Earnings Call: Q1 2027

Aug 14, 2026

Summary

Q1 revenue rose 7% and operating income surged, driven in part by SpaceX valuation gains; FY operating income guidance increased to ¥1.5bn. Strategy centers on AI-native products, subscriptions, stablecoins, robotics and overseas growth.

Dear investors, thank you very much for watching today's presentation. We have now become an empire, and we will now begin the financial results briefing for the first commercial period of the fiscal year ending March 2027 for Asteria Corporation. At today's briefing, we will begin with Yoichiro Hirano, Representative Director of Asteria Corporation, and Ryota Kudo, Representative Director and CEO of Asteria Canvas, providing an overview of the financial results and an explanation of the AI application product, Bakusoku.AI. After that, Executive Officer Kuma will join us to answer questions submitted by the audience. The briefing is scheduled to last approximately 60 minutes in total, including Q&A. We ask that you please participate until the end. Please note that the explanations that follow may include future outlooks based on current expectations, but these involve risks and uncertainties. Please note that actual results may differ from the outlook. Next, we will explain how to ask questions. To ask questions, please access Google Forms using the QR code currently displayed on the screen and register your questions. To ask a question, please access the Google Form using the QR code currently displayed on the screen and register your question. Questions will be accepted until the President's explanation is finished. Please note that we will compile and answer all questions received. Now, let's proceed with the financial results briefing. Yoichiro Hirano, President and Representative Director of Asteria, will report on the summary of the financial results for the first sales period of the fiscal year ending March 2027. President, please. Good afternoon, everyone. Thank you very much for joining us today for Asteria's first sales machine financial results briefing. I will explain the calculations for this first period. First, let me express my heartfelt sympathies to all those affected by the recent Kumamoto earthquake in 2026. Asteria has decided to provide a capital contribution of JPY 3 million and has also announced that it will provide its products and services free of charge to local governments and companies affected by the disaster, providing support. Furthermore, the evacuation center and local information map developed using our new product, Super Fast AI, is currently being used locally. in light of the recent earthquakes and other natural disasters that have been occurring all over Japan, we hope that our technology can be of some help in addressing these challenges, whether it be through disaster prevention or disaster recovery and reconstruction. We will continue to provide peace of mind. Now, let's move on to the financial results announcement. First, since some of you are attending this financial results briefing for the first time, I will briefly explain the company profile. Asteria Corporation is a software manufacturer for businesses. As a software manufacturer, we specialize in providing software as products and in connecting people. We have five locations in Japan, as well as overseas locations in the U.S., China, and Singapore. We are currently listed on the Prime Stock Exchange, and our employee base is very compact, with a consolidated total of 153 employees. Another feature of our company is our innovative technology. We are leading an organization that promotes this technology not just within our company, but across the entire industry. For example, we are examining no-code, blockchain, and generative AI. There are three keywords that will help you understand Asteria. The first is connecting, the second is cutting-edge technology, and the third is manufacturing. Our products and services specialize in this area of connecting, and they use cutting-edge technology. Recently, we have been working on stablecoins and physical AI. As a manufacturer, we have no involvement in housing development, so we take on these very challenging tasks, and our staff and members are made up of highly motivated members. The times are changing. We are now in the AI era, and our foundation is wellbeing management, which aims to develop and recruit people who can be experts even in this AI era. The no-code software that we provide is in this lineup. Each of these products is extremely strong, and they have the number 1 market share or are cutting-edge. Today we will introduce the introductory product called Bakusoku.AI, which is shown in the red frame at the bottom right. Before we get into the financial results, I would like to introduce some recent topics. First, let's talk about Bakusoku.AI, which we have been talking about. This is a new product that develops business software using AI. We started offering it on August 1. We will also be adding the enterprise version of this super-fast AI to our lineup as Platio Canvas AI, which will allow us to take the brain code one step further and develop business software at lightning speed simply by having conversations in Japanese. This is what we will be providing. Also, as we recently disclosed on August 10, we sold SpaceX shares and recorded a valuation. First, the valuation was recorded on August 10, for a profit of approximately JPY 2 billion. Then, a little while ago, on June 9, we sold some shares, which is a gain on sale, and recorded a profit of JPY 400 million. These are the operating income of our investment business. As a result, we have revised the operating income for the full year and announced this today. Originally, we announced a full year figure of JPY 1.1 billion, but we have revised this information to JPY 1.5 billion. Another recent topic is that the fund specializing in AI and robotics, which we introduced at the previous financial presentation, has decided on its first investment. The investment is called Figure AI, and some of you may not have heard of it yet. It is a company based in the U.S. that makes humanoid robots. Its valuation is the highest in the world. In fact, it is a company with great potential, such as being used in mass production by the automobile company BMW, and I think we will hear a lot about it in Japan from now on. That's all for the recent topics we've introduced, but based on this, I would like to give you an overview of the financial results for the first fiscal period from April to the end of June. First, sales revenue was JPY 824 million, up 7% from the previous period, and the gross profit margin was JPY 696 million, which is a very high profit margin of 84%. Operating income was JPY 2,451 million, up 688%. In other words, it was more than 7 times higher. Then there's the commercial profit. This was JPY 1,703 million, up 620%. This was also more than 7 times higher. Yes. From this operating profit to the trial period profit, there is nothing particularly noteworthy between these two. Financial losses and gains and losses are small, and there are adjustments for taxes such as corporate tax and non-controlling interests, and that is what gives us the final commercial profit. Let us look at the money spent, SG&A expenses. This time, SG&A expenses have increased significantly. JPY 700 million is JPY 2 million, and this is the high-speed violation expenses or marketing expenses, which have increased significantly. They have more than doubled. We have new products, including the Bakusoku.AI, and we are intentionally investing