Shortages in Printing Paper Supply and Upward Price Pressure

「Prolonged geopolitical tensions could trigger a sharp rise in crude oil and other resource and energy prices, leading to shortages of petroleum products and other supplies and a significant increase in procurement costs. This would directly drive up the manufacturing and procurement costs of printing paper, ink and other materials essential to publishing the Group's main products, its information magazines, as well as logistics costs such as fuel for posting and delivering them to individual households, creating a major risk factor that could significantly squeeze the Company's earnings.」

「The regional free magazines that are the Group's main products are exposed to rising printing paper and distribution costs. In response, the Group has continued to implement thorough cost reductions,」

「The regional free magazines that are the Group's main products are exposed to rising printing paper and distribution costs. In response, the Group has continued to implement thorough cost reductions,」

「We continued efforts to reduce costs from the previous fiscal year. Although the quarterly cost ratio improved after reaching 60.5% in the first quarter, when it deteriorated significantly, to 57.9% in the second quarter and 56.9% in the third quarter, it rose again to 58.8% in the fourth quarter.」

「Gross profit was ¥3,044.163 million, down 6.6% year on year, because cost increases, including soaring printing paper prices, exceeded cost reductions resulting from the suspension of some company-operated magazines and the consolidation and closure of locations, while the cost ratio for sales promotion also increased.」

「Our operating environment remains challenging, as cost-increasing factors affecting our proprietary media have intensified, including soaring printing paper prices and upward pressure on distribution costs caused by labor shortages.」

「During the cumulative second quarter period, the Company's operating environment became increasingly challenging due to the continued shift toward low-cost online advertising, difficulties securing human resources and soaring printing paper prices, among other factors.」

「Our operating environment has become increasingly challenging, including exposure to upward pricing pressure on printing paper against a backdrop of paper shortages.」