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Dear Our Stakeholders

We would like to thank all of our stakeholders for your continued support of the SANYEI group.

In this March, our Group completed the second year of our three-year medium-term management strategy, “SANYEI 2025”, which began in FY2023. This medium-term management strategy was formulated based on our long-term vision for the company over the next ten years, with specific milestones set for the initial three-year period. Owing to steady progress through the second year, we achieved our profit target for the third year -an ordinary profit of \2.0 billion- a full year ahead of schedule. This performance was driven by robust consumer demand, which boosted sales of related products, as well as by solid growth in sales related EC positioned as one of our key growth drivers under the current medium-term strategy which increased by more than 10% year-on-year.
On the other hand, we have addressed the vulnerability of our retail business, which became apparent during the COVID-19 pandemic before this three-year plan, as one of the key issues in “SANYEI 2025” and are working to resolve it. We recognize that reviewing our business portfolio should be pursued continuously and sustainably. Regarding restructuring unprofitable businesses, which has been a challenge since the COVID-19 pandemic, the final year of “SANYEI 2025” will mark the final phase of these processes.

In this final year of the “SANYEI 2025”, the external environment has become increasingly uncertain, and there are signs of a slowdown in the market environment that has supported performance through fiscal 2024. At the same time, it remains essential to break through the long-standing challenge of stagnant sales growth. As part of our growth strategy, we will strengthen investment in several key areas.
As a specific initiative, we established the New Channels Development Division in April of this year to further accelerate the growth of our e-commerce (EC) business, which has already shown strong performance as one of our key growth drivers. We plan to expand the range of product categories offered to customers through our EC channels and will also consider methods of M&A for strategic growth opportunities. Last year, we launched a service business that provides our expertise in EC operations to clients. In addition to the several clients already utilizing this service, we will expand our sales efforts here and promote the development of new sales channels.
In the Brand business, we will continue to focus on discovering and expanding new brands. Alongside our existing activities, which include developing, importing, and selling brand products, we will also initiate for the expansion of multiple functions by engaging in OEM manufacturing, thereby taking on the supply functions of branded products.

While we anticipate a decrease in profit for FY2025 (the fiscal year ending March 2026), we see this period as a year to solidify the foundation toward our goal of achieving ¥4.0 billion in ordinary profit by FY 2033. We will review our business portfolio by strengthening growth areas and restructuring unprofitable businesses, thereby reinforcing the foundation of the SANYEI Corporation Group. Simultaneously, we will solidify the starting point for a new medium-term management strategy beginning in FY2026.

Furthermore, FY2026 will be a significant year for the SANYEI Corporation Group, as it marks the 80th anniversary of our founding. All of us at SANYEI Corporation are committed to establishing a growth trajectory focused on the next generation of the company.

We sincerely request your further support and encouragement from all our stakeholders to the SANYEI Group.

Yours Sincerely,
June 2025
MASAKI MIZUKOSHI
President & CEO