Q2 2025 SBC Medical Group Holdings Inc Earnings Call

Speaker #1: It's time, so we would like to begin. Thank you very much for taking time out of your busy schedules to join SBC Medical Group Holdings for the Q2 2025 Earnings Call.

Mr. Yoshida: is time, so we would like to begin. Thank you very much for taking time out of your busy schedules to join SBC Medical Group Holdings' earnings call. Today, our CEO, Yoshiyuki Ikawa, and our Vice President, Mr. Yoshida, will present our Q2 results, business progress, and the capital policy. At the bottom of your screen, you will find a question box. If you have any questions, please answer them briefly and concisely. We will address them after the presentation. Now, I will hand over to Yoshiyuki Ikawa. CEO Yoshiyuki Ikawa, the floor is yours.

Speaker #1: Our name is Cole. Today, our CEO, Mr. Aikawa, and our Vice President, Mr. Yoshida, will present our second quarter results. Business progress on the capital policy.

Speaker #1: At the bottom of your screen, you will find a question box. If you have any questions, please enter them briefly and concisely. We will address them after the presentation.

Speaker #1: Now, I will hand over to Mr. Aikawa. CEO, Mr. Aikawa, the floor is yours.

Speaker #2: I'm Aikawa, CEO of SBC Medical Group Holdings. Thank you very much for joining our conference call today. Despite your busy schedule, I will now explain our results for the second quarter progress of our business and of capital policy.

Yoshida: I'm Aikawa, CEO of SBC Medical Group Holdings Inc. Thank you very much for joining our conference call today despite your busy schedule. I will now explain our results for Q2, progress of our business and our capital policy. First, let me provide an update on our franchise clinics. In July, JUN CLINIC joined our network, expanding our total number of clinics nationwide to 259, an increase of 36 clinics since last year. In Japan's aesthetics medicine industry, the competition is severe. However, the customers are steadily increasing continuously with 6.31 million visits annually. This scale is unmatched in Japan.

Yoshiyuki Aikawa: I'm Aikawa, CEO of SBC Medical Group Holdings Inc. Thank you very much for joining our conference call today despite your busy schedule. I will now explain our results for Q2, progress of our business and our capital policy. First, let me provide an update on our franchise clinics. In July, JUN CLINIC joined our network, expanding our total number of clinics nationwide to 259, an increase of 36 clinics since last year. In Japan's aesthetics medicine industry, the competition is severe. However, the customers are steadily increasing continuously with 6.31 million visits annually. This scale is unmatched in Japan.

Yoshiyuki Ikawa: I'm Yoshiyuki Ikawa, CEO of SBC Medical Group Holdings Inc. Thank you very much for joining our conference call today despite your busy schedule. I will now explain our results for the second quarter, progress of our business, and our capital policy. First, let me provide an update on our franchise clinics. In July, June Clinic joined our network, expanding our total number of clinics nationwide to 259, an increase of 36 clinics since last year. In Japan's cosmetic medicine industry, the competition is severe. However, the customers are steadily increasing continuously with 6.31 million visits annually. This scale is unmatched in Japan. Against our foundation, our top priority is to ensure that every customer feels that they are receiving value more than what they pay for and make them become our repeaters.

Speaker #2: First, let me provide an update on our franchise clinics. In this July, June clinic joined our network, expanding our total number of clinics nationwide to 259 and increased of 36 clinics.

Speaker #2: Since last year, and in the past, aesthetics medicine industry, the competition is severe. However, the customers are steadily increasing. Continuously, with 6.31 million visits annually, this scale is unmatched in Japan.

Speaker #2: Since our foundation, our top priority is to ensure that every customer feels that they are receiving value more than what they pay for. And make them become our repeaters.

Yoshida: Since our foundation, our top priority is to ensure that every customer feels that they are receiving value more than what they pay for, and make them become our repeaters. As a result, even now, we are remaining a high repeat rate of 72%, and we believe this is our utmost strength. However, having said that, while average customer spending continues to trend at a lower level than last year, we are seeing early signs of recovery in certain areas such as Gorilla Clinic. Therefore, moving forward, with a high share by far and with the high repeat rate, we would like to provide the treatment that matches the customer needs and provide the differentiation of our clinics. Next is our FY2025 Q2 earnings.

Yoshiyuki Aikawa: Since our foundation, our top priority is to ensure that every customer feels that they are receiving value more than what they pay for, and make them become our repeaters. As a result, even now, we are remaining a high repeat rate of 72%, and we believe this is our utmost strength. However, having said that, while average customer spending continues to trend at a lower level than last year, we are seeing early signs of recovery in certain areas such as Gorilla Clinic. Therefore, moving forward, with a high share by far and with the high repeat rate, we would like to provide the treatment that matches the customer needs and provide the differentiation of our clinics. Next is our FY2025 Q2 earnings.

Speaker #2: And as a result, even now, we are remaining a high repeat rate of 72%. And we believe this is our utmost strength. However, having said that, while average customer spending continues to trend at a lower level than last year, we are seeing early signs of recovery in certain areas such as Korea Clinic.

Yoshiyuki Ikawa: As a result, even now, we are remaining a high repeat rate of 72%, and we believe this is our utmost strength. Having said that, while average customer spending continues to trend at a lower level than last year, we are seeing early signs of recovery in certain areas such as Androgenetic Alopecia (AGA) treatments. Therefore, moving forward with the highest share by far and with the high repeat rate, we would like to provide the treatment that matches the customer needs and provide the differentiation of our clinics. Next is our FY 2025 second quarter earnings. In 2024, we strategically restructured our business, exiting staffing services and deconsolidating some affiliates. Furthermore, in April this year, we also revised our franchise fees. As a result, total revenue declined 18% year on year. However, this is a strategic restructuring to ensure future growth, and the groundwork has been laid.

Speaker #2: Therefore, moving forward, with a harsh share by far and with the high repeat rate, we would like to provide via treatment that matches the customer needs and provide the differentiation of our clinics.

Speaker #2: Next, is our FY 2025 second quarter earnings. In 2024, we strategically restructured our business, exiting staffing services and de-consolidating some affiliates. Furthermore, in April this year, we also revised our franchise fees.

Yoshida: In 2024, we strategically restructured our business, exiting staffing services and deconsolidating some affiliates. Furthermore, in April this year, we also revised our franchise fees. As a result, total revenue declined 18% year-on-year. However, this is a strategic restructuring to ensure future growth, and the groundwork has been laid. Therefore, from the Q3 onward, we intend to accelerate growth. Elsewhere, increased point redemption by customers at our clinics reduced revenue, which in turn impacted management of service revenues. On the other hand, procurement and rental revenues rose due to higher purchase of medical materials and replacement of hair removal devices. The elevated effective tax rate this quarter is mainly due to non-deductibility of some executive compensation and temporary timing differences in aircraft sales recognition between Japan and the United States.

Yoshiyuki Aikawa: In 2024, we strategically restructured our business, exiting staffing services and deconsolidating some affiliates. Furthermore, in April this year, we also revised our franchise fees. As a result, total revenue declined 18% year-on-year. However, this is a strategic restructuring to ensure future growth, and the groundwork has been laid. Therefore, from the Q3 onward, we intend to accelerate growth. Elsewhere, increased point redemption by customers at our clinics reduced revenue, which in turn impacted management of service revenues. On the other hand, procurement and rental revenues rose due to higher purchase of medical materials and replacement of hair removal devices. The elevated effective tax rate this quarter is mainly due to non-deductibility of some executive compensation and temporary timing differences in aircraft sales recognition between Japan and the United States.

Speaker #2: As a result, total revenue declined 18% year-on-year. However, this is a strategic restructuring to ensure future growth and the groundwork has been laid. Therefore, from the third quarter onward, we intend to accelerate growth.

