P.22 Capital and Financial Strategy (Business Portfolio Strategy)

22 Capital and Financial Strategy Business Portfolio Strategy We focus management resources on 3 core businesses: Premium Yutai Club, IR-navi, and sustainability solutions. We reduce administrative costs through the absorption-type merger of our subsidiary NetMile, Inc. We prioritize reliable profit generation and strengthening our financial position over expanding the scale of our advertising business. We build a unique platform model connecting individual and institutional investors. We aim for competitive advantage and market share expansion through differentiation based on high quality. Cash Allocation Strategy Cash and deposits for the fiscal year ended December 2025 were 3,141 million yen, maintaining a significant net cash surplus. We utilize this high liquidity for capital investment in software development and agile M&A. While maintaining an asset-light management approach, we keep our cash ratio above 65% as standby funds for future business investments. This enables us to respond flexibly to changes in the market environment and execute reinvestment for sustainable growth. Capital Policy We secured an equity ratio of 53.5% as of the end of December 2025, balancing financial soundness with agile investment capacity. We ensure stable liquidity by appropriately combining own funds and borrowings for working capital. We have expanded our capital base through the exercise of stock acquisition rights and past stock splits. As of the end of December 2025, capital stock was 246 million yen, and the total number of issued shares was 21,054,400. We utilize retained earnings as a source for future business expansion and M&A to enhance corporate value over the medium to long term. Shareholder Return Policy We maintain a policy of stable dividends, determining returns by comprehensively considering our performance and Dividend Payout Ratio. For the fiscal year ending December 2026, we plan an annual dividend of ¥18.00 per share and project a dividend payout ratio of 38.3%. We also prioritize shareholder returns as a key management issue and flexibly execute share buybacks through market purchases. We will pursue stable and continuous profit returns while balancing them with internal reserves. Management Conscious of Stock Price and Cost of Capital Our ROE for the fiscal year ended December 2025 remained high at 35.6%. As of the end of December 2025, the PER was 19x, and the PBR exceeded 6x. We will continue to grasp the optimal cost of capital through dialogue with investors and strive to further improve our valuation in the capital markets.