SCINEX CORPORATION

Since the launch of the first issue of "Wagamachi Jiten" in 2007, the company has achieved co-publication with a cumulative total of 1,155 municipalities over approximately 20 years. The cumulative number of editions published has reached 3,007, and the cumulative number of copies distributed has reached approximately 145 million. With around 40 sales offices nationwide, the company has built long-term relationships of trust with municipalities, giving it a customer base that competitors would find difficult to replicate in a short period.

The digital signage service "Wagamachi NAVI" has been installed at a cumulative total of 310 locations since the business began. The number of municipalities that have signed agreements for the quasi-official city promotion site "Wagamachi Portal" has expanded to a cumulative 32, with 24 currently published. The AI chatbot has been adopted by a cumulative 124 institutions, as the company builds out its own service lineup to serve as a receptacle for the shift from print media to digital.

The DM solutions business of consolidated subsidiary L-Net Co., Ltd. has expanded steadily, and net sales to external customers in the logistics business increased 14.4% year on year to ¥7,067 million. This forms the largest segment within the group's total net sales of ¥17,090 million, functioning as a sales foundation that offsets the contraction of the information media business.

The company is pursuing the parallel strategies of continuing revised editions with existing municipal partners and developing new municipalities. In FY2026 (ending March 2026), it jointly published with 202 cities, wards, towns and villages, achieving a cumulative total of 1,155 municipalities and 3,007 editions. To offset the impact of the shrinking 50-on (Japanese syllabary order) telephone directory, the company is accelerating its shift to digital media (Wagamachi NAVI and Wagamachi Portal), but digital media sales remain challenged at ¥700 million, down 20.5% year on year.

In FY2027 (ending March 2027), the company will review certain unprofitable transactions and intentionally scale back revenue (forecast of ¥15,300 million, down 10.5% year on year) in order to improve profit margins. The impact on profit is expected to be minor, and the company has clearly signaled a policy shift prioritizing profit quality over revenue scale. Improvement in segment profit margin will be key to the earnings recovery in FY2027 (ending March 2027).

The AI-based automated response service for residents, 'AI Chatbot,' has achieved cumulative contracts with 124 institutions. In FY2026 (ending March 2026), a new contract was signed with Mie Prefecture. The DX Support business segment as a whole turned profitable with segment profit of ¥39 million (versus a loss of ¥21 million in the previous period), and the business is increasingly on a growth trajectory capturing municipal DX demand (an external factor including initiatives such as the Digital Garden City Nation vision).

The quasi-official city promotion special website 'Wagamachi Portal' entered into new agreements with Imabari City in Ehime Prefecture and Oiso Town in Kanagawa Prefecture in FY2026 (ending March 2026), bringing the cumulative total to 32 municipalities with signed agreements and 24 municipalities with published sites. The company aims to deepen relationships with municipalities and establish new advertising revenue sources as a public-private regional information platform.

The company continues its policy of considering and executing alliances and M&A with companies expected to generate synergies with the group's business, aiming to expand its business domains and enhance corporate value. In FY2025 (ending March 2025), the company acquired shares in a subsidiary (¥601 million), but there was no new M&A activity in FY2026 (ending March 2026). Goodwill balance stood at ¥498 million (down ¥113 million year on year) as amortization progresses.