Stock code: 2469
Tokyo Stock Exchange Standard Market

Hibino GroupNew Mid-term Business Plan

Vision 2025

May 13, 2022
Updated June 27, 2024

Hibino Corporation
https://www.hibino.co.jp/

Philosophy System of the Hibino Group
Philosophy

Purpose is the corporate mission and raisond'être that the Hibino Group should fulfill topeople all over the world and the society. Allof the corporate activities of the Hibino Groupare for achieving the Purpose.

Value

VisionPhilosophy is our fundamental approach tocorporate management which defines whatmakes us Hibino. This is nothing but the spiritof foundation which the Hibino Group should
continue to embrace perpetually.

PurposeThe Hibino Group has established the “Philosophy System of the Hibino Group,” which clearly states the views,
direction we should follow, and values that serve as the basis for all corporate activities

Vision describes what the Hibino Group is
striving for and the management goals that
we aim to achieve through pursuing the
Purpose.

This is the Hibino gene that has been passed
down from generation to generation since theCompany was established in 1964. This value
is shared by all employees working for the
Hibino Group and is a mental attitude that wehold dear.

Creation & Innovation
Creating Emotions Around the World
with Sounds and Visuals

For a Global Hibino
The Hibino Group engages in business in Asia, North America and Europe,leveraging its unique business model that combines sales, installation andservices focused on sound and visual images, and aims to be one of theworld's top AV & IT groups.

Hibino's 10 Creeds

Code of Conduct of
the Hibino Group1

Philosophy System of the Hibino Group

Philosophy, Purpose, Vision
Philosophy

Creation & Innovation
PurposeCreating Emotions Around the World
with Soundsz and Visuals
VisionFor a Global Hibino
The Hibino Group engages in business in Asia, North America and Europe, leveraging its uniquebusiness model that combines sales, installation and services focused on sound and visual
images, and aims to be one of the world’s top AV & IT groups.

Priority Area

A step ahead of the times in thefields of acoustics, images, music,
and live events
Products & Highest technology

Creating value through the fusion ofTechnology&(digital)Human(analog)
2

Philosophy System of the Hibino Group

Value

Quality is our top priority.
Safety First.
Zero accidents on-site andzero traffic accidents.

Quality

Top TrustBe the Most-Trusted Group,
appreciated by our clients.

02

07
One of a Kind

03

through bottom-up solutions.

Bottom-up

who are committed tohigh standards.

06

SafetyOn-site Management
Working Professionals

01

Hibino’s
10 Creeds08
Number One

04

09

Professionals

Innovation

Always be the Forerunner throughpioneering products and services.

Be the One and Only
Hibino Group pursuing things that
only we can create.

05

10

Pioneer

HealthTake on new challenges forlarge-scale business, aiming
to be No. 1 in the World.

Continuously evolving throughInnovation.

Health management becausea healthy mind and body are the mostimportant.

3

Review of the Previous
Mid-term Business Plan “Vision 2020”
Quantitative Plan Results
Although quantitative targets were not achieved due to the residual impact of COVID-19, record sales were attained due tobusiness expansion through M&As and the significant capture of special demand from the Tokyo Olympics and Paralympics.

30,523⚫ The Mid-term business plan was revised due tomajor changes in the business environment due tothe impact of COVID-19. The target period was
extended by one year, the final year was changed to
the fiscal year ended March 2022, and thequantitative plan was revised downward.

7,883⚫ Significant capture of special demand from theTokyo Olympics and Paralympics

42,42640,825
M&A contribution to net sales

33,91029,732

Ordinary profit margin
Operating profit margin

5.8%
3.6%

8,944

925
5.1%
4.2%

9,983

4.5%

3.5%
3.1%

3.2%
-8.6%

⚫ Acquired seven companies as consolidated
subsidiaries through M&A, contributing approx. ¥10billion in sales⚫ Overseas sales ratio increased to 12.3%, reachingsome target results in overseas expansion-13.3%(Millions of yen)

Mid-term Business Plan “Vision 2020”

4-yearYear ended Year ended Year ended Year ended Year ended growth rate
March 2018 March 2019 March 2020 March 2021 March 2022

