Medium-Term Management Plan
FY2022～FY2026（5 years）

Impress Holdings, Inc.
June 13, 2022

Copyright © Impress Holdings, Inc. All Rights Reserved.

Disclaimer
Any forward-looking statements contained in this document are based on
current information and may be subject to change due to macroeconomic
trends, market conditions, industry trends related to the Company, andother internal and external factors. The Company does not indicate orguarantee the accuracy or completeness of the information included in thisdocument.

Copyright © Impress Holdings, Inc. All Rights Reserved.

1

Trends in Business PerformanceCopyright © Impress Holdings, Inc. All Rights Reserved.

2

Industry Trends：Trends in Print Publishing Market
17 consecutive years of decline mainly in magazines(100M Yen)

25,000MagazinesBooks

20,00015,00010,000

5,000

0

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21〔Source〕全国出版協会・出版科学研究所『出版指標年報2022版』
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3

Industry Trends：Trends in Publishing (Print and Digital)
Electronic publishing market expands to 466.2 billion yen
Combined market of print and digital grows for 3 consecutive years(100M Yen)

E-publishing

20,000Magazines (print)
Books (print)

15,00010,000

5,000

0
FY15

FY16

FY17FY18

FY19

FY20

FY21

〔Source〕全国出版協会・出版科学研究所『出版指標年報2022版』
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4

Industry Trends：Advertising Market

While magazine Ads continue to decline, internet Ads have overtaken TV Ads inmarket size

(100M Yen)

Total Ads Expenditures

30,00080,000Internet Ads

70,000Magazine Ads

25,00060,00020,00050,00015,00040,00030,00010,00020,0005,000

10,00000FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20

FY21〔Source〕株式会社 電通『日本の広告費』
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Our Group’s Performance in Previous Years

Maintained a trend of increasing sales and profits, expanding to a scale of 15 billion
yen in net sales and 800 million yen in operating profit■Net Sales■Operating Profit

15,0001,000(Million Yen)

800

10.0%

Operating Profit
Operating Profit Margin

8.0%

600

6.0%

400

4.0%

10,000

200

2.0%

黒字転換

0.0%

5,000
FY16FY17FY18FY19FY20FY16FY21FY17

FY18

FY19

FY20

FY21-200
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-2.0%

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Trends in Sales Volume(Million Yen)

15,000

While maintaining sales volume ofprint publishing business、

10,000

Expand non-print publishingbusinesses such as

5,000Electronic Publishing,Internet Media, Target Media,
and Platform Business
FY16

FY17

FY18FY19

FY20

FY21Print Publishing BusinessBusiness other than Print Publishing（Electronic Publishing, Internet Media, Target Media, Solution, Platform Business）
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Structural Transformation of Business Portfolio
With steady business structure transformation,Achieved business expansion and growth■FY21■FY1653%

47%

44%
56%

Print Publishing BusinessBusiness other than Print Publishing（Electronic Publishing, Internet Media, Target Media, Solution, Platform Business）
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8Expansion & Strengthening Content Area (Segment)
Segments

Music

DesignNatureAviation・Railways

Mobileservices

OtherScience andengineering, POD

Added new areas ofexpertise「Aviation・Railways」
Content Business: Media & Services / SolutionBusinessthrough M&A during
FY16～FY21Category

Platform Business

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9Expansion & Strengthening Business other than
Print Publishing

Expanding business scale in each business category,overall sales increased by just under 2.9 billion yen over 5 year period(Million Yen)

■Electronic Publishing
Expansion to 1 billion scale（+440 million）

7,833

8,000

1,271
6,000

4,950

4,000566556

991

FY16FY21Internet Media■Platform
Expansion to 2.5 billion scale（+850 million ）

1,899

1,228

Electronic Publishing

1,211■Target Media
Expansion to 1.2 billion scale（+650 million）

996
1,604

2,0002,460■Internet Media
Expansion to 1.9 billion scale（+670 million ）Target Media

Platform■Solution, etc.
Expansion to 1.3 billion scale（+280 million ）Solution, etc.

