Heroz, Inc. · TSE:4382

Heroz — Q2 FY04/2026 Earnings Presentation

36 slides from Heroz's earnings presentation, Dec 12, 2025

  1. Slide 1: Presentation Material for FY04/2026 Q2 Financial Results

    Presentation Material for FY04/2026 Q2 Financial Results December 12,2025 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 Japanese

  2. Slide 2: Financial Highlights

    01 Financial Highlights ©HEROZ, Inc. 2

  3. Slide 3: Financial Highlights: Significant YoY growth in revenue and profit; outlook revised

    Financial Highlights:Significant YoY growth in revenue and profit; full-year outlook revised. ◼ Revenue ¥3,098 million (+9.6% YoY), EBITDA ¥492 million (+69.1% YoY), and operating profit ¥258 million (+191.2% YoY), all increased. Performance ◼ HEROZ ASK: revenue +55.1% QoQ JOINT: revenue +19.9% QoQ

  4. Slide 4: Revision to FY04/2026 Full-Year Forecast

    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 revenue and pro

  5. Slide 5: Revision to Operating Profit Forecast

    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 Consolidation Forecast

  6. Slide 6: FY2026 Q2 Consolidated Performance Summary

    FY2026 Q2 Consolidated Performance Summary:Key SaaS metrics are also trending well. HEROZ Group Consolidated Revenue EBITDA * Operating profit 3,098 million yen 492 million yen 258 million yen [YoY+9.6%] [YoY+69.1%] [YoY+191.2%] AI SaaS KPI ARR Recurring Revenue Ratio ** Recurring Churn Rate*** AI S

  7. Slide 7: Segment Overview: Company-wide YoY Growth; BtoB Second-Half Weighted

    Segment Overview: Company-wide YoY Growth; BtoB to Be Second-Half Weighted *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 second straight quarter, with steady progres

  8. Slide 8: Performance Overview (May 2025-October 2025)

    Performance Overview (May 2025-October 2025) ❶Revenue was ¥3,098 million(+9.6% YoY)❷operating profit ¥258 million(+191.2% YoY) ❸EBITDA ¥492 million (+69.1% YoY), showing significant growth. FY04/2025 FY04/2026 Initial Forecast Progress against Q2 Results Q2 Actual YoY (Announced on (Consolidated ) I

  9. Slide 9: Key Performance KPIs (by Quarter) Net Sales, EBITDA

    Key Performance KPIs (by Quarter) Net Sales, EBITDA Progress in 1H is modest due to a ¥68 million timing shift, but We had expected to surpass 4Q levels, but now assume a we expect recovery and growth concentrated in 2H. second-half–weighted growth path. Net Sales EBITDA (Units: JPY Millions) Impact

  10. Slide 10: Recurring Revenue & ARR: Steady growth

    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 Business Business 4,395 4,175 4,227 4,105 3,656 3,7

  11. Slide 11: 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 ・Despite a ~¥68 million timing shift in HEROZ BtoB ・Backed by price revisions, both revenue and profit sales, revenue grew 17.8% YoY. increased YoY, hitting a new quar

  12. Slide 12: BtoC: 2Q sales exceeded last year's level and remained solid

    AIX Segment BtoC: 2Q sales exceeded last year’s level and remained solid. BtoC Revenue Trends Games played continue to grow steadily ・Achieved 0.6% YoY growth ・"Sprint" drove 30M+ games for three straight quarters, ・Recorded highest-ever quarterly revenue hitting a record high. Quarterly New Match C

  13. Slide 13: BtoB: 1H up 29% YoY with second-half-weighted structure

    AIX Segment BtoB: 1H up 29% YoY with a continued second-half–weighted structure BtoB Number of BtoB Revenue Trends Active Projects Quarterly ・2Q: +29% YoY ・Deal growth in 2Q keeps us above last year’s 2H ・Despite a ¥68 million timing shift, 3Q is expected to be level. +17.9% YoY. YoY ■■1Q ■■2Q ■■1Q/

  14. Slide 14: Cost breakdown (consolidated): cost of sales

    Cost breakdown (consolidated): Cost of sales increased YoY, but the cost-of-sales ratio improved, lifting gross margin. ■ Smooth hiring of developers led to a 10.1% YoY rise in cost of sales, while the cost-of-sales ratio fell ~0.6pt YoY, improving gross margin. ■ Outsourcing costs are also trending