May 2021
Revisedquantitativeplan

quantitativeplan

Quantitativeplan
comparison

50,00045,000(5.7%)

15.0%

15.0%

29,732

33,91040,82530,52342,426

1.5%

2.6%

10.0%

11.8%

12.3%

Operating profit

1,073

1,430

1,267

(4,073)

1,339+24.9%

2,800

1,500

(10.7%)

Ordinary profit

1,713

1,723

1,428

(2,636)

1,921+12.2%

2,700

1,500

+28.1%Net sales
Overseas sales ratio+42.7%

May 2018
Original

4

Review of the Previous Mid-term Business Plan “Vision 2020”

Initiatives Aligned with Key Management Issues⚫ Four years of progress in completing the Tokyo Olympics and Paralympics, strengthening the architectural acoustics field, andexpanding into Asia
⚫ “Wherever people gather, there is Hibino” was threatened by the COVID-19 pandemic, and so further strengthening anddiversification of the revenue base is an urgent need

Achievement

Key management issues

Capture special
demand from Tokyo
Olympics/Paralympics

Maintain industry
leadership andincrease market share

Issues remaining⚫ Delivery of equipment to competition facilities (permanentand temporary), etc.
⚫ Provided large-screen video and audio services for Tokyo
Olympics/Paralympics-related events and international
sporting events⚫ ¥5.3 billion contribution to net sales through consolidationof the subsidiaries TECHNO HOUSE INC. (import andsales of professional video equipment), NIPPONENVIRONMENT AMENITY CO., LTD. (architectural
acoustic construction, etc.), Sigma A&V and Rental
Corporation (large-scale video services for MICE)⚫ Improved the Group management system by consolidating
the offices of the three business divisions and six
subsidiaries and by changing and establishingorganizations within the Group.

⚫ Growth in demand in the sports market

Assessment

Excellent⚫ Creating synergies through cross-Groupbusiness operations⚫ Advancements in business operations
through the use of digital technology

Good⚫ Restructuring the earnings base in the withCOVID-19 and post-COVID-19 era

Enhancemanufacturingbusinesses⚫ Market launch of high value-added products using
soundproofing, vibration isolation, acoustics, andelectromagnetic shielding technologies⚫ Review of manufacturing strategy

Boost global
expansion⚫ ¥4.6 billion contribution to net sales and increase inoverseas sales ratio to 12.3% through consolidation of thesubsidiaries Sama Sound Group of South Korea (importand sales of professional audio equipment) and TLS
PRODUCTIONS, INC. of the United States (lighting andsound services)⚫ Restructuring of North American andEuropean strategies(North America did not turn profitable, and no
progress in Europe due to COVID-19
pandemic despite the establishment of a
subsidiary)

Develop new
businesses⚫ Started operation and monetization of Hibino VFX Studio,
a virtual production studio. Obtained a leading market
position.

⚫ Expanding the size of the virtual production
market⚫ Creating new businesses

Fair
Good

Good
5

New Mid-term Business Plan “Vision 2025”
Awareness of the Business Environment

Business
environment

Society 5.0

The ideal international society in 2030

The ideal Japanese society in 2050

Climate change, intensifying disasters

Declining working-age population, increasing
competition for human resources

Growing awareness of sustainability

Increased need for rebuilding due to aging
infrastructure and buildings

Japaneseenvironment

SDGs

Accelerating development of digitaltechnology
Increased geopolitical risks(Ukraine situation)

Diversification of lifestyles and values

Development of emerging economies

Commitment to health, safety, and security

Holding of Expo 2025
Osaka, Kansai, Japan

Increased investment
by media-relatedcompanies

Urban redevelopment

Accelerated by
COVID-19
pandemic

Global trends

The business environment surrounding our Group is becoming increasingly uncertain, complex, and diverse.
Meanwhile, concrete business opportunities are being created.

