Dependence on Core Services and Diversification of Revenue Sources

「At present, Kanamic Cloud Services account for a large proportion of total revenue, and the Company is dependent on these services.」

「In addition to services relating to Web service planning and development using the Ruby language, beginning with the current interim consolidated accounting period, the Company has provided THE WORLD MANAGEMENT PTE LTD, which has been included in the scope of consolidation, with consulting and maintenance services for the implementation of back-end systems, including sales management, inventory management and accounting management, and」

「The Group provides Kanamic Cloud Services, Platform Services, Healthy Life Expectancy Extension Services, Solution Services and other services. At present, Kanamic Cloud Services account for a large proportion of total revenue, and the Group is dependent on these services. If Kanamic Cloud Services, currently its principal service, diverge from customer needs or the Group loses its competitive advantage, this could have a material impact on the Group's business and results. To mitigate this risk and establish a more stable structure through greater revenue-source diversity, the Group is actively working to expand its Platform Services and Healthy Life Expectancy Extension Services and develop new services that can become additional core businesses.」

「This service represents the results of Web service planning and development at 株式会社Ｒｕｂｙ開発, which has been included in the scope of consolidation since the fourth quarter of the previous fiscal year. As the deemed acquisition date of the company was 31 August 2023, its results have been consolidated since the fourth quarter of the previous fiscal year. As Web service planning and development performed well, revenue was ¥281,354 thousand.」

「Beginning with the first quarter of the current fiscal year, the Healthy Life Expectancy Extension Service within the Cloud Platform Business reporting segment has been presented as a new reporting segment, named the Healthy Life Expectancy Extension Business. The service uses physical retail locations, has become quantitatively significant, and is expected to continue expanding, so the information relating to it is shown separately and clearly. Accordingly, the former Cloud Platform Business has been renamed the Medical and Long-Term Care Cloud Platform Business to better reflect its actual operations.」

「This service comprises the performance of Urban Fit, which has been included in the scope of consolidation since the third quarter of the previous fiscal year, specifically its fitness gym operations and franchise business. As Urban Fit's deemed acquisition date was 30 June 2022, its performance has been consolidated since the fourth quarter of the previous fiscal year. As the fitness gym operations and franchise business performed well, net sales amounted to ¥845.729 million, an increase of ¥594.770 million, or 237.0%, from the previous consolidated fiscal year.」

「Healthy-longevity services comprise the performance of Urban Fit, which has been included in the scope of consolidation since the end of the third quarter of the previous consolidated fiscal year, specifically its fitness gym operations and franchise business. As Urban Fit's deemed acquisition date was 30 June 2022, its performance has been consolidated since the fourth quarter of the previous fiscal year. As the fitness gym operations and franchise business performed well, net sales amounted to ¥588.813 million.」

「As Urban Fit's deemed acquisition date was 30 June 2022, its performance has been consolidated since the fourth quarter of the previous fiscal year. As the fitness gym operations and franchise business performed well, net sales amounted to ¥384.390 million.」

「Healthy-longevity services comprise the performance of Urban Fit, which has been included in the scope of consolidation since the end of the third quarter of the previous consolidated fiscal year, specifically its fitness gym operations and franchise business. As Urban Fit's deemed acquisition date was 30 June 2022, its performance has been consolidated since the fourth quarter of the previous fiscal year. As the fitness gym operations and franchise business performed well, net sales amounted to ¥180.564 million.」

「Kanamic Cloud Services is primarily a subscription-based business. By continuing to acquire new customers on the basis of recurring revenue from existing customers, net sales amounted to ¥1,508.078 million, an increase of ¥141.365 million, or 10.3%, year on year. Net sales from platform services were ¥80.369 million, down ¥41.440 million, or 34.0%, year on year. Other services included commissioned customized development for major customers, but because the development period was lengthy, no revenue was recognized during the cumulative third quarter of the consolidated fiscal year, and net sales were ¥39.455 million, down ¥27.370 million, or 41.0%, year on year.」

