To Our Shareholders and Investors

 We would like to express our sincere gratitude to our shareholders for their continued support. This is the report on the fiscal year ended March 31, 2025. .

 In FY2025, the Japanese economy showed signs of a gradual recovery due to improvements in the employment and income environment and the effects of various policies. However, the outlook for the economy has remained uncertain due in part to concerns over continued price hikes and the impact of U.S. tariff policies.

 In the pachinko parlor industry, which is the Group’s major customer, next-generation smart pachinko machines are becoming more prevalent, and machines with new playing potentiality are being introduced, including pachinko machine “Lucky Trigger” and slot machine “Bonus Trigger,” raising hopes for the industry’s revitalization.

 In the pachinko parlor advertising market, demand for advertising was sluggish, as evidenced by a sharp decline in demand for some online advertising from October 2023. In February 2024, the four pachinko industry organizations published “Advertising and Promotion Guidelines, second edition,” which made it possible to develop and sell advertising and services that contribute to attracting customers in accordance with the guidelines. As a result, there are signs of a gradual recovery in demand for advertising.

 In the advertising fields other than pachinko parlors, demand for advertising is still on an increasing trend, mainly in the mainstay fitness facilities and housing-related advertising fields.

 In this environment, the Group made efforts for recovery of online advertising from its sharp decline in the mainstay pachinko parlor advertising field. In the advertising fields other than pachinko parlors, we actively promoted the acquisition of clients in sectors with promising demand.

 Thanks to these efforts, net sales for FY2025 were ¥7,679 million (up 3.5% year on year), gross profit was ¥2,420 million (up 10.4% year on year), operating income was ¥418 million (up 68.0% year on year), ordinary income was ¥416 million (up 58.7% year on year), and net income attributable to parent company’s shareholders was ¥358 million (up 184.9% year on year).

 Based on these operating results, we have decided that the year-end dividend will be ¥10, and the annual dividend per share will be ¥20, including the interim dividend of ¥10.

Breakdown by Business Segment

Advertising Business

 In FY2025, the pachinko parlor advertising market was booming due to the spread of smart pachinko machines and the introduction of machines equipped with new functions, while spending on advertising expenses remained sluggish due to the need to secure capital investment funds. On the other hand, “Advertising and Promotion Guidelines, second edition” published in February 2024 by the four pachinko industry organizations clarified the scope of advertising methods and customer attraction support services, which had been ambiguous until then, to the extent practicable. As a result, online advertising, which had declined sharply since October 2023, is on the rebound.

 In this environment, the Group focused on the development and sales of advertising and services that contribute to attracting customers in accordance with the guidelines in the mainstay pachinko parlor advertising field. In addition, the Group focused on expanding sales with large margins from 3Q, including DSP advertising, to improve the gross profit margin. These services are penetrating the market and have led to continuous orders. On the other hand, demand for paper-based advertising including newspaper flyers, which has a large transaction volume, continued to decline.

 In the advertising fields other than pachinko parlors, we made efforts to increase revenue by promoting the acquisition of clients in the mainstay fitness facilities and housing-related advertising fields, as well as in the secondhand shop industry and the tutoring school industry.

 As a result, net sales were ¥7,619 million (up 3.8% year on year), and segment income was ¥695 million (up 37.9% year on year).

Real Estate Business

 In FY2025, the segment recorded rental income from the land in Kashiwa, Chiba Prefecture, owned by our consolidated subsidiary Land Support Inc., and ¥4 million in commission revenue from the delivery of rental brokerage properties.

 As a result, net sales were ¥56 million (down 18.4% year on year), and segment income was ¥19 million (down 34.1% year on year).

Others

 In FY2025, net sales were ¥3 million (down 52.1% year on year) and segment loss was ¥1 million (compared with a loss of ¥5 million in the same period of the previous fiscal year), mainly from the RV rental business operated by a consolidated subsidiary.

 The RV rental and storage businesses, which were test operations for research, were discontinued at the end of 1H.

Medium to Long-term Management Strategies

 The Group will ceaselessly pursue enhancement of the added value and productivity of its advertising services in the mainstay pachinko parlor advertising field and work to maximize profitability despite the adverse business environment. At the same time, the Group will continuously seek out new business opportunities and proactively work on business development to avoid excessive dependence on any particular industry and diversify its revenue sources in order to achieve sustained growth for the entire Group.

 The main strategic issues to be addressed in order to achieve sustained growth are as follows.

1. Develop markets in fields other than pachinko parlor advertising
2. Work to firmly establish digital media market for customer-drawing commercial facilities
3. Expand business domain

 As we work to maximize our corporate value, we will disclose information to all of our shareholders and investors in a proactive and timely manner and follow a policy of providing returns to shareholders that reflect our business performance.
 We look forward to your continued understanding and support.