Financial Quality & Underwriting

Translate IM financial tables into decision-grade profitability and risk view
Focus on earnings quality, cash backing, and what is truly repeatable
¥696,440K
FY2023 Revenue
21.3% YoY vs FY2022
¥267,143K
Adj. EBITDA
Post add-back view
58.8%
Gross Margin
Improved mix quality
4.7x
Entry EV / EBITDA
After net cash adjustment

Historical P&L Progression (¥K)

MetricFY2020FY2021FY2022FY2023
Revenue682,309555,960574,328696,440
Gross Profit301,187277,357307,192409,718
Gross Margin44.1%49.9%53.5%58.8%
Operating Profit47,99825,15755,231128,533
Adjusted EBITDA163,267117,229153,250267,143
EBITDA Margin23.9%21.1%26.7%38.4%
Interpretation: FY2023 shows both scale recovery and margin expansion, indicating mix and operating leverage improvements rather than pure accounting noise.

Segment Economics (FY2023/FY2024E)

SegmentFY2023FY2024EShare FY2024E
Sales & Installation388,425409,53455.9%
Maintenance237,789249,78934.1%
Repair Work67,91869,4589.5%
Other3,5553,5550.5%

Quality Line: Maintenance

1,174 active contracts and ~75.9% gross margin make maintenance the key quality-of-earnings driver.

Volume Line: Install

Installation remains the entry point for growth; value is unlocked when those projects convert to service contracts.

Balance Sheet and Entry Math

ItemValue (¥K)Comment
Cash + Deposits296,012Provides immediate liquidity and downside resilience
Total Debt48,125Low leverage profile relative to earnings base
Net Cash247,887Supports effective entry de-risking
Asking Equity Value1,500,000Seller headline figure
Implied Enterprise Value1,252,113After net cash adjustment

Normalization and DD Discipline

Valid Normalization Intent

  • Strip owner-specific compensation and one-offs
  • Isolate repeatable operating earnings
  • Tie adjusted EBITDA to cash conversion reality

Required DD Standard

  • Tag each adjustment: reported / assumed / verified
  • Reject unproven upside add-backs
  • Reconcile with payroll, tax, and bank statements
VC translation: do not pay growth multiples for adjustments that are not evidence-backed.
KOYO — FINANCIAL QUALITY & UNDERWRITING