Alpha-Win Company Research Report
Brangista Inc.
(6176 TSE Growth)● SummaryIssued: 7/1/2024

Alpha-Win Capital Research Department
https://www.awincap.com/

Business Description
・Brangista Group (hereinafter, the “Company”) supports companies and organizations through its uniqueservices that connect communities such as companies, organizations, and local regions with people, goods,
and information, thereby contributing to the development of local communities.
・ Until FY2022 (note that the Company’s fiscal years are September-ending, i.e., FY2022 ended in
September 2022), the Company only had one business segment, the electronic media business forcorporate promotions support. However, since FY2023, its business is divided into the three segments of
Promotional Support, Media, and Solutions.

Trends in Financial Performance・Its business performance has been growing thanks to ACCEL JAPAN, a service which was started in
October 2022. In FY2023, net sales grew by 35.7% year-on-year (YoY) to 4,558 million yen and operating
profit increased by 2.4x YoY to 604 million yen.
・For FY2024, the Company plans to achieve a 5.3% YoY increase in net sales to 4,800 million yen and a
32.4% YoY increase in operating profit to 800 million yen. In the first half of FY2024, net sales increasedby 2.5% YoY to 2,353 million yen and operating profit increased by 64.5% YoY to 477 million yen, bothhitting record highs for the first half, driven by the Promotional Support Business.

Competitive Edge
・The Company’s strengths lie in its established position as a publisher specializing in digital magazines, aswell as in its excellence in celebrity casting, know-how in creative works, and in-house sales force which
it has been building through its digital magazine business since 2007.
・Another characteristic and strength is that the Company supports companies and local governments tocontribute to regional and local revitalization, which has become an important issue for Japan.

Business Strategy
・The Company aims to achieve sustainable growth in sales and profits by implementing measures to expand
the Promotional Support Business, Media Business, and Solutions Business.
・The medium-term management plan disclosed in 2022 was achieved one year ahead of schedule. In the
newly formulated medium-term plan, the Company aims to achieve net sales of 6,000 million yen andoperating profit of 1,300 million yen in FY2026, the final year of the plan.

Financial Forecasts
・ACCEL JAPAN, performing well and now in its second year of service, is expected to be the driving force
behind future business performance growth. Alpha-Win Research Department looks forward to following
the Company’s future financial performance, particularly with regard to the result of its current focus on
enhancing support for its existing customers and expanding its push-marketing activities throughout Japan.
・Our financial forecast for FY2024 is net sales of 4,860 million yen (+6.6% YoY), which is slightly greaterthan the company forecast, and operating profit of 900 million yen (+49.0% YoY), which is also greaterthan the company forecast. We also expect that the Company will continue to achieve businessperformance growth in FY2025 and beyond, with ACCEL JAPAN as the growth driver.
1/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this report must
make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to Alpha-Win andno part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)【 6176 Brangista

Issued: 7/1/2024

Sector: Services 】 Figure A
Sales

YoY

Operating Profit

YoY

Ordinary Profit

YoY

Net Profit

YoY

EPS

BPS

Dividend(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

（%）

(yen)

(yen)

(yen)

2022

3,360

-

255

-

258

-

178

-

12.83

116.10

0.0

2023

4,558

35.7

604

136.0

601

133.1

579

224.5

41.63

157.74

0.0

FY

2024

CE

4,800

5.3

800

32.4

800

32.9

520

-10.3

37.36

-

0.0

2024

E

4,860

6.6

900

49.0

900

49.8

585

1.0

40.14

190.73

0.0

2025

E

5,390

10.9

1,092

21.3

1,092

21.3

722

23.4

49.54

240.27

0.0

2026

E

6,054

12.3

1,342

22.9

1,342

22.9

888

23.0

60.92

301.19

0.0

2023

Q1

1,113

39.7

83

95.0

83

91.6

58

109.3

4.17

-

-

2023

Q2

2,295

40.4

290

95.2

290

95.5

199

93.9

14.31

-

0.0

2024

Q1

1,158

4.1

200

141.7

200

140.8

132

128.4

9.53

-

-

2024

Q2

2,353

2.5

477

64.5

474

63.4

305

53.2

22.08

-

0.0

(Note) CE: the Company's forecast/estimate. E: Alpha-Win's forecast/estimate. Q1: first quarter. Q2: first half.

【 Stock Price and Valuation Indicators: 6176 Brangista 】 Figure B
Item

6/28/2024

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

Stock Price (yen)639

Last FY (actual)

15.3

4.1

0.0%

0.0%

Shares Outstanding (thou.)

14,575This FY (forecast)

15.9

3.4

0.0%

0.0%

Market Capitalization (million yen)

9,314

Next FY (forecast)

12.9

2.7

0.0%

0.0%

Dilutive Shares (thou.)-

FY After the Next (forecast)

10.5

2.1

0.0%

0.0%

Last FY's Dividend on Equity Ratio

0.0%

56.5%

Last FY's ROE

30.4%

Equity Ratio at the End of Last FY(Note) Forecasts were made by Alpha-Win Research Dept.

【Stock Chart (end-of-week prices) : 6176 Brangista】
(Yen)

1,100

Figure C

Stock price (left axis)
1.4

Price relative to TOPIX (right axis)

1.3

1,000

1.2
900

1.1

800

1.0
0.9

700

0.8
600

0.7

Period1 monthReturn8.1%

vs. TOPIX
6.8%

3 months

-0.8%

-2.3%

6 months-10.6%-29.4%

12 months-26.0%-47.0%(Note) Based on end-of-month prices, i.e.,
the latest 1-month-period is the comparison
between May 31 and June 28.

M

M

/Y
Y)

0.6

06
/2
3
07
/2
3
09
/2
3
10
/2
3
11
/2
3
12
/2
3
01
/2
4
02
/2
4
04
/2
4
05
/2
4
06
/2
( 4

500

【Performance】(Note) From the fifth week of June 2023 to the fifth week of June 2024

2/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

Contents
1．Company Overview --------------------------------------------------------------------------------------------------P4
Three Businesses: Promotional Support, Media, and Solutions ----------------------------------------------------P4
Corporate Philosophy --------------------------------------------------------------------------------------------------- P4
2．Business Description and Business Model ---------------------------------------------------------------------- P6
High Profit Margin in the Promotional Support Business ----------------------------------------------------------P6
Promotional Support Business ----------------------------------------------------------------------------------------- P6
Media Business -----------------------------------------------------------------------------------------------------------P9
Solutions Business ----------------------------------------------------------------------------------------------------- P11
3．Shareholder Composition -----------------------------------------------------------------------------------------P13
Largest Shareholder: The Parent Company -------------------------------------------------------------------------P13
4．ESG --------------------------------------------------------------------------------------------------------------------P14
SDGs Initiatives -------------------------------------------------------------------------------------------------------- P14
Social Responsibility (Society) ---------------------------------------------------------------------------------------P14
Corporate Governance (Governance) --------------------------------------------------------------------------------P14
5．History of Growth --------------------------------------------------------------------------------------------------P16
Company History -------------------------------------------------------------------------------------------------------P16
Past Transition in Financial Performance ----------------------------------------------------------------------------P17
Large Sales and Profit Growth in FY2023 --------------------------------------------------------------------------P18
6．Business Environment ---------------------------------------------------------------------------------------------P20
Continued Expansion of Both the Internet Advertising and E-Commerce Markets ---------------------------P20
Competition------------------------------------------------------------------------------------------------------------- P20
7．Growth Strategy ----------------------------------------------------------------------------------------------------P22
Brangista’s Growth Strategy ------------------------------------------------------------------------------------------P22
Medium-Term Management Plan ------------------------------------------------------------------------------------P23
8．Financial Results for the Most Recent Fiscal Year and Outlook ------------------------------------------P24
Financial Results for the First Half of FY2024 ---------------------------------------------------------------------P24
Brangista’s Financial Forecast for FY2024 -------------------------------------------------------------------------P25
Alpha-Win Research Department’s Financial Forecast -----------------------------------------------------------P26
Alpha-Win Research Department’s Forecast of Medium-Term Financial Performance ----------------------P28
9．Analyst’s View -------------------------------------------------------------------------------------------------------P29
Brangista’s Strengths and Challenges --------------------------------------------------------------------------------P29
Shareholder Return -----------------------------------------------------------------------------------------------------P29
Stock Price -------------------------------------------------------------------------------------------------------------- P30
Notes: 1) Upon translating to English, when page numbers differed from the original Japanese version, they were adjusted to theEnglish version of this Report. 2) The Company’s fiscal year is September-ending, i.e., FY2024 ends in September 2024.

