Company Overview

CEO Message
An advertising agency sensitive to the specific needs of theamusement industry
Our role is to contribute to the growth and development ofour clients
Gendai Agency Inc. was founded in April 1995 as an agency specializing inamusement industry advertising. Ever since, as trailblazers in the industry,
we have strived as a team toward our goal of building the company into an
entirely unique presence in the field.
Ever since listing our shares on the Tokyo Stock Exchange in September
2004, we have defined our business domain as “contribution to clients’business development and enhancement through the provision of support
to bolster performance and assistance in the implementation of strategies
to attract customers.”
Our services do not only involve the provision of simple one-off
advertisements in a certain media category—we provide comprehensive
proposals developed based on strategies to attract customers. Our
proposals take the form of consumer communications strategies createdfrom optimal mixes of online and mass media advertising, newspaper flyers,
sales promotions, and so on, all tailored to clients’ circumstances, theregions they operate in, and their particular business category. To ensure
successful implementation of communications strategies that feature a highdegree of originality, we provide a one-stop service with full oversightcovering everything from planning and production to execution.

Over the years, we have worked to further polish and enhance oursystems to enable us to deliver advertising plans that exceed clients’
expectations in terms of both speed and quality.
Now we are leveraging this foundation of expertise we have built up
to develop a large number of new business models and tools to meetthe needs of clients operating in a diverse range of industries.

Responding flexibly to rapidly changing times
Toward a more transformative organizational structure
In recent years, the environment surrounding the company ischanging rapidly and drastically. In order to respond flexibly tochanges in the environment and achieve sustainable growth, wehave been actively pursuing M&A and new business development,
diversifying the industries and business categories we cover, andreforming our organization.
To take on further challenges in the future, under the new
management structure we will expand the rational structuredeveloped in the advertising business to various fields, and work tochallenge and develop new fields.
We will continue to grow with more clients and support their businessdevelopment.

Achieving greater efficiency through concentration ofbusiness resources
We aim to become a driving force behind the creation of nextgeneration business models and services
Our sustained focus on a single field over the more than 25 years since ourfounding has allowed us to develop mechanisms that facilitate a high levelof efficiency, and our speed, precision, creativity, and superior capabilities
in the fields of planning and production are largely a result of these.

June 2024
CEO Katsutoshi Oshima

2

Contents

Corporate Outline

Overview of the Real Estate BusinessCompany Profile

05

History

06

Stock-related Information

07

Overview of the Gendai Agency Group08

Corporate Philosophy and Vision

09

Financial Highlights (Consolidated)

10

Real Estate Business Overview

19

Future Activities
Future Management Strategy～ Medium- to Long-Term Business Strategy

21～ Challenges Ahead

22～ Performance Indicators and Basic Policy on Profit

Advertising Business — Business Model and Strengths
Our Business

12Service Overview

13

Service Flow

14

Branch Office Locations

15

Operation Scheme

16

Strengths and Characteristics

17

Distribution

23

Corporate Governance, Sustainability
Corporate Governance25

Sustainability Initiatives

26

3

 Company Profile

Corporate
Outline History
 Stock-related Information
 Overview of the Gendai Agency Group Corporate Philosophy and Vision Financial Highlights (Consolidated)

4

Company Profile
Company name

GENDAI AGENCY INC.
http://www.gendai-a.co.jp

Directors and auditors*Data current as of June 21, 2024

Representative Director
and CEO

Katsutoshi Oshima

Representative Director
and COO.CCO

Yuzuru Kamikawana

Location of head
offices29 Fl., Tokyo Opera City Bldg.,
3-20-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo
163-1429 Japan

Established

April 1995

Director and CFO

Shuichi Ko

Capital¥100 million

Shares issued &outstanding

Masato Morozumi

12,300,000 shares

Director and General
Manager of Accounting
Dept.
Director

Masataka Yamamoto

Business activities

Planning and production of advertising and promotions

Consolidated
subsidiaries

U and U Inc. (Advertisement planning, media slot sales)
Julia Japan Inc. (Video and Web contents production)
Zealnet Inc. (Planning and production of ads, etc.)
Press A Inc. (Operation of customer referral support media)

