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Core Financial Results Overview

• All top and bottom line metrics (revenue, operating profit, ordinary profit, net profit) reached all-time highs, driven by growth of the new FBM business, large project wins in the broadcasting/telecommunications sector, and strong performance in the housing/living segment.
• Recorded 0.57 billion yen in investment partnership gains as non-operating income from fund distribution.
• Maintains a strong 70% equity ratio, with total assets increasing from 4.914 billion yen to 5.754 billion yen, driven by large growth in cash and deposits from investment distribution.

New Mid-Term Growth Strategy (Road to 2030)

• Core strategic principle: "Avoid competition as much as possible, win without fighting", building on the company's established "community-centric thinking" approach.
• Reorganized the business portfolio around four focused markets: cable TV/local communities, housing/construction/real estate/living communities, food service/brand fan communities, and new markets to be opened via M&A.
• Created a new company-wide shared infrastructure to support cross-business collaboration, moving away from the prior individual business silo optimization model to better respond to rapid market change.
• Key strategic priority: Accelerate enterprise-wide database development and AI adoption led by the newly established Innovation & Expert Headquarters, to strengthen existing expertise and drive cross-business synergy.

Key Operational Initiatives by Segment

• CATV & Local Community Business: Rationalize the mature, declining Channel Guide business via AI, commercialize existing production efficiency expertise, and develop new high-margin business models based on solving local community challenges.
• Housing Construction & Life Community Business: Expand capabilities to serve a broad range of business segments, maximize synergies with acquired subsidiary Asty, and develop new business by uncovering latent demand in the construction industry.
• Brand & Fan Community Business: Establish leadership in food service fan marketing support, systematize and deepen AI-powered fan marketing, expand the systematized support model to new markets.

People and Capital Strategy

• Treat personnel costs as investment in human capital, introduced eNPS as the core people management KPI, and focus on building an attractive work environment to attract talent.
• Completed the prior mid-term plan ahead of target: revenue grew 28.1% over plan, operating profit hit 1.5x the original target, share price doubled, and PBR recovered above 1x.

• FY2027 (ending February 2027) Forecast: Expects revenue of 6.6 billion yen, operating profit of 0.5 billion yen, ordinary profit of 0.515 billion yen, and net profit attributable to parent shareholders of 0.335 billion yen. Results are expected to decline year-over-year compared to FY2026, which benefited from extraordinary investment gains, but represent strong growth compared to FY2025.
• New Mid-Term Plan (ending February 2029) Targets: Aims for 8 billion yen in revenue, 0.7 billion yen in operating profit, 7 billion yen in market capitalization, and an operating margin close to 9% driven by higher in-house production and cost control.
• 2030 Vision: Positions 2027–2029 as a transformation period, targeting consolidated revenue above 10 billion yen and long-term market capitalization of 10 billion yen by the 2031 fiscal year.
• Shareholder Return Guidance: Plans a 33 yen annual dividend for FY2027, marking the 4th consecutive year of dividend increases. Will continue to actively evaluate treasury share purchases at appropriate opportunities, and maintain the existing shareholder benefit program that provides 10,000 yen in annual QUO cards for qualifying long-term shareholders holding 300+ shares.

For the 2026 February fiscal year, total consolidated revenue reached 6.481 billion yen, with all key profit metrics hitting record highs: operating profit of 0.485 billion yen, ordinary profit of 1.079 billion yen, growing 17.1%, 23.3% year-over-year respectively. By industry segment:

1. Broadcasting & Telecommunications: Revenue grew on the back of large project wins, contributing a significant share of total revenue.
2. Living & Housing: Includes approximately 0.6 billion yen in revenue from Asty, acquired via M&A in December 2024, and achieved organic revenue growth over the prior year.
3. Other industries: Includes the fast-growing Fan-Based Marketing (FBM) business, which delivered strong performance that lifted overall group results. Following a portfolio reorganization for the new mid-term plan, the business will be divided into three new going-forward segments: (1) CATV & Local Community Business, (2) Housing Construction & Life Community Business, (3) Brand & Fan Community Business.

• Ongoing geopolitical uncertainty from Middle East tensions has created an unclear economic outlook, and Nissen cannot take a optimistic view of near-term business conditions for its services and its clients' operations.
• The advertising industry and client markets are experiencing rapid structural change, requiring Nissen to update its service offerings and value proposition to avoid falling behind evolving market demand.
• Mature core businesses like the traditional Channel Guide service are facing natural market decline, requiring successful rationalization and new business development to offset downward pressure on this segment.

Q: What is the CEO's vision and commitment for the launch of the new mid-term plan? / A: Nissen has long competed as a unique advertising firm by avoiding direct competition and delivering high added value through market-focused, community-centric specialized marketing support. Management recognizes that large industry changes require the company to update its offerings while retaining its core strengths. Moving away from the prior individual business optimization model, the company will now build a shared company-wide infrastructure to integrate and leverage cross-business expertise, to speed up response to market change. The plan prioritizes accelerating investments in AI and systems, growing talent capabilities, and actively pursuing M&A to open new markets, with the company's strong balance sheet and long-standing client relationships supporting these investments even amid current macro uncertainty.