The Third Quarter oft h e F i s c a l Ye a r E n d i n g J u n e 30, 2024

Results of Operations

Scala, Inc. M a y 1 5 , 2 0 2 4

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1

3Q Results Summary

P2

3

2

Consolidated Financial
Results

P4

5

3

Results by Business
Segment

P6

32

4

Appendix

P 33

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CONTENTSCOPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

2

3Q Results Summary
3Q Results Summary

Results for the third
quarter of FY6/24■ Revenue was 8,376 million yen (-10.1% YoY) and operating profit was -915 million yen.
• Downsizing of projects due to changes in certain industry situations in the DX Business.
• Including cancellation fee for downsizing the office due to business restructuring andimpairment loss of 582 million yen on assets and goodwill, etc.
■ Revenue was 4,551 million yen (-20.1% YoY) and operating profit was -436 million yen.

DX Business• Impacted by changes in certain industry situations, downsizing of existing projects, and delays in some projects.
• Including impairment loss of 377 million yen on software and goodwill.
■ Revenue was 1,029 million yen (+7.3% YoY) and operating profit was 171 million yen (-17.3% YoY).

HR & Education Business••Continued high demand for hiring new graduates by companies and strong need to exhibit at recruiting events.
Classified FourHands, Inc. as a discontinued operation and completed the transfer of all shares.

■ Revenue was 1,679 million yen (+8.8% YoY) and operating profit was 203 million yen (-4.0% YoY).

EC Business• Overall growth was steady despite changes in the external environment for some titles.

Financial Related Business■ Revenue was 912 million yen (-3.1% YoY) and operating profit was -162 million yen.
• Achieved the highest number of policies in force for the year as a result of upfront investments in
new product development and promotional activities.
• Ranked 5th in Kakaku.com for small-amount short-term pet insurance.
■ Revenue was 191 million yen (+12.6% YoY) and operating profit was -137 million yen.

Incubation Business• Increased demand from local governments and companies, and upfront costs of developing
M&A-related services.

* Revenue and operating profit figures are IFRS-based results for the first half of the fiscal year.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

3

1

3Q Results Summary

P2

3

2

Consolidated Financial
Results

P4

5

3

Results by Business
Segment

P6

32

4

Appendix

P 33

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CONTENTSCOPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

4Consolidated Financial Results
Consolidated Financial Results••

Revenue was 8,376 million yen (-10.1% YoY), and operating profit was - 915 million yen, down YoY due
to the downsizing of projects owing to changes in certain industry situations in the DX Business.
Including cancellation fee for downsizing the office due to business restructuring and impairment loss of
582 million yen on assets and goodwill, etc.

First nine months of FY6/24(millions of yen)

Results
First nine months of
FY6/24

Revenue

8,376
YoY - 941 (-10.1%)

First nine months of
FY6/23

DX

4,551

5,699

- 1,147- 20.1%

H R & Educati on

1,029

959

+ 70

+ 7.3%

EC

1,679

1,544

+ 135

+ 8.8%

F i nanci al R el ated

912

941

- 29

- 3.1%

Incubati on

191

170

+ 21

+ 12.6%

Results
First nine months of
FY6/24

Operating Profit- 915
YoY - 1,285（ー）YoY changeFirst nine months of
FY6/23

YoY change

- 436

385

- 822

ー

H R & Educati on

171

207

- 35

- 17.3%

EC

203

212

-8

- 4.0%

F i nanci al R el ated

- 162

- 121

- 40

ー

Incubati on

- 137

- 172

+ 35

ー

DX

*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenues and operating profit for each segment are figures after allocation of corporate expenses.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

51

3Q Results Summary

P2

3

2

Consolidated Financial
Results

P4

5

3

Results by Business
Segment

P6

32

4

Appendix

P 33

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CONTENTSCOPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

6

Results by Business Segment: DX BusinessResults by Business Segment
DX Business

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7

DX BusinessResults by Business Segment: DX Business•

Revenue was 4,551 million yen (-20.1% YoY), and operating profit was -436 million yen, down YoY due to theimpact of changes in certain industry situations, downsizing of existing projects, and delays in some projects.

•

Operating profit includes an impairment loss of 377 million yen on software and goodwill.

