F i n a n c ia l R e s u l ts
for the Fiscal Year 2024
（July 2023 – June 2024)

Contents

Summary of the Results for FY 2024

p.2

Business report of FY 2024

p.11

FY 2025 Forecasts
and future business development

Copyright © 2024 Temairazu, Inc. All rights reserved.

p.27

1

1 Summary of the Results

Copyright © 2024 Temairazu, Inc. All rights reserved.

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Summary of the Result for FY 2024

1

Outline of the financial results

Net Sales:11.9％ increase YoY

Operating Income:10.9% increase YoY

FY 2024 total
Results

Profitmargin on
sales

Result of same
period last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 2,023,990 K－

JPY 1,809,499 K

JPY 214,490 K

11.9％

Operating
IncomeJPY 1,476,791 K

73.0%

JPY 1,331,929 K

JPY 144,861 K

10.9％

Ordinary
IncomeJPY 1,479,139 K

73.1%

JPY 1,333,546 K

JPY 145,592 K

10.9％

Net Income

JPY 976,459 K

48.2%

JPY 873,814 K

JPY 102,644 K

11.7％

Net earnings
per share

JPY 150.69－

JPY 134.86

Copyright © 2024 Temairazu, Inc. All rights reserved.

－

－
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１

Summary of the Result for FY 2024

2

Sales composition ratio

1.9%

1.6%

1.7%

1.9%

2.1%

2.1%

2.4%

2.1%

1.3%

1.2%

1.1%

1.0%

98.1%

98.4%

98.3%

98.1%

97.9%

97.9%

97.6%

97.9%

98.7%

98.8%

98.9%

99.0%

Internet Media Business

Application Service Business

FY2022 1Q FY2022 2Q FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q FY2023 3Q FY2023 4Q FY2024 1Q FY2024 2Q FY2024 3Q FY2024 4Q
Copyright © 2024 Temairazu, Inc. All rights reserved.

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3

Summary of the Result for FY 2024

Sales and profit per segment

Application Service Segment:
Sales and profits increased and profit margin after cost allocation was 73.3%
Internet Media Segment:
Sales and profits decreased and profit margin margin after cost allocation was 41.5%

Segment Sales

Application Service

JPY 2,003,466 K

Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 1,611,640 K(JPY 1,468,282 K)

80.4％(73.3％)
50.1％(41.5％)

Hikaku.com

JPY 20,523 K

JPY 10,278 K(JPY 8,508 K)

Adjustment--JPY 145,127 K-

JPY 2,023,990 K

JPY 1,476,791 K

73.0％

TOTAL

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１

Summary of the Result for FY 2024

4 Sales trend of Application Service segment(Temairazu)
YoY: +13.1%

Unit: JPY 1,000
550,000

Jul – Dec 2020: Go To Travel Campaign(Tokyo included from Oct 2020)

500,000

450,000

Apr – May 2020: The 1stannouncement of State ofEmergency

May 2023: Covit-19 reclassified as Class 5

Oct 2022:✓ The national travel assistance program started✓ Relaxation of immigration restrictions

400,000

350,000

300,000

250,000

200,000

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１

Summary of the Result for FY 2024

5

Breakdown of sales cost and SG&A

Sales Cost
Labor Cost
OthersAdvertising Cost
Commissions

Unit : JPY 1000

53,371

61,24746,06331,92230,70933,42035,07636,96934,821

2,038

442

43,67848,955

2,054

123

845

3,045

51,25543,53236,505

1,807
789

36,92340,84945,692

21,70818,73047,43649,804

475

2,304

618

47,81551,424

156

48,03456,55844,466

20,223

17,794

17,20816,47318,715

16,294

15,963

15,141

17,863

FY2023 4Q

FY2024 1Q

FY2024 2Q

19,971

18,81814,455
FY2023 3Q

15,221

16,96815,59817,187

FY2022 1Q

FY2022 2Q

20,62911,610
FY2022 3Q

FY2022 4Q

15,381

17,509FY2023 1Q

FY2023 2Q

Copyright © 2024 Temairazu, Inc. All rights reserved.

22,46913,415
FY2024 3Q

FY2024 4Q

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6

Summary of the Result for FY 2024

Progress rate against full-year forecast

105.0%Net Sales

Operating
IncomeOrdinary
IncomeNetearnings
per share

1,928,116

2,023,990

113.9%

1,297,105113.6%

1,302,023

1,476,791

1,479,139

831,888

117.4%

976,459

FY2024 Forecast(announced on Jul 31, 2023)
Copyright © 2024 Temairazu, Inc. All rights reserved.

