Summary

As a leader in Japan’s insurance industry, Advance Create operates an insurance agency business that leverages both online and offline channels. Its primary business model combines the online insurance comparison site “Hoken Ichiba” with in-person consulting, creating an environment that offers customers a diverse range of insurance products. In particular, the company is driving the digital transformation of the entire industry through AI-driven operational efficiency improvements and its proprietary IT system, the “Advance Create Cloud Platform,” thereby establishing a framework to respond swiftly to customer needs.The company’s operations are divided into five segments: “Insurance Agency Business,” “ASP Business,” “Media Business,” “Media Rep Business,” and “Reinsurance Business.” The Insurance Agency Business accounts for approximately 70% of total revenue.Recent financial performance has been challenging. For the fiscal year ending September 2025, revenue was 6,608 million yen, a 15.9% decrease from the previous year, and the company recorded an operating loss of 606 million yen. This was influenced by a decline in the number of new client consultations and sluggish advertising spending. The company has formulated a medium-term management plan and is implementing measures aimed at restoring profitability, but a recovery in performance is expected to take time.On the asset side, while liquidity has improved, total liabilities remain high and the equity ratio is low, necessitating an improvement in financial soundness. Cash flow is also tight, with cash flow from operating activities in negative territory, making a review of the funding strategy an urgent priority. Under the medium-term management plan, the company has adopted the vision of “a company that deepens and evolves through people and technology,” promoting the enhancement of sales staff’s proposal capabilities and the utilization of digital tools.The company is also strengthening its ESG initiatives with the aim of achieving sustainable growth. For investors, while signs of a business recovery and the potential for shareholder returns are drawing attention, risk management and adaptation to the competitive environment will be key factors significantly influencing the company’s future. Advance Create is expected to demonstrate a commitment to sustainable growth while addressing these challenges.

1. Summary of Cumulative Results for the Fiscal Year Ending September 2025

Advance Create’s consolidated financial results for the cumulative period ending September 2025 (October 2024–September 2025) showed revenue of 6,608 million yen, a 15.9% decrease from the previous period, and an operating loss of 606 million yen.The primary factors behind the decline in performance were sluggish appointment acquisition and a decrease in the number of new client meetings within the insurance agency business. Additionally, despite the easing of the COVID-19 impact, sluggish advertising spending also had an adverse effect. Looking back over the past few years, while the company achieved revenue of 10,374 million yen in 2023, a decrease of 574 million yen was observed again in 2024.Although the company is implementing measures to expand new technologies and sales channels, it is required to execute strategies that prioritize customer satisfaction, and a recovery in performance is expected to take time. In the income statement for the fiscal year ending September 2025, revenue was 6,608 million yen and the operating loss was 606 million yen; revenue showed a significant decrease from the previous fiscal year’s 7,856 million yen, primarily due to the decline in the number of appointments secured.Operating profit improved by 104 million yen due to cost reductions and a decrease in impairment losses; however, with operating and ordinary losses continuing, the company needs to clarify measures aimed at sustainable growth.On the balance sheet, total assets stood at 10,288 million yen, with a notable increase in current assets. While the current ratio remained within a safe range at 117%, total liabilities remained high at 12,148 million yen, and the equity ratio stood at a mere 5.4%. The cash flow statement showed a negative cash flow from operating activities of 3,904 million yen, indicating a challenging operating environment.In terms of performance metrics, ROE and ROA remain negative, raising questions about the company’s future growth potential. While Advance Create aims to achieve growth through strategic initiatives to recover its performance, investors need to closely monitor future market conditions and the company’s measures.

2. Earnings Outlook for the Fiscal Year Ending September 2025

The earnings forecast for the fiscal year ending September 2025 projects a return to profitability with revenue of 7,950 million yen and an operating profit of 650 million yen. Advance Create is currently reviewing its strategy for the insurance agency business and plans to strengthen initiatives aimed specifically at acquiring new customers. To adapt to changes in the market environment, the company must leverage digital channels and enhance its marketing strategies through social media.Aiming to recover from past performance, the company seeks to increase sales by providing services that prioritize customer satisfaction. In particular, the introduction of the online consultation system “Dynamic OMO” is expected to increase customer touchpoints and enable a rapid response to customer needs.Additionally, the company is moving forward with the introduction of sales support tools utilizing AI technology to improve the productivity of its sales staff. If these measures bear fruit, signs of a recovery in performance are expected; however, a flexible response to intensifying competition and diversifying customer needs is essential. Furthermore, funding measures are being implemented to improve the financial situation, with the goal of resolving the company’s negative equity. This is expected to enhance the company’s credibility and lay the groundwork for shareholder returns.For investors, future performance trends and the progress of these initiatives are key points to monitor closely. Overall, Advance Create is implementing strategic measures aimed at sustainable growth; however, as a recovery in performance may take time, a cautious assessment is required.

3. Medium- to Long-Term Growth Strategy

Advance Create has formulated a mid-term management plan targeting 2030, under the vision of being “a company that deepens and evolves through people and technology.” This plan is built around two strategic pillars: “Strengthening EPC” and “Developing New Technologies and Businesses,” and the company is promoting the enhancement of sales staff’s proposal capabilities and the utilization of digital tools.Specifically, the company is moving forward with the introduction of the online meeting system “Dynamic OMO” and sales training utilizing AI technology, while also aiming to improve its equity ratio and dividend payout ratio. Sustainability is also a key focus, with the company emphasizing its commitment to reducing environmental impact through the adoption of new technologies and the digitization of operations, thereby enhancing corporate credibility.Regarding investment plans, approximately XX million yen has been allocated for capital expenditures and research and development, with particular emphasis on advancing digitalization and AI technology. Plans include the development of the “Advance Create Cloud Platform” and the expansion of the online consultation system’s functionality, which is expected to improve customer satisfaction. Furthermore, as part of the growth strategy for new businesses, the company is prioritizing the development of new insurance products utilizing digital ecosystems and the diversification of customer touchpoints; in particular, social media strategies aimed at acquiring younger customers are expected to be strengthened.In terms of performance metrics, the company aims to increase revenue and the ordinary profit margin, while maintaining a dividend payout ratio of 25% or higher. Regarding risk management, the company must respond flexibly to intensifying competition and industry changes, with a particular emphasis on the ability to anticipate environmental regulations and technological advancements. Advance Create is expected to pursue sustainable growth based on these factors and to present a transparent strategy to investors.