3/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

1. Company Overview◆ Three Businesses: Promotional Support, Media, andSolutions
Under the corporate philosophy of “CONNECT with COMMUNITY,”
Brangista Inc. (hereinafter, the “Company”) supports companies andorganizations through its unique services that connect communities suchas companies, organizations, and local regions with people, goods, andinformation, thereby contributing to the development of vibrant local
communities.

w The Company and its
five consolidated
subsidiaries aremainly engaged in thefollowing threebusinesses:
Promotional Support,
Media, and Solutions.

The Company’s predecessor, iDEA CUBE Corporation, was founded in
November 2000 by Nexyz (now NEXYZ.Group: 4346 TSE Standard) to
manage its e-mail newsletters and members. In April 2011, the Company
absorbed the former Brangista, a group company of Nexyz, and changed
its name to the current one. In September 2015, it became listed on the
Mothers Market of the Tokyo Stock Exchange (currently, the GrowthMarket).
The Company is the effective holding company of the Brangista Group,with its subsidiaries carrying out their respective businesses. There are
five consolidated subsidiaries: Brangista YELL, Brangista Media,
Brangista Solution, Brangista Taiwan (a subsidiary in Taiwan), andCrowdLab. The Group is mainly engaged in the Promotional Support
Business, the Media Business, and the Solutions Business (Figure 1).

【Figure 1】The Subsidiaries’ Businesses
Business Segment

Company

Promotional Support

Brangista Media

Brangista YELL
Brangista Solution

Business Description
Providing ACCEL JAPAN, a project that supports corporate
promotions featuring celebrities
Production and distribution of digital magazines and other related

Media

Brangista Media

content, advertisement placement in digital magazines, andproduction of digital magazines on consignment

Solutions
OthersBrangista Solution

Operation and support of e-commerce sites and various othersolution services

Brangista Taiwan

E-commerce support and website development in Taiwan

CrowdLabManagement of the tourism information website TravelNote（Ref) Prepared by Alpha Win Research Dept. based on the annual securities report.

◆ Corporate Philosophy
Aims to contribute to thedevelopment of local
communities by
providing uniqueservices.

The Company’s corporate philosophy is “CONNECT with
COMMUNITY.” Through services that only the Company can provide,
it aims to connect various communities such as companies, organizations,and local regions with people, goods, and information to contribute to thedevelopment of vibrant local communities.
4/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
The Company’s action philosophy is the following: “To remain the best
partner to support the promotional activities of all kinds of companies,
Brangista Inc. is committed to fulfilling its social responsibility andmaximizing its enterprise value.” It is committed to the following nine
items of code of conduct: (1) compliance, (2) fair transactions, (3) pursuitof customer satisfaction, (4) providing products and services beneficial tosociety, (5) confronting antisocial forces, (6) protection of personal
information, (7) contributions to society, (8) comfortable working
environment, and (9) thorough awareness of the code of conduct among
all employees.

5/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

2． Business Description and Business Model◆ High Profit Margin in the Promotional Support Businessw Changed from a single

segment to thePromotional Support
Business, MediaBusiness, andSolutions Business in
FY2023.

Until FY2022 (note that the Company’s fiscal years are Septemberending, i.e., FY2022 ended in September 2022), the Company only had
one business segment, the electronic media business for corporate
promotions support. However, starting in FY2023, its business is divided
into the following three segments: the Promotional Support Business, theMedia Business, and the Solutions Business.
In FY2023, the Media Business accounted for 49.6% of total sales, thePromotional Support Business 23.6%, the Solutions Business 21.3%, andothers 5.6% (Figure 2). While the Media Business accounts for the largest
proportion of sales, in terms of profit, the Promotional Support Businessaccounts for the largest proportion.

w Profit margin is highfor the Promotional
Support Business,
which was started in
FY2023.

The profit margin of each segment is 34.3% for the Promotional Support
Business, 9.5% for the Media Business, and 16.4% for the Solutions
Business (before adjustments for segment profit). The profit margin ishigh for the Promotional Support Business, which was started in FY2023.
Raising the sales proportion of this business will most likely lead to an
improvement in the overall profit margin.

【Figure 2】Sales and Profit by Segment(Units: million yen)

Sales
Business Segment

Reported
Segments

FY2022

Promotional Support

ProfitFY2023

YoY
ChangeFY2022

FY2023

YoY
ChangeProfitMargin

-

1,073

-

-

368

-

34.3％

Media

2,137

2,258

5.7％

205

214

4.4％

9.5％

Solutions

1,021

969

-5.1％

148

159

7.1％

16.4％

Others

201

256

27.2％

81

71

-12.0％

27.8％

Amount of Adjustment

-

-

-

-179

-209

-

-

3,360

4,558

35.7％

255

604

2.4×

13.3％

Total

（Note) YoY changes and profit margins are for FY2023.
（Ref) Prepared by Alpha Win Research Dept. based on the annual securities report.

◆ Promotional Support Business
w The Promotional

Support Business
offers ACCEL JAPAN,
a service wherecompanies can use
photos and videos ofwell-known celebrities
for a fixed fee.

In the Promotional Support Business, the Company offers ACCELJAPAN, a service that supports corporate promotions to accelerate thegrowth of companies and contribute to the revitalization of the Japanese
economy (Figure 3).
In ACCEL JAPAN, companies can use well-known celebrities forpromotions, which would normally cost tens of millions of yen, at no
initial cost and for a fixed monthly fee. Approximately 300 photovariations and 20 video variations are available per celebrity. Customers
can use these photos and videos on flyers, ads, websites, and so forth for
6/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
a fixed fee (starting from 400,000 yen per month for an annual contract)
to advertise their products and services. This enables even small- andmedium-sized companies to use well-known celebrities for highly
effective promotions.
The service offers unlimited access to an abundant selection of versatile
photo assets, as well as video assets which are rarely offered by othercompanies. Due to this unique strength, sales of 1,073 million yen andprofit of 368 million yen were achieved in this business in the first yearof service. This business is rapidly growing into the Brangista Group’s
core business and growth driver.

【Figure 3】Overview of ACCEL JAPAN(Ref) From the financial results briefing materials for the second quarter of FY2024.

【Figure 4】ACCEL JAPAN’s Business Model

Brangista*

Companies
Starts at

Celebrities
Fixed

400,000 yen/month(Annual contract)

No initial cost
Small fees

ACCEL
JAPAN

Guarantee

PerformanceBased

Guarantee

Talent Portrait Sharing*Revenue for the entire contract period is recorded at once
when the contract is initiated. Costs are recorded monthly
over the contract period (annual).

Prominent celebrities whoare suitable for a wide rangeof companies will support
corporate PR nationwide(Ref) From the financial results briefing materials for the second quarter of FY2024.