Unit: JPY1,000

FY2024 Result
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7

Summary of the Result for FY 2024

Balance Sheet
End of FY 2023

End of FY 2024

JPY 5,826,084 K

JPY 6,565,274 K

Other current
assetsJPY 290,803 K

JPY 334,145 K

Accounts
receivable+ JPY 36,609 K

Fixed assets

JPY 64,621 K

JPY 78,084 K

Deferred tax assets+ JPY 6,213 K

Total Assets

JPY 6,181,509 K

JPY 6,977,504 K-

JPY 397,108 K

JPY 419,833 K

Income taxes
payable+ JPY 13,218 K

Capital stock

JPY 5,784,400 K

JPY 6,557,671 K

Net Income
Dividend of surplus+ JPY 976,459 K- JPY 204,108 K

Total liabilities /net assets

JPY 6,181,509 K

JPY 6,977,504 K-

Equity ratio

93.6%

94.0%

-

ROE

16.1％

15.8％

ROA

23.1％

22.5％

Cash

Liabilities

Copyright © 2024 Temairazu, Inc. All rights reserved.

Key factors of change+ JPY 739,190 K

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8

Summary of the Result for FY 2024

Statements of Cash Flows
End of FY 2024

Variable Factors

Operating CF

JPY 949,471 K

Net income before income tax
Income taxes payment

JPY 1,479,139 K- JPY 497,086 K

Investing CF- JPY 6,235 K

Acquisition of fixed assets- JPY 6,235 K

Financial CF- JPY 204,046 K

Dividend payments- JPY 203,764 K

Changes in CF

JPY 739,190 K-

CF balance at
beginning of FY

JPY 5,826,084 K-

CF balance at end
of FY

JPY 6,565,274 K-

JPY 943,236 K-Free Cash Flow

*Free Cash Flow is calculated by adding Operating CF and Investing CF
Copyright © 2024 Temairazu, Inc. All rights reserved.

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2

Business report

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Business report

1

Business Summary of each segment

Application Service Business

Development & provision ofchannel manger “TEMAIRAZU”
seriesInternet Media Business

Operation of meta search site
“Hikaku.com”
Customer derivation service
Direct users to the advertiser's website and earncommission income according to the number ofcontracts.

Develop and offer “Temairazu”, theInformation provision service

channel manager system toaccommodation properties in Japan,

Earn fee income according to the number of
quotation and materials requested for insurancesand moving etc.

enabling them to manage their distribution

Adschannels centrally.

Sell advertisements such as banner, text, article
content etc.

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2

Business report

2-1 Application Service Business (Temairazu)
Our Channel Manager is a system for accommodation properties to manage theirdistribution channels in effective and efficient way, resulting in increasing the sales ability
and reducing the operation cost.
booking site A

bookingbooking site B

auto adjustment
booking site C

Manage multiple
channels easily with only
one operation
Manage rate & inventory at onceand be free from troublesome
operation tasks. Reducing
operation cost by simplifying
channel management workflow.
Copyright © 2024 Temairazu, Inc. All rights reserved.

Avoid overbooking by
fast & auto update

Accessible fromanywhere with internet
connection

Short interval between acquiring
bookings and able to adjust theinventory quickly. Possible toclose the sale on each channel
all at once even if many
bookings comes in suddenly.

Access Temairazu from the any
places where internet
connection is available. Sameaccount can be used fromdifferent computers as data isstored in dedicated server.
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Business report

2-2 Application Service Business (Temairazu)
Beginning of “TEMAIRAZU” service

New model channel manager”TEMAIRAZU.NET”“TEMAIRAZU”,
advanced and will keep advancing

Copyright © 2024 Temairazu, Inc. All rights reserved.

Soon after online hotel booking sites appeared andpeople started to make bookings online, installed
application “TEMAIRAZU!”, the channel manager wasborn. This system enabling centralized management ofmultiple distribution channels have been used by many
accommodation properties.

In 2010, new ASP model channel manager“TEMAIRAZU.NET” was launched. The ability to be usedanywhere by connecting to internet had much improved
convenience and efficiency of this system. Connected to
not only domestic channels but also overseas/global
channels and travel agents. Also, became able toconnect with CRS, being efficient system for getting
bookings of inbound travelers.

