FY2023 1Q Earnings Presentation

FY2023 1Q (April 1, 2023-June 30, 2023), the company posted operating revenue of ¥2,551 million (+7.4% YoY), operating profit of ¥483 million (+20.3% YoY), and profit attributable to owners of the parent of ¥332 million (+25.4% YoY).

Operating revenue was ¥2,551 million, an increase of 7.4% year on year, due to a significant increase to the balance of assets under management caused by a rise in net asset value for investment trusts from April 2023 onward. Operating profit was ¥483 million, an increase of 20.3% year on year, due to the growth of selling, general and administrative expenses, other than commission expenses, being suppressed. The Company plans to pay interim dividends (record date: September 30, 2023; ¥14 per share) from this fiscal year. For the year-end dividend, together with the interim dividend, the Company plans to pay a surplus dividend with a target consolidated annual dividend payout ratio of 30%.

For the future growth strategy, we will strengthen our three strengths of “Asset management,” “Influence,” and “Sales” in order to gain widespread recognition of the “Hifumi” Brand, which is the source of our competitive advantage, and widely disseminate savings investment by “Hifumi” in Japan and spread the culture of asset building. The shift from savings to investment will continue to accelerate due to the permanent increase in the investment period and the expansion of investment limits under the new NISA. We aim to take advantage of this trend by spreading accumulated investment with “Hifumi” and promoting acquisition of new customers and additional deposits and increase in investment income by providing new products actively that meet customers’ needs as appropriate.