KeyHolder,Inc.

Business Details

Comprised of two divisions: management of talents, idols, actors, and athletes (Live Entertainment division) and planning, development, and operation of the official romance simulation game apps of the Sakamichi Group (Digital Content division). AOI, SKE (formerly Zest), Zest (formerly allfuz), North River, bijoux and others handle management of affiliated artists, while 10ANTZ Inc. operates the game app business. In Q1 FY2026 (ending December 2026), external revenue was ¥3,321 million, accounting for approximately 39.9% of consolidated total, making it the core segment.

Recent Overview

Film and live activities remained active, but both Q1 revenue and profit declined slightly year-on-year

In the first quarter of FY2026 (ending December 2026), the Comprehensive Entertainment Business posted revenue of ¥3,321 million (down 5.1% year-on-year) and segment profit of ¥461 million (down 2.7% year-on-year). The company began business alliances with Toshiaki Karasawa and Tomoko Yamaguchi, and is advancing next-generation IP discovery through auditions such as the SKE48 14th generation audition and the bijoux new talent discovery audition 2026. On April 1, the company implemented an organizational restructuring (absorption-type split and absorption-type merger) among four consolidated subsidiaries to improve management efficiency, though there was no impact on Q1 results. Nogizaka46's "Nogikoi" marked its 10th anniversary since release.

Key Products

Growth Drivers

• Increased audience mobilization through large-scale events such as Nogizaka46's 3-day Tokyo Dome performances (14th YEAR BIRTHDAY LIVE) and the Midsummer National Tour 2026 (18 performances across 8 cities)
• Revenue contribution from new talent content through the business alliance with Toshiaki Karasawa and Tomoko Yamaguchi's "TEAM KARASAWA"
• Domestic and international expansion through Novelbright HALL & ARENA TOUR 2026 (30 performances across 22 cities) and the ASIA TOUR 2026
• Strengthening of SKE48 theater performances (Team S's new show "Zutto Kimi wo Sagashiteiru") and the SUMMER Tour 2026 (12 performances across 5 cities)
• Improved profitability at 10ANTZ Inc.'s game app business through strengthened operations and selection and concentration
• Cultivation of new revenue sources through the expansion of A Company's fan bus tour business
• Discovery and development of next-generation IP content through various auditions (SKE48 14th generation, bijoux new talent discovery)

Risks

• Risk of declining merchandise and live event demand due to deterioration in general consumer trends and consumer sentiment
• Risk of content value impairment due to activity suspensions or scandals involving affiliated artists
• Risk of intensifying competition and user attrition in the game app business (dependence on licensing agreements with the Sakamichi Group)
• Risk of margin deterioration due to rising production costs and labor costs amid inflation
• Risk of impairment of goodwill and intangible assets (potential recognition of impairment losses if the business environment deteriorates)
• Risk of integration costs and operational disruption associated with the organizational restructuring (absorption-type split and merger) effective April 1

Business Details

Centered on UNITED PRODUCTIONS Inc., TOKYO ROCK STUDIO Inc., and macaroni Inc., this segment develops the video production business, including production of popular variety shows, music videos, and dramas, the post-production business for video editing, and the production staff dispatch business. It also includes the equipment rental and digitizing business operated by TechCarry Inc. In the film field, the segment has expanded into distribution business through "KeyHolder Pictures" and investment in production committees, while also advancing progress on overseas projects.

Recent Overview

Revenue up 31.3% and segment profit up 176.9%, marking a major improvement, with strong performance in the distribution business

In the first quarter (January to March) of FY2026 (ending December 2026), the Video Production Business achieved significant growth in both revenue and profit, with revenue of ¥1,851 million (up 31.3% year-on-year) and segment profit of ¥78 million (up 176.9% year-on-year). The first distributed film, "Koyaban: Yatsugatake ni Ikiru - Theatrical Version," recorded box office revenue significantly exceeding initial targets. Progress on overseas projects also continued, with the company securing a web commercial production order from a Chinese-capital company, demonstrating group synergies as well.

Key Products

Growth Drivers

• Expansion of the distribution business through KeyHolder Pictures (the first release exceeded plan, and multiple new distribution projects have been secured)
• New project acquisition driven by the stable production base of 13 regular programs and the company's track record evaluated highly across broadcasting networks
• Steady continuation of operations in the production staff dispatch business
• Progress on overseas projects (advancing the content internationalization strategy, including receiving web commercial orders from Chinese-capital companies)
• Accumulation of new content, including timelesz's first terrestrial broadcast flagship program "Timeless Man" becoming a regular show

Risks

• Risk of decreased existing TV program production projects due to major program lineup changes at broadcasting stations
• Continued profit pressure from upfront costs in new businesses such as overseas projects and the distribution business
• Risk of underperformance against plan in the equipment rental and digitizing business
• Risk of rising production costs and labor costs in the video production industry
• Risk of fluctuation in box office revenue in the distribution business (uncertainty in number of screening theaters and audience mobilization)

Business Details

Comprised of two axes: the digital advertising division operated by FA Project Inc. (FAP), and the advertising agency division operated by Zest Inc. (formerly allfuz Inc., trade name changed effective April 1, 2026). The digital advertising division handles video ad production and affiliate advertising for SNS platforms such as YouTube, TikTok, and Instagram, with major clients including men's hair removal salons, fitness gyms, golf schools, slimming salons, and beauty clinics. The advertising agency division has secured quality projects primarily with Seven-Eleven Japan (Seven Net Shopping). The segment also develops casting and event planning leveraging synergies with in-house group artists.

