Kufu Company Inc.

FY2023.9

 Presentation Material
Nov 14, 2023

AgendaConsolidated Financial Results for FY2023.
Direction for FY2024.
Business Overview by Segment
Daily Life Busines
Life Event Business11. Consolidated Financial Resultsfor FY2023.9

2

Group Composition（Main Group Companies as of Nov 1, 2023）
Daily Life BusinessLife Event Business

Daily
and community life 日常・地域生活領域
domainMarriagedomainHomedomain
住まい領域

Shopping information service *1

Regional/lifestyle 
information media *1

Management consulting service

Consulting service for high-net-worth individuals
Wedding information media

and service

Household budget service,

Research and development *2

Home and real estate specialized media andpurchase and resale service

Educational app

Investment and Incubation Business

OthersBusiness Investment and businessdevelopment domain

management domain

くふうキャピタル
Holding company 

(Investment)

Location and behavioral data marketing *3

Investment

management

Travel/outing media（関連会社）

Holding company(Support for operating companies)

Development and sales of  Informational website for insurance products
trips with children*1: Media and local businesses run by Locoguide Inc. was succeeded (business transfer) by SHIZUOKA ONLINE CO. LTD. on July 1, 2023.

*2: Da Vinci Studio Co., Ltd. merged into Zaim Inc., and Zaim Inc. changed its name to Kufu AI Studio Inc. on July 1, 2023.

*3: Hokenno Kufu Co., Ltd. changed its name to Kufu Geodata, Inc. on August 15, 2023.

3

Consolidated Net Sales
・Net sales for FY2023.9 were 20,486 million yen, which was 97.6% of the full-year forecast

FY2020.9 ※1FY2021.9 ※1 FY2022.9
ResultNet sales
Daily Life BusinessLife Event Business
Investmentand IncubationBusiness

Other
Adjustment

ResultResultFY2023.9 ※2
ResultYoY

Forcast％ 21,000
6,042 11,256
18,625
20,486
110.0
6,042

-

-

4,401
13,643
562
146
-128

4,409
13,154
2,966
196
-240

100.2 ％
96.4 ％
527.8 ％
134.3 ％--

Achievementrate

97.6 ％(JPY MM)*1: Results for FY2020.9 (Oct. 2019 to Sep. 2020) and FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings results for the former KUFU COMPANY INC. and Locoguide Inc. for each period (unaudited).

*2: The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9. 

As a result of the organizational restructuring, some businesses were changed their segment from the Daily Life Business to the Life Event Business from the third quarter of FY2023.9.

Da Vinci Studio Co., Ltd. merged into Zaim Inc. on July 1, 2023, and the profit (loss) of the former Da Vinci Studio Co., Ltd. were changed their segment from the Other to the Daily Life Business from the fourth quarter of FY2023.9.

4

Consolidated Operating Profit / EBITDA
・EBITDA for FY2023.9 was 2,926 million yen, which was 94.4% of the full-year forecast

FY2020.9 ※1FY2021.9 ※1 FY2022.9
ResultOperating profit
Daily Life BusinessLife Event Business
Investmentand IncubationBusiness

Other
Adjustment

EBITDAFY2023.9 ※2

ResultResultResult604 6,042
1,000

1,558

1,882 120.8 ％

-

-

1,278
1,048
181
-124
-826

955
986
1,112
-143
-1,02774.7 ％
94.0 ％
612.6 ％
-

-

-

890

1,617

2,581

2,926 113.3 ％

3,100

94.4 ％YoY

Forcast2,000

Achievement

rate

94.1 ％(JPY MM)*1: Results for FY2020.9 (Oct. 2019 to Sep. 2020) and FY2021.9 (Oct. 2020 to Sep. 2021) are the simple aggregate of consolidated earnings results for the former KUFU COMPANY INC. and Locoguide Inc. for each period (unaudited).

*2: The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9. 

As a result of the organizational restructuring, some businesses were changed their segment from the Daily Life Business to the Life Event Business from the third quarter of FY2023.9.

Da Vinci Studio Co., Ltd. merged into Zaim Inc. on July 1, 2023, and the profit (loss) of the former Da Vinci Studio Co., Ltd. were changed their segment from the Other to the Daily Life Business from the fourth quarter of FY2023.9.

