Strengthening the Group Management Structure and Focused Investment in Expanded Business and Adjacent Areas

「In this business, on 30 September 2025 we acquired the shares of 第一電機設備工業株式会社, which has a long track record in electrical construction in Wakayama, making it a wholly owned subsidiary.」

「The Company is an operating holding company. At the end of the current consolidated fiscal year, the Company's corporate group consisted of the Company, 18 subsidiaries, including 3 non-consolidated subsidiaries, and 4 affiliated companies, including 3 affiliates not accounted for under the equity method.」

「Against this backdrop, the Group is focusing on expanding its 2 businesses: the Nexyz Zero business and the electronic media business.」

「Against this backdrop, the Group is focusing on expanding its 2 businesses: the Nexyz Zero business and the electronic media business.」

「Against this backdrop, the Group is focusing on expanding its 2 businesses: the Nexyz Zero business and the electronic media business. In December 2022, we formulated a medium-term management plan covering the fiscal years ending September 2023 through September 2025 and have been advancing initiatives to achieve it.」

「The Group divides its corporate organization and delegates authority in line with the units in which services are provided, thereby increasing decision-making speed and management flexibility. Various initiatives, including the development of new services and products and operational improvements, are currently emerging at each operating company.」

「The Group continues to increase its workforce and expand its sites. In April 2020, consolidated subsidiary Brangista Inc. transitioned to a holding company structure. In addition, Body ARCHI Japan Co., Ltd., which operates subscription-based self-service esthetic studios, is expected to expand its store network going forward. As the Group continues to expand, we will strengthen the group management structure by building a framework that draws on each company's agility and independence while creating synergies and strengthening governance across the companies.」

「Beginning in the third quarter of the current fiscal year, Brangista Media Co., Ltd., established through a company split, was included in the scope of consolidation. In addition, Brangista Solution Co., Ltd., previously a non-consolidated subsidiary, was included in the scope of consolidation because its importance to the Group had increased.」

「Against this backdrop, the Group is developing its businesses by making maximum use of its management resources, centered on the Nexyz Zero Series, hereinafter Nexyz Zero, which enables customers to install the latest equipment with zero upfront investment, including installation costs for our core LED lighting and other services. While expanding our product lineup and applying our business schemes in new fields, we are working to establish a sustainable earnings base over the medium to long term.」

「Against this backdrop, the Group is developing its businesses by making maximum use of its management resources, centered on the Nexyz Zero Series, hereinafter Nexyz Zero, which enables customers to install the latest equipment with zero upfront investment, including installation costs for our core LED lighting and other services. While taking on new challenges, such as expanding our product lineup and developing new business models, we are working to establish a sustainable earnings base over the medium to long term.」

「The Group's business scope is expanding through increases in sales offices and employees, the launch of new businesses, expansion into Taiwan and M&A. We will therefore strengthen the management structure by enhancing profit management on an independently accountable basis in each division, assigning responsibility to each manager and establishing an effective operating structure.」

「During the 9-month period ended 30 June, we added new products to our lineup and worked to develop new markets. At the same time, we expanded our sites and increased headcount with a view to the future, resulting in higher expenses.」

「We worked to further raise awareness and strengthen the reach of our electronic media through live events for our flagship electronic magazine Tabiiro and collaboration with CrowdLab Co., Ltd., which became a subsidiary in December 2018, formerly Dugong Co., Ltd.」

「Beginning in the first quarter of the current fiscal year, Brangista Inc., a consolidated subsidiary of the Company, acquired shares of Dugong Co., Ltd., now CrowdLab Co., Ltd., making it a subsidiary. Accordingly, the company has been included in the scope of consolidation.」

「Accordingly, with a view to the future, we will work on developing new sales channels, expanding our product lineup, diversifying funding methods, strengthening recruitment, and expanding and relocating our sites.」

「To strengthen the group management structure with a view to medium- to long-term management by making the company a wholly owned subsidiary, we acquired shares held by non-controlling shareholders. The transaction will raise our voting interest to 100.0%.」

「The Group is currently concentrating its management resources on areas expected to deliver higher growth and further enhance corporate value, including Nexyz Zero, which enables customers to install the latest commercial equipment, such as LED lighting, refrigerators, air-conditioning systems and dishwashers, with zero upfront investment, including installation costs.」

「The Group is strengthening the allocation of management resources to businesses expected to grow. In addition to Nexyz Zero, our main focus, we launched Nexyz Power in October 2017 and will further strengthen promotional activities for Kami no Te. We are also investing in venture companies that are taking on challenges in new fields outside the Group.」

「This was mainly due to ¥600 million in proceeds from long-term borrowings, ¥97 million in proceeds from sale-and-leaseback transactions and ¥60 million in proceeds from the disposal of treasury shares, while ¥692 million was paid to acquire shares in subsidiaries without changing the scope of consolidation.」

「To strengthen the group structure with a view to medium- to long-term management, we acquired additional shares of Hakubi Co., Ltd. The shares acquired represented 27.0% of voting rights, and the transaction will raise our ownership interest to 82.6%.」

「To strengthen the group structure with a view to medium- to long-term management, we acquired additional shares of Nexyz.BB Co., Ltd. The shares acquired represented 30.7% of voting rights, and the transaction will raise our ownership interest to 92.8%.」

「Accordingly, we are working to maximize corporate value by strengthening the group management structure and making focused investments in expanding businesses and related fields.」