Recent Overview

Both revenue and profit deteriorated year-on-year, with losses widening

In the first quarter of FY2026 (ending December 2026), the Advertising Agency Business posted revenue of ¥1,239 million (down 3.0% year-on-year) and a segment loss of ¥75 million (compared to a segment loss of ¥28 million in the same period of the prior year), with losses widening. In the digital advertising division, the impact of clients reducing their advertising spending volume continued, and margins also deteriorated in the existing advertising agency division. On the other hand, the digital advertising division completed strengthening its personnel structure, and the current number of clients has increased to 12, with progress being made in securing projects in new fields such as store-operated beauty companies and school businesses. Additionally, following the organizational restructuring effective April 1, the company plans to reorganize unprofitable projects to improve profitability.

Key Products

Growth Drivers

• Accelerated new client acquisition following completion of personnel structure strengthening in the digital advertising division (current number of clients increased to 12)
• Expansion of sales channels into new fields such as store-operated beauty companies and school businesses
• Continued acquisition of quality projects centered on Seven-Eleven Japan (Seven Net Shopping)
• Creation of casting and event projects through collaboration with in-house group artists and talents
• Aggressive sales strategy combining the strengths of the digital advertising division and the group's talent agencies
• Reorganization of unprofitable projects and profitability improvement through the organizational restructuring effective April 1

Risks

• Risk of continued reduction in clients' advertising spending volume (an ongoing impact in the current period as well)
• Risk of continued margin deterioration in the existing advertising agency division
• Risk of increased administrative costs from structural reinforcement pressuring profitability
• Risk of advertisers cutting advertising budgets due to inflation and deteriorating consumer sentiment
• Risk of temporary revenue decline associated with organizational restructuring (reorganization of unprofitable projects)

Business Details

The logistics segment operated by Topos Enterprise Co., Ltd. (TPO). The company operates a transportation business delivering nationwide from three main hubs in Chiba, Saitama, and Osaka, and a warehousing business with storage capacity for over 150,000 units, centered on amusement equipment for pachinko halls. The company provides three key values—convenience, quality control, and safety—through its proprietary management systems including "24-hour, 365-day surveillance," "GPS installation," and "dedicated pallet management." In addition to stable operations with existing clients, the company is strengthening initiatives with new clients.

Recent Overview

Revenue up 4.9% year-on-year, but segment profit down 33.8% due to the drop-off of a prior-year one-time gain

In the first quarter of FY2026 (ending December 2026), the Logistics Business secured revenue growth, with revenue of ¥1,349 million (up 4.9% year-on-year). On the other hand, segment profit declined significantly to ¥117 million (down 33.8% year-on-year). This was due to the drop-off of a one-time factor, namely the recognition of a ¥75 million reversal gain on debt guarantees in the same period of the prior year, and the company explains that both revenue and profit are progressing steadily relative to plan.

Key Products

Growth Drivers

• Maintenance of the revenue base through continued stable operations with existing clients
• Expansion of the customer base through strengthened initiatives with new clients
• Business expansion leveraging the nationwide delivery network originating from three hubs in Chiba, Saitama, and Osaka
• Differentiation and client retention through the proprietary management system for amusement equipment (24-hour surveillance, GPS, dedicated pallets)

Risks

• Structural comparative burden from the drop-off of the ¥75 million reversal gain on debt guarantees (a one-time gain) recognized in the same quarter of the prior year, making the year-on-year profit comparison unfavorable
• Risk of fluctuating demand in the primary client segment as the number of amusement equipment units stored for pachinko halls trends downward
• Risk of rising transportation costs due to wage increases and rising fuel costs amid inflation
• Risk of interest expense on lease liabilities under IFRS 16 pushing up overall group financial costs

Business Details

This segment includes the Company's (KeyHolder's) real estate leasing business, the wholesale business for amusement prizes and food products operated by Topos Enterprise Co., Ltd. (TPO), a lodging facility (one artificial hot spring facility), convenience stores (two MINISTOP locations), and the food and beverage business of the steak house "Empire Steak House Roppongi" in Roppongi, Tokyo, operated by Red List Inc. This is a category consolidating businesses not included in the reportable segments, with the real estate business and wholesale business primarily serving as the core of revenue.

Recent Overview

Revenue up 9.0% year-on-year, segment loss turned into profit

In the first quarter of FY2026 (ending December 2026), Other Businesses posted revenue of ¥566 million (up 9.0% year-on-year) and segment profit of ¥20 million (compared to a segment loss of ¥3 million in the same period of the prior year), turning from a loss to a profit. Each business, including the food and beverage business (Empire Steak House Roppongi), contributed to the improvement in both revenue and profit. The company continues to work on stable management of the real estate leasing business and new menu development and enhanced SNS-based promotions in the food and beverage business.

Key Products

Growth Drivers

• Maintenance and expansion of revenue scale through the continued contribution of Red List Inc. (food and beverage business)
• Continued rental income through stable management of investment real estate
• Strengthening customer attraction in the food and beverage business through SNS-based promotions leveraging group synergies
• Continued stable transactions with existing clients in the wholesale business operated by TPO

Risks

• Fluctuation in prices of ingredient procurement (risk of rising costs in the food and beverage business)
• Impact on the lodging, food and beverage, and retail businesses from a downturn in personal consumption amid inflation
• Sensitivity to general consumer trends in consumer-facing businesses such as convenience stores and lodging facilities
• The need for continued efforts to stabilize profitability in the food and beverage business (Red List)