Yoshiyuki Ikawa: Therefore, from the third quarter onward, we intend to accelerate growth. Elsewhere, increased point redemption by customers at our clinics reduced revenue, which in turn impacted management service revenues. On the other hand, procurement and rental revenues rose due to higher purchase of medical materials and replacement of hair removal devices. The elevated effective tax rate this quarter is mainly due to non-deductibility of some executive compensation and temporary timing differences in aircraft sales recognition between Japan and the U.S. So, more than what we have expected, the tax we had to pay in advance was higher. That is why the net profit became this way. This is a one-time advance payment of tax. It's how we understand this. Next, June Clinic has joined our network. I would like to explain our business strategy progress. This July, we acquired MV Career Lounge, bringing June Clinic into our clinic network.

Speaker #2: And elsewhere, increased point redemption by customers at our clinics reduced revenue, which in turn impacted management service revenues. On the other hand, procurement and rental revenues rose due to higher purchases of medical materials and the replacement of hair removal devices.

Speaker #2: The elevated effective tax rate this quarter is mainly due to non-deductibility of some executive compensation and temporary timing differences. In aircraft sales recognition, between Japan and the United States, so more than what we have expected, the tax we had to pay in advance was a higher that is why the net profit became this way.

Yoshida: More than what we have expected, the tax we had to pay in advance was higher. That is why the net profit became this way. This is a one-time advanced payment of tax, is how we understand this. Next. JUN CLINIC has joined our network. I would like to explain our business strategy progress. This July, we acquired MB Career Lounge, bringing JUN CLINIC into our clinic network. JUN CLINIC operates 6 clinics across Japan and is known for customized laser treatments based on skin diagnosis provided by the doctors. From the variety of lasers, the doctors will combine the lasers and provide a personalized recipe to the customer, saying, "This is your matching treatment." That is the strength.

Yoshiyuki Aikawa: More than what we have expected, the tax we had to pay in advance was higher. That is why the net profit became this way. This is a one-time advanced payment of tax, is how we understand this. Next. JUN CLINIC has joined our network. I would like to explain our business strategy progress. This July, we acquired MB Career Lounge, bringing JUN CLINIC into our clinic network. JUN CLINIC operates 6 clinics across Japan and is known for customized laser treatments based on skin diagnosis provided by the doctors. From the variety of lasers, the doctors will combine the lasers and provide a personalized recipe to the customer, saying, "This is your matching treatment." That is the strength.

Speaker #2: This is a one-time advance payment of tax. It's how we understand this. Next, June clinic has joined our network and also I would like to explain our business strategy, progress.

Speaker #2: This July, we acquired MV Career Lounge, bringing June clinic into our clinic network. June clinic operates six clinics across Japan, and is known for customized laser treatments based on skin diagnosis.

Yoshiyuki Ikawa: June Clinic operates six clinics across Japan and is known for customized laser treatments based on skin diagnosis provided by the doctors. From the variety of lasers, the doctors will combine the lasers and provide a personalized recipe to the customer, saying, "This is your matching treatment." That is the strength. The reason why we focused or had interest in June Clinic is that the way they diagnose the customers has characteristics, meaning that it is matching the current patient's needs. They also provide a fixed pricing, meaning they receive 40,000 yen upfront, and will leave the treatment decision up to the doctor. Therefore, it had a unique characteristic. That is why we have contacted them and asked them to join our network. As I said right now, this combination of fixed pricing and personalization delivers high customer satisfaction and retention.

Speaker #2: Provided by the adopters, so from the variety of lasers, the adopters will combine the lasers and provide the personalized recipe to the customer, saying, "This is your matching treatment."

Speaker #2: And that is the strength. The reason why we focused or had interest in June clinic is that the way they diagnose the customers has a characteristic meaning that it is matching the current patient's needs and also they provide a fixed pricing, meaning they receive, if it's 40,000 yen, 40,000 yen upfront and will leave the treatment decision up to the doctor.

Yoshida: The reason why we focused or had interest in Jun Clinic is that the way they diagnose, the customers has a characteristics, meaning that it is matching the current patient's needs. Also they provide a fixed pricing, meaning they receive, if it's 40,000 JPY, 40,000 JPY up front, and will leave the treatment decision up to the doctor. Therefore, it had a unique characteristics. That is why we have contacted them and asked them to join our network. As I said, right now, this combination of fixed pricing and personalization delivers high customer satisfaction and retention. Also the marketing cost is extremely low and is achieving high profitability. Moving forward, the Jun Clinic number is going to expand.

Yoshiyuki Aikawa: The reason why we focused or had interest in Jun Clinic is that the way they diagnose, the customers has a characteristics, meaning that it is matching the current patient's needs. Also they provide a fixed pricing, meaning they receive, if it's 40,000 JPY, 40,000 JPY up front, and will leave the treatment decision up to the doctor. Therefore, it had a unique characteristics. That is why we have contacted them and asked them to join our network. As I said, right now, this combination of fixed pricing and personalization delivers high customer satisfaction and retention. Also the marketing cost is extremely low and is achieving high profitability. Moving forward, the Jun Clinic number is going to expand.

Speaker #2: And therefore, it had a unique characteristics. And that is why we have contacted them and asked them to join our network. And as I said right now, this combination of fixed pricing and personalization delivers high customer satisfaction and retention.

Speaker #2: And also, the marketing cost is extremely low and is achieving high profitability. Moving forward, the June clinic number is going to expand; therefore, the June clinic will become a key growth driver for us.

Yoshiyuki Ikawa: Also, the marketing cost is extremely low and is achieving high profitability. Moving forward, the June Clinic number is going to expand. Therefore, June Clinic will become a key growth driver for us. It's how I think. Next is turning to dermatological aesthetic medicine in Japan. The dermatological aesthetics, looking at the data, is having a higher growth rate. Therefore, this is a promising field with significant growth potential. There's still room for us to further grow in this area as well. To respond precisely to diverse customer needs, we are implementing a multi-brand strategy tailored to different market segments. This April, we launched Neo Skin Clinic, targeting expert-level customers with a focus on early adoption of global advanced treatments. Once we have opened this clinic, it has already gained such popularity that securing appointments is becoming difficult. Up to now, we have been opening up different concept clinics.

Yoshida: Therefore, JUN CLINIC will become a key growth driver for us, is how I think. Next is turning to dermatological aesthetic medicine in Japan. The dermatological aesthetics, looking at the data, it is having a higher growth rate. Therefore, this is a promising field with significant growth potential, and there's still room for us to further grow in this area as well. To respond precisely to diverse customer needs, we are implementing a multi-brand strategy tailored to different market segments. This April, we launched Neo Skin Clinic, targeting expert-level customers with a focus on early adoption of global advanced treatments. Once we have opened this clinic, it has already gained such popularity that securing appointments is becoming difficult. Up to now, we have been opening up different concept clinics.

Yoshiyuki Aikawa: Therefore, JUN CLINIC will become a key growth driver for us, is how I think. Next is turning to dermatological aesthetic medicine in Japan. The dermatological aesthetics, looking at the data, it is having a higher growth rate. Therefore, this is a promising field with significant growth potential, and there's still room for us to further grow in this area as well. To respond precisely to diverse customer needs, we are implementing a multi-brand strategy tailored to different market segments. This April, we launched Neo Skin Clinic, targeting expert-level customers with a focus on early adoption of global advanced treatments. Once we have opened this clinic, it has already gained such popularity that securing appointments is becoming difficult. Up to now, we have been opening up different concept clinics.

Speaker #2: That's how I think. Next, is turning to dermatological aesthetic medicine in Japan. The dermatological aesthetics looking at the data it is having a higher growth rate; therefore, this is a promising field in with significant growth potential.

Speaker #2: And they're still room for us to further grow in this area as well. To respond precisely to diverse customer needs, we are implementing a multi-brand strategy tailored to different market segments.

Speaker #2: And this April, we launched Neo Skin Clinic, targeting expert-level customers with a focus on early adoption of global advanced treatments. And once we have opened this clinic, it has already gained such popularity that procurement appointments are becoming difficult up to now.