Land Support Inc. (Leasing of real estate and officebrokerage)
Arc Inc. (Research and development for new service andnew business model)

Number of
employees

Gendai Agency Group: 215; GENDAI AGENCY INC.: 143

Branch officelocations

East Japan branch,Sendai office,Kanto branch,Sapporo
office,Tokai branch,Matsumoto office,Shizuoka office,Kansai branch,West Japan branch,Hiroshima office,Kagoshima office(11 locations nationwide)*Data current as of April
1st, 2024

Outside Director

Masaki Tasaka(Chairperson, p-ban.com Corp.)

Rihyei Kang

Outside Director(Professor, System Design, Faculty of Engineeringand Design, Hosei University)Standing Auditor

Yoshiaki Adachi

AuditorKenji Takano

AuditorToru Takaoka*Data current as of March 31, 2024

5

History

Feb.1994.

Launched advertisement business with a private company named Gendai koukokusha.
(founded by Masataka Yamamoto)Apr.1995.

Established an advertisement firm, Gendai koukokusha, with capital of 10 million yen and opened an office at Hachioji cit.，Tokyo.

Mar.1997.

Began establishing business bases in major cities nationwide starting with establishment of the Tohoku Branch (now called
Sendai Office)Aug.2003.

Changed the trade name to GENDAI AGENCY INC.

Sep.2004.

Listed on JASDAQ (Currently listed on Standard Market of Tokyo Stock Exchange)

Feb.2006.

Established Land Support Inc. to offer a support service for clients’ seeking to acquire land to open pachinko parlor sites.

Jul.2010.

Acquired 100% of issued shares of Julia Japan Inc. and made it a subsidiary company.

Jan.2012.

Established Zealnet Inc. (currently a consolidated subsidiary) to plan and develop ad systems, etc.

Mar.2014.

Acquired all the shares issued and outstanding of U and U Inc. (currently a consolidated subsidiary) to make it a wholly
owned subsidiary with the aim of offering advertising services in the health food mail order industry, etc.

Oct.2016.

The head office was relocated to Shinjuku-ku, Tokyo (3-20-2, Nishi-Shinjuku, Shinjuku-ku), from Hachioji, Tokyo(Azumacho 9-8, Hachioji).

Nov.2016.

Established Arc Inc. (currently a consolidated subsidiary).

Mar.2021.

Acquired all the shares issued and outstanding of Press A Inc. and made it a subsidiary company (currently a consolidated
subsidiary)6

Stock-related Information

As of March 31, 2024

Principal Shareholders

Stock-related Information

Shareholder

No. of Shares
Held％

Total number of shares issued and outstanding
12,300,000
6,914

Number of shareholders

Share Distribution by Shareholder Type
Financial Institutions,3,600,
0.0%

Individuals,
Others,6,640,161,
54.0%

Financial
Instrument Traders,
303,797,
2.5%

Other JapaneseCompanies,
4,885,500,
39.7%

4,694,000

38.16

Seigo Naito

367,700

2.99

Michiko Umeda

359,400

2.92

Masataka Yamamoto

322,400

2.62

Toshisuzu Motoyama

320,000

2.60

SBI SECURITIES Co.,Ltd.

175,677

1.43

Yoshinari Kamakura

148,600

1.21

Iwao Mitsuoka

135,400

1.10

Yuzuru Kamikawana

117,400

0.95

Venice Sangyo Corp.

116,800

0.95

GA Capital Inc.

ForeignCompanies, etc.,
466,942,3.8%

7

Overview of the Gendai Agency Group

Advertising business

Real estate business

Planning and production of advertising and promotions

Leasing of real estateand office brokerage
Land Support Inc.

Gendai Agency Inc.
Video and Web contents
production

Planning and production ofads, etc.

Julia Japan Inc.

Zealnet Inc.

