Strengthening segment profitability and performance management and clarifying accountability

「Because organizational changes aimed at business selection and concentration and the rationalization of indirect functions were implemented during the current consolidated fiscal year, part of the businesses previously classified in the Other segment was included in adjustments, as was part of the expenses previously allocated to each business segment as common segment expenses.」

「Because organizational changes aimed at business selection and concentration and the rationalization of indirect functions were implemented during the first quarter of the consolidated fiscal period, part of the businesses previously classified in the Other segment was included in adjustments, as was part of the expenses previously allocated to each business segment as common segment expenses.」

「Because organizational changes aimed at business selection and concentration and the rationalization of indirect functions were implemented during the first quarter of the current consolidated fiscal period, part of the businesses previously classified in the Other segment was included in adjustments, as was part of the expenses previously allocated to each business segment as common segment expenses.」

「From the first quarter of the consolidated fiscal period, the Company changed the classification of the business segments presented as reportable segments and the allocation method for common segment expenses.」

「From the first quarter of the consolidated fiscal period, the Company changed the classification of the business segments presented as reportable segments and the allocation method for common segment expenses.」

「From the first quarter of the current consolidated fiscal period, the Company changed the classification of the “day service business,” “dementia care day service business,” and “small-scale multifunctional in-home care business” from the facility-based care business segment to the home-based care business segment, and changed the classification of the “functional training day service business” from the Other segment to the home-based care business segment. Following a review of the characteristics of each business in connection with changes to the management structure, the Company determined that these businesses had greater affinity with the home-based care business segment than with their previous segments, and that changing the segment classification would enable more effective performance evaluation.」

「From the current consolidated fiscal year, the Company changed the presentation classification of part of its property-related expenses (land and rent, utilities, and depreciation) and personnel expenses (salaries and allowances, employee welfare expenses, and provision for bonuses), previously recorded as selling, general and administrative expenses, to cost of sales.」

「From the first quarter of the consolidated fiscal period, the Company changed the presentation classification of part of its property-related expenses (land and rent, depreciation, and utilities) and personnel expenses (salaries and allowances, provision for bonuses, bonuses, etc.), previously recorded as selling, general and administrative expenses, to cost of sales. This change resulted from a review of how expenses arise and their relationship with net sales, in order to clarify the matching of costs and revenues and further refine budget-to-actual management.」

「From the first quarter of the consolidated fiscal period, the Company changed the presentation classification of part of its property-related expenses (land and rent, depreciation, and utilities) and personnel expenses (salaries and allowances, provision for bonuses, bonuses, etc.), previously recorded as selling, general and administrative expenses, to cost of sales. This change resulted from a review of how expenses arise and their relationship with net sales, in order to clarify the matching of costs and revenues and further refine budget-to-actual management.」

「From the first quarter of the current consolidated fiscal period, the Company changed the presentation classification of part of its property-related expenses (land and rent, depreciation, and utilities) and personnel expenses (salaries and allowances, provision for bonuses, bonuses, etc.), previously recorded as selling, general and administrative expenses, to cost of sales. This change resulted from a review of how expenses arise and their relationship with net sales, in order to clarify the matching of costs and revenues and further refine budget-to-actual management.」

「Regarding the allocation method for lease transactions, amounts recognized as lease assets, depreciation and interest-equivalent amounts, and the difference between these amounts and rental expenses had not previously been allocated to individual business segments. From the current consolidated fiscal year, these amounts have been allocated to each business segment. This change resulted from clarifying responsibility for each segment in connection with strengthened profitability and performance management.」

「Regarding the allocation method for lease transactions, amounts recognized as lease assets, depreciation and interest-equivalent amounts, and the difference between these amounts and rental expenses had not previously been allocated to individual business segments. From the first quarter of the consolidated fiscal period, these amounts have been allocated to each business segment. This change resulted from clarifying responsibility for each segment in connection with strengthened profitability and performance management.」