3223.T

• Core Business Updates
  • Food and Beverage Service: Ran continued limited-time collaboration cafes with popular content; launched seasonal menu updates alongside SNS marketing to drive customer visits; completed one new directly operated store opening (Cheese Table carnival at Copis Kichijoji, a new format of the company's direct brand Cheese Table, which has received strong customer demand); invested in store facility upgrades to add seating and improve space/operational efficiency, driving higher customer traffic that outperformed prior year results for existing stores.
  • Content Planning Service: Continued strong inbound tourist demand at managed character cafe locations; completed internalization of merchandise planning, procurement, and sales for collaboration cafes to consolidate revenue streams in-house and create new profit opportunities; launched post-event e-commerce sales for collaboration cafe merchandise; ran high-profile limited-time collaborations such as the Gintama 20th Anniversary Exhibition linked collaboration cafe at #702 CAFE&DINER Namba Parks, which delivered unique immersive experiences for IP fans. Ongoing work includes content selection optimization, moving from subjective selection to data-driven decision making.
• Strategic Priorities
  • Focus on building high-margin business through strengthening brand power, increasing customer foot traffic, and improving customer satisfaction.
  • For Food and Beverage Service: Prioritize improving existing store brand strength, optimizing CRM and digital marketing, and driving fundamental productivity improvements through DX/food tech adoption to boost both brand value and profitability.
  • For Content Planning Service: Improve IP content selection accuracy through AI and accumulated marketing data to build a more reproducible growth model.
  • Organizational development: Expand the internal SLD Academy training program under the 'Grow together, co-educate' slogan to drive company-wide capability building, and develop new sustainable growth businesses through the employee-led SDGs project, branded 'Moving SDGs'.
• Balance Sheet and Cash Flow
  • End-of-period cash and cash equivalents totaled 224 million yen, a 93 million yen decrease from the prior year; operating cash flow was 87 million yen, investing cash outflow was 48 million yen, financing cash outflow was 132 million yen driven by long-term debt repayment.
  • Total assets at period end were 1.007 billion yen, total liabilities were 455 million yen, and total net assets were 552 million yen.

• Full-year 2027 February Term guidance: Total revenue of 3.626 billion yen (0.8% decrease year-over-year), operating profit of 182 million yen (44.4% increase year-over-year), ordinary profit of 181 million yen (37.8% increase year-over-year), and net income of 135 million yen (55.0% increase year-over-year).
• Management's 2027 operating policy is focused on three core goals: establishing a strong profit structure, building a sustainable growth model, and developing a self-sustaining organization.
• Profit growth is expected to come from existing store profit improvement, accelerated portfolio restructuring to build a more stable, risk-resilient business model less exposed to external market changes.

1. Food and Beverage Service Segment: Revenue of 2.485 billion yen, a 5.4% decrease year-over-year, contributing 68.0% of total company revenue. 2. Content Planning Service Segment: Revenue of 1.171 billion yen, a 13.3% increase year-over-year, contributing 32.0% of total company revenue. Total company revenue for the 2026 February Term was 3.656 billion yen, a 0.1% decrease year-over-year.

• Store closures due to external factors such as facility redevelopment occurred during the 2026 February Term, contributing to lower operating profit.
• Sustained cost pressures from rising raw material prices and increased labor costs following minimum wage revisions reduced 2026 operating profit versus the prior year.
• The company recorded 1 million yen in impairment loss on investment securities, 23 million yen in impairment loss on underperforming directly operated store assets, and a 15 million yen corporate tax adjustment (loss) related to deferred tax asset recoverability assessment during the 2026 term.

No Question and Answer section was included in the provided earning call transcript.