Heroz, Inc. · TSE:4382
Heroz — Q3 FY04/2026 Earnings Presentation
38 slides from Heroz's earnings presentation, Mar 13, 2026
Slide 1: Presentation Material for FY04/2026 Q3 Financial Results
Presentation Material for FY04/2026 Q3 Financial Results March 13,2026 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 Japanese do
Slide 2: Financial Highlights
01 Financial Highlights ©HEROZ, Inc. 2
Slide 3: Financial Highlights: YoY revenue and profit growth; on track for full-year targets
Financial Highlights：YoY revenue and profit growth achieved; on track for full-year targets, leveraging Q4-weighted structure. ◼ Revenue ¥4,687 million (+7.8% YoY), EBITDA ¥719 million (+46.1% YoY), and operating profit ¥358 million (+126.4% YoY), all increased. HEROZ ASK: revenue +37.9% QoQ JOINT l
Slide 4: FY2026 Q3 Consolidated Performance Summary: Key metrics trending well
FY2026 Q3 Consolidated Performance Summary：Key metrics are also trending well. HEROZ Group Consolidated Revenue EBITDA * Operating profit 4,687 million yen 719 million yen 358 million yen [YoY＋7.8%] [YoY+46.1%] [YoY+126.4%] KPI ARR Recurring Revenue Ratio ** Recurring Churn Rate*** AI Security HEROZ
Slide 5: Segment Overview: Company-wide YoY Revenue Growth
Segment Overview: Company-wide YoY Revenue Growth; BtoB to Achieve Full-Year Targets with Q4-Weighted Structure *The AI/DX Business was renamed the AIX Business from Q1 FY2026. Revenue Revenue growth rate Segment Overview of the current fiscal year （YoY） progress ・Positive YoY growth for the third s
Slide 6: Performance Overview (May 2025-January 2026)
Performance Overview (May 2025-January 2026) ❶Revenue was ¥4,687 million（+7.8% YoY）❷operating profit ¥358 million（+126.4% YoY） ❸EBITDA ¥719 million （+46.1% YoY）, showing significant growth. FY04/2025 FY04/2026 Initial Forecast Progress against Q2 Results Q2 Actual YoY (Announced on （Consolidated ） I
Slide 7: Key Performance KPIs (by Quarter) Net Sales, EBITDA
Key Performance KPIs (by Quarter) Net Sales, EBITDA Q3 revenue of ¥1,588 million, Q3 EBITDA of ¥227 million, up +4.5% YoY, delivering steady growth. up +12.8% YoY, reflecting continued improvement in profitability. Net Sales EBITDA (Units: JPY Millions) (Units: JPY Millions) 1,583 1,5841,588 1,520 1
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 *The AI/DX Business was renamed the AIX Business from Q1 FY2026. (Units: JPY Millions) (Units: JPY Millions) ■AI Security ■AIX 4,569 4,395 Business Business 4,227 4,105 4,175 3,6
Slide 9: Segment Revenue & Profit Trends
Segment Revenue & Profit Trends *The AI/DX Business was renamed the AIX Business from Q1 FY2026. AIX Business * AI Security Business ・Revenue +2.5% YoY. ・Revenue +7.0% YoY. ・Segment profit declined YoY, primarily due to upfront ・Price revision effects contributing throughout the fiscal hiring invest
Slide 10: BtoC Business: Q3 Revenue Exceeds Prior Year, Trending Steadily
AIX Segment BtoC Business: Q3 Revenue Exceeds Prior Year, Trending Steadily BtoC Revenue Trends Games played continue to grow steadily ・Achieved 2.5% YoY growth ・Games played topped 30 million for the fourth straight ・Premium user count remains at record-high levels. quarter; cumulative games played
Slide 11: BtoB: 3Q Cumulative Revenue +12.1% YoY; Q4-Weighted Structure Continues
AIX Segment BtoB: 3Q Cumulative Revenue +12.1% YoY; Q4-Weighted Structure Continues BtoB Number of BtoB Revenue Trends Active Projects Quarterly ・3Q cumulative revenue +12.1% ・Number of deals in Q3 up +19.4% YoY, tracking ・YoY; full-year growth of +15.6% expected, reflecting above the prior year's s
Slide 12: Cost breakdown (consolidated): Cost of sales +7.8% YoY
Cost breakdown (consolidated): Cost of sales +7.8% YoY on growth investments; cost of sales ratio increase limited to +1.6pt ■ Engineer hiring on track; cost of sales +7.8% YoY, with cost of sales ratio up approx. +1.6pt YoY. ■ Outsourcing costs are also trending downward. YoY +7.8% Cost of Sales Yo
Slide 13: SG&A breakdown (consolidated): Q3 Actuals Show YoY Decline
SG&A breakdown (consolidated): Q3 Actuals Show YoY Decline; Cost Optimization Progressing. ■ −4.2% YoY, driven by selective allocation of resources toward higher ROI initiatives. ■ SG&A-to-revenue ratio improved by approx. 4 percentage points; disciplined cost control measures to be maintained going
Slide 14: Business Progress: Investment Returns Materializing, Accelerating into Q4
Business Progress: Investment Returns Materializing, Accelerating into Q4 HEROZ ASK Revenue Trends JOINT license + initial sales Trends ⚫ Q3 revenue grew +37.9% QoQ; ARR reached ¥130 ⚫ JOINT revenue increased steadily through Q3, up +53.3% million in January. QoQ. ⚫ Cumulative contracted customers r
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 3Q FY2026 churn rate was 0.65%, staying below 1%. ◼ HEROZ ASK's churn rate decreased to 0.40%, 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 our group 6,400 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 AI is embedded in everyday life, allowing everyone to focus on self- fulfillment. AI is a partner in co-creat