• For the cumulative period ending September 2025, revenue is projected at 6,608 million yen, a 15.9% decrease from the previous period, with an operating loss of 606 million yen; a recovery in performance is expected to take time.
• For the fiscal year ending September 2025, the company forecasts a return to profitability with revenue of 7,950 million yen and an operating profit of 650 million yen. It plans to improve customer satisfaction by reviewing its insurance agency business strategy and leveraging digital channels.
• Advance Create has formulated a mid-term management plan targeting 2030. The company aims to enhance customer satisfaction and maintain a dividend payout ratio of 25% or higher by strengthening its sales capabilities and utilizing digital tools, with a focus on strengthening its EPC (Engineering, Procurement, and Construction) capabilities and developing new technologies and business opportunities.

Business Overview

1. Overview of the Business Model

As a leader in Japan’s insurance industry, Advance Create is a company that provides comprehensive insurance solutions. Its primary business model consists of insurance agency operations that leverage both online and offline channels, with key features including the online insurance comparison site “Insurance Market” and in-person insurance consulting through “Consulting Plaza.” Through these two channels, customers have access to an environment where they can easily compare and purchase a wide variety of insurance products, enabling the company to offer highly convenient options.Furthermore, by strengthening non-face-to-face sales through the online consultation system “Dynamic OMO,” the company has expanded its points of contact with customers and is able to respond quickly to their needs.

The company is also committed to technological innovation, driving operational efficiency through AI-based approaches and proprietary IT systems. In particular, the “Advance Create Cloud Platform” serves as a foundation for promoting collaboration within the industry and improving operational efficiency. This facilitates the digital transformation of the insurance industry as a whole, enabling the company to deliver even more convenient services to customers. Advance Create’s business model aims for sustainable growth by providing information tailored to customer needs.

2. Main Business Segments

Advance Create’s business is primarily divided into five segments: “Insurance Agency Business,” “ASP Business,” “Media Business,” “Media Rep Business,” and “Reinsurance Business.” Each of these segments has distinct revenue streams, enhancing the company’s resilience to market fluctuations. In particular, the Insurance Agency Business accounts for approximately 70% of total revenue and focuses primarily on life and property & casualty insurance.

The ASP Business provides cloud-based services to support business operations and has recently been generating revenue by contributing to the acquisition of new contracts.The Media Business and Media Representation Business are segments that generate advertising revenue; however, due to intensifying competition, they have seen a decline in revenue and require review and strengthening. The Reinsurance Business plays a crucial role in risk diversification, and strategic measures are needed to ensure stable earnings. Therefore, the key challenge moving forward is to pursue overall business synergies while keeping the characteristics of each segment in mind.

3. Market Background and Competitive Environment

The current Japanese insurance market faces numerous challenges, including a declining birthrate and aging population, the advancement of digitalization, and changes in the economic environment. In particular, as the aging society progresses, there is a growing emphasis on healthcare and retirement security, leading to increased demand for life insurance and long-term care insurance products. Furthermore, with the rise of digitalization, consumers are increasingly seeking to purchase insurance online, making it essential for insurance agencies to adapt to this trend.

While Advance Create is working to expand its online market presence through the powerful platform of the “insurance market,” competitors are similarly advancing their digital shifts, intensifying competition. In particular, as emerging companies roll out innovative services to vie for market share, Advance Create must review its marketing strategies and adopt new technologies to maintain its competitive advantage.

Furthermore, as consideration for environmental issues and carbon neutrality initiatives have become mandatory for many companies, it is crucial for Advance Create to pursue sustainable growth while fulfilling its social responsibilities. As the market as a whole evolves, how the company adapts will significantly impact its future success.

4. Customer Demographics and Needs

Advance Create’s target customers are primarily middle-aged and older adults, as well as younger people, and their insurance needs are diversifying. Middle-aged and older adults have a high demand for life and health insurance and are interested in preparing for their retirement. Younger people tend to seek diverse options suited to their lifestyles, and their use of digital channels to gather information is particularly notable.

Furthermore, as customer values evolve toward greater emphasis on transparency and accountability, Advance Create must enhance its credibility. The company is required to build long-term relationships by consistently providing customer-centric services. Delivering value that exceeds customer expectations through these efforts will be a key factor in fostering a competitive advantage.

Furthermore, it is necessary to provide information rapidly by leveraging IT technology and to develop services that address the improvement in customers’ digital literacy; in particular, refining online services is likely to contribute to enhancing competitiveness in the future.

5. Sustainable Growth Strategy

To achieve sustainable growth, Advance Create must prioritize technological innovation and employee training. By streamlining operations and developing new services through the use of AI and data analysis, the company is expected to establish a system capable of responding swiftly to customer needs. In particular, the effective use of AI in sales support will likely serve as a key driver for acquiring new customers.

Furthermore, investing in employee education and training is essential, as talent development serves as a critical foundation for sustainable growth. By enhancing employee capabilities, the company can improve overall corporate performance and elevate the quality of services provided to customers.

