Business Environment and Issues to be Addressed

(From the Annual Securities Report disclosed on June 22, 2026)
https://ssl4.eir-parts.net/doc/3853/yuho_pdf/S100YGH9/00.pdf

With the software technologies cultivated since our founding at the core of the business, our Group has strategically expanded its business operations into growth areas such as AI, robotics, and digital currencies. To respond more flexibly to the rapidly changing market environment and drive sustained strong growth, we will accelerate our efforts in the key areas outlined below.

1. Further Enhancing Corporate Governance

Since our establishment, Asteria has consistently appointed two or more outside directors. Since June 2015, they make up the majority of our board to ensure objective decision-making and oversee execution with an outside perspective and expertise. We will continue to prioritize constructive dialogue with shareholders and board diversity. We will also enhance corporate governance by strengthening risk management systems in line with our business expansion, and by improving internal controls across the Group, including group companies and investees.

2. Creation of New Market Opportunities in Software and Hardware

To further increase revenues from sales of our products, we aim to establish a firm position in each field by proposing specific use cases that effectively address market needs. In addition to our existing software business, we are further expanding our integrated solutions to include hardware, robotics, and stablecoins. Our Group will focus on the following high-potential areas.

2-1. AI Integration Market
As companies accelerate their digital transformation efforts, generative AI and autonomous AI agents are expected to see significant growth in the medium to long term. We will continue to advance the AI-native transformation of the Warp series, Gravio, Handbook X, Platio, and Artefacts. We will also continue to accelerate the practical application and value creation of information services leveraging AI and related technologies. This will be achieved through collaboration with Asteria Artificial Recognition Technology, LLC (Asteria ART) which specializes in robotics AI R&D, Asteria Canvas Inc., which offers an enterprise no-code application development platform, and external partner companies.

2-2. Physical AI & Robotics Integration Market
As the adoption of robotics and physical AI accelerates across manufacturing, logistics, space development, and other industries, IoT and edge computing – the next-generation enabling technologies that underpin these systems – are also expected to see market growth. Building on our AI-powered edge platform “Gravio” and robot application development support platform “Artefacts”, we will leverage our strengths in device, cloud and system integration to deliver unified software and hardware solutions. We will also expand our business scope to include the development, import, export and provision of robotics products, components and related equipment, to establish ourselves as a key provider of DX infrastructure for the physical AI domain.

2-3. Digital Currency & Blockchain Market
Digital payment instruments (including stablecoins), crypto assets, central bank digital currencies (CBDCs), and digital tokens (such as NFTs, utility tokens, security tokens) are steadily evolving. These technologies underpin significant changes in payment processing, asset management, and rights distribution. We view information services that utilize these digital currencies and tokens as a new business domain. Through R&D and strategic investments in related technologies, we will continue to build a foundation in next-generation financial infrastructure and Web3.

3. Strengthen Strategic Investments and Post-Investment Management Structure

We actively make strategic investments in promising companies to enhance corporate value over the medium to long term, focusing on synergies, new market entry, technology acquisition and deepening partnerships. A key focus of this strategy is growth areas based on the 4D concept (Data, Devices, Decentralization, and Design), pursuing opportunities that complement our core business while maximizing the value of our assets.

We recognize that changes in the performance of our investee companies and fluctuations in market conditions may affect the valuation of our investment securities, which could impact our financial position and operating results. To address these risks, we have been refining our investment decision-making process and strengthening our post-investment management framework.

Moving forward, we will continue to maintain a flexible operational policy in response to external environments, ensuring that appropriate exit strategies can be selected and executed in a timely manner based on market conditions. At the same time, we will strengthen the performance of the entire investment portfolio by ensuring proper management of existing holdings and ensuring liquidity.

4. Overseas Expansion

Since the Group’s founding, our aim has been to develop and provide software that can be used globally. We are actively expanding internationally with a focus on Artefacts, Gravio and Handbook X, and strengthening our products to meet local needs. Our software is available in 3 languages (Japanese, English, and Chinese). This multilingual capability provides a strong foundation for the strategic global rollout of both existing and future products.

5. Strengthening Human Resources to Support Growth

The number of client companies using our products and services is growing each year, along with the diversity of target industries and business types. We will continue to expand our multi-product and multi-service strategy and accelerate globalization, while solidifying growth in software, physical AI, and digital currency. To achieve this, we place importance on the timely recruitment and training of talent across all functions, including development, marketing, sales, and management. Our company will place this talent strategy at the core of our efforts to strengthen sustainable competitiveness.