Slide 1: FY04/2026 Full-Year Financial Results
FY04/2026 Full-Year Financial Results June 12, 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 document, the latter
Slide 2: Financial Highlights
01 Financial Highlights ©HEROZ, Inc. 2
Slide 3: FY26 Financial Highlights
FY26 Financial Highlights ◼ Revenue ¥6,424 million (+8.3% YoY), EBITDA ¥1,025 million (+29.2% YoY), and operating profit ¥523 million (+70.7% YoY), all up year on year. HEROZ ASK revenue grew +27.8% QoQ, with ARR surpassing ¥200 million. Performance ◼ Full-year results exceeded the revised forecast,
Slide 4: Full year: organic operating profit of ¥637 million, up 108% YoY
Full year: on an organic basis, operating profit of ¥637 million, up +108% YoY—roughly double. ■ Full-year operating profit was ¥523 million; on an organic basis excluding M&A-related expenses, operating profit reached ¥637 million. ■ Up +108% YoY, roughly doubling year on year. (Units: JPY Millions
Slide 5: Highlights of This Presentation
Highlights of This Presentation ◼ In FY27, we concentrate resources on two domains—AI Security and the AI Cowork concept—redefining our business structure. ◼ We link monetization of existing businesses (ARR of ¥200 million) and capture of new markets (up to ¥12.8 trillion) to FY27 growth investment.
Slide 6: 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 6 times + 30% (FY Apr 2026) Game Sprint Mode drove growth in game volume. In May 2026, 'Hisui', developed by HEROZ +34% in FY Apr 2024 and
Slide 7: FY26 Full-Year Consolidated Results
02 FY26 Full -Year Consolidated Results ©HEROZ, Inc. 7
Slide 8: Full-Year Consolidated Performance Summary
Full-Year Consolidated Performance Summary: Key metrics are also trending well. HEROZ Group (Consolidated) Revenue EBITDA * Operating profit 6,424 million yen 1,025 million yen 523 million yen [YoY+8.3%] [YoY+29.2%] [YoY+70.7%] KPI ARR (Annual Recurring Recurring revenue Recurring churn rate*** Reve
Slide 9: FY04/2026 Full-Year Consolidated Results
FY04/2026 Full-Year Consolidated Results ❶Revenue ¥6,424 million (+8.3% YoY) ❷operating profit ¥523 million (+70.7% YoY) ❸EBITDA ¥1,025 million (+29.2% YoY), showing significant growth. FY04/2025 FY04/2026 Full-year forecast Full-year Full-year YoY Forecast progress rate (announced Dec 2025) (Consol
Slide 10: Key Performance KPIs (by Quarter): Net Sales, EBITDA
Key Performance KPIs (by Quarter): Net Sales, EBITDA Q4 standalone revenue of ¥1,738 million, up +9.7% YoY— Q4 EBITDA of ¥306 million, a new record high. strong growth. Net Sales EBITDA (Units: JPY Millions) (Units: JPY Millions) YoY YoY +9.7% +1.5% 1,738 1,583 1,584 1,588 301 306 1,520 1,514 279 28
Slide 11: Recurring Revenue & ARR: Stable revenue growth
Recurring Revenue & ARR: Stable revenue growth. 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 Business ■AIX Business 4,633 4,395 4,569 4,227 4,105 4,175 507 510 3,656 3,756 YoY
Slide 12: 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 +9.4% YoY. ・Revenue +9.7% YoY. ・Segment profit declined YoY, mainly due to upfront ・Price revision effects contributing throughout the fiscal investment in hir
Slide 13: AIX Segment — BtoC
AIX Segment — BtoC: Q4 Revenue Also Exceeds Prior Year, Trending Steadily BtoC Revenue Trends Games played continue to grow steadily ・Achieved +5.7% YoY growth ・Quarterly games played topped 30 million for the fifth straight ・Premium user count reached a record high at fiscal year- quarter; cumulati
Slide 14: AIX Segment — BtoB
AIX Segment — BtoB: Full-Year Cumulative Revenue Up +20.6% YoY BtoB Number of BtoB Revenue Trends Active Projects (Quarterly) ・Full-year cumulative revenue +20.6% YoY ・Q4 active project count up +39.0% YoY ・+39.2% YoY in Q4, reflecting the Q4-weighted structure ・Advancing co-creation, hands-on suppo
Slide 15: Cost breakdown (consolidated): Cost-of-sales ratio down 3.5pt
Cost breakdown (consolidated): Cost-of-sales ratio down 3.5pt, mainly on improved BtoB utilization. ■ Engineer hiring on track; cost of sales +2.8% YoY. ■ On improved BtoB utilization, the Q4 standalone cost-of-sales ratio fell to 51.4%, down 3.5pt YoY. YoY +2.8% Cost of Sales YoY (On an organic bas
Slide 16: SG&A breakdown (consolidated)
SG&A breakdown (consolidated): Excluding M&A-related expenses, flat YoY on an organic basis. ■ On an organic basis excluding M&A-related expenses, SG&A held flat YoY. ■ Excluding M&A-related expenses, the Q4 standalone SG&A-to-sales ratio fell approx. 3 points; disciplined cost control to continue.
