■Future Performance of Ii Seikatsu <3796>

1. Performance Outlook for March 2025

The performance outlook for the fiscal year ending March 2025 shows a 11.1% increase to 3119 million yen in revenue compared to the previous year, a 43.2% decrease to 100 million yen in operating profit, a 52.4% decrease to 99 million yen in ordinary profit, and a 54.1% decrease to 67 million yen in net income attributable to parent company shareholders from the initial estimate. The company plans to close a large-scale project started in the fiscal year ending March 2024 and expects approximately 11% revenue growth through acquiring new customers, cross-selling and upselling to existing customers. The shift to SaaS in the enterprise market is accelerating, with strong accumulation of rental management SaaS projects and an expected increase in demand for implementation support. With the anticipation of over 10% revenue growth in the fiscal year ending March 2026, the company appears to be on a mid- to long-term growth trajectory.

To support sustainable growth, the company will continue to invest in human capital. Specifically, they aim to increase the average salary level for the entire group by more than 10% to attract and retain top talent, accelerate the expansion of the development team, and pace up product development. Furthermore, they are accelerating the preparation for introducing new products to enterprise customers and strengthening SaaS for trading, ensuring rapid response to market needs.

2. Basic Policy and Growth Strategy for the Fiscal Year Ending March 2025

The basic policy and growth strategy of the company for the fiscal year ending March 2025 focuses on promoting the introduction of SaaS to major corporations and supporting the SaaS shift leveraging the unique positioning. In particular, they are actively working on SaaS adoption to respond to the customization trends of large companies, adapting to legal revisions such as the invoicing system and electronic bookkeeping law. As the only listed company offering a SaaS-only system for managing real estate rental management and rental recruitment business, they leverage their unique positioning to support the SaaS shift of enterprise customers, achieve operational efficiency, and ensure legal compliance. Through the "Ii Seikatsu Square" platform, they aim to acquire real estate companies as free users, convert major rental management companies with high property supply capabilities into customers, and expand business circulation among operators. They are particularly promoting services such as "Ii Seikatsu Rental Cloud Property Advertisement" and "Ii Seikatsu Rental Cloud Sales Support" to facilitate entry for brokerage-side users. As of March 2024, approximately 19,000 companies were registered on "Ii Seikatsu Square", serving as a foundation for future growth. They are also focusing on expanding collaborative services, increasing the adoption through the sale of web conferencing and versatile electronic contract tools, ensuring stable revenue by integrating metered billing, and accelerating the provision of one-stop services, including data storage tools.

Through these strategies, the company aims for sustainable growth and strengthens its competitiveness within the industry. They plan to continue expanding market share by meeting the high functionality needs of major corporations and providing scalable SaaS solutions to small and medium-sized enterprises. We believe that flexible system provision to respond to legal revisions and the expansion of collaborative services will be key factors driving the company's growth.

(Reported by FISCO guest analyst Hiroshi Nakayama)