Speaker #2: We have been opening up different concept clinics; however, this Neo Skin Clinic has been the fastest ramping up clinic. And we have high expectations towards it and moving forward, we would like to roll out this concept globally, not just keeping it in Japan.

Yoshida: However, this NEO Skin Clinic has been the fastest ramping up clinic, and we have high expectations towards it. Moving forward, we would like to roll out this concept globally, not just keeping it in Japan. Average spend per customer exceeds that of our existing clinics. As I mentioned before, the JUN Clinic is also achieving an average spend per customer exceeding our existing clinics. These NEO Skin Clinic and JUN Clinic are going to become the two strong weapons for our future growth strategy. Moving forward, for the entry-level customers, we are preparing a new clinic format within the advanced countries, Japan. The percentage of people receiving aesthetic medicine treatment is low.

Yoshiyuki Aikawa: However, this NEO Skin Clinic has been the fastest ramping up clinic, and we have high expectations towards it. Moving forward, we would like to roll out this concept globally, not just keeping it in Japan. Average spend per customer exceeds that of our existing clinics. As I mentioned before, the JUN Clinic is also achieving an average spend per customer exceeding our existing clinics. These NEO Skin Clinic and JUN Clinic are going to become the two strong weapons for our future growth strategy. Moving forward, for the entry-level customers, we are preparing a new clinic format within the advanced countries, Japan. The percentage of people receiving aesthetic medicine treatment is low.

Yoshiyuki Ikawa: However, this Neo Skin Clinic has been the fastest ramping up clinic, and we have high expectations towards it. Moving forward, we would like to roll out this concept globally, not just keeping it in Japan. Average spend per customer exceeds that of our existing clinics. As I mentioned before, the June Clinic is also achieving an average spend per customer exceeding our existing clinics. These Neo Skin Clinic and June Clinic are going to become the two strong weapons for our future growth strategy. Moving forward, for the entry-level customers, we are preparing a new clinic format within the advanced countries. Japan, when it comes to the percentage of people receiving aesthetic medicine treatment, is low. Moving forward, we believe that the market is going to expand by twofolds and threefolds.

Speaker #2: Average spend per customer exceeds that of our existing clinics. And as I mentioned before, the June clinic is also achieving an average spend per customer exceeding our existing clinics.

Speaker #2: So this Neo Skin Clinic in June clinic are going to become the two strong weapons for our future growth strategy. And moving forward, for the entry-level customers, we are preparing a new clinic format within the advanced countries Japan.

Speaker #2: When it comes to the percentage of people receiving aesthetic medicine treatment, it is low. So moving forward, we believe that the market is going to expand by twofold and threefold.

Yoshida: Moving forward, we believe that the market is going to expand by twofold and threefold. In order to achieve that. As the number one group in our industry, we would like to implement initiatives that will enable us to do so. For the people who are interested in aesthetic medicine, we would like to open up our doors. The self-funded medical care and insurance covered treatments, because insurance covered treatments is something that the customers are easier to visit the clinics. We are going to have a hybrid model aimed at those interested in beauty care with this combination. By satisfying reliability as a medical provider and interest in aesthetic care, we aim to develop a new customer base and expand our aesthetic medicine.

Yoshiyuki Aikawa: Moving forward, we believe that the market is going to expand by twofold and threefold. In order to achieve that. As the number one group in our industry, we would like to implement initiatives that will enable us to do so. For the people who are interested in aesthetic medicine, we would like to open up our doors. The self-funded medical care and insurance covered treatments, because insurance covered treatments is something that the customers are easier to visit the clinics. We are going to have a hybrid model aimed at those interested in beauty care with this combination. By satisfying reliability as a medical provider and interest in aesthetic care, we aim to develop a new customer base and expand our aesthetic medicine.

Speaker #2: And in order to achieve that, as the number one group in our industry, we would like to implement initiatives that will enable us to do so.

Yoshiyuki Ikawa: In order to achieve that, as the number one group in our industry, we would like to implement initiatives that will enable us to do so. For the people who are interested in aesthetic medicine, we would like to open up our doors. The self-funded medical care and insurance-covered treatments, because insurance-covered treatments is something that the customers are easier to visit the clinic. We are going to have a hybrid model aimed at those interested in beauty care with this combination. By satisfying reliability as a medical provider and interest in aesthetic care, we aim to develop a new customer base and expand our aesthetic medicine.

Speaker #2: So for the people who are interested in aesthetic medicine, we would like to open up our doors. So the self-funded medical care and insurance-covered treatments, because insurance-covered treatments is something that the customers are easier to visit the clinics.

Speaker #2: So we are going to have a hybrid model in those interested in beauty care with this combination. So by satisfying reliability as a medical provider and interest in aesthetic care, we aim to develop a new customer base and expand our aesthetic medicine.

Speaker #1: Each foundation clearly positioned whether they're staying on their strengths, enabling us to build a strong presence in the non-surgical aesthetic segment. We are also strengthening support for franchise clinics in response to market changes.

Aikawa: Each brand is clearly positioned, whether distinct or strength, enabling us to build a strong presence in the nonsurgical aesthetic segment. We are also strengthening support for franchise clinics and in response to market changes. Specifically, we advise on shifting to higher-margin models and support their implementation. Two clinics completed such transition in the first half, showing clear financial improvements. Three more clinics are currently undergoing similar transformations, contributing to stable medium to long-term operations. Next, please. Currently, demand is weakening. There are many inbound tourists coming to Japan. We are focusing on and enhancing our medical tourism business. We are particularly focused on the Chinese tourists, enhancing local outreach through the popular platform RED, increasing interpreters, and hosting events in Shanghai. These initiatives have yielded strong results. Next. Orthopedics and AGA treatment.

Yoshiyuki Aikawa: Each brand is clearly positioned, whether distinct or strength, enabling us to build a strong presence in the nonsurgical aesthetic segment. We are also strengthening support for franchise clinics and in response to market changes. Specifically, we advise on shifting to higher-margin models and support their implementation. Two clinics completed such transition in the first half, showing clear financial improvements. Three more clinics are currently undergoing similar transformations, contributing to stable medium to long-term operations. Next, please. Currently, demand is weakening. There are many inbound tourists coming to Japan. We are focusing on and enhancing our medical tourism business. We are particularly focused on the Chinese tourists, enhancing local outreach through the popular platform RED, increasing interpreters, and hosting events in Shanghai. These initiatives have yielded strong results. Next. Orthopedics and AGA treatment.

Mr. Yoshida: Niche brand is clearly positioned with the distinct strength in enabling us to build a strong presence in the nonsurgical aesthetic segment. We are also strengthening support for franchise clinics in response to market changes. Specifically, we advise on shifting to higher margin models and support their implementation. Two clinics completed such transition in the past half, showing clear financial improvements. Three more clinics are currently undergoing similar transformations, contributing to stable medium to long-term operations. Next, please. Currently, Yen is weakening, so there are many inbound tourists coming to Japan. We are focusing on and enhancing our medical tourism business. We are particularly focused on the Chinese tourists, enhancing local reach through the popular platform, Reddit, increasing interpreters, and hosting events in Shanghai. These initiatives have yielded strong results. Next, orthopedics and Androgenetic Alopecia (AGA) treatments.

Speaker #1: Specifically, we advise on shifting to high-emerging models and support their implementation. Two clinics completed such transition in the first half, showing clear financial improvements.

Speaker #1: Three more clinics are currently undergoing similar transformations, contributing to stable medium to long-term operations. Next, please. Currently, Yen is weakening so there are many inbound tourists coming to Japan.

Speaker #1: So we are focusing on and enhancing our medical tourism business. We are particularly focused on the Chinese tourists enhancing local tourism through the popular platform where increasing interpreters and hosting events in Shanghai.

Speaker #1: These initiatives have yielded strong results. Next, orthopedics and AGA treatment; those are the high growth and high-emerging areas. So we will concentrate on the management resources moving forward.