7/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024【Figure 5】ACCEL JAPAN’s High Competitive Advantage
ACCEL JAPAN

Change incelebrity

Company A

Company B

Company C

OK

NO

NO

NO

Photos per celebrity

300 variations

60 variations

300
variations(max)

Chooseseveral from60-300 photos

Videos per celebrity

20 variations

1 variation

N/A

N/A

Use incompany portal

OK

NO

Depends oncelebrityNO

Use in affiliate ads

OK

NO

NO

NO

Not needed

Necessary

Not needed

Necessary

Credit notation(Note) Number of variations of photo and video assets is per celebrity.
(Ref) From the financial results briefing materials for the second quarter of FY2024.

w Companies can use

ACCEL JAPAN for
effective promotions
using celebrities, evenwith limited budgets.

Since promotions featuring well-known celebrities tend to involve highcontract fees, they are often not an option for small- and medium-sizedcompanies with limited resources. By covering costs such as talent feesand material production costs, the Company offers ACCEL JAPAN as aservice where companies can use celebrity photos and videos for various
applications and for only a fixed fee to effectively promote their products
and services.
Currently, ACCEL JAPAN has contracts with the following celebrities(ACCEL JAPAN Ambassadors), whom customers can use in their PR:
Hiromi, Jun Nagura, Tomomi Itano, Mariko Shinoda, Yusuke Kamiji,
Anju Suzuki, Yumi Okada, Shingo Fujimori, Norihiro Akahoshi, andPekopa (Shupei and Taiyu Shoinji). It plans to increase the number ofambassadors as the number of clients and their needs increase. Companies
using ACCEL JAPAN can also change the celebrity they use without
paying an additional fee, making this a highly attractive tool for users. In
fact, in the first year after the launch of ACCEL JAPAN in October 2022,
there were 205 uses of the service (FY2023’s total). The service isbecoming used not only by small- and medium-sized companies, but also
by government agencies, local governments, and large companies.
ACCEL JAPAN is also partnered with Passion Leaders, one of Japan’slargest business leader networking organizations (a general incorporated
association with nine offices nationwide and 4,200 members as of the endof September 2023). The executives of companies using ACCEL JAPANcan participate in seminars and other events held nationwide to gain
insight by exchanging information and interacting with executives fromother industries. Business matching is also available in these events for
identifying new business opportunities.

8/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024◆ Media Business
The Media Business
offers free digital
magazines, the mostrepresentative of which
is Tabiiro.

The Company produces and publishes digital magazines as a medium thatcombines the positive aspects of paper magazines with the rich
expressiveness and convenience of the Web. The digital magazines that it
publishes include Tabiiro (meaning “colors of travel” in Japanese), in
which actors navigate the readers through local regions to convey theircharms and the joys of travel; GOODA, a lifestyle magazine for men who
have a passion for high-quality items; Madream, a lifestyle magazine todesign “your own style”; and special editions of Tabiiro (Figure 6).
General consumers can read these digital magazines free of charge on
their PCs, mobile devices, and tablets.

【Figure 6】The Lineup of Digital Magazines

Tabiiro Special Edition

Company Tie-up
HOTEL STYLEBOOKNOMITABIBON(travel & drinking book)Tabiiro Special Edition

13

th year oftpublication

Local Government
Tie-upKimotsuki-cho, Kagoshima Ujitawara-cho, Kyoto & more

17

Tabiiro Special Editionth year of
publication

For Global Readers
TabiiroTaiwanese version

Fukuoka (English)(Ref) From the financial results briefing materials for the second quarter of FY2024.

The digital magazines are unique in that they feature many well-known
actors and celebrities who rarely appear in online media, thanks to theCompany’s network with many entertainment production companies. The
magazines also have the convenience and expressiveness that arecharacteristic of the Web. The fact that they have been published for many
years shows that the magazines are gaining support.
The digital magazine business is based on two business models: 1)
Advertisement Placement and 2) Production and Delivery (Figure 7).

9/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024【Figure 7】Business Model of the Digital Magazines
Hotels,restaurants,

leisure facilities,
local governments,
etc.

Ad Placement
Fee

Consumer

Production& Delivery

Companies

Production
Commission Fee

Production &Delivery

Free

Ad
Placement

Ad Placement(direct sales)(Ref) From the financial results briefing materials for the second quarter of FY2024.

【Figure 8】The Two Types of Advertisements Placed in Tabiiro
For Accommodation Providers
and Restaurants

Promotional articles written byprofessional writers,
accompanied by beautiful images

For Local Governments

Actors navigate the reader
through the area to convey its
charms(Ref) From the financial results briefing materials for the second quarter of FY2024.

w The Advertising

Placement Business
Model is where theCompany handles
everything from sales
activities to
production andpublication in-house.
Revenue is generated
from advertising
placement fees.

1. Advertisement Placement
Under the Advertising Placement Business Model, the Company conducts
everything from sales activities to production and publication in-house.
Its sales representatives visit accommodation facilities, restaurants,
retailers, and other local places directly from the eight sales offices
located throughout Japan to propose the placement of advertisements inthe digital magazines. In the example of Tabiiro, the Company’s flagshipdigital magazine that was first published in 2007, the magazine features
promotional articles written by professional writers, accompanied bybeautiful, travel-inspiring photographs (Figure 8).
10/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
Tabiiro is designed so that readers can check the websites of restaurants
and accommodations that they are interested in directly from themagazine. For the advertisers (restaurants and accommodation providers),
the magazine is highly effective as an advertising tool and valuable as adirect customer-attraction tool.
Advertisements are placed under an annual contract and are updated every
season to include new information.
In addition, for local governments, the Company creates dedicated digital
magazines which compile information on one local area in a single
volume for the purpose of promoting tourism, hometown tax donation,
rural migration, and so on. The price per local government starts at 10
million yen if actors and celebrities are used for local filming. Options
that could be added include the production of paper magazines (freepapers) to be distributed at places such as train stations, stores, and tourist
facilities and exclusive videos to be placed on websites, as well as atranslation service.

w The Production and

Delivery Business
Model is the
production of digital
magazines on
consignment to receive
contract productionfees.

2. Production and Delivery
Utilizing the know-how built through the publication of its digital
magazines, the Company offers digital magazine production services on
consignment and receives contract production fees.
For the companies that outsource this production, the main benefits ofdigital magazines include how actors and celebrities can be used toenhance the brand value of their services and products and attract morecustomers. Introducing products and services as part of entertaining
articles also encourages readers to more vividly imagine the scenes of use,
facilitating the conversion of readers into clients.

◆ Solutions Business
w The Company offers avariety of services
centered on the
management of ecommerce sites onbehalf of its clients.

In the Solutions Business, the Company offers a variety of services tosupport corporate sales promotions. A representative service is the
management of e-commerce websites on behalf of companies. The
Company provides a fine-tuned service based on the know-how it has
built through its management of the e-commerce websites of more than
2,000 companies (in total).
1. EC Support Pro
This service is specialized in providing support for e-commerce sites. Its
customers are companies that operate e-commerce sites, who facebottlenecks in business expansion due to a shortage of human resources
and a lack of know-how in sales promotion. The Company’s project
directors hold regular meetings with these companies to provide total
support for the improvement of operations and sales, including website
management, consulting, website design and production, delivery of email newsletters, customer attraction, and sales promotions.
2. Matomaru EC Store Manager
The Company provides a centralized management tool to streamline aseries of operations from product registration to inventory management
and order management. In inventory management, it supports the
11/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
improvement of inventory turnover by linking the inventory of multiple
e-commerce stores 24 hours a day, 365 days a year. In order management,
it centralizes orders from multiple e-commerce stores and supports thestreamlining of various operations, including delivery processing, form
output, and e-mail delivery.
The fixed monthly fee for using Matomaru EC Store Manager starts at
9,800 yen (several plans are available, such as 15,000 yen and 25,000 yen,depending on the number of products handled). A telephone inquiry
service provided by full-time staff is also available.
3. Brangista Logistics
Brangista Logistics is a logistics service dedicated to online shopping thattargets small- and medium-sized stores. It handles all operations
necessary for online shopping logistics, including inventory management,
order receipt, shipping, and customer service by phone and e-mail, which
can become increasingly complicated as business expands. In addition,
shipping costs can be kept low due to the Company’s track record withshipping companies.
4. Other Services
Other services include CS & Order Processing Outsourcing Service, aservice to support e-commerce site management; SOKURESU, an
automated response service for LINE; Brangista Translations, a service
that can translate customer websites into four major languages (English,
Korean, and simplified and traditional Chinese); and Cross-Border ECommerce Service, a one-stop service to support market research,translations, customer attraction, payment processing, shipping, and otheroperations necessary for overseas sales.

