approximately 500 million yen compared to FY2025. FY04/2025 FY04/2026 （Units: JPY
Slide 46: Frequently Asked Questions and Answers
06 Frequently Asked Questions and Answers © HEROZ, Inc. 46
Slide 47: Frequently Asked Questions and Answers
Frequently Asked Questions and Answers ◼ Some of the frequently asked questions and answers we receive in relation to our most recent financial results announcement. Q：What are the outlook and key growth points for HEROZ in the next fiscal year (FY04/2026)? A：HEROZ positioned FY2025 as an investment
Slide 48: 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