5

Highlights of FY2023.9 Consolidated Financial Results
・EBITDA for FY2023.9 was 2,926 million yen, which was 94.4% of the full-year forecast

Progress by segment
Daily and community life domain

Daily Life Business

The Tokubai business maintained sales growth but experienced difficulties in raising prices and a decline in advertising sales due to lower media user
Promote organizational restructuring to strengthen the development and provision of tools that are useful for daily life in order to create actions to solve user problems

Home domai

Life Event Business

Sales of SaaS tools for real estate agencies were steady, purchase and resale services promoted inventory reduction, and services for high-net-worth individuals contributed by multiple spot project
HyAS & Co. Inc. was sluggish in new orders, but achieved their full-year earnings forecast

Marriage domai

The number of paid advertising venues continued to decline, and the entire performance of the domain was  
lower than the previous year due to the deterioration in profitability of the media business
The number of weddings held in Wedding Producing business remained sluggish but orders are recovering toward profitability in FY24/9

Investment and Investment and business development domai
Incubation Business Investment business significantly increased sales and profits due to the sale of operating investment securities
6Consolidated Quarterly Financial Results
Both sales and profits decreased year-on-year
FY2022.9

FY2023.9

Q1

Q2

Q3

Q4

Q1

Q2 ※

Q3

Q4

YoY

QoQ

Net sales

4,528

4,599

4,175

5,321

4,883

4,362

6,543

4,696

88.3 ％

71.8 ％

Operating profit

369

403

233

551

433

151

1,023

274

49.7 ％

26.8 ％EBITDA

626

658

488

808

685

418

1,285

536

66.3 ％

41.7 ％(JPY MM)* The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9.

7

Consolidated Financial Results – Quarterly Trends
Both sales and profits decreased year-on-year
Net sales

4,696
百万円
JPY MM

7,000

Operating profit
1,400

6,000

1,200

5,000

1,000

4,000

800

3,000

600

2,000

400

1,000

200

0

0

(JPY MM)Q1
FY2022.9

Q2

Q3

Q4

Q1
FY2023.9

Q2
*

Q3

Q4

EBITDA(JPY MM)

536

274

JPY MM

JPY MM

Q1
FY2022.9

Q2

Q3

Q4

Q1
FY2023.9

Q2*

Q3* The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9.

Q48

Consolidated Quarterly Financial Results – Net Sales by Segment
・Due to organizational restructuring, some businesses were changed their segment from the Other to the Daily Life Business・While the Daily Life Business recovered QoQ, the Home domain in the Life Event business maintained at the same level as the previous year and the previous quarter・Investment and Incubation Business recorded sales from the sale of operating investment securities in Q3

FY2022.9

Net

sales

FY2023.9

Q1

Q2

Q3

Q4

Q1

Q2 *1

Q3 *2

Q4 *3

Daily Life Business

1,101

1,101

1,056

1,143

1,110

1,211

930

1,157 101.2% 124.4%

Life Event Business

3,401

3,473

3,092

3,675

2,938

3,037

3,628

3,549

96.6%

97.8%

Investment andIncubation Business

25

16

24

495

828

97

1,972

68

13.8%

3.5%

Other

36

39

30

39

50

60

82

2

5.1%

2.4%

Adjustment

-36

-31

-28

-32

-43

-44

-70

-80

-

-

QoQ

YoY

(JPY MM)*1: The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9.

*2: As a result of the organizational restructuring, some businesses were changed their segment from the Daily Life Business to the Life Event Business from the third quarter of FY2023.9.

*3: Da Vinci Studio Co., Ltd. merged into Zaim Inc. on July 1, 2023, and the profit (loss) of the former Da Vinci Studio Co., Ltd. were changed their segment from the Other to the Daily Life Business from the fourth quarter of FY2023.9.

9  Consolidated Quarterly Financial Results – OP by Segment
・The Daily Life Business recovered QoQ, but the impact of the decline in profits from media advertising was significant

・The Life Event business increased driven by the Home domain

・Investment and Incubation Business recorded profits from the sale of operating investment securities in Q3
Q1

FY2022.9
Q2
Q3

Q4

Q1

Q2 *1

FY2023.9
Q3 *2 Q4 *3

Daily Life Business

365

351

278

282

259

313

179

202 71.7% 113.2%

Life Event Business

251

287

206

302

191

118

306

369 122.2% 120.7%

andOperating
 Investment
profit Incubation Business
Other

-8

-6

-5

202

313

3

832

-37

-

-

-31

-27

-34

-31

-61

-42

-41

1

-

-

-208

-202

-211

-204

-269

-242

-252

-263

-

-

Adjustment

YoY

QoQ

(JPY MM)*1: The Life Event Business started consolidating profit (loss) of OM Solar, Inc. and the Investment and Incubation Business started consolidating profit (loss) of RETRIP, Inc. in the second quarter of FY2023.9.

*2: As a result of the organizational restructuring, some businesses were changed their segment from the Daily Life Business to the Life Event Business from the third quarter of FY2023.9.

*3: Da Vinci Studio Co., Ltd. merged into Zaim Inc. on July 1, 2023, and the profit (loss) of the former Da Vinci Studio Co., Ltd. were changed their segment from the Other to the Daily Life Business from the fourth quarter of FY2023.9.  

