# THE WHY HOW DO COMPANY, Inc.: business model and financials

> Latest period: FY ending Aug 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第21期(2024/09/01－2025/08/31) (S100X7LO)
> Page: https://vizora.meequs.com/en/company/why-how-do
> Retrieved: 2026-09-30T18:47:52.509Z

## Company

THE WHY HOW DO Company, founded in 2004, is a company in IT Services & System Integration listed on TSE Standard. It has 76 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | THE WHY HOW DO COMPANY, Inc. |
| Ticker | 3823 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3823.T) |
| Listing | TSE Standard |
| Head office | 東京都新宿区愛住町22番地 |
| Representative (per filing) | 代表取締役社長 亀田 信吾 |
| Founded | Jul 2004 |
| Share capital | ¥2.06B |
| Employees (consolidated) | 76 |
| Average salary (parent only) | ¥4.7M |
| Fiscal year end | August |
| Website | twhdc.co.jp (https://twhdc.co.jp/) |
| Corporate number | 7013201013779 |
| EDINET | E05630 |
| Industries (Vizora) | IT Services & System Integration, Games, Real Estate Development & Leasing, Education, HR & Staffing, Music & Live Entertainment, Toys & Hobbies, Beauty Salons, Cosmetics, Waste Management & Recycling |

> Profile source: annual securities report (S100X7LO, filed 2025-11-28). As of filing

## Five-axis industry profile

Primary industry: Toys & Hobbies (2025-08-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Profitability | 13.6 | 11 |
| Efficiency | 13.6 | 11 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 57% of THE WHY HOW DO Company's sales come from entertainment business, with SOLUTION BUSINESS and Lifestyle Business making up much of the rest.
- It lost about ¥4 for every ¥100 of sales at the operating level.
- Revenue changed +134.3% from the prior year.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥1.75B |  |
| Operating income | -¥73M | Margin -4.2% |
| Net income | -¥69M | Margin -3.9% |
| Free cash flow | -¥113.3M |  |
| Largest business | entertainment business | of segment revenue 56.9% |
| Employees (consolidated) | 76 |  |
| EPS | ¥-2.13 |  |
| Book value per share | ¥12.25 |  |
| Equity ratio | 62.2% |  |
| Shares outstanding | 110,420,693 |  |
| Shareholders | 28,311 |  |
| Average salary (parent only) | ¥4.7M | Filing company only |
| Cash ratio | 50.4% | Cash ÷ revenue 71.2% |
| Vs. industry median margin | -10.4 pp | Music & Live Entertainment |
| ROA | -3.4% | Derived from disclosed figures |

## Notable figures

- FY2025, one segment accounts for 63% of positive segment profit
- FY2025, cash is 50% of total assets

## What changed in 5 years

| Metric | FY ending Aug 2020 | FY ending Aug 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥1147162000 | ¥1751539000 | +52.7% |
| Operating income | ¥-431857000 | ¥-72956000 | — |
| Operating margin | -37.6% | -4.2% | +33.5 pp |
| Employees | 40 people | 76 people | +90.0% |
| Cash and equivalents | ¥591482000 | ¥1246966000 | +110.8% |

### Change in segment revenue mix

Span: FY ending Aug 2020 → FY ending Aug 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| ソリューション事業 → ソリューション事業 | 15.1% |
| ソリューション事業 → 事業再編・廃止 | 46.1% |
| 飲食関連事業 → 飲食関連事業 | 3.0% |
| 飲食関連事業 → 事業再編・廃止 | 24.9% |
| 教育関連事業 → 教育関連事業 | 5.3% |
| その他 → その他 | 0.3% |
| その他 → 事業再編・廃止 | 5.4% |
| 新設・再編 → 教育関連事業 | 4.8% |
| 新設・再編 → エンタテインメント事業 | 56.9% |
| 新設・再編 → ライフスタイル事業 | 14.7% |

Segment revenue source references: 10 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| entertainment business | 2 years | +102.3% | ¥996503000 | 16.7% | 2 |
| SOLUTION BUSINESS | 5 years | -17.7% | ¥264170000 | 12.0% | 2 |
| Lifestyle Business | — | — | ¥257769000 | -14.1% | 2 |
| EDUCATIONAL RELATED BUSINESS | 5 years | +23.7% | ¥176009000 | 26.8% | 2 |
| Food and beverage business | 5 years | -30.5% | ¥51786000 | 28.0% | 2 |
| Other | 5 years | -39.4% | ¥5300000 | 60.2% | 2 |

## Income statement（FY ending Aug 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 1,752 | 100.0% | S100X7LO |
| Cost of revenue | 851 | 48.6% | S100X7LO |
| Gross profit | 900 | 51.4% | S100X7LO |
| SG&A | 973 | 55.6% | S100X7LO |
| Operating income | -73 | -4.2% | S100X7LO |
| Ordinary income | -786 | -44.9% | S100X7LO |
| Pretax income | -7 | -0.4% | S100X7LO |
| Income tax | 49 | 2.8% | S100X7LO |
| Net income | -56 | -3.2% | S100X7LO |
| Net income attributable to owners | -69 | -3.9% | S100X7LO |

## Per ¥100 of revenue（FY ending Aug 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 49 |
| SG&A | 55 |
| Operating income | -4 |
| (Ref.) Net income | -4 |

### Margin funnel

Gross margin 51.4% → Operating margin -4.2% → Net margin -3.9%
Derived from reported figures (DERIVED).

