Strengthening the product business and capital-intensive business

「During the fiscal year, we supported a customer in the pet industry in building a report-generation system using generative AI capabilities, and conducted a proof of concept, among other initiatives, to improve front-desk operations using voice AI for a customer in the hotel industry.」

「Total R&D expenditure during the interim accounting period was ¥11,975 thousand. This consisted of product development costs.」

「Total R&D expenditure for the fiscal year was ¥29,364 thousand. This mainly consisted of development costs for a headless CMS product.」

「Total R&D expenditure during the cumulative third quarter was ¥12,760 thousand. This mainly consisted of development costs for a headless CMS product.」

「To pursue a product-based business and strengthen capabilities in the DX field, we entered into a capital alliance with 株式会社Hexabase, headquartered in Chiyoda-ku, Tokyo, which provides a development platform for enterprise systems as a cloud service. Through collaboration with the company, we aim to expand the quality and scope of our existing website development business, create new business opportunities, and acquire and develop talent in engineering.」

「We will focus on standardizing our know-how so that diverse solutions can be deployed horizontally, combine SaaS-based services to improve efficiency, and enhance business profitability.」

「To mitigate seasonal fluctuations in performance, we will strengthen services expected to generate continuous activity and develop services that use tools, SaaS and other solutions less dependent on personnel utilization.」

「For new services, we established at the beginning of the fiscal year an organization supporting business development by customer companies with the aim of addressing social issues, and began providing services.」

「In addition to opening the new media platform “Slash App,” which introduces Shopify apps from Japan and overseas, we focused on developing our own apps and launched services including “Prize and Campaign Supporter,” which reduces the workload involved in shipping prizes and samples, “Popup Supporter,” which supports higher sales, and “Thank You Supporter,” a newly launched low-cost CRM solution.」

「As a new business area, during the third quarter we released the “Prize and Campaign Supporter” app on the Shopify e-commerce platform to reduce the workload involved in shipping prizes and samples.」

「As a new service, we launched the “Self-Support Assistance Service,” which reduces customer companies’ call center costs and improves customer LTV (Note 1) by creating a mechanism that enables users to resolve issues themselves when using online services and other services. We also strengthened support services centered on Pardot, the B2B marketing automation tool provided by 株式会社セールスフォース・ドットコム, and actively pursued initiatives in the new Shopify-related business area. In this business, we opened the “Slash App” site, a new media platform introducing Shopify apps from Japan and overseas, and began providing an integrated e-commerce service supporting the implementation and use of Shopify.」

「As a new business area, we have begun providing services supporting the implementation and use of the multichannel commerce platform Shopify, adopted by more than 1.7 million online stores in 175 countries worldwide.」

「We will work to secure a further foundation for growth by generalizing services and investing in capital-intensive businesses such as SaaS.」

「During the cumulative second quarter, we began providing the “Data Utilization Platform Construction and Operations Service,” which comprehensively manages and analyzes data within companies to improve customer experience. We also began developing the “DX Accelerator” jointly with 株式会社ABEJA, headquartered in Minato-ku, Tokyo, combining our expertise with AI technology.」

「We believe that maintaining multiple business models within the Group, including knowledge-intensive services, capital-intensive services that are not excessively dependent on the quality of personnel, and labor-intensive services in areas where talent is relatively easy to secure, is essential for medium- to long-term growth. We will actively develop products and services and pursue partnerships with external companies and M&A.」

「During the cumulative second quarter, we began providing the “Innovation Design Service,” which promotes collaboration in innovation activities across businesses and organizations within companies, and the “KPI Design Support Service,” which supports the development of metrics for evaluating companies’ digital marketing from business, UX and data perspectives. We thereby strengthened services supporting companies’ digital transformation.」

「The total R&D expenditure in the consolidated fiscal year was ¥4 million. This consisted of product development costs.」

「While continuing to implement the measures described above, we have begun providing new services, including “Customer Journey Analysis for PDCA,” a framework for visualizing typical consumer purchasing behavior patterns.」

「In addition to continuing to implement the measures described above, we are pursuing initiatives to make use of internal talent and improve workforce utilization, including controlling outsourcing costs and planning and developing short-lead-time services such as the “Simplified GDPR Compliance Survey Service.”」

「The quarterly consolidated statement of cash flows for the nine-month period of the current first quarter was not prepared. Depreciation and amortisation for the nine-month period of the first quarter, including amortisation of intangible assets other than goodwill, and goodwill amortisation are as follows.」

「We believe that relying solely on labor-intensive contracted services imposes certain limits on continuously improving margins. To achieve medium- to long-term sustainable growth, we are reviewing our service portfolio, including the development of capital-intensive proprietary services and the resale of other companies’ services, and pursuing measures to expand the business. In the consolidated fiscal year, these related services accounted for approximately 13% of the Group’s revenue. We will continue to develop new services and establish the necessary business structure.」

「The total R&D expenditure during the cumulative third quarter was ¥3 million. This consisted of product development costs.」

「The company’s consolidated subsidiary 株式会社トライバルメディアハウス released an iOS version of its lifestyle media platform, “Funmee!! (Funmee).”」

「The total R&D expenditure of the Group during the cumulative first quarter was ¥1 million. This consisted of product development costs.」

「The company began providing “Messenger Connector” (Note 1), jointly developed with its subsidiary 株式会社トライバルメディアハウス, while 株式会社トライバルメディアハウス launched its own media platform, “Funmee!! (Funmee!!)” (Note 2).」

「The total R&D expenditure during the cumulative second quarter was ¥19 million. This consisted of product development costs.」

「The total R&D expenditure of the Group during the cumulative first quarter was ¥3 million. This consisted of product development costs.」

「We regard diversifying revenue and improving margins as important issues to address over the medium to long term. We will actively pursue measures to expand the business, including developing new services and products in the social media and cloud sectors and strengthening capital-intensive businesses.」