in marketing for these products, assuming that they will generate investment. Another notable item is outsourcing expenses, but thankfully, the number of shareholders has increased. Compared to a year ago, it has increased by about 7,000 people, to around 17,000. The various postage costs for sending mail to shareholders and other expenses have also increased. That is how it is. As a result, the statement of financial position, which is called the balance sheet under Japanese standards, has also increased. Cash and deposits are JPY 3.4 billion, and the equity ratio is 75%. PBR, as of the end of June, is 2.1 times. Next, I will talk about the status of the products and services that support these. Our products have been mainly software up until now, but in a word, subscriptions are being taken lightly and the transition to stock-based sales is progressing. In this first trial period, stock-based sales composition expenses have increased to 86%. This will fluctuate slightly if we cut it into the commercial period, but it is the highest percentage for the first trial period. Of this, subscriptions account for 41% and support accounts for 45%. The cautiousness in subscriptions is explained here. ASTERIA Warp is the largest, accounting for about 60%. The Handbook series accounts for 18%, and Platio accounts for 17%. This is how subscriptions are structured. Let us talk about data linkage tools. This is our main product. Here is the product status of ASTERIA Warp. First, in terms of evolution, we are providing new adapters. Adapters for services and personal information acquisition systems are available. New examples include Dynos and Tower Records, which are companies that many of you know have adopted our system. Among our various activities, we have also received the CYBOZU AWARD. This is also one of the results of ASTERIA Warp’s activities. We are also focusing on strengthening the use of AI. In the new version, we have enhanced the use of AI. First, the ASTERIA Warp flow can now create data linkage flows. First, we provided drag and drop. Then we provided templates. Now, we have finally reached an era where we can create flowcharts using AI. Here is a conversation with AI. Automatically generate data linkage flows through conversation. This has been included in the new version. In addition, you can ask questions on the spot using an AI chatbot. Furthermore, we have an adapter for generative AI. I think you are using various generative AIs. The function to link and pair data to such things. Then, we are focusing on a new stablecoin currency adapter. We have also prepared things like this. Let me explain about Platio. Platio is a business application platform for the field, and Platio has been continuously evolving. It is a web application, and now you can actually create applications to be used on PCs. Up until now, we've been talking about mobile applications, but now you can finally create PC applications, and we've also added Excel output, which was a popular request, and we're expanding our new lineup. The market is also growing significantly. We're receiving a lot of inquiries. There's an increasing demand for mobile applications in manufacturing, construction, retail, inspections, and record-keeping. We've also published three case studies. Limno, the Kumamoto Prefectural Government, and Marutake Ningyo, where it's being used in a variety of fields. That's Platio. Platio is also accelerating the use of AI. Just like Warp, it automates the creation of applications through conversations with AI. This is also an evolution of the brain code that has advanced one step further. And then there is the on-site data accumulated in Platio. This means that this can be utilized in MCP. Data can be utilized in places like Claude, ChatGPT. These are the types of responses that are enhancing the use of AI. Now, let's take a look at other products. First, there is Handbook X, which also has a large number of examples from the railway industry, but in addition to that, there is construction. As an example from Setec, we have also published this example. And then there is Gravio. This is a platform for utilizing physical AI, and inquiries from seminars on physical AI are very strong, and new projects are being created one after another. And then there is the stablecoin business. Stablecoins are very hot right now. In addition to JPYC, which we are supporting and promoting as shareholders, we are also working on SBI's new stablecoin and the one from Three megabanks, which will be launched within the fiscal year. We are also expanding the JPYC Gateway. As the first prototype, we have announced a standard wallet and authorized wallet, allowing each company to choose the wallet that best suits their policies. As for JPYC itself, we have announced that we will hold JPY 1 billion, and as of now, it has exceeded JPY 170 million. Our sales department is increasing this amount every day, and it now accounts for about one-third of the total capital. We are planning to hold this amount in JPYC stablecoin. In addition to holding it, we are also working on using it. This is the JPYC shareholder foundation. This is complete. Well, that's all for now. Okay, so regarding the product status, as the last product status, I would like to hear from Mr. Kudo, the President of Asteria Canvas, about our new product, Bakusoku.AI. As you have just heard, my name is Kudo, the CEO of Asteria Canvas. Today, I would like to explain about our new product, Bakusoku.AI. Bakusoku.AI is not a no-code, drag-and-drop solution that evolves business processes, but rather an AI-native product that allows you to easily create applications simply by speaking natural language words like the ones you use. The important thing here is that it is AI-native. Rather than incorporating AI into existing application systems, it is an AI-native business platform that uses AI as its core and allows you to easily create business applications. In many workplaces, even if you have ideas, it is difficult to put them into shape. In this case, there are programming, requirements definition, design, and operational improvements to actually release them. Bakusoku.AI's strength lies in its ability to handle all of these aspects in a consistent manner. In many workplaces, it is a product that allows you to quickly put ideas that have not yet been formed into shape into production. In fact, Bakusoku.AI is packed with the know-how of creating over 80,000 apps that we have cultivated in our no-code approach. I will show you a demo later, but when you input into Bakusoku.AI the kind of app you want to create, the kind of business you want to improve, or the kind of goals you want to achieve, Bakusoku.AI will provide you with recommendations such as, "How about this application?" functions, and the know-how to release it. This is a platform that provides all of this. Recently, when releasing AI products, security has become a hot topic. People create something but are unable to release it as a service because they are worried about security. We often hear such stories. Bakusoku.AI also ensures security, and you can share the product with everyone via URL or QR code by simply pressing the Solve button. This is one such product. We have also released Platio Canvas AI at the same time, which has even stronger security features. Now, I would like everyone listening to this talk to imagine being a supermarket manager. This time, we will use Bakusoku.AI from the perspective of a supermarket manager. As a supermarket manager, we would like to ask Bakusoku.AI about measures to acquire