M e s s a g e

I would like to take this opportunity to express my sincere appreciation to our shareholders for their generous support.

Four years after the merger between two companies with different histories and cultures, we succeeded in achieving ¥6 billion in EBITDA, which was set as an important target in the CARTA2022 Medium-Term Business Plan, one year ahead of schedule. During the integration process, we created a management philosophy, established foundations for the future in various areas, and reorganized Group companies, in addition to which back office functions began working organically as one platform. On top of these changes, we engaged in new businesses such as that of TELECY, and took a proactive approach to investments and recruitment. There were some businesses that did not progress in accordance with plans. I also sense that, from the second half of 2022 in particular, the rise of inflation in Japan has led to significant changes in business conditions and a more challenging competitive environment.

It was under these circumstances that profit fell last year and is likely to fall again this year, but rather than simply taking up a defensive position we are instead proactively moving forward to implement initiatives for the future. Completion of the business integration will incur some costs, but we will integrate scattered offices and take resolute action to revise our business portfolio, including withdrawing from businesses that have not met expectations. We will also proceed with structural reforms in our existing major businesses with the aim of once again increasing profit margins. In 2023 the entire company will work as one to push forward with all of these initiatives at once. Although this will result in flat performance for the current fiscal year, I am confident that it will also put in place the cornerstone for renewed profit growth in the next and subsequent fiscal years. I also hope that, in the not-too-distant future, we will achieve record profits, further maximizing value for our shareholders.

I humbly request your continued understanding and generous support going forward.