Gifty ＜4449＞ plans, develops, and operates various e-gift services for individuals, corporations, and local governments.

We are developing 4 services as an “e-gift platform business.” The main giftee for business service, which accounts for 65.8% of sales in the first half of the 2024/12 fiscal year, is used in scenes where corporations grant gifts to users through campaigns, etc. Gifts such as convenience store products and coffee can be easily sent via LINE or email in place of conventional means such as mailing. Sales promotion with drastically reduced conventional costs can be realized, and motivation for participation can also be improved by realizing gradual promotion. Many companies, mainly large companies, have adopted it, and the number of e-gift companies (DP) in the 2nd quarter of the fiscal year ending 24/12 was 1,035 companies.

Also, the eGift System Service, which accounts for 9.8%, is a system that allows corporations to generate, distribute, sell, settle, and manage results of e-gifts. Regional currency services, which account for 3.0% of the same amount, provide digitization of tourist currency, etc., e-gifting of hometown tax payments, and various digitalization solutions for local governments. The giftee service, which accounts for the same 1.5%, is for individual users, and the number of members as of the end of 2023/12 will reach 2.14 million people. In addition, companies that sell experience gifts at physical stores such as their own EC sites, other companies' EC sites, mass retailers, etc., custom apparel service management companies, craft beer sales PF management companies, etc. are subsidiaries.

Cumulative sales for the first half of the fiscal year ending 2024/12 reached 4,460 million yen (up 24.4% from the same period last year), and operating profit reached 928 million yen (down 8.1% from the same period). Since large profits related to nationwide travel support were recorded in the first quarter of the previous year, there was a decrease compared to the same period last year, but high growth has been achieved when excluding the effects. As high demand for e-gifts continued in the main giftee for business service, the 2Q circulation value of 26.1 billion yen (26%) exceeded the same period last year, and it seems that high demand from corporations continues, starting with the largest large-scale projects ever. Both the number of DPs and the number of projects maintained a high level in the second quarter, which tends to be weakly included in terms of seasonality. Furthermore, in the eGift System service, the number of e-gift issuing companies (CP) increased steadily to 330 companies, an increase of 34 companies compared to the same period last year. Full-year sales are expected to be 9,109 million yen (up 26.0% from the previous fiscal year), and operating profit is expected to be 1,702 million yen (up 34.3% from the same period).

As a future growth strategy, we aim to expand e-gift platforms by expanding attractive content (number of CPs, industry/category) and expanding the number and distribution value of e-gift companies (DP). Furthermore, expansion into the ASEAN and MENA regions is progressing as a horizontal geographical expansion, and operations have already started in Malaysia and Indonesia, where there is little competition. We are promoting the introduction of the leading CP eGift System in ASEAN, where there are many purchase-type CPs, and expanding the number of DPs and distribution values. In the MENA region, it has been decided to make YougoTagift.com Ltd. (YGG), which develops the e-gift platform business, a subsidiary. The main target in the gift market is the domestic casual gift area of 6 trillion yen (personal gifts 5 trillion yen, corporate gifts 1 trillion yen; in particular, the main target is corporate gifts 1 trillion yen, which is currently in high demand), and while there is little competition, let's continue to work positively on business results by expanding market share. Overall, I would like to keep an eye on future trends of the company, which continues to grow in double digits in business performance.