Expansion of thevirtual production
market6

New Mid-term Business Plan “Vision 2025”

Positioning of the New Mid-term Business Plan “Vision 2025”
This four-year plan, which lays the foundation for sustainable growth, marks a milestone to realizing“For a Global Hibino” and the final step toward the 60th anniversary of the company’s founding.
The final year is set for the year ending March 2026, when the Expo 2025 is scheduled to be held.
60th anniversaryof founding

Year ended
March 2018Year ended
March 2022

Group Vision

Mid-termbusiness plan
Final year
net sales/
ordinary profit

Holding of Expo 2025

Year ending
March 2026

For a Global Hibino

1st Step

2nd Step

3rd Step

Vision 300

Vision 2020

Vision 2025

ResultResultTarget¥29.7 billion/¥1.71 billion¥42.4 billion/¥1.92 billion¥75.0 billion/¥4.5 billion 75,000

Achieving mid- andlong-term targets

Net sales: ¥100 billion
Overseas sales ratio: 30% or higher
17,50042,426

12,50029,732
7,500

Net sales
Ordinary profit

4,500
1,713

1,921

To the future

2,500-2,500⚫ Aiming to be the world’s AV &IT leader⚫ Putting Hibino’s 10 Creeds
into practice⚫ Achieving sustainable
management
7New Mid-term Business Plan “Vision 2025”

Financial Objectives⚫ Aiming for net sales of ¥75 billion and overseas sales ratio of 30% or higher⚫ Aiming to increase profit margin each year and achieve a 6% ordinary profit margin⚫ Aiming to break the record for highest profit (Year ended March 2016: Operating profit ¥4.2 billion/Ordinary profit ¥4.4 billion)(Millions of yen)

Mid-term Business Plan “Vision 2025”
Year ended
March 2022

Year ending March
2023

Year ending March
2024

Year ending March
2025

Year ending
March 2026

(Plan)(Results)(Plan)(Results)(Plan)(Forecast)

42,42643,00041,92250,00050,49162,000

Sales and Installation
Business

17,912

20,75020,12423,00025,123

Architectural Acoustics
Installation Business

9,669

9,100

7,963

9,700

14,844

13,15013,835-0Overseas sales ratio

12.3%

Operating profit(Plan)

Comparison between
year ended March 2022
and final year of plan

56,00075,000+32,573 (+76.8%)

27,00028,40032,000+14,087 (+78.6%)

9,267

10,50010,70011,500+1,830 (+18.9%)

14,80016,09916,50016,90019,500+4,655 (+31.4%)

0

2,500

0

8,000

-

12,000+12,000 (－%)

15.0%

15.7%

18.0%

14.6%

24.0%

24.0%

30.0%

+17.7%

1,339

1,050

1,229

2,000

2,814

3,200

3,200

4,500

+3,160 (+235.8%)

3.2%

2.4%

2.9%

4.0%

5.6%

5.2%

5.7%

6.0%

+2.8%

1,921

1,200

1,400

2,000

2,951

3,200

3,000

4,500

+2,578 (+134.2%)

4.5%

2.8%

3.3%

4.0%

5.8%

5.2%

5.4%

6.0%

+1.5%

Profit attributable toowners of parent

1,074

750

607

1,200

1,627

1,900

1,750

2,700

+1,625 (+151.3%)

Equity ratio

27.9%

-

24.7%

-

25.5%

-

(Results)

Net sales

Concert and Event
Services BusinessNew businesses

Operating profit margin

Ordinary profit
Ordinary profit margin

30% or more,- target of 40%

8

New Mid-term Business Plan “Vision 2025”

Overall Structure of New Mid-term Business Plan “Vision 2025”
Net sales

Mid-term business plan
financial objectives

Ordinary profit
Equity ratio¥75.0 billion and overseas sales ratio of 30% or more
¥4.5 billion (record-high profit) and ordinary profit margin of 6%
30% or more, target of 40%

Mid-term management
policy1. Establish a management structure enabling sustainable growth

Mid-term growthstrategies(Basic management
strategies)⚫ Take on challenges in new areas aiming for advancement of honeycomb-typemanagement⚫ Tap innovation to create new businesses and reform existing businesses

2. Establish sound management

Transforming into a high-profit structure
1. Improve profitability of all sectors
2. Boost the Group’s overall strength
3. Capture special demand projects

Key management
issues

Implementing DX
1. Strengthen competitiveness through business DX
2. Improve productivity through business process DX

Creating future businesses
1. Launch and build new businesses
2. Boost global expansion

Implementing sustainability management
1. Implement SDG initiatives

9

New Mid-term Business Plan “Vision 2025”

Two Growth Strategies
Honeycomb-Type Management

Innovation

An aggregation of one-of-a-kind and number one

Continuing to create world and industry firsts

By having numerous revenue-generating businesses within the Group, we
will build a business structure that is resilient to changes in the external
environment. We will also use M&A in our efforts to take on challenges in
new areas, expand our business domain, and form an aggregate ofbusinesses with number one technologies and one-of-a-kind businessmodels, while creating synergies through inter-business collaboration.

