4197.T

Overall Corporate Positioning

• The 2026 November fiscal year is positioned as an investment period for regrowth. The company is investing in human capital and new business lines to transform its business structure, targeting a V-shaped recovery and accelerated growth from 2027 onward to maximize corporate value.
• The first quarter delivered total revenue of 1.199 billion yen, down 1.3% year-over-year, and operating profit of 0.054 billion yen, down 52.6% year-over-year. The profit decline was planned due to intentional pre-investment for future growth, driven by 35 million yen higher outsourcing costs from product portfolio shifts and 26 million yen higher personnel costs from planned hiring.
• March 2026 (the first month of the second quarter) recorded the highest monthly revenue in company history, indicating an emerging recovery trend after domestic MR sales restructuring completed in the second half of the prior fiscal year.

Core Strategic Progress

• MR Business Customer Deepening: The company is rebuilding its domestic MR sales structure and actively increasing sales headcount to return the business to a stable growth trajectory. Reengaging existing clients and new customer development is being accelerated to deliver consistent growth starting from the second quarter, with early results showing renewed growth in orders from research firms and beverage manufacturers.
• Asian Market Overseas MR Expansion: The company aims to become the leading Japanese research partner for the Asian market. It is actively expanding partnerships with local research firms across Asia, supported by a 15-person global team of foreign staff based in Tokyo that travels frequently to the region to develop clients and local research partners. Requests for Asia-focused research have increased sharply from March to April 2026.
• Data Analysis Business Launch: Following the acquisition of Lean Nishikata, the company is leveraging its existing sales capabilities to scale this new business line. Four sales staff were reassigned from the core MR division to Lean Nishikata starting May 2026 to lead new client development, as the acquired firm previously had no dedicated sales team.
• HR Tech Business Growth: After four years of stagnant growth, the company is investing heavily in personnel and marketing to raise brand awareness for its Humap HR tech platform. The business is on track to exceed full-year budget, and management expects it to become a core supporting pillar for the company.
• M&A and Alliance Activity: The company is actively pursuing additional M&A targets that fit the group's strategy, with the goal of adding multiple new companies to the group during the current fiscal year to accelerate expansion. It maintains a healthy balance sheet with 61.7% equity ratio, 45 million yen in outstanding borrowings, 1.1 billion yen in cash and equivalents, and access to up to approximately 2 billion yen in total acquisition capital.

• Management maintains the full-year plan of revenue growth and lower profit year-over-year, as the company prioritizes intentional investment for future growth over near-term profit.
• While first quarter results missed planned targets and came in below prior year levels, management expects to recover the gap in the second through fourth quarters, and remains committed to achieving full-year results that exceed the prior fiscal year's performance.
• The company expects the data analysis business, supported by newly added sales resources, to grow into a meaningful new core revenue and profit contributor over the medium term, and expects HR Tech to hit full-year budget and contribute consistent growth.
• Management expects the global MR business to return to growth starting in the second quarter after reallocating sufficient sales headcount to the segment.

1. MR (Marketing Research) Business: Generated revenue of approximately 11.49 billion yen? No, conversion correct: 11億9,900万円 total, 95.8% of total revenue contribution. MR revenue is 1.141042 billion yen, a 0.6% decrease year-over-year. Within domestic MR, the research services client segment grew 38 million yen year-over-year, while information/communication and automotive client segments declined in the quarter; the global MR segment saw a 78.1% revenue decrease year-over-year due to prior period resource reallocation to domestic MR. 2. HR Tech (HR) Business: 4.2% of total revenue contribution, with revenue growing 18.1% year-over-year to approximately 0.0504 billion yen, and is currently on track to meet full-year budget. 3. New Data Analysis Business: Added via acquisition of Lean Nishikata in January 2026; the target company had annual revenue of 0.13 billion to 0.14 billion yen prior to acquisition, and the business is being scaled as a new growth pillar.

• Domestic MR growth has been uneven month-to-month in the first quarter, with some months still delivering year-over-year declines, and there is execution risk to stabilizing consistent growth starting in the second quarter.
• The global MR segment underperformed sharply in the first quarter, with a 78.1% year-over-year revenue decline, which created a material drag on overall group revenue and profit. There is uncertainty around how quickly the segment can return to growth after reallocating sales resources.
• The newly launched data analysis business depends on successful integration of the acquired company and the ability of the reassigned sales team to drive new revenue growth, which carries execution risk.

Q: What is management's outlook for achieving the full-year plan after a weaker-than-expected first quarter? / A: Management confirms that while the first quarter missed planned targets, March recorded an all-time high monthly revenue, and momentum has continued into the start of the second quarter. The company intends to recover the first quarter gap over the remainder of the fiscal year, and maintains its original full-year plan and target of exceeding prior year revenue. /

Q: What contribution is expected from the newly acquired Lean Nishikata data analysis business in the current fiscal year? / A: Lean Nishikata had annual revenue of 130 million to 140 million yen prior to acquisition and no dedicated sales team. The addition of four dedicated sales staff from Asmark starting May will drive new business expansion, and the business is expected to grow gradually and start contributing meaningfully to group results over the medium term as a new core growth pillar. /

Q: What is the company's current policy on dividends and shareholder returns going forward? / A: No detailed answer to this question is included in the available transcript.