new customers. This is the actual generation screen of Bakusoku.AI. Here, we run a supermarket. When asked for ideas to increase loyal customers, Bakusoku.AI will come up with a few ideas, such as, "How about this format?" Among them, in the area of digital utilization, we particularly like the idea of a point card, and when asked if it could be turned into an app, Bakusoku.AI will respond by saying, "Let's make a point card app." When it comes to the requirements definition design here, we make full use of the experience we have gained from developing 80,000 no-code apps so far. Now, since this is a membership app, we want to create an application that can be used with a membership registration. Next, we ask what kind of application functions would be good. Should it be a coupon? Or should it be a point system that awards points based on the amount of purchases? By repeating these questions one by one, even amateurs will be able to design applications without even realizing it. When asked what kind of design to use when actually using the application, we say, "Since it can be used by the general public, I want a cute, pop design that's reminiscent of Harajuku." Then, after selecting a design pattern, a flyer like this is created before the application is actually generated. Based on the information we gathered, I showed you earlier what the completed app will look like. If there are no problems with this app, we can proceed to the next step and Bakusoku.AI will already be working on creating the application. Here are the requirements we gathered and the completed application. Apps created by Bakusoku.AI can be created responsively for smartphones, tablets, and PCs. With this many functions and graphical design, the application can be completed in just 3 minutes at Bakusoku's speed. There is no need to actually upload the application we created to the server with Bakusoku. Just press the Publish button here, and you will be able to use it as an application by simply sharing the dedicated QR code and URL with everyone. This time, we have created an application to increase new customers for supermarkets. The next challenge is to understand the status of employees submitting their shifts. We want to check things like this, so let me show you how Bakusoku.AI can be used. The applications we created earlier with Bakusoku.AI are all compatible with a technology called MCP, so they can be seamlessly linked with AI agents that you normally use, such as ChatGPT, Gemini, and Claude. All applications created with Bakusoku.AI can be linked with MCP. Let me show you what this means. In this case, it's Claude. When you ask Claude to graph the shift submission status, it automatically pulls data from the Bakusoku.AI product database that you created earlier and automatically graphs the submission status without having to output the data. You can create new marketing initiatives, create an executive summary for last year's expenses, or ask your customer what the next steps should be. You can use Bakusoku.AI data to come up with initiatives just by asking the AI agent you normally use. Bakusoku.AI can be used in a variety of cases regardless of industry or sector. Prime Minister, distribution, e-commerce, manufacturers, manufacturing, construction, medical clinics, real estate, back office. It is possible to utilize Bakusoku.AI natively in cases such as these, regardless of industry. Yes, that concludes the explanation of Bakusoku.AI. Thank you very much. Yes. What did you think? This is Bakusoku.AI and Platio Canvas AI. These are our new AI native products. These are products that will contribute to the AI nativization of various companies. Now, as we enter the era of AI native, let me also talk about our strategy for this era. The general framework and the more in-depth details were explained in detail at the business strategy briefing held after the general meeting of shareholders, but I would like to briefly summarize. First, in this world, AI has emerged, and this is the AI revolution. This is changing the competitiveness of various companies and industries around the world. The Industrial Revolution saw large, established companies create the world, and the Internet Revolution saw companies such as GAFAM create the world, and now, this software-only value can be created by anyone. This is the same as Bakusoku.AI, and anyone can create it. In that case, the value of software alone will become very weak as a competitive advantage. So what is next? What we are thinking about is something called asset hooks. The scalability of software and real assets that cannot be replaced by AI. The idea is that we are entering an era where these two things are combined to restore value. We are also transforming our business in line with this idea and the trends of the times, moving from software-only to something beyond that. To that end, we first obtained approval for certain changes at the general meeting of shareholders. We will work to restore our software business to include hardware, robots, AI, digital currency, and even satellite communications, and to restore value through a variety of real assets. We have also launched a new business division for this purpose. We have also revived a new fund to gain synergies by forming alliances with various cutting-edge companies not only within the company but also outside the company, and the first target of this fund is Figure AI. In this way, we will realize this asset hook and continue to grow. Last year, due to Thursday, various software companies suffered from falling stock prices. As shown in the diagram above, future growth will no longer depend on strict competitiveness. The market has reacted sensitively to the fact that anyone can do it and no longer have to buy it. What we are proposing as a competitive edge going forward is this asset hook. We do not just propose this, but we want to realize it ourselves and prove it. In this context, AI native society is definitely coming. We will become the next experts and the foundation for this AI native society. This is our aim. In terms of connecting, we want to sell to the world market, including overseas markets that are more than 30 times larger than Japan, not just domestically. Our scale is still small. In the fiscal year ending March 2014, sales were JPY 3.4 billion, operating income was JPY 1.03 billion, and total equity value was JPY 24.6 billion. This is as of the end of March. We want to use this change in the AI era as a hook and use it as an opportunity to grow significantly. First of all, we are expanding as a management strategy. Stable growth in the stock business. We will continue to build on this and further increase sales of new therapeutic solutions, stablecoin, robots, and hardware, as I mentioned earlier, and increase value through corporate investment and M&A. Furthermore, overseas, unlike before, we will utilize AI to develop new businesses. We would like to proceed with these efforts. Our target is to achieve a corporate value of JPY 100 billion. The reason it does not say total equity is because stock prices change daily, but we aim to achieve JPY 100 billion in corporate value. This is not a goal, but rather a monetary value as a company that serves as the foundation for AI natives. More details on this point will be explained at the business strategy briefing, which is available on YouTube, so please take a look. Let me summarize the financial results for the first fiscal year. First, regarding the financial results, both revenue and profit increased, and software sales were also strong. Furthermore, profits