First nine months of FY6/24(millions of yen)

Results

Revenue

4,551
YoY - 1,147 (-20.1%)

First nine months of
FY6/24

YoY- 822（ー）YoY change

2,508

2,765

- 257

- 9.3%

EGG

986

1,801

- 815

- 45.3%

Other s

1,056

1,131

- 74

- 6.6%Sc al a C om m uni c ati ons

Results

Operating Profit- 436First nine months of
FY6/23First nine months of
FY6/24First nine months of
FY6/23

YoY change

- 121

183

- 304

ー

EGG

79

209

- 130

- 62.2%Other s

- 394

-8

- 386

ー

Sc al a C om m uni c ati ons*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenues and operating profit for each segment are figures after allocation of corporate expenses.
*Revenues and operating profit figures for each company are non-consolidated.
*Figures for Others are the sum of the figures for companies other than the listed companies and consolidation adjustments.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

8

Scala Communications
Results by Business Segment: DX Business•Although sales from new projects were only partially recognized in the quarter, orders are progressing, and offsetting theimpact of project reductions in one industry.

•

Operating profit decreased compared with the same period of the previous fiscal year due to upfront expenses for new
business development.

•

We aim for recovery in the next fiscal year by continuing to work on business restructuring.
Quarterly Financial Results ( m i l l i o n s o f y e n )Revenue
Operating Profit( Oper at i ng pr of i t mar gi n)

1,025

980

918

925

807

759

774

19（2.6%）1Q

52（5.2%）
2Q

3Q
FY6/23COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

111（11.3%）25（2.7%）4Q

10（1.1%）1Q- 63（-8.3%）

2Q- 67（-8.4%）

3Q

FY6/249

To p i c o f S c a l a C o m m u n i c a t i o n s
Results by Business Segment: DX Business•

Launched a demonstration experiment of remote death diagnosis using U-Medical Support.
Overview of the demonstration experiment of remote death diagnosis at NOSAI Aichi•

Members
Scala Communications, desamis, and the Aichi Agricultural Mutual Aid
Association (NOSAI Aichi)•

Issues facing veterinarians
Veterinarians are sometimes required to spend a day traveling to remote areas to diagnose cattle
deaths on site, causing a lack of time for the medical services that they should be focusing on.
Despite attempts to use SNS tools such as LINE to diagnose deaths remotely using images, thelocation information of the image is deleted when the image is sent, making accurate remote diagnosis
of deaths difficult.

•

Overview of the demonstration experiment
Aiming to digitalize new processes in the procedure of
livestock death and disuse mutual aid insurance.

Conventional

NOSAI staff (veterinarian and clerical staff) must be present on site for confirmation
work related to the procedures for livestock death and disuse mutual aid insurance.

In the future

Farmers complete this process online by submitting GPS tags or images of
their cattle with specific markings.

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10

EGG
Results by Business Segment: DX Business•

Revenue declined due to the termination and reduction of the Tourism Agency's measures to stimulate
tourism demand.

•

Operating profit margin progressed as planned for the full year due to successful cost reduction measures.
Quarterly Financial Results

Revenue
Operating Profit(millions of yen)

( Oper at i ng pr of i t mar gi n)

701
564

535

296

274
68（12.8%）

1Q

83（11.9%）2Q
FY6/23COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

57（10.2%）
3Q

360

329
38（10.8%）5（1.7%）4Q- 56（-20.7%）

1Q

2Q

35（10.7%）
3Q

FY6/2411

To p i c s o f E G GResults by Business Segment: DX Business•

Website redesigned on February 29, 2024.

•

Redefined four areas of future focus.

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12

To p i c s o f E G GResults by Business Segment: DX Business

Healthcare Project•Three projects adopted for the Digital Garden City National Fund started deliveries.

•

Started horizontal development of "Tottori Health Plus," which received an order in FY6/2023.
Digital Garden City National Fund adopted projects
With the function of My Number
Card public personal authentication

Health promotion support application "Tottori Health Plus"

For municipal frailty prevention project

Frailty Check
Integration System

Release in May 2024
Supporting future healthcare basedon your health checkup dataFree

Tottori Health Plus was jointly developed by the Tottori National
Health Insurance Organizations and Tottori Prefecture to support
health promotion in Tottori Prefecture

It provide a wide range of support for yourhealthcare, including checking past healthcheckup data, predicting future health risks,and supporting lifestyle improvements.

End of FY6/23

3Q of FY6/24

End of FY6/24

0

3
Start delivery

6

Total number of clients*Number of orders received

Average unit price*One-time sales + monthly sales in the current period /number of months sales in the current period

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

0 yen(estimated)•

Insurance Organization and Tottori Prefecture to support health(見込み)

23.45 million yen

Tottori Health Plus was jointly developed by the Tottori National Healthpromotion in Tottori Prefecture.

