SUNNY SIDE UP GROUP Inc.

Business Details

Supports the building of favorable relationships with stakeholders by widely communicating the value of client companies' and organizations' activities, products, and services. Provides a diverse range of solutions including press release creation and distribution, press conferences, media relations, PR events, and SNS strategy planning. Sales promotion measures and product planning utilizing IP content (such as "Happy Kuji") have also grown into a core service alongside PR. The segment consists of four subsidiaries: SUNNY SIDE UP Inc., Kumnam Entertainment Co., Ltd., Airside Inc., and Steady Study Inc.

Recent Overview

"Happy Kuji" expanded to 2.4 times the scale of the same period of the previous year, and PR orders also increased across multiple industries, resulting in record-high cumulative Q3 sales and profit.

In the nine months ended March 2026 (cumulative Q3 of FY2026, ending March 2026, covering July 2025 to March 2026), the segment achieved segment sales of ¥16,622 million (up 45.3% year on year) and segment profit of ¥3,263 million (up 59.2% year on year), both setting new cumulative third-quarter records. In product planning, "Happy Kuji" saw orders expand in both volume and scale, with new IP content-utilizing projects achieving the largest sales scale ever. In PR, order unit prices rose due to the realization of additional proposals for SNS measures added to retainer contracts and the accumulation of orders for comprehensive marketing strategy support, leading to improved profitability. The increase in sales was particularly pronounced in the third quarter.

Key Products

Growth Drivers

• Expansion of orders for sales promotion measures and product planning utilizing IP content, such as "Happy Kuji" (2.4 times year on year in the nine months ended March 2026)
• Increase in per-client unit prices due to PR upselling and expansion into comprehensive marketing strategy support
• Expansion of orders across multiple industries, including cosmetics/fashion, commercial facilities/hotels, entertainment, sports, healthcare, and tech
• Realization of additional proposals for SNS measures based on retainer contracts
• Plans to enhance added value and rebuild competitive advantage through integrated provision with the cloud-based PR effectiveness measurement tool "PR Analyzer" following the consolidation of Billcom Inc.

Risks

• Order volatility risk in sales promotion measures and product planning (Happy Kuji, etc.) (fluctuations in project scale and number directly affect sales)
• Foreign exchange risk associated with overseas (e.g., China) outsourcing of merchandise production (a sharp depreciation of the yen would raise costs)
• Risk of profitability pressure from increased fixed costs such as personnel expenses and office rent (continued execution of the ¥1.5 billion total strategic investment framework)
• Integration risk related to the acquisition of Billcom Inc. (goodwill of ¥1,185 million provisionally recorded; purchase price allocation not yet finalized)
• Risk of delayed response to changes in communication methods driven by advances in technology, including AI
• Uncertainty related to the delisting and business integration process associated with the tender offer (TOB) by Akatsuki Inc.