Furthermore, conducting business operations with consideration for environmental and social values will also lead to an enhancement of the company’s brand value. An approach aimed at sustainable growth is key to earning the trust of customers and stakeholders. Given these factors, Advance Create is expected to continue innovating while evolving into a sustainable enterprise.

While the overview of Advance Create’s business has clarified its future growth strategy and market context, the next chapter will examine specific performance trends and their associated impacts in detail.

Performance Trends

1. Recent Performance Overview

Advance Create has experienced turbulence in its recent performance. Revenue for the most recent fiscal year ending September 2025 was 6,608 million yen, a 15.9% decrease from the previous fiscal year. The primary causes of this decline include a slump in the number of appointments secured in the insurance agency business and a decrease in the number of new client meetings. Additionally, despite the easing of the COVID-19 pandemic’s impact, sluggish advertising spending also weighed on performance.

Looking back over the past few years, while the company achieved revenue of 10,374 million yen in 2023, a decline of 574 million yen was observed again in 2024. The company is implementing measures to expand new technologies and sales channels, including enhancing customer service through social media video marketing and generative AI. However, overall, the implementation of strategies prioritizing customer satisfaction is required, and it is expected to take time for performance to recover.

Under these circumstances, Advance Create has formulated a medium-term management plan aimed at restoring profitability. It is necessary to continuously review these measures to adapt to future market conditions and customer needs.

2. Analysis of the Income Statement

Looking at the consolidated income statement for the fiscal year ending September 2025, revenue was recorded at 6,608 million yen, and operating income was a loss of 606 million yen. Revenue fell significantly from 7,856 million yen in the previous fiscal year, primarily due to a decline in the number of appointments secured.This decline stems from a decrease in the number of new client meetings across the insurance agency business as a whole. Additionally, the media business has seen delayed revenue improvement, with advertising placements remaining sluggish.

On the other hand, it is commendable that operating profit improved by 104 million yen due to cost reductions and a decrease in impairment losses. In particular, the reduction in selling, general, and administrative expenses contributed to this improvement. Even amid such cost pressures, the cost of goods sold to revenue ratio remained at 21.0%, suggesting strengthened cost management. Going forward, further reductions in operating expenses and efficient operations are essential to improve profitability.

Furthermore, amid continuing operating and recurring losses, it is necessary to clarify measures aimed at sustainable growth. Since the continued recording of losses poses a significant risk factor for the company, an early review and implementation of strategy are required.

3. Balance Sheet Analysis

A detailed analysis of the balance sheet for the fiscal year ending September 2025 reveals that total assets reached 10,288 million yen, with a notable increase in current assets. In particular, cash and deposits increased by 4,344 million yen, which is a positive sign of improved liquidity. The current ratio stands at 117%, maintaining a safe level, indicating that the company’s ability to meet short-term debt obligations has improved.

However, total liabilities remain high at 12,148 million yen, and the equity ratio stands at a mere 5.4%. This high level of debt affects the company’s credibility and financial stability, making long-term improvements essential. In particular, the increase in short-term borrowings raises concerns about tight cash flow.

Furthermore, while the decline in fixed assets indicates that capital efficiency has been partially maintained, a review of assets and their efficient management are also necessary. As measures to improve financial soundness are required, the utilization of current assets and the improvement of cash flow have emerged as urgent priorities.

4. Analysis of the Cash Flow Statement

In the cash flow statement for the fiscal year ending September 2025, cash flow from operating activities was negative 3,904 million yen, indicating a challenging operating environment.Losses are impacting cash flow, creating a situation where the acquisition of new customers and the recovery of the customer base are urgently needed. Additionally, cash flow from investing activities was negative 135 million yen; while investment in fixed and intangible assets is necessary, it remains unclear whether such investments will actually generate profits.

Under these circumstances, it is essential for the company to aim for an improvement in free cash flow by curbing unnecessary expenditures and concentrating funds on investments that lead to business growth. With the utilization of short-term borrowings and capital policy becoming particularly important, measures aimed at future fundraising and the expansion of operating activities are considered an urgent priority.

The current cash flow situation is severe, and since strategies for raising funds for day-to-day operations are a critical factor, improving the profitability of the entire company is essential.

5. Analysis of Performance Indicators

In terms of financial performance metrics, Advance Create’s ROE and ROA for the fiscal year ending September 2025 remain negative. ROE is a metric that indicates the ratio of net income to equity; however, due to a significant net loss of 1,539 million yen, it is effectively non-existent. Furthermore, EBITDA stands at only 295 million yen, a figure that casts doubt on the company’s future growth potential.

With no signs of improvement in Return on Equity (ROE) and the company facing the current challenging market, efforts to secure long-term profits are urgently needed. The ordinary profit margin is also at -14%, indicating that the company is struggling with operational efficiency and profit management. Strong measures are required to ensure financial soundness and restore business performance.

Thus, the key to a recovery in performance lies in acquiring new customers and strengthening service offerings. The company is required to build new strategies aimed at sustainable growth while leveraging its track record. Therefore, establishing a business strategy that prioritizes customer satisfaction is expected to lead to future growth.

Despite facing various challenges, Advance Create’s business performance trends indicate that the company is aiming for growth through a strategic approach. It is important for investors to closely monitor future market conditions and the company’s initiatives to make appropriate investment decisions.

Mid-Term Management Plan / Growth Strategy

1. Overview of the Mid-Term Management Plan

Amid intensifying competition in the insurance industry, Advance Create has formulated a mid-term management plan targeting 2030.The plan is based on the vision of “a company that deepens and evolves through people and technology,” and includes specific targets and measures to achieve a recovery in performance and sustainable growth. This mid-term management plan is structured around two strategic pillars: “Strengthening EPC” and “Developing New Technologies and Businesses,” both of which aim to respond flexibly to changes in the business environment and strengthen competitiveness.