With valuable feedbacks from users, new “TEMAIRAZU”
with various additional features was launched in 2015. In
July 2016, advanced version “TEMAIRAZU YIELD” waslaunched. We launched new versions, “TEMAIRAZU mini”
in Mar. 2020, and “TEMAIRAZU JIDO ” in Feb. 2024.We will
always listen to voices of customers and “TEMAIRAZU” willkeep advancing.
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Business report

2-3 Application Service Business (Temairazu)
Numbers of foreign visitors to Japan (since 2005)
35,000

Total

Asia

30,000announced by JNTO

Rapid recovery in thenumber of foreign
visitors to Japan

25,00020,00015,00010,0005,000

0CY 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2024.3
Unit : 1,000

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Business report

2-4 Application Service Business (Temairazu)
Numbers of foreign visitors to Japan from Asia (since 2010)

announced by JNTO

・Led by foreign visitors toJapan from South Korea

30,000・Recovery of foreign visitors toJapan from China is uncertain

25,000＜Compared to 2019 ＞
20,000

▲5%

Other
Asia

15,000▲14% Taiwan
10,000

+25%

South
Korea

▲75%

China

5,000

0

CY 2010

2015

2019

2023
Unit : 1,000

Copyright © 2024 Temairazu, Inc. All rights reserved.

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Business report

2-5 Application Service Business (Temairazu)
Composition of Sales in Application Services Business:◼ Fixed Monthly Income (Basic monthly charges and option charges)◼ Monthly variable income (Communication charges according to
the number of reservations)
Status：◼ Fixed Monthly Income✓ Maintained low churn rate
✓ New inquiries are on increase.
◼ Monthly variable income✓ The variable income is on increase due to increasing demand foraccommodation industry.
Result in FY2024：◼ Fixed Monthly Income:◼ Monthly Variable Income :◼ Other Income :Copyright © 2024 Temairazu, Inc. All rights reserved.

JPY 1,515 million
JPY 428 million
JPY 59 million

75.6% （YoY +7.9%）
21.4% （YoY +27.5%）
3.0%
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Business report

2-6

Application Service Business (Temairazu)

Fixed Monthly Income(m JPY)(m JPY)

450
400
350

Monthly variable income
The national travel assistance program started

120

357
346 350 352

383 387369 375300

105 103
100

85
80

87

110 110

91

73

250
60
200
150

40

100
20
50
0

Copyright © 2024 Temairazu, Inc. All rights reserved.

0

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Business report

2-7

Application Service Business (Temairazu)

In Feb. 2024 we released “TEMAIRAZU JIDO” to resolve the issue of labor shortages in
the accommodation industry by automating revenue management operations and to
maximize accommodation facility profits by streamlining operations and reducing costs.
Automation of・・・●fee adjustment●consecutive night stay limits

Automatic application by rule setting

Optimal revenue analysis

Sale price adjustment

Overseas websites

5

10% discountAccept two-night stays only

Occupancy rate

Stop sales setting

Domestic websites

70%

Overseas websites

Accept only consecutive
night stay plans

Remaining number of rooms

1

Target price2

Limit consecutive night stays toseveral nights from a specified date

Limit consecutive night stays toseveral nights from a specified date

LOS and hurdle rate

Automatic sales channel adjustment●lowest price check3

4Best rate guarantee
Accommodation facility’s
official website
Sale price7,000 jpy

Another booking site
Sale price6,500 jpy（+500 jpy）

●reporting operations
Proprietary reports

Daily
automatic
generation
at set timeLine graph data

Alert notification

Best rate checker

Rate survey

Copyright © 2024 Temairazu, Inc. All rights reserved.

Reservation status by day
Comparison to previous year
and two-years ago
Plan ranking

Bar graph data

Lead time
Booking curve

Proprietary reports

Booking analytics

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Business report

2-8 Application Service Business (Temairazu)
New system connectivity for improving operational efficiency andconvenience『TOMARO＋』：PalaceLink Inc.

A service that provides support for short-staffed accommodation facilities,
mainly for check-in processes, and enables efficient on-site operations『Shiji Enterprise Platform』：Shiji Japan Co., Ltd
A cloud-based mission-critical hotel operations system for the hospitality
industry『WASIMIL』：AZOO Inc.
An all-in-one tool that integrates all management tools essential for operating
an accommodation business including bookings, inventory, accommodation
operations administration, customer management, marketing, accounting,business analysis and more

