internet infinity INC.

Business Details

Comprises three businesses: franchise development of the short-time rehabilitation-type day care service "Record Book" (Record Book Business); silver marketing support and work-care balance support utilizing a care manager network, and development and sale of long-term care insurance billing software, among others (DX Solutions Business); and welfare equipment rental and home renovation, among others (Active Life Business). In April 2025, Cent Works Co., Ltd. was made a subsidiary, strengthening the DX Solutions Business for mid-sized care providers.

Recent Overview

Cent Works subsidiary made sales grow 19.1% and operating profit grow 30.6%

In April 2025, Cent Works Co., Ltd. became a wholly owned subsidiary, significantly expanding the DX Solutions Business. Segment sales were ¥4,232 million (up 19.1% year on year), and operating profit was ¥686 million (up 30.6% year on year). The Record Book Business expanded to a total of 242 stores (22 directly-operated, 201 franchised, and 19 Meitetsu Record Book locations), with the utilization rate at existing stores also rising. On the other hand, a goodwill impairment loss of ¥12 million associated with Shoko Giken's structural reforms was recorded as an extraordinary loss. A merger between Fullcare and Shoko Giken is planned for June 2026, advancing the consolidation of management resources in the Active Life Business.

Key Products

Growth Drivers

• Continued expansion of the Record Book FC network (242 stores at the end of FY2026 (ending March 2026), up 6 stores from the prior year-end) and increased sales per directly-operated store and royalty income driven by rising utilization rates at existing stores
• Full-scale rollout of the DX Solutions Business for mid-sized care providers, starting with the Cent Works subsidiary
• Continued steady order growth in work-care balance support services
• Accelerating demand for long-term care DX ahead of the 2027 revision of the long-term care insurance system (growing need for operational efficiency through AI and ICT utilization)
• Renewed expansion of silver marketing support leveraging a network of over 110,000 care managers
• Consolidation of management resources and strengthened earnings power in the Active Life Business through the merger of Fullcare and Shoko Giken

Risks

• Continued profit pressure from goodwill amortization (¥65 million this fiscal year) and one-time PMI expenses associated with the Cent Works subsidiary
• A structural downward factor on sales from equal reductions in sales and cost of sales due to rental plan changes upon expiration of five-year contracts with franchise members
• Rising store operating costs and increasing difficulty in maintaining utilization rates due to a shortage of long-term care personnel
• Long-term care insurance system revision risk (such as reductions in service fee rates in the 2027 revision, which would directly affect the earnings of both directly-operated stores and FC members)
• PMI risk and unexpected costs arising in the merger and integration process of Fullcare and Shoko Giken
• Increased complexity in understanding actual segment profit due to a rise in company-wide cost allocation (adjustment amount) (¥549 million this fiscal year, versus ¥463 million in the prior year)