12/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

3．Shareholder Composition◆ Largest Shareholder: The Parent Company

w NEXYZ.Group is the

As of the end of March 2024, the parent company or NEXYZ.Group was
the largest shareholder, holding 50.26% of the Company’s outstanding
shares. The top ten shareholders owned 61.66% of all outstanding shares(Figure 9).

largest shareholder
with 50.26% of all
outstanding shares.

As of the end of September 2023, financial institutions and financial
instruments business operators together owned 5.13%, other corporate
entities owned 48.56%, and foreign corporate entities owned 8.83% (asof the end of September 2022, financial institutions and financial
instruments business operators together owned 6.44%, other corporate
entities owned 47.94%, and foreign corporate entities owned 0.98%). The
percentage of foreign corporate entities rose from FY2022 to FY2023 andseems to have risen again as of the end of March 2024.
【Figure 9】Major Shareholders and Their Shareholding Ratios
Shareholder (titles omitted)

End of Sept.

End of Sept.

2022

2023

Number of

Number of

End of Mar. 2024
Number of

Shareholding

Shares

Ratio

Notes
Ranking

SharesShares6,795,280

6,795,280

6,795,280

50.26%

1

Takami Kondo

269,380

269,380

269,380

1.99%

2

SBI SECURITIES Co.,Ltd.

396,867

325,132

244,869

1.81%

3

-

-

255,800

1.74%

4

-

200,000

200,000

1.48%

5

-

-

154,057

1.14%

6

-

128,700

125,100

0.93%

7

NEXYZ.Group Corporation

MSIP CLIENT SECURITIES(Standing proxy: Morgan Stanley MUFG Securities Co., Ltd.)
Satoshi Niinuma
GOLDMAN SACHS INTERNATIONAL(Standing proxy: Goldman Sachs Japan Co., Ltd.)SOCIETE GENERALE PARIS/BT REGISTRATION MARK/OPT(Standing proxy: Societe Generale Securities Japan)
Japan Securities Finance Co., LTD
Shochi Tanabe--

113,700

0.84%

8100,000-

100,000

0.74%

9

-

130,001

97,901

0.72%

10

-

230,100

-

-

-

-

163,100

-

-

-

-

151,505---*Company name changed from Nexyz.Group
Corporation in January 2024
Director; President of NEXYZ.GroupBNP PARIBAS NEWYORK BRANCH-PRIME BROKERAGE
CLEARANCE ACCOUNT(Standing proxy: HSBC Tokyo Branch Custody Services
Department)
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)(Standing proxy: MUFG Bank, Ltd.)NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN(CASH PB) (Standing proxy: NOMURA SECURITIES CO., LTD.)
JP JPMSE LUX RE CITIGROUP GLOBAL MARKETS L EQ CO(Standing proxy: MUFG Bank, Ltd.)
Ueda Yagi Tanshi Co., Ltd.

-127,700---

Tomoaki Nishimura

252,600

-

-

-

-

Rakuten Securities, Inc.

124,500

-

-

-

-

au Kabucom Securities Co., Ltd.

85,500----

Yasushi Akimoto

83,980----Kenichi Fujii

80,000----Brangista Employee Stock Ownership Plan

79,100----8,267,207

8,520,898

8,336,087

61.66%-

14,575,300

14,575,300

14,575,300

100.00%-(Top 10 Shareholders)*Shareholding ratio (%) has been calculated
based on the number of shares excluding
1,054,900 shares of treasury stock.

Total Number of Outstanding Shares（Ref) Prepared by Alpha-Win Research Dept. based on the annual securities reports and quarterly reports.

13/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

4．ESG◆ SDGs Initiatives

w Believes that the

The Company is engaged in the Promotional Support, Media, andSolutions businesses with the aim of contributing to regional
revitalization (revitalization of local communities and companies). It
believes that growth of each of these businesses will lead to solving social
issues and creating a sustainable society. Figure 10 summarizes theBrangista Group’s SDGs initiatives.

growth of eachbusiness that
contributes to regional
revitalization will leadto solving social issues
and creating asustainable society【Figure 10】SDGs Initiatives
Protection andcultivation offorest resources

E
Reducing CO emissions
E
2

Supporting
employee diversity
Contributing tolocal societies andeconomies

S

S
Providing valuable
information to consumers S
Corporate GovernanceG

The magazines are paperless and provide the necessary information via the Internet to those
who need it, thereby contributing to the protection and cultivation of forest resources thatare the main raw materials for paper. This also eliminates the inefficient usage of resources
due to returning unsold books. Replacing paper media with Internet advertising contributes tothe reduction of paper use.
We work on energy conservation and efficiency and contribute to the reduction of CO 2
emissions and waste related to paper manufacturing and printing processes. The magazines
also do not need to be distributed to bookstores, which also helps reduce CO 2 emissions.

Our groupʼs business requires almost no capital investment and we mainly provide services tocompanies. This means that human resources are our most important management resource.
We have established a new personnel system and are striving to create an environment thatmaximizes the performance of our increasingly diverse workforce.

We support the promotional activities of client companies in a variety of businesses
throughout Japan, as well as local governments. To ensure the growth potential of local
regions into the future, we aim to contribute to sustainable community development andregional revitalization for the development of local societies and economies. We contribute toincreasing tax revenues for local governments through the associated growth of population ineach region and to creating jobs through increased sales of our client companies.
We provide valuable information based on direct interviews supervised by our editors.
We have changed from a company with a board of company auditors to a company with anaudit and supervisory committee as of December 14, 2021, to strengthen the supervisory
function of the Board of Directors and further enhance corporate governance by including theaudit and supervisory committee members, who are responsible for auditing the directors'
performance of their duties, in the Board of Directors. The Board of Directors consists of 12
directors, including four external directors, and is committed to protecting the generalshareholders. We will strive to further enhance our management control system and ensurehighly transparent management.

(Ref) From the business plan and matters relating to growth potential.

◆ Social Responsibility (Society)

One of standards of the Company’s code of conduct for employees is“providing products and services beneficial to society.” The Company
aims to contribute to society through its business activities.
In addition, as its basic policy to confront antisocial forces, the Company
has set forth seven items, emphasizing its organization-wide commitment
to preventing any harm by antisocial forces.
◆ Corporate Governance (Governance)

The Company’s Board of Directors, excluding members of the Audit &Supervisory Committee, consists of nine directors (two external directors
as of March 2024). In principle, the Board of Directors meets monthly,
and all nine directors (excluding directors on the Audit & Supervisory
Committee) attended all 12 meetings held in FY2023.
The Company is a company with an audit and supervisory committee. The
14/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
Audit & Supervisory Committee consists of three members, including
two external directors. The Company ensures that the members of the
Audit & Supervisory Committee can conduct audits based on the samelevel of information available to the directors. This is achieved by having
the members of the Audit & Supervisory Committee attend all meetingsof the Board of Directors as a principle, exchange opinions with relevant
people including the Representative Director & President and the
directors, and view important documents.

15/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

5．History of Growth◆ Company History
w The Company’s

predecessor, iDEA
CUBE, wasestablished to manage
NEXYZ.Group's e-mailnewsletters, etc.

w In 2003, iDEA CUBE

started its solutions
business.

w The digital magazine

Tabiiro was launchedin 2007. The Company
changed its name to
Brangista, its current
name, in 2011.

w Began offering ACCELJAPAN in October
2022. Divided its
business into threesegments.