•

EGG contracted to provide development and maintenance services in
FY6/2023.

•

Scheduled to be released from May 2024.

•

Aiming for horizontal expansion of this service to other municipalities.

13

To p i c s o f E G GResults by Business Segment: DX Business

National Policy Project•

Received an order for a business management system for the "Hokuriku Support Discount Campaign"and started providing the system.
Overview of business management system for Hokuriku Support Discount Campaign•

Providing a common management system and platform used by travel
agencies and administrative offices.

•

Business registration, secretariat review, subsidy application through My Page,

Let's energize Hokuriku region through travel!
Fukui

Ishikawa

ToyamaNiigataand subsidy transfer can all be registered in one place.
•

Launched in March 2024 in association with the reconstruction assistanceproject.

•

Achieved rapid start-up and advanced security measures.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

14

Results by Business Segment: HR & Education BusinessResults by Business Segment
HR & Education Business

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15

HR & Education BusinessResults by Business Segment: HR & Education Business•R e v e n u e c o n t i n u e d t o g r o w t o 1 , 0 2 9 m i l l i o n y e n ( + 7 . 3 % Yo Y ) d u e t o t h e s t r o n g d e m a n d f r o m c o m p a n i e s t oexhibit at recruiting events in response to the continued high demand for hiring new graduates.

•

O p e r a t i n g p r o f i t w a s 1 7 1 m i l l i o n y e n (- 1 7 . 3 % Yo Y ) d u e t o u p f r o n t i n v e s t m e n t s a s s o c i a t e d w i t h t h eestablishment of new businesses and cost increases in some businesses•

Classified FourHands, Inc. as a discontinued operation and completed the transfer of all shares.

•

E s t a b l i s h e d G e a R E m a k e , I n c . a s a m i d - c a r e e r r e c r u i t m e n t s u p p o r t c o m p a n y.

First nine months of FY6/24

Revenue

1,029

YoY + 70 (+7.3%)

Operating Profit

171

YoY - 35 (-17.3%)(millions of yen)

Results
First nine months of
FY6/24First nine months of
FY6/23

YoY change

Athlete Planning

777

741

+ 36

+ 5.0%

Others

251

218

+ 33

+ 15.2%

Results
First nine months of
FY6/24First nine months of
FY6/23

YoY change

Athlete Planning

225

233

-7

- 3.3%

Others

- 54

- 25

- 28

ー

*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenues and operating profit for each segment are figures after allocation of corporate expenses.
*Revenues and operating profit figures for each company are non-consolidated.
*Figures for Others are the sum of the figures for companies other than the listed companies and consolidation adjustments.
*Events: Joint information sessions for new graduates and matching events with companies

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

16

Athlete Planning
Results by Business Segment: HR & Education Business•

Demand for exhibiting at in-person events is high among both new and existing customers, and both sales volume and unit price are robust.

•

Athletic student membership increased in Tokyo, Kansai, and Tokai regions, compared to the same period of the previous year.

•

Female student membership declined year on year, but as planned for this fiscal year. Continue to focus on membership acquisition.
Event business KPIs

Recruiting business KPIs

Results
Number of events (times)
Athletic Students

74(Breakdown) In-person / Online（61 / 13）

Number of companies
exhibiting at the event

1266(Breakdown) In-person / Online（1130 / 136）

Results
Number of events (times)
Female Students

22(Breakdown) In-person / Online（19 / 3）

Number of companies
exhibiting at the event

158(Breakdown) In-person / Online（126 / 32）

YoY change

Total number of members+2（+ 4 / - 2）

+ 37

Athletic Students（+ 51 / - 14）

Results

YoY change

Tokyo

9,000

±0

Kansai

3,950

+ 50

Tokai

1,017

+ 37

Total

13,967+ 87

Results

YoY change

YoY change+6
Total number of members（+ 3 / + 3 ）+9（+ 11 / - 2）

Female Students

7,250-4,550*Events: Joint information sessions for new graduates and matching events with companies

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17

Results by Business Segment: EC BusinessResults by Business Segment
EC Business

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18

EC BusinessResults by Business Segment: EC Business•

Revenue was 1,679 million yen (+8.8%), up steadily from the same period of the previous fiscal year.

•

Operating profit was 203 million yen (-4.0% YoY), down from the same period of the previous fiscal year due to changes inthe external environment.

