Fiscal Year Ending December 2026 Q3 Financial Presentation

Financial Overview

The cumulative results for Q3 of the fiscal year ending December 2026 were impacted by the loss and downsizing of some large projects in the core advertising agency business and SB synergies, resulting in overall revenue declining by approximately 7% year-over-year. Operating income decreased by about 70%, and ordinary income decreased by about 56%. On the other hand, certain segments, such as advertising media entrusted operations, performed better than the previous year. The presentation provides detailed KPI progress and future initiatives, including implementing operational efficiency through AI and strengthening efforts to acquire new projects. Financial soundness is described as remaining stable.

Outlook and Initiatives

Aligned with Phase 1 of the mid-term plan, the company will accelerate commercialization of in-house AX and BPO services centered on AI. In the agency business, it will strengthen new project acquisition and measures to prevent loss of existing projects, and in SB synergies it will seek budget increases for large projects to aim for continued orders and expanded transactions from the next fiscal year onward. In Q4, the company plans to AX-ize advertising report creation tasks and build an automation platform for ad submission operations to improve productivity and strengthen customer touchpoints from the next fiscal year onward.