increased significantly when the evaluation of SpaceX was added. As for the super-fast AI, I explained it earlier. With this announcement, we are now moving forward with AI nativization. We are also strengthening AI compatibility for each product. The new fund, this is a fund specializing in AI and robotics. The first fund is Figure AI. Based on this, we have revised the operating income forecast for this fiscal year, the fiscal year ending March 2027. We have announced that full-year operating income will be JPY 1.5 billion. This is the first prototype, and although it has only been in production for 3 months, I hope you can get a sense of the new transformation and direction of Asteria. That concludes my explanation of the financial results for the first commercial period. Thank you very much for listening. Now, we will open the Q&A session. Please display the screen. The first question. While business performance is strong, I think the stock price is sluggish. How do you view this as the President? How do you plan to meet investor expectations? We have received many questions about the stock price. Please answer, President. Yes. Thank you for your question. The question is about the stock price. Yes. Our stock price rose significantly last year due to stablecoins and has remained at a high level since then. If you look at the stock price graph, you can see that it is gradually declining. Although we ourselves cannot control the stock price, our perception of our stock price is that our performance and expectations for the future are very important. By further raising expectations for the kind of growth we will achieve in this new era, the age of AI, our stock price will ultimately depend on whether investors will buy our stock rather than on our performance. The key is to make sure that this moves. We have a clear strategy. We will continue to improve our performance and raise expectations for the future. In addition, we have clearly stated our shareholder return policy. Okay. Regarding shareholder preference, and then, regarding actual dividends, we have announced a dividend policy that will not decrease as a type of dividend. We have already implemented a stock sale in the past. As is often asked about, we intend to implement it when appropriate. However, this is more of a measure for the immediate future, and in terms of achieving significant growth, we believe that we need to accumulate a track record and continue to focus on this. That concludes my answer. Thank you very much. Next question. Given the significant increase in profits, are you planning to increase the dividend payout? I would also like to hear about your policy for shareholder returns as a measure. That concludes my answer. Thank you for your question. Yes. This is the question about dividends and stock purchase policies. Yes. Regarding dividends, when it comes to dividend payouts, it basically means the percentage of profits, and 2 years ago, we decided to significantly increase this base and are now paying dividends. Since it's a dividend, it won't go down. We're raising the same forecast, and we've also raised our forecast for this year compared to before. We announced a significant increase in profits, but first of all, we need to carefully examine the figures we've raised this time. In particular, the operating profit for the first commercial phase is still subject to valuation, and some of it has not yet been converted into actual money for us, so we need to determine where this will end up. Yes. For example, in SpaceX, the actual sales are confirmed profits. Then, the valuation, this JPY 200 million figure, is unconfirmed profit. The valuation will be determined at the end of March next year, but we will decide on the final dividend based on these factors. One more thing. As we explained when we announced our policy on cumulative dividends, we basically exclude temporary, or perhaps temporary, items when paying dividends. By doing so, there will be no chance of something that was expensive becoming cheaper or disappearing. This is a type of dividend, so you can hold onto it with peace of mind. In terms of dividends, this is the format and policy we have. As for shareholder return measures, they are as I explained earlier. That concludes my answer. Thank you very much. The next question is, "When do you expect to achieve the target of a total market capitalization of JPY 100 billion set by President Hirano? Please tell us the specific growth drivers that will help achieve that." That is all. Thank you for your question. First of all, I want to make one thing clear. I mentioned this in the presentation earlier. I also explained the same thing at the business strategy briefing, but this is not total market capitalization. Total market capitalization changes daily depending on the stock price. What we are aiming for is a corporate value of JPY 100 billion. Those of you who have seen SoftBank's financial results will understand this. You also said that the stock price is too low compared to the corporate value, but we are steadily building up a corporate value of JPY 100 billion. Of course, there is a correlation between the total amount of time spent and whether it will follow or proceed, so we are focusing on the corporate value as a base. Our corporate value can be greatly increased through our own growth, so we are aiming for a corporate value of JPY 100 billion. The specific growth drivers to achieve this are the four bridges I showed you earlier. We plan to achieve this through these. That concludes my answer. Thank you. Next question. "It appears that the number of Warp licenses is decreasing, but how does this compare to expectations? Is it a risk factor?" This is an answer from Kuma, the crew member. Thank you for your question. I will answer as Kuma. Compared to expectations, I think we are doing our best, and it is slightly higher than expected. However, we are currently measuring the transition from one-time sales of this license to a subscription model, so this is also a risk factor in that a large transition will not proceed. However, if one-time sales shift to a subscription model too much, there is a possibility that sales will drop dramatically. This is still a risk factor, and it is difficult to completely control it, but we would like to skillfully switch to a subscription model and achieve stability in management. That concludes my answer. Next question. "What is the aim of Platio's basic plan?" Kuma will answer this as, well, yes. Thank you for your question. Various functions have been added to this basic plan, but the biggest point is the addition of a function for displaying data. When using Niji to export data stored in Platio, it is necessary to export it to an external format, such as an Excel format, or to create a format for a report. In order to automate this, it was previously necessary to purchase a product called Platio Connect. This is the Warp function that we created and used, but there were cases where it was not introduced because it was a bit expensive and difficult for customers. In that sense, the basic plan, which will be changed to the Lite plan from now on, will allow customers who have signed up to it to increase the unit price. Also, because this adjustment function was not included and because there was a price difference with Platio Connect, the unit price was a bit high, so we will be able to take on projects that were lost out on. Overall, we believe that we will be able to secure quantity, sales, and increase the unit price. That concludes our answer. Next