7343.T

• Core Financial Result Performance

  • After business portfolio pruning and focused strategy, first half operating profit increased 85.2% year-over-year and ordinary profit increased 78.2% year-over-year, despite a revenue decline from the sale of ManePro Shop Business and the delayed timing of real estate development revenue. Cost reductions from the ManePro Shop exit absorbed higher SG&A from headcount growth and the head office relocation.
  • Key KPIs are strong: new consultation requests are growing faster than the prior record year, new customer acquisition hit 3,650 households (record pace), and productivity metrics for the online and field sales organization continue to improve year-over-year.
  • 2025 new graduate consultants debuted in October and are expected to contribute to revenue growth in the second half.

• New Product & Strategic Initiatives

  • AI agent product (working title "Kimeru-kun") is in development: the AI handles 70% of routine consultant work including initial needs assessment, deep-dive questioning, life plan simulation and product recommendation, allowing in-house FPs to focus on emotional customer support and final fine-tuning. It will launch a beta version for internal use in Q3, with plans to expand external use after internal testing. The AI reduces customer consultation barriers, supports 24/7 availability, reduces hard-selling perceptions, and is expected to increase the number of customers each FP can handle.
  • Financial education school "Money With" was expanded with the new FP Professional Course, adding to the existing Money Design Course and FP Career Course. The school serves as a new recruitment channel to attract candidates that traditional new graduate hiring cannot reach, and will build a new sales organization centered on its graduates while shifting training costs to candidates. It has already produced its first graduating cohort.
  • Corporate welfare financial education program "Burokkori" won an award in the HR Award 2025 Professional category. The program is currently rolled out to large corporate clients, generates program fees for the company, and directs individual consultation requests to the company with no revenue sharing required, improving overall profitability. It will be actively expanded going forward.
  • A capital and business alliance was formed with listed insurance agency Advance Create, to collaborate on DX solutions for the insurance industry and securities product sales on the large "Hoken Ichiba" insurance platform.

• Long-Term Growth Strategy

  • The company targets building a new ecosystem in the personal finance space, expanding beyond 1-on-1 customer consulting. The long-term target for 2034 March fiscal year is more than doubling core financial product sales revenue compared to 2026, reaching 18 billion to 20 billion yen in total revenue, with an operating profit margin above 20%, EPS of 400 to 450 yen, and ROE of 18% to 20%.
  • The core growth strategy for the Financial Partner Business focuses on three pillars: (1) Healthy expansion of the sales organization: maintain new graduate hiring growth with low 3-year post-graduation turnover (10%), and expand new recruitment channels; (2) Increase customers per consultant: accelerate the shift to online consultations (currently 80% online outside of brick-and-mortar shops) enabled by the AI agent; (3) Increase revenue per customer: develop partnerships with higher revenue share, expand occupational territory outreach via Burokkori, maintain high closing rates and average deal size via improved training and digital tools, and boost LTV via organized after-sales follow-up.
  • Consultant performance is already top-tier: average annual new business ANP per consultant is 48.36 million yen (4-5x higher than peer insurance agencies), 100% of consultants hold FP qualifications, and 80% meet MDRT performance standards, a world-top level achievement.

• Overall fiscal year sales are expected to come in line with original plan, while first half profit is significantly outperforming plan. The full-year plan remains back-loaded due to the concentration of real estate development sales in Q4 and the debut of new graduate consultants in the second half.
• Management does not currently expect either upward or downward revision to the full-year guidance, as the Q4 real estate development project has high certainty of execution with only price adjustments remaining, and no earnings erosion is expected. A guidance update will be provided once the real estate project is finalized.
• The company will not conduct massive new graduate hiring, but will maintain the current hiring pace and expand recruitment via the new Money With channel. The 2034 long-term target remains in place, with the company planning to close gaps to the medium-term 2027 target via new customer growth, additional sales to existing customers, and expansion of new high-margin business lines.

1. Financial Partner Business (Online Sales Organization + IFA): This is the core high-margin segment. Life insurance commissions grew ~10% year-over-year, sales of variable insurance and foreign currency-denominated single-premium insurance are strong, and entrusted assets under intermediation exceeded 40 billion yen. It accounts for nearly all of the company's profit contribution and is growing in line with plan. 2. Real Estate Development Sales: All planned sales for the current fiscal year are concentrated in Q4, with no revenue recorded in the first half. 3. ManePro Shop Business: The business was sold in Q2 of the current fiscal year, so it contributed no revenue in the first half, and its exit reduced operating expenses including personnel costs, rent and goodwill amortization. 4. Digital Services: Revenue underperformed the prior year period because a large financial institution client deprioritized investment in the company's digital product to prioritize core system investment, which was not due to the company's poor customer success performance.

• New graduate hiring faces structural constraints: it is a competitive seller's market, and carries high training and management costs that limit the speed of rapid large-scale expansion of the consultant base.
• Brick-and-mortar shop expansion is not feasible due to high fixed costs, reliance on location potential, and a historical industry pattern of rapid expansion followed by contraction.
• Digital service revenue is subject to client capital allocation priorities, which can shift the investment ranking of the company's products and lead to near-term revenue volatility.

Q: Why is there no full-year earnings revision despite first half profit coming in nearly double plan? Is there downside risk to the second half plan, or is upside still possible?

A: The lack of revision is because all full-year real estate development revenue is concentrated in Q4, and the project already has high execution certainty with only price adjustments remaining. Management does not expect any erosion to consolidated earnings even if price adjustments occur, and currently does not plan for either upward or downward revision. An announcement will be made once the real estate project is finalized.

Q: When do you plan to launch the AI agent for external use, and have you already received inbound inquiries?

A: Management plans to spend a minimum of six months refining the product through internal testing to identify and fix issues before external rollout, and targets external deployment after Q3 of next fiscal year. No specific firm timeline is available at this stage.

Q: What are your current alliances for financial institution product development?

A: Management is currently co-developing AI products for prospective customer discovery with financial institutions, but cannot share additional details at this stage. Public disclosure will be made as soon as information can be released.

Q: If net profit comes in above forecast, will you increase the dividend via a 100% payout policy?

A: Management confirms that a 100% payout and dividend increase is on the table if net profit outperforms the forecast.

Q: A peer personal financial advisory firm received a business improvement order from regulators for improper sales practices, does Broadmind face similar compliance risks?

A: The company confirms it maintains no bias in the insurance and financial products it sells, and has never engaged in profit sharing or improper benefits from specific insurance providers, so there is no similar regulatory risk.