The Company’s predecessor, iDEA CUBE, was founded in November
2000 by its parent company, Nexyz (now NEXYZ.Group), to manage its
e-mail newsletters and members.
The current president, Keiryo Iwamoto, joined Nexyz in 1997, became a
director in 1999, and became representative director and president ofiDEA CUBE in 2002. In 2003, iDEA CUBE started its solutions business,and in 2005, it was entrusted with the management of the fan club of
Fukuoka SoftBank Hawks, a professional baseball team, and began thedelivery of emails to its members.
In February 2007, the former Brangista was founded jointly by Nexyz andthe entertainment production company LesPros Entertainment. It
launched the digital magazine Tabiiro in December of the same year, after
which it subsequently launched GOODA, Madream, and otherpublications, expanding its business. The former Brangista was thenmerged into iDEA CUBE in April 2011, upon which iDEA CUBE
changed its name to Brangista Inc.
In September 2015, the Company became listed on the TSE Mothers
Market (now the Growth Market). In April 2020, it transitioned to aholding company structure with consolidated subsidiaries, and in October
2022, it began offering ACCEL JAPAN as a new service (Figure 11).

16/31
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investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024【Figure 11】Company History
Year

Month

2000

Nov

2003

Apr

2005

Mar

2006

Sep

2007

Dec

2011

2013

2015

2017

2018

Event
Founded as iDEA CUBE Corporation by Nexyz.Corporation (currently NEXYZ.Group Corporation), the parent
company, to manage its e-mail newsletters and members
Started a solution service that supports sales promotion
Commissioned to manage the fan club of the Fukuoka SoftBank Hawks, a professional baseball team. Started
the delivery of e-mails to fan club members.
Formed a business alliance with All Japan Ryokan Hotel Association Inc. and started providing comprehensive
support for enhancing the service of Yado-Net, an official website of the association.
The former Brangista Inc. began publishing Tabiiro, a travel digital magazine, and also launched anadvertising agency service for the facilitiles introduced in Tabiiro.

Apr

The Company absorbed the former Brangista Inc., a group company, and changed its name to Brangista Inc.

Sep

Launched the digital magazine GOODA

Apr

Launched the digital magazine SUPER CEO

Sep

Accepted an investment from Rakuten, Inc.(currently Rakuten Group, Inc.) to strengthen business alliance inthe digital magazine business

Nov

Launched the digital magazine SEIKEIDENRON

Apr

Jointly launched the digital magazine Madream with NEXT Co., Ltd. (currently LIFULL Co., Ltd.)

Sep

Became listed on the Tokyo Stock Exchange Mothers Market

Nov

Started Tabiiro Plus, a travel curation site

Dec

Started the Cross-Border E-Commerce Service

Oct

Established Brangista Taiwan Inc. in Taiwan

OctStarted publishing NOMITABIBON Powered by Tabiiro, a special edition of Tabiiro

Aug

Started publishing Tabesaki, a special edition of Tabiiro

Dec

Dugong Inc. (currently CrowdLab Inc.), a company which manages the tourism information website
TravelNote, became a subsidiary of Brangista.
Established Brangista Media Inc. Transitioned to a holding company structure with Brangista Media Inc.,

2020

Apr

2021

Nov

Started the joint media 1-ONE- with SBC Medical Group

Apr

Moved from the Mothers Market to the Growth Market of the Tokyo Stock Exchange

Oct

Established Brangista YELL Inc. as a consolidated subsidiary and started providing the service ACCEL JAPAN

2022

Brangista Solution Inc., Brangista Taiwan Inc., and CrowdLab Inc. as subsidiaries.

（Ref) Prepared by Alpha-Win Research Dept. based on the annual securities report＞ Financial Performance◆ Past Transition in Financial Performance

Figure 12 shows the Company’s financial performance since the start ofconsolidated accounting. Net sales increased for 10 consecutive fiscal
years due to an increase in the number of advertisements placed in the
Company’s digital magazines. However, in FY2020, net sales declined
by 18.1% YoY since the number of advertisements placed in its mainstay
digital magazine Tabiiro decreased due to the COVID-19 outbreak. In
17/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
FY2021, net sales increased by 18.4% YoY due to an increase in thenumber of advertisements placed in the specialty ordering section of
Tabiiro, as well as due to an increase in advertising sales from local
governments for local revitalization. In FY2022, despite the impact ofapplying the new accounting standards for revenue recognition, net sales
increased by a small amount due to the strong performance of tie-up
advertising with local governments.
As for ordinary profit, it fell by 39.8% YoY in FY2017 due to greater
promotional expenses and worsened gross profit margin caused by higher
labor and outsourcing costs. In FY2018, it posted an ordinary loss of 234
million yen due to higher personnel, advertising, and promotional
expenses.

w The Company

recorded an ordinary
loss in FY2018, but thisrecovered sharply in
FY2019 due to thecompletion of a roundof expenses.

In FY2019, ordinary profit recovered sharply to 513 million yen
following the completion of a round of expenses, but in FY2020, profit
declined again due to sales decline caused by the COVID-19 outbreak. In
FY2022, profit declined because the gross profit margin worsened due tothe change in the revenue-recognition standard, which made the rate ofsales growth slower and consequently increased the relative amount of
fixed costs. However, ordinary profit for the fiscal year was 258 million
yen, exceeding the initial plan of 100 million yen.

【Figure 12】Change in Net Sales and Ordinary Profit(Million yen)

(Million yen)

5000
4500
4000

4558

600
500

3500
3000

601

513

502

700

3160
2823

3367

3394

302

3290
2780

3360

400

365

2500

300
200

258

2000

100
8

1500

0

1000

-100

500

-200

-234

0
2016/9期
FY20162017/9期
FY2017

2018/9期
FY2018-300
2019/9期
FY2019Net Sales (left axis)

2020/9期
FY20202021/9期
FY20212022/9期
FY20222023/9期
FY2023

Ordinary Profit (right axis)（Ref) Prepared by Alpha-Win Research Dept. based on the annual securities reportw In FY2023, both sales

and profits reachedrecord highs, partly
due to the contributionof ACCEL JAPAN.

◆ Large Sales and Profit Growth in FY2023

In FY2023, net sales grew by 35.7% YoY to 4,558 million yen, operating
profit increased by 2.4x YoY to 604 million yen, ordinary profit increasedby 2.3x YoY to 601 million yen, and profit attributable to owners ofparent increased by 3.2x YoY to 579 million yen.

18/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
By segment, the Promotional Support Business saw a solid start-up of
ACCEL JAPAN, which was launched at the beginning of FY2023 in
October 2022. Its number of contracts reached 205 in the fiscal year. Salesof this segment were 1,073 million yen and profit was 368 million yen(no comparison to the previous fiscal year since this was the first fiscal
year for the segment).
In the Media Business, sales of advertising placements increased due to arecovery in demand for tourism and restaurant services. The segment’s
sales increased by 5.7% YoY to 2,258 million yen and profit rose by 4.4%
YoY to 214 million yen.
In the Solutions Business, sales declined by 5.1% YoY to 970 million yen
due to the downsizing of online shopping services, while its profit rose by
7.1% YoY to 159 million yen due to increased operational efficiency.
Total profit of the segments was 813 million yen. Although companywide expenses increased to 209 million yen from 179 million yen in
FY2022, mainly due to an increase in personnel expenses, the operating
profit margin improved by 5.7 percentage points from FY2022 to 13.3%
in FY2023 due to the new addition of the high-margin Promotional
Support Business.
The growth rate of profit attributable to owners of parent was higher thanthat of ordinary profit, since the adjustment amount for income taxes
decreased due to the recognition of deferred tax assets.

19/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

6．Business Environment◆ Continued Expansion of Both the Internet Advertisingand E-Commerce Markets
w Internet advertisingexpenditures in 2023
increased by 7.8% YoY
to 3.3 trillion yen.

