Management Policies

Basic Management Policies

 Advanced Media’s vision is captured by the phrase “Achieving Human Communication Integration
 (HCI).” Our goal is evolutionary progress, achieved by improving AmiVoice accuracy and
 implementing multilingual compatibility, advanced smart features, and other initiatives. Together,
 these efforts will open the door to an era in which people can convey their intentions to machines
 in a completely natural way.

Target Management Indicators

 Advanced Media’s target management indicators are net sales and profits. Over the medium term,
 we’ve targeted annual growth in net sales of 30% or more and operating margins of 20% or more.

Management Policies

①Continuing Growth in Core Domains
In our core domains, which include CTI, medicine, and conference proceedings, we’ve established
either an exclusive or leading share of the market.

Moving forward, beyond our conventional product sales and SI solutions business, we intend to
introduce and develop flow-based stock models based on monthly fees. To ensure stable sales
growth, we will introduce and develop services that allow direct transactions with our sizable base of

We also plan to develop new core domains based on AmiVoice Cloud, a voice cloud platform.

②New Business Development and Mergers and Acquisitions (M&A)
 In general, the value of voice recognition itself is dwarfed by the potential of the services and
 applications that would ultimately rely on voice recognition.
 The value of such services and applications can be several times greater than that of voice
 recognition alone. For these services and applications, based on the approach described in (1) above,
 the actual launch of a finished product or service can pose significant challenges and take
 considerable time. One promising growth strategy we are pursuing is to leverage mergers and
 acquisitions (M&A) to generate synergies with IT or ICT companies not currently involved in voice
 recognition, or to create such a presence ourselves.

③Overseas Business
 Established in Thailand in September 2008, AMIVOICE THAI achieved profitability in the year ending
 March 2014, and in recent years iFLYTEC has been gaining traction in China. These developments
 point to the considerable demand for voice recognition overseas, especially in Asia. We plan to
 introduce and develop businesses in these countries by adapting them to local conditions and
 marketing them as discussed in (1) above. While being careful to sidestep various risks (e.g., those
 tied to geopolitics and intellectual property theft), we will prioritize rapid development in the Chinese
 market, due to its enormous scope, scale, and rate of growth.
 As part of these overseas development efforts, we will pursue strategic alliances, both in terms of
 business and capital; rapidly acquire sales channels and customer bases; secure human resources;
 and implement other initiatives to rapidly grow businesses to their targeted scales.