10

Consolidated Financial Results – B/S
Current assets(Cash and deposits)(Operational investment securities)(Real estate for sale)Non-current assets(Goodwill)(Investments and other assets)

AssetsLiabilities(Short-term and long-term borrowings)

Net assets(Retained earnings)(Treasury shares)(Valuation difference on available for-sale securities)

Total liabilities and net assets* Items in parentheses are included in totals.

As of 

end-Sep. 2022

As ofend-Sep. 2023

Change14,826
7,269
2,979
2,758
6,498
3,526
2,047
21,3299,666
5,856
11,663
1,191
-443
399
21,32914,112
9,405
1,334
1,232
6,851
3,591
1,795
20,973
9,376
5,349
11,596
1,739
-132
-13
20,973-704
2,136-1,645-1,525
352
65
-251
-356
-290
-506
-66
548
311
-412
-356

Change factors

・Cash and deposits increased by 2,136 million yen due to the sale of operating investment securities and cash acquired through operating activities,  
offsetting the acquisition of shares in subsidiaries 
and other spending ・Real estate for sale decreased by 1,525 million

yen due to inventory reduction

・Due to the start of consolidation RETRIP, Inc. 

and OM Solar, Inc. and other impacts,  
goodwill increased by 65 million yen

・Short-term and long-term borrowings decreased by 506 million yen

・Treasury shares decreased by 311 million yen due to the impact of the share exchange allotment following the acquisition of Zaim as a wholly owned subsidiary(JPY MM)11

Consolidated Financial Results – Profit Analysis
Operating profit

1,882 JPY MM

Main items
Non-operating P/L, 

extraordinary P/L-201 JPY MM

Net profit attributable 

Operating ÷to owners of profitparentProfit before  
income taxes

1,680 JPY MM

Effective Total income taxes

29.1 %

tax rate-888 JPY MM 52.8 %Net profit

792 JPY MM
Net profit attributable  to owners of parent

548 JPY MM

Net profit attributable to non-controlling interests-244 JPY MM

Payment Fees
Equity method investment losses
Impairment losses-73 JPY MM-63 JPY MM-67 JPY MM

Main reasons for difference from normal  effective statutory tax rate (34.6%)
Increase in taxable income due to +649 JYP MM
amortization of goodwill (non-deductible)
Increase in taxable income due toequity method investment losses+63 JYP MM

Companies in scope
HyAS & Co. Inc.,KIDS STAR Inc., etc.

12Consolidated Financial Results – Cash Flow Analysis
Income taxes paid (net)534 JPY MM

Investment for software development  and subsidiary acquisition, etc. 

(net cash provided by investment activities)

Decrease in working capital, etc.  

2,363 JPY MMEBITDA

2,926 JPY MM

Net cash provided byoperating activities

4,754 JPY MM

868 JPY MM

Change in borrowings (net)1,269 JPY MM
etc.

Purchase of treasury shares

465 JPY MM

Cash at end of period

9,369 JPY MM
Cash at beginning of period

7,238 JPY MM

FY2023.9

13Group Business Foundations (as of Sep. 30, 2023)

Users
Support users’ activities through three contact points with them

Media

SaaS

Tool / Agent

Maximize contact points with users

Indirectly provide services to users through support for business operators

Monthly active users *1

Contract accounts *2

Provide useful tools for daily life and specialized services for life events
Services provided 

Total tool downloads *3
annually *4

Approx. 39 million

Approx. 60,100

Approx. 30million Approx. 4,400*1: Total users as of the end of Sep. 2023 for the main media and tools in each domain (browser or device base). Based on simple aggregate, without taking into consideration users of multiple media or tools.

*2: Total as of the end of Sep. 2023 of stores using “Tokubai” (paid and unpaid), stores posting ads and using tools and services to support operations offered by Kufu Sumai Inc., member companies for services provided by HyAS & Co. Inc. Group,  and trading partner venues of anymarry Co., Ltd.

*3: Total cumulative apps downloaded as of the end of Sep. 2023 for “Tokubai,” “Zaim,” “Gokko Land,” and “RETRIP.”*4: Total of number of services offered over the past one year in the Home domain (ex. HyAS & Co. Inc. Group), and estimate of annual wedding ceremonies produces by anymarry Co., Ltd. as of Sep. 2023.

14

Group-wide Media Monthly Active Users
Approximately 39 million on a simple aggregate base at the end of September 2023
In line with the change in the media strategy, the business of lifestyle information media "Kufu Live!"  was transferred to baby calendar Inc. (TSE Growth Market : 7363) from November 14, 2023.
55

approx.

39 million

Monthly active users *

45

35

25

15
(Million users)

Mar.
2019

Jun.

Sep.

Des.

Mar.
2020

Jun.

Sep.

Dec.

Mar. Jun.
2021

Sep.

Dec.

Mar. Jun.
2022

Sep.

