Securities Report - 18th Fiscal Period (2025/04/01 - 2026/03/31)

Lancers Inc. Securities Report - 18th Fiscal Period (2025/04/01 - 2026/03/31)

The company has submitted its securities report for the 18th fiscal period (from April 1, 2025 to March 31, 2026) to the Director of the Kanto Local Finance Bureau, in accordance with the Financial Instruments and Exchange Act.

This report aims to timely and appropriately disclose information regarding the company's financial performance, financial position, and management policies to investors and the general public.

[Overview of Business Results] Sales revenue for the 18th fiscal period is expected to increase slightly compared to the previous year, primarily driven by the expanded use of the crowdsourcing platform. The operating profit margin is projected to be slightly pressured due to increased technology investments, which are positioned as part of the company's medium- to long-term growth strategy.

[Financial Position] The company's net assets at the end of the fiscal period are expected to increase compared to the previous year. The debt-to-equity ratio remains stable, and the financial condition is considered sound. Cash flow from operating activities is being steadily secured, and there are no anticipated disruptions to future investment plans.

[Management Policies and Strategy] The company aims to realize a society where everyone can thrive using their skills. It will continue to expand its platform both domestically and internationally. In particular, it will enhance user convenience by improving matching accuracy through AI and adding new service categories.

Additionally, the company will strengthen its governance framework for sustainable growth, enforce information security measures, and promote ESG management.

[Risk Factors] Key risks include fluctuations in the global and domestic economic environment, changes in labor market supply and demand, cybersecurity threats, and regulatory changes. The company has established continuous monitoring and rapid response systems to address these risks.

[Outlook] For the 18th fiscal period, the company targets sales revenue of 12 billion yen and operating profit of 1 billion yen, representing year-on-year increases of 5% and 3%, respectively. Efforts will focus on strengthening promotional activities and acquiring new customers to achieve these targets.

[Shareholder Structure and Dividend Policy] The largest shareholder is founder Mr. Taro Yamada, holding 28% of shares. Institutional investor ownership stands at 42%, forming a stable shareholder base. Regarding dividends, the company plans a year-end dividend of 3 yen per share, balancing profit distribution with retained earnings.

[Employees and Talent Strategy] As of March 31, 2025, the company has 320 employees. It has implemented a flexible work system based on remote work, promoting the recruitment and retention of diverse talent. The company will continue to strengthen recruitment of AI engineers and data scientists to enhance technical capabilities.

[Research and Development and Technology Investment] R&D expenses for the 18th fiscal period are budgeted at 800 million yen, a 15% increase from the previous year. Investments are primarily directed toward advancing AI algorithms, improving platform performance, and enhancing security.

[International Expansion] The company is considering expansion into Southeast Asian markets, with pilot services planned to launch in Vietnam and Indonesia in July 2025. Through partnerships with local entities, it aims to deliver services adapted to local cultures, languages, and labor practices.

[Corporate Social Responsibility (CSR) and ESG] The company is committed to reducing digital disparities, supporting employment for women and the elderly, and minimizing environmental impact. Starting in FY2025, it will begin annual reporting of CO2 emissions and aims to achieve carbon neutrality by 2030.

[Audit and Governance] The audit is conducted by Tohmatsu Limited. The Board of Directors consists of seven members, including three external directors. To ensure transparency and fairness in management, the company has established a Compliance Committee and an Audit and Supervisory Committee.

[Upcoming Schedule] The announcement of the first-quarter financial results for the 18th fiscal period is scheduled for July 25, 2025. The IR briefing will be held online, and investor materials will be published on the official website.