Broad-Minded Co.,Ltd.

Business Details

The company engages in financial planning (FP) consulting services covering individual insurance, mortgage loans, asset management, retirement asset formation, and corporate financial planning. Its main customer base is families in their 20s to 40s, and the business structure builds revenue from both first-year fees (flow) and continuing fees (stock) through stable prospective customer acquisition from business alliance partners and consulting starting from life planning. From the current consolidated fiscal year, the Real Estate Sales Business became an independent segment, transitioning to a two-segment structure.

Recent Overview

New consultation inquiries hit a record high for the second consecutive period, with segment profit up 37.9% year on year on growing fee income

More than 30 new graduates hired in April 2025 began working as consultants, strengthening the consultation reception system, and as a result new consultation inquiries reached a record high for the second consecutive period. Fee income grew, centered on the life insurance and financial instruments intermediary areas, achieving segment revenue of ¥4,811 million (up 1.2% year on year) and segment profit of ¥601 million (up 37.9% year on year). Meanwhile, as part of business selection and concentration, the company sold the Money Pro Shop business. Development of the AI agent system to improve productivity and operational efficiency also continues to be promoted. From this period, the Real Estate Sales Business became an independent segment, transitioning to a two-segment structure.

Key Products

Growth Drivers

• Increase in the number of consultations due to growing household anxiety amid the economic environment, price increases, and interest rate fluctuations (new consultation inquiries reached a record high for the second consecutive period)
• Expansion of fee income in the life insurance and financial instruments intermediary areas against the backdrop of growing social interest in asset formation
• More than 30 new graduates hired in April 2025 began working as consultants, strengthening the consultation reception system of the online sales organization
• Suppression of customer acquisition costs and revenue stability through stable supply of prospective customers from business alliance partners
• Promotion of employee productivity improvement and operational efficiency through the development of the AI agent system
• Creation of synergies with the core business and new revenue sources through the development of new services targeting new BtoB markets

Risks

• Revenue dependence on specific customers: MetLife Insurance accounts for approximately 38.2% of Financial Partner Business revenue (¥1,837 million out of ¥4,811 million), remaining at a high level
• Foreign exchange fluctuation risk: Since agency commissions for foreign-currency-denominated insurance contracts are affected by exchange rates, the revenue recognition standard was changed (retrospectively applied), but the risk of revenue fluctuation due to exchange rate movements continues
• Talent acquisition and development risk: Recruitment, retention, and training of consultants could constrain business expansion
• Upfront burden of system and digital investment: Investments such as AI agent development may put pressure on profits in the short term
• The earnings forecast for FY2027 (ending March 2027) projects revenue of ¥5,096 million (down 3.6% year on year) and operating profit of ¥480 million (down 23.0% year on year), a decrease in both revenue and profit, and there is uncertainty regarding the certainty of revenue recovery, including the impact of deal carryover in the Real Estate Sales Business