Kamakura Shinsho Q2 FY2027 Earnings Report: Record-Highs Across All Key Metrics, Driven by Rapid Growth in Nursing Care, Public-Private Partnerships, and Structural Reforms to Establish a 'Shukatsu' Infrastructure

1. Q2 FY2027 Earnings Highlights: Record-Highs Achieved Across All Key Metrics

Kamakura Shinsho, Ltd. delivered a robust performance for the second quarter (cumulative) of the fiscal year ending January 2027, setting record highs across all major financial indicators , including net sales, operating profit, EBITDA, and profit attributable to owners of the parent.

As shown in the slide above, the cumulative Q2 consolidated net sales reached 4,596 million yen (+14.4% YoY) , consolidated operating profit was 799 million yen (+35.3% YoY) , EBITDA stood at 995 million yen (+37.0% YoY) , and profit attributable to owners of the parent was 531 million yen (+38.4% YoY) , demonstrating significant profit growth that substantially outpaced the revenue growth rate.

In terms of profitability, the consolidated operating profit margin improved by 2.7 percentage points, rising from 14.7% in the same period last year to 17.4% . This strong performance was driven by organic growth in the company's traditional core 'Shukatsu' (end-of-life planning) business, the rapid expansion of new and high-growth areas such as Nursing Care (+59.2% YoY) and Public-Private Partnerships (+34.1% YoY) , and a dramatic 77.4% YoY increase in cross-use (multiple service utilization and conversion) , a key company-wide strategic focus.

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2. Segment Performance Trends: Surge in Nursing Care and Public-Private Partnerships, Higher Unit Prices in Funeral Services

The breakdown of cumulative Q2 net sales by business segment and year-on-year comparisons are as follows:

• Grave Business : Net sales of 1,411 million yen (+11.3% YoY)
• Funeral Business : Net sales of 878 million yen (+20.8% YoY)
• Public-Private Partnership Business : Net sales of 630 million yen (+34.1% YoY)
• Nursing Care Business : Net sales of 537 million yen (+59.2% YoY)
• Small-Amount Short-Term Insurance Business : Net sales of 489 million yen (+4.9% YoY)
• Asset Management Business (Inheritance, etc.) : Net sales of 396 million yen (+3.0% YoY)
• Other : Net sales of 252 million yen (-34.0% YoY)

Detailed Business Trends

1. Rapid Expansion of the Nursing Care Business The Nursing Care business benefited from steady web traffic and the strengthening of offline sales structures . On a standalone Q2 basis, net sales reached 271 million yen (+71.8% YoY) , with operating profit of 33 million yen (a turnaround from a loss of 40 million yen in the same period last year) . This high growth was driven by a significant 30.5% YoY increase in the number of conversions.

2. Increased Profitability in Public-Private Partnerships The Public-Private Partnership business saw its Q2 standalone net sales double to 402 million yen (+51.1% YoY) , with business profit reaching 169 million yen (+101.3% YoY) . Partnerships with local governments across Japan, including designated cities and special wards, have progressed, bringing the total number of partner municipalities to 543 .

3. Higher Unit Prices and Profitability in the Funeral Business The Funeral business achieved Q2 standalone net sales of 424 million yen (+20.9% YoY) and business profit of 218 million yen (+36.9% YoY) . The conversion unit price reached a record high of 144,807 yen (+12.8% YoY) , contributing significantly to improved profit margins.

4. Steady Performance in Grave and Inheritance Businesses The Grave business maintained optimized advertising spend, with Q2 standalone net sales of 736 million yen (+9.3% YoY) . The Inheritance (Asset Management) business also showed signs of recovery in both referrals and conversions, maintaining high-level conversion unit prices.

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3. Cost Structure and Solid Financial Foundation

Total expenses for the second quarter stood at 1,897 million yen (730 million yen in personnel costs, 458 million yen in advertising, 102 million yen in depreciation, and 605 million yen in other expenses), reflecting appropriate cost control while continuing growth investments (such as human capital) .

Financially, total assets as of the end of July 2026 were 7,711 million yen , with net assets of 6,078 million yen . Although current assets and cash/deposits decreased due to dividend payments, the company maintains an extremely solid and healthy financial position with an equity ratio of 75.1% , consistent with the end of the previous fiscal year.