Slide 19: Group Business Structure (Business Segments)
Group Business Structure (Business Segments) ◼ Two business segments: AIX Business and AI Security Business ◼ VOIQ, which joined the group in July 2024, is classified under the AIX Business AIX AI Security Segment BtoC BtoB BtoB Business Leveraging AI Drives real-world AI adoption via SaaS implement
Slide 20: 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 21: 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 22: 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 23: HEROZ at a Glance
HEROZ at a Glance *Total Games Played on World Computer Shogi Cumulative client growth Shogi Wars – Championship* - Titles (BtoB business) over 1.1billion games 5 times + 32% YoY(FY Apr 2025) Game Sprint Mode drove growth in game volume. In 2023, our ‘dlshogi with HEROZ’ engine, +40% in FY Apr 2023
Slide 24: Initiatives in each business segment
03 Initiatives in each business segment ©HEROZ, Inc. 24
Slide 25: Expanding the Shogi Audience — Creating New Spectator Experiences through AI × Media Collaboration
Expanding the Shogi Audience — Creating New Spectator Experiences through AI × Media Collaboration ◼ Launched "Kishin Chat," a new service powered by a shogi LLM that provides natural language commentary on top professional matches. ◼ Partnered with The Asahi Shimbun to unveil the service at a debut
Slide 26: Advancing Initiatives to Expand the Shogi Audience
Advancing Initiatives to Expand the Shogi Audience ◼ Executing diverse initiatives — from large-scale tournaments to collaboration events — catering to players of all levels. ◼ Premium user count reached an all-time high; audience expansion efforts continue. Driving Initiatives to Maximize the Shogi
Slide 27: Business and Capital Alliance with JPYC: Stablecoin × AI
Business and Capital Alliance with JPYC Entering the New Domain of Stablecoin × AI ◼ Entered into a business and capital alliance with JPYC Inc. ◼ Integrating HEROZ's AI implementation expertise into JPYC's stablecoin business to accelerate operational advancement and new service development Busines
Slide 28: HEROZ ASK update: Driving Retention, Company-wide Adoption, and LTV Growth
HEROZ ASK update: Building a Sustainable Environment to Drive Retention, Company-wide Adoption, and LTV Growth ◼ Continued updates underway, including Box integration and training services, to drive adoption and retention ◼ Pricing plan revamped from per-user billing to unlimited model, promoting co
Slide 29: AI Sakura-san: Cumulative Contracted Users Steadily Growing
AI Sakura-san: Cumulative Contracted Users Steadily Growing ◼ Expanding use cases across new sectors, including fitness clubs, municipal offices, and clinic reception services ◼ Both recurring revenue and new customer acquisition trending favorably, with further growth expected Growing Use Cases Acr
Slide 30: Frequently Asked Questions and Answers
04 Frequently Asked Questions and Answers ©HEROZ, Inc. 30
Slide 31: Frequently Asked Questions and Answers
Frequently Asked Questions and Answers ◼ FAQs from our latest financial results announcement. Q：What is the progress of the HEROZ ASK business? A：We are on track with MRR expansion, price increases under the new pricing structure, and achieving monthly profitability within this fiscal year. KPI Tren
Slide 32: Appendix
05 Appendix ©HEROZ, Inc. 32
Slide 33: [For Reference] Revision to FY04/2026 Full-Year Forecast
[For Reference] Revision to FY04/2026 Full-Year Forecast ■ Following VarioSecure’s full-year forecast revision, we updated the Group outlook to revenue ¥6,400 million (+7.9% YoY) and operating profit ¥500 million (+63.2% YoY). While lower than the initial forecast, we still expect YoY growth in both
Slide 34: [For Reference] Revision to Operating Profit Forecast
[For Reference] Revision to Operating Profit Forecast ◼ Operating profit: −¥300 million vs. initial forecast (AIX −¥165 million, AI Security −¥135 million), but still +¥194 million YoY after revision. (Units: JPY Millions) 45 -37 186 500 306 Operating profit AIX business AI Security business Consoli
Slide 35: SG&A Breakdown Trend (Consolidated)
SG&A Breakdown Trend (Consolidated) ■ While personnel costs have stabilized at a certain level since FY04/2025 following headcount expansion for ASK, JOINT, and other business units, spending is being concentrated on higher ROI initiatives. ■ Disciplined cost control over recruitment, training, and
Slide 36: Cost of Sales Breakdown Trend (Consolidated)
Cost of Sales Breakdown Trend (Consolidated) ■ In pursuit of business growth, we will continue active investment in human capital, with labor costs within cost of sales to increase across the Group. ■ Outsourcing costs at Tifana and Vario Secure are being partially reduced. (Units: JPY Millions) Inc
Slide 37: Balance Sheet (As of January 2026 End)
Balance Sheet (As of January 2026 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 1.8 billion yen in intangible fixed assets, which will be amortized over time. ◼ From 2Q, we began holding approximate
Slide 38: 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