Diversified operations in advertising, portals, staffing and web production

「The Group consists of 4 companies, namely the company and 3 consolidated subsidiaries, and its principal business is systems development.」

「In the Web Services segment during the cumulative second-quarter period under review, revenue was ¥387 million, down 72.9% year on year, mainly because some advertising projects ended in the first quarter following the transfer of a beauty-related company within our Group. In terms of profit, continued efforts to reduce expenses resulted in segment profit of ¥2 million, compared with a segment loss of ¥49 million in the same period of the previous year.」

「During the cumulative first-quarter period under review, revenue was ¥213 million, down 70.3% year on year, due mainly to the termination of some advertising projects following the transfer of a beauty-related company within our Group, and delays in acquiring some new projects because customers postponed advertising and development investments and deferred projects. In terms of profit, margins improved as personnel and other costs were controlled through measures such as optimizing staff allocation, and as transactions with parties outside the Group increased. However, this was insufficient to offset the decline in new project orders, resulting in a segment loss of ¥4 million, compared with a segment loss of ¥17 million in the same period of the previous year.」

「As stated in the “Notice Concerning Changes in Consolidated Subsidiaries (Transfer of Subsidiary Shares)” announced on 15 November 2018, on 30 November 2018 we transferred all shares of 株式会社リーガルビジョン. From the consolidated accounting period for the third quarter under review, the company and its subsidiaries, キャリアエージェンシー株式会社 and 株式会社東京ハウスパートナー, which comprised the Advertising Agency division, were excluded from our consolidation.」

「In the Advertising Agency division, we pursued advertising projects related to debt restructuring, hepatitis B, inheritance and wills, and traffic accidents to establish a new earnings base, while recognizing an allowance for doubtful accounts resulting from the contraction in overpaid-interest advertising projects.」

「Although marketing services for external customers in the Consulting division performed steadily, the contraction in overpaid-interest advertising projects in the Advertising Agency division and the resulting recognition of an allowance for doubtful accounts caused revenue to decline slightly and segment profit to decrease.」

「In the Advertising Agency division, we provided planning and operational support for free, on-site consultation events, as well as flyer distribution and newspaper insert advertising services, primarily as advertising services for lawyers, judicial scriveners and other professionals seeking repayment of overpaid interest. We also actively pursued Web advertising projects to develop them into a new earnings base.」

「In the Advertising Agency division, we provided planning and operational support for free, on-site legal consultation events, as well as flyer distribution and newspaper insert advertising services, primarily as advertising services for lawyers, judicial scriveners and other professionals seeking repayment of overpaid interest. In the Web Marketing division, we provided Web site planning and production and marketing services, including SEO, paid search and affiliate marketing, for sites inside and outside the Group. In the Consulting division, we provided advertising proposal services for companies inside and outside the Group as an agent for the “Hot Pepper” magazine and “Hot Pepper Beauty.”」

「In the Consulting division, we entered into agency agreements with Recruit Holdings Co.,Ltd. for the “Hot Pepper” magazine and “Hot Pepper Beauty,” and launched advertising proposal services for companies inside and outside the Group.」

「In the Web advertising business, we provided Web site planning and production and marketing services, including SEO, paid search and affiliate marketing, for sites inside and outside the Group. We also developed cross-media production services centered on Web advertising, covering all types of media without limiting the advertising channels used.」

「Through 株式会社リーガルビジョン, we continued to operate an advertising agency business for professionals such as lawyers and judicial scriveners, operate the legal consultation portal site “法律の窓口,” and provide staffing services for professionals. Through Ｋ２Ｄ株式会社, we continued to provide consulting services aimed at introducing and promoting overseas services, business models and brands that have not yet entered Japan. Through 株式会社スカイリンク, we continued to provide Web marketing, Web site planning and production, cross-media production and social game production services.」

「We continued to operate an advertising agency business for professionals such as lawyers and judicial scriveners, operate the legal consultation portal site “法律の窓口,” and provide staffing services for professionals. Through Ｋ２Ｄ株式会社, we also continued to provide consulting services aimed at introducing and promoting overseas services, business models and brands that have not yet entered Japan. Through 株式会社スカイリンク, we continued to provide Web marketing, Web site planning and production, cross-media production and social game production services.」