GENOVA,Inc. Q3 FY2026 earnings call

Corporate Mission and Business Overview

• GENOVA operates under the mission "Connect people and healthcare to create a healthy society", with two core businesses: Medical Platform centered on the healthcare information media Medical DOC, and Smart Clinic focused on clinic automation to improve patient experience.
• The integrated business model funnels users from the Medical DOC platform to partner clinics that have adopted GENOVA's automation solutions, providing end-to-end solutions for clinics from patient acquisition to administrative operations improvement.

ASANO Operational Progress

• Transaction recovery with major manufacturers and trading companies has progressed smoothly, and a stable distribution system has been established. Going forward, hiring will be intensified to prioritize share recovery in the Kanto region, with a split hiring structure for sales and delivery staff to achieve both operational efficiency and sales capability.
• Management integration of the dental distribution business is progressing smoothly, and collaboration with GENOVA will combine both parties' expertise to accelerate group-wide growth.

Brand and Industry Presence Initiatives

• Director Inoue spoke at Street Medical School (July 2025), YOBO Expo 2025 (November 2025), and contributed to discussions on next-generation capital strategy utilizing real-world data and AI at the Health Tech Summit 2025.
• GENOVA was appointed ambassador for SusHi Tech Tokyo 2026, a large Asian conference hosted by the Tokyo Metropolitan Government, and will promote Japanese healthcare DX innovation globally under the vision of solving sustainable urban challenges through technology.
• The clinic automation vision was clarified: rather than partial automation, this approach redesigns the entire clinical workflow to offload routine tasks to systems, allowing staff to focus on decision-making and patient communication, and provides comprehensive support for healthcare DX at clinical sites.

New Domain Expansion

• In the Medical Platform business, outreach to veterinary hospitals has been launched successfully starting in the third quarter, and operation of nursing care welfare facilities will begin in the fourth quarter, with a new nursing care team established in Q3.
• Growing public demand for health information is confirmed by increased monthly average Google search volume for health-related keywords compared to four years ago, demonstrating rising demand for Medical DOC's healthcare information services.

Management and Organizational Base Strengthening

• On the management side, the Corporate Planning Office was newly established in September 2025 to refine budget-actual performance management, accelerate the PDCA cycle, and strengthen M&A strategy to speed up growth.
• On the organizational side, the functions of the Human Resources Planning Department will be significantly strengthened starting February 2026, promoting human capital management that treats talent as assets, and working on next-generation HR initiatives and revision of the evaluation and compensation system. A system has been established to train and retain 80 new graduates joining in April.
• To improve group operation efficiency, 100% subsidiary GENOVA DESiGN will be merged effective April 1, 2026. This merger will strengthen collaboration between the Medical Platform business and the production department, speed up decision-making, reduce management costs, and improve service quality with no material impact on consolidated results.

Strategic Partnership and Reliability Building

• While relationships with academic societies and experts are already strong in the dental field, GENOVA is focusing on building authority and strategic partnerships with advanced medical institutions in the medical field. Strategic Medical & Public Affairs will be implemented to build substantial relationships, deepen collaboration with medical academic societies, contribute to the healthy development of the industry, strengthen company-wide medical governance, and solidify the business base.

Shareholder Return Policy

• Last fiscal year, GENOVA paid its first dividend of 30 yen per share (10 yen regular dividend + 20 yen 20th anniversary commemorative dividend). To avoid a dividend cut this term, the 20 yen commemorative dividend will be converted to a regular dividend, setting the regular dividend at 30 yen per share. Other shareholder return policies including share buybacks will be proactively considered in the future based on stock price and investor feedback.

1. Medical Platform Business: Revenue of 3.51 billion yen, 27% year-over-year decrease, contributing 44.3% of total consolidated revenue. Operating profit contracted due to a decline in contract volume, driven by delivery delays from the service renewal of clinic visit reports and a temporary slowdown in revenue recognition from service revisions. New low-price services launched this term continue to contribute to order volume, and monthly page views for Medical DOC reached 14.32 million as of the quarter end. 2. Smart Clinic Business: Revenue of 2.32 billion yen, 3% year-over-year decrease, contributing 29.3% of total consolidated revenue. Operating profit remained at the same level as the previous quarter and maintained a stable profit margin. - Hardware Service: Contract volume stayed flat compared to the previous quarter, with NOMOCa-Desk leading sales; NOMOCa-Stand saw a slight upward trend in average contract unit price due to increased option plan contract signings. Cumulative installations of automatic reception/payment machines and self-checkout registers reached 2,751 units. - Software Service: Delivery of NOMOCa AI call, which launched trial in the prior year third quarter, is progressing. After integrating development, sales, and support functions into a unified operation in Q2 2026, the implementation process stabilized, and improvements in both implementation speed and quality were achieved in Q3. 3. ASANO (Dental Distribution Business, subsidiary): The subsidiary was established to acquire the core business of ADI.G, with 90%+ of its revenue coming from dental distribution. ASANO's overall transaction recovery rate from the prior year (post-civil rehabilitation) reached 81.5%: 98.1% in Hokuriku region and 72.4% in Kanto region (Kanto is the key focus area for growth). Revenue increased quarter-over-quarter as more trading partners resumed transactions, but has not recovered to pre-business transfer sales and profit levels due to residual effects of civil rehabilitation. For ASANO's DX business: Electronic medical record systems hit a 70.5% budget attainment rate, and reservation systems hit 40.4%, with referrals from partner companies growing steadily. The DX business has a high profit margin but limited profit contribution currently due to slow contract volume growth. Total consolidated revenue for the third quarter is 7.93 billion yen, 4% year-over-year increase, with an operating loss of 20 million yen and net income of 40 million yen.

• The company confirmed that the business has bottomed out, with overall results achieving lower revenue but higher profit than the previous period, and preparations are underway for growth in the next fiscal year. - The Medical Platform business is progressing with profit structure improvement, the Smart Clinic business maintains strong product acquisition performance, and the dental distribution business has built a solid foundation for regrowth after achieving steady transaction recovery, so the company expects to drive growth from all three business lines going forward. - Management expects profit margin improvement for ASANO as DX business revenue grows. - The newly established GENOVA VISION 2026 formalizes the company's strategy to accelerate the construction of infrastructure that enables everyone to access appropriate and reliable healthcare by connecting people and healthcare, guiding the company's medium to long term growth.

• Medical Platform business: Monthly page views have plateaued since the third quarter of last fiscal year, and a temporary revenue lag occurred in the third quarter of this term due to service revision, leading to a year-over-year revenue decline that missed initial performance expectations. - ASANO dental distribution business: Residual impacts of prior civil rehabilitation remain, and the business has not yet recovered to pre-business transfer sales and profit levels; transaction recovery is incomplete in the Kanto region, requiring additional hiring investment to drive share growth. - ASANO DX business: Contract volume growth remains slow, so high profit margin has not translated to material group-level profit contribution currently. - Consolidated performance: Overall sales progress missed internal expectations in the third quarter, leading to continued operating losses and a compressed operating profit for the group.

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