Expansion through M&A and alliances with external companies

「During the interim consolidated accounting period, amid continued uncertainty about the outlook for the global economy and financial markets, we maintained a cautious stance toward new investments while steadily gathering information and selecting potential transactions, primarily in areas with significant growth potential in Japan, such as business succession for small and medium-sized enterprises and tourism-related businesses in anticipation of a recovery in inbound demand.」

「To support the sustainable development of the Group, we will actively pursue M&A and equity investments that are consistent with our corporate philosophy and other principles, as well as partnerships with a broad range of domestic and overseas companies and institutions, including regional financial institutions.」

「As part of an investment commitment agreement for companies participating in “Planet43,” an accelerator program operated by R3i Ventures, the Company invested 100,000 USD in ViewMind, a US-based healthcare technology company.」

「At the end of March 2024, the Company invested in AME Healthcare Pte Ltd, a Singapore-based startup providing a dental clinic platform in South Asia and the Middle East.」

「Against this backdrop, at the end of July, the Company sold part of its shares in Roar Media, one of the investees of STRIDERS GLOBAL INVESTMENT PTE.LTD. that operates digital media platforms in Sri Lanka and Bangladesh, and recorded a capital gain as a result.」

「During the cumulative first-quarter period under review, as uncertain investment conditions continued in economies around the world, we proceeded to identify business succession and inbound investment opportunities in Japan while taking a cautious stance toward new investments.」

「Funds used in investing activities amounted to ¥67 million, compared with ¥88 million used in the same period of the previous year. This was mainly due to ¥67 million in payments for the acquisition of investment securities.」

「The Company has worked to identify and evaluate investment opportunities, intending to make a certain level of investment each year, primarily in Asian island nations, and build up expertise and networks. As a result, it made 2 investments in unlisted shares overseas and 2 in Japan, resulting in cash used in investing activities of ¥83 million. The Company intends to recover these investments in the future based on the exit strategies formulated when the investments were evaluated.」

「Regarding the progress of the investment business at Striders Global Investment Pte. Ltd., in April 2021, an affiliate of Roar Media, a digital media platform in Sri Lanka and Bangladesh in which the Company invested in October 2018, was absorbed through a merger. In June 2021, the Company invested USD100,000 in Indogen Capital Fund II, L.P., which identifies promising startups in Indonesia and provides investment and management support. In December 2021, it invested USD75,000 in AGRITHMICS, a Sri Lankan SaaS company promoting the digital transformation of the process by which smallholder farmers deliver harvested crops to production facilities.」

「During the second quarter of the fiscal year under review, PT. Citra Surya Komunikasi was removed from the scope of consolidation following the partial sale of its shares.」

「To support the group's development, we will proactively pursue M&A and equity investments consistent with the Company's corporate philosophy, as well as alliances with a broad range of companies and specialists in Japan and overseas.」

「With respect to 株式会社アマガサ, following the partial sale of its shares in December 2020, it was removed from the scope of equity-method accounting from the end of the third quarter of the fiscal year under review.」

「To support the group's development, we will proactively pursue M&A and equity investments consistent with the Company's corporate philosophy, as well as alliances with a broad range of companies in Japan and overseas.」

「At a meeting of the board of directors held on 31 January 2020, the Company resolved to subscribe for part of the share acquisition rights issued through a third-party allotment by 株式会社アマガサ (the “Amagasa share acquisition rights”).」

「Accordingly, as our medium- to long-term policy, we will pursue management aimed at increasing sales and expanding earnings through proactive acquisitions, business alliances, and other initiatives.」

「At a meeting of the board of directors held on 30 January 2018, the Company resolved to acquire part of the shares of 株式会社みらい知的財産技術研究所, one of the registered research organizations of the Japan Patent Office, and make it an equity-method affiliate.」

「From the second quarter of the fiscal year under review, PT. Citra Surya Komunikasi has been included in the scope of consolidation because Striders Global Investment Pte. Ltd., a subsidiary of the Company, made it a subsidiary by acquiring shares.」

「At a meeting of the board of directors held on 18 July 2017, the Company resolved that Striders Global Investment Pte. Ltd., its wholly owned subsidiary, would subscribe to a third-party allotment capital increase conducted by PT.Citra Surya Komunikasi, a company in the Republic of Indonesia, and make the company a consolidated subsidiary.」

「As investment structures, we will adopt the method best suited to the characteristics of each business, including establishing subsidiaries, making joint investments with partners or funds, participating in management through acquisitions, and making companies consolidated subsidiaries.」

「As part of our medium- to long-term policy, we will pursue management aimed at increasing sales and expanding earnings through proactive acquisitions, business alliances and other measures.」