question. "What is the difference between the free and paid plans for Bakusoku.AI? Is the structure such that an increase in the number of paid plan users contributes to revenue?" This will be answered by Asteria Canvas CEO, Keiji. Thank you for your question about the Bakusoku plan. Yes, that is correct. The difference between the free and paid plans for Bakusoku.AI is that the paid plan unlocks various functions. On the other hand, the free plan is available within the free credits, so if you want to go beyond this framework, for example, to integrate, you will need to use the paid plan. Among the paid plans, Bakusoku.AI is an AI-native product, so you will use AI credits when creating an app. Therefore, the main source of revenue will be sales from the paid plan plus these AI credits. In addition to this, we are currently providing training using Bakusoku.AI to MILOKU Group companies nationwide. In addition, we will also be combining corporate training with AI Native products, and sales from training will also be included in the revenue structure. This concludes our answer. Next, we will answer a question about Bakusoku.AI. I think Bakusoku.AI is B2C, but are there any plans for TV commercials? Also, please tell us the status of inquiries and how much the results for this fiscal year will be. That's all. Yes. Thank you for your continued questions about Bakusoku.AI. Bakusoku.AI is available for both B2B2C and B2C. We do not have any plans for TV commercials at the moment, but we do have plans for transit advertising. We also plan to provide various commercials, such as online programs, in formats other than TV. Yes. Regarding inquiries, we are providing no-code products. For example, the number of registered members for Click, a single product, is about 30,000. There are about 100 companies in total. For customers who were not satisfied with Click or who have already tried Click, we are considering cross-selling to them using AI Native. In addition, we would like to propose the Super-fast AI to Asteria customers, such as those who are already using Warp or Platio. Yes, that's all. Next, we have a question about Artefacts. Artefacts has set a big goal for several years from now, so please tell us about the progress and the prospects for achieving it. That's all. Yes. This is a question about Artefacts. Thank you. Yes. Speaking of progress, in this first quarter, the first shihanki, there was a big announcement. This is that it has been adopted for the JAXA project, which is a five-year project where humans will go to the moon, and Artefacts will be used for the simulation of the lunar rover. Then, as for things that have already been announced, there is a space startup in Austria. Well, there are some that we have not announced yet, but this space field is clearly written into the government's basic policy in 17 priority areas, and we believe that it will expand rapidly in the future with various space fields. That's how far we've progressed, but as for the prospects for achieving them, it's still unclear at this point, but we will do our utmost to achieve the goals we've set. Furthermore, Artefacts is already expanding not only domestically but also overseas, so please look forward to it. That concludes my answers. Thank you. Next, we have a question about overseas expansion. How about further strengthening sales of Asteria products overseas? That's all. Yes. Thank you. Thank you for your suggestion. Overseas sales. This is what we've been aiming for since our founding. In fact, the Singapore base is a base for strengthening sales. Currently, we are focusing on physical AI, but we are also responding to inquiries for other products. However, overseas is a very important part of this medium-term plan, so we will further strengthen this area from now on. To that end, we will also promote product development that goes beyond Japan. We will also use investment funds to expand our client base. We will use various methods to move forward. Another new method, which I mentioned earlier, is using AI to sell products, and the other party may be a company that uses various AIs, or the AI itself may make decisions. Rather than people watching, AI will make decisions and collect information. We aim to use our policies in this way. That concludes my answers. Thank you very much. Next, we have a question about stablecoins. Could you tell us about the status of Tokyo's subsidy system using JPYC? How is the campaign going and what are the reactions? I think this is a question about the Tokyo Metropolitan Government's stablecoin social implementation promotion project subsidy and the Zapowashi Gate campaign. Please answer. Oh, I see. Yes. Thank you for your question. Yes. First, let me tell you about the status of the Tokyo Metropolitan Government's subsidy system. We do not have a complete grasp of this. This subsidy system is designed to provide subsidies for demonstration experiments that will actually be implemented, and manufacturers like us do not directly make proposals. We are actually in discussions with the Tokyo Metropolitan Government on the back end, but we do not have the latest information on the situation. Yes. Next, let me tell you about the campaign status. We are running a campaign for the JPYC Gateway, and although we have received many inquiries, there are still many restrictions that we need to work on. Before we allocate a budget for the JPYC Gate, we must first promote the widespread use of stablecoins in society. These things need to be recognized and accepted, and then people need to start paying for them. For example, we could partner with JPY Assets to further promote stablecoins. Furthermore, we could partner with SBI to promote stablecoins. Furthermore, if 3M is issued, we would like to promote stablecoins. Although we are shareholders of JPYC, we cannot get started unless stablecoins become widespread. That is why we have already announced the JPYC Gateway, not just for JPYC. We will also support USDC and other such entities, and of course, we are currently in discussions to fully support JPYC once it becomes a public chain. First, we are focusing on expanding the stablecoin test site. That concludes my answers. Thank you very much. Next, we have received questions about stablecoins. How many years do you expect stablecoins to contribute to your business performance? Will they contribute in addition to the JPY 8 remittance fee? Also, when will JPYC be listed? That's all. Thank you for your question. Your question is about stablecoins. In terms of their contribution to business performance, it depends on the level of adoption of stablecoins. One thing we are relying on, for example, is the Citigroup's Ethereum, which is also used in JPYC. 2030 is a milestone for this, so we are making plans based on the figures we expect to see in about four years. That would be 2030. In addition to the JPY 8 remittance fee, JPYC Gateway will also contribute. There is a basic usage fee, and if the number of startups increases, it will increase every month to JPY 98,000 at the current rate. We will be receiving this, so first of all, there will be a basic usage fee, and then there will be a remittance fee of JPY 8. In addition to that, we are also considering various financial services related to that. Regarding the listing of JPYC, we do not know about that. Although we are shareholders, we will of course ask about it when making such a decision, but we do not know the purpose of the listing, and even if we did know, it is not something we can discuss here. Thank you for your understanding. That