Direct Marketing MiX Inc. Q4 FY2026 earnings call

• Company Overview & Core Strengths

  • DmMiX is a sales and marketing solutions provider that helps client companies solve hard-to-address challenges (labor shortages, sales performance improvement) and maximize revenue by leveraging strong direct sales and marketing capabilities.
  • Core competitive advantages come from unparalleled scale: over 80 million annual outbound calls, over 2,500 full-time outbound staff, over 8,500 annual new hires, accumulated large volumes of sales/marketing data and know-how, and a standardized, proprietary "selling mechanism" that balances high productivity and high quality.
  • Current client retention stands at 95%, with approximately 30 new clients acquired per year, and non-communications/infrastructure client development progressing steadily.

• Hybrid Segment Strategy & Operational Examples

  • The segment addresses growing client demand for integrated channel management as customer journeys become more diverse and complex, capturing revenue opportunities across traditional non-sales channels.
  • Key growth drivers: 1) Monetization of non-call channels (web, SNS) and revenue enhancement from online customer service at labor-reduced physical store channels; 2) Converting inbound call centers from cost centers to profit centers.
  • Example 1: Inbound center profit center conversion: DmMiX now takes full end-to-end inbound contracts, conducting upselling/cross-selling after resolving customer inquiries to build a "selling call center" that clients cannot achieve in-house.
  • Example 2: Online customer service for stores/ counters: DmMiX provides live two-way online customer service to replace consolidated physical retail locations, delivering higher value than traditional in-store service by combining specialized product knowledge and the efficiency of online channels.

• DX Fulfillment Segment Strategy & Operational Examples

  • This new segment provides end-to-end outsourcing from back-office tasks (administrative work, staffing) to sales, marketing and daily operations for resource-constrained digital businesses, with particularly fast growing demand from startups.
  • This model lets digital clients focus on their core service development, while DmMiX leverages its operational excellence to handle people-intensive processes.
  • Example 1: Ride-sharing services: DmMiX handles all people-dependent processes from driver recruitment to pre-launch preparation and daily operational management, enabling clients to focus on service development.
  • Example 2: QR code payment (financial services): DmMiX provides seamless end-to-end service from customer acquisition to back-office administrative tasks such as identity verification, improving customer satisfaction and supporting business growth.

This call focuses on a new mid-to-long term vision rather than current period actual segment performance. DmMiX defines three core focus segments that together will account for approximately 80% of total revenue under the new vision:

1. Outbound: The company's legacy core business, built around outbound call center sales and marketing services. It will remain the main business pillar, targeted to achieve 8.7 billion yen in revenue by the 2026 December fiscal period, with a targeted compound annual growth rate (CAGR) of 5.9%.
2. Hybrid: The highest growth targeted focus segment, integrating multi-channel customer engagement. It is targeted to achieve 9.2 billion yen in revenue by the 2026 December fiscal period, with a targeted overall CAGR of approximately 17% (double-digit growth for communications and infrastructure sectors, over 20% growth for other sectors).
3. DX Fulfillment: A new end-to-end operational outsourcing segment for digital businesses, targeted to achieve 3.0 billion yen in revenue by the 2026 December fiscal period, with a targeted CAGR of 14.5%. Non-focus segments: Inbound (centered on the public sector) is expected to remain weak over the medium term; on-site, research and other segments are expected to stay flat.

• Mid-to-long term vision (final year FY2030 December): 50 billion yen in total sales revenue, 5 billion yen in operating profit.
• Interim medium-term target (FY2026 December): 27 billion yen in total sales revenue, 2.3 billion yen in operating profit.
• Three focus segment revenue targets for FY2026 December: 8.7 billion yen for Outbound, 9.2 billion yen for Hybrid, 3.0 billion yen for DX Fulfillment.
• Shareholder return targets: A dividend of approximately 12.0 yen per share with a payout ratio of around 30% by FY2026 December; a payout ratio of over 40% by FY2030 December, and a target ROE of 15% to 20%.
• Outbound segment upside potential: Expansion into non-communication areas (financial services partnerships with carriers, power and gas) is not included in the base plan, but would be an upside if realized.

No explicit risk or operational failure discussion is included in the provided transcript.

No question and answer section is included in the provided transcript.