To ensure that innovation permeates all employees and becomes aneveryday activity, we have established a system for proposing new ideas.
We will create new businesses and innovate existing businesses while
actively engaging in initiatives that include utilizing collaboration withoutside companies, research institutions, and government agencies (openinnovation).

NumberOne
One ofa KindOne ofa KindNumberOne

HibinoIntersoundCorporation

Sama
Sound Inc.

NumberOne

Sales andInstallation
BusinesshibinochromatekDiv.

One ofa KindHibinoGroup

HibinoAsia Pacific
LimitedNumberOne

Concert andEvent Services
Business

Eightythree
Corporation

NumberOnehibinovisualDiv.

Sigma A&V
and Rental
Corporation

HibinoEntertainment
Corporation

One ofa KindSANOH
CORPORATION
Nihon
Onkyo
One ofEngineeringa KindNOE Asia
Architectural Co., Ltd.
Pacific
Acoustics
Company
Installation
LimitedNIPPONBusinesshibino
sound
Div.

Sama
CDS Inc.

One ofa KindNumberOne

HibinoSpacetech
Corporation

hibinomarketingDiv.

ELECTORI
CO., LTD.
Sama
D&I
Co., Ltd.

HibinoImagineering
Corporation

TECHNO
HOUSE INC.

HibinoLighting Inc.

Previous mid-term business plan

One ofa KindHibinoMedia
Technical
Corporation

HibinoAsia Pacific(Shanghai)
LimitedENVIRONMENTAMENITY
CO., LTD.

NumberOne

HibinoUSA, Inc.

One ofa KindH&X
Technologies,
Inc.

TLS
PRODUCTIONS,
INC.

NumberOne

HibinoEurope B.V.

NumberOne

One ofa KindNew mid-term business plan

Penetration phase

Performance phase⚫ Development of innovation
implementation system⚫ Policy sharing⚫ Disseminating informationinternally⚫ Multiple projects inprogress⚫ Business development
and improved
management

Number ofinnovation ideas
drafted

36

33

2018

2019

200

16
2020

2021

10

New Mid-term Business Plan “Vision 2025”

Mid-term Management Policy
Establishing Sound Management
Index

Ordinary profit
per capita⚫ Clarifying a minimum target
for ordinary profit per capita
common to all sectors⚫ Aiming to achieve further
growth in sectors that havealready achieved their goals,
and in sectors that have not
yet achieved their goals bystrengthening our earnings
structure, including structuralreforms⚫ Examining sectors that do notturn a profit for considering
their withdrawal or
downsizing⚫ Boosting cash generation
capabilities by incorporating
capital efficiency

Index

1
ReasonableprofitFinancial stability
SoundManagement
cycle

2

3
Improvement of human capital

Index

Equity ratio

30% or more,target of 40%⚫ Emphasizing stabledividends (continual trend of
dividend increases) for
shareholder returns⚫ Executing carefully selected
growth investments• M&A• Innovation-related, DX-related,
R&D investment• Investment in equipment(equipment for rent)• Investment in human resources

Employee engagement⚫ Building a healthy and rewarding work environment⚫ Realizing “Employee individual growth = Company
growth”

11New Mid-term Business Plan “Vision 2025” > Key Management Issues

Transforming into a High-Profit Structure
1. Improve profitability of all
sectors◆ Clarifying a minimum target for ordinary profit
per capita common to all sectors◆ Aiming to achieve further growth in sectors thathave already achieved their goals, and insectors that have not yet achieved their goals
by strengthening our earnings structure,including structural reforms