According to “2023 Advertising Expenditures in Japan,” published by
Dentsu in February 2024, Internet advertising expenditures in 2023 drove
the growth of the overall advertising market and reached 3.3 trillion yen(+7.8% YoY) (Figure 13).

【Figure 13】Growth of the Internet Advertising Market(100 million yen)(100 million yen)

33,33035000

30,91230000

27,05225000

21,04820000

17,589

15000
10000

22,290

7,747

8,062

8,680

9,381

10,51911,594

13,10015,094

5000
0
2010年
2011年 FY2012
2012年
FY2010 FY2011

Performance-Based Ads

2013年 FY2014
2014年 FY2015
2015年 FY2016
2016年 FY2017
2017年
FY2013

Reserved Ads, Etc.

Production Costs

2018年 FY2019
2019年 FY2020
2020年 FY2021
2021年 FY2022
2022年 FY2023
2023年
FY2018Merchandise-Related E-Commerce Platform Ads(Note) Merchandise-related e-commerce platform advertising has been added as a new category since 2019.
(Ref) Prepared by Alpha-Win Research Dept. based on “2023 Advertising Expenditures in Japan” by Dentsu and “2023 Advertising
Expenditures in Japan: Detailed Analysis of Expenditures on Internet Advertising Media” by D2C, CARTA COMMUNICATIONS(formerly, cyber communications), Dentsu, and Dentsu Digital.

Growth has continued due to the increasing digitization of the entire
society and the establishment of online consumption styles following the
COVID-19 crisis. The ratio of Internet advertising expenditures to total
advertising expenditures rose from 43.5% in 2022 to 45.5% in 2023.
w The Japanese e-commerce market isalso continuing to
expand, with a market
size of 22.7 trillion
yen in 2022.

The Japanese e-commerce market has also continued to expand.
According to the “E-Commerce Market Survey” by the Ministry of
Economy, Trade and Industry, the size of the e-commerce market in 2022
was approximately 22.7 trillion yen (+9.9% from the previous year). Thiscan be attributed to an increase in the number of e-commerce site
operators which has led to the proliferation of diverse online shopping
stores, as well as due to the increasing use of smartphones for transactions
by people of a wide range of ages.

◆ Competition
The “first year” of e-books in Japan is said to have been around 2010,
when a variety of devices became available for access to eBooks andmany eBook stores became opened. As the paper-based publishing
20/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
industry shrank, companies of various fields including printing,telecommunications, and manufacturing began to enter the eBook
industry around this period.

w The Company’s

advantage is theknow-how it has
accumulated by
specializing in digital
magazines and its
business expansion
based on celebrity
casting.

The Company, which launched its first digital magazine Tabiiro in 2007,
can be considered a pioneer in this industry. Currently, among listedcompanies, the Company is the only one that specializes in the production
and publication of digital magazines, making the Company’s position
unique. Another unique point is that many famous actors have beenfeatured in the digital magazine since its first issue, with over 320 actors
featured in the magazine to date. The Company also has a competitiveedge in that it has expanded its business to promotional support byleveraging its excellence in celebrity casting.

21/31
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investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

7．Growth Strategy◆ Brangista’s Growth Strategy
The Company plans to implement various measures to expand thePromotional Support, Media, and Solutions businesses, aiming forsustained sales and profit growth.

w In the Promotional

Support Business,sales representatives
will work on
strengthening pushmarketing.

1. Promotional Support Business
The Promotional Support Business entered its second year in FY2024.
Unlike FY2023, which was its first year, contract renewal sales are now
added to its revenue model. Therefore, starting in FY2024, the Company
intends to increase the number of contract renewals by strengthening
customer support, increase the number of new contracts by strengthening
push marketing by its sales staff, and increase the sales per customer
through the sales of cross-selling items.
To increase the number of contract renewals, the Company has
established a customer success department from the very beginning ofservice to provide thorough support to its client companies. Specifically,
based on a case-study analysis of the companies of various industries
using ACCEL JAPAN for a variety of purposes, the Company
recommends ways to use and improve experience with ACCEL JAPANto suit the industries and purposes of the client companies.
As the number of client companies increases and successful case studies
accumulate, the Company will most likely be able to provide more precise
support, creating a positive cycle. This is expected to contribute to anincrease in the number of contract renewals in the future.
In addition, the number of new contracts has increased as the skills of thecustomer success staff in proposing ways to use ACCEL JAPAN have
improved. This improvement in proposal skills is expected to contributeto a further increase in the number of new contracts in the future, alongwith the strengthening of sales activities described below.
To strengthen sales activities, the Company plans to increase the numberof employees at its sales offices throughout Japan and strengthen its
proposals to companies and local governments. It has been working on
extensive sales activities in the Kyusyu area since May 2024, and plans
to expand nationwide based on the results of these activities.
In terms of selling the cross-selling items, the Company intends tostrengthen its proposals for casting for events and campaigns, as well as
for the creation of advertising materials and videos on consignment, foradditional one-time revenue.
The service of ACCEL JAPAN has also been changed so that customers
no longer need to label the service and celebrity names on ads (previously,
the ACCEL JAPAN Ambassador’s name and service name had to beshown on ads when using celebrities), enabling clients to advertise as if
they have directly employed the celebrity. This kind of service is rarely
offered by other companies in the industry and gives ACCEL JAPAN a
competitive edge. The Company plans to further differentiate itself by
22/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024
introducing such services and leveraging its network with entertainment
production companies to increase its number of ambassadors (celebrities).

w In the MediaBusiness, it will
expand the scope of
Tabiiro Selection
throughout Japan toincrease advertisingsales.

w In the Solutions

Business, theCompany will workon increasing thesales per client byencouraging orders
for multiple services.

2. Media BusinessIn the Media Business, the Company’s plan is to expand the scope of
Tabiiro Selection throughout Japan. Tabiiro Selection is a version of
Tabiiro that focuses on a specific area in Japan during a specific period.
The Company will strengthen sales activities in these specific areas toincrease advertising sales.
For local governments, the Company is offering new services beyond therealm of Tabiiro, leveraging the content-production capabilities that it has
built to date. These include video shooting, editing, and delivery, as wellas the creation of travel plan articles and experience report articles. Its
product lineup and number of options have increased, which the Company
plans to further strengthen in the coming years.
3. Solutions BusinessIn the Solutions Business, the Company plans to increase sales byacquiring new customers through service and function enhancements for
its low-cost service, Matomaru EC Store Manager. Furthermore, it will
aim to gain additional orders for other services as customers expand theirbusinesses. In addition, services other than e-commerce support are also
growing steadily, such as its website production and management service
and CRM service. The Company plans to continue to increase sales by
gaining more customers for these services.

◆ Medium-Term Management Plan
w The Company plans

to post record net
sales and operating
profit for four
consecutive fiscal
years.

In FY2023, the Company achieved a significant increase in net sales andprofit thanks to the strong start-up of ACCEL JAPAN, a new service thatleverages its excellence in celebrity casting, know-how in creative works,
and proposal skills of the sales team that it has developed through its
digital magazine business. Based on these results of FY2023, theCompany has formulated the 2024-2026 Medium-Term Management
Plan. Its numerical targets for FY2025 are net sales of 5,300 million yen(+10.4% YoY) and operating profit of 1,000 million yen (+25.0% YoY),
and for FY2026, net sales of 6,000 million yen (+13.2% YoY) andoperating profit of 1,300 million yen (+30.0% YoY).
By business segment, sales of the Promotional Support Business areplanned to be 1,800 million yen (+20.8% YoY) in FY2025 and 2,180
million yen (+21.1% YoY) in FY2026, while sales of the Media Businessare planned to be 2,320 million yen (+2.7% YoY) in FY2025 and 2,460
million yen (+6.0% YoY) in FY2026. The Solutions Business is planned
to generate sales of 1,200 million yen (+12.1% YoY) in FY2025 and1,310 million yen (+9.2% YoY) in FY2026.
The Company expects to achieve record-high net sales and operating
profit for four consecutive fiscal years with the stable growth of the MediaBusiness and Solutions Business, as well as the expansion of thePromotional Support Business as the number of clients companies of
ACCEL JAPAN increases.
23/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

8 ． Financial Results for the Most Recent
Fiscal Year and Outlook◆ Financial Results for the First Half of FY2024
w In the first half of

FY2024, net sales
increased by 2.5%
YoY and operating
profit increased by
64.5% YoY.