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Business report

2-9 Application Service Business (Temairazu)
Sales channel expansion to accommodation facilities:
Cooperation with accommodation booking sites, etc.
『TravelBar 』： BEENOS Travel Inc.
A distinctive service for gathering information and creating plans for Japan
travel for Taiwanese visitors, offering accommodation and restaurant
bookings on the website『STAYFOLIO』：STAYFOLIO G.K.
With strengths in a well-designed site structure and rich content giving
diverse introductions to accommodation facilities, the reservation site iscontinuing to grow, with approximately 300,000 members in South Korea
and around 260,000 followers on Instagram『Fliggy』：Fliggy Travel Japan Co. Ltd. which is under the control of
Alibaba GroupA comprehensive travel service platform focused on providing Chinese
travelers with a flexible and comfortable travel experience, including air andtrain tickets, accommodations, restaurants, car rentals, package tours, andlocal attractions
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Business report2-10 Application Service Business (Temairazu)『EASY STAY』：Japan Holiday Travel CO.,LTDA B2B business platform that provides travel products for visiting Japan tomore than 500 travel companies in East and Southeast Asia, in addition to
China, a number that is ever-increasing.
『Hoterea』：HOTELSKIP Co., Ltd.,
Online service which provides real-time bookings at the cheapest rates formore than 150,000 hotels globally『Odakyu Travel booking site』：Odakyu Electric Railway Co., Ltd.
A travel booking site that allows travelers to freely create their own custom
travel plans『TsugiTsugi』：TOKYU CORPORATION
A subscription service that allows members to choose their preferred hotel or
lodging based of their mood at the time from more than 140 accommodation
facilities across Japan and pay a set price『WOW+』：H.I.S. Co., Ltd.
A website specializing in unique accommodation facilities: glamping facilities,
vacation rentals such as cottages for rent, traditional houses for rent, ruralaccommodation facilities offering farm experiences, and temple
accommodation facilities where guests can stay in temple lodgings
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Business report

2-11 Application Service Business (Temairazu)『ranrantour』：OKINAWA TOURIST SERVICE INC.
Tour site with special offers such as entrance tickets to tourist sites,
reservation support tailored to travelers’ travel plans, and tours with rental
cars directly managed by OKINAWA TOURIST SERVICE『YUNOKUNI YUNOTABI BEPPUONSEN』：Beppu City Industrial Collaboration and Collaboration Platform B-biz
LINK
The official Beppu City accommodation booking site, jointly operated by
Beppu City, which offers a comprehensive selection of inns and hotels in the
Beppu hot spring area
『Neut』：Pictors & Company ,Inc
A blockchain-based platform to search for and buy digital memberships tojointly own a third place to enrich one’s life, such as a hotel or villa

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Business report2-12 Application Service Business (Temairazu)
Increasing direct booking for accommodations:
new connectivity with booking engines etc.
『Kakaku.com Travel』： Kakaku.com, Inc.
A service offering collection and one-stop search of accommodation plansposted on official websites of 12 travel companies as well as accommodation
facilities『STAYNAVI BOOKING』：PEERTO Co., Ltd
Booking engine used by accommodation facilities to accept reservations
through their own official websites

System connectivity for expanding connectivity among travelcompanies, etc.
『web CONNECT』 ：FORCIA, Inc.
A SaaS-type product sales platform for travel and tourism industry

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2

Business report2-13 Report on Application Service Business (Temairazu)

Segment profit（after cost allocation）
YoY +12.4％< Topics >Unit: JPY 1,000

1,468,282
1,306,344

FY2023◼ Increase in number of accommodation bookings✓ Strong demand for accommodations by visitors
to Japan as inbound demand recovers◼ Maintained low churn rate

FY2024

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Business report

3 Report on Internet Media Business (Hikaku.com)

Segment profit（after cost allocation）
YoY -66.7％
Unit: JPY 1,000< Topics >25,584■ Due to effect from search engine algorithms,site traffic declined

8,508

FY2023■Continuous implementation of the following
measures・ Search Engine Optimization
・ User interface improvements
・ Mobile usability improvements

FY2024

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３

Forecast and future business

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development27

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FY2025 Forecast and future business development

1

Business Forecast

Unit: JPY 1,000

2,227,264

FY2024 result

2,023,990

FY2025 Forecast

1,476,791 1,499,979

1,479,139

1,500,978976,459

996,768+10.0%

+1.6%

+1.5%

+2.1%

Net Sales

Operating Income

Ordinary Income

Net Income

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FY2025 Forecast and future business development

2-1 Business Forecast for Application Service Segment

The assumptions used in forecast Assumption that demand for accommodation will remain as strong as in thefiscal year 2024 .
 Downside economic risks such as energy price hikes, price increases,
exchange rates, etc.
 Uncertain outlook for Chinese travelers to Japan, which had accounted formuch of the inbound business Plans for new accommodation properties remain at a certain level✓ Lack of staffing for accommodations✓ Increase in new facility development costs, etc.
 Continue to invest in human capital and systems to strengthenorganizational structure
The accommodations industry is expected to be revitalized in the fiscal year 2025,with demand for accommodations remaining strong due to various factors
despite certain risks.
Net sales and operating income are projected based on these assumptions.
Copyright © 2024 Temairazu, Inc. All rights reserved.