First nine months of FY6/24(millions of yen)

Revenue

Results

1,679
YoY + 135 (+8.8%)First nine months of
FY6/24

Scala PLAYce

Operating Profit

1,679

1,544

Results

203
YoY - 8 (-4.0%)

First nine months of
FY6/23First nine months of
FY6/24

Scala PLAYce

203

First nine months of
FY6/23212

YoY change+ 135+ 8.8%

YoY change-8- 4.0%*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenues and operating profit for each segment are figures after allocation of corporate expenses.

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19

Scala PLAYce
Results by Business Segment: EC Business•

Revenue increased YoY when compared to the same quarter of the previous year.

•

Cost of sales increased due to a change in the revenue mix of key titles.

•

SG&A expenses increased due to promotional activities related to the website redesign.
Quarterly Financial Results

Revenue
Operating Profit(millions of yen)

( Oper at i ng pr of i t mar gi n)

594

550

1Q

70

（12.9%）

2Q

75（14.8%）

3Q
FY6/23COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

556

508

485

65（13.5%）

582

104（17.5%）

4Q

84（14.6%）

1Q

540

63（11.3%）

2Q

55（10.3%）

3Q

FY6/2420

Scala PLAYce
Results by Business Segment: EC Business•

The boom in Title A that started in the previous fiscal year slowed down, and revenue is returning to thescale of the previous fiscal year.

•

Other titles performed well, and overall revenue increased YoY.
Sales of Key Titles

Title A
Title B
Title C
Other Titles

192

147

120

89

137

141

146

156

62

64

62

68

238

277

282

292

285

3Q

4Q

1Q

2Q

3Q

138
108
103
86
74

85

95

112

96

68

75

93
113
59

184

182

209

1Q

2Q

3Q

4Q

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

113

63

64

76

204

FY6/22

141
124

104

262

1Q

(millions of yen)292

2Q
FY6/23

4Q

FY6/2421

Scala PLAYce
Results by Business Segment: EC Business•Business KPIs continue to progress.

•

Continue to refine the details of the service to further enhance the customer experience value.
Business KPIs

Topics•Results

EC Site(Yuyu-Tei)YoY change

247,987＋ 18,017

Inventory (Thousands of yen)

334,572＋ 62,426

Number of page views in March(thousands)

10,095＋ 2,146

Number of unique users in March(thousands)

643

＋ 141

Number of members

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

Refine the details of the service to improve the customer experience value.

InflowContinuous improvement of SEO to increase site inflows.

Membership

Continuous site redesign, including UI/UX improvements,
to increase the number of loyal members.

Inventory

Strengthening purchases to ensure a solid inventory withhigh coverage.

Inventory Turnover

Introduction of image recognition AI to improve delivery
efficiency and reduce costs (test operation has started).

22

Results by Business Segment: Financial Related BusinessResults by Business Segment
Financial Related Business

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23

Financial Related BusinessResults by Business Segment: Financial Related Business•

Revenue was 912 million yen (-3.1% YoY) at the same level as the same period of theprevious fiscal year.

•

Operating profit was -162 million yen, down from the same period of the previous fiscal year,
due to upfront investments in new product development and promotional activities.

First nine months of FY6/24(millions of yen)

Revenue912
YoY-29 (-3.1%)

Results
First nine months of
FY6/24

Nihon Pet Small-amount Shortterm Insurance

Operating Profit- 162
YoY - 40 (-)

First nine months of
FY6/23912

941

Results
First nine months of
FY6/24

Nihon Pet Small-amount Shortterm Insurance- 162

First nine months of
FY6/23- 121

YoY change- 29- 3.1%

YoY change- 40ー*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenue and operating profit for each segment are figures after allocation of corporate expenses.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

24

Nihon Pet Small-amount Short-term Insurance
Results by Business Segment: Financial Related Business•

Increased the number of policies in force due to the launch of new products, Insurance for Dogs
and Cats.

•

Ranked 5th in Kakaku.com for small-amount short-term pet insurance.
Number of policies in force

30,00028,08828,08728,08727,50028,000

Listing situation on Kakaku.com(Applications for FY2023)

27,90027,781

27,70327,727

27,71327,73927,781

Insurance for Dogs and Cats

27,90927,900Monthly premium

27,86027,781

25,00027,783

Nihon Pet Small-amount Short-term Insurance

27,70327,727

27,71327,73927,78327,781Compensation ratioyen
Conditions: Toy Poodle / 0 years old / Light Plan 70%.

