Two-business-segment structure comprising Content and Communications

「The Group's business segments comprise 4 businesses: the Content Distribution Business, which consists of services such as U-NEXT and MVNO services that primarily distribute video and electronic books to individual users; the Store and Facility Solutions Business, which provides DX services, music distribution, automatic payment machines and front-desk management systems to restaurants and other businesses, medical institutions and hotels; the Communications and Energy Business, which provides internet lines, ICT environments, and high- and low-voltage electricity to restaurants and other businesses and small and medium-sized offices; and the Financial Services, Real Estate and Global Business, which primarily provides guarantee, insurance, cashless payment and real estate services to restaurants and other businesses.」

「Taking into account the scale of the businesses and their importance to the Group's strategy, the Group positions the Content Distribution Business, Store and Facility Solutions Business, Communications and Energy Business, and Financial Services, Real Estate and Global Business as its core businesses and reportable segments.」

「The Company has long used a sector-based internal management structure. Following the internal organizational reorganization carried out on 1 September 2024, the roles and functions of each Group business along its service axis were clarified, establishing an internal management and business administration structure based on sectors. Accordingly, from the current interim consolidated accounting period, the reportable segments changed from the previous Content Distribution Business, Store Services Business, Communications Business, Business Systems Business and Energy Business to the Content Distribution Business, Store and Facility Solutions Business, Communications and Energy Business, and Financial Services, Real Estate and Global Business.」

「From the fiscal year ending August 2025, the Company will change its disclosed segments to classifications based on its internal sectors.」

「From the first quarter of the consolidated fiscal year, the performance management classifications were reviewed, and the reportable segments were revised accordingly. The results of ㈱TACT, previously included in the Content Distribution Business, are now included in the Communications Business.」

「From the first quarter of the consolidated fiscal year, the performance management classifications were reviewed, and the reportable segments were revised accordingly. The results of ㈱TACT, previously included in the Content Distribution Business, are now included in the Communications Business.」

「Taking into account the scale of the businesses and their importance to the Group's strategy, the Group positions the Store Services Business, Communications Business, Business Systems Business, Content Distribution Business and Energy Business as its core businesses and reportable segments.」

「From the first quarter of the consolidated fiscal year, the performance management classifications were reviewed, and the reportable segments were revised accordingly. The Media Business operated by USEN Media, which specializes in restaurants, was integrated into the Store Services Business. In addition, the call center outsourcing business operated by USEN-NEXT Design, which had been included in Adjustments, was reclassified to the Store Services Business.」

「The Media Business, which provided services specializing in the food-service industry, was integrated into the Store Services Business, creating 5 segments, while」

「6 segments: Store Services Business, Communications Business, Business Systems Business, Content Distribution Business, Energy Business and Media Business」

「Following the expansion of the business scope through the business integration, the reportable segments have comprised 6 segments from the first quarter of the consolidated fiscal year: Store Services Business, Communications Business, Business Systems Business, Content Distribution Business, Energy Business and Media Business.」

「From the first quarter of the consolidated fiscal year, the reportable segments were changed from the previous Content Platform Business, Communication Network Business, Music Distribution Business, Business Systems Business, ICT Business and Other to the Store Services Business, Communications Business, Business Systems Business, Content Distribution Business, Energy Business and Media Business.」

「The reportable segments were changed from the previous 2 segments, the Content Platform Business and Communication Network Business, to 5 segments: the Content Platform Business, Communication Network Business, Music Distribution Business, Business Systems Business and ICT Business.」

「In the second quarter of the consolidated fiscal year, following the inclusion of USEN and its 3 consolidated subsidiaries, which operate music distribution, business systems, ICT and other businesses, as consolidated subsidiaries, the method of classifying segments was reviewed. The 2 reportable segments, previously the Content Platform Business and Communication Network Business, were changed to 5 segments: the Content Platform Business, Communication Network Business, Music Distribution Business, Business Systems Business and ICT Business.」

「In the second quarter of the consolidated fiscal year, following the inclusion of USEN and its 3 consolidated subsidiaries, which operate music distribution, business systems, ICT and other businesses, as consolidated subsidiaries, the method of classifying segments was reviewed. The 2 reportable segments, previously the Content Platform Business and Communication Network Business, were changed to 5 segments: the Content Platform Business, Communication Network Business, Music Distribution Business, Business Systems Business and ICT Business.」

「<Content Platform Business> The Content Platform Business provides the video-on-demand service U-NEXT. <Communication Network Business> In the Communication Network Business's broadband internet line agency sales services, sales activities leveraging an agency network, including real estate companies, remain strong, and the number of contracts acquired for fixed fiber-optic lines is progressing steadily.」

「The Group positions the Content Platform Business and Communication Network Business as its core businesses.」

「The segments are classified into two businesses: the Content Platform Business, which provides digital content distribution services, including video, under the name U-NEXT, and the Communication Network Business, which provides agency sales of internet and other services offered by telecommunications carriers, mobile communications services under the name U-mobile, and fixed broadband line services under the name U-NEXT Hikari. These two businesses correspond to the segment classifications used in the segment information.」

「The segments are classified into two businesses: the Content Platform Business, which provides digital content distribution services, including video, under the name U-NEXT, and the Communication Network Business, which provides agency sales of internet and other services offered by telecommunications carriers, mobile communications services under the name U-mobile, and fixed broadband line services under the name U-NEXT Hikari.」