Aikawa: Those are the high-growth and high-margin areas, we will concentrate our management resources moving forward. Now, for example, in orthopedics, we are expanding from short stature treatment into the joint pain therapy and rehabilitation in response to aging demographics to expand our business. Japanese aging society is advancing, so although business is going to be the business which has the high growth potential, we are ranked on the 7th right now in Japan. I think that we can increase the number of clinics from 7 to 100 moving forward. Fertility business is another important business area. Our hair loss services include medication transplantation and laser therapies. This comprehensive approach sets SBC apart, as most AGA clinics focus only on medication. We are offering a comprehensive treatment, and that is our strength in Japan.

Yoshiyuki Aikawa: Those are the high-growth and high-margin areas, we will concentrate our management resources moving forward. Now, for example, in orthopedics, we are expanding from short stature treatment into the joint pain therapy and rehabilitation in response to aging demographics to expand our business. Japanese aging society is advancing, so although business is going to be the business which has the high growth potential, we are ranked on the 7th right now in Japan. I think that we can increase the number of clinics from 7 to 100 moving forward. Fertility business is another important business area. Our hair loss services include medication transplantation and laser therapies. This comprehensive approach sets SBC apart, as most AGA clinics focus only on medication. We are offering a comprehensive treatment, and that is our strength in Japan.

Mr. Yoshida: Those are the high growth and high margin areas, so we will concentrate on the management resources moving forward. For example, in orthopedics, we are expanding from short-stature treatment into joint pain therapy and rehabilitation in response to aging demographics to expand our business. Japanese aging society is advancing, so orthopedics is going to be the business which has the high growth potential. We are ranked on the seventh right now in Japan. I think that we can increase the number of clinics from 7 to 100 moving forward. Fertility in the business is another important business area. Our hairless services include medication transplantation and laser therapies. This is a comprehensive approach in a sense that SBC partner has most Androgenetic Alopecia (AGA) clinics focused only on medication. We are offering a comprehensive treatment. That is our strength.

Speaker #1: Now, for example, in orthopedics, we are expanding from stature treatment into the joint pain therapy and rehabilitation in response to aging demographics. To expand our business, Japanese aging society is advancing.

Speaker #1: So although business is going to be the business which has the high growth potential, we are ranked on the seventh right now in Japan.

Speaker #1: But I think that we can increase the number of clinics from seven to 100 moving forward. Fertility in our business is another important business area.

Speaker #1: And our hair loss services include medication transplantation and laser therapies. This comprehensive approach sets SBC apart as the most AGA clinics in the focus only on meditation.

Speaker #1: So, we are offering a comprehensive treatment that is our strength in Japan. We are ranked second in terms of market share in Japan.

Mr. Yoshida: In Japan, we are ranked on the second place in terms of the market share in Japan. So within this year or next year, we are trying to be number one. The target within 10 years in an ortho, fertility, and Androgenetic Alopecia (AGA), we want to be the number one market leader in those areas in Japan moving forward. In our international business, we are currently enhancing our structure. In the U.S., renowned plastic surgeon, Dr. Steven Cohen, joined as an advisor. In April, Steven Rogers, previously employed by Amazon and Rakuten, with experience in business development and M&A, joined as the Head of International Strategy. In Singapore, where we acquired AHH last year, we have launched the Japanese language services to better serve the local Japanese community. We are planning to expand our business.

Aikawa: We are ranked on the second place in terms of the market share in Japan. Within this year or next year, we now try to be a number one. Our target within 10 years is in ortho, fertility, and AGA. We want to be the number one market leader in those areas in Japan moving forward. In our international business, we are currently enhancing our structure. In the US, renowned plastic surgeon, Dr. Steven Cohen, joined as an advisor. In April, Steven Rogers, previously employed by Amazon and Rakuten, with experience in business development and M&A, joined as the Head of International Strategy. In Singapore, where we acquired AHH last year, we have launched the Japanese language services to better serve the local Japanese community. We are planning to expand our business.

Yoshiyuki Aikawa: We are ranked on the second place in terms of the market share in Japan. Within this year or next year, we now try to be a number one. Our target within 10 years is in ortho, fertility, and AGA. We want to be the number one market leader in those areas in Japan moving forward. In our international business, we are currently enhancing our structure. In the US, renowned plastic surgeon, Dr. Steven Cohen, joined as an advisor. In April, Steven Rogers, previously employed by Amazon and Rakuten, with experience in business development and M&A, joined as the Head of International Strategy. In Singapore, where we acquired AHH last year, we have launched the Japanese language services to better serve the local Japanese community. We are planning to expand our business.

Speaker #1: So, within this year or next year, we are trying to be number one. Our target within 10 years in also fertility and AGA; we want to be number one.

Speaker #1: Market leader in those areas in Japan moving forward. In our international business, we are currently enhancing our structure. In the U.S., we're now in the classic surgeon.

Speaker #1: Dr. Steven Cohen joined as an advisor. And in April, Steven Rogers, previously employed by Amazon and Rakuten, with experience in the business development and M&A, joined as the head of international strategy.

Speaker #1: In Singapore, where we acquired AHH last year, we have launched the Japanese language services to better serve the local Japanese community. So we are planning to expand our business.

Speaker #1: We have also welcomed Xingya in Norway, our marketing leader with a track record at PNG Eli Lilly and Adobe in the CMO to drive global branding and marketing.

Mr. Yoshida: We have also welcomed Shinya Inoue, our marketing leader, with a track record at P&G, Eli Lilly, and Adobe as the CMO to drive global branding and marketing. Next, financial base. We continue to maintain a robust financial base with sufficient cash on hand. These funds will be actively invested in both domestic and international organic growth, as well as strategic growth opportunities, including M&A. That is our aspiration. Next, please. Finally, regarding our capital policy, we recognize that the liquidity in our shares remains limited, making trading difficult for many institutional investors. To address this, we are working to improve the supply-demand balance and are considering new share issuance and partial sales by the founder. These steps aim to improve accessibility for a broader investor base. From May to July, we conducted our first-ever share buybacks, which we believe contributed positively to our share price and liquidity.

Aikawa: We have also welcomed Shinya Inoue, our Marketing Leader, with a track record at P&G, Eli Lilly, and Adobe as the CMO to drive global branding and marketing. Next, financial base. We continue to maintain a robust financial base with a sufficient cash on hand. These funds will be actively invested in both domestic and international organic growth, as well as strategic growth opportunities, including M&A. That's our aspirations. Next, please. Finally, regarding our capital policy, we recognize that liquidity in our shares remains limited and making trading difficult for many institutional investors. To address this, we are working to improve the supply-demand balance and are considering new share issuance and purchase sale by the founder. These steps aim to improve accessibility for a broader investor base.

Yoshiyuki Aikawa: We have also welcomed Shinya Inoue, our Marketing Leader, with a track record at P&G, Eli Lilly, and Adobe as the CMO to drive global branding and marketing. Next, financial base. We continue to maintain a robust financial base with a sufficient cash on hand. These funds will be actively invested in both domestic and international organic growth, as well as strategic growth opportunities, including M&A. That's our aspirations. Next, please. Finally, regarding our capital policy, we recognize that liquidity in our shares remains limited and making trading difficult for many institutional investors. To address this, we are working to improve the supply-demand balance and are considering new share issuance and purchase sale by the founder. These steps aim to improve accessibility for a broader investor base.

Speaker #1: Next, financial base. We continue to maintain robust financial base with a sufficient cash on hand. These funds will be actively invested in both domestic and international organic growth.

Speaker #1: As well as strategic growth opportunities, including M&A, that's our aspiration. Next, please. Finally, regarding our capital policy, we recognize that liquidity in our shares remains limited and making trading difficult for many institutional investors.

Speaker #1: To address this, we are working to improve the supply-demand balance and are considering new share issuance and partial sales by the founder. These steps aim to improve accessibility for a broader investor base.