* Total users for the main media and tools in each of the domains (browser or device base). Users of “RETRIP” have been added up from Dec. 2022. 

Based on simple aggregate, without taking into consideration users of multiple media or tools.

Dec.

Mar. Jun.
2023

Sep.

15

Strategy Shift from Media-Focused to Tool-Focused

In order to strengthen user contact points, 
shifting our focus from "media" to "tools useful in daily life"

Creating user’s actions that lead to solutions to issues in daily life

"Tools useful in daily life"
shopping

Household budget

Parenting
Going out, etc.

Change the key indicator to "Number of core users*"*Core users are excluding light usage such as reading articles, we measure the users of services or functions that lead to daily (weekly) actions, such as the "shopping function" and "household budget function", etc.

16Group-wide Contract Accounts
The number of contract accounts decreased

64,000

Number of contract accounts *62,000Other

61,01260,000-141

58,000Tokubaisubscriber
stores56,00060,127-732-12Tokubai non-subscriber
stores54,00052,00050,000Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.
2019
2020
2021
2022
2023

Jun.
2023

Sep.
2023

* Total of stores using “Tokubai” (paid and unpaid; excluding accounts linked with initiatives with approx. 16,000 convenience stores), stores posting ads and using tool services to support operations   offered by Kufu Sumai Inc., member companies for services provided by HyAS & Co. Inc. Group (added for OM Solar, Inc. in and after June 2023), and trading partner venues of anymarry Co., Ltd.

17

Group-wide Tool Downloads and Services Provided Annually
Total tool downloads and services provided annually increased steadily

Total tool downloads *1
35

approx.

30 million

30

Services provided annually *2
5,000
4,500
3,500

20

3,000
2,500

15

2,000
1,500

10

1,000

5
(Million tools)

4,400

4,000

25

0

approx.

500
Sep. Dec. Mar.
2021

2022

Jun.

Sep.

Dec

Mar.
2023

Jun.

Sep.

0
(services)

Sep. Dec Mar. Jun.
2021
2022

Sep.

Dec

Mar. Jun.
2023

Sep.

*1: Total cumulative apps downloaded for "Tokubai," "Zaim," "Gokko Land," and "RETRIP (in and after March 2023)." Some of the aggregation methods revised in June 2023 (retrospectively corrected for past data).

*2: Total of number of services offereed over the past one year in the Home domain (ex. HyAS & Co. Inc. Group), and estimate of annual wedding ceremonies produced by anymarry Co., Ltd. at each point in time.

18

Group Management Target by FY2026.9 (5th Term)

Group EBITDA*1

10 billion yen
50 %Daily Life Business

Daily and community life domain

Ratios of main business segments *3

*2

50 %

Life Event Business
Marriage domain

Home domain *4*1: EBITDA (operating profit + depreciation and amortization)*2: Target to be achieved through organic growth of each group companies 

EBITDA plus costs for stock-related compensation upon the resolution to issue the 8th and the 9th share acquisition rights (stock options with charge)*3: Ratio of each business segment based on the sum of the Daily Life Business and the Life Event Business. 

In September 2022, some of the business segments and domains were revised. The composition ratio was calculated based on the revised amounts. 

*4: The home domain includes HyAS & Co. Inc.

19

2. Directions for FY2024.9

20

Focus Areas for FY2024.9

Promoting the use of AX（AI eXperience, AI Transformation）

Enhancement of action proposals and action creation for users

Promotion of integration within the Group21

Promoting the Use of AX（AI eXperience, AI Transformation）
Promoting the use of AI and data solutions in both the business and the organization of the entire group
Example of the flyer heat map of Tokubai
Visualize the most common parts of flyers and analyze user behavior patterns

Business・Maximizing the flyer effect

Examples of using AI to improve business efficiency
Marriage：Media (Minnano Wedding)

Function to create sample replies for wedding hall staff torespond to reviews (approximately 400 ceremony venues
have already been used since June 2023)

・Hypothesis and verification in flyer production

・ Towards automatic flyer generation  with AI

Home：Media (O-ucchino)Creation of transaction case articles using AI (about 3 times
production efficiency)

Promoting the use of AI within the group under the leadership of the AX Division, 

w
hich
w
as
established
in
the
K
ufu
AI
S
tudio
Organization
・Training of data scientists (promotion of career transition, holding of study sessions, etc.)

・Promoting the use of AI in sales and recruitment activities (holding workshops for employees, setting up consultation desks, etc.)

22Enhancement of Action Proposals and Action Creation for Users
Centered on Kufu AI Studio, aggregate and analyze user data accumulated by each service in the group.

Enhancing our action proposals to users by developing services using AI.