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4. Progress Against Full-Year Forecasts and Outlook

The full-year consolidated earnings forecast for the fiscal year ending January 2027 remains unchanged:

• Net Sales : 10,500 million yen (+25.9% YoY) [Progress rate: 43.8%]
• Operating Profit : 1,700 million yen (+25.8% YoY on a real basis) [Progress rate: 47.0%]
• EBITDA : 2,075 million yen (+25.5% YoY) [Progress rate: 48.0%]

Profitability metrics are progressing ahead of plan, with growth rates (Operating Profit +35.3% YoY) outpacing the full-year forecast. For the second half, the company expects to achieve its full-year targets through organic growth in existing businesses, the full-scale implementation of initiatives based on the capital and business alliance with SOMPO Holdings , other corporate alliances, and the further acceleration of cross-use.

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5. Growth Story: Mid-Term Management Plan (FY2028) and Long-Term Vision (2035)

Kamakura Shinsho has set a long-term vision to establish itself as a 'Shukatsu Infrastructure' that supports the lives of citizens by 2035 ( net sales of over 50 billion yen and operating profit of over 10 billion yen ). The new mid-term management plan (FY2028), serving as a milestone, targets net sales of 12.7 billion yen, operating profit of 2.6 billion yen (20.5% operating margin), and EBITDA of 3.0 billion yen .

As shown in the strategy slide above, the company is pursuing a strategy that combines three growth drivers to achieve these targets: 'Strengthening Cross-Use,' 'Diversifying Customer Acquisition Channels,' and 'Expanding Services.'

1. Strengthening Cross-Use : Accumulating common data through system replacement and enhancing cross-sectional marketing using AI.
2. Diversifying Customer Acquisition Channels : Moving beyond traditional web (online) acquisition to include local government partnerships and offline sales functions, diversifying customer touchpoints.
3. Expanding Services : Extending the service lineup from the 'Heart' (memorial/funeral) domain to the 'Money' (inheritance) domain, and the 'Body/Active' (nursing care/health) domain to maximize Customer Lifetime Value (LTV).

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6. Strategic Progress: Accelerating Local Government Partnerships and Nursing Care Offline Sales

The execution of the strategic framework is clearly reflected in recent KPI trends.

As shown in the left graph above, the number of partner municipalities has grown steadily to 543 , with the introduction of end-of-life support for residents (ending notes, Shukatsu handbooks, bereavement procedure navigators, etc.). This robust network serves as an offline acquisition foundation with extremely high barriers to entry.

Furthermore, as shown on the right, the Nursing Care business has strengthened its offline sales force, with offline-originated sales accounting for 42.1% (100 million yen in Q2) of total nursing care referral revenue . By combining community-based face-to-face consultations and facility alliances rather than relying solely on web traffic, the company has achieved a dramatic expansion in conversion rates and revenue scale.

Additionally, cross-use revenue reached 164 million yen in Q2 (+69.3% YoY) , rapidly increasing its share toward the target of approximately 13% of consolidated net sales for the fiscal year ending January 2028.

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7. Productivity, AI-Native Operations, and Shareholder Return Policy

Promoting AI-Native Development and Operations

In the development department, AI agents are integrated into every stage—from requirements definition to coding, review, and deployment—dramatically shortening development lead times. In business operations, the company utilizes AI for sales performance analysis (approx. 10.2 million yen annual cost reduction), competitive and advertising analysis (approx. 1.7 million yen annual cost reduction), and automated call transcription and summarization. This combines thorough operational efficiency with improved data quality , building a structure that supports business expansion with a lean, elite team.

Shareholder Return Policy and Dividend Plan

Kamakura Shinsho's basic policy is to target a 'dividend payout ratio of 100% or a dividend of 20 yen per share, whichever is lower.' The annual dividend forecast for the fiscal year ending January 2027 is 20.00 yen per share (payout ratio of 74.9%) . The company plans to maintain this policy for the fiscal year ending January 2028 while prioritizing growth investments (IT systems, M&A, human capital, etc.).

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Conclusion

Kamakura Shinsho's Q2 FY2027 earnings report confirms high-level growth in both quality and quantity. This is driven by improved profitability in the core memorial domain , the establishment of profitability and rapid growth in the nursing care business , the expansion of the public-private partnership foundation , and the company-wide adoption of cross-use and AI-driven operations .