In the first half of FY2024 (hereinafter, “H1”), net sales grew by 2.5%
YoY to 2,353 million yen, operating profit increased by 64.5% YoY to
477 million yen, ordinary profit grew by 63.4% YoY to 474 million yen,and profit attributable to owners of parent increased by 53.2% YoY to 305
million yen. The Company does not disclose forecasts for the first half,
but in terms of achieving the full-year plan, the progress has been 49.0%
for net sales and 59.6% for operating profit (Figure 14).
By segment, the Promotional Support Business saw a steady increase inboth contract renewals and new contracts for ACCEL JAPAN, with thesegment’s sales rising by 75.1% YoY to 785 million yen and profit risingby 98.8% YoY to 293 million yen.
In the Media Business, sales declined by 12.6% YoY to 1,055 million yen
due to a decrease in the sales of tie-up advertisements with local
governments, despite an increase in the sales of advertisements in the
Tabiiro magazine. Although sales declined, the segment’s profit rose by
7.8% YoY to 149 million yen due to a decrease in production costs andadvertising expenses.
In the Solutions Business, sales fell by 5.2% YoY to 475 million yen
following a one-time system development contract in the same period of
the previous fiscal year, but the segment’s profit rose by 41.2% YoY to
114 million yen due to improved operational efficiency.

w The operating profit

margin rose to 20.3%,
an improvement of 7.7
percentage points
YoY.

Total profit of the segments was 580 million yen. Company-wide
expenses decreased to 103 million yen from 110 million yen in H1
FY2023, mainly due to a decrease in expenses resulting from a change in
the audit firm. As a result, the overall operating profit grew by 64.5%
YoY, and the operating profit margin improved by 7.7 percentage points
to 20.3%.

24/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024【Figure 14】Summary of Financial Results in the First Half of FY2024

Net Sales

FY2023

FY2023

FY2024Full-Year Result

First-Half Result

First-Half Result (A)YoY Change

FY2024Progress

Company Plan (B)(A) / (B)

4,558

2,295

2,353

2.5％

4,800

49.0%

Promotional Support Business

1,073

448

785

75.1%

1,490

-

Media Business

2,258

1,207

1,055

-12.6%

2,260-

Solutions Business

969

501

475

-5.2%

1,070

-

Others

256

137

36

-73.2%

140-

Gross Profit

3,262

1,606

1,757

9.4%

-

-

71.6%

70.0%

74.7%

-

-

-

2,658

1,316

1,280

-2.8%

-

-

58.3%

57.4%

54.4%

-

-

-

604

290

477

64.5%

800

59.6%

13.3%

12.6%

20.3%

-

16.7％

601

290

474

63.4%

800

13.2%

12.6%

20.2%

-

16.7％

579

199

305

53.2%

520

Gross Profit Margin
SG&A Expenses
SG&A Expense Ratio
Operating Profit
Operating Profit Margin
Ordinary Profit
Ordinary Profit Margin
Profit Attributable to Owners of Parent

59.3%

58.7%

（Note) Sales of each business in the company plan are before the elimination of intersegment sales.
（Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.

◆ Brangista’s Financial Forecast for FY2024
w In FY2024, theCompany expects net
sales of 4,800 million
yen (+5.3% YoY) andoperating profit of 800
million yen (+32.4%
YoY), in line with its
initial plan.

As announced at the beginning of FY2024, the Company plans a 5.3% YoY
increase in net sales to 4,800 million yen, a 32.4% YoY increase inoperating profit to 800 million yen, a 32.9% YoY increase in ordinary
profit to 800 million yen, and a 10.3% YoY decrease in profit attributableto owners of parent to 520 million yen in FY2024. Sales, operating profit,and ordinary profit are expected to reach record highs for the second
consecutive fiscal year. Profit attributable to owners of parent is forecasted
to decline because the adjustment amount for income taxes will return tothe normal basis, meaning that this profit’s growth rate is expected tootherwise be around the same level as operating profit and ordinary profit.
In the Promotional Support Business, sales are expected to increase by
38.9% YoY to 1,490 million yen due to an increase in the number ofcontract renewals and new clients for ACCEL JAPAN, which is now in its
second year of service.
The Media Business is expected to post sales of 2,260 million yen, an
increase of 0.1% YoY, due to steady sales of advertising placements byaccommodation providers and restaurants.
The Solutions Business is expected to increase sales by 10.4% YoY to
1,070 million yen due to higher sales per customer as the Company
strengthens proposals for multiple services in line with its customers’
business expansion.
The operating profit margin is projected to improve by 3.4% percentage
points from the previous fiscal year to 16.7%, due to an increase in the sales
proportion of the high-margin Promotional Support Business.
25/31

This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024◆ Alpha-Win Research Department’s Financial Forecast
w For FY2024, Alpha-Win

forecasts a 6.6%
increase in net sales
and a 49.0% increase inoperating profit YoY.

Based on the H1 FY2024 results and the Company’s activities, Alpha-Win
Research Deparment forecasts FY2024’s results to exceed the Company’s
forecasts, with net sales of 4,860 million yen (+6.6% YoY), operating profitof 900 million yen (+49.0% YoY), ordinary profit of 900 million yen(+49.8% YoY), and profit attributable to owners of parent of 585 million
yen (+1.0% YoY) (Figure 15).
Since the Promotional Support Business, whose revenue model will now
also include contract renewal sales, appears to be performing well, the fullyear results may even possibly exceed our forecasts as well as theCompany’s.
We made the following assumptions in formulating our forecasts.
1. By segment, we expect sales of 1,600 million yen (+49.1% YoY) for the
Promotional Support Business, 2,230 million yen (-1.2% YoY) for theMedia Business, and 1,000 million yen (+3.2% YoY) for the Solutions
Business.

w We predict that both

the gross profit margin
and the SG&A expense
ratio will improvecompared to theprevious fiscal year.

2. We expect the gross profit margin to improve by 2.9% percentage points
from the previous fiscal year to 74.5% due to an increase in the sales
proportion of the high-margin Promotional Support Business.
3. Although personnel expenses are expected to increase due to an increasein the number of employees, we expect the SG&A expense ratio to improveby 2.3 percentage points from the previous fiscal year to 56.0% due toincreased sales and more efficient use of the other expenses.