concludes my answer. Thank you. Next, we have a question about stablecoins. In addition to supporting the expanding AI agent and collaborating with Progmat, JPYC is also working on opening up. In this regard, please tell us about the significance of Asteria's position and your enthusiasm for the future. That is all. Thank you. This is a question about our business related to JPYC. The reason JPYC is open cut is that its original design is open. It is deployed on a blockchain called a public chain. This is the starting point for openness. This allows various companies to freely access the AI agent, and for example, make payments and receive payments. As for Progmat and program integration, 3M is collaborating with Progmat, so the question is how to interact with 3M's coins, or how to integrate with what Progmat is already doing. Our position is that we are experts in connecting. We will become a hub for stablecoins. This is what we do. Right now, we only have JPYC, so we are only connecting JPYC, but as I mentioned earlier, once JPYC becomes public, which many people misunderstand is not yet a public chain. We will connect it once it becomes an Interchain, and if 3/1 is not closed, we will connect it, and we will also connect dollar-denominated ones and become a hub for the exchange of various stablecoins. We will also teach the AI agent, and we will also operate the AI agent. What is actually needed for this is integration with the in-car system. The in-car system uses the AI agent. Therefore, without collaboration with them, it is actually very difficult to use stablecoins as an agent. In fact, even just using stablecoins, for example, there are issues such as what to do with gas stoves and how to manage them. We are the JPYC Gateway, and our position is significant in that we are the central hub. How can we, as connecting experts, leverage our accumulated knowledge to become a hub for stablecoins? How can we make the most of this? How can we take the lead in these areas? We are always aware that we are at the forefront of this, and we are determined to make things happen that are currently impossible. That is all I said about the misunderstanding. Thank you very much. Next, we have a question about our performance. Operating income has already exceeded the performance forecast for this fiscal year. In contrast, the revised figures seem modest, but are there any risk factors in the second half? That is all. Yes, thank you for your question. We need to hear about our performance. Operating income exceeded JPY 2.4 billion in the first commercial period, as I mentioned earlier. However, the full year forecast is JPY 1.5 billion, so I think many people are wondering why it is JPY 1.5 billion for the full year since it exceeded JPY 2.4 billion in the first commercial period. This is not so much a risk factor as it is a matter of content. Operating income exceeding 24% includes investment. This includes SpaceX's valuation as of the end of June, and it changes significantly depending on SpaceX's stock price. In fact, the numbers change daily. As far as I can tell at this point in time, the figure I can present to you as of the end of March is JPY 1.5 billion. If SpaceX continues to grow, it will increase even more, but if it declines, the current difference may narrow. Logically and rationally, we came up with these figures, and it doesn't mean that there are any special risk factors in the second half. Yes, that concludes my answer. Thank you very much. Next, we have a question about our performance. We were told that sales were conservative, but we are now at less than a quarter of the sales forecast. What is your outlook for the future? That's all. Yes, thank you for your question. Your question is about sales. Yes, less than a quarter means that our stock sales are increasing. As I mentioned earlier, the first commercial model exceeded 80%. This figure is the highest ever. The model is that stock sales gradually increase in proportion to the sales forecast, which is one quarter. Therefore, the fact that the first trial model is less than a quarter is not something to be too concerned about. What we should look at is how it compares to the previous first trial model or the first trial model of the previous year, and whether the progress is solid. Regarding the product, the price for each prototype is also listed in the appendix. I didn't explain it today, but it is written in the materials, so if you look there, you will understand more clearly. There was another question earlier, about Warp. We are cautious about subscriptions. This time, the stock is becoming like this, and the number of licenses is lower than expected, and the number of subscriptions is increasing. This is because the outcome of Warp is somewhat uncontrollable, so there are factors such as these. There is no need to worry about the progress of less than one quarter. According to our strategy, if subscriptions decrease, please be concerned, but we will do our best to recover. However, the current situation is reflected in the numbers. That concludes my answers. Thank you. Next question. I think the product lineup has been expanded considerably, starting with Bakusoku.AI. We expect sales contributions from these new products, but what are the prospects? Could you also tell us about future sales strategies? That is all. Yes, thank you for your question. Regarding the product lineup. Yes, as you said, I announced the no-code portfolio two or three years ago, and we have been steadily expanding it. This includes not only in-house development but also M&A, and Bakusoku.AI is a valuable asset for M&A. Of course, we have high expectations for the sales contributions of these new products, and we are promoting these measures. One of the measures for this, which we implemented in the first term, is investment. Investment means firmly incorporating it into software. Therefore, as I explained this time, we have significantly increased marketing expenses as countermeasures. It is more than double the expenses in the same period last year. This is because we clearly understand the investment opportunities, so we are investing in them. The reason we started the investment business in 2019 was to quickly incorporate it into the growth of our software. Once the investment business generates sales and profits, we will incorporate that growth culture into the software business. This is the basic idea for me. First, we need to secure the atoms. That is marketing. Marketing, too, is not the same as traditional advertising, especially radio waves, which are said to be inefficient these days. We are going to try newer areas that are effective for AI. I would like you to understand this structure. We will invest firmly in our software and the transformation brought about by this asset hook. I would like you to understand that this structure is designed to steadily grow the software business without being overly optimistic and without failing to deliver results. Yes, that concludes my answers. Thank you very much. Next, we have a question about general administrative expenses. Please explain the reasons for the significant increase in depreciation, general administrative expenses, and general administrative expenses in the first sales period. Also, expenses increased more than sales, resulting in a slight decrease in segment profit for software. Is this temporary? That is all. Thank you for your question. Well, this is related to the previous question. As I mentioned in my explanation, the question is about anti-management expenses. The main factor behind the