NEXYZ.Group <4346> offers a service called "Nexyz ZERO" which allows the introduction of equipment with an initial investment of 0 yen, while its subsidiary Branjista <6176> is developing a Broadcasting and promotion business. The segments are divided into two: the Embedded Finance business deploying "Nexyz ZERO" (80.4% of revenue composition for the fiscal year ending September 2024) and the Broadcasting and promotion business (19.6% for the same period).

"Nexyz ZERO" provides the latest equipment such as LED lighting with an initial investment of 0 yen. For instance, by introducing LED lighting through this service, companies can fully convert their stores and facilities to LED by paying a fixed monthly fee that covers everything from on-site surveys to construction and aftercare. LED lighting is just one example; the company offers a lineup of over 0.5 million products from 200 manufacturers worldwide, allowing customers to introduce various latest equipment without initial investment. The service caters to a wide range from restaurants/factories/hotels with air conditioning equipment, refrigeration equipment, water supply equipment, payment devices, and environmental equipment, to local governments and public facilities, including the switch to LED security lights in Hakone, Kanagawa Prefecture. The company has also contracted with the American Department of Defense to introduce the latest equipment at U.S. military bases in Okinawa.

The number of installations of "Nexyz ZERO" has exceeded 107,391, which is more than double that of convenience stores, totaling 0.1 million. Furthermore, about 90% of the revenue breakdown comes from Attached Orders, referrals, and WEB inquiries, while new business only accounts for 11.5%. Recently, partnerships with financial institutions have been accelerated to actively acquire referral projects, and the number of partner financial institutions has exceeded 100. Features of projects from financial institutions show that revenue per contract is typically 1.37 times higher and the cancellation rate is less than half. Additionally, when referrals are made from financial institutions, the company’s sales personnel accompany the visits and strive to listen to the clients' genuine feedback.

In the Broadcasting and promotion business, support for the promotion of "Axle Japan" and media operations are being developed, particularly with Axle Japan being a key aspect. "Axle Japan" can also conduct promotions using famous talents with an initial cost of 0 yen and monthly fees starting at 0.4 million yen. The company has been operating the electronic magazine "Tabi-iro" since 2018 and has built strong relationships with over 330 actors and entertainment agencies. It seems that the long-standing strengths in casting, creativity, and sales are effectively utilized in Axle Japan, allowing it to grow with a significant competitive advantage over rival services. Additionally, as stable income is generated each month, this business model is valuable to the company, businesses, and talents alike.

For the fiscal year ending September 2024, the revenue increased by 11.6% year-on-year to 24,497 million yen, while operating profit soared by 55.2% to 1,189 million yen. In the Embedded Finance business, the strengthening and expansion of partnerships with financial institutions have steadily increased project introductions, resulting in revenue hitting record highs since inception. In the Broadcasting and promotion business, "Axle Japan" has achieved sales on a national scale, while advertising revenue from private companies for the main electronic magazine "Tabi-iro" has also increased, leading to record revenue and profits for two consecutive periods. For the fiscal year ending September 2025, revenue is expected to increase by 4.1% year-on-year to 25,500 million yen, with operating profit anticipated to rise by 26.1% to 1,500 million yen.

With 99.7% of Japan recognized as small and medium enterprises, the company supports the growth of such businesses. In the future, the Embedded Finance business aims to strengthen its lineup for agricultural and industrial equipment, targeting a market size of 17 trillion yen in equipment investment for small and medium enterprises. A point to watch for is the revenue recognition, which involves both lump-sum recognition and installment recognition, with lease receivables totaling about 3.2 billion yen as of the end of September 2024. While accumulating stable income from receivables, decisions on liquidating based on market trends will be made, and the projected additional profit from liquidation is about 1 billion yen, making the execution phase of liquidation worth watching. Additionally, in the Broadcasting and promotion business, "Axle Japan" still receives most applications through advertising and has not implemented PUSH-type sales. By strengthening PUSH-type sales to approach numerous potential clients nationwide, the company plans to expand its untapped potential customers, thereby increasing revenue and profits. Furthermore, in terms of shareholder returns, dividends per share are expected to be 20 yen, with plans to ensure long-term stable dividends while considering future growth investments and financial soundness. The company's future prospects, which are likely to continue a growth trend through its Embedded Finance and Broadcasting promotion businesses, deserve attention.