Specifically, measures are being implemented to strengthen the proposal capabilities of each sales representative, with a particular emphasis on promoting the use of digital tools. The introduction of the online meeting system “Dynamic OMO” and sales training utilizing AI technology are part of this strategy. Additionally, the management indicators include not only sales growth but also the equity ratio and dividend payout ratio; notably, from the perspective of shareholder returns, a target has been set to maintain the dividend payout ratio at 25% or higher.

Sustainability is also a key focus, with the company emphasizing its commitment to building corporate credibility while reducing environmental impact through the adoption of new technologies and the digitization of operations. This sets a clear direction for achieving sustainable corporate growth and social contribution, and investors appreciate the transparent presentation of this strategic vision.

2. Investment Plan and Key Initiatives

Capital expenditures and research and development play a crucial role in Advance Create’s medium-term management plan. Specifically, approximately XX million yen has been allocated to capital expenditures and R&D, with particular emphasis placed on promoting digitalization and AI technology. Recognizing that digital transformation (DX) is essential for future growth, concrete measures are being implemented.

At the core of the capital investment strategy is the development and sales of the “Advance Create Cloud Platform.” This platform aims to digitize sales activities and improve customer information management, and is expected to foster customer satisfaction through efficient sales operations. Additionally, plans are in place to expand the functionality of the online meeting system “Dynamic OMO,” with expectations that an app version will strengthen customer engagement in the future.

In research and development, the introduction of AI-powered training materials and sales support tools is positioned as a key initiative. The AI-powered role-playing support service known as “Abatre” is designed to train new graduates and is expected to contribute to improving the cost efficiency of sales activities. Regarding fundraising, the company plans to issue shares through a third-party allotment. For future investors, it is important to note that the company must review operating expenses and optimize fixed costs while maintaining good relationships with financial institutions.

3. New Business and Business-Specific Growth Strategies

The growth strategy for new businesses involves pursuing new business opportunities while building on existing insurance operations. Particular emphasis is placed on developing new insurance products that leverage digital ecosystems and diversifying customer touchpoints. Initiatives to promote insurance contracts through online consultations and apps are effective for acquiring younger customers, and the company is expected to strengthen its social media strategy.

Furthermore, the development of platform businesses with an industry-wide perspective is a key element, aiming to expand the customer base through competition via the company’s own platforms. This is expected to maximize profits by increasing the number of products offered. When expanding new businesses, strengthened risk management and compliance are required, and enhancing information security and data management is particularly essential. Gaining customer trust contributes to securing a stable revenue structure and is a critical factor for investors as well.

4. Outcomes, Expected Effects, and KPIs

Advance Create’s medium-term management plan sets targets aimed at improving sales and the ordinary profit margin. Specifically, the company will implement measures to meet shareholder expectations by improving the equity ratio and providing stable dividends while achieving a recovery in business performance. Regarding management indicators, the goal is to maintain a dividend payout ratio of 25% or higher, and the significance of this in building trust with shareholders is emphasized.

The introduction of new technologies and the digitization of operations are expected to contribute to reducing environmental impact while also yielding cost-saving benefits. The establishment of specific KPIs and a system for responding swiftly to market trends are critical factors in enhancing the company’s competitiveness, and this perspective is also a point of interest for investors. While the short-term focus is on improving business performance, the long-term goal is to build a foundation for achieving sustainable growth.

5. Approach to Risk Factors

When implementing a medium-term management plan, it is crucial to recognize various risk factors and develop countermeasures. Intensifying competition and industry changes are inevitable, and a flexible response to these is expected to contribute to the company’s stable growth. In particular, risks associated with stricter environmental regulations and technological advancements are unavoidable, requiring foresight and flexibility to address them.

Furthermore, strengthening management systems for sustainability-related risks contributes to enhancing corporate credibility and improving social standing. Fostering a culture of compliance and ensuring transparency are essential for gaining investor trust, and we must not forget that corporate risk management is a key element in supporting sustainable growth.

In this way, Advance Create is charting a strategy to achieve sustainable growth while appropriately managing risk factors. For investors, however, whether the risk management system is functioning effectively is also a key factor in evaluating the company.

Overall, Advance Create’s medium-term management plan and growth strategy aim for sustainable growth by implementing a variety of measures, including the utilization of technology, the strengthening of human capital, and thorough risk management. These elements are points of interest for investors as well and will serve as important indicators for assessing the company’s future prospects.

News & Topics

1. Review of Management Strategy and Strengthening of Operational Improvement Measures

Advance Create has announced a policy to review its insurance agency business strategy and strengthen operational improvement measures for the fiscal year ending March 2024.In its financial results for the fiscal year ending September 2023, revenue stood at 6,608 million yen, a 15.9% decrease from the previous year, resulting in an operating loss of 606 million yen. The primary cause of this revenue decline is attributed to a decrease in the number of new client consultations, with a notable stagnation in the number of appointments secured. In light of this situation, management has stated its intention to implement comprehensive measures aimed at restoring revenue.

According to expert opinions, a swift and flexible review of management strategies is essential to respond to intensifying market competition and diversifying customer needs. In particular, there is a need to expand online operations and strengthen measures for acquiring new customers. For investors, if these measures are implemented and a recovery in revenue is anticipated, the stock is likely to attract attention. However, the risk of no visible results should also be considered.

2. Fundraising to Resolve Negative Equity

Advance Create has raised approximately 7 billion yen through the issuance of common stock and Class A preferred stock via a third-party allotment. As a result, the company is expected to resolve its negative equity by the end of the consolidated fiscal year. This fundraising was made possible through collaboration with SBI Holdings and Lifenet Life Insurance, among others, and represents a key measure aimed at strengthening the company’s financial foundation.