2. Boost the Group’s overall strength
Sales ofaudio
equipment

Improve functionality as a one-stop solution◆ Implementing cross-group sales initiatives and business creationby combining the expertise developed by each sector◆ Increasing added value by responding to customer needs as a
one-stop shop, and demonstrating comprehensive capabilities
that no other company can imitate

Sales oflighting
equipment

Architectural
acoustics
installation

One Stop
SolutionSound
consulting◆ Examining sectors that do not turn a profit forconsidering their withdrawal or downsizing

Sales ofvideo
equipment

Concertand eventacoustics

Concertand event
video

Optimize Group organization
Minimum target forordinary profit per capita
common to all sectors
Achievement
sectors

Further growth, improving
strengths

Nonachievement
sectors

Strengthen earnings structure,including structural reforms

Deficit sectors

Study withdrawal anddownsizing

Changing reporting segments by integrating threebusinesses from the year ending March 2023.
Enhancing businesses and improving productivity byunifying the sales and installation organizations foraudio, video, and lighting

Audio Equipment Sales and Installation
Business
Visual Equipment and Systems Development,
Manufacture, Sales and Installation Business

Other Businesses

Integration

Sales andInstallation
Business

3. Capture special demand projects
Expo 2025 projectMedia-related and urban redevelopment projects

Establishing an 2025 Osaka
Expo Preparation Office tomeet demand for the World
Expo 2025

Steadily receiving and executing orders for media-related projects(reconstruction of broadcasting stations, new studio construction andrenewal, etc.) and new hall construction projects associated with urban
redevelopment

12

New Mid-term Business Plan “Vision 2025” > Key Management Issues

Creating Future Businesses
1. Launch and build new businesses
Enhance e-commerce for expanding B to C business

Develop strategic business fields◆ Focusing resources on the noise control measures and virtual
production business fields, where market growth is expected andthe Group’s technological foundation can be utilized

Noise control
measures

Virtualproduction

Consulting andconstruction

Studio system rental +Operation

Architectural Acoustics
Installation Business

Concert and Event
Services Business◆ Opened the FULL-TEN e-commercesite to establish a direct sales channel◆ Expanding our strengths in technology,
product procurement, and customer
service and support developed in B to B
(professional field) to B to C
FULL-TEN e-commerce site
Service launched in April 2022

Establish new manufacturing◆ Starting with audio equipment, expanding
into distribution, video, lighting, andmusical instrument categories◆ Reviewing manufacturing strategy and planning to expand into new
categories◆ Developing e-commerce-exclusive brands and original products toachieve differentiation and improve profitability simultaneously

2. Boost global expansion◆ Aiming for overseas sales of ¥22.5 billion (overseas sales ratio of30%)◆ Establishing a four-base global structure (Japan, Asia, North
America, Europe) through overseas M&A

Asia
N. America

EuropeWhile expanding business in South Korea, for the time being, working to
expand other Asian bases in the sales and installation business
Gaining market share in the world’s largest entertainment market byfocusing on the concert and event services business
Establishing business foundation by making Hibino Deutschland GmbH
(formerly AV-X) a subsidiary and to explore new business opportunities
and partners

13New Mid-term Business Plan “Vision 2025” > Key Management Issues

Implementing DX
1. Strengthen competitiveness through business DX

2. Improve productivity throughbusiness process DX

Accelerate digital innovation by sector

Toward Group-wide optimization
based on Grand Design

Upgrading of existing
businesses

Creation of new
businesses

Increase the value of existing products andservices by incorporating cutting-edge
technologies (AI, IoT, AR, XR, etc.) anddigitizing the way services are provided.

Oversee customer processes andmarket needs to create new businesses
that solve problems

2021Digital
Digital Innovation
Innovation Case
2021
CaseStudy
Study

Back officeefficiency improvement

Strengthening customer
relationships⚫ Improved productivity throughcombination of business
innovation and digitalutilization⚫ Increasing productivity byconducting sales andmarketing activities remotelyand digitizing them

⚫ Paperless operation⚫ Maximizing LTV (customer
lifetime value) by improving
customer experience throughcustomer data analysis

Hibino participates in Metaverse Production, a joint project with Dentsu
Creative X, Tohokushinsha Film, and Dentsu Creative Cube
By making full use of in-camera VFX, a virtual production
technology that utilizes LED displays, Tohokushinsha Film and
Dentsu Creative X aim to reduce waste materials during studioshooting by up to 90% and to reduce the number of participants
during location shooting by up to 90% compared to theconventional video production workflow.

