Entry into the GU business and its development into the next core business

「メタバース事業におきましては、10±５年の長期視座としたことにより投資額を減らした結果、売上高は47,724千円（前年同期比31.6％減）となり」

「In the Metaverse business, revenue was ¥112.652 million, compared with ¥9.245 million in the previous consolidated fiscal year, because STUDIO55's VR business was included in the Metaverse business following its addition to the group and short- to medium-term growth initiatives were shifted to the "Metareal AI" project, while investment in the Metaverse business was reduced by positioning it from a long-term perspective of 10±5 years. Segment loss was ¥44.770 million, compared with a segment loss of ¥185.493 million in the previous consolidated fiscal year.」

「In the metaverse business, the VR business of 株式会社STUDIO55 was included in the metaverse business following its consolidation into the Group. In addition, short- to medium-term growth initiatives were shifted to the “Metareal AI” project and investment in the metaverse business was reduced from a long-term perspective of 10±5 years. As a result, revenue was ¥69.810 million, compared with ¥669 thousand in the same period of the previous year, and the segment loss was ¥39.882 million, compared with a segment loss of ¥97.173 million in the same period of the previous year.」

「Through the synergy of combining the company’s advanced AI technology with 株式会社STUDIO55’s specialist expertise and customer base following its consolidation as a subsidiary, the company aims to achieve significant growth in this field.」

「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥669 thousand, down 68.7% year on year, and the segment loss was ¥97.173 million, compared with a segment loss of ¥118.708 million in the same period of the previous year.」

「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥356 thousand, down 75.4% year on year, and the segment loss was ¥49.613 million, compared with a segment loss of ¥55.219 million in the same period of the previous year.」

「The metaverse business will pursue the “Metaverser” concept and “Metaverse × AI” as the means of achieving it, as part of a long-term growth strategy that anticipates the business coming to fruition five or more years from now.」

「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥2.564 million, down 72.4% year on year, and the segment loss was ¥186.837 million, compared with a segment loss of ¥338.856 million in the same period of the previous year.」

「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥2.139 million, down 49.7% year on year, and the segment loss was ¥120.614 million, compared with a segment loss of ¥225.995 million in the same period of the previous year.」

「By shifting its short- to medium-term growth initiatives to the “Metareal AI” project and reducing investment in the metaverse business, which is viewed from a long-term perspective of 10±5 years, revenue was ¥1.449 million, down 2.9% year on year, and the segment loss was ¥56.241 million, compared with a segment loss of ¥110.442 million in the same period of the previous year.」

「From the current third quarter of the consolidated fiscal year, we changed the name of the reportable segment previously called the GU business to the metaverse business. This change had no impact on segment information.」

「As of 31 May 2021, the Group consisted of the company, 10 consolidated subsidiaries and 2 associates.」

「We will treat the MT business as a cash cow and make GU businesses such as YouConnect and OASIS our primary high-growth strategy.」

「During the cumulative third quarter of the fiscal year, the Group, comprising the company and its affiliated companies, entered the GU business. As a result, the number of affiliated companies increased by 3 subsidiaries and 1 associate. This decision was based on the expected quantitative and qualitative significance of the business as the Group’s next core business.」