Aiming to create user’s actions both online and offline

Example of service "Tokubai AI Planner" (released in October)・Development and provision of services using AI to provide a familiar experience for people

・Displaying special sales at nearby stores according to recipes✓ Introduce your favorite recipes by "just selecting the answer to the question" 

without entering text

✓ Display special sales at nearby stores according to recipes to support great deals

23Promotion of Integration within the GroupIn order to maximize user contact points by providing tools that are useful in daily life, promote brand integration, service ID integration, and organizational integration within the Group.

Users
Providing tools useful in daily life
Daily and community life domain
・Promote brand integration and increase awareness of each tool・Promote service ID integration and improve convenience and functionality
Promoting the accumulation and utilization of original data

Home domain

Marriage domain

24

3. Business Overview by Segment

25Direction

Becoming No.1 service

in all businesses provided by Kufu Company Inc. Group, 
by providing one-stop online and offline services
Shopping

Overwhelmingly No.1 in the number of registered stores & users  in 3 years

Home

No.1 in the number of custom housing constructions in 5 years

MarriageNo.1 in the number of wedding creations in 5 years
26Daily Life Business

27

Daily Life Business – Financial Results – Quarterly Trends
The Tokubai business maintained sales growth but the growth rate was sluggis
Zaim merged with Da Vinci Studio and changed its trade name to Kufu AI Studio, and started recording 
its results from July to September.

1,200

1,157

SHIZUOKA ONLINEKIDS STARNet sales
Kufu AI Studio(formerly Zaim)
Locoguide 

JPY MM

Operating profit

EBITDA500(incl. sales of former Kufu Lifestyle)

1,000

202

400

800

JPY MM

245

JPY MM

300

600
200

400

100

200
0
(JPY MM)

Jul.Sep.
2021

Oct.Dec

Jan.Mar2022

Apr.Jun.

Jul.Sep.

Oct.Dec

Jan.Mar2023

Apr.Jun.
*1

Jul.Sep.
*2

0(JPY MM)

Jul.Sep.
2021

Oct.-

Dec

Jan.Mar2022

Apr.Jun.

Jul.Sep.

Oct.- 

Dec

*1："Ietate" business run by SHIZUOKA ONLINE Co. LTD, was succeeded by Kufu Sumai Inc, and its segment was changed to the life event business on April 1, 2023.

*2：Da Vinci Studio Co., Ltd. merged into Zaim Inc., and Zaim Inc. changed its name to Kufu AI Studio Inc. on July 1, 2023.

Jan.- 

Mar
2023

Apr.- 

Jun.
*1Jul.- 

Sep.
*2

28

Daily and Community Life Domain – Monthly Active Users

The inflow of users on "Kufu Live!" decreased partly due to a changes in search engine algorithms

Monthly active users *50
Tokubai News

Tokubai

Kufu Live!

Other

45
40
35
30
25
20
15
10
5
0
Mar.

(Million users)

2021

Jun.

Sep.

Dec.

Mar.
2022

Jun.

Sep.

Dec.

Mar.

Jun.

Sep.

2023

* Total users for the main media and tools in the daily and community life domain (browser or device base). Based on simple aggregate, without taking into consideration users of multiple media or tools.

29

Number of Subscriber Stores for Tokubai Services and Average Unit Price *As of the end of September 2023, there were 38,225 subscriber stores (Stores with fixed price contracts were down  
2.6 % YoY to 29,754
While it was difficult to acquire fixed price contract stores, average unit prices gradually increased
Subscriber stores
Average unit prices at fixed price contract stores
Fixed price contract stores

Pay-for-performance stores

4,800

40,0004,600

30,00020,00010,0000(Stores)

5,000-2.6% YoY

29,754 stores

4,400
4,200
4,000

Sep. Dec Mar. Jun. Sep. Dec Mar. Jun. Sep. Dec Mar. Jun. Sep.
2020 2021
2022
2023

3,800

(JPY)

Sep. Dec Mar. Jun. Sep. Dec Mar. Jun Sep. Dec Mar. Jun Sep.
2020

2021

* The number of subscriber stores and the average unit prices do not include the initiative with approximately 16,000 convenience stores.

2022

2023

30

Status of Tokubai Registered Stores in the Overall Target Market

Approximately 190,000 stores have been registered, accounting for 8.2% of the total target market in September 202
The number of registered stores in the retail category is about 160,000, with the market coverage rate of 18.1%.

Total target market：Approximately 2.3 million stores *End of September 2023：Approximately 188,400 stores（8.2%）

Hairdressing & Cosmetology 249,000 storesapprox.700 stores 
Retail Food & Beverage 

Real Estate 880,000 stores

555,000 stores

345,000 storesapprox.159,600 stores 

approx.

（18.1%）

21,200 stores （3.8%）

approx.

