Decision and Details
Policy for generating free cash flow from existing businesses and initiatives related to information security
To generate positive FCF from existing businesses by selectively investing for growth. Information security will be addressed through existing systems, including in-house development, group-wide oversight and vulnerability assessments.
The company plans to generate FCF from its existing businesses and increase FCF as EBITDA grows. Information security measures can be implemented within the existing budget, and no major additional investment is currently anticipated.
| Item | Details |
|---|---|
| Matter Covered | Policy for generating free cash flow from existing businesses and initiatives related to information security |
| Decision Date | 30 October 2026 (disclosure date) |
| Implementation Date | Planned to continue from the next fiscal year onward. Information security measures will also continue going forward. |
| Period Covered | Fiscal year ending January 2027 and the following fiscal years |
| Amount | Existing-business FCF plan for the fiscal year ending January 2027: ¥5 billion; growth investment in the previous fiscal year: approximately half |
| Quantity / scale | Approximately half of employees are IT professionals, including engineers; GENDA CSIRT established in April 2025 |
| Impact on Business Performance | The company plans to generate FCF from its existing businesses and increase FCF as EBITDA grows. Information security measures can be implemented within the existing budget, and no major additional investment is currently anticipated. |
| Reason | To generate positive FCF from existing businesses by selectively investing for growth. Information security will be addressed through existing systems, including in-house development, group-wide oversight and vulnerability assessments. |
| Related previous disclosures | Page 9 of the "Third-Quarter Earnings Presentation Materials for the Fiscal Year Ending January 2026" disclosed on 12 December 2025 |
| Future plans | The company will continue to generate FCF from its existing businesses from the next fiscal year onward and increase FCF as EBITDA grows. Planned system updates and regular vulnerability assessments will also continue. |
Items this document does not state (2)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company plans to generate FCF from its existing businesses by selectively investing for growth and limiting such investment this fiscal year to approximately half the level of the previous fiscal year. It considers its existing internal systems and budget sufficient to address information security.