Growth Strategy Through Business “Pruning” and “Creation”

「Against this backdrop, based on the three-year medium-term plan beginning with the fiscal year ending October 2024, we are pursuing initiatives to enhance shareholder and corporate value and laying the groundwork for our growth strategy.」

「To adapt to change amid an uncertain economic environment, the company formulated a medium-term management plan and will work to achieve business growth and secure stable earnings by implementing its medium- to long-term growth strategy of “growth and deepening,” through structural reform of existing businesses and the creation of new services and businesses.」

「Amid this environment, the company announced a 3-year medium-term plan beginning in the fiscal year ending October 2024 and is implementing measures to enhance shareholder value and corporate value, as well as initiatives supporting its growth strategy.」

「Our group positioned its medium-term management plan as “the starting line for moving toward a new stage” and formulated it under the basic policy of “Plus１—Initiatives for Growth and Deepening—.” The specific measures in the medium-term management plan are “growth strategy,” “individual and organisational growth,” and “strengthening the management base.”」

「Amid this economic environment, the company announced a 3-year medium-term plan beginning in the fiscal year ending October 2024 and is implementing measures to enhance shareholder value and corporate value, as well as initiatives supporting its growth strategy.」

「Amid this environment, the company announced a 3-year medium-term plan beginning in the fiscal year ending October 2024 and is implementing measures to enhance shareholder value and corporate value, as well as initiatives supporting its growth strategy.」

「The company will work to achieve business growth and secure stable earnings by implementing its medium- to long-term growth strategy of “growth and deepening,” through structural reform of existing businesses and the creation of new services and businesses.」

「In the ICT business for beauty salons, the company is growing system sales (product sales) as an earnings pillar while expanding new subscription-based services such as maintenance and content.」

「In the ICT business for beauty salons, the company is consolidating system sales (product sales) as an earnings pillar while expanding new subscription-based services such as maintenance and content.」

「In addition to content such as the Salon Appli smartphone app, “Google で予約 (Reserve with Google)” and the integration with Rakuten Super Points, which have driven the development of its subscription-based recurring-revenue business, the company began sales of the new content “LINE Mini App integration” in January 2023 and will further accelerate the transition to subscription-based services.」

「The company will pursue the continuous improvement of and creation of added value for the content that forms a core earnings pillar, as well as the expansion of new services that are beginning to gain traction and the development of additional new services.」

「In its subscription-based recurring-revenue business, sales of content such as the Salon Appli smartphone app, “Google で予約 (Reserve with Google)” and the integration with Rakuten Super Points, which have driven the transition to subscription-based services, grew steadily. In addition, the company launched the new subscription-based product “BEAUTY WORKS” in February 2022. As a result, performance exceeded both the results for the same quarter of the previous year and the initial outlook, and segment profit substantially exceeded that of the same quarter of the previous year. The company has also begun developing new content to help improve the profitability of beauty salons. It will continue to further accelerate the transition to a subscription-based recurring-revenue business.」

「Going forward, in addition to content such as the Salon Appli smartphone app, “Google で予約 (Reserve with Google)” and the integration with Rakuten Super Points, which have driven the transition to subscription-based services, the company began sales of the new product “BEAUTY　WORKS” in February 2022 and will further accelerate the transition to a subscription-based recurring-revenue business.」

「In the ICT business for beauty salons, the company is promoting a subscription-based recurring-revenue business for content that matches beauty salons with their customers, while shifting its earnings pillars away from POS system sales (product sales), and is moving toward a cumulative-revenue model (subscription model).」

「In the ICT business for beauty salons, the company is steadily shifting its earnings pillars from system sales (product sales) to maintenance, content and new subscription-based services. System sales (product sales) were affected by order postponements and the suspension of face-to-face sales amid the COVID-19 pandemic, resulting in sales below forecast, but sales are gradually recovering.」

「The company will steadily shift its earnings pillars from system sales (product sales) to maintenance, content and new subscription-based services.」

「Our group will pursue a “new growth strategy focused on increasing the number of customers.” It will also set out the following 2 priority objectives to respond to the “new normal,” which has changed significantly as a result of the COVID-19 pandemic.」

「There were no material changes to the management policy or management strategy established by our Group during the nine months ended December 31.」

「Our group has adopted the transition to a new growth strategy as its theme, strengthened the acquisition of new customers through user referrals and enhanced web marketing, and is working to secure stable earnings by promoting its subscription-based recurring-revenue business.」

「In its medium-term plan, our group will begin in the fiscal year ending October 2020 to implement its two highest-priority measures under the theme “transition to a new growth strategy focused on profits”: (1) strengthening the acquisition of new customers by turning existing users and prospective customers into referral partners and promoting web marketing; and (2) securing stable earnings by transitioning through the promotion of a subscription-based recurring-revenue business to a cumulative-revenue business model proportional to the number of users.」

「There were no material changes to the management policy or management strategy established by our Group during the nine months ended December 31.」

「In its medium-term plan, our group is pursuing company-wide user satisfaction by identifying user needs and sharing information under the theme “Marketing ＆ Innovation,” and will drive growth through focused business investment.」

「In particular, the ICT business for beauty salons, its core business, is expected to grow faster than the current business model through the development of a web marketing solution business model targeting salon customers as well, and the company will continue to promote the transition to a subscription-based recurring-revenue business model.」

「In its core ICT business for beauty salons, our group focused on upgrading its sales management system for beauty distributors and selling customised versions to individual companies, as a stepping stone toward developing a “BtoBtoC” business connecting beauty distributors, beauty salons and consumers through the use of smartphone apps, one of its growth strategies. However, progress toward seeing the effects of these initiatives has taken longer than originally planned.」

「To advance the development of the growth strategy set out in its medium-term plan, our group operates 3 businesses under the keywords “decluttering” and “creation”: the ICT business for beauty salons, the Business Services business for small and medium-sized enterprises, and the nursing care services business.」