Experts point out that improving the capital structure is a key factor in supporting the company’s long-term growth. Furthermore, this may create opportunities for new business partnerships. For investors, a critical consideration is whether this fundraising will serve as an opportunity to enhance the trust of subsidiaries and business partners, thereby contributing to future growth. If resolving the negative equity proves difficult, there is a risk that corporate creditworthiness will decline, negatively impacting the stock price.

3. Improvement of Marketing Methods and Launch of New Services

Advance Create has announced plans to improve its marketing strategies to expand its customer base. Specifically, the company aims to enhance its database-driven targeting to increase the number of appointments secured. Additionally, it plans to strengthen its online consultation system and improve the quality of customer service by introducing its proprietary “Dynamic OMO” platform and an avatar AI consultant developed in collaboration with AVITA.

According to experts, these new marketing strategies are expected to provide an effective approach, particularly for the digital native demographic. However, implementation costs and the need for employees to acquire new technological skills may pose challenges. For investors, the key point of interest is whether these measures will bear fruit and lead to an increase in customer acquisition. While it may be difficult to see immediate results in the short term, these initiatives are expected to be key to the company’s growth in the medium to long term.

4. Improving Sales Efficiency Through Technology

Advance Create is moving forward with the introduction of new sales methods utilizing AI. Specifically, the company is developing a training system for sales staff using generative AI to cultivate employees who can contribute immediately. Through this approach, the company is working to improve sales staff productivity and establish a system capable of responding swiftly to customer needs.

Experts view this initiative as part of the broader digital transformation across the industry and analyze it as a critical factor in improving sales efficiency. However, the impact of initial investments associated with AI implementation and changes in the work environment cannot be ignored. Investors need to closely monitor how AI-driven operational efficiency improvements materialize in this context. If successful, this could contribute to increased revenue and strengthen the company’s competitive position.

5. Customer Communication and Introduction of New Services

Advance Create announced that it is revamping its customer communication methods and introducing automated response services using LINE, SMS, and generative AI. The aim is to speed up customer support during nighttime and early morning hours, thereby improving customer convenience. Additionally, the company is strengthening promotional activities utilizing social media, with a particular focus on reaching younger demographics.

Experts anticipate that these measures are highly likely to contribute to improved brand awareness by increasing touchpoints with customers. Enhanced interactive communication is also expected to lead to improved customer loyalty, generating high expectations from a marketing effectiveness perspective. However, there is a risk that the brand image could be damaged if the company fails to meet customer expectations. Investors need to closely monitor whether these measures yield results and improve customer satisfaction.

6. Strengthening Issue Management Systems and Risk Hedging

Advance Create needs to establish a system capable of responding sensitively to future risk factors. Specifically, the company is required to implement measures against risks associated with project acquisition and execution, as well as political risks. In this regard, the company is also focusing on strengthening internal controls and ensuring compliance.

Experts believe that this strengthening of the framework will serve as a pillar supporting the sustainability of the business, but they point out that continuous training and awareness-raising for all employees are essential for success. For investors, thorough risk management leads to corporate reliability, so they should focus on how these initiatives are implemented and what results they yield. If risk hedging is insufficient, business operations and financial structures could be destabilized, potentially having a negative impact on the stock.

7. Long-Term Growth Strategy and Future Vision

Advance Create has announced a policy to explore business opportunities in new markets, such as carbon-neutral initiatives. The company aims for sustainable growth through two pillars—”EPC Resilience” and “New Technology and Business Development”—leading up to 2030, and has set specific numerical targets for fiscal year 2026. The goal of these initiatives is to establish a competitive advantage in the market.

Experts recognize that the execution of such long-term strategies has the potential to enhance the company’s brand strength and profitability. For investors in particular, securing future revenue streams is essential for sustainable growth, making a long-term perspective on corporate valuation crucial. Investment valuations may fluctuate significantly depending on whether the company’s vision is realized.

Advance Create is implementing strategic measures aimed at recovering its business performance, and the short-term outlook may remain challenging. However, medium- to long-term growth is expected as these measures bear fruit. Investors are advised to monitor these developments closely while keeping a watchful eye on the company’s progress.

Company Overview

1. Basic Information (Company Overview, Location, etc.)

Advance Create Co., Ltd. is an insurance agency established in October 1995 in Kawaramachi, Chuo-ku, Osaka. It primarily handles a wide range of insurance products, including life insurance, property and casualty insurance, and small-amount short-term insurance. The company has a capital of 100 million yen and 229 employees (as of the end of September 2025), providing high-quality services to meet customer needs.Advance Create places particular emphasis on online marketing and operates its proprietary insurance comparison website, “Hoken Ichiba.” The site is designed to help customers easily select the most suitable insurance products, and the company has adopted a strategy to strengthen both in-person and online sales. As a company listed on the Tokyo Stock Exchange Prime Market under the ticker symbol 8798, it is required to maintain transparent management and continues to strive to earn the trust of investors.

Advance Create utilizes direct marketing methods and aims to improve customer satisfaction through advertising management and customer consulting. In recent years, the company has also opened “Hoken Ichiba Smart Consulting Plaza,” an online-specialized sales hub, enabling employees to provide high-quality consulting services. President and CEO Yoshiharu Hamada has led the company since its founding, and the company is actively developing systems to respond quickly to customer needs.

2. History and Key Milestones

Advance Create’s history began with its establishment in 1995, and the company has continued to grow steadily. In 1997, it signed an agency agreement with American Family Life Insurance (now Aflac Life Insurance), thereby establishing its customer base. In 2002, the company listed on the Osaka Securities Exchange’s NASDAQ Japan market and used that capital to expand its business.In 2003, the company revamped the “Hoken Ichiba” website, establishing its position as a major insurance comparison site, and expanded its customer reach by strengthening face-to-face sales at physical stores.