(Consolidated subsidiary;(Consolidated subsidiary;

Equity ownership 100%)

Equity ownership 100%)Advertisement planning,
media slot sales

Operation of customer
referral support media

U and U Inc.

Press A Inc.

(Consolidated subsidiary;(Consolidated subsidiary;

Equity ownership 100%)

Equity ownership 100%)(Consolidated subsidiary;
Equity ownership 100％)

Other
Research and developmentfor new service and new
business model
Arc Inc.
(Consolidated subsidiary;
Equity ownership 100％)8

Corporate Philosophy and Vision

Basic Philosophy
We engage in activities aimed at supporting the earnings growth and advancement of our client companies throughinnovation and imagination, through which we hope to contribute to the creation of a richer, fuller society.

Group Management Principles
1

We aim to become a company that client companies can rely on as a partner who helps them to realize theircommunication strategies.

2

We will continue to take on the challenge of developing new business models and tools that go beyond the bounds ofthe advertising business.

3

We will always strive to offer optimal services with sincerity and passion.

Code of Conduct1

Legal
Compliance

As an integral member of society in the areas where we do business, we engage in businessactivities that are sound, highly transparent, and in strict compliance with the law.

2

Focus onShareholders

Always with shareholder interest in mind, we pursue management policies aimed at raising theenterprise value of our company, and furthering the interests of our shareholders.

3

Customer
Satisfaction

To gain the satisfaction and trust of our clients, we devote ourselves to constant efforts to devise
new, high-grade services.

4

Respect for
Employees

We value the ambitions and capabilities of every one of our employees, and we strive to provide fairworking conditions and an environment conducive to doing good work.

9

Financial Highlights (Consolidated)(millions of yen)

FY2020Net sales

FY2021

FY2022

FY2023

FY2024

11,115

7,251

7,426

7,545

7,419

Operating income

460

-290

296

401

249

Ordinary income

434

-268

313

420

262

Net income

31

-310

247

369

125

*Adopted the Accounting Standards for Revenue Recognition since March 2022.

Net sales(millions of yen)(millions of yen)

20,000

2,000
1,500

15,00011,115
10,000

1,000
7,251

7,426

7,545

7,419

5,000

0

Ordinary income

500

434

313

420

262

0

FY2020

FY2021

FY2022

FY2023

FY2024-500-268
FY2020

FY2021

FY2022

FY2023

FY202410

Advertising
Business —Business
Model andStrengths

 Our Business Service Overview
 Service Flow Branch Office Locations
 Operation Scheme Strengths and Characteristics

11

Our BusinessWe provide optimal advertising services to support clients’ strategies to attract customers.

施設集客のための広告プラン提案に必要とされる要素
Fusion of digital andanalogOffer services that take advantage of both digital and analog features inorder to attract more customers.

Know-how to attract
customers to various
facilities

For over 25 years since its founding, the company has specialized inoffering support to attract customers to various facilities.

Nationwide businesslocations

Focus on area-based marketing, covering both national and local areas

High mobility

Provide one-stop service covering everything from planning to
implementation by establishing a production and execution system within
the Group.

12Service Overview
In order to provide effective services to attract customers to various facilities, we are working to develop media
utilizing both digital and analog features and enhance our lineup.

FlyersOnline/mobile advertising

DSP advertising using
proprietary big data

Internet media forpachinko parlors

TV/radio, broadcast media

Interactive/VRInternet media related tosports and fitness

Marketing support media
for fitness facilities

Promotional goods, campaigns

Business area analysis,area-based marketing

Production service of
online videos

Media portal/matching site

13Service Flow
By proposing advertising plans that accurately capture client needs, we build a relationship of trust with our clientsand achieve stable transactions.

■Population distribution■Road traffic volume■Age group-based capacity
utilization survey■Customer visit probability
distribution analysis, etc.