Speaker #1: From May to July, we conducted our first ever share buybacks. Which we believe contributed positively to our share price and liquidity in June, we were added to the Russell 3000 index.

Aikawa: From May to July, we conducted our first ever share buyback, which we believe contributed positively to our share price and liquidity. In June, we were added now to the Russell 3000 Index, which we understand now will further enhance our visibility and liquidity. Going forward, we will continue to monitor market conditions closely and take appropriate timely actions. This concludes my presentation. Thank you very much for your attention.

Yoshiyuki Aikawa: From May to July, we conducted our first ever share buyback, which we believe contributed positively to our share price and liquidity. In June, we were added now to the Russell 3000 Index, which we understand now will further enhance our visibility and liquidity. Going forward, we will continue to monitor market conditions closely and take appropriate timely actions. This concludes my presentation. Thank you very much for your attention.

Mr. Yoshida: In June, we were added to the Russell 3000 Index, which we understand will further enhance our visibility and liquidity. Going forward, we will continue to monitor market conditions closely and take appropriate timely actions. This concludes my presentation. Thank you very much for your attention.

Speaker #1: Which we understand will further enhance our visibility and liquidity. Going forward, we will continue to monitor market conditions closely and take appropriate timely actions.

Speaker #1: This concludes my presentation. Thank you very much for your attention. CEO, Mr.

Yoshida: CEO, Mr. Aikawa, thank you very much. Now from the participants that we have been receiving many questions, so we would like to answer them in order. The first question. The new clinics you are opening them up, many of them. Are the new clinics starting up as planned? The male customers, are you seeing increase in that? Please go ahead.

Yuya Yoshida: CEO, Mr. Aikawa, thank you very much. Now from the participants that we have been receiving many questions, so we would like to answer them in order. The first question. The new clinics you are opening them up, many of them. Are the new clinics starting up as planned? The male customers, are you seeing increase in that? Please go ahead.

Yoshiyuki Ikawa: CEO Yoshiyuki Ikawa, thank you very much. Now, from the participants, we have been receiving many questions, so we would like to answer them in order. The first question: The new clinics you are opening, many of them, are the new clinics starting up as planned? Are you seeing an increase in male customers? Please go ahead. First of all, the newly opening clinics this year, we are seeing a steady visit by customers. The Gorilla Clinic and Astro Del Luze, we are opening the new clinics continuously. As for the male customers, we are seeing a large number of them visiting our clinics, and we are seeing an increase in that number. Compared to the female customers, the male customers' growth rate, we believe, has a lot of potential because there are not that many that are entering the market.

Speaker #2: Aikawa, thank you very much now from the participants that we have been receiving many questions that we would like to answer them in order.

Speaker #2: The first question, the new clinics, you are opening them up. Many of them are the new clinics. Starting up as planned, and the male customers are using increase in that.

Speaker #2: Please go ahead. First of all, the newly opening clinics this year we are seeing a steady visit by customers. The clinic and as we are opening up a new clinics continuously.

Aikawa: First of all, the newly opening clinics this year, we are seeing a steady visit by our customers, by the Gorilla Clinic and Astro the laser. We are opening up the new clinics continuously. As for the male customers, we are seeing a large number of them visiting our clinics, and we are seeing an increase in that number. Compared to the female customers, the male customers, the growth rate we believe has a lot of potential because there's not that many that are entering the market.

Yoshiyuki Aikawa: First of all, the newly opening clinics this year, we are seeing a steady visit by our customers, by the Gorilla Clinic and Astro the laser. We are opening up the new clinics continuously. As for the male customers, we are seeing a large number of them visiting our clinics, and we are seeing an increase in that number. Compared to the female customers, the male customers, the growth rate we believe has a lot of potential because there's not that many that are entering the market.

Speaker #2: And as for the male customers, we are seeing a large number of them visiting our clinics. And we are seeing an increase in that number.

Speaker #2: So compared to the female customers, the male customers the growth rate we believe has many a lot of potential because there's not that many that are entering the market.

Speaker #1: Next question. Pricing strategy. Future pricing trend, what is your perspective? And would you continue offering a fixed learning? Would you continue to pursue the decreasing in price or the price will be stabilizing?

Yoshida: Next question: Pricing strategy. Future pricing trend, what is your perspective? Would you continue offering a fixed... I mean, would you continue to foresee the decreasing in price or the price will be stabilizing? What is your take?

Yuya Yoshida: Next question: Pricing strategy. Future pricing trend, what is your perspective? Would you continue offering a fixed... I mean, would you continue to foresee the decreasing in price or the price will be stabilizing? What is your take?

Mr. Yoshida: Next question, pricing strategy. Future pricing trend, what is your perspective? Would you continue offering a fixed? I mean, would you continue to foresee a decrease in the price or will the price be stabilizing? What is your take? As has been explained, we are taking multi-brand strategies. Shonan Beauty Clinic offers relatively reasonable price with a high turnover. When it comes to June Clinic or Neo Skin Clinic, those are positioned in the mid-range to the high-range prices. Customers' needs are focused on the high quality within the high price. The other group of customers prefer to have more accessible service. To meet those needs, we have a respective pricing strategy. Thank you.

Speaker #1: What is your take? That's been explained. We are taking multi-brand strategies. Shown on the dermatology offered relatively reasonable price with a high turnover. And when it comes to June clinic, our Neo Skin Clinic, those are positioned in the mid-range to the high-range prices.

Aikawa: As has been explained, we are taking multi-brand strategies. Shonan Beauty Dermatology offers relatively reasonable price with a high turnover. When it comes to JUN CLINIC or Neo Skin Clinic, those are positioned in the mid-range to in the high range prices. Customers' needs are focused on the high quality within the high price or, and the other group of new customers prefer to have more accessible service. Now to meet those needs, now we have a respective pricing strategies. Thank you.

Yoshiyuki Aikawa: As has been explained, we are taking multi-brand strategies. Shonan Beauty Dermatology offers relatively reasonable price with a high turnover. When it comes to JUN CLINIC or Neo Skin Clinic, those are positioned in the mid-range to in the high range prices. Customers' needs are focused on the high quality within the high price or, and the other group of new customers prefer to have more accessible service. Now to meet those needs, now we have a respective pricing strategies. Thank you.

Speaker #1: And customers need are the focus on the high quality within the high price. Or the other group of customers are the prefer to have more accessible the service.

Speaker #1: So to meet those needs, we have respective pricing strategies. Thank you.

Speaker #2: Let's move on to the next question. Regarding the growth of strategy is what I would like to know. The organic growth and in organic growth including M&A, can you explain about the what are your thoughts on this?

Yoshida: We'd like to move on to the next question. Regarding the growth of strategy is what I would like to know, the organic growth and inorganic growth, including M&A. Can you explain about that? What are your thoughts on this?

Yuya Yoshida: We'd like to move on to the next question. Regarding the growth of strategy is what I would like to know, the organic growth and inorganic growth, including M&A. Can you explain about that? What are your thoughts on this?

Yoshiyuki Ikawa: I would like to move on to the next question regarding the growth strategy. What I would like to know is, can you explain about the organic growth and inorganic growth, including M&A? What are your thoughts on this?

Speaker #1: Well, first of all, as I have mentioned before, within the orthopedics area, if June clinic AGA the net increase basis in the market areas where we have a potential to grow, we are going to proactively open up a new clinics.

Aikawa: Well, first of all, as I have mentioned before, within the orthopedics area is JUN CLINIC, AGA. The net increase basis in the market areas where we have a potential to grow, we are going to proactively open up new clinics. What was the other part of the question? Other question?

Yoshiyuki Aikawa: Well, first of all, as I have mentioned before, within the orthopedics area is JUN CLINIC, AGA. The net increase basis in the market areas where we have a potential to grow, we are going to proactively open up new clinics. What was the other part of the question? Other question?

