Expansion of the e-marketing business through the acquisition of the CLOCK・COMMUNICATIONS business

「During the first quarter consolidated accounting period, we newly acquired shares in 日本テレホン社. As it became a subsidiary under the effective control standard, it was included in the scope of consolidation.」

「As a result of our subscription for the new shares, we acquired 40.24% of the voting rights of 日本テレホン社. In addition, because the capital and business alliance created a situation in which we could exercise effective control over the company's Board of Directors, its decision-making body, 日本テレホン社 became our subsidiary.」

「The group now has 2 consolidated subsidiaries: 株式会社レーザービーム, whose core business is HR, and 株式会社Showcase Capital, which operates an investment business.」

「During the nine-month consolidated accounting period, as announced on 19 July 2018, 株式会社アクル and galaxy株式会社, formerly consolidated subsidiaries, were removed from the scope of consolidation, while 株式会社インクルーズ changed from a consolidated subsidiary to an equity-method associate. In addition, effective 19 July 2018, we acquired shares in 株式会社レーザービーム, which had acquired the neconote business on 1 January of the same year, and made it a consolidated subsidiary.」

「At a Board of Directors meeting held on 19 July 2018, we resolved to transfer all shares in our subsidiary galaxy株式会社 to its representative director and entered into a transfer agreement on the same date.」

「During the consolidated fiscal year, we actively invested in companies including プラスワン・マーケティング株式会社, which manufactures and sells smartphones under the FREETEL brand; BPLATS,Inc., which provides solutions supporting subscription businesses; リアルワールドゲームス株式会社, which provides location-based gaming services; 株式会社スペースエージェント, which operates the vacation-rental property website 民泊物件.com; and Israeli company Articoolo Research Ltd., which provides an AI-powered automated article-writing service.」

「During the third quarter consolidated accounting period, we actively pursued investments through M&A and capital and business alliances, including making galaxy株式会社 a wholly owned subsidiary, acquiring a business from 日本移動体通信株式会社, and establishing Showcase Capital, a subsidiary primarily engaged in the venture capital business. Accordingly, investment activities were added as a reportable segment from the third quarter consolidated accounting period.」

「During the second quarter consolidated accounting period, 株式会社インクルーズ became a consolidated subsidiary through the acquisition of its shares, and we commenced the mobile content, game design and character businesses. Based on a resolution of the Board of Directors meeting held on 15 June 2017, we acquired the shares effective 1 July 2017.」

「Based on a resolution of the Board of Directors meeting held on 14 April 2017, we entered into a share transfer agreement with 株式会社インクルーズ on the same date and acquired the shares on 28 April 2017.」

「We intend to continue expanding our business and securing personnel through M&A and capital and business alliances.」

「In the e-marketing business segment, goodwill was recognised in connection with the acquisition of the business of 株式会社CLOCK・COMMUNICATIONS. The increase in goodwill resulting from this transaction amounted to ¥44.588 million during the nine-month period ended 31 December.」