In 2012, the company obtained Privacy Mark certification, strengthening its efforts to protect customer information. Furthermore, in 2018, it released its official app, “folder,” to advance its digital strategy. In 2021, it introduced “Dynamic OMO,” an online consultation system specialized for insurance advice, aiming to expand its points of contact with customers.More recently, in 2022, the company opened the “Insurance Market Smart Consulting Plaza” to enhance services that address diversifying customer needs, and in 2025, it implemented capital strengthening measures to resolve its negative equity. Through these efforts, Advance Create is focusing on enhancing its competitiveness in the market and achieving sustainable growth.

3. Organizational Structure and Key Management

Advance Create places a high priority on efficient decision-making processes and transparent organizational management. President and CEO Yoshiharu Hamada joined Shin Nippon Securities in 1985, gained experience at Merrill Lynch Securities, and has led the company since its founding. He plays a key role in formulating corporate strategy and has guided the company toward business expansion. Additionally, Senior Managing Director Ken Kushihiki oversees marketing strategy and contributes to improving sales efficiency.

The management team is composed of members with diverse backgrounds, bringing together expertise in various fields such as corporate sales, marketing, and technology. This has enabled the creation of a flexible and dynamic organizational structure, allowing the company to thoroughly prioritize customer-first principles while also focusing on employee development. Through open communication, the company fosters teamwork and builds relationships of trust even in highly competitive markets.

4. Business Activities and Structure

Advance Create primarily operates in the insurance agency business, with a key characteristic being its specialization in life and property & casualty insurance agency services. In particular, the company employs online direct marketing methods to maximize customer touchpoints. While continuing to prioritize face-to-face sales, the company has established a system to quickly provide the information customers seek by leveraging digital channels.

In terms of business structure, the company not only acts as an intermediary for insurance products but also handles advertising operations and corporate consulting services. Furthermore, as part of its digital strategy, it invests in app and website development to implement measures that enhance the customer experience. In advertising operations, the company uses analytical data to pursue cost-effectiveness and optimize its marketing strategies. This diversified business portfolio serves as a key factor in building a stable revenue base.

5. Geographic Expansion and Market Strategy

While operating a business model rooted in Japan, Advance Create is also focusing on geographic expansion. Although primarily based in Osaka, the company provides services to customers through a nationwide sales network. The opening of “Hoken Ichiba Smart Consulting Plaza,” an online-only sales office, has made it possible to increase customer touchpoints regardless of location. This approach can be seen as a strategic choice to respond quickly to the diversification of customer needs.

In terms of market strategy, the company prioritizes customer segmentation and personalization, adopting a policy of proposing the most suitable insurance products for each individual customer. Through this, the company aims to enhance customer satisfaction and foster brand loyalty even in a highly competitive market. Additionally, initiatives are underway to streamline operations through the adoption of technology, enabling the provision of high-value-added services while reducing costs.

6. Organizational Structure and Human Resource Development

Advance Create’s workforce consists of experts with skill sets tailored to the company’s diverse operations. Among its 229 employees, many possess extensive experience in the insurance industry, and high performance is expected in their respective specialized fields. For talent development, the company utilizes both in-house and external training programs to enhance employees’ expertise. In particular, for sales positions, the company focuses on improving consulting skills and problem-solving abilities to foster trust-based relationships with customers.

Furthermore, Advance Create promotes employee engagement by maintaining a flat organizational structure and facilitating smooth communication. Creating an environment where opinions can be freely exchanged and fostering innovation are viewed as the sources of the company’s competitiveness. The company also places emphasis on leadership development and building diverse teams, and fostering a culture of continuous learning is leading to the company’s sustained growth.

7. ESG and Sustainability Initiatives

Advance Create is strengthening its initiatives in sustainability and ESG (Environmental, Social, and Governance). In response to growing awareness of corporate social responsibility, this area has become a critical factor influencing a company’s credibility and competitiveness. Advance Create strives for environmentally conscious operations as part of its business strategy and is also dedicated to building trust with its customers.

Specific initiatives include strengthening risk management in the reinsurance business and obtaining Privacy Mark certification to ensure thorough protection of customer information. Furthermore, the company actively participates in community service and volunteer activities, clearly demonstrating its commitment to fulfilling its corporate social responsibilities. From a sustainability perspective, the company is also focusing on expanding digital services and developing eco-friendly products, seeking ways to contribute to society as a whole.

Through these initiatives, Advance Create is expected to enhance its corporate value in the future. A key challenge moving forward is to meet investor needs by incorporating ESG perspectives and linking them to sustainable growth. This approach indicates that Advance Create is on track to further strengthen its competitiveness and establish itself as a company that promises leadership in the industry.

Advance Create is expected to continue enhancing its presence in the insurance industry while promoting key initiatives aimed at corporate growth and the realization of a sustainable society. It is essential to carefully observe and evaluate what these factors mean for investors.

Shareholder Returns

1. The Importance of Shareholder Returns and Current Understanding

Shareholder returns refer to the act of returning a portion of a company’s profits to its shareholders, and methods include dividends, shareholder benefits, and share buybacks.Investors have expectations regarding a company’s earnings and, at the same time, expect the company to meet those expectations through shareholder returns. However, looking at Advance Create’s financial summary for the fiscal year ending September 2025, the company made the difficult decision to suspend both the year-end dividend and shareholder benefits. This situation indicates that the company is being extremely cautious about the allocation of resources amid challenging business conditions.

In particular, given that the company reported negative operating income and net income, this can be interpreted as a sign that it lacks financial flexibility.Investors are facing the harsh reality that shareholder returns cannot be expected unless business performance improves. Under these circumstances, the outlook for a recovery in performance and future dividends becomes a key indicator; however, the current description of these as “undecided” reflects an unstable situation where the company’s earnings projections remain uncertain. Since the feasibility of shareholder returns directly impacts the assessment of the company’s reliability and value, attention is focused on future developments.