Mr. Yoshida: First of all, as I have mentioned before, within the orthopedics area, June Clinic AGA's net increase basis. In the market areas where we have a potential to grow, we are going to proactively open up new clinics. What was the other part of the question? The M&A side. Regarding M&A, we are conducting M&A almost every year. Even now, as we speak, we are finding good M&A deals. I can say this is one of the strengths of our group, which is that the clinics we have acquired, almost 100%, the clinics that were making losses after the acquisition turned into black ink, and the ones that were already making profits are further increasing their profitability. Therefore, moving forward, we would like to actively conduct M&A. Thank you. For M&A, for example, in regions, for example, in the U.S.

Speaker #1: And what was the other part of the question? Other questions?

Speaker #2: The M&A side.

Yoshida: The M&A side.

Yuya Yoshida: The M&A side.

Speaker #1: Yes. And regarding M&A, we are conducting M&A almost every year. And even now, as we speak, we are finding good M&A deals. And I should I can say this is one of the strengths of our group.

Aikawa: Yes. Regarding M&A, we are conducting M&A almost every year. Even now as we speak, we are finding good M&A deals. I can say this is one of the strengths of our group, which is that the clinics that we have acquiredAlmost 100%. The clinics that were making losses after the acquisition turned into black ink. The ones that were already making profit are further increasing their profitability. Therefore, moving forward, we would like to actively conduct M&A. Thank you.

Yoshiyuki Aikawa: Yes. Regarding M&A, we are conducting M&A almost every year. Even now as we speak, we are finding good M&A deals. I can say this is one of the strengths of our group, which is that the clinics that we have acquired Almost 100%. The clinics that were making losses after the acquisition turned into black ink. The ones that were already making profit are further increasing their profitability. Therefore, moving forward, we would like to actively conduct M&A. Thank you.

Speaker #1: Which is that the clinics that we have acquired almost 100% the clinics that were making losses after the acquisition turned into black ink. And the ones that were already making profit are further increasing their profitability.

Speaker #1: Therefore, moving forward, we would like to actively conduct M&A. Thank you. For M&A, for example, in regions and for example, in the US or Asia or Japan, any geography or type of M&A, what are the targets?

Yoshida: As for M&A, for example, in regions, you know, for example, in the US or Asia or Japan, any geography or type of M&A, what are the targets?

Yuya Yoshida: As for M&A, for example, in regions, you know, for example, in the US or Asia or Japan, any geography or type of M&A, what are the targets?

Mr. Yoshida: or Asia or Japan, any geography or type of M&A, what are the targets? Currently, in North America, we are searching for a possible project. In Asia, Malaysia, Thailand, Vietnam, as well as Indonesia, there are some offers. We do not intend to capture every opportunity. So we carefully scrutinize and select the possible M&A. Of course, we carefully examine the price as well as the business opportunities and decide. That is the important point. So we scrutinize one by one. We are in the process. Thank you.

Speaker #1: Currently, in North America, we are searching for a possible project and Asia Malaysia, Thailand, and Vietnam. As well as Indonesia, there are some offers we don't intend to capture every opportunity.

Aikawa: Currently, in North America, we are researching for any possible project. Asia, Malaysia, Thailand, and Vietnam, as well as Indonesia, there are some offers. We don't intend to capture every opportunities. We carefully scrutinize and select the possible M&A. Of course, we carefully examine the price as well as business opportunities and decide. That's the important point. We scrutinize one by one. We are in the process. Thank you.

Yoshiyuki Aikawa: Currently, in North America, we are researching for any possible project. Asia, Malaysia, Thailand, and Vietnam, as well as Indonesia, there are some offers. We don't intend to capture every opportunities. We carefully scrutinize and select the possible M&A. Of course, we carefully examine the price as well as business opportunities and decide. That's the important point. We scrutinize one by one. We are in the process. Thank you.

Speaker #1: So we carefully scrutinize and select the possible M&A. And of course, we carefully examine the price as well as the business opportunities. And decide that's the important point.

Speaker #1: So we scrutinize one by one. We are in the process. Thank you. I'm moving forward.

Yoshida: Moving forward, for example, in Japan, how many clinics are you planning to open?

Yoshiyuki Ikawa: Moving forward, for example, in Japan, how many clinics are you planning to open?

Yuya Yoshida: Moving forward, for example, in Japan, how many clinics are you planning to open?

Speaker #2: For example, in Japan, how many clinics are you planning to open?

Speaker #1: Well, the pace of opening, we have about 260 clinics. So on the clinical basis, within the next 10 years, we would like to open up to 1,000 for sure.

Aikawa: About the pace of opening, we have about 260 clinics. On a clinical basis, within the next 10 years, we would like to open up to 1,000 for sure. Thank you.

Yoshiyuki Aikawa: About the pace of opening, we have about 260 clinics. On a clinical basis, within the next 10 years, we would like to open up to 1,000 for sure. Thank you.

Mr. Yoshida: The pace of opening, we have about 260 clinics. On a clinical basis, within the next 10 years, we would like to open up to 1,000 for sure. Thank you. Future profitability prospect, could you share with us? Yes. We have been deploying in the business, and there are some variations of the margin level depending on the business. To meet the time, we will make sure to secure sufficient margin. Management resources are properly allocated or transformed business formats, and those are important things. What we have been engaging in so far for the establishment of the new clinic, it is estimated to be high margin. There is still the market and the capacity available to be able to open 100 or 200 clinics so that overall margin will improve. That is our prospect. Thank you.

Speaker #1: Thank you. Future profitability. Prospect. Could you show that? Yes. We have been deploying in the business. And there are some variations of the margin level depending on the business.

Yoshida: Future profitability prospect, could you share with us?

Yuya Yoshida: Future profitability prospect, could you share with us?

Aikawa: Yes. We have been deploying in the business, there are some variations of the margin level depending on the business. To meet the time, we will make sure to secure sufficient margin. Management resources are properly allocated and transform the business performance. Those are important things. What we have been engaging, and so far, for an establishment of the new clinic, it's estimated to be high margin. There is still the market and the capacity available to be able to open 100 or 200 clinics so that overall margin will improve. That's our prospect. Thank you.

Yoshiyuki Aikawa: Yes. We have been deploying in the business, there are some variations of the margin level depending on the business. To meet the time, we will make sure to secure sufficient margin. Management resources are properly allocated and transform the business performance. Those are important things. What we have been engaging, and so far, for an establishment of the new clinic, it's estimated to be high margin. There is still the market and the capacity available to be able to open 100 or 200 clinics so that overall margin will improve. That's our prospect. Thank you.

Speaker #1: So to meet the time we will make sure to secure sufficient margin. And management resources are properly allocating or in a transformed business format.

Speaker #1: And those are important things. And what we have been engaging in so far for the establishment of the new clinic is estimated to be high margin.

Speaker #1: And there is still the market capacity available to be able to open 100 or 200 clinics. So that overall margin will improve. That's our prospect.

Speaker #1: Thank you. For example, the reduction of fee or one-time negative factors at this point is something that you can feel. At this point, do you think that all the bad factors and negative factors have been already taken care of?

Yoshida: For example, the reduction of fee or one time negative factors at this point is something that you can assume. At this point, do you think that all the bad factors or negative factors have been already taken care of?

Yuya Yoshida: For example, the reduction of fee or one time negative factors at this point is something that you can assume. At this point, do you think that all the bad factors or negative factors have been already taken care of?

Yoshiyuki Ikawa: For example, the reduction of fee or one-time negative factors, at this point, is something that you can assume? At this point, do you think that all the bad factors or negative factors have been already taken care of?

Speaker #1: Well, this time there was the concentration in a way of the negative factors. So the results were not so good. But because of that, because we have gone down once, moving forward, we believe that it is going to improve.

Aikawa: Well, this time, there was the concentration in a way of the negative factors. The results were not so good. Because of that, because we have gone down once, moving forward, we believe that it is going to improve and go upward again, and we are already feeling that. Therefore, this time as a one time, factor, it did go down, but this is something that we had to respond to. Thank you.