0 stores （0.0%）（0.3%）

Massage

Tutoring 

85,000 stores

School  

approx. 1,300 stores 

53,000 store

approx. 1,500 stores （2.9%）（1.5%）

Repair 77,000 stores

Dry cleaning 

approx. 1,400 stores 

38,000 store（3.6%）

Sports Facilities  approx. 2,500 stores 

19,000 store（12.9%）

approx. 100 stores （0.1%）* Ministry of Internal Affairs and Communications “Reiwa 3rd Year Economic Census”

31

Growth Cycle of Tokubai Service
For users: Improvement information comprehensiveness and usability to increase user satisfactio
For stores: Contributing to customer attraction, data analysis, and business improvement  
to increase the satisfaction of partner stores

Improve information comprehensiveness
Provide data analysis  and business improvement  in stores
Lead to increased store satisfaction

Lead to increased user satisfaction

Enhance usability （Searchability・Individuality）

Attract more customers to stores

32

Priority Themes of Tokubai Service (for Users)
Overwhelmingly No. 1 in the number of users in 3 years

・Prioritize the coverage of the three major retail sectors

Improve information (supermarkets, drug stores, and home centers)

comprehensiveness ・The medium and long term goals is to cover approximately 2.3 million stores nationwide, including non-retail stores

Searchability

Individuality (Personalize)

・Improve the search function and design (UI/UX)

・Utilize AI to analyze user behavioral data and  ・Promote the introduction of function, such as  provide information optimized for each user

comparison, recommendation, and memo, etc.

33

Priority Themes of Tokubai Service (for Stores)
Overwhelmingly No. 1 in the number of registered stores in 3 years
Promote new contracts in the three major retail sectors and achieve a 100% coverage rate
For stores that are concerned about cost, offer a "free plan" with limited function
For stores that are concerned about the hassle of posting flyers, offer a "posting agency service"

Provision of paid services

Attracting customers

Analysis

Business improvement

・Competitive analysis, user trend  
analysis, etc.

・Understand customer attributes  by acquiring IDs and utilizing AI

・Provide the knowledge from  
the Retail Research Institute・Cooperate with Kufu Geodata   ・Support store operation such as  inventory management, shift  management, recruitment, SNS, etc.

・Introduce UX to use without manual(location information) and Zaim   (household budget)34

Life Event Business

35Home Domain (Ex. HyAS) Business – Financial Results *1 – Quarterly Trends
Sales of SaaS tools remained steady, purchase and resale services promoted inventory reductio
Services for high-net-worth individuals contributed by domestic projects and drove profit generation from July to September.
1,200

Ietate *3Services for high-net-worth individuals
Purchase and resale services + brokerage services
Media+SaaS

Operating profit

Net sales *2

EBITDA

1,000
800
600
400
200
0
(JPY MM)

Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.Sep. Dec. Mar Jun. Sep. Dec. Mar Jun. Sep.
2021
2022
2023

(JPY MM)

Jul.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.Sep. Dec. Mar Jun. Sep. Dec. Mar Jun. Sep.
2021
2022
2023

*1: The simple aggregate of Kufu Sumai Inc. and SSI Corporation (includes some intragroup transactions). O-uccino, Inc. and Ouchino Kufu Co., Ltd. were integrated into Kufu Intermediate Holding Company Inc. which was renamed as Kufu Sumai Inc.  
as of October 1, 2022. 

*2: Services for high-net-worth individuals show sales of SSI Corporation, and others show sales of Kufu Sumai Inc. For net sales in September 2022 or before, Media + SaaS represents sales of former O-uccino, Inc. and purchase and resale services +  
brokerage services represents results of former Ouchino Kufu Co., Ltd.

*3: Local housing information media "Ietate" and housing counseling services "Ietate Sodan Counter"（these businesses were taken over from SHIZUOKAONLINE CO. LTD. to Kufu Sumai Inc. on April 1, 2023）

36

Inventory Status in Purchase and Resale Service Business

Gross margin in the Jul.-Sep. quarter was 2.1% (3.1% in Apr.-Jun.), and inventory turnover (days)* was 168 days as of the end of September (204 days as of the end of June)

Inventory turnover days

Inventory (amount)
2,000

0-100day
101-180day

80

181 day+
Rental
1,500

60

1,000

40

500

20

0

0

( JPY MM)

Sep.
2021

Dec

Mar.
2022

Jun.

Sep.

Dec

Mar.
2023

Jun.

Sep.

（Properties）

Sep.
2021

Dec

Mar.
2022

Jun.

Sep.

Dec

Mar.

Jun.

Sep.

