Top Commitment

1. Our reason for existence and practice as demonstrated by our group purposeThe group purpose formulated in 2023Sustainable growth for more companiesThe phrase "." embodies our strong determination to produce numerous companies that can grow powerfully and sustainably in any era, and for us ourselves to become such a company. Our main consulting clients are small and medium-sized enterprises, but it is the business owners themselves who greatly influence their sustainable growth. As a company that values management methods that put people at the center, we believe that our unique reason for existence lies in being able to provide comprehensive, advanced, and sustainable support to these business owners so that they can achieve success in both their business and their personal lives as business owners (Presidential Success).
Having grown up as the eldest son of a small business owner, I have continuously considered what a "long-term, fulfilling entrepreneurial journey" should look like, with the owner at the very center, since joining the company as a new graduate, and have evolved our business model accordingly. Specifically, we have restructured our consulting business, which was previously mainly aimed at large corporations, into a business model where medium-sized and small businesses can receive full services for a budget roughly equivalent to the salary of one employee. We have also democratized consulting services by supporting the biggest hurdles to achieving results such as improved performance—namely, "empowering the business owner" and "continuing to implement those practices"—through both a close-knit small-group entrepreneur community and hands-on support.
Furthermore, in order to ensure that the purpose is truly ingrained and put into practice by everyone in the group, rather than just being empty rhetoric, the office name was also changed.Sustainable Growth SquareThe name of the awards we have been holding for many years isSustainable growthAs part of our company awards, we hold over a dozen Purpose Town Hall meetings every year, and we will continue to pursue consistent initiatives in the medium to long term.
Our group,Sustainable growthBy producing as many companies as possible, we aim to enhance Japan's industrial competitiveness and productivity, contributing to the creation of a better future.

2. Sustainable and profitable business modelsAs various industry maps and data show, we are already the number one consulting firm in the small and medium-sized enterprise (SME) category, but our business model is significantly different from typical consulting firms. Our core revenue comes from consulting for SME managers, and our main entry point is through 1,516 one-off management seminars per year, attended by over 27,000 people, categorized by industry and business type. The next step is our membership-based, industry-specific, themed management services.Management workshopsAnd finally, it progresses step by step to monthly support-type consulting. Among these, in particular, membership-based managementManagement workshopsWe consider this to be our core focus and position it as an "industry- and theme-specific management academy" for managers of medium-sized and small businesses. As of the end of 2024, there are 213Management workshopsWith 7,512 members, we have formed a community of business owners where they can "build mentors and friends" through the sharing of success stories from the same industry nationwide and the exchange of information among business owners. Our monthly support consulting is positioned as a "private tutor" for business owners, with specialized consulting teams for each industry providing practical and highly effective growth implementation support based on success stories from all over the country. Furthermore, we provide fully individualized corporate growth support by solving various challenges at each stage of the client's lifecycle, such as recruitment and talent development support, DX and AI support, subsidy acquisition support, and value enhancement support such as IPOs and M&A. In short, we support the realization of president success by accompanying clients from the growth stage to the maturity stage and exit stage over the medium to long term.

3. Achieve record-high performance in 2024.In fiscal year 2024, we made a significant investment and challenge by consolidating our group's Tokyo headquarters in Yaesu. We achieved record-breaking performance, making significant progress toward achieving our medium-term plan and laying the foundation for future growth. (Consolidated)Net salesThe total was 30,645,050,000 yen (up 8.5% from the previous period).Operating incomeThis amounted to 8,324,170,000 yen (up 14.9% from the previous period). Second quarter of fiscal year 2025Financialsis,Net sales16,043,900,000 yen (up 11.4% year-on-year),Operating incomeSales reached 4,684,290,000 yen (up 11.0%), indicating steady progress toward achieving the medium-term management plan. In particular, the core management consulting business and logistics business both experienced double-digit growth.Operating incomeThe company achieved a profit increase of over 20%. This is due to an increase in the number of consultants to 1,111, exceeding 1,000 for the first time, as well as an increase in unit price, resulting in a profit per employee.Net sales9,607 thousand yen (up 7.2%), per personOperating incomeThis is due to the fact that the figure rose steadily to 2,804 thousand yen (up 6.8%).