significant increase in anti-management expenses is marketing expenses, public liability expenses. These are more than double the expenses for the same period last year. The second thing I explained is payment fees, et cetera, which are due to a significant increase in the number of shareholders. Yes. The number of shareholders has increased from about 10,000 to about 17,000, and the handling fees for these shares have increased significantly, which is a factor. Expenses increased more than sales, which is exactly what we are seeing now, but the answer is that this is temporary. As you can see, this slight decrease is JPY 160,000. Well, to put it simply, it is almost break-even, but we have been keeping an eye on profits and software alone to make sure it does not go into the red. However, this is temporary, and temporary events like this are possible in order to continue growing the software business. We were aiming for a small amount this time, but with this AI revolution, we may take a more temporary step. That is because we have the resources. Rather than hoarding them, we are investing them, so we are going to grow the software business and increase sales in this new area. We think this is a very important milestone, so we will continue to operate with this policy in mind. Thank you for your question. Next question. How much were the original sales of the prospective customer? That is all. Yes, thank you for your question. The sales of this prospective customer. Since this is a subject matter, I cannot tell you the original sales. However, since joining the Asteria group, the details now clearly state the sales per Click. From here on out, we can track it properly. Furthermore, super-fast AI will be introduced in the future. We would like you to try looking at the future growth on a quarterly basis. That concludes my answer. Thank you very much. The next question is, will you no longer release annual plans? When will sales reach JPY 10 billion? That is all. Yes, thank you for your question. We do not call it an annual plan, but as a medium-term management goal, we have clearly set the target for sales and profit growth. We have set the target for sales to increase by 8% to 12% each year, and for adjusted EBITDA to increase by more than 25%, so we will achieve these targets every year. It is not just the numbers, but also the measures. Four measures for each product service, and four sales and marketing inspections. We will also make sure to provide this information, and as I mentioned at the time of the financial results announcement in May this year, we will track this by conducting a review. Reaching sales of JPY 10 billion is of course a goal, but this three-year plan, which is about 12%, will not reach that point. However, we will not only rely on organic growth but will also steadily incorporate M&A in the future, so I cannot tell you when we will achieve this at this point, but we are firmly aiming for sales of JPY 10 billion. That concludes my answer. Thank you. Next, we have a question about the light office. Could you quantitatively explain the effects of the Karuizawa Resort Office? That concludes. Yes, this is a question about the Karuizawa Resort Office. Thank you. The Karuizawa Resort Office has finally reached its third anniversary. As for the effects, various effects have been achieved. This is one of the bases for how we can transform our productivity into creative performance as part of our wellbeing. First of all, regarding the utilization rate, the occupancy rate is over 70%, which means that this resort office is being used a lot. This utilization is not only by our employees, but also by our partners who sell our products and do related business. They come to our office to listen to seminars about our products, watch demos, and then use them in their business. In this way, there is an effect of off-site work, and it also serves as a base for more in-depth communication. Furthermore, there is a lot of competition for talent in terms of showing our wellbeing to the world. Now, when it comes to how to acquire talented people who can thrive in the AI native era, having a wellbeing mindset and a resort office are the reasons why people found or applied for this company. We are not only working to acquire better talent, not only for our employees and partners, but also for the sake of acquiring better talent. Three years on, we have seen very concrete results. Quantitatively, it is only over 70%, but we expect that this will actually lead to increased sales and profits, and new alliances. That concludes my answer. Thank you. Next, we have a question about the impact of corporate AI investment. There is talk that system investment is shrinking due to the acceleration of AI investment. Is this having any impact on Asteria? That concludes my answer. Yes, thank you for your question. System investment is shrinking due to the acceleration of AI investment. This is a challenge for the entire software industry, isn't it? Yes. AI makes many things possible, so there is a trend toward charging for AI and reducing system investment. There are increasing numbers of things that people don't need to do. In this regard, we are completely reviewing not only the industry itself but also ourselves, from the perspective of asset hooks, to figure out how to increase value and improve competitiveness. If we don't change, the impact will be enormous, especially on human resources. This is not limited to us, but will also affect many other service providers, not just SIer and SES that make up the software industry in Japan. The impact will be on human resources. SES, engineers, and dispatch companies are already starting to be greatly affected. We have reached a point where the software industry truly needs to be reborn. Therefore, we are working to secure hooks that are not software-only but cannot be replaced by AI. If we were simply trying to make a living, we could continue with our current strategy, but we are aiming for major growth. We are also aiming for overseas markets. So, we will seize this change and take on new territory and new growth. If we dig in, the impact will be huge. However, we will use this change as our weapon. We will grow significantly. That concludes my answer. Thank you very much. The next question is, "We have many points of contact with Pegasus people, but is it possible to have Pegasus people become our leaders?" That is all. Yes, thank you for your question. Well, having Pegasus people become our leaders is basically not realistic. That is because Pegasus people are basically companies that invest in unlisted companies. They are venture capital, so it is not the case that they will be given a large share. However, in terms of cooperation, we have had an external supervisor who has been working for a long time. We have a supervisor named Anis Uzzaman, and we cooperate widely in investment business through such means. That concludes my answer. Thank you very much. The next question is about IR activities. "How about further strengthening IR activities, including overseas investment?" That's all. Yes, thank you for your question. Well, it's not really a question, but rather an opinion. Regarding IR activities that include overseas investment, you are certainly right, and we think so too. In fact, last year and the year before, I went to Singapore and gave explanations myself. Last year, I was facilitating a gathering of family offices in Austria, where I gave pitches and other activities. In Japan, there are not many cases where representatives give presentations or