THE WHY HOW DO COMPANY, Inc. (3823) Stock Price

THE WHY HOW DO COMPANY is a business group that operates diversified businesses across software, content, food and beverage, education, entertainment, and lifestyle sectors through its consolidated subsidiaries. The company's core services include smartphone platforms and applications, game development, restaurant operations, educational programs, music production, and lifestyle product sales.

The company serves both corporate and individual customers. It generates revenue from corporate clients through platforms and contract development, and from consumers through game fees, food and beverage sales, salon and cosmetics sales, and music events. The education business generates revenue through paid IT training programs for job seekers and staffing/recruitment services. A key characteristic is the diversified revenue base across multiple business lines. Recent subsidiary acquisitions have increased the proportion of the lifestyle segment, with performance managed on a consolidated basis.

The business is divided into five main segments. The Solutions segment offers smartphone platforms, device integration solutions, game development, and contract development. The Food and Beverage segment manages real estate subleasing and rights management for "Shibuya Niku Yokocho." The Education segment operates IT schools with approximately six-month programs and provides staffing and recruitment services. The Entertainment segment produces music and concerts, and operates a capsule toy business. The Lifestyle segment handles import/export of tanning equipment, operates salons, and develops and sells cosmetics.

The company is positioning M&A (mergers and acquisitions) as its primary growth driver. Following its transition to a holding company structure in August 2023, it aims to enhance corporate value through long-term partnership acquisitions without predetermined exit strategies and post-acquisition integration (PMI). By strengthening its business portfolio on a consolidated basis across five domains—Solutions, Food & Beverage, Education, Entertainment, and Lifestyle—the company is diversifying revenue streams and building an organizational structure resilient to market fluctuations. Anticipating increased goodwill amortization, the company has designated EBITDA (operating profit adjusted for non-cash expenses such as depreciation) and M&A-adjusted metrics as key performance indicators, targeting sustained EBITDA profitability and growth.

The company is prioritizing the acquisition of high-value businesses and differentiation of existing operations. In the Solutions segment, it is focusing on high-recurring-revenue services including "Multi-package Installer for Android," a device management system for mobile retailers, and proprietary games, while advancing new products such as "AcrodeaIoT," which applies augmented reality (AR) technology and sports-related Internet of Things (IoT). The Food & Beverage business is transitioning from direct store operations to trademark management and subleasing, while the Education business is pursuing new services aligned with market needs while maintaining strict cost controls. Each business segment is undergoing a clear restructuring of its revenue model.

The company has concrete plans for market expansion and business growth. It is accelerating capsule toy machine placement in high-demand regions, while the Entertainment segment is building on existing copyright revenue, live events, and fan club operations through catalog releases of past hit songs and new artist development. In the Lifestyle segment, the acquisition of Acrodea Still An Corporation as of September 30, 2025, brings the nation's leading tanning equipment business, cosmetics, bridal services, and glamping operations into the group, contributing to overall revenue expansion.

The company is strengthening competitiveness through both technological innovation and internal management. By combining AR and IoT technologies with existing platforms and operational expertise, it aims to create new revenue streams. To support sustained M&A execution, the company is building capabilities in sourcing, due diligence, and post-acquisition integration, while pursuing cost reduction through sales and administrative expense efficiency, strengthening internal controls including subsidiaries, and enhancing corporate governance to drive sustainable corporate value creation.