22,500Coverage

27,50020,000

4月

April
4⽉

5月

5⽉

May

6⽉

June

6月

July
7⽉

7月

8⽉ September
9⽉

August

8月

9月

10月

11月

Hospital visit

Limit (per day)

10,000 yen※1

Hospitalization

Limit (per day)

20,000 yen※1Surgery

Limit (per day)

100,000 yen

12月

January 2⽉
OctoberNovember 12⽉
December 1⽉
February3⽉
March
10⽉
11⽉

Achieved the highest number of policies in-force forthe year due to the sale of new products.

※1※1: If the annual coverage limit, the number of days limit, or the number of times limit isreached for any coverage, the policy will expire and will not be continued for the next andsubsequent years.

Kakaku.com website

https://hoken.kakaku.com/pet/?cid=ins_pt_ad_gl_s_823_777&gclid=CjwKCAjw_e2wBhAEEiwAyFFFo_z0KE
KbieP5tEu-VWU7GpNYT5idIr7s8mt2NIa1XWDfhvfJdnkvuRoCfVkQAvD_BwE*Ranked 14th in popularity of pet insurance, including non-life insurance (as of May 10, 2024).

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

25

Nihon Pet Small-amount Short-term Insurance
Results by Business Segment: Financial Related Business•

New products "Insurance for Dogs and Cats Next/Light/Mini" started sales on February 1, 2024.

•

Increasing the competitiveness of prices and coverage, simplifying the claims process, andattracting and acquiring a new customer base.

•

Shifting to a profitable structure by expanding sales of new products with higher profit margins.
Application records

One of thelowestpremiums
in the industry

Covering
dental andpatella

Deductible
coverage rider
can be added.

Abundant
discount plans
for lower
prices

Veterinary
consultation
serviceanytimeEasy insurance
claims with theapp

Deductible
coverage rider

Pet liability rider

Light

◯

◯

Cat

Next

◯

Chihuahua

Light

Cat

Next

Cat

Light

◯

Toy Poodle

Next

◯

Toy Poodle

Light

Breed of dog

Applied plan

Chihuahua

Mini

Toy Poodle

Mini

Cat

Mini

Mixed

Compensation ratio◯

Some of the applications are listed.

Press release details

https://www.nihonpet.co.jp

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

26

Nihon Pet Small-amount Short-term Insurance
Results by Business Segment: Financial Related Business•

Since new products have lower loss ratios than former products, increasing the ratio of new
products in the number of policies in force will lead to improved profit margins.

•

The transfer ratio in March was 9%, and the target is to increase this ratio to 20%.
New products in the number of policies in force (Applications for Jan-Mar 2024)

28,000422

1,161

Ratio of transfers to new products in Feb-Mar

2,000

184

9%

211
24,00027,90927,43826,927

1,821

1,000

1,539
20,0000February

January■ Former Products

March■ New Products

Gradually increasing proportion of new products.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

February

March■ Number of contract renewals for former products■ Number of transfers to new products

Transfer Ratio 9% → Aim for 20%

27

Results by Business Segment: Incubation BusinessResults by Business Segment
Incubation Business

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

28

Incubation BusinessResults by Business Segment: Incubation Business•

Revenue increased to 191 million yen (+12.6% YoY) due to increased demand from local governments andcorporate customers.

•

Operating profit was -137 million yen, the same level as the previous year, due to upfront expenses for M&Arelated and other service development.

First nine months of FY6/24(millions of yen)

Results

Revenue

191
YoY + 21 (+ 12.6%)

First nine months of
FY6/24

YoY+ 35 （ー）YoY change

SOC IALX

27

11

+ 15

+ 137.0%

Sc al a Par tner s

33

34

-1

- 3.1%

Other 3 com pani es

131

124

+6

+ 5.5%

Results

Operating Profit- 137

First nine months of
FY6/23First nine months of
FY6/24First nine months of
FY6/23

YoY change

45

26

+ 19

+ 76.0%Sc al a Par tner s

- 20

- 29

+9

- 32.5%

Other 3 com pani es

- 163

- 169

+5

- 3.4%SOC IALX*Revenue and operating profit figures are IFRS-based results for the nine months ended March 31, 2024.
*Revenue and operating profit for each segment are figures after allocation of corporate expenses.
*Revenue and operating profit figures for each company are non-consolidated.
*Figures for Others are the sum of the figures for companies other than the listed companies and consolidation adjustments.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

29

SOCIALX
Results by Business Segment: Incubation Business•

15 startups selected as finalists for the first phase of the Public-Private Co-Creation Acceleration
Program in Tokyo.

