PLAZA HOLDINGS CO.,LTD. Q4 FY2025 earnings call

Overall 2025 March Fiscal Year Results

• Total consolidated net sales reached 18.644 billion yen, a 5.7% increase year-over-year. Operating income hit 336 million yen, a 53.8% increase year-over-year.
• Ordinary income was 388 million yen, and net income attributable to the parent was 275 million yen. The gap between operating income and ordinary income was primarily driven by returns from early venture investments in US Silicon Valley-based visual and photo technology startups.

Mobile Segment Operational Updates

• The top-performing new offering is the "In-Store Smartphone Support" monthly subscription, which provides unlimited on-demand smartphone usage guidance for customers (including elderly users).
• This subscription, launched two years prior, delivers a far higher commission margin for the company than traditional insurance and carrier-assigned product sales. Revenue from the service is expected to reach 200 million yen in the 2026 fiscal year, with incremental growth expected over the following three years.

Strategic Priorities

• The company's top near-term strategic priority is talent development and employee satisfaction. It is investing significant resources into regular employee satisfaction surveys and improvements to become an employer of choice.
• New growth opportunities will be prioritized after solidifying talent and operational foundations.

1. Mobile Segment: This is the company's core segment, accounting for 80% of total company revenue. It exited a plateau growth phase, with its new in-store smartphone support subscription service performing very well, growing subscriber count steadily. The segment is projected to generate stable revenue and earnings over the next three years, with projected revenue of 200 million yen from the new subscription service alone in the 2026 March fiscal year.
2. Other Segments: This group includes the Souzou imaging business (brands "Tsukurundesu", "One-Bo"), glamping, and apparel businesses. All segments achieved healthy profitability in the 2025 March fiscal year. The key outstanding challenge for these smaller segments is scaling their current small operations.

• For the 2026 March full consolidated fiscal year, management forecasts total net sales of 19 billion yen, operating income of 350 million yen, ordinary income of 280 million yen, and net income of 200 million yen.
• Labor costs are projected to increase by approximately 200 million yen year-over-year; excluding this incremental labor cost increase, baseline operating profit would reach 550 million yen. The company has set an internal mandatory target of 430 million yen in core operating business profit, and April 2025 results are already tracking in line with this plan.
• Management projects stable earnings growth from the core Mobile Segment over the next three years, with incremental growth from the new smartphone support subscription.

• Rising interest rates have already increased the company's interest expenses by approximately 35 million yen over the past year, and future interest rate movements remain uncertain. This interest rate impact is already incorporated into the 2026 fiscal year earnings guidance.
• As of the 2025 fiscal year end, the company holds approximately 4.7 billion yen in net interest-bearing debt, and 6.4 billion yen in total gross interest-bearing debt, requiring active monitoring of future interest rate movements to avoid unnecessary costs.
• Smaller non-core segments currently have limited scale, presenting a challenge to growing their contribution to overall company profits.

Q: What is Plaza HD's plan for non-Softbank carrier shops, and how will they perform moving forward? / A: The full transcript provided does not include management's full answer to this question, only notes that this topic was raised in the Q&A portion of the call.

Q: What progress and plans does management have for launching its new business lines? / A: The available transcript does not contain the full text of management's response to this question, only indicates this was a raised topic.

Q: What are the company's key strategic initiatives going forward? / A: The full response to this question is not included in the available transcript; only the question topic is noted.