4. The Evolution of DX Consulting in the AI EraIn 2025, as the final year of our 2023-2025 medium-term management plan, we will accelerate the evolution of our DX consulting services in order to achieve our group vision of becoming a "digital" x "comprehensive" management consulting group primarily focused on small and medium-sized enterprises.
To leverage AI not as a business risk but as a partner for expanding the capabilities of consultants, in November 2024, we provided all approximately 1,500 employees of the group with Google's generative AI, "Gemini for Google We have implemented "Workspace" across the board. This is not only to improve the efficiency of our employees' work, but also to quickly enhance their generative AI literacy, cultivate talent capable of developing and proposing new products and services utilizing AI, and transform ourselves into a consulting firm for the AI era. In order to support our clients' DX and AI implementation, we are first encouraging our group employees to thoroughly utilize generative AI.
Furthermore, in January 2025, ApparelWeb received the "2024 Annual Best Partner" award from Zoho, a global CRM company that is a premium partner, and in October 2025, ApparelWeb received the "Shopify" award from the global e-commerce platform Shopify. Premier We have been certified as a "Partner." By acting as a bridge between these global platform providers and Japanese small and medium-sized enterprises, and by providing implementation support consulting, we are accelerating the adoption of DX and AI by Japanese companies.
Furthermore, in July 2025, Funai Soken Logistics and Oki Electric Industry Co., Ltd. (hereinafter referred to as OKI) concluded a strategic business alliance aimed at promoting logistics DX. Through this alliance, we aim to develop and provide a platform that will support small and medium-sized logistics companies and shippers in regional areas, where labor shortages are particularly severe.
Furthermore, in October 2025 (planned), Funai Consulting India Private will open in Bengaluru, India. We have established Funai Soken India Limited. This is to serve as the global capability center of the Funai Soken Group, undertaking development projects and localizing English-language products into Japanese, as well as deepening collaboration with partner companies such as Zoho.

5. Promote support for transforming companies into "10 billion yen enterprises" that will shape Japan's future.Also, in Japan, 2024 isMid-market leadersAs it is called the first year, it also serves as a key economic policy for the country.Mid-market leadersNurturing such talent became a major theme. From the perspective of increasing the productivity of Japanese companies, which has become a national issue, we also shifted from our previous focus on supporting the growth of individual SMEs to fostering energetic individuals who can lead their regions and industries and increase productivity.Mid-market leadersSupporting the mass production of [this] has become a new priority.Net salesCompanies with a scale of 10 billion yen are expected to attract employment and investment to the region and serve as a cornerstone of regional revitalization. Therefore, we have adopted the sub-message "Let's create 10 billion yen in happiness for the region" for our 10 billion yen enterprise project. We launched the "10 billion yen enterprise project" in 2020, and in the past five years up to the end of 2024, we have had over 300 client companies.Net salesWe have reached 10 billion yen.
Furthermore, starting in July 2024, we conducted joint research with the Graduate School of Business Administration at Kobe University, and held the "10 Billion Yen Enterprise Research Public Symposium 2025" to share the results with society at large. Along with the analysis results on the success conditions necessary for becoming a 10 billion yen enterprise, we aim to further boost the "10 Billion Yen Enterprise Project" by systematically organizing success patterns from both theoretical and practical perspectives.

6. Acquisition of strong growth potential and new capabilities through M&A and organizational restructuring.In fiscal year 2025, we actively promoted strategic M&A and organizational restructuring to expand the range of solutions we offer to our clients and optimize our service delivery system. To give you a few examples from 2025, first, in January 2025, we established a joint venture company, "Funai Soken Agata FAS," with Agata Global Management Group to strengthen our business succession consulting. Furthermore, in July 2025, "MI Consulting," which specializes in collaborative M&A consulting and due diligence with financial institutions, joined our group. This has enabled us to provide high-quality M&A and business succession-related services in a one-stop shop.
Furthermore, to strengthen our cutting-edge marketing capabilities, Alma Creation, led by Masanori Kanda, a leading Japanese marketer who has mentored many business leaders, joined the group in January 2025. This move will allow us to share the latest marketing know-how, expand our membership base, and foster a diverse organization through a program supporting the development of female executives in collaboration with overseas MBA programs. Then, in April 2025, ApparelWeb, a company specializing in e-commerce and web marketing support primarily for the apparel industry, joined the group. This will expand our digital solution services, as outlined in our medium-term management plan, and strengthen our e-commerce and web marketing capabilities, particularly with regard to Shopify.
In organizational restructuring, we have decided to merge Funai Research Institute and Proceed to strengthen our business structure from fiscal year 2026, aiming to expand our contact center consulting business and strengthen our consulting services for large corporations. Furthermore, "HR The Human Capital Management Support Division of "Force" and "Funai Research Institute" will be integrated, and "Funai Research Institute HC (tentative name)" will be established from fiscal year 2026. We will establish a system that can provide one-stop support for recruitment, training, retention, RPO, etc. in the Capital domain, and promote human capital management consulting.

