1. Koh-EN TV

2025/05/09

Notice Concerning the Formulation of the Second Medium-Term Management Plan

Positioning of the Medium-Term Management Plan and Management Objectives

The ” New Oak Capital_First Medium-Term Management Plan ” announced on June 17, 2022 is as follows.

		First Medium-Term Management Plan	2nd Mid-Term Management Plan
Positioning	25, 2, 60″ to Reform/transformation period	25, 2, 60″ Establishing a firm footing	Achievement of “25, 2, 60”
Management Objectives	Business restructuring Extraordinary loss recorded	Return to profitability on a consolidated and non-consolidated basis and resume dividend payments	Secure stable earnings and continue business growth

3. growth strategy

In order to achieve the goal of “25.2.60,” we will break through the current situation with the strategy of “expanding our business horizontally (expansion) and vertically (deepening).

Group Growth Strategy (1)

Current Business Areas

• Growth Support
• Beauty &
  Health Care
• Renewable
  Energy
• Digital
  Marketing
• Media
• Brand
• Resort
• Restaurant Revitalization
• Shared
  Services

Strategy 1

Dig deeper vertically into the current business to
become a company that can generate solid profits.

New Business Areas

• +C
  Business
• +B
  Business
• +A
  Business

Strategy 2

Expand business horizontally and increase the number of new
“NAKAMA”.

Group Growth Strategy (2)

We will open up new possibilities through horizontal business development and welcome new “NAKAMA” to create value together.

Strategies for each group company

Renewable Energy Business

Develop and expand the Group’s renewable energy business nationwide to contribute to the realization of a decarbonized society.

Three-Year Plan

	Fiscal year 2025	Fiscal year 2026	Fiscal year 2027
Net Sales	2,530,000	5,966,000	8,530,000
Operating income	57,500	338,000	559,000
Operating profit ratio	2%	6%	7%

Initiatives for Realization

summary
#1	Service Area Expansion Power Supply Development (Low-voltage) has been conducting sales activities mainly in Hokkaido, but will expand its service deployment area in the future.
#2	Business Domain Expansion Currently, the company’s main focus is on the development of low-voltage power sources, but in the future it will expand its business domain to include high-voltage and grid storage batteries.
#3	Sales target expansion Currently, sales activities are focused on new electric power companies and off-site PPA providers, but the scope of sales activities will be expanded to include corporations, local governments, and public agencies.
#4	Restructured maintenance business The company will review its current contractual arrangements and secure revenue by divesting insurance and revising rates, while building a new O&M business to expand its operations.

Beauty & Health Care Business

The company aims to be a “revolutionary child” that will pioneer the future of the health and beauty industry by bringing about innovations that are not bound by existing frameworks.

Three-Year Plan

	Fiscal year 2025	Fiscal year 2026	Fiscal year 2027
Net Sales	596,000	3,459,000	4,534,000
Operating income	-359,200	325,800	888,800
Operating income ratio		9%	20%

Initiatives for Realization

summary
#1	Beauty Product Enhancement Create a highly concentrated serum as a second hit product.
#2	Strengthening Brand Strength Incorporate the store name into the product name.
#3	B2B development Develop a low-priced sub-line for B2B.
#4	Enhanced store subs. Cross-selling of “health care products” & “beauty products
#5	Global Expansion Cross-border EC Challenges

Growth Support Business

Establish a business model for UNIVA Securities to provide strategic financing and corporate value enhancement solutions.

Three-Year Plan

	Fiscal year 2025	Fiscal year 2026	Fiscal year 2027
Net sales	187,000	246,000	293,000
Operating income	4,620	26,120	49,720
Operating profit ratio	2%	11%	17%

Initiatives for Realization

summary
#1	Providing detailed support and M&A strategies that differ from those of large securities firms by leveraging boutique expertise The co-creation business model will work with UNIVA Securities, a financial instruments firm, and its client network, including M&A firms and IFAs, to establish a proper transaction mechanism.
#2	Building an ecosystem around the UNIVA FUND To establish a system that provides investors with stable income and capital gains and companies with growth capital and management support, thereby benefiting both investors and companies.

Digital Marketing Business

Achieved No. 1 in the industry in word-of-mouth acquisition support services and went public.

Three-Year Plan

	Fiscal year 2025	Fiscal year 2026	Fiscal year 2027
Net sales	355,000	426,000	519,000
Operating income	1,890	15,200	52,000
Operating profit ratio	1%	4%	10%

Initiatives for Realization

summary
#1	Aiming to be listed on TOKYO PRO Market Planned for FY2026 to improve creditworthiness, name recognition, talent acquisition, and business networking of underperforming companies.
#2	Kiki-Komi service (store to EC) expansion We will leverage our accumulated functions and know-how to take on the challenge of entering a larger market and providing high-quality services.
#3	Expanding the area of IITCO’s listing and monetization The excursion information media “Itoko” will start in Karuizawa, Nagano, and expand nationwide, including to major cities, with the aim of generating revenue.

5. Human Capital Strategy

We emphasize the value of employees as “capital” (human resources) and aim to benefit both employees and the company through maximizing their potential.

basic policy

Improve the expertise of each employee and foster professionalism,
fairly evaluate the growth process, support challenges, and promote diversity management.

• Promote recruitment of human resources with the dual focus of “securing immediate workforce” and “securing next-generation human resources”.
• Formulate and promote cross-group human resource development/training programs
• Support for employee career independence

• Fair and appropriate personnel treatment through a job-based personnel system
• Establishment and operation of a compensation system that emphasizes performance/performance incentives
• Establishment and operation of effective benefit programs
• Building solid engagement through one on one meetings

• Further promotion of diverse work styles Flexible work arrangements and infrastructure to support these arrangements
• Diversification of the decision-making body for promoting women’s advancement and absorbing innovative proposals
• Promote health management to enhance employee well-being

6. Capital Strategy

B/S	Secured funds through the sale of unneeded assets and unprofitable businesses, and improved the current ratio to over 200%.	Increased capital to raise the equity ratio to over 50% and strengthen the company’s financial base.	Improved and stabilized the equity ratio to over 60% by accumulating business profits.
P/L	The company will work to raise the level of profitability by turning around existing businesses, entering new businesses, and executing new M&As.	Strengthen the profitability of the business portfolio by concentrating funds on businesses that are expected to be highly profitable.	We aim to become a stable growth corporate group that achieves ROIC of 7% or more by shifting to a management style that is conscious of return on invested capital costs.
Other	Aim to maximize shareholder value through sustained growth and enhanced profitability. To realize our mid- to long-term growth strategy, we will consider flexible capital policies, including third-party allotment of new shares, after carefully assessing the necessity and market environment. Consider granting stock options to all Group employees.