Slide 17: HEROZ ASK Progress: Revenue Up +27.8% QoQ
HEROZ ASK Progress: Revenue Up +27.8% QoQ HEROZ ASK Revenue Trends Continuous Updates to Drive Adoption & Retention ⚫ Q4 revenue grew +27.8% QoQ, with ARR reaching ¥200 million at end-April. ⚫ Launched MCP support, integrating with Notion, Box, Slack, and more ⚫ Cumulative contracted customers reach
Slide 18: Churn Rate Trend
Churn Rate Trend: HEROZ ASK also continuing to decline to low levels. ◼ AI Security's Q4 FY02/2026 churn rate was 0.81%, with the quarterly churn rate stably below 1%. ◼ HEROZ ASK's churn rate rose temporarily to 1.27% in Q4 but is expected to fall below 1% in Q1 FY04/2027. ▍Quarterly Churn Rate Tre
Slide 19: Business Strategy Update
03 Business Strategy Update ©HEROZ, Inc. 19
Slide 20: Two Strategic Axes Driving FY27
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 21: 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 22: HEROZ ASK Cowork: Unifying Front and Back Office
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 23: HEROZ ASK Cowork: Self-Evolving Loop
①HEROZ ASK Cowork: Toward De Facto Standard in the Delegated AI Back -Office via a Self-Evolving Loop ◼ A self-evolving engine powered by real operations × multi-AI. ◼ Aiming to become the de facto standard in the fully delegated AI back-office. ① Source of the growth engine ② Self-evolving loop (4
Slide 24: AI Security Cowork: Years of Operations × AI
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 25: AI Security Cowork: Fully Delegate 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 26: Topics by Segment
04 Topics by Segment ©HEROZ, Inc. 26
Slide 27: Advancing Initiatives to Maximize the Shogi Audience
Advancing Initiatives to Maximize the Shogi Audience ◼ Launched a new game mode, 'Tsume-Bato,' offering a fresh Shogi Wars–style experience. ◼ Rolled out diverse initiatives—from large tournaments to collaborations—for players of all levels. Driving Initiatives to Maximize the Shogi Audience ⚫ From
Slide 28: Pokémon Battle Scope: Continued Adoption
Pokémon Battle Scope: Continued Adoption at Official Pokémon Tournaments ◼ 'Pokémon Battle Scope,' a battle-analysis AI co-developed with The Pokémon Company, continues to be used at Pokémon Japan Championships 2026. ◼ Leveraging game-analysis technology cultivated in shogi AI, we advance AI use in
Slide 29: AI Sakura-san: Expanding Use Cases
AI Sakura-san: Expanding Use Cases and Earning External Recognition ◼ Adoption is expanding into new areas such as tourism information and healthcare, where labor shortages and inbound demand are challenges. ◼ Selected for 'Japan's Service Innovation 2025,' with further adoption expected to accelera
Slide 30: FY04/2027 Full-Year Forecast
05 FY04/2027 Full-Year Forecast ©HEROZ, Inc. 30
Slide 31: FY04/2027 Full-Year Forecast
FY04/2027 Full-Year Forecast ◼ Reflecting expansion of the AI Security business and HEROZ ASK, full-year revenue is planned at ¥6.8 billion. ◼ While continuing growth investment in development and marketing at prior-year levels, we target operating profit of ¥800 million. FY04/2026 Full-year FY04/20
Slide 32: Frequently Asked Questions
06 Frequently Asked Questions ©HEROZ, Inc. 32
Slide 33: Frequently Asked Questions and Answers
Frequently Asked Questions and Answers ◼ Selected answers to frequently asked questions from our recent financial results announcements. Q: How do you plan to grow the VarioSecure business going forward? A: Building on its existing network-security foundation, we will expand a ransomware-countermeas
Slide 34: Appendix
07 Appendix ©HEROZ, Inc. 34
Slide 35: History of HEROZ