2023

* Inventory turnover (days) = Average inventory amount / amount of property sales (ex. amount for rental properties. Amount of property sales were calculated on a pro rata basis for the quarter)37

HyAS & Co. Inc. Consolidated Financial Results – Quarterly Trends
The growth of new orders in “R + house,” a core business of the consulting business, was stagnant.  
Promoted “model house construction support” and other activities for member companie
In the construction business, the delivery schedule of houses was concentrated in the fourth quarter(July-September), but the delivery of some houses was delayed in the next fiscal year
2,500

Net sales

2,088
JPY MM

300

Operating profit

238

JPY MM

250

2,000

200

1,500

150
1,000

100

500

50

0

0

(JPY MM)

Aug.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.Sep.*1 Dec. Mar. Jun. Sep. Dec. Mar.*2 Jun. Sep.
2021
2022
2023

(JPY MM)

Aug.- Oct.- Jan.- Apr.- Jul.- Oct.- Jan.- Apr.- Jul.Sep.*1 Dec. Mar. Jun. Sep. Dec. Mar.*2 Jun. Sep.
2021
2022
2023

*1: Results for August 1, 2021, to September 30, 2021 (two-month period), owing to irregular accounting period caused by change of accounting period.

*2: Profit (loss) of OM Solar, Inc. was consolidated starting from Jan.-Mar. 2023.

38

Decied to Make HyAS & Co. Inc. a Wholly Owned Subsidiary  and Acquire Treasury Shares
Signed a share exchange agreement to make HyAS & Co. Inc. a wholly owned subsidiary on November 14, 202
Accelerating development and collaboration within the Home domain
Upcoming Dates
November 14, 2023 (Today) Share exchange agreement signed
December 20, 2023 (TBC)

Ordinary General Meeting of Shareholders（HyAS & Co. Inc.）

anuary 30, 2024 (TBC)

Delisting（HyAS & Co. Inc.）ebruary 1, 2024 (TBC)

Execution of share exchanges

J

F

Kufu Sumai Inc. will be the wholly owning parent company of the share exchange and allocate the shares of Kufu
Company Inc., Kufu Sumai Inc.'s wholly owning parent company, to HyAS & Co. Inc. shareholders ( "Triangular Share
Exchange")
We decided to acquire treasury shares on November 14, to suppress the dilution of shares by issuing new shares  as consideration for the share exchange and secure a flexible capital strategy for the future.
Total number of shares acquiredUp

to 1million shares（1.7% of total number of shares issued, excluding treasury stock）

Total cost of acquisition of shares Up to 100 million yen

Acquisition Period

November 24, 2023 - March 31, 2024

39

Current Situation and Issues of the Custom Housing Market
Many users have not been able to find a construction company who will build a "good and cheap house"

・Of the approximately 140,000 construction companies*1, the top 15 major house builders account for about 30%  of the total number of detached houses sold・The prices offered by major house builders are about 25% higher than those offered by small and medium construction companies

2022

Market size of detached house ：7.2 trillion yen *2
Top 15 Major house builders
Approx. 30% *4

Price comparison between small and medium construction companies  and major house builders at our consultation counter *5

35
30
25
No. of detached  20houses sold *3 
15（Approx. 400,000 units）
Approx. 7% 10
5Small and medium  construction companies 0*1: Ministry of Land, Infrastructure, Transport and Tourism "Current status of licensed construction contractors (the end of March 2023)" 

*2: Estimated by the Group based on the Ministry of Land, Infrastructure, Transport and Tourism's "Housing Starts Statistics (2022)" 

*3: Ministry of Land, Infrastructure, Transport and Tourism "Housing Starts Statistics (2022)" 

*4: Estimated by the Group based on "Monthly TACT" issued by the Housing Industry Research Institute, Inc. in September and October 2022

（JPY MM）+ 6 million yen
1.25 times

Small and medium  construction companies

Major house builders*5: Estimated by the Group based on the case of the most recent year’s contract at our consultation counter

40

Expand Consultation Services Nationwide
Expanding consultation services from Shizuoka to nationwide,

to be No. 1 in the number of custom housing constructions in 5 years
Overview of Existing Consultation Services
A total of 6 stores in Shizuoka, Yamanashi, and Aichi grew by 44% YoY
Support from life plan consultation to chooing a construction company, putting users firs
Introduce not only major house builders but also local construction companies

Plant to expand the consultation services nationwide over the next 4 years 
and improve operational efficiency by utilizing AI

41

Support Users through the Support of Construction Companies
Supporting users and construction companies by strengthening housing-related businesses
Sales Tools
Present condition

Future development

Many construction companies lack  
the resources to attract and serve  users, and DX is not progressing

Function to create brochure
Functions of land introductio
Functions to follow useres

Land introduction

Review of insurance

The biggest bottleneck for users/construction companies 
is "land search"

Life plan consultations areprovided during custom
housing consultations, but
improvements are notproposed

Land introduction in cooperation with real estate agent
C2C land transactions

Supporting insurance reviews  in response to changes in life stage, such as home purchases

We have added a new land introduction function for custom housing  
to our SaaS tools in October, 2023

42

Marriage Domain – Financial Results – Quarterly Trends
The number of paid advertising venues continued to decrease in FY2023.9, and the entire performance of the domain

was lower than the previous year due to the deterioration in profitability of the media business
The number of weddings held in Wedding Producing business remained sluggish but orders are recovering toward profitability in FY2024.9
Operating profit
Net sales
EBITDA
1,250

Production and dress sales
Media

1000

250
200
150

750

100
500

50

250
0
(JPY MM）

0
Oct.-
 Jan.-

Dec. Mar.

