NIFTY Lifestyle Co.,Ltd. Q4 FY2025 earnings call

• Overall Financial Performance
  • Consolidated full year revenue: 4.938 billion yen, up 38.8% YoY; EBITDA: 1.379 billion yen, up 19.6% YoY; Operating profit: 1.004 billion yen, up 7.5% YoY. All revenue and profit metrics beat management's disclosed guidance, and the previous mid-term management plan's quantitative targets were achieved one year ahead of schedule.
  • Q4 standalone revenue hit a new quarterly record at 1.476 billion yen, up 24.6% YoY, driven by the contribution from the two new subsidiaries and stable growth of existing core businesses. Operating profit and EBITDA both reached all-time highs.
  • Cost increases were primarily driven by the consolidation of Doors Inc. and GiRAFFE&Co.; standalone Nifty Real Estate saw a declining trend of sales promotion cost ratio through effective cost control.
• Corporate Actions
  • The year-end dividend was raised to 23 yen per share, bringing full year dividend to 32 yen per share, up from the initial guidance of 18 yen per share.
  • Shareholder benefits were expanded: the company transitioned from paper coupons to electronic tickets, expanding coverage to approximately 40 facilities across 7 national regions, improving accessibility.
  • Nifty Lifestyle stock was selected as a marginable security on the exchange.
• Operational Milestones
  • Nifty Real Estate achieved 12 million cumulative app downloads, and won top rankings for both number of property listings and number of search filter options, strengthening its competitive advantage through improved UI/UX and growing referral volumes.
  • Cross-promotion and cross-referral between Nifty Real Estate and Gaiheki Toso no Madoguchi (operated by Doors Inc.) are in progress: a dedicated exterior painting section and columns were added to Nifty Real Estate to leverage its user base for efficient organic user acquisition.
  • GiRAFFE&Co. secured a large order from an existing client, and DFO began integration with Mercari Ads to offer a one-stop service covering data feed construction and full ad operation management.

1. PropTech (不動産テック領域): Full year revenue is 3.689 billion yen, up 36.9% YoY, accounting for 75% of total consolidated revenue. This strong growth was driven by the consolidation contribution from newly acquired Doors Inc. and steady growth of Nifty Real Estate. Key KPIs as of March end: 13.76 million property listings, 12.08 million cumulative app downloads, and 5,570 cumulative partner franchises for the Gaiheki Toso no Madoguchi service. 2. Wellness Tech (ウェルネステック領域): Full year revenue is 325 million yen, down 1.4% YoY. The slight decline stemmed from the reversal of prior year sampling revenue and user migration from coupons to digital ticketing. Key KPIs as of March end: 22,662 total listed facilities, 642 total facilities with coupons/digital tickets, 206 digital ticket partner stores, and 1 million Nifty Onsen members. 3. Cross Tech (クロステック領域): Full year revenue is 923 million yen, up 73.2% YoY. The large growth came from the consolidation effect of GiRAFFE&Co. and the large order won from an existing client; DFO service maintained stable performance.

• Management launched a new 5-year mid-term management plan XPANSION 2030 targeting the 2030 March fiscal year, with a new corporate vision of becoming a supporter of decision-making in the 100-year life era. The business is reorganized into two core domains: LIFE STYLE (supporting individual lifestyle decision-making) and WORK STYLE (supporting decision-making for corporations and workers, driving productivity and competitiveness improvement). 2026 March fiscal year is the first year of the new plan, focused on building business foundations and investing in required management resources.
• 2026 March full year guidance: Revenue of 5.324 billion yen, operating profit of 1.072 billion yen, EBITDA of 1.523 billion yen, net income attributable to parent shareholders of 692 million yen. EBITDA and net income are both projected to deliver double-digit YoY growth, even with approximately 80 million yen in operating profit impact from office-related investments for mid-term growth.
• Dividend policy updated: management set a target payout ratio of 50%, balancing growth investment and capital efficiency. The 2026 March full year dividend guidance is 54 yen per share (27 yen interim + 27 yen year-end), representing a 22 yen per share increase from 2025's 32 yen per share.
• Key strategic initiatives for 2026: For LIFE STYLE, strengthen Nifty Real Estate's purchase-focused app, improve user retention and conversion via personalized recommendations and push notifications; build app-based user acquisition and repeat usage funnels for Nifty Onsen, drive user membership to build long-term growth foundations; expand the Doors Inc. general contractor exterior painting business and launch the new "Sumai Sagashi no Madoguchi" (Home Search Desk) joint service combining Nifty Real Estate and Doors' strengths. For WORK STYLE, continue strengthening marketing consulting services, expand DFO ad operation share leveraging the new Mercari Ads integration, and explore new product development in the corporate search category.

No explicit discussion of material business risks or operational failures is included in the provided transcript.

No formal Question and Answer section is included in the provided transcript.