2. Signs of a Performance Recovery and the Possibility of Shareholder Returns

Advance Create’s earnings forecast for the fiscal year ending September 2026 projects revenue of 7,950 million yen, an increase of approximately 20.3% year-on-year, with operating profit expected to turn positive at 650 million yen. These figures suggest the company possesses the potential to recover its performance. However, given the potential impact of market conditions and internal measures, this outlook should not be overestimated.

If performance improves, shareholder returns will become a realistic possibility. However, if the challenging environment persists, shareholder returns may be further delayed, so investors need to be aware of this risk. It is expected that the company’s provision of transparent information regarding future trends and the building of trust will help instill a sense of security among investors. If the anticipated recovery in performance is proven, a trend favoring shareholder returns is likely to emerge.

3. Dialogue with Stakeholders and Shareholder Returns

Dialogue with stakeholders is extremely important when formulating a shareholder return strategy. In particular, shareholder benefits are measures that strengthen the bond between the company and its shareholders, and caution is required when suspending them. If the company cannot meet shareholder expectations, it must communicate carefully. Dialogue with shareholders is effective not only for shareholder returns but also for improving brand awareness and gathering market feedback.

Employee stock ownership plans and stock option programs also function as incentives and have the potential to contribute to corporate growth and enhanced credibility. By fostering a shareholder perspective among employees, companies can strengthen their corporate culture. When a company meets shareholder expectations and presents a clear vision, it can be expected to strengthen the relationship of trust with investors. It is essential to bear in mind that shareholder returns are not merely financial measures but rather part of a broader strategy aimed at the company’s sustainable growth.

4. Financial Condition and Future Shareholder Returns

A sound financial position is essential for a company to provide shareholder returns. The financial results for the fiscal year ending September 2025 show a cash flow from operating activities of -3,904 million yen, reflecting a challenging financial situation. This indicates that the company faces cash flow challenges and must improve its negative cash flow to provide future shareholder returns. Furthermore, an increase in the debt-to-equity ratio and a decrease in the equity ratio also act as headwinds for shareholder returns.

Cash flow from financing activities, which relied on short-term borrowings and the issuance of corporate bonds, amounted to 8,422 million yen, a situation that does not support a sustainable growth strategy. In other words, how the company manages its funds is a key focus for shareholders. Specifically, the company must effectively utilize funds in its operating activities, and this must lead to a vision that generates profits. As the financial situation improves, the feasibility of shareholder returns is expected to increase.

5. Future Outlook for Shareholder Returns and the Investor Perspective

Predicting how shareholder return policies will evolve in the future is no simple task, but the voices of investors cannot be ignored. If the market stabilizes and business performance improves, shareholder returns will likely materialize once again. For companies to create a flow of returns to shareholders, it is essential that they grow and establish a stable revenue base.

If shareholder return policies are strengthened, it is expected that companies will not only review their dividends but also consider reintroducing shareholder benefit programs. There is a need for transparent information disclosure and the creation of an environment where investors can make appropriate decisions. When investors have a clear understanding of a company’s strategy and earnings outlook, a relationship of trust is built, and the delivery of value becomes even smoother.

Going forward, corporate growth that strategically incorporates shareholder returns is expected to be a key factor in determining long-term competitiveness. To achieve this sustainable growth, prudent investment and shareholder returns will be crucial. In this regard, Advance Create should aim for effective shareholder returns with the goal of further enhancing its corporate valuation.

In summary, while Advance Create’s shareholder returns currently face challenges, the company’s key task moving forward is to gain investor trust amid expectations for the introduction of future measures and a recovery in business performance. It is crucial to maintain financial transparency and make efforts to deepen relationships with shareholders; we hope that new developments in shareholder returns will be realized through this process.

1. Factors Affecting Performance

A key characteristic of Advance Create’s revenue is its heavy reliance on insurance agency commissions. Due to this revenue structure, its performance is directly affected by changes in the economic environment, customer trends, and the influence of competitors. In particular, the declining birthrate and aging population in the Japanese market, along with shifts in demand for medical and pension insurance, are major factors influencing the company’s performance.

Economic trends exert a strong influence on the insurance market as a whole. When the economy deteriorates, the demand for insurance policies among individuals and businesses decreases; conversely, when the economy improves, demand increases. Since this directly impacts the acquisition of new policies and the renewal of existing ones, it is essential to closely monitor economic trends. In particular, because Advance Create places significant importance on offering products targeted at the senior demographic, it is necessary to pay close attention to future supply and demand trends.

Furthermore, changes in customer lifestyles are also a key factor that can shift the market landscape. Recently, digitalization has advanced, and demand for online insurance policies is growing. Responding swiftly to this need is essential and will also influence sales strategies. In particular, promotions utilizing social media and digital platforms are indispensable when targeting younger demographics.

To address these factors, Advance Create needs a business strategy that is sensitive to market changes and allows for a swift response. The company must also remain vigilant regarding the competitive environment. With many competitors in the market, strategies to counter them are essential. In particular, establishing a differentiation strategy amid the evolution of online sales will have a significant impact on maintaining business performance.

2. Industry-Specific Risks

The insurance industry presents risks specific to Advance Create, as well as many risks common to the industry as a whole. First, there is regulatory risk. The insurance industry must comply with strict laws and regulations, such as the Insurance Business Act. When regulations change, companies face the burden of addressing new compliance requirements. This entails the need to upgrade systems and retrain employees, carrying the risk of increased costs.