7. Investing in people and organizations as the foundation for growth.The source of a company's sustainable growth is "people." We view "human resources" as "human capital," that is, the source of value creation, and have made "proactive investment in human resources" a key policy in our medium-term management plan. Our group's Tokyo headquarters, which was relocated and consolidated in April 2024,Sustainable Growth Square Following our investment in "TOKYO," in January 2026, we will relocate our Osaka headquarters to Innogate Osaka, directly connected to JR Osaka Station. We believe that working in a state-of-the-art environment with better access, alongside our best colleagues and clients, will create a positive cycle that will further enhance our corporate value.
In terms of talent acquisition and development, we welcomed a total of 180 new employees to our group on April 1, 2025. Approximately 70% of our hires are new graduates, and a significant characteristic of our company is that one-third of them are individuals whose families run some kind of business. The main reason why individuals from family businesses join our company is that they can gain practical management experience. Strengthening our recruitment of individuals from family businesses, who have a deep understanding of the management of small and medium-sized enterprises, is a competitive advantage in recruitment that sets us apart from our competitors, and it is a major differentiating factor in forming a group of consultants who are trusted by the management of client companies in the consulting field.
In terms of employee development, we provide not only digital training to keep up with the times, but also basic business etiquette training including greetings and fundamental manners, on-the-job training (OJT) such as hands-on experience at client companies and shadowing senior employees, and systematic educational programs tailored to different levels and skill levels for early development. Furthermore, we are promoting the development of next-generation leaders by encouraging executives to participate in management as board members of group companies.
Regarding employee retention, we conduct an organizational survey every year and implement individual 1-on-1 interviews, continuously evolving to become a more rewarding company to work for. In terms of compensation, we are working on a project to increase the average annual salary of our consultants to 10 million yen by 2030.
Regarding the advancement of women, in February 2025 we signed the "Women's Empowerment Principles (WEPs)," which are action guidelines for actively promoting the advancement of women. We have set targets of 25% for the percentage of female managers in fiscal year 2025 and 30% in fiscal year 2030, and our actual performance in fiscal year 2024 was 24.1%, showing steady progress. Furthermore, we received the highest rating of 3 stars in the "Eruboshi Certification" program, recognized by the Ministry of Health, Labour and Welfare as a company with excellent efforts in promoting the advancement of women.Funai Soken Holdings Inc.Funai Research Institute gave HR 2 stars. Force acquired each of them (acquisition status: as of October 2025).

8. Management that emphasizes improved capital efficiency and shareholder returns.Our basic policy is to enhance shareholder value in the medium to long term by forming an optimal level of shareholder equity, expanding profits through proactive business investments, and improving capital efficiency.
As part of our efficiency policy, we have revised our ROE (Return on Equity) target for 2025 in our medium-term management plan upward from the previous 20% or higher to 25% or higher. Our actual ROE for fiscal year 2024 was 24.3%, and we are making strong progress toward achieving this target.
As a shareholder return policy, the dividend payout ratio is 55% or more andReturn-to-shareholders ratioWhile our target is over 60%, our performance in each fiscal year under the current medium-term plan has exceeded this. Furthermore, we plan to pay an annual dividend of 85 yen in fiscal year 2025, an increase of 10 yen from the previous year, which would mark our 15th consecutive year of dividend increases if achieved. In addition, in order to implement a flexible capital policy, improve capital efficiency, and enhance shareholder returns, we will raise up to 2.5 billion yen in August 2025.Treasury sharesWe have resolved to acquire the shares and have also expanded our shareholder benefit program to twice a year.
Furthermore, investor relations (IR) activities, including dialogue with investors, are crucial for enhancing our corporate value. We have established new shareholder briefings for individual investors and offer office tours to institutional investors. Valuable opinions and insights gained from constructive dialogues are shared with the Board of Directors through a dedicated department, and we are working to improve our practices while also receiving feedback from outside directors.

9. To our shareholders and stakeholdersWhile our company has achieved sustained profit growth, we see the lack of this translating into improved stock price performance as a challenge.
Fiscal year 2025 will be the final year of the medium-term management plan, for the groupNet sales33 billion yen,Operating incomeWe aim to achieve our targets of 8.9 billion yen in sales and an ROE of over 25%, and to strive for sustainable and robust business growth to enhance corporate value. We would appreciate your continued support.