KeyHolder, which integrates the planning, production, development and monetization of a wide range of IP (talent, artists and content), centered on Nogizaka46 as its core IP, is advancing initiatives to further expand its medium- to long-term earnings opportunities by leveraging the earnings power of its existing IP. The Company is broadening the activity domains and monetization opportunities of existing IP such as Nogizaka46, SKE48 and Novelbright. It is also expanding Video Production Business beyond traditional variety show production into dramas, films, distribution and overseas projects, while seeking to expand its social media advertising and digital marketing operations in Advertising Agency Business. Over the medium to long term, the Company aims to strengthen and develop its existing businesses through collaboration with external companies, use of big data from its fan club platform, the introduction of new technologies, the acquisition of creative talent and the reinforcement of its promotional capabilities. Beyond these initiatives, it has positioned the development of fully proprietary IP, for which it itself holds the rights and which offers multiple monetization opportunities including global expansion, as a future strategic theme. At present, many of these initiatives remain at the discussion and consideration stage, and the timing and scale of their specific earnings contributions remain unclear. Nevertheless, the direction of gradually building new sources of earnings while leveraging the earnings power of existing businesses has become clearer than before, representing a key consideration in assessing the Company’s medium- to long-term earnings potential.

Under its Medium-Term Management Plan “BEYOND THE STANDARD” (FY08/2027–FY08/2029), Cypress Holdings aims to achieve revenue of around ¥24,000m and operating profit of around ¥1,900m in FY08/2029, the final year of the plan. Based on the Company forecast for FY08/2026, this represents a CAGR of approximately 25% for revenue and approximately 30% for operating profit. For the plan period, the Company factors in only organic growth through the opening of 30 new stores annually and further earnings improvement at existing stores, while positioning franchise development, M&A and overseas expansion as additional growth drivers. The foundation for this growth is the expertise in opening new stores that the Company has accumulated at commercial facilities (shopping malls) through its multi-brand strategy encompassing 36 brands, while it plans to broaden its store-opening channels through expansion into roadside locations going forward. In addition, the charcoal-grilled yakitori takeout “Ginza Souzaiten” is positioned as a business format well suited to franchise development due to its relatively light investment and operational requirements. The Company is working to expand franchise agreements, which is expected to add a new earnings source to its existing earnings structure based solely on directly operated stores. By further strengthening initiatives to improve earnings at existing stores and broadening its growth areas to include new store openings, including at roadside locations, franchise development and overseas expansion, the Company appears poised to expand its earnings opportunities over the medium to long term.

At INTERLIFE HOLDINGS, which provides comprehensive services related to the design and construction of commercial facilities & public facilities, construction work on large-scale projects that had been under way since FY02/2026 progressed very smoothly. The operating profit margin increased substantially because these projects achieved profitability above initial expectations and their completion and related sales recognition were concentrated in Q1 (March–May) FY02/2027. This appears to reflect the results of the Company’s structural reforms centered on reorganizing its business portfolio, through which it has concentrated resources on Interior Construction and Sound & Lighting Facilities while proactively securing and executing large-scale, highly profitable projects. However, the high operating profit margin in Q1 (March–May) partly reflects the temporary impact of the concentration of the projects’ completion and related sales recognition in the quarter. Looking ahead, although issues requiring attention remain, including raw material price trends amid unstable international conditions, the Company has adopted a policy of enhancing its earnings capacity toward 2030 by capturing construction demand in the Tokyo metropolitan area and demand related to the integrated resort (IR) in Osaka. The core of its growth strategy is to strengthen its foundation for securing large-scale, highly profitable projects while focusing on expanding sales of new products closely related to existing business domains and developing new business domains. Furthermore, while pursuing management that emphasizes ESG and capital efficiency, the Company intends to pursue solutions, including M&A, to secure personnel responsible for construction and other operations, an area it identifies as its greatest risk factor.