History of HEROZ ⚫ Sales Trends and Main History (Units: JPY Millions) HEROZ was founded with the concept of "Surprise to the Heart," aiming to create services that surprise the world. Newly added companies 6,800 to our group 6,424 We believe everyone has unique abilities and, through the services w
Slide 36: The AI BPaaS Model Evolving with AI Agents
The AI BPaaS Model Evolving with AI Agents ◼ HEROZ is transforming its model from generative-AI-based service delivery (AI BPaaS) to AI agents. ◼ With AKM Consulting (BAKUNAGE) as a subsidiary, we extend AI agents into the back office. AI BPaaS with Generative AI AI BPaaS with AI Agents Providing au
Slide 37: 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 that structures problems and autonomously designs solutions for a wide range of business challenges. AI Agent Evolution Direction Fully 20
Slide 38: Target Market Size for AI BPaaS
Target Market Size for AI BPaaS ◼ We aim to capture a combined BPO + AI TAM of up to ¥12.8 trillion through AI BPaaS delivered by AI-capable talent. BPO + AI Market Size Trend Up to ¥12.8 trillion 2029 Market size Market opportunity for AI BPaaS Up to ¥7.6 trillion 2025 ・BPO market expansion (¥5.87
Slide 39: HEROZ's Vision for the AI Revolution
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." We aim to build a society where AI Value Creation Through AI is embedded in everyday life, allowing everyone to focus on self-fulfillment. AI is a partner in co-creati
Slide 40: Group Business Structure (Business Segments)
Group Business Structure (Business Segments) ◼ We operate two segments: the AIX Business and the AI Security Business. *1 MAU: Monthly Active Users *2 MPU: Monthly Paid Users *3 ARPPU: Average Revenue Per Paid User ◼ VOIQ, which joined the group in July 2024, is classified under the AIX Business. AI
Slide 41: SG&A Breakdown Trend (Consolidated)
SG&A Breakdown Trend (Consolidated) ■ After prior-year sales & marketing hiring, fixed costs were reduced via executive restructuring at group companies; personnel expenses have stabilized at around ¥275 million. ■ Using AI and direct recruiting, recruitment/training and advertising spend is focused
Slide 42: Cost of Sales Breakdown Trend (Consolidated)
Cost of Sales Breakdown Trend (Consolidated) ■ To drive growth, we will continue active investment in human capital, increasing labor costs within cost of sales across the Group. ■ On improved BtoB utilization, the cost-of-sales ratio stays on an improving trend even as human-capital investment expa
Slide 43: Balance Sheet (As of End-April 2026)
Balance Sheet (As of End-April 2026) ◼ Current cash and deposits continue to be invested progressively to realize our mid- to long-term growth strategy. ◼ Due to M&A, intangible assets include a goodwill balance of approx. ¥1.8 billion, to be amortized over time. ◼ From Q2 FY2026, we hold approximat
Slide 44: VarioSecure: Company Overview
VarioSecure: 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 ¥751.79 million services wholeheartedly in Japan
Slide 45: A.I. Squared: Company Overview
A.I. Squared: Company Overview Company A.I. Squared, Inc. Founded December 2015 Capital ¥90 million Employees 26 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 46: 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 47: 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 48: AKM Consulting: Company Overview
AKM Consulting: Company Overview Company AKM Consulting, Inc. 10-35 Sakaecho, Kanagawa-ku, Yokohama, Locations Kanagawa Cloud back-office setup support / IPO Business consulting / recruitment support President & CEO Kazumichi Nakayama Hiroya Mori Director Naoya Takahashi Yuya Nakahara Auditor Daisuk
Slide 49: 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