Measures to Realize Management That Takes Capital Costs and Share Price into Account

Overview of Business Strategy and Financial Strategy

The new structure, shifting from the previous app-centered organization to three pillars of apps, digital comics, and consumer games, has begun full-scale operations to accelerate growth in new areas. In July 2026, Opera House was made a wholly owned subsidiary to strengthen consumer game development capabilities, expand sales in Asia, collaborate with external IP, and pursue publishing activities including indie titles. The company is considering capital market financing and is enforcing management control that is mindful of capital costs. Targets ROIC/ROE of 5% and aims for PBR above 1.0 in the medium to long term.

Policy on Shareholder Returns, IR/ESG Activities, and Human Capital Investment

As a financial strategy, the company emphasizes maintaining equity while improving capital efficiency. It will review low-profitability businesses, improve the investment cycle, and promote performance-linked executive compensation and equity-based remuneration. As of the fiscal year ended June 2026, the equity ratio was 79.4%, and growth investments through the full acquisition of Opera House will continue. A Chief Financial Officer position was established in September. For shareholder returns, the company targets a payout ratio of 20% or more, but no dividend was paid this fiscal year due to a net loss. IR/PR activities will be strengthened, continuing disclosure targeted at retail investors and proactive disclosure of ESG information.