## Year over year（FY ending Aug 2024 → FY ending Aug 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 748 | 1,752 | 1,004 | +134.3% |
| Gross profit | 355 | 900 | 545 | +153.7% |
| Operating income | -248 | -73 | 175 | — |
| Net income attributable to owners | -962 | -69 | 893 | — |
| Operating cash flow | -54 | -64 | -10 | — |
| Free cash flow | -844 | -113 | 731 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Aug 2019 | 1,554 | -103 | -6.6% | -278 | 41 | -141 | S100KA6M |
| FY ending Aug 2020 | 1,147 | -432 | -37.6% | -1,051 | -200 | -355 | S100N8AE |
| FY ending Aug 2021 | 902 | -514 | -57.1% | -581 | -315 | -336 | S100PPJJ |
| FY ending Aug 2022 | 919 | -162 | -17.6% | -403 | -139 | -172 | S100SNQZ |
| FY ending Aug 2023 | 941 | -244 | -25.9% | -348 | -371 | -422 | S100UVHX |
| FY ending Aug 2024 | 748 | -248 | -33.2% | -962 | -54 | -844 | S100X7LO |
| FY ending Aug 2025 | 1,752 | -73 | -4.2% | -69 | -64 | -113 | S100X7LO |

## People and productivity（FY ending Aug 2025, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥23M |
| Operating income per employee (consolidated) | -¥959.9K |
| Net income per employee (consolidated) | -¥908.5K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 39 | 33 | 33 | 31 | 76 |
| Average salary (parent company) | ¥5.5M | ¥5M | ¥4.9M | ¥4.6M | ¥4.7M |
| Average age (parent company) | 45.5 years | 45.5 years | 50.5 years | 47.8 years | 46.7 years |
| Average tenure (parent company) | 8.5 years | 7.1 years | 4.4 years | 5.1 years | 6.2 years |

Year over year: Employees (consolidated) +145.2% · Revenue (consolidated) +134.3%

## Segments（FY ending Aug 2025, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| SOLUTION BUSINESS | 264 | 15.1% | 32 | 12.0% |
| Food and beverage business | 52 | 3.0% | 15 | 28.0% |
| EDUCATIONAL RELATED BUSINESS | 176 | 10.0% | 47 | 26.8% |
| entertainment business | 997 | 56.9% | 167 | 16.7% |
| Lifestyle Business | 258 | 14.7% | -36 | -14.1% |
| Industrial waste treatment Business,Reportable Segments[menber] | — | 0.0% | -23 | — |
| Other | 5 | 0.3% | 3 | 60.2% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Profit share | Margin |
| --- | ---: | ---: |
| SOLUTION BUSINESS | 12.1% | 12.0% |
| Food and beverage business | 5.5% | 28.0% |
| EDUCATIONAL RELATED BUSINESS | 17.9% | 26.8% |
| entertainment business | 63.3% | 16.7% |
| Lifestyle Business | — | -14.1% |
| Industrial waste treatment Business,Reportable Segments[menber] | — | — |
| Other | 1.2% | 60.2% |

Loss-making segment (excluded from profit shares): Lifestyle Business -36 JPY mn

Loss-making segment (excluded from profit shares): Industrial waste treatment Business,Reportable Segments[menber] -23 JPY mn

Segment → industry: SOLUTION BUSINESS → IT Services & System Integration / SOLUTION BUSINESS → Games / Food and beverage business → Real Estate Development & Leasing / EDUCATIONAL RELATED BUSINESS → Education / EDUCATIONAL RELATED BUSINESS → HR & Staffing / entertainment business → Music & Live Entertainment / entertainment business → Toys & Hobbies / Lifestyle Business → Beauty Salons / Lifestyle Business → Cosmetics / Industrial waste treatment Business,Reportable Segments[menber] → Waste Management & Recycling