Studio PX, a large LED permanent studioParticipated and implemented as a pioneer for
in-camera VFX in Japan

Effective use of telecommuting
Diverse ways of working regardless of time and place

Bolster infrastructure to support DX
Core systems

Other businesssystems

Communication
infrastructure

Security

Establish an organizational structure capable of implementing DX⚫ Establish a Chief Information Officer (CIO) to lead the Group’s IT strategy and DX implementation (January 2022)⚫ Establish mechanisms for human resource development and evaluation for the Information System Group14

New Mid-term Business Plan “Vision 2025” > Key Management Issues

Implementing Sustainability Management
1. Implement SDG initiatives

Materiality Identification Process
Step 1

Identify issues
Based on our dialogue withexternal experts, information
gathered on global social
issues, and our Group’s
philosophy and other policies,
we have comprehensively
identified issues to beaddressed by the Group in
response to the 17 SDGs.
A cross-departmental project
team was formed to discussand identify 376 items.

Step 2

Step 3Categorize issues
by theme

Prioritize and organize
themesAfter organizing similar
items, we categorized theidentified issues bysustainability theme.

Each theme was mapped andprioritized according to both its
importance to stakeholders (its
impact on society) and its
importance to the Group, and the
project team discussed andnarrowed the list down to 15
potential themes.
The narrowed-down potential
themes were further classified
into four categories of materiality:“Delivering sound and visual
images around the world,”“Contributing to a decarbonizedsociety,” “Building a healthy andrewarding work environment,”
and “Realizing a safe and securesociety.”

Step 4

Validate
The materiality identified wasreviewed by senior
management and finallyapproved by the Board of
Directors.
Since it is necessary to take
into account changes in theimportance of issues and theemergence of new issues, it isour policy to discuss the needto review the materiality every
year at the Board of Directors.

15

New Mid-term Business Plan “Vision 2025” > Key Management Issues

Implementing Sustainability Management

Extremely highImportance to stakeholders

Materiality Map
1. Delivering sound and visual
images around the world
2. Contributing to a
decarbonized society

Contribute to thedevelopment of theaudio, video, andmusic industry

Enhance health andsafety measures

Realize eco-concerts

Contribute to community development using sound andvisual images in partnership with the local community

Enhance disaster prevention
and mitigation measures
Implement labor saving
in business operations
Implement waste reduction
in business operations

Communicate soundand visual image
technology

Achieve a gender-freeworkplaceCreate innovations
related to soundand visual images

Create a more comfortable
work environment

Promote healthmanagement

3. Building a healthy and rewarding
work environment

Improve community safety
and security using soundand visual image technology

Deliver sound and visual
images to everyone

Create job satisfaction

4. Realizing a safe andsecure society

Extremely highHigh

Importance to Hibino Group

16

New Mid-term Business Plan “Vision 2025” > Key Management Issues

Implementing Sustainability Management
Four Categories of Materiality

1

2

3

4

Delivering sound andvisual images aroundthe world

Contributing to a
decarbonized society

Building a healthy andrewarding work
environment

Realizing a safe andsecure society

Under the philosophy of “Creation &We view climate change as a major

We will develop human resources

We aim to realize a society in which

Innovation,” the Hibino Group haschallenge that affects all life on earth,

who will grow with the company andall people can live comfortably, safely,

contributed to the development ofand aim to realize sustainable

contribute to a sustainable society,and securely. We will implement

music culture, visual culture, andcorporate activities toward thewhile creating a work environment

various initiatives and build

entertainment by providing valuetransition to a decarbonized society.

where each and every employee caninfrastructure to protect people’s

through sound and visual images. We

We will strive to reduce waste, savework in good health and with peace of

health and livelihood from threats

will constantly build innovativelabor, and take other measures tomind. We will foster a corporatesuch as natural disasters, pandemics,

businesses and work to solve social

contribute to achieving theculture in which diverse humantraffic accidents, noise, and more.

issues while incorporating majorinternational goals outlined in the

resources share each other’schanges in industry brought about by

SDGs and the Paris Agreement.

individuality and values and continue

technological innovation.

to create new value throughcollaboration.