•

Calling for startups to participate in the second phase of the Public-Private Co-Creation
Acceleration Program in Tokyo.
SOCIALX Acceleration Phase 2

SOCIALX Acceleration Phase 1•

Selected 15 startups as finalists and started providing
support.

•

Providing support that makes the most of our knowledge of
public-private co-creation and expertise in solving social
issues, which we have developed in the past through Gyaku
Propo, etc.

Press release details

https://gyaku-propo.com/news/01630c39-b883-4d57-9866-a2f7d9be0a7c

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

•

SOCIALX Acceleration will be expanded to businesscompanies and corporate venture capital firms in the future.
Several local governments have already shown a high levelof interest.

Press release details

https://prtimes.jp/main/html/rd/p/000000056.000088249.html

30

Scala Partners
Results by Business Segment: Incubation Business•

Signed a collaboration agreement for the promotion of university sports with the Bureau of Physical
Education and Sports of the University of Tsukuba.

•

Signed a collaboration agreement on the creation, operation,and development of a long-term sustainable fan community
involving all stakeholders, including domestic andinternational students, alumni, Tsukuba City, privatecompanies, and local residents, for the purpose of humanresource development and promotion of university sports.

•

Strengthening the relationship with the University of Tsukuba
and various stakeholders stronger and more sustainable byleveraging our knowledge of solving numerous social issues,
such as our "Fanique" web3 fan club service, which utilizes
our NFT membership.

Press release details

https://scalagrp.jp/news/2024/03-fanique-tsukuba/

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

31

Global BusinessResults by Business Segment: Incubation Business•

Signed a capital and business alliance with BINAR Academy, an EdTech company in Indonesia.

•

Planning to launch co-creation projects with BINAR following
From Early Childhood Education to
Career Development Support

the introduction of TEJA VENTURES, which led BINAR's
previous fundraising, and the first capital and business

Proffecional Development andDigital Talent Training

alliance in the education area.
•

Through this alliance, we aim to develop talent globally withthe skills and mindset needed to drive and enable digital

Areas of Potential Co-CreationJapantransformation (DX).

Global(Indonesia)

Press release details

Areas of Potential Co-Creation

https://scalagrp.jp/news/2024/03-binar/

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

32

1

3Q Results Summary

P2

3

2

Consolidated Financial
Results

P4

5

3

Results by Business
Segment

P6

32

4

Appendix

P 33

35

CONTENTSCOPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

33

Company Overview
Appendix: Company Overview

Name

Scala, Inc. (Tokyo Stock Exchange, Prime Market, Securities code：4845)

Headquarters

32F Shibuya Hikarie, 2-21-1, Shibuya, Shibuya-ku, Tokyo

Established

December 11, 1991

Business

DX Business, HR & Education Business, EC Business, Financial Related Business, Incubation Business

Employees

578 (As of March 31, 2024, consolidated)

Average age

35.5

CapitalFiscal year end

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

1,791 million

June 30

34

Business segments
Appendix: Business Overview

DX Business

HR & Education
Business
EC Business
Financial Related Business

Incubation Business

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.

Scala Communications, Inc.

Provision of SaaS/ASP services, offshore development activities

Scala Service, Inc.

Provision of SaaS/ASP services, call center service

Retool, Inc.

Planning, development and sale of administrative tools using the cloud

EGG CO., LTD.

System development, system maintenance and network establishment

Leoconnect, Inc.

Customer support (call center operation and other support) consulting

Athlete Planning, Inc

Support for recruiting activities (fresh graduate, mid-career), etc.

Sports Stories, Inc

Physical education, sports lessons, etc.

Broncos20 Co., Ltd.

Management of basketball club teamScala PLAYce, Inc.

Operation of e-commerce site for buying and selling trading cards for competition games

Nihon Pet Small-amount Short-term Insurance Company

Provision of low-premium, short-term insurance plans

Scala, Inc.

Investment business

Scala Partners, Inc.

Innovation, incubation, investments

SCL Capital LLC

Management of investment fund

SCSV-1 Investment Limited Partnership

Investment fund

SOCIALX, INC.

Planning and operating a public-private co-creation platform ‘Gyaku Propo’

35

The information, forecasts, etc. available in this report Scala’s judgment as of the preparation date thereof and do not guar antee the accuracy of these information. Please
understand that actual results may differ from the forecasts due to changes in various factors.
This report was prepared carefully to avoid errors or omissions, but we cannot wholly promise the accuracy or completeness of the information within this report.
This report is not audited by an audit corporation.

COPYRIGHT SCALA, INC. ALL RIGHTS RESERVED.