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FY2025 Forecast and future business development

2-2

Future business development of Application Service Business (Temairazu)• Responding to strong demand for accommodations .
• Aiming for products that will contribute to further sales
expansion and operational efficiency, which will help secure
the revenues of accommodation properties.

Connecting with sales
channels

Connecting with various
systems

Strengthening sales anddevelopment capabilities

Strengthening Temairazu
functions

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FY2025 Forecast and future business development

2-3 Profit forecast on Application Service Business (Temairazu)

Segment profit（after cost allocation）
Unit: JPY 1,000

1,468,282

1,490,492

Predicting+1.5％ increase
YoY

1,306,344

FY2023

FY2024

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FY2025(Forecast)31

3

FY2025 Forecast and future business development

3 Profit forecast on Internet Media Business(Hikaku.com)

Segment profit（after cost allocation）

Predicting+11.5% increase YoY

Unit: JPY 1,000

25,584・ Search Engine Optimization
・ User interface improvements
9,487

8,508

・ Improve mobile usability
・ Expansion of contents

FY2023

FY2024FY2025(Forecast)

Copyright © 2024 Temairazu, Inc. All rights reserved.

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FY2025 Forecast and future business development

4

Key Investment Areas•

Existing

Responding to the returning demand for accommodation(Application Service Business）
Increase sales and development personnel to strengthen organizational structure.
Help our customers to take in the returning demands.
→ acquire new contracts and provide solid support to customers→ System enhancements in anticipation of further increases in the number ofaccommodation reservations→ strengthen product capabilities by developing new functions and improving
usability through enhancements(value-added improvement of products)

・ New initiatives (new services, new businesses) for mid- to long-term growthNew→ Utilize our strength of "centralized information management” and engage in
new and interesting things→ Create a new business portfolio★Plans to invest JPY100-200 million over the next few years
Copyright © 2024 Temairazu, Inc. All rights reserved.

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FY2025 Forecast and future business development

5 Dividend (forecast)Continued target of 22.5% dividend payout ratio
Annual dividend for the year ending June 2025
is expected to be total JPY 35.0
Trend of dividend per ordinary share (Unit: JPY)
34.0

35.0

30.5
27.0

27.5

FY2021

FY2022

Copyright © 2024 Temairazu, Inc. All rights reserved.

FY2023

FY2024(Planned)

FY2025(Forecast)34

Company Profile
Trade Name

Temairazu, Inc.

Establishment

August 4, 2003

Account closing month

June

Capital fund

JPY 717,642,713 (As of Jun 30, 2024)

Number of shares issued

6,480,396 (As of Jun 30, 2024)

Share trading unit

100 (As of Jun 30, 2024)

Address

7F Ebisu NR Bld, 1-21-3 Ebisu, Shibuya-ku, Tokyo JAPAN

Securities code

2477 (Standard Market of the Tokyo Stock Exchange)

Auditing firm

Deloitte Touche Tohmatsu LLC

Websites“HP”“TEMAIRAZU”“Hikaku.com”

Copyright © 2024 Temairazu, Inc. All rights reserved.

https://www.temairazu.co.jp/
https://www.temairazu.com/
https://www.hikaku.com/
35

Notes on this Financial Result document
This material is intended to provide information on the performance of the financial
results of the fiscal year ending June 2023. In no way is the information intended to solicit
an investment in securities issued by the Company. The information is prepared basedon data as of the end of June 2023. Accordingly, the opinions or forecasts on thispresentation are dependent on the judgment of the Company at the time of the
preparation, and do not guarantee nor pledge accuracy or integrity of the information.
In addition, such opinions or forecasts may be changed without notice.

IR Contact
Temairazu, Inc. Corporate Planning Division
Tel: +81 (0)3-5447-6690 email: ir@temairazu.com
IR Information
https://www.temairazu.co.jp/ir/news
Press Release
https://www.temairazu.co.jp/press
Copyright © 2024 Temairazu, Inc. All rights reserved.

36