17

New Mid-term Business Plan “Vision 2025” > Key Management Issues

Implementing Sustainability Management
Four Categories of Materiality and 15 Themes for Action
1. Delivering sound and visual images
around the world

2. Contributing to a decarbonized society

Themes for action

Themes for action(1) Deliver sound and visual images to everyone(2) Create innovations related to sound and visual images(3) Contribute to the development of the audio, video, and music industry(4) Contribute to community development using sound and visual images
in partnership with the local community(5) Communicate sound and visual image technology(1) Realize eco-concerts(2) Implement waste reduction in business operations(3) Implement labor saving in business operations

3. Building a healthy and rewarding work
environment

4. Realizing a safe and secure society

Themes for action

Themes for action(1) Create job satisfaction(2) Create a more comfortable work environment(3) Promote health management(4) Achieve a gender-free workplace(1) Improve community safety and security using sound and visual image
technology(2) Enhance health and safety measures(3) Enhance disaster prevention and mitigation measures18

New Mid-term Business Plan “Vision 2025”

Business Strategy for “Sales and Installation Business”
Business Environment

Business Strategy●: Opportunities◆: Risks

Improve capability to propose solutions for audio,
video, lighting, control, and networks, and to expand
B to C business⚫

Active capital investment in the concert and event
market, equipment market, and broadcast market, as
well as growing demand from Expo 2025
◆ Foreign exchange fluctuation risk and increased logistics
costs due to the import of overseas products⚫ Diversification of needs with the progress of digitalization⚫ Accelerating adoption of e-commerce➢ Strong brands and a wide range of product categories➢ Technical, product procurement, customer service andsupport capabilities developed in the professional field➢ High brand strength (name recognition in the industry)➢ Development through Group collaboration

Plan

25,123
17,912

Year ended
March 2022

28,400Year ending
March 2024
(Results)

Year ending
March 2025
(Forecast)⚫ In the Professional sector, pursuing expertise to provide comprehensive solutions to users’ issues⚫ In the Partner Business sector, expanding marketing and effectively providing products andservices⚫ In the System sector, providing advanced total solutions combining audio, video, lighting, control,and networks

Total production of LED displays and digital signage⚫ Involvement from the concept and basic planning stages, proposing optimal software and hardwareto achieve the facility’s objectives⚫ Providing video content to bring facilities to life by maximizing the use of the delivered systems

32,000Restructuring of product strategy

20,124

Year ending
March 2023
(Results)

Marketing tailored to customer characteristics(Millions of yen)

Year ending
March 2026
(Plan)

Mid-term Business Plan “Vision 2025”

Creating future businesses

Net Sales Plan

Transforming into a high-profit
structure

Management Resources

Key Measures⚫ Acquiring a strong brand that is competitive in the marketplace⚫ Expanding to a wide range of products for e-commerce by developing e-commerce-exclusive
brands and original products to achieve differentiation and improve profitability simultaneously⚫ Establishing manufacturing for new categories

Growth and expansion of overseas subsidiaries⚫ Utilizing the Group’s resources and expertise to expand the scope of business from audio tovideo, lighting, and architectural acoustics, and from sales to development, manufacturing, andservices⚫ Building a unique alliance group by investing in and collaborating with businesses in the same
industry or related businesses

19New Mid-term Business Plan “Vision 2025”

Business Strategy for “Architectural Acoustics Installation Business”⚫
⚫

Broadcast station reconstruction plans are underway forthe medium and long term. The rise of Internet video
streaming services has also increased demand for new
and upgraded studios.
Plans for new halls, cultural exchange facilities, arenumerous as part of urban redevelopment.
As companies become more aware of the SDGs, there
will be a growing need for noise control construction andthe creation of comfortable sound environments.