explanations in English, so it seems that information is often obtained through professionals. We have staff who can directly handle overseas investments, so we are currently focusing on overseas disclosure, and regarding IR, we actually have plans to travel overseas for several periods in the latter half of this year to talk to investors. If you have any further ideas, please let us know. Yes, that's all for your opinion. Next question. "I don't think there's anything to worry about, but are you considering any TOB countermeasures?" That's all. Yes, thank you. Regarding your question about TOB countermeasures, at the moment, we have not implemented any special TOB countermeasures, such as golden shares or special arrangements. After all, the fundamental idea of this company is to avoid introducing anything that would create inequality among shareholders. On top of that, in order to prevent any TOB from happening that goes against our wishes, we will communicate firmly with our shareholders and the market, and also produce results, so that we can avoid situations such as activists who speak out or situations where the stock price is so low that it looks like we're trying to decipher the issue. We believe that this is the most important thing, so at the moment, we are not considering anything special. That concludes my explanation. Thank you. Next, we have a question about SpaceX shares. The valuation of SX shares has been announced this time, but does it include the valuation amount when the investment was made and now, and does it also include the exchange rate?" That's all. Yes, thank you. The question is whether the figures for SpaceX include exchange rates. Yes. This is because there are differences due to the annual financial statements, so rather than expecting it is more like it includes it. At the time of investment, it was around JPY 115. Now, it is around JPY 160, but the base at that time was in dollars. Everything is calculated, and when our company's performance and financial statements are finally calculated, that is where it is calculated, so the answer to your question is yes. Since the purchase price fluctuates, the dollar valuation is changed each period and reflected in the financial statements. That is the answer. Thank you. The next question is I think the experience I gained when I held Gorilla shares a few years ago is useful in my current investment business. Please tell us if there are any areas where the handling of SPX shares, which went public this year, has improved compared to the past. That is all. Yes. Thank you for your question. I assume you are a long-time shareholder. The question is whether the experience you gained at Gorilla has been useful. Yes. In terms of the areas where we have improved, or rather, the areas where we have differed, we have certainly learned from Gorilla. Listed stocks tend to have large volatility fluctuations. This goes without saying, but when we were working on SpaceX this time, we paid close attention to this. That is why we sold our shares just before the IPO. That is what we disclosed on June 9th. We sold some of our shares just before the IPO, and we have already recovered a portion that far exceeds our investment amount. So no matter how much SpaceX goes up in the future, we were able to get the IPO in a position where we will not lose anything. This is the biggest difference from Gorilla. Yes. And furthermore, regarding the sale, only the part that was actually carried out will be made public, but the considerations are much more detailed than when we were working on Gorilla, so these internal discussions are also being carried out with the experience we gained at Gorilla. That concludes my answer. Thank you. Next, we have a question regarding the new investment in GU Air. There was a press release stating that we are investing in Figure AI, but will Asteria also be working on the humanoid business? That is all. Yes. Thank you for your question. First of all, thank you for your question regarding the new press release. Figure AI. There may not be many people in Japan who know about this company yet, but when it comes to humanoids, the first company that comes to mind is Figure AI. In terms of the humanoid business, we are not in the business of creating humanoids themselves. We are in the business of utilizing humanoids for companies. This humanoid ID, of course, has hardware and basic software, but in order to apply it to various companies and various purposes, applications are necessary, and collaboration with corporate systems is also necessary. We will be in charge of these areas, and our position is to connect humanoids. That concludes my statement. Thank you. Now for the last question. Will you continue to target well-known companies like Figure AI for investment with the new fund? That is all. Yes. Thank you for your question. Thank you for letting me know that Figure AI is a well-known company. Yes. It is not like we are investing in them just because they are famous. This is our direction. We have a foundation called 4D, and within that, this fund specializes in AI and robotics, or so-called physical AI. So we look for companies that align with this, that align with our direction, and that we can collaborate with in the future. Whether a company is well-known or unknown does not really factor into our decision. For example, unmanned aerial vehicles. This is also one of our investments, and while it has become quite well-known now, it was not a very well-known company when we invested. Of course, we do look for companies that will grow in the future, but that does not mean we are just looking for them because they are well-known. Thank you very much. That concludes the Q&A session. Thank you very much to all the investors for your many questions. Finally, I would like to ask Mr. Hirano, Representative Director and President, to give a few words of greeting. Mr. President, please. Yes. Everyone, thank you very much for joining us at this Daiichi Corp financial results briefing today. This time, we are only a quarter into the full fiscal year, so it has only just begun, but we are already stepping on the gas in a new direction in this new fiscal year. In today's announcement, we have included a brief summary of what has happened in the past three months and the latest developments. We would like to gain the understanding of our investors and shareholders regarding this new direction, and we would like to ask for their guidance and support as we take on new challenges. As was mentioned in the previous question, the software industry is undergoing a major wave. It is truly a situation similar to the arrival of the internet, or the arrival of new things such as mobile, which are pushing companies further away and creating new opportunities. In this context, how can our business, centered around Japan, and not just Asteria but the Japanese software industry as a whole, create value? This is a truly important issue. We have the expertise to connect these areas, and we will continue to connect new things by leveraging our areas of expertise. We already have over 10,000 corporate clients, and we believe that these companies will continue to demonstrate greater value in an AI-native society and make further transformations, and we would like to continue to support them by utilizing our technology, products, and services. This is a report on the first trial period, but please look forward to the second, third, and subsequent trials, and we would appreciate your continued guidance and support. Thank you very much for your time today.