Organizational Restructuring and Expansion of New Business Operations

「In addition to our conventional large-format signage business for corporate customers, we are developing the business to expand into indoor signage and promoting sales expansion by acquiring new corporate customers. We will also shift from a flow-based revenue model centered on hardware sales to a stock-based revenue model providing services at the same time, and enter the indoor market to transform our business structure into one that generates higher sales and recurring revenue. Through the initiatives below, we will further address market needs, improve customer satisfaction and improve performance.」

「To resolve or improve this situation, our group will shift from a flow-based revenue model centered on hardware sales to a stock-based revenue model providing services at the same time, and enter the indoor market to transform our business structure into one that generates higher sales and recurring revenue. Through the initiatives below, we will further address market needs, improve customer satisfaction and improve performance. In the LED & ECO business, in addition to the existing outdoor market, we will focus on the large indoor market and strengthen alliances by developing partner companies in order to promote the sale of large-format signage to corporate customers, thereby focusing on further sales.」

「We will shift from a flow-based revenue model centered on hardware sales to a stock-based revenue model providing services at the same time, and enter the indoor market to transform our business structure into one that generates higher sales and recurring revenue. Through the initiatives below, we will further address market needs and improve customer satisfaction.」

「In the LED & ECO business, in addition to the existing outdoor market, we will focus on the large indoor market and pursue further sales by forming alliances for the sale of large-format signage to corporate customers.」

「We are developing locations for a locally focused digital advertising business generating recurring revenue by advancing network-enabled signage, a cloud-based ASP business, and co-creation and collaboration with IT systems companies. We will move our network-connected DOOH business into full-scale operations.」

「In the LED & ECO business, we are developing locations for a locally focused digital advertising business generating recurring revenue by advancing network-enabled signage, a cloud-based ASP business, and co-creation and collaboration with IT systems companies. We have launched a network-connected DOOH business and will move it into full-scale operations.」

「In the LED & ECO business, we are developing locations for a locally focused digital advertising business generating recurring revenue by advancing network-enabled signage, a cloud-based ASP business, and co-creation and collaboration with IT systems companies. We have launched a network-connected DOOH business and will move it into full-scale operations.」

「In the LED & ECO business, we are developing locations for a locally focused digital advertising business generating recurring revenue by advancing network-enabled signage, a cloud-based ASP business, and co-creation and collaboration with IT systems companies. We have launched a network-connected DOOH business and will move it into full-scale operations.」

「Our group strengthened its financial position and secured funding for new businesses through the issuance of ¥299 million in new shares and ¥2 million in subscription rights to shares in a third-party allotment in January 2023, and the issuance of ¥62 million in new shares through the exercise of subscription rights to shares by the end of March. As new businesses, we began shifting from the conventional flow-based model of manufacturing and selling hardware outright to a stock-based sales structure providing services at the same time, and launched an advertising-based DOOH business using large-format displays and an inbound-related business.」

「We are promoting a shift in our sales structure from a flow business based on product and equipment sales to a recurring-revenue business, and are advancing new business models generating recurring revenue, including network-enabled full-color signage and the CashHive cash-hybrid self-checkout register, toward their launch. Going forward, we will expand our business scope beyond hardware sales into DX solution services that generate stable revenue.」

「We worked to plan and develop new business models generating recurring revenue, including network-enabled full-color signage and the CashHive cash-hybrid self-checkout register, as we shifted from a business centered on hardware sales to a recurring-revenue business. Going forward, we will expand our business scope beyond hardware sales into DX solution services that generate stable revenue.」

「To resolve or improve this situation, our group has adopted “Fully launch the NEXT Stage (Hardware & DX) with a plus-one mindset!” as its management slogan. We are working to expand our solution-based revenue model, combining hardware, systems, information and maintenance services, from a model centered on hardware sales. We are also working to transform our business model using digital technologies, further addressing market needs and improving customer satisfaction.」

「In our core LED & ECO and electronic cash register & POS businesses, we will give concrete form to the expansion of our product lineup from outright hardware sales to rental and recurring models. Leveraging the convenience of networked signage equipped as standard with Wi-Fi modules, which began to be introduced this fiscal year, we will shift from hardware-centered sales to a locally focused advertising business generating recurring revenue through the use of a broad range of content and improved convenience, targeting hotels, clinics, convenience stores and automobile dealerships. We will also develop a new market for recurring cloud services, with newly opened stores as the primary customers, where the benefits can be clearly measured.」

「We are working to expand our solution-based revenue model, combining hardware, systems, information and maintenance services, from a model centered on hardware sales. We are also working to transform our business model using digital technologies, further addressing market needs and improving customer satisfaction.」

「To resolve or improve this situation, our group has adopted “Now is the chance to move to the NEXT Stage (Hardware & DX)!” as its management slogan. We are working to expand our solution-based revenue model, combining hardware, systems, information and maintenance services, from a model centered on hardware sales. We are also working to transform our business model using digital technologies, further addressing market needs and improving customer satisfaction.」

「We are working to expand our solution-based revenue model, combining hardware, systems, information and maintenance services, from a model centered on hardware sales. We are also working to transform our business model using digital technologies, further addressing market needs and improving customer satisfaction.」

「We expect the conventional manufacturer business based on outright hardware sales to remain challenging due to the continued impact of the COVID-19 pandemic, including a wave of restaurant closures and bankruptcies. In this environment, we will provide high-definition full-color LED displays to stores that are expanding, and comprehensive support packages incorporating “with-COVID” measures for start-up stores reopening after renovations. Accordingly, we will pursue consistent solution and recurring businesses to achieve sustained revenue and profit growth.」