Yuya Yoshida: Well, this time, there was the concentration in a way of the negative factors. The results were not so good. Because of that, because we have gone down once, moving forward, we believe that it is going to improve and go upward again, and we are already feeling that. Therefore, this time as a one time, factor, it did go down, but this is something that we had to respond to. Thank you.

Mr. Yoshida: This time, there was the concentration in the way of the negative factors, so the results were not so good. But because of that, because we have gone down once, moving forward, we believe that it is going to improve and go upward again. We are already feeling that. Therefore, this time, as a one-time factor, it did go down, but this is something that we had to respond to. Thank you. Margin growth, it didn't grow much. SG&A slightly increased. In the second half, is it going to be normalized? Yes. We made a high level of investment for laser, for example, in the 100 units we bought. So those are the temporary expenditures we had in the first half. In the second half, no big investment is associated with the nature of our business. We made a bold decision to make a big investment in the first half.

Speaker #1: And go upward again. And we are already feeling that. Therefore, this time as a one-time factors factor, it did go down. But this is something that we had to respond to.

Speaker #1: Thank you. Managing growth. It didn't grow much. SG&A slightly increased. In the second half, is it going to be normalized? Yes. We made a high level of investment for laser, for example, 100 units we bought, so those are the temporary expenditures we had in the first half.

Yoshida: Margin growth, it didn't grow much. SG&A slightly increased. In the second half, is it going to be normalized?

Yuya Yoshida: Margin growth, it didn't grow much. SG&A slightly increased. In the second half, is it going to be normalized?

Aikawa: Yes. We made the high level of investment, you know, for laser, for example, the 100 units we bought. Those are under temporary expenditures we had in the first half, but in the second half, no big investment is associated with the nature of our business. We made a bold decision to make an big investment in the first half. I think that is going to be settled in the second half. Thank you. Yoshida, any other follow-up? If I may supplement. As the consolidated group, the consultation fees and the capital policy, legal fees were negatively impacted on the performance and EC response as well. Those are the factors contributing to push up the SG&A. The 7%, the JPY 12 million is an year-over-year, and JPY 15 million.

Yoshiyuki Aikawa: Yes. We made the high level of investment, you know, for laser, for example, the 100 units we bought. Those are under temporary expenditures we had in the first half, but in the second half, no big investment is associated with the nature of our business. We made a bold decision to make an big investment in the first half. I think that is going to be settled in the second half. Thank you. Yoshida, any other follow-up? If I may supplement. As the consolidated group, the consultation fees and the capital policy, legal fees were negatively impacted on the performance and EC response as well. Those are the factors contributing to push up the SG&A. The 7%, the JPY 12 million is an year-over-year, and JPY 15 million.

Speaker #1: But in the second half, not big. Investment is associated with many of our business. But we made a bold decision to make a big investment in the first half.

Speaker #1: But I think that is going to be settled in the second half. Thank you. Yoshida-san, any other follow-up? If I may supplement, as the consolidated group, the consultation fees and capital policy legal fees were partially impacted on the performance.

Mr. Yoshida: That is going to be settled in the second half. Thank you. Because she doesn't have any other follow-up. If I may supplement, as a consolidated group, the consultation fee and the capital policy, legal fees were personally impacted on the performance and easy response as well. So those are the factors contributing to push up the SG&A. The 7%, the $12 million is year on year, and $15 million. So the $3 million increase is not a much bigger impact on our overall financial performance. Thank you.

Speaker #1: And EC response as well. So those are the factors contributing to push up the SG&A. So the 7% the 12 million is year-on-year. And 15 million.

Speaker #1: So the 3 million increase is not much bigger impact on our overall financial performance. Thank you.

Aikawa: In a JPY 3 million increase is not a much bigger impact on our overall financial performance. Thank you.

Yoshiyuki Aikawa: In a JPY 3 million increase is not a much bigger impact on our overall financial performance. Thank you.

Speaker #2: Next is a question regarding the outlook. This fiscal year's ending or the outlook for next fiscal year. And the EPS several years from now, how is it going to grow?

Yoshida: Next is a question regarding the outlook. This fiscal year's ending or the outlook for next fiscal year and the EPS several years from now. How is it going to grow? Can you comment on the future outlook of these? Well, towards our target, we need to steadily expand the business, and specifically speaking of how much of specific EPS growth we can achieve, to say that now is difficult. The track record, meaning for the last 25 years since we have started the business, the number of customers is continuously increasing. Though the surrounding environment is changing, we are rebuilding the businesses that will match this changing environment. Moving forward, we will enter the phase of where the revenue is going to further increase. Mr. Yoshida, if you want to add? Yes.

Yuya Yoshida: Next is a question regarding the outlook. This fiscal year's ending or the outlook for next fiscal year and the EPS several years from now. How is it going to grow? Can you comment on the future outlook of these?

Yoshiyuki Ikawa: Next is a question regarding the outlook. This fiscal year's ending or the outlook for next fiscal year and the EPS several years from now, how is it going to grow? Can you comment on the future outlook of these?

Speaker #2: Can you comment on the future outlook of these?

Yoshiyuki Aikawa: Well, towards our target, we need to steadily expand the business, and specifically speaking of how much of specific EPS growth we can achieve, to say that now is difficult. The track record, meaning for the last 25 years since we have started the business, the number of customers is continuously increasing. Though the surrounding environment is changing, we are rebuilding the businesses that will match this changing environment. Moving forward, we will enter the phase of where the revenue is going to further increase. Mr. Yoshida, if you want to add? Yes.

Speaker #1: Well, towards our target, we need to steadily expand the business. Specifically speaking of how much specific EPS growth we can achieve, to say that now is difficult.

Mr. Yoshida: Towards our target, we need to steadily expand the business. Specifically speaking of how much of specific EPS growth we can achieve, to say that now is difficult. The track record, meaning for the last 25 years since we have started the business, the number of customers is continuously increasing. Though the surrounding environment is changing, we are rebuilding the businesses that will match this changing environment. Moving forward, we will enter the phase where the revenue is going to further increase. Mr. Yoshida, if you want to add, yes. As the listed consolidated group, at this point, we are not disclosing the EPS. On the other hand, from the investors, we are hearing voices that you would like to know such a guidance. We would like to continuously consider that.

Speaker #1: But the track record, meaning for the last 25 years since we started the business, is that the number of customers is continuously increasing. And though the surrounding environment is changing, we are building the businesses that will match this changing environment.

Speaker #1: So moving forward, we will enter the phase of where at the revenue is going to further increase. Mr. Yoshida, if you want to add, yes.

Speaker #1: As the listed consolidated group at this point, we are not disclosing the EPS. On the other hand, from the investors, we are hearing voices that you would like to know such guidance.

Yoshida: As the listed consolidated group, at this point, we are not disclosing the EPS. On the other hand, from the investors, we are hearing voices that you would like to know such a guidance. We would like to continuously consider that. I cannot disclose the specific numbers, but as has been explained today, the structuring has been conducted and the one-time expense has all been spent. Therefore, moving forward, we will be improving the business. At that some point, we would like to consider of disclosing the EPS as well. Thank you.

Yuya Yoshida: As the listed consolidated group, at this point, we are not disclosing the EPS. On the other hand, from the investors, we are hearing voices that you would like to know such a guidance. We would like to continuously consider that. I cannot disclose the specific numbers, but as has been explained today, the structuring has been conducted and the one-time expense has all been spent. Therefore, moving forward, we will be improving the business. At that some point, we would like to consider of disclosing the EPS as well. Thank you.

Speaker #1: So we would like to continuously consider that. I cannot disclose the specific numbers. But as I've been explained today, the structuring has been conducted and the one-time expense has all been spent.