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Aug 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -64 | -3.7% | S100X7LO |
| Capital expenditure | 49 | 2.8% | S100X7LO |
| Free cash flow | -113 | -6.5% | 算出 |
| Investing cash flow | -24 | -1.4% | S100X7LO |
| Financing cash flow | 740 | 42.3% | S100X7LO |
| Change in cash | 651 | 37.2% | S100X7LO |
| Cash and equivalents | 1,247 | 71.2% | S100X7LO |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 736 | 1,104 | 520 | 596 | 1,247 | S100SNQZ, S100UVHX, S100X7LO |
| Total assets | 1,406 | 1,670 | 1,354 | 1,534 | 2,473 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Net assets | 748 | 1,103 | 813 | 777 | 1,578 | S100SNQZ, S100UVHX, S100X7LO |
| Share capital | 766 | 1,115 | 1,115 | 1,618 | 2,062 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Property, plant and equipment | 102 | 30 | 58 | 417 | 75 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Intangible assets excluding goodwill | 271 | 87 | 155 | 46 | 135 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Goodwill | 196 | 3 | 15 | 13 | 108 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Current assets | 956 | 1,413 | 830 | 820 | 1,735 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Current liabilities | 266 | 222 | 241 | 251 | 436 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Trade payables | — | — | 22 | 23 | 96 | S100UVHX, S100X7LO |
| Short-term borrowings | 151 | 95 | 61 | 46 | 65 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Long-term borrowings | 368 | 322 | 276 | 415 | 271 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Total liabilities | 658 | 567 | 541 | 757 | 895 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Non-controlling interests | — | 6 | 54 | 17 | 30 | S100SNQZ, S100UVHX, S100X7LO |
| Equity attributable to owners of parent | 726 | 1,022 | 674 | 718 | 1,537 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Retained earnings | -1,951 | -2,354 | -2,702 | -3,663 | -3,732 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |
| Treasury stock | -0 | -0 | -0 | -0 | -0 | S100PPJJ, S100SNQZ, S100UVHX, S100X7LO |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 50% | S100X7LO |
| Property, plant and equipment | 3% | S100X7LO |
| Intangibles and goodwill | 10% | S100X7LO |
| Other assets | 37% | S100X7LO |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 4% | S100X7LO |
| Other liabilities | 32% | S100X7LO |
| Equity | 64% | S100X7LO |
| Other liabilities | 0% | S100X7LO |

### Balance sheet history

| Metric | FY ending Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 1,406 | 1,670 | 1,354 | 1,534 | 2,473 |
| Equity | 748 | 1,103 | 813 | 777 | 1,578 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 736 | 1,104 | 520 | 596 | 1,247 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 4.3% | S100X7LO |
| Fixed assets ÷ total assets | 3.0% | S100X7LO |
| Goodwill ÷ parent equity | 7.1% | S100X7LO |

Goodwill over 4 years: 196 → 108 JPY; total investing cash flow: -1,011 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 50.4% |
| Cash ÷ revenue | 71.2% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | — |
| Cash vs. profit gap | 5 JPY mn |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 2.8% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | — | —× | -41.3% | —× | — | S100PPJJ |
| 2022 | — | —× | -26.2% | —× | — | S100SNQZ |
| 2023 | — | —× | -23.0% | —× | — | S100UVHX |
| 2024 | — | —× | -66.6% | —× | — | S100X7LO |
| 2025 | — | —× | -3.4% | —× | — | S100X7LO |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 田邊 勝己 | Major shareholder | 5.7% | 2025-08-31 |
| 楽天証券株式会社 | Major shareholder | 3.0% | 2025-08-31 |
| 株式会社ＳＢＩ証券 | Major shareholder | 1.6% | 2025-08-31 |
| 江藤 重光 | Major shareholder | 1.1% | 2025-08-31 |
| 岩田 達也 | Major shareholder | 1.0% | 2025-08-31 |
| 豊岡 幸治 | Major shareholder | 0.7% | 2025-08-31 |
| 株式会社ロビージャパン | Major shareholder | 0.7% | 2025-08-31 |
| モルガン・スタンレーМＵＦＧ証券株式会社 | Major shareholder | 0.7% | 2025-08-31 |
| ＳМＢＣ日興証券株式会社 | Major shareholder | 0.7% | 2025-08-31 |
| ＪＰモルガン証券株式会社 | Major shareholder | 0.6% | 2025-08-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第21期(2024/09/01－2025/08/31) | S100X7LO | 2025-11-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100X7LO,, |
| 有価証券報告書－第20期(2023/09/01－2024/08/31) | S100UVHX | 2024-11-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100UVHX,, |
| 訂正有価証券報告書－第19期(2022/09/01－2023/08/31) | S100SNQZ | 2024-01-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100SNQZ,, |
| 有価証券報告書－第18期(令和3年9月1日－令和4年8月31日) | S100PPJJ | 2022-11-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100PPJJ,, |
| 訂正有価証券報告書－第17期(令和2年9月1日－令和3年8月31日) | S100N8AE | 2022-01-14 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100N8AE,, |
| 有価証券報告書－第16期(令和1年9月1日－令和2年8月31日) | S100KA6M | 2020-11-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100KA6M,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).