CEO Comment Volume 41, 2009.05
Concerning business and capital tie-up between DG Group and CCC Group
~Creation of a new concept of real space and cyber space~
While we declared a “second inauguration”, advocating a “Hybrid Solution Partner” by the management integration of last year, we intend to maximize the corporate value of the entire DG Group including Kakaku com, Ltd., with CCC as the best possible partner.
DG Group was established in 1995 in anticipation of the advent of the age of the Internet. Our philosophy of the inauguration is to create a “context” of the Internet, by “real space” and “cyber space”. We believe that the importance of communication with consumers in business management will increase even more, as the use of the Internet has become a part of lifestyle in the midst of diversifying lifestyles itself, since our inauguration.
Under the circumstances, we consider that fusion of the core competence of CCC, such as proposing capacity of lifestyle and customer base, with the Internet-related technologies of our Company group will exert significant synergetic effects and maximize the degree of customer satisfaction, thus leading to the further development of both groups.
Also, concurrently with a transfer of stocks of our consolidated subsidiary, Kakaku com, Ltd. to CCC, Kakaku com, Ltd. and CCC reached the basic agreement of the business tie-up. For the time being, we consider that user-oriented services will be developed, centering on T point alliance, owned by CCC. In the mid to long-term perspective, we would like to build a purchase/sensitivity “Marketing Platform” nonexistent in society, which is a product of the amalgamation of our settlement/ solution, the real shop network of CCC, and the Internet service of Kakaku com, Ltd.
Following is the image diagram of the outline of the strategic tie-up of both groups.
With respect to the settlement of the 3rd quarter of the fiscal year ending June 2009, we sincerely apologize for having caused concern by appropriating substantial deficit, such as the appropriation of impairment loss of securities held by the group, including amortization of the goodwill of our subsidiary, DG COMMUNICATIONS, Inc. on the back of deterioration of the real estate market.
For the full term, we expect to appropriate a substantial surplus, on the back of appropriation of the gain on sales of stocks of Kakaku com, Ltd. Your understanding of the situation as a reengineering process for the progress of DG Group, from the next fiscal year will be appreciated.
While the economic environment is changing drastically and unpredictably, we are steadily preparing ourselves, trying to create context for the future. Your continuous support and understanding will be valued very much.