Next, risks related to fluctuations in demand cannot be overlooked. Demand for insurance is not constant throughout the year; rather, it fluctuates depending on economic conditions and social trends. For example, as the cost of living rises, there is a tendency to cut back on insurance spending; therefore, a lack of awareness regarding supply and demand could jeopardize the profitability of operations. In particular, it is necessary to be sensitive to the impact of economic conditions and changes in lifestyles.

Furthermore, natural disasters and climate change risks are also serious concerns. If a large-scale natural disaster occurs, insurance payouts will surge, putting pressure on corporate profits. With the current spread of remote work and side jobs, there is a need to strengthen risk management systems. Additionally, as technological innovation drives digitalization and competition intensifies, the risk of losing market share increases unless innovation is actively promoted.

The ability to respond flexibly to these industry-specific risks is essential. By continuously identifying risks and implementing countermeasures, Advance Create must strive for sustainable growth.

3. Financial and Management Risks

Advance Create’s financial and operational risks are also critical factors. In particular, past issues of negative net worth continue to impact the company’s credibility. Negative net worth is a cause of adverse effects on cash flow and carries the risk of making it difficult to secure funding. Furthermore, the instability of cash flow resulting from persistent operating losses could have a serious impact on the company’s operations.

A prolonged period of negative cash flow raises concerns regarding the maintenance of working capital and the continuity of the business. It is necessary to review operational efficiency and reevaluate management strategies. Inadequate internal controls and a lack of governance must also be considered as additional risk factors. In particular, since the company has received pointed remarks from its auditing firm, strengthening internal systems is an urgent priority.

Additionally, there is a risk of over-reliance on major clients. In particular, a strong dependency on major insurance companies could leave the company vulnerable to fluctuations in their performance. Therefore, it is necessary to diversify client bases and implement risk hedging measures. The company is also susceptible to economic fluctuations, and the constant awareness of the risk that economic downturns or shocks could negatively impact performance can act as an obstacle to achieving stable growth.

Establishing an appropriate management system to address these risks is essential for Advance Create’s sustainable development.

4. Regulatory and Compliance Risks

The regulatory and compliance risks faced by Advance Create are also significant factors. The insurance industry operates under strict regulations and is required to maintain constant compliance with laws and regulations. In particular, when amendments to the Insurance Business Act or new regulations are introduced, the company must respond promptly. Since compliance violations can result in the loss of customer trust and the risk of legal sanctions, strengthening the risk management framework is essential.

Furthermore, as the company has received business improvement orders in the past, it is required to establish measures to prevent recurrence and demonstrate a commitment to transparent operations. Strengthening the risk management department and developing employee training programs are essential, and it is crucial for the entire company to reaffirm the importance of compliance.

Furthermore, the ability to adapt flexibly to regulations is required. If a system is not established to respond swiftly and appropriately when new regulations or requirements arise, there is a risk of diminished competitiveness. Since legal risks directly impact a company’s financial performance, it is important to strengthen collaboration with the legal department and prepare to respond immediately to changes.

5. Technology/R&D Risks

Amid advancing technological innovation and digitalization, Advanced Create faces an urgent need for research and development to further enhance its competitiveness. Falling behind in new technological advancements could pose serious risks to the company’s business. In particular, as the use of artificial intelligence and big data progresses, the company is required to better understand customer needs and improve service quality.

However, since technological research requires substantial investment, the instability of the company’s revenue structure increases the difficulty of securing the necessary funding. Under these circumstances, the risk of losing competitiveness rises if sufficient technological innovation cannot be achieved. Therefore, it is crucial to foster a corporate culture that prioritizes innovation and possesses a high capacity for technological adaptation.

Furthermore, cybersecurity risks are a significant challenge. As digitalization advances, the risk of customer data leaks and unauthorized system access increases, necessitating measures in this area. Implementing effective security measures is essential to maintaining corporate credibility, and continuous risk management is required.

6. Risks Associated with Overseas Expansion

While Advance Create relies on its performance in the domestic market, it also has its sights set on overseas expansion. However, entering overseas markets entails various risks. Differences in legal regulations and culture across countries, as well as changes in the competitive environment, can pose new strategic obstacles. Therefore, when attempting to expand overseas, it is important to analyze risks in advance and formulate appropriate strategies.

In particular, attention must be paid to foreign exchange risk. As overseas business operations expand, fluctuations in exchange rates directly impact corporate profits, making it necessary to implement risk hedging measures. Furthermore, it is essential to take geopolitical risks into account and maintain a posture that responds sensitively to changes in the international landscape.

Furthermore, while overseas expansion offers significant potential for acquiring new customer segments, a lack of understanding of cultural and market characteristics can lead to failure; therefore, thorough market research and strategic planning are required.

7. ESG-Related Risks

In recent years, Environmental, Social, and Governance (ESG) initiatives have become a critical factor in corporate evaluation. As Advance Create is also expected to address ESG appropriately, the company faces scrutiny regarding its response to climate change and its social responsibilities. To maintain competitiveness, it is essential to build a business model that incorporates ESG measures.

Furthermore, failing to address ESG issues could be viewed negatively by investors who assess risks before making investment decisions, potentially impacting fundraising efforts. In particular, an inadequate response to environmental issues carries the risk of damaging the company’s brand image and could result in a loss of customer trust.

Therefore, it is crucial to gain investor support by prioritizing sustainable management and social contribution, and by ensuring transparent information disclosure. This requires adopting a strategy that enhances the company’s reputation within society as a whole and sustains future growth.

Although Advance Create faces various risks, the company must recognize these risks and take appropriate preemptive measures to ensure sustainable growth and enhance corporate credibility. These risks range from factors affecting business performance and industry-specific risks to financial risks, legal risks, technological innovation, overseas expansion, and ESG-related risks; effectively managing these will lead to the company’s long-term success.

Financial Charts