Corporate Strategy Issues Corporate Strategy Issues

Issues

We have set forth a medium- to long-term growth strategy to realize our “Ateam Purpose” of “Combining Creativity and Tech to Deliver More Convenience and More Fun to All”, based on our management philosophies of “To Be a Company Where All Can Achieve Happiness Together” and “To Be a Company that Continues 100 Years from Today.” We have identified 12 major points for management and will work to respond quickly to each of them.

Enhancing Our Business Portfolio for Medium- to Long-Term Growth

Since the launch of our services, we have continued to transform and expand our business to achieve a balance between business stability and high growth potential. We currently operate three businesses: Lifestyle Support, Entertainment, and E-Commerce. We will continue to strengthen our business portfolio by making forward-looking investments through various strategies, including creating new businesses, collaborating with other companies, and utilizing M&A, with the aim of achieving sustainable growth and increasing our corporate value over the medium- to long-term.

Elevating Our Existing Offerings and Creating New Services in the Lifestyle Support Business

The Lifestyle Support business offers several convenient services that support major life events and the needs of daily life. We believe that enhancing our peripheral services to cater to the needs of users for each service and the strengthening of reciprocal customer transfers between these services in the future will lead to improved efficiency in attracting customers and higher profitability. We will also aim for growth in new services by proactively implementing measures to foster the sharing of customers between the services while securing a repeat customer base.

Growth in Global Markets in the Entertainment Business

The size of the global digital game distribution market (mobile games, digitally distributed PC games, and digitally distributed home video games) exceeds 26 trillion Japanese Yen, with continued strong growth in the three major regions of East Asia, North America, and Europe, particularly the latter. (Famitsu Game White Paper 2024). At the same time, competition is intensifying due to the full-scale entry of many domestic and foreign game makers. In order to achieve sustainable growth in this business environment, we will maintain stable earnings from existing games, while steering the development of multi-device games toward global expansion, targeting not only smartphones, but the entirety of the digital game distribution market. In the future, we will also promote collaborative projects with other companies and contracted development projects by utilizing the skills and know-how we have cultivated through game application development.

Success of New Products in the E-Commerce Business

The cosmetics brand lujo, launched in March 2020, sells several products, including foundation. The E-Commerce Business is continuously growing revenue by developing highly reproducible hit products and leveraging its ability to attract customers on the website. In August 2021, we released the OBREMO dog food brand, and we will continue to pursue revenue growth by expanding the product lineup with an eye to future medium- and long-term growth, so that we can drive further revenue growth for our group.

Recruitment and Development of Talented Human Resources

Recruiting talented human resources is essential for our sustainable growth. Our focus is on securing human resources by improving the work environment to support diverse working styles, enhancing welfare benefits, developing and implementing a personnel evaluation system, and diversifying recruitment activities.
In hiring, we strive to select people who not only have excellent expertise, but also people with strong character who can work within a team. We place importance on creating an organization where everyone can work together and enjoy working together for a long time by sharing the same corporate culture and management philosophy.
In addition, we are advancing the development of our human resource development systems, which includes the enhancement of training and education both inside and outside the company. We are also implementing programs, such as our job posting and free agent programs, to encourage dynamic human resource utilization; allowing talent to share their experience and knowledge across different companies within the group, and cultivating the talent in a way that they grow with the company.

Enhancement of Corporate Brand

To achieve sustainable growth and increase corporate value over the medium- to long-term, it is essential to improve the usability and quality of the services we provide, as well as to increase the visibility and name recognition of each service and increase the number of users.
In addition, as we strive to acquire capable human resources who support the business of the entire Group and the formation of alliances with other companies in a more advantageous manner, the Group will continue to work not only on advertising and promoting services, but also on improving corporate recognition and establishing a corporate image, while carefully assessing cost effectiveness. We will continue to enhance our corporate brand through appropriate and proactive information disclosure and public relations activities for our stakeholders.

Promotion of Sustainability Management

In order to realize our “Ateam Purpose” based on our group's management philosophies, we recognize the importance of contributing to the realization of a sustainable society as well as sustainable business growth for our group. We recognize that climate change and other environmental issues must be addressed going forward, so once the foundation for our management has been cemented, we will explore how we as a company can become more apt and create systems and processes that effectively address these issues. We will also be proactive with respect to our employees, including aspects such as the working environment and health and safety of employees, as well as diversity, equity, and inclusion.
Going forward, we will promote initiatives to address important issues, aiming to be a company that remains essential to all stakeholders, including customers, business partners, shareholders, employees, society, and the environment.

Strengthen Group Management Structure and Corporate Governance

The Group consists of eight domestic consolidated subsidiaries and one overseas consolidated subsidiary.
In order to achieve sustainable growth and increase corporate value over the medium- to long-term, we will ensure fairness and transparency in management, strengthen internal controls by the Board of Directors and the Audit and Supervisory Committee, implement various measures in line with the basic principles of the Corporate Governance Code, and continuously evaluate, analyze, and improve the effectiveness of the Board of Directors.

Strengthen Compliance and Risk Management Systems

The Group will strengthen our management foundation to achieve sustainable growth and increase our corporate value over the medium- to long-term, enhancing our compliance and risk management systems and further improve our corporate ethics.

Information Security and Cybersecurity

Due to the significant amount of confidential information we handle, including customer personal data and details related to new businesses, we acknowledge that information security risk is one of the paramount challenges that management faces.
In order to respond to increasingly sophisticated cyberattacks, we will keep abreast of the latest threat information and trends in security technologies, striving to enhance our multi-layered security measures based on the Zero Trust model.

Use of New Technologies

The Internet industry, including the smart device game industry to which our group belongs, is constantly undergoing technological innovation. In this environment, we believe it is essential to appropriately respond to various new technologies, including AI and the blockchain, to achieve sustainable growth and increase corporate value over the medium- to long-term. In addition, we will conduct technical research activities as a cross-group project to develop human resources capable of utilizing new technologies.

Ensure Quality and Safety of Products and Services

In addition to providing games for smart devices and various online services related to life events, the Group handles cosmetics, dog food, and other products in our E-Commerce Business. We will strive to ensure that all of our products and services are safe, secure, and of high quality.