Q3 FY2026 Earnings Announcement Q&A

Overview of performance

The third-quarter cumulative results are roughly 70% of the full-year guidance, and Q4 is expected to benefit from typical promotional demand and related to the Asia Games. The full-year outlook is not expected to deviate significantly. Outsourcing costs are expected to rise as core business revenue grows, but the company will prioritize contributing to profits from revenue growth while expanding the business. By adding Newwa Co., Ltd. as an additional M&A, the company aims to build an integrated structure from planning and design to printing, processing, mass production, and assembly, and to expand share in the Tokyo metropolitan area. Generative AI video content production is positioned as a growth area, with a speedy launch leveraging existing customer base and personnel, aiming for profitability and positive contribution from FY2027 onward.

Outlook, risks and opportunities

Treat the adoption of generative AI as an opportunity to broaden expression in advertising and promotions and to improve production efficiency, while recognizing the risk that easier content creation may erode differentiation, and will focus on identifying customer issues and strengthening unique proposals. Through collaboration with Newwa, integrate planning/design capabilities and production capabilities to expand orders and create added value. Establish operational governance to address legal risks (copyright, personal data).