Mr. Yoshida: I cannot disclose the specific numbers, but as I've been explained today, restructuring has been conducted, and the one-time expense has all been spent. Therefore, moving forward, we will be improving the business. At that some point, we would like to consider us disclosing the EPS as well. Thank you. Capital policy question. Looking at the current share price trend, the shareholder response or the share price matrix, probably we need to enhance more. What is your thought on that? You'll see the assumptions. Every time when we have the earnings call, we are putting emphasis on the capital policy, and particularly, we are working on to improve the liquidity. For that purpose, we have been considering metrics. Since May this year, we conducted a share buyback, and we saw some effect to some extent.

Speaker #1: Therefore, moving forward, we will be improving the business. At some point, we would like to consider disclosing the EPS as well.

Speaker #1: Thank you. Regarding our capital policy, looking at the current share price trend and considering the shareholder response, we may need to enhance our approach further.

Aikawa: Capital policy question. Looking at the current share price trend, the shareholder response or the share price measures are probably we need to enhance more. What is your thought on that? Yoshida-san, please. Every time when we have an earnings call now, we are putting emphasis on the capital policy, and particularly we are working on to improve the liquidity. For that purpose, we have been considering measures. Since May 2024, we conducted a share buyback, and we sell some effect to some extent. As that's been said, not just the share buyback, but the dividend payment is under consideration. Meanwhile, again, business restructuring has been completed. Now we are entering into the phase of the growth investment. As Mr.

Yoshiyuki Aikawa: Capital policy question. Looking at the current share price trend, the shareholder response or the share price measures are probably we need to enhance more. What is your thought on that? Yoshida-san, please.

Speaker #1: What is your thought on that? Yoshida-san, please. Every time when we have an earnings call, we have we are putting emphasis on the capital policy and particularly we are working on to improve the liquidity.

Yuya Yoshida: Every time when we have an earnings call now, we are putting emphasis on the capital policy, and particularly we are working on to improve the liquidity. For that purpose, we have been considering measures. Since May 2024, we conducted a share buyback, and we sell some effect to some extent. As that's been said, not just the share buyback, but the dividend payment is under consideration. Meanwhile, again, business restructuring has been completed. Now we are entering into the phase of the growth investment. As Mr.

Speaker #1: So, for that purpose, we have been considering metrics. Since May this year, we conducted a share buyback and we sold some effect to some extent.

Speaker #1: And as has been said, not just the share buyback but the dividend payment is under consideration. Meanwhile, again, business restructuring has been completed. So now we are entering into the phase of the growth investment.

Mr. Yoshida: As has been said, not just the share buyback, but the dividend payment is under consideration. Meanwhile, business restructuring has been completed. Now we are entering into the phase of the growth investment. As Mr. Yoshiyuki Ikawa said, there are attractive M&A and opportunities available in Japan and overseas. Shareholder return and growth investment, those two, we will try to strike the good balance. Thank you. If I may add, this is Yoshiyuki Ikawa speaking. For the purpose of expanding our business, M&A is one of our strengths. There, we put focus on it to make an proactive investment to focus on the fundamental business growth. Ultimately, this will lead to the shareholder return as well.

Speaker #1: And as Mr. Aikawa said, there are attractive M&A and opportunities available in Japan and overseas. So shareholder return and growth investment for those students we will not try to strike the good balance.

Aikawa: Aikawa said, there are attractive M&A and opportunities available in Japan and overseas. Shareholder return and growth investment for those students, we will now try to strike the good balance. Thank you.

Yuya Yoshida: Aikawa said, there are attractive M&A and opportunities available in Japan and overseas. Shareholder return and growth investment for those students, we will now try to strike the good balance. Thank you.

Speaker #1: Thank you. Or if I may add, this is Aikawa speaking. We for the purpose of expanding our business, M&A is one of our strengths.

Yoshida: Oh, if I may add. This is Aikawa speaking. For the purpose of expanding our business, M&A is one of our strengths. There we put focus on it to make a proactive investment to focus on the fundamental business growth. Ultimately, this will lead now to shareholder return as well.

Yoshiyuki Aikawa: Oh, if I may add. This is Aikawa speaking. For the purpose of expanding our business, M&A is one of our strengths. There we put focus on it to make a proactive investment to focus on the fundamental business growth. Ultimately, this will lead now to shareholder return as well.

Speaker #1: There, we put focus on it. To make a proactive investment to focus on the fundamental business growth. Ultimately, this will lead to the shareholder return as well.

Speaker #2: Thank you very much. Next, question is that moving forward, the shareholding of the CEO, do you have any thoughts on selling them? Moving forward, well, as our challenge from the most of the institutional investors we are told that the liquidity of our shares is low.

Aikawa: Thank you very much. Next question is that moving forward, the shareholding of the CEO, do you have any thoughts on selling them moving forward?

Yoshiyuki Aikawa: Thank you very much. Next question is that moving forward, the shareholding of the CEO, do you have any thoughts on selling them moving forward?

Yoshiyuki Ikawa: Thank you very much. Next question is that moving forward, the shareholding of the CEO, do you have any thoughts on selling them moving forward?

Yoshida: Well, as our challenge from the most of the institutional investors, we are told that the liquidity of our shares is low. Issuing our new shares or selling the shares that I hold, through that the gains and proceeds from that, we would like in order for that to be used for the next investment, I think such a thing will be necessary to do. Thank you very much.

Yuya Yoshida: Well, as our challenge from the most of the institutional investors, we are told that the liquidity of our shares is low. Issuing our new shares or selling the shares that I hold, through that the gains and proceeds from that, we would like in order for that to be used for the next investment, I think such a thing will be necessary to do. Thank you very much.

Mr. Yoshida: As our challenge from most of the institutional investors, we are told that the liquidity of our shares is low. Issuing new shares or selling the shares that I hold, through that, the gains and proceeds from that, we would like in order for that to be used for the next investment. I think such a thing will be necessary to do. Thank you very much. I am conscious of time. Mr. Ikawa, could you give the message now to the audience? Thank you very much indeed for kindly participating in this earnings call. We are still young. The sense is that establishment is in a quarter century. But we are relatively new. Our strength is the spirit of never give up. What we have been envisioning has been thoroughly executed, and that is our strength. I thank you in advance for your continued understanding and support.

Speaker #2: So issuing a new shares or selling the shares that I hold through that the gains and proceeds from that, we would like in order for that to be used for the next investment, I think such a thing will be necessary to do.

Speaker #2: Thank you very much.

Speaker #1: I'm conscious of time. To Mr. Aikawa, could you give the message now to the audience? Thank you very much indeed for kindly participating in this earnings call.

Aikawa: I'm conscious of time. Mr. Aikawa, could you give the message now to the audience? Thank you very much indeed now for kindly participating in this earnings call. We are still young. The sensei's establishment is in a quarter century, but we are relatively new. Our strength is the spirit of never give up. What we have been envisioning have been thoroughly executed, and that is our strength. I thank you in advance now for your continued understanding and support. Thank you very much. Thank you very much. With this, we would like to conclude this earnings call. Thank you all very much now for your kind attendance.

Yuya Yoshida: I'm conscious of time. Mr. Aikawa, could you give the message now to the audience?

Yoshiyuki Aikawa: Thank you very much indeed now for kindly participating in this earnings call. We are still young. The sensei's establishment is in a quarter century, but we are relatively new. Our strength is the spirit of never give up. What we have been envisioning have been thoroughly executed, and that is our strength. I thank you in advance now for your continued understanding and support. Thank you very much. Thank you very much. With this, we would like to conclude this earnings call. Thank you all very much now for your kind attendance.

Speaker #1: We are the Syrian since it's establishment, it's on a quarter century. But we are relatively new. Our strength is the spirit of never give up.

Speaker #1: So what we have been envisioning has been thoroughly executed and that is our strength. So I thank you in advance for your continued understanding and support.

Mr. Yoshida: Thank you very much. Thank you very much. With this, we would like to conclude this earnings call. Thank you all very much for your kind attendance.