Management Resources➢ Core technologies related to sound and acoustics➢ Top-class architectural acoustics engineers in Japan(quality and quantity)➢ Responsible construction system that integrates
planning, design, and construction➢ High brand strength (name recognition in the industry)Net Sales Plan
Plan

9,669
7,963

Year ended
March 2022

Year ending
March 2023
(Results)

9,267

Year ending
March 2024
(Results)

10,700Year ending
March 2025
(Forecast)

Growth in the field of noise control and maintaining andstrengthening our leadership position in the field ofarchitectural acoustics
Key Measures
Transforming into a highprofit structure⚫

Business Strategy●: Opportunities◆: Risks

Enhanced support for media-related projects⚫ Steadily receiving and executing orders for media-related projects (reconstruction of broadcastingstations, new studio construction and renewal, etc.) to establish a long-term, continuous foundation
for business transactions

Participation in urban redevelopment projects⚫ Implementing initiatives for large-scale redevelopment projects in the Toranomon area,
Hamamatsucho, Shinagawa, Mita, Ariake, Yaesu, Tokiwabashi, Nihonbashi, and more

Further development of the noise control sector(Millions of yen)

11,500Year ending
March 2026
(Plan)

Mid-term Business Plan “Vision 2025”

Creating future businesses

Business Environment⚫ Contributing to people’s health and safe and secure living by solving and preventing problems ofnoise and low-frequency noise generated in factories and business sites* Business sites: Commercial facilities, offices, hotels, hospitals, facilities for the elderly, etc.
⚫ Differentiation through a consistent and responsible construction system from consulting toengineering

Strengthening of product development and expansion of sales⚫ Strengthening our research and development system and expanding into the fields of architectural
acoustics, noise control, acoustic materials, human sensory evaluation, and defense based on ourcore technologies in sound and acoustics⚫ Studying M&A that targets companies with related commercial products

20New Mid-term Business Plan “Vision 2025”

Business Strategy for “Concert and Event Services Business”
Business Environment⚫
⚫

⚫

Optimize market mix by accelerating growth in virtual
production and re-enhancing sports

Expansion of concert and sports markets, partly due tothe operation of new venues
Expansion of the virtual production market
Policy progress in hosting and attracting MICE,
regional development, and sports industry
development
Holding of Expo 2025

Management Resources➢ Technology and expertise in audio and large-scale video
operations developed at a vast number of sites➢ Possession of one of the world’s most extensive rangesof equipment➢ Top-class audio and large video technicians in Japan(quality and quantity)➢ High brand strength (name recognition in the industry)➢ Partnerships with world-leading video and audio
equipment manufacturers

Key Measures
Transforming into a high-profit
structure⚫

Business Strategy●: Opportunities◆: Risks

Stable and continuous revenue generation by acquiring major
customers in the concert market⚫ Boosting marketing and capital investment⚫ Expanding the scope of services offered (digital content production, etc.)

Capturing special demand from Expo 2025
⚫ Under the direction of the 2025 Osaka Expo Preparation Office, improving sales and relationships
for acquiring pavilion and related projects

Expanding the market size as a leader in virtual productionPlan

14,844

Year ended
March 2022

19,50013,835

Year ending
March 2023
(Results)

16,099Year ending
March 2024
(Results)

16,900Year ending
March 2025
(Forecast)⚫ Increasing the number of virtual production studios and expanding the system(Millions of yen)

Year ending
March 2026
(Plan)

Mid-term Business Plan “Vision 2025”

Creating future businesses

Net Sales Plan

⚫ Continuing strong promotional efforts⚫ Collaborating with outside companies, including through the Metaverse Production project

Provision of visual services integrating software and hardware⚫ Expanded range of services, from video content production for concerts, corporate events, and virtual
production to the use of large-scale video systems⚫ Creation of new visual and entertainment experiences

Growth in demand in the sports market⚫ Strengthening relationships with competition organizations and organizers, aiming to take part inproviding large-screen video for untapped sports competitions

21

Reference: Changes in Reporting Segments

Changes in Reporting Segments from the Year Ending March 31, 2023
Segments Before Change
Audio Equipment Sales andInstallation BusinessArchitectural Acoustics Installation
Business

Segments After Change
Sales and Installation Business
Integration

Name change

Architectural Acoustics Installation
Business

Visual Equipment and Systems
Development, Manufacture, Sales
and Installation Business

Concert and Event Services Business(No change)

Concert and Event Services
Business

Other Businesses
As of April 1, 2022

22