Extreme (6033) Investor presentation summary

Long-term growth vision

• Aims to achieve ¥100 billion in sales within 10 years, targeting an 8x increase by FY2027.

• Plans to reconstruct the business model to anticipate industry changes and realize this vision.

• Mid-term plan through FY2029 serves as the foundation for this transformation.

Current business challenges and market evaluation

• Sales have grown 3.6x over 10 years with a 15% CAGR, but operating profit growth has been volatile and margins have declined to around 10%.

• Despite high ROE (~20%), the market's growth expectations have dropped, reflected in a declining PER below 10x.

• Enterprise value has decreased to its lowest since listing, despite sales and ROE strengths.

Segment performance and issues

• Digital talent business shows steady sales but declining margins; contract development has improved profitability but slowed sales growth.

• Content property business maintains high margins but lacks scale and predictability.