  15. Slide 15: SG&A breakdown (consolidated)

    SG&A breakdown (consolidated): 2Q SG&A declined YoY, and the SG&A-to-sales ratio fell, reflecting cost reductions. ■ −7.7% YoY, as we focus on more cost-effective initiatives. ■ SG&A-to-sales ratio down ~7pts; we will continue disciplined cost control. YoY -7.7% (Units: JPY Millions) SG&A YoY (On an

  16. Slide 16: SaaS Progress: Investment results gradually emerging

    SaaS Progress: Investment results gradually emerging this fiscal year. HEROZ ASK Revenue Trends JOINT Revenue Trends ⚫ 2Q revenue +55.1% QoQ; ARR reached ¥100 million in ⚫ JOINT's revenue steadily increased in 2Q, growing +19.9% October. QoQ. ⚫ Contracted customers exceeded 330 companies as of ⚫ Num

  17. Slide 17: Churn Rate Trend: HEROZ ASK continues to decline

    Churn Rate Trend: HEROZ ASK continues to decline to low levels. ◼ AI Security’s 2Q FY2026 churn rate was 0.71%, staying below 1%. ◼ HEROZ ASK's churn rate decreased to 0.64%, showing continued improvement. ▍Quarterly Churn Rate Trend Security BPO Service: Quarterly Churn Rate Trend HEROZ ASK User ID

  18. Slide 18: HEROZ Business Overview

    02 HEROZ Business Overview ©HEROZ, Inc. 18

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: AI Agent2.0 Meta Agent

    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

  23. Slide 23: 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

  24. Slide 24: HEROZ at a Glance

    HEROZ at a Glance *Total Games Played on World Computer Shogi Cumulative client growth Shogi Wars – Championship* - Titles (B2B 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 a

  25. Slide 25: Initiatives in each business segment

    03 Initiatives in each business segment ©HEROZ, Inc. 25

  26. Slide 26: Hosting various events to maximize the shogi player population

    Hosting various events to maximize the shogi player population. ◼ We run a variety of initiatives, including the ‘Tatsujin-sen’ master matches, to engage players from beginners to experts. ◼ We will continue to launch initiatives aimed at expanding the overall shogi player base. Further expanding to

  27. Slide 27: Wills launched a new Incentive Design Simulation feature

    Wills launched a new ‘Incentive Design Simulation’ feature powered by HEROZ’s Stock Price Forecast & Diagnostics AI. ◼ AI simulations based on historical data and company parameters quantify the impact of introducing shareholder incentives. ◼ They allow quick, numerical comparison of post-implementa

  28. Slide 28: HEROZ ASK update: new AI analytics dashboard

    HEROZ ASK update: new AI analytics dashboard to analyze usage data and automatically suggest improvements. ◼ Goes beyond visualization by using AI to identify bottlenecks and propose cross-organizational roll-out opportunities. ◼ Supports the latest models (Claude Sonnet 4.5, Claude Opus 4.1, Claude

  29. Slide 29: AI Sakura-san: Contracted users steadily growing

    AI Sakura-san: Contracted users steadily growing. ◼ Tourism experience enhancement and workload reduction at municipal offices. ◼ Recurring revenue from AI Sakura-san continues to benefit from steady new customer wins. Use cases are expanding into new AI Sakura-san Revenue Trends domains ⚫ In the of

  30. Slide 30: Frequently Asked Questions and Answers

    04 Frequently Asked Questions and Answers ©HEROZ, Inc. 30

  31. Slide 31: 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 1Q, HEROZ BtoB missed its plan due to about ¥65 million of revenue timing shifts. The pipeline and headcount are both increasing as planned, but given the busine

  32. Slide 32: Appendix

    05 Appendix ©HEROZ, Inc. 32

  33. Slide 33: SG&A Breakdown Trend (Consolidated)

    SG&A Breakdown Trend (Consolidated) ■ Headcount was increased to strengthen new SaaS offerings such as ASK and JOINT, and personnel expenses have remained at a stable elevated level since FY Apr 2025. ■ We continue to exercise disciplined cost control over recruitment/training and advertising expens

  34. Slide 34: Cost of Sales Breakdown Trend (Consolidated)

    Cost of Sales Breakdown Trend (Consolidated) ■ To support growth, we plan to continue investing in talent and allow labor costs within cost of sales to increase at the Group level. ■ We are reducing outsourcing expenses at Tifana and Vario Secure, thereby offsetting the incremental costs associated

  35. Slide 35: Balance Sheet (As of October 2025 End)

    Balance Sheet (As of October 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 1.8 billion yen in intangible fixed assets, which will be amortized over time. ◼ From 2Q, we began holding approximate

  36. Slide 36: 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

HEROZ — Q2 FY04/2026 Earnings Presentation on 6ix