Securities Report - 105th Fiscal Period (2025/04/01 - 2026/03/31)

Nishinippon Shimbun Co., Ltd. Securities Report - 105th Fiscal Period (2025/04/01 - 2026/03/31)

As a comprehensive media company headquartered in Fukuoka Prefecture, the company operates businesses including newspaper and magazine publishing, digital media, advertising, events, education, and real estate. This report discloses management performance, financial condition, and strategic direction for the 105th fiscal period (April 1, 2025 - March 31, 2026) under the Financial Instruments and Exchange Act.

Management Policy and Performance Overview

Positioning itself as a 'trusted media group rooted in the local community,' the company continues to pursue accuracy, speed, and originality in information delivery. Amid declining print media trends, it is accelerating its shift to digital platforms. As of March 31, 2025, the number of users on Nishinippon Shimbun Digital exceeded 380,000, with paid subscribers reaching 160,000, a 12% increase year-on-year.

Sales for the 2025 fiscal year are projected at JPY 182 billion, an increase of 0.8% from the previous year, with digital-related revenue expected to account for 34% of total revenue. The digitalization rate of advertising revenue has reached 58%, compensating for the decline in print advertising and sustaining growth.

Financial Condition and Use of Funds

The company maintains a sound financial structure with a capital of JPY 4 billion and an equity ratio of 38.5%. Key areas for capital investment include the development of an AI-powered article recommendation engine, enhancement of video streaming platforms, and digital infrastructure upgrades at regional branch offices. Capital expenditure for FY2025 is planned at JPY 6.5 billion, a 15% increase from the previous year.

Risk Factors

Key risks include further decline in print media demand, intensifying competition in the digital advertising market, workforce aging and recruitment challenges, and rising printing and logistics costs due to inflation. In response, the company is diversifying revenue models, actively recruiting young talent, and expanding its subscription-based services.

Social Responsibility and ESG Initiatives

The company aims to reduce CO2 emissions by 40% by 2030 compared to 2019 levels, implementing energy-saving measures at printing plants, promoting digital editions, and advancing remote work. The ratio of female managers reached 22.3% as of March 31, 2025, with a target of exceeding 30% by 2030.

Future Outlook

Sales forecast for the fiscal year ending March 2026 is JPY 185 billion, with an operating profit forecast of JPY 1.2 billion. The company plans to further monetize digital media and host over 10 large-scale events nationwide annually. Additionally, a pilot project for AI-driven personalized news delivery will commence in summer 2025.