Diversifying Revenue Sources

「From the next fiscal year onward, while using stable earnings from these existing businesses as a foundation, we will position the hotel conversion business, which supports the national strategy of making Japan a tourism-oriented nation, as a new core business that will drive future growth for the Group, and will promote it vigorously.」

「Our Group consists of the Company, a pure holding company, 22 consolidated subsidiaries and 2 equity-method affiliates. As a technology company that creates businesses in response to advances in infrastructure and technology and changing user needs, we operate more than 10 services and businesses, primarily in IT outsourcing and e-commerce. Our main business is currently IT outsourcing focused on the human resources and IT sectors, centered on our system engineering services business, or SES business, which primarily addresses the shortage of engineers in the IT human resources market.」

「In addition to the GameFi sector, we will develop new revenue sources in entirely new business areas.」

「As the CROS Group, we will continue investing in existing businesses and pursuing new business opportunities in order to create businesses that can become our second and third core businesses.」

「We decided to transfer the shares this time because we concluded that focusing on the SHOPLIST business and concentrating management resources on areas such as the media business and GameFi, which are expected to grow into the Group’s second and third core businesses, would contribute to growth across the Group.」

「As a result, more than 30 group companies currently operate multiple businesses in parallel, and businesses that appear capable of becoming the Group’s second and third core businesses are beginning to emerge.」

「In our other businesses, we are currently operating multiple businesses in parallel through more than 30 Group companies, and businesses that could become a second and third core business are beginning to emerge.」

「Against this backdrop, from the perspective of business selection and concentration, we determined that further growth could be achieved by concentrating management resources, including personnel, on Rankuō Inc., a business less than 1 year old but experiencing rapid growth, and decided to transfer its shares to HACK JAPAN.」

「In our other businesses, we are currently operating multiple businesses in parallel through more than 30 Group companies, and businesses such as advertising agency services and investment operations that could become a second and third core business are beginning to emerge.」

「As a key strategy going forward, we plan for the time being to fully invest profits and cash, within the limits that do not result in negative operating profit or net income, to maximize SHOPLIST sales, launch a second and third core business early, and maximize sales through M&A.」

「At the same time, to return significant value in the future to shareholders and investors, customers, employees, society and all other stakeholders, we have established as a key strategy the full investment of profits and cash for the time being, within the limits that do not result in negative operating profit or net income, to maximize SHOPLIST sales, launch a second and third core business early, and maximize sales through M&A.」

「At the same time, to return significant value in the future to shareholders and investors, customers, employees, society and all other stakeholders, we have established as a key strategy the full investment of profits and cash for the time being, within the limits that do not result in negative operating profit or net income, to maximize SHOPLIST sales, launch a second and third core business early, and maximize sales through M&A.」

「At the same time, to return significant value in the future to shareholders and investors, customers, employees, society and all other stakeholders, we have established as a key strategy the full investment of profits and cash for the time being, even at the expense of negative operating profit and net income, to maximize SHOPLIST sales, launch a second and third core business early, and maximize sales through M&A, with consolidated EBITDA at zero.」

「To return significant value in the future to shareholders and investors, customers, employees, society and all other stakeholders, we have adopted a policy of investing all profits generated by the Group for the time being in promotional expenses for existing businesses, acquisition funding for M&A and new businesses, in order to maximize sales at the Group's core fast-fashion e-commerce business, SHOPLIST.com by CROOZ (hereinafter, SHOPLIST), and achieve the early creation of a second and third core business.」

「To return significant value in the future to shareholders and investors, customers, employees, society and all other stakeholders, we have adopted a policy of investing all profits generated by the Group for the time being in promotional expenses for existing businesses, acquisition funding for M&A and new businesses, in order to maximize sales at the Group's core fast-fashion e-commerce business, SHOPLIST.com by CROOZ (hereinafter, SHOPLIST), and achieve the early creation of a second and third core business.」

「For the time being, we plan to invest all operating profit generated by the Group in maximizing revenue in order to accelerate the expansion of SHOPLIST's market share and the creation of a second and third core business.」

「We will concentrate management resources, including personnel and funds, on the e-commerce businesses centered on SHOPLIST, strengthen customer acquisition capabilities, sales channels and branding, focus on growing the SHOPLIST business and work to increase corporate value. We will also actively pursue new businesses and M&A leveraging our assets, creating a second and third core business.」

「We will concentrate management resources, including personnel and funds, on the e-commerce businesses centered on SHOPLIST, strengthen customer acquisition capabilities, sales channels and branding, focus on growing the SHOPLIST business and work to increase corporate value. As a Group, we will also actively pursue new businesses and M&A leveraging CROOZ's assets, creating a second and third core business.」

「Going forward, we will concentrate management resources, including personnel and funds, on SHOPLIST, strengthen its customer acquisition capabilities, sales channels and branding, focus on growing the internet commerce business and work to increase corporate value. We will also actively pursue new businesses and M&A leveraging CROOZ's assets, creating a second and third core business.」

「We have adopted the policy of transforming our business portfolio, essential to the Company's continued existence, and making SHOPLIST a leading brand in fast-fashion e-commerce. In November 2016, we transferred our internet content businesses other than ELSWORD (hereinafter, the game business), shifting our business structure from gaming to e-commerce as our core business. Going forward, we will concentrate management resources, including personnel and funds, on SHOPLIST and work to enhance its customer acquisition capabilities, sales channels and branding, thereby increasing corporate value. As announced with the acquisition of Candle, which operates the fashion curation media platform MARBLE, we will also actively pursue M&A to strengthen SHOPLIST.」

「Using the profits generated by SHOPLIST.com and the game business, we will actively pursue new businesses outside the gaming sector.」

「We believe it is important to continually seek new sources of revenue in the internet industry, where the services accepted by users change rapidly.」