2481.T

• Company Overview & Strategic Vision • Founded in 1980, listed on the Tokyo Stock Exchange since 2006, with a core mission of delivering local community news. Current strategic goal is to transition from "a company that publishes local information newspapers" to "a comprehensive regional information company that also publishes local information newspapers" • Core operations: publication of the hyper-local free daily Town News, plus digital information services, printing/publishing, promotion services, regional development, and PPP public facility management

• 45th Period (first year of the 2nd mid-term management plan 2024-2026) Operational Initiatives • Paper Publishing: Continued to produce reader/client-focused content via company-wide special editions on themes (SDGs, long-term care, disaster prevention) and regular publication of Kids Town News, plus adjusted publication editions/circulation to reflect population and living area changes for more efficient outreach • Digital Business: Expanded outreach via Web, email, LINE and third-party curation/SNS platforms; enhanced content on spin-off niche sites (local outing site RareA, political information site Seiji no Mura) and expanded digital revenue opportunities • Non-paper Business: Met diverse regional demand with services including commemorative publication production, promotional goods, video/website creation, event planning, and local disaster prevention product development/sales • PPP Business: Continued bidding for new public contracts, delivered steady operations for existing projects, and won the new Odawara Civic Hall Sannomaru Hall designated management contract that launched in April 2025

• For the 46th period (second year of the mid-term management plan), management targets an all-time high revenue, aiming to build a solid foundation ahead of the company's 50th anniversary in 2030
• The 46th period official earnings guidance is: 4.117 billion yen in total revenue, 520 million yen in operating profit, 551 million yen in ordinary profit, and 358 million yen in net income
• The three core strategic priorities for the 46th period are: • Continue deepening existing paper publication operations, maintain customer contact, and differentiate from competitors via hyper-local, high-quality content • Position digital business as the key growth driver: expand owned media ad sales, grow readership for digital channels, strengthen digital article distribution, and build out capacity to meet growing demand for website creation, video production, and digital advertising services • Accelerate non-paper business growth: capture diverse regional non-print ad demand via hybrid event planning, local government cross-media promotion, and expansion of PPP designated management projects leveraging the company's existing regional resources

1. Paper Publishing Segment (core business): Revenue declined year-over-year due to slowing paper ad placement and structural headwinds from the shrinking paper media market. 2. Digital Business Segment: Non-paper revenue was solid, with expanded reach to non-newspaper readers and expanded digital ad product offerings. 3. Non-paper Promotion & Production Segment: Non-paper revenue was solid, with steady orders for commemorative publications, promotional goods, video/website production, and disaster prevention product sales. 4. PPP (Public-Private Partnership) / Regional Produce Business: Non-paper revenue was solid overall, with the new 3rd contracted facility management project (Odawara Civic Hall Sannomaru Hall) starting in April 2025. However, revenue was partially offset by a full-year closure of the existing Hadano City Cultural Hall that caused a revenue loss. No segment-level absolute revenue or revenue contribution percentage figures were provided in the transcript. Aggregate total company revenue for the 45th period was 3.677 billion yen (1.6% decrease YoY), operating profit was 462 million yen (19.8% decrease YoY), ordinary profit was 587 million yen (14.4% decrease YoY), and net income was 389 million yen (21.0% decrease YoY).

• Long-standing industry headwinds: prolonged high inflation, persistent labor shortages, shrinking overall paper media market, and persistently elevated raw material and energy costs
• The structural transformation from a pure print publisher to a comprehensive regional information company is taking longer than initially expected, contributing to missed first-year mid-term plan targets
• All first-year (45th period) mid-term plan targets (revenue, operating profit, ordinary profit, net income, operating margin) were missed
• Revenue declines driven by slowing paper ad placement and the full-year closure of the existing Hadano City Cultural Hall PPP project
• Profitability pressure from wage increases for employee benefits improvement, which offset cost cutting efforts for cost of goods sold and operating expenses

No question and answer section was included in the provided transcript.