「The business environment has changed dramatically due to the COVID-19 pandemic. Taking this as an opportunity, we are pursuing a solution-based business model adapted to new needs, shifting from a model centered on hardware sales to rentals and, further, to information services.」

「In the first half, we planned and developed “with-COVID” businesses, and initiatives related to serving robots and thermal sensors are beginning to take shape. Through full-scale development in the second half, we aim to increase both revenue and profit.」

「In the LED & ECO and SA equipment businesses, we will adapt our business models to the new normal, working with leading companies in the industry to develop consulting services for stores that are closing or going out of business, including procedures for closure, the purchase and recycling of fixtures and equipment, and consulting on support for store employees. We will also rent and sell packaged, low-cost fixtures, electronic cash registers and LED displays to people starting independent businesses, and operate a matching business for people seeking to acquire businesses with existing fixtures and fittings. As new businesses, we will expand the re-launch of LED-lighting rentals and information-service revenues from digital out-of-home (DOOH) advertising using LED signage at local governments, transportation facilities and other sites. In the SA division, we will plan and develop self-checkout registers, registers for expressway facilities and cash-hybrid products, and build recurring revenue sources through partnerships with leading companies.」

「Assuming a deterioration in performance due to the COVID-19 pandemic, we will reinforce and expand our financial base, introduce various government-led grants and support payments, and offset the deterioration in our financial position. We will also launch the new businesses required by society at an early stage through co-creation and collaboration.」

「Our group has adopted “Reiwa: From Now, From Here to a NEW Stage!” as its management slogan, and is working to expand its solution-based revenue model, combining hardware, systems, information and maintenance services, from a revenue model centered on hard selling, while further addressing market needs and improving customer satisfaction. In addition to the conventional door-to-door sales model, we are restructuring our operating companies to strengthen earnings in the corporate and hotel inbound-related markets.」

「Our group has adopted “Reiwa: From Now, From Here to a NEW Stage!” as its management slogan, and is working to expand its solution-based revenue model, combining hardware, systems, information and maintenance services, from a revenue model centered on hard selling, while further addressing market needs and improving customer satisfaction. In addition to the conventional door-to-door sales model, we are restructuring our operating companies to strengthen earnings in the corporate and hotel inbound-related markets.」

「The Mayudama business will commence full-scale operations following the establishment of the new company MAYUDAMA Co., Ltd. in June 2019.」

「“Change” means changing the “customers,” “products” and “sales methods” of our core LED and SA businesses in line with market trends, and shifting to the “half the old, double the new” management strategy. We are restructuring our group companies, and the LED division is making progress toward entering new inbound-related markets.」

「“Change” means changing the customers, products and sales methods of the core LED and SA businesses. The Group has been rebuilding its Group companies since the previous fiscal year. Progress has been made in the LED division, but the SA division posted poor results owing to the bankruptcy of a sales company and sales-related problems, resulting in sharply divergent outcomes.」

「The Group adopted “To the NEXT Stage with the 3 Cs (Change, Chance and Connect)!” as its management slogan, sought to expand its solution-based revenue model combining hardware, systems, information and maintenance services, rather than a revenue model centered on hardware sales, and worked to further increase market needs and customer satisfaction. It also proceeded with the reorganization of companies serving government and corporate demand and the hotel and inbound-tourism sectors, away from the conventional door-to-door sales model.」

「The Group worked to restructure and rebuild the management resources of Group companies under a “half old, double new” strategy, allocating half the resources to existing businesses to improve efficiency and doubling investment in new businesses such as Mayudama and inbound tourism to launch them rapidly. It also adopted a management approach focused on increasing added value, prioritizing gross profit, or value added, over net sales, and began using a multitask organization and dual-role assignments to improve productivity.」

「To launch new businesses rapidly, the Group created a CFT (cross-functional team) and will promote the inbound business and the Mayudama/fintech business through a management strategy of co-creation and collaboration. It integrated the LED & ECO headquarters and the SA & NB headquarters, rebuilding them as the business promotion headquarters, and reorganized ㈱オービカル.」

「During the second quarter (July to September), the Group rebuilt the LED & ECO business headquarters and reorganized ㈱オービカル. The product planning and development divisions also pursued i-signage, electronic signage using IoT, and ultra-high-definition full-color LED displays through a co-creation model. The Group shifted its sales capabilities to Group operating companies closer to customers, including ㈱Ｍビジュアル and ㈱エムモビリティ, strengthening its customer-first sales response.」

「The organizational restructuring and rebuilding have established a structure capable of moving quickly to conduct business activities on a customer-first basis.」

「The LED R&D and production divisions will be transferred to TB GROUP INC. and the sales operating companies to bring them closer to customers and increase market needs and customer satisfaction. The Group will also reorganize its business companies serving government and corporate demand, as well as the hotel and inbound-tourism sectors, away from the conventional door-to-door sales model.」

「The Group promoted the restructuring and rebuilding of loss-making divisions and the two-pronged strategy of “Create the Power to Earn in a NEW Stage.”」

「During the period, the Group focused on reviewing the reorganized and integrated divisions and on new businesses, including drive recorders and smart cash registers.」

「Overall, during the first quarter of the current consolidated cumulative period, the Group sought to promote organizational reform and expand its new businesses.」