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10Medium-term Management Plan
FY2022～FY2026（5 years）

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11

Phase of Medium-term Management Plan
FY22：current

Restructuring Period
FY16～FY19（4 years）

Foundation Building Period
FY20～FY23（4 years）

Growth Transition Period
FY24～FY26（3 years）

Operating Loss→
Operating Profit to500 million scale

Operating Profit
500 million scale →raise to 1 billion scale

Operating Profit
1 billion scale→raise to 2 billion scale

Operating Profit Margin
improved to 3% level

While investing in growthinvestment,
raise Operating Profit Margin
to 6% level

Growth through return on
investment,
raise Operating Profit Margin
to 10% level

Print Publishing ratio
56％→51％Print Publishing ratio
51％→47％

Print Publishing ratio
to 40％

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12Medium-term Management Plan
①Strengthen competitiveness and profitability of Content Business→No. 1 in specialty + expansion into adjacent genres②Develop new business model through media mix development→Produce multi-faceted media and services for fans in each specialty→Create high value-added member services in the direct channel (DtoC)③Expand Platform Business→Cultivate new business models・expand scale of existing business models④ Evolution of business models and creation of business platforms
through DX promotion→Promote media mix business development and develop business infrastructure→Accelerate growth by bringing in external resources→Build a business platform that corresponds to the evolution of business environmentand business→Improve productivity by promoting use/operation of work style reforms
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13

Summary of Medium-term Quantitative Targets ①①Set medium-term（5 years）net sales target at 20 billion② Facilitate portfolio transformation while maintaining a certain
scale in the Print Publishing Business→Reduce sales composition ratio of print publishing business to 40% by strengthening
media mix development, etc.

③Set operating profit target at 2 billion scale→Raise operating profit margin from the current 5% level to 10%④Achieve targets by strengthening/developing priority businesses
such as Electronic Publishing, Internet Media, Target Media andPlatform Business as well as through M&A and other measures(external growth)
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14

Summary of Medium-term Quantitative Targets ②（Million Yen）

Target for Medium-term (5 years): Net Sales 20 billion、Ordinary Profit 2 billion
FY20
ResultNet sales

FY26

FY21
ResultTarget

Compared
to FY21

13,85014,77820,000+5,222

Operating profit

822

848

1,900+1,052

Ordinary profit

9319412,000+1,059

Operating profit margin

5.9％

5.7％

9.5％

+3.8P

Publishing (paper) sales

6,586

6,946

7,450+504※Composition ratio

48％

47％

40％－7P

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15

Medium-term Portfolio by Business Category
While maintaining scale of print publishing business, expand digital platform and other businesses

FY26

FY21Printing(paper)

Electronic
Publishing

InternetMedia

TargetMedia

Platform

Solutionetc.

ExternalGrowth

Maintain
7.5B scale

Expand
1.8B scale

Expand
2.4B scale

Expand
1.8B scale

Expand
3.3B scale

Expand
1.5B scale

Create1.7B scale＋800M/
12% annual
growth＋600M/
6% annual
growth＋600M/
8% annual
growth＋600M/
7％ annual
growth＋300M/
5％ annual
growth1B scale

1.9B scale

1.2B scale

2.5B scale

1.3B scale

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16

Key Themes for Medium-term Business Growth ①
Publishing/Electronic Publishing●Strengthen competitiveness of specialized content and expand into adjacent areas●Stable expansion of long-tail book business●Maintain profitability and brand strength of magazine business●Stable expansion of electronic publishing business based on print books(10% per year)●Develop digital first works through e-comic labels (CoMax), etc.
●Improve profitability in the Design, Aviation・Railways segment

Internet Media●Maintain growth potential in the IT segment●Strengthen efforts in media services of each segment, with a focus inMusic/Nature segment●Develop new services through media mix development with magazine brands●Develop high value-added membership services in the direct channel (DtoC)●Revenue model development for managed advertising, affiliate and matching
services, etc.

Target Media●Expand lead generation business to capture the IoT/DX trend●Expand customer database (currently 420,000)●Expand target industry area, strengthen specialized media capabilities, anddevelop BtoB services●Expand event/seminar business and respond to real/online hybridization

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Key Themes for Medium-term Business Growth ②Platform●Digimart： Maintain growth potential through expansion of commercial products andservice areas (10-15%/YR)●E-comic PF：
Growth of existing services has run its course, develop new business partner,
overseas distribution and other services and shift to a phase of renewed growth●POD PF： Expansion of business scale through collaboration with Media Do（20%/YR）●Business development of new media platform (device)

Solution●Multifaceted and composite sales proposals based on a media mix●Develop menu of proposals for artist management in Music segment●Develop services for municipalities in Nature segment●Strengthen business development efforts in Aviation・Railways segment

External Growth●Expand highly competitive branded specialties●Media mix development centered on internet media、Consider capital and business alliances to promote development of newplatform businesses●Create new value by Content×Device（Business model/Media platform)

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18

Medium-term Segment Portfolio■Medium-term Growth Image by Segment
ITMusic

NatureMobile
Service

Other

Profitability
DesignAviation・Railways

Operating profit：over 300M
Operating profit：around 100M
Operating profit：around 0
Operating loss

