Focused Allocation of Funds from the Sale of Part of the ビービーエフ Stake to IoT, Big Data and AI

「In December 2021, we entered into a capital and business alliance agreement among FCJ 1 Co. Ltd., established and managed by Farallon Capital Management L.L.C and its affiliates for the purpose of investing in us and forming a capital and business alliance with us, 株式会社キャピタリンク・パートナーズ and 株式会社インターネット総合研究所. We are preparing to enter the hyperscale data center business and, in connection with this entry, are promoting an asset-light business model in the data center business.」

「In these circumstances, after considering our future business strategy, we decided to abandon additional support for 株式会社IoTスクエア and transfer all shares we owned to 株式会社インターネット総合研究所, because it was necessary to concentrate management resources on the new data center.」

「Our group is proceeding with a restructuring of its business portfolio and selective allocation of resources among businesses. Specifically, in December last year (Heisei 30), we decided to make 株式会社ティエスエスリンク a subsidiary through a share exchange to expand our service platform. In the IoT/AI Services segment, we resolved in December of the same year to transfer all shares in our consolidated subsidiary 株式会社IoTスクエア.」

「The Group has designated these markets as growth areas, is concentrating its resources selectively, and is working to strengthen existing businesses and develop new ones.」

「Our group has designated these markets as growth areas, selectively allocating resources among businesses while strengthening existing businesses and developing new ones. Specifically, in September and October last year (Heisei 29), we acquired additional shares in ジャパンケーブルキャスト株式会社 (hereinafter, JCC), making it a consolidated subsidiary. In addition, in October last year, we established 株式会社IoTスクエア through an incorporation-type company split to conduct IoT, consumer and other new businesses. Because we transferred part of our stake in 株式会社ビービーエフ, formerly an equity-method affiliate, in December last year, the company is no longer within the scope of equity-method accounting.」

「As part of this effort, we are investing the funds obtained from the partial transfer of BBF's issued shares, which have contributed to the consolidated performance of our Group, in creating new businesses such as IoT, big data and AI and strengthening our existing data center-centered businesses. We will evolve into a company that provides mechanisms for collecting and disseminating information generated throughout society.」