2019 2020
Pre-COVID-19 pandemic

Jul.- 
 Oct.- Jan.-
 Apr.-
 Jul.-  Oct.- Jan.-
 Apr.-
 Jul.- Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.

2021
2022
COVID-19 pandemic

2023-50(JPY MM）

Oct.-
 Jan.-

Dec. Mar.

2019 2020
Pre-COVID-19 pandemic

Jul.- 
 Oct.- Jan.-
 Apr.-
 Jul.-  Oct.- Jan.-
 Apr.-
 Jul.- Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.

2021
2022
COVID-19 pandemic

2023

43

Expanding Needs for Small Weddings after the COVID-19 Pandemic
After the COVID-19 pandemic, the whole marriage market has shrunk,  

but the proportion of small weddings has increased
Marriage-related market size *1 and composition ratio by size of wedding events *2
2018
Market size：2.4 trillion yen
Photography only5%

Not implemented

19%

Number of married couples

Approx. 590,000 More than 60 guests

34%

2022
Market size（Prospects）：1.8 trillion yen

Less than 60 guests

42%

Not implemented

21%

Photography only

10%

Number of married couples

Approx. 500,000 More than 60 guests

20%

Less than 60 guests

49%*1: Yano Research Institute Ltd., "Survey on the Bridal Market (2023)" 

*2: Our estimates based on the results of the Ministry of Health, Labour and Welfare's "Overview of Vital Statistics (Confirmed Numbers) for 2022", Recruit Co., Ltd.'s "Marriage Comprehensive
Awareness Survey 2019" and "Marriage Comprehensive Awareness Survey 2023" (according to Recruit Bridal Research Institute), and Recruit Co., Ltd.'s "Zexy Marriage Trend Survey 2023"

44

The Flow of User Decisions and the Diversification of User Behavior
The COVID-19 pandemic has led to rapid changes in the flow of user decisions and the diversification of user behavior

Previously standardized decision flow
Find a  
wedding venue

Go to Bridal Fair

Decide on awedding venue

Choose a dress and photographer  Wedding ceremony
at the wedding  
venue partners

Collecting information provided by wedding venues  from wedding information magazines and websites

New decision flow led by diversifying user needs
Think about whether to have a wedding  
ceremony

Along with searching 
for a wedding venue,  search for various  
wedding styles

Decide on a wedding venue, photo studio,

and production company

Collecting information mainly from posts by users on SNS  
and the Internet

Bring in dresses  or photographers 
who are not affiliated  Wedding ceremony
with the wedding  
venue partners
45

Our Competitive Advantage in the Small and Low-Cost Wedding Markets
With the strength of accumulated data (word of mouth, expense statements, case studies), combine AI technology and real services, such as consultation and produce services

No. 1 in the number of wedding creations in 5 years

composition ratio by size of wedding events *Photography only10%

Not implemented

21%

Proposals for various wedding styles based on word of mouths,
expense statements, case studies, etc., using AI
Wide selection of small venues such as hotels, restaurants,  shrines, etc.

2022

Number of married couples

Approx. 500,000 More than 60 guests

20%

Our Competitive Advantage

Less than 60 guests

49%

Respond to the needs for small and low-cost weddings 
through the producing business
Meet the growing needs for bringing dresses and photo weddings* Our estimates based on the results of the Ministry of Health, Labour and Welfare's "Overview of Vital Statistics (Confirmed Numbers) for 2022", Recruit Co., Ltd.'s "Marriage Comprehensive
Awareness Survey 2019" and "Marriage Comprehensive Awareness Survey 2023" (according to Recruit Bridal Research Institute), and Recruit Co., Ltd.'s "Zexy Marriage Trend Survey 2023"

46

Disclaimer
Important notes

This document contains forward-looking statements. These forward-looking statements are based only on the information made available to  
Kufu Company as of the date this document was prepared. These statements are not guarantees of future results and involve risks and uncertainties.
Accordingly, the actual results may differ materially from those projected herein depending on operating environment and other factors. 

Actual results could be affected by, but are not limited to, domestic and international economic conditions and industry trends surrounding  
Kufu Company.

Kufu Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,  future events or otherwise. 

Information that is not related to Kufu Company is derived from publicly available information. Accordingly, Kufu Company does not verify nor
guarantee the accuracy, completeness and correctness of such information.

=Inquiries=
IR Representative, Corporate Communications Department

E-mail : ir@kufu.co.jp Website : https://kufu.company/en47