Growth potential

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19

Enhance corporate value by achieving business growthand strengthening shareholder returns
Profit
Level

EPS

ROE

PayoutRatio※consolidated
profitMarketCap

FY26

Ordinary
profit40 yen

12％

30％

Over
20B

FY21

Ordinary
profit25 yen

9.9％

20％

8B

2B940M

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20

Medium-to-Long-Term Management Vision〈Management Strategy〉
10（Content）×10（Device）＝100（Value Creation）
Delve into areasof expertise

Horizontal expansionof business model/platform

Enhancement of corporate
value
Contribution to culture andsociety rich in humanity〈Philosophy〉
Sharing Knowledge and Excitement through Innovation:
We want to “impress” people through our “press” activities.
〈Social Mission〉
Human Knowledge Mediary(Create a free cultural and social cycle with rich humanity)
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21

Group Sustainability Priority Themes
SDGs GoalES

G

Priority Themes

Major Activities

Creativity to protect
environment

・Use of forest certified paper and vegetable oil ink for products
・Reduction of paper resources by digitizing sample magazines anddocuments
・Expanding the inventory-free production model by POD・Environmental preservation & safety awareness activities throughJapan Mountains Heritage Fund
・Installing green electricity with building management company

Bridging culture-building
expertise to next
generation
Mutual respect for people
and a rewarding
challengeFair Partnership・Expansion of books and courses for GIGA schools and certification
exams
・Various services with direct guidance from professionals
・Promotion of reading barrier-free, free access to article archives
・Flexible working style with super-flexible system
・Mobility and activation of human resources through recruitment
within the group
・Skill development through training, voluntary study groups, andplanning support programs
・Group management that maintains independence and strengthenshorizontal synergies
・Selecting standard market and co-creation through promotion of IRand M&A・SCM through partnerships with distributors and warehouses
・Participation in xSDG Consortium and publish “SDGs Whitepaper”
・Set up different types of hotlines, ethical business activities
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22

Reference Material:
Overview of Impress Group

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23

Segment and Business of Impress Group
Segments

Music

Business
Category

DesignNatureAviation・Railways

Mobileservices

Other

Science andengineering, POD,etc.

Content
Business:
Content
Business:MediaMedia&&Services
Services/ /Solution
Solution
Platform Business

Platform Business

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24

Content Business: Media & Services

Specialized books,magazines

E-Books

Publishing/ElectronicPublishing

N e w Ye a r C a r d m o o k s ,calendar

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Content Business: Media & Services

Digital generalnews

Mountaineering

Internet Media

DesignEntertainment

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Content Business: Media & Services

Target MediaBusiness media

Events, seminars

Survey reports

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27

Content Business: Solution※Outsourced operation by Temjin

Outsourced creation of sales promotion and public relationstools and websites for companies and local authorities
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28

Platform Business

E-Commerce
platforms

E-Comic
platforms

Publishing
Distribution
Platforms

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29

※Overview of IKAROS Publications(making it a wholly owned subsidiary in Aug. 2021)■Attributes
Publishing company with a 40-year history centering around aviation
including a monthly magazine Airline and providing highly specialist contents
in the military, travel, and disaster prevention fields■ Reason for Stock Acquisition
Expand our presence in the fields of highly competitive specialist contents withhard-core fansDevelop a media mix effectively utilizing Impress Group’s resources for theplanning and editing capabilities of IKAROS Publications in order to improvebusiness value by building fan communities and developing electronic
publishing, web services, and business for corporations, etc.
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30

※Overview of IKAROS Publications(making it a wholly owned subsidiary in Aug. 2021)■Main Publications
Aviation

Military

Railways

DisasterPrevention, etc.

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31

※Overview of Pubfun established April, 2022
■Overview・Purpose A joint venture company established in April 2022 by integrating POD services of “NextPublishing
Authors Press”, which is operated by our subsidiary Impress R&D and has market share for individuals
and “PUBRID”, which is operated by Media Do, Inc. and has market share for corporations.
 Through the joint venture, the company has gained leading share in POD publishing. Leveraging thestrengths of both parties, the joint venture will promote the expansion of the POD market through thedevelopment of new authors and flexible response to publishing needs.

■Attributes of Services

Publishing support service for individuals andorganizations. By preparing manuscript files in apredetermined format, anyone can publish andsell paperbacks and e-books on Amazon.co.jp forbasically free.

POD service for publishers and corporations. The
combination of bookstore POD and on-demandprinting enables new forms of publishing, suchas reprinting out-of-print or low-stock books andpublishing original POD works.
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