26/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024【Figure 15】Medium-Term Financial Forecast
FY2022

FY2023

FY2024: CE

FY2024: E

1
9

FY2025: E

FY2026: E

Profit and Loss Statement
Net Sales
YoY Change
Promotional Support Business

3,360

4,558

4,800

4,860

5,390

6,054

-

35.7%

5.3%

6.6%

10.9%

12.3%

-

1,073

1,490

1,600

1,950

2,400

Media Business

2,137

2,258

2,260

2,230

2,275

2,360

Solutions Business

1,021

970

1,070

1,000

1,135

1,264

Others

293

329

140

140

150

180

(Internal Sales)

-92

-73

Not disclosed

-110

-120

-150

Gross Profit

2,404

3,262

-

3,620

4,069

4,613

YoY Change

-

35.7%

-

11.0%

12.4%

13.4%

Gross Profit Margin

71.5%

71.6%

-

74.5%

75.5%

76.2%

2,148

2,658

-

2,720

2,977

3,271

63.9%

58.3%

-

56.0%

55.2%

54.0%

255

604

800

900

1,092

1,342

YoY Change

-

2.4×

32.4%

49.0%

21.3%

22.9%

Operating Profit Margin

7.6%

13.3%

16.7%

18.5%

20.3%

22.2%

258

601

800

900

1,092

1,342

YoY Change

-

2.3×

32.9%

49.8%

21.3%

22.9%

Ordinary Profit Margin

7.7%

13.2%

16.7%

18.5%

20.3%

22.2%

178

579

520

585

722

888

-

3.2×

-10.3%

1.0%

23.4%

23.0%

SG&A Expenses
SG&A Expense Ratio
Operating Profit

Ordinary Profit

Profit Attributable to Owners of Parent
YoY Change

Sales

Segment's Profit
Segment's

FY2026FY2024(forecast)(forecast)(forecast)(forecast)

Promotional Support Business

1,600

1,950

2,400

630

39.4%

780

40.0%

980

40.8%

Media Business

2,230

2,275

2,360

268

12.0%

283

12.4%

300

12.7%

Solutions Business

1,000

1,135

1,264

182

18.2%

214

18.9%

250

19.8%

Margin(forecast)ProfitMarginFY2026

Segment's

FY2025

ProfitFY2025

Segment's

FY2024(forecast)ProfitMargin(Notes) CE: Company forecast/estimate. E: Alpha-Win’s forecast/estimate.
（Ref) Alpha Win Research Dept.

27/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

w For FY2025, we forecast

a 10.9% increase in net
sales and a 21.3%
increase in operating
profit YoY.

Issued: 7/1/2024◆ Alpha-Win Research Department’s Forecast of MediumTerm Financial Performance
For FY2025, we forecast net sales of 5,390 million yen (+10.9% YoY) andoperating profit of 1,092 million yen (+21.3% YoY).
By segment, we forecast sales of 1,950 million yen (+21.9% YoY) for the
Promotional Support Business, 2,275 million yen (+2.0% YoY) for theMedia Business, and 1,135 million yen (+13.5% YoY) for the Solutions
Business.
We expect the gross profit margin to improve by 1.0 percentage point fromthe previous fiscal year to 75.5% due to an increase in the sales proportionof the high-margin Promotional Support Business.
The SG&A expense ratio is forecasted to improve by 0.8% percentage
point YoY to 55.2%, as higher sales offset the anticipated increases inpersonnel and advertising expenses.

w For FY2026, we forecast

a 12.3% increase in net
sales and a 22.9%
increase in operating
profit YoY.

For FY2026, we forecast net sales of 6,054 million yen (+12.3% YoY) andoperating profit of 1,342 million yen (+22.9% YoY).
By segment, we forecast sales of 2,400 million yen (+23.1% YoY) for the
Promotional Support Business, 2,360 million yen (+3.7% YoY) for theMedia Business, and 1,264 million yen (+11.4% YoY) for the Solutions
Business.
We expect the gross profit margin to improve by 0.7% percentage pointfrom the previous fiscal year to 76.2%, due to a continued increase in thesales proportion of the high-margin Promotional Support Business.
The SG&A expense ratio is expected to improve by 1.2 percentage points
YoY to 54.0%, due to a relative reduction in the fixed costs resulting fromthe increase in sales.

28/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

9．Analyst’s View
◆ Brangista’s Strengths and Challenges
The Company’s SWOT analysis result is summarized in Figure 16.
【Figure 16】SWOT Analysis･Established position as a publisher specializing in digital magazines with no paper-based media･Know-how in digital magazine and web content production accumulated since the start of business

Strength･Nationwide, strong sales force･Agility to handle everything from production to sales in-house･Unique services that take advantage of its ties with entertainment production companies･Business that contributes to the revitalization of local economies, an important issue for Japan･Expenditures for Internet advertising by companies may fluctuate with changes in the business climate.

Weakness･The business scale of each service is small.
･Company name is not well known.
･Further shift of magazines from paper to electronic form
･Further expansion of the Internet advertising and e-commerce markets

Opportunity･Increase in the number of companies and local governments throughout Japan that subscribe to the new
ACCEL JAPAN service･With the expansion of business scale, the Company's name recognition will also increase, making it easierto recruit human resources and acquire advertisers.
･Deterioration of the business environment due to an increase in competitors

Threat･New laws and regulations, or amendments to existing laws and regulations, may impact its business.
･Travel demand may decline in response to restrictions on activities due to the spread of infectious
diseases.

(Ref) Alpha-Win Research Department

To add to the Company’s strengths, the know-how it has accumulated
since the launch of its first digital magazine in 2007 most likely makes it
difficult for other companies in the industry to catch up. Its strengths also
include its nationwide sales force, its agility in handling everything fromproduction to sales in-house, and its businesses’ contribution to local andregional revitalization which has become an important issue for Japan.
In terms of weaknesses, the Company’s sales of the segments in FY2023
were small at approximately 2.2 billion yen for the Media Business, 1.0
billion yen for the Promotional Support Business, and 0.9 billion yen for
the Solutions Business. However, while its business scale is currently
small, there is significant room for growth in the newly launched
Promotional Support Business. Growth of this high-margin businesscould lead to an increase in the overall operating profit margin.

◆ Shareholder Return
The Company has repurchased its own shares to return profits toshareholders and improve capital efficiency. As of March 19, 2024, thetotal number of shares repurchased was 400,000 (for a total acquisition
price of 270 million yen), which corresponds to 2.74% of the total numberof outstanding shares (excluding treasury shares).
29/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024◆ Stock Price
The Company’s share price over the past 12 months and its price relative
to the TOPIX are shown on the summary page (Figure C on page 2). The
share price has been in the range of 580 yen to 790 yen since the beginningof 2024.
On February 14, 2024, the Company announced its Q1 results, in which
its operating profit was 2.4x greater than the same period of the previous
fiscal year. In response to this, the share price reached a high of 783 yen
on February 15, after which the stock continued to trade on high volume
for a while within a certain price range.
After this, in the absence of new information, the share price continued tohover in the high 500s to the low 600s. Then, after the announcement of
Q2 results on May 15, 2024, the share price rose to 660 yen in responseto the favorable results, after which the price was pushed down by sellers
to the current level in the low 600s.
The current level of share price is approximately 12x the next fiscal year’s
forecasted P/E ratio. We believe that the stock price may adjust to reflectbusiness performance growth as the progress of the medium-term
management plan becomes confirmed.

30/31This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
Brangista Inc. (6176 TSE Growth)

Issued: 7/1/2024

Disclaimer
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-WinCapital Inc. (hereinafter, “Alpha-Win”) at the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or
reliance on this Report. Investors who read this Report must make their own decisions on all investment mattersand take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally
accessible public information and supplemental information including interview(s) by the analyst. Furthermore,
we have strived to clearly distinguish and document the forecasts and judgments made by the company fromthose made by Alpha-Win.
Contents of this Report are based on information current as of the issue date and are subject to change without
notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete,appropriate, or fit for any purpose and do not accept any responsibility or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied,cited, or translated without our consent. Alpha-Win, the writer, and/or other persons involved in the publicationof this Report may already hold, or buy and sell in the future, the shares of the company presented in thisReport.
For inquiries regarding this Report, please send us an e-mail to info@awincap.com. However, Alpha-Win andthe writer of this Report do not have any obligation to reply to inquiries.

31/31
This Alpha-Win Company Research Report (hereinafter, “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter, “Alpha-Win”) on the request of thecompany presented in this Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of
investment. Contents of this Report are based on information current as of the issue date and are subject to change without notice. We do not warrant or represent thatthe information in this Report is accurate, reliable, complete, appropriate, or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not
be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or reliance on this Report. Investors who read this reportmust make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of this Report belongs to AlphaWin and no part of this report may be copied, photocopied, cited, or translated without our consent.