Bleach,Inc. Q4 FY2025 earnings call

• Operational achievements for FY2025
  • Expanded product portfolio: Increased average core product count from 13 to 20, with 4 A-rank products (average monthly sales over 100 million yen) successfully developed in new categories including pharmaceuticals, functional labeled foods, cosmetics, and online medical care. Overall ROAS improved to 124.7% year-over-year.
  • Strengthened consulting and expanded support scope: Expanded services beyond ad placement to end-to-end support covering product planning, customer funnel design, ad production, operation and performance analysis, accumulated historical case data to improve repeatability of core product development, and acquired new clients via expanded service scope.
  • Scaled video advertising: Continued to expand video advertising on platforms including Meta and TikTok, focused on product validation for video format, grew Q4 video advertising revenue to 496 million yen, driven primarily by cosmetics and beauty salon clients.
  • Built internal capabilities: Launched internal marketing capability improvement projects to improve product selection and database utilization, enabling repeatable mass production of core products. Increased marketer headcount to 107 at period end (up from average 89 during the period), improved revenue per marketer to 192 million yen year-over-year.
• Strategic priorities for FY2026
  • Expand product portfolio: Deepen existing high-experience categories (cosmetics, daily goods, functional foods), expand into high-growth categories including human resources, scale core product count via increased marketer headcount and improved consulting capabilities for upstream value chain.
  • Expand marketing methods: Add new ad platforms including X and Meta to existing core platforms, expand support for additional marketing tactics including listing ads, EC malls and influencer marketing, improve effectiveness via rapid PDCA cycles using historical internal data.
  • Strengthen talent acquisition and development: Plan to hire over 45 new graduates in April 2026, improve marketer training programs to scale organizational capacity while maintaining productivity.
  • Increase IT investment and AI utilization: Build new databases and proprietary automated analysis tools to speed up ad investment decision-making, roll out existing prototype tools from pilot platforms to all operations to improve overall ROAS.
  • Expand manufacturer support capabilities: Subsidiary Aurumtech will provide end-to-end support including product design, sales channel construction, logistics management and mall operation for underpenetrated manufacturers, partnering with Bleach parent's digital marketing support to diversify group revenue opportunities. Already started handling multiple products including beauty equipment.
  • Pursue M&A and strategic partnerships: Leverage strong financial position to pursue M&A and partnerships with manufacturers and marketing-related firms to build a stable long-term growth portfolio.

1. Core digital marketing advertising segment (parent company Bleach): Total consolidated revenue is 17.16 billion yen, with this segment contributing 17.09 billion yen (99.6% of total consolidated revenue). Advertising profit for this segment is 3.385 billion yen, up 46.7% year-over-year. New products in this segment generated 2.211 billion yen in revenue, accounting for ~12.9% of total consolidated revenue. 2. Aurumtech (subsidiary, manufacturer support segment): Founded in March 2025, began full operations in June 2025, generated 70 million yen in revenue in FY2025, starting from Q4 FY2025.

• Management has left full-year FY2026 (ending June 2026) earnings guidance undefined, as it cannot currently produce a reasonable quantitative forecast. It will disclose guidance promptly once a reliable forecast becomes available.
• Key upside risks to performance include faster-than-expected expansion of the product portfolio and faster growth of Aurumtech's manufacturer support business, both of which could drive larger revenue and profit growth than currently anticipated.
• Management remains committed to executing its long-term growth strategy regardless of near-term forecast uncertainty.

• External uncertainty: Changes to advertising-related regulations, adjustments to ad platform rules, and volatility in internet advertising unit costs have increased external business uncertainty.
• Near-term execution risk: New products and new categories are taking longer to scale to core product status than initially expected, creating uncertainty around the timing and magnitude of their contribution to earnings.
• Unforeseen changes: Unexpected shifts in ad platform ecosystem conditions or client sales strategies could create downside risk to performance.

Q: Over what time horizon can Aurumtech's sales be forecasted? / A: Aurumtech currently places product orders with 6 to 12 month ahead planning cycles, so short-term sales visibility is available on this timeline. This matches the early-stage buildout of the new business.

Q: When did Aurumtech begin contributing to consolidated earnings? / A: Aurumtech first started generating revenue in June 2025, so it only contributed to the final full month of FY2025, reflected in Q4 and full-year FY2025 results.

Q: Can you provide a range for FY2026 guidance, and outline key upside and downside risks even if a full forecast is not available? / A: Management cannot provide a quantitative guidance range at this time. Key upside risks are faster scaling of the core product portfolio and expansion of Aurumtech's support services, both driving faster revenue growth. Key downside risks are unexpected changes to the ad environment or client sales strategies, which align with the uncertainty that led to leaving guidance undefined.