「Kanamic Cloud Services is primarily a subscription-based business. By continuing to acquire new customers on the basis of recurring revenue from existing customers, net sales amounted to ¥991.181 million, an increase of ¥98.115 million, or 11.0%, year on year. Net sales from platform services were ¥47.842 million, down ¥47.247 million, or 49.7%, year on year. Net sales from other services were ¥29.306 million, down ¥25.795 million, or 46.8%, year on year.」

「Kanamic Cloud Services is primarily a subscription-based business. By continuing to acquire new customers on the basis of recurring revenue from existing customers, net sales amounted to ¥486.939 million, an increase of ¥51.528 million, or 11.8%, year on year. Platform services included website development commissioned by major nursing-care operators, commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care, internet advertising services offering nursing-care-related information, and sales of COVID-19 countermeasure products through an information-sharing platform. However, competition in COVID-19 countermeasure products intensified and sales of related products fell substantially, resulting in net sales of ¥24.011 million, down ¥43.438 million, or 64.4%, year on year. Other services included commissioned customized development for major customers, but because the development period was lengthy, no revenue was recognized during the cumulative first quarter of the consolidated fiscal year, and net sales were ¥8.293 million, down ¥22.318 million, or 72.9%, year on year.」

「The Company provides Kanamic Cloud Services, platform services and other services, but Kanamic Cloud Services currently accounts for a large proportion of total net sales, and the Company is dependent on the service.」

「Platform services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides various services, including internet advertising services offering nursing-care-related information and sales of COVID-19 countermeasure products through an information-sharing platform, resulting in net sales of ¥121.810 million, up ¥62.736 million, or 106.2%, year on year. Other services, including commissioned customized development for major customers, generated net sales of ¥66.825 million, down ¥12.490 million, or 15.7%, year on year.」

「Kanamic Cloud Services is primarily a subscription-based business. By continuing to acquire new customers on the basis of recurring revenue from existing customers, net sales amounted to ¥893.065 million, an increase of ¥85.586 million, or 10.6%, year on year. Platform services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides various services, including internet advertising services offering nursing-care-related information and sales of COVID-19 countermeasure products through an information-sharing platform, resulting in net sales of ¥95.090 million, up ¥62.462 million, or 191.4%, year on year. Other services, including commissioned customized development for major customers, generated net sales of ¥55.101 million, down ¥13.589 million, or 19.8%, year on year.」

「As part of the Group's future business strategy, the Company plans to expand its platform business as a whole, including content services.」

「As part of the Group's future business strategy, the Company plans to expand its platform business as a whole, including content services.」

「As part of its future business strategy, the Company plans to expand its platform business as a whole, including content services.」

「Other services, including customized development for major customers and support for the creation of IoT services, remained firm, but net sales were ¥90.944 million, down 34.2% from the previous fiscal year.」

「This was primarily due to an increase in the number of contracts for the Company's core services, Kanamic Cloud Services and content services.」

「Net sales for the cumulative second quarter increased by ¥70.015 million from the same period of the previous year to ¥832.509 million. This was primarily due to an increase in the number of contracts for the Company's core services, Kanamic Cloud Services and content services.」

「Kanamic Cloud Services currently accounts for a large proportion of total net sales, and the Company is dependent on the service. To build a more stable operating structure through greater revenue diversification, the Company is actively expanding its content services and developing new services and businesses that can become additional core operations.」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides internet advertising services offering nursing-care-related information」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides internet advertising services offering nursing-care-related information」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides internet advertising services offering nursing-care-related information」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides internet advertising services offering nursing-care-related information, resulting in net sales of ¥29.246 million.」

「Content services comprise a stable revenue base of website development commissioned by major nursing-care operators, as well as commissioned website production, operation and management for nursing-care businesses through the Public Interest Incorporated Foundation Center for Employment Stability in Nursing Care. The Company also provides internet advertising services offering nursing-care-related information, resulting in net sales of ¥13.152 million.」

「Kanamic Cloud Services currently accounts for a large proportion of total net sales, and the Company is dependent on the service. To build a more stable operating structure through greater revenue diversification, the Company is actively expanding its content services and developing new services and businesses that can become additional core operations.」