■Post-advertising interviews■Next customer attraction
promotion■Advertising plan proposal

InterviewResearch

Project
proposal・Trade area selection
・Area strategy
・Advertising concept design
・Visual development
・Optimal media selection

Develop advertising plansthat meet client needs
Follow-Up

Execution

14

Branch Office Locations
We have established a system that enables us to propose advertising plans to attract customers to various
facilities by utilizing our area-based marketing expertise accumulated nationwide.

Support advertising that attracts customers
based on regional characteristics

Speedy response in any area ofthe country

15

Operation Scheme
We provide a one-stop service for a wide range of advertising genres.

１

Interview
survey２

Project
proposal

Gendai Agency Inc.
Advertisingsales

３ OrderJulia Japan Co., Ltd.
Creative group
Graphic design, online content, video production,
etc.

４

Media

DeliveryMediapublishing

６ Follow-up

Media
operations

Order
C o n s olida ted s u b s idiaries

５ Delivery

Planning

Zealnet I nc.
U and U I nc.
Pr ess A I nc.

16

Strengths and Characteristics
The Gendai Agency Group moves rapidly to provide added value services to support clients’ strategies
to attract customers.
Realize strategy to attract customers through “All in one”

To offer the optimum service to the client
Building communication for making people happy

We propose comprehensive, multi-dimensional plans from one-on-one
to mass media marketing. From identifying needs through exhaustive
interview surveys, to proposal drafting, targeting, implementation, andimpact verification backed by marketing activities and vast volumes ofdata, we assist clients in making their next moves.

Consolidation and Diffusion
Branch offices nationwide:

Grasp latest trends and characteristics,
and gather information on successful
cases by working closely with the local
communities

Planning Development Dept.: Research, analysis, and launch of newservices and products
Creative group:

Team of directors and creators with indepth, wide-ranging knowledge about
media and design

In addition to compiling these diverse information and material as
database in a timely manner, we will offer the latest and optimum
service at all times by building an in-house network system that can beaccessed in real time from anywhere in Japan.

Flexible stance
Along with expertise about the characteristics and effects of existing
services from mass media services to sales promotion services, we areconstantly and proactively introducing new services, while maintaining
the flexibility to customize services to match the needs of a diverse
range of clients and striving to maximize added value.

17

Overviewof the Real
EstateBusiness Overview of the Real Estate Business18

Real Estate Business Overview
Land Support Inc. takes full advantage of its nation-wide network to swiftly connect property owners andpeople seeking properties, providing real estate leasing and brokerage services targeting pachinko halls andgeneral commercial facilities.

19

FutureActivities

 Medium- to Long-Term Business Strategy
 Challenges Ahead
 Performance Indicators and Basic Policyon Profit Distribution

20

Future Management Strategy

Medium- to Long-Term Management Strategies

To ensure the sustained growth of the Group,
we will ceaselessly pursue increased productivity and enhanced added value for our advertising services, and offer
services optimized to match clients’ strategies to attract customers. We will also constantly investigate and identify
new business opportunities and engage in proactive business development.

Advertising
Business
Develop markets infields other thanpachinko parlor
advertising

Pursue sustained growth
for the Group.
Advertising
Business
Expand businessWork to firmly establish
domaindigital media market forcustomer-drawing
commercial facilities

21

Future Management Strategy

Challenges Ahead

The Group will implement the following measures for realizing its management strategies:

 Develop and offer advertising and services that contribute to attracting customers, pursuant to the“Advertising and Promotion Guidelines Ver. 2”
 Create demand by reactivating dormant clients
 Consolidate sales bases and optimize costs with the aim of improving productivity

 Further expand sales for and deepen transactions with tutoring schools, secondhand shop businesses,
public professional sports, etc., in addition to the mainstay fitness facility and housing-related fields

22

Future Management Strategy

Performance Indicators and Basic Policy on Profit Distribution

We will make steady progress toward achievement of the target performance indicators.

FY2022
Operating margin

FY2023

FY2024

4.0％

5.3％

3.4％

EPS

16.90yen

27.85yen

10.17yen

ROE

5.4％

8.3％

3.0％

Total annual dividend(Of which, interim dividend)

7.00yen(3.00yen)

15.00yen(7.00yen)

18.00yen(9.00yen)

Consolidated dividend payout
ratio (%)

41.4％

53.9％

177.0％• We will engage in management that emphasizes productivity, added value, and capital efficiency toachieve an operating margin of 10% or higher and ROE of 10% or higher.
• Based on the basic policy of maximizing shareholder value, we will pay dividends calculated as 6% DOE
or 50% payout ratio, whichever is higher as a general guideline.
• We will emphasize capital efficiency improvement and purchase treasury stock when the timing isappropriate.

23Corporate
Governance,
Sustainability

 Corporate Governance Sustainability Initiatives

24

Corporate Governance
Basic Policy
The Company’s management considers
sustained growth in shareholder value to beits most important responsibility and has acode of conduct that calls for the practice ofcorporate activities constantly focused on
the interest of shareholders while ensuring
management soundness (compliance) andtransparency (disclosure).

Board of Directors
The Company decides matters prescribed in laws and regulations and the Articles of Incorporation and important matters of company management
prescribed in the Board of Directors Regulations at meetings of the Board of Directors held at least once a month. Since the Company has a small
number of full-time directors, routine, frequent communication is possible, and the Company believes the management system makes possible
checks and effective oversight of business execution by means of the election of outside directors. The Company has introduced an executive
officer system for the purpose of segregating decision making and management oversight from business execution and clearly defining
responsibilities. The Board of Executive Officers, consisting of executive officers elected by the Board of Directors, engages in rigorous
deliberations and realizes agile business execution.

Board of Corporate Auditors
The corporate auditors regularly attend meetings of the Board of Directors, actively participate in meetings of the Board of Executive Officers andother important internal meetings, and focus on conducting audits to detect violations of the law or the Articles of Incorporation or matters that
infringe the interest of shareholders. The Board of Corporate Auditors meets periodically to discuss important matters concerning auditing.

25

Sustainability Initiatives
GENDAI AGENCY INC. will endeavor to implement initiatives to promote a sustainable society and economic
development, taking into consideration the environment, social responsibility, and corporate governance.

Environmental

Shift to paper-less

Energy-savings

We will strive to preserve theglobal environment and contributeto the development of the society
through business activities.

We are promoting the shift frompaper media to digital throughdigitalization of various
documents.

We are working on improving officeefficiency by wearing business-casualclothing during summer, and introducing
teleworking and a free-desk workspace.

SocialCustomers

Shareholders and investors- Propose cutting-edge, high-quality services- Community-based business activities[Number of consolidated bases: 23]- Practice management that improves corporate value

We will carry out various activities
so as to develop together with alarge number of stakeholders.

Employees- Support employee capability improvement- Improve the workplace environment- Enhance welfare systems

Local community
We are supporting Clean Fighters Yamanashi, aregional rugby football team as an official sponsor.

Governance
As a sustainable and trusted
company, we will comply with thelaws and regulations and conduct
sound and highly transparent
corporate activities.

Promotion of eco-friendly cars
91.6％ of company-owned
vehicles are eco-friendly.

Target management indexes [medium-term goal value]
Operating margin

10.0％ or more

ROE

10.0％ or more

(Improvement of productivity and added value)(Improvement of capital efficiency)

Dividend policy
Dividend calculation guideline of 6% DOE or 50%
payout ratio, whichever is higher

Internal control system development

Attendance of Outside Directors at Board of Directors Meetings
Attendance of Outside Auditors at Board of Corporate Auditors Meetings- Compliance system – Risk management system- Information control system – Internal auditing– Whistle-blower system[Fiscal year ended March 2024]
Attendance ratio of Board of Directors Meeting: 100％
Board of Corporate Auditors Meeting: 100％26

Investor relations contact:
Corporate Planning and Administration Department
Ph
Email

： +81 3-5358-3334： m-ir-info@gendai-a.co.jp

URL：

http://www.gendai-a.co.jp/
June .202427