Improving Profitability through Efficient Business Operations and Cost Reduction

「The company will minimize cost increases as much as possible by regularly tightening expense management and reviewing suppliers, optimizing employees' working hours through reviews of operating procedures, and improving administrative efficiency through the use of ICT and AI.」

「Although costs for daily necessities, equipment and other items required to provide services continued to trend higher due to rising prices, the company conducted a comprehensive review of purchasing and procurement and continued to reduce expenses.」

「The company absorbed higher personnel expenses resulting from salary increases and other factors through cost controls including operational improvements and expense reviews. Operating profit increased by ¥87 million, or 20.2%, from the previous consolidated fiscal year to ¥520 million.」

「The company continued to invest in measures that contribute to improving the quality of each service, including cost reductions through expense and operational reviews, enhanced training and education, human-resource development for employees who will lead the company in the future, and salary increases. At the same time, it worked to expand services suited to local needs and to grow businesses by leveraging the service areas and customer bases of its facilities. As a result, revenue for the six months ended was ¥4,931 million, up 4.2% from the same period of the previous interim fiscal year, operating profit was ¥245 million, up 29.5%, ordinary profit was ¥251 million, up 26.1%, and interim net profit attributable to owners of the parent was ¥161 million, up 44.3%.」

「The company absorbed higher personnel expenses resulting from salary increases and other factors through cost controls including operational improvements and expense reviews. Operating profit increased by ¥87 million, or 20.2%, from the previous consolidated fiscal year to ¥518 million.」

「In addition, greater space efficiency resulting from improved head-office operations and digital transformation enabled the company to halve the floor area of its leased head-office offices and reduce fixed costs.」

「In this business, revenue from day services and home-visit bathing services recovered gradually, although personnel expenses and other costs, including consumables, increased across the nursing care business. As a result, revenue for the cumulative second quarter of the fiscal year was ¥3,495 million, up 4.7% year on year, while segment profit was ¥279 million, up 9.5%.」

「In this business, day-service revenue recovered gradually as the effects of COVID-19 subsided, but personnel expenses increased due to strengthened recruitment and expanded education and training across the nursing care business. As a result, revenue for the cumulative first quarter of the fiscal year was ¥1,740 million, up 3.5% year on year, while segment profit was ¥109 million, down 14.1%.」

「The company worked to contain higher costs resulting from rising prices for consumables and fuel, including utilities, by reviewing procurement costs and reducing outsourcing expenses through in-house production. It also improved administrative efficiency through digital transformation and worked to reduce labor costs.」

「The company worked to contain higher costs resulting from rising prices for consumables and fuel, including utilities, by reviewing procurement costs and reducing outsourcing expenses through in-house production. It also improved administrative efficiency through digital transformation and worked to reduce labor costs.」

「In addition, temporary expenses increased due to the opening in April of 1 day-care facility and 1 home-visit bathing facility, the integration and relocation in August of 2 home-visit nursing facilities, and the relocation of 1 home-care support facility. Expenses also increased due to higher energy prices and rising prices for food, consumables and other items. As a result, revenue for the cumulative second quarter of the fiscal year was ¥3,340 million, up 0.5% year on year, while segment profit was ¥255 million, down 22.0%.」

「In terms of profitability, a substantial review of costs, including labor costs, increased operating profit by ¥1 million, or 0.4%, from the previous consolidated fiscal year to ¥306 million.」

「In addition, expenses related to the opening in December of 2 day-service facilities and the relocation, consolidation and integration of home-care support facilities increased, resulting in higher revenue but lower profit year on year. As a result, revenue for the cumulative third quarter of the fiscal year was ¥5,023 million, up 2.5% year on year, while segment profit was ¥464 million, down 2.9%.」

「Although repeated declarations of a state of emergency led to continued restraint in service use in the domestic businesses, the company prepared for new facility openings and other expansion to secure profits through the rationalization and efficiency improvements of existing businesses, with an eye to future development, and to establish strong dominant areas. The company also continued to reduce expenses by further improving the efficiency of head-office operations.」

「The company continued to reduce expenses through greater efficiency in common head-office functions and labor-cost reductions resulting from the integration and reorganization of departments.」

「The company reduced expenses by reviewing operations across each business, thoroughly controlling costs including materials, consumables, and utilities, and reducing labor costs through greater efficiency in common head-office functions.」

「However, efforts to thoroughly improve operating efficiency and reduce expenses resulted in a year-on-year increase in profit. As a result, revenue for the cumulative second quarter of the fiscal year was ¥988 million, down 1.9% year on year, while segment profit was ¥152 million, up 10.3%.」

「In the domestic existing businesses, the company promoted the rationalization of facilities and the introduction of teleworking in departments where it was effective, while improving work arrangements and operating efficiency to reduce expenses.」

「On the other hand, selling, general and administrative expenses increased as recruitment and training were strengthened in preparation for future growth in the number of users. In addition, the business was affected by adverse weather, including Typhoon Hagibis, in the autumn. In March, users temporarily refrained from using day services as administrative authorities across the Tokyo metropolitan area requested that people refrain from going out amid the spread of COVID-19. These factors resulted in a year-on-year decline in profit. As a result, revenue for the fiscal year was ¥6,556 million, up 3.7% year on year, while segment profit was ¥589 million, down 14.1%.」

「On the other hand, selling, general and administrative expenses increased as recruitment and training were strengthened in preparation for future growth in the number of users. In addition, adverse weather, including Typhoon Hagibis, resulted in a year-on-year decline in profit. As a result, revenue for the cumulative third quarter of the fiscal year was ¥4,961 million, up 3.3% year on year, while segment profit was ¥508 million, down 9.2%.」

「In this business, the decline in revenue resulting from the consolidation and integration of existing facilities carried out in the previous fiscal year was offset by an increase in the number of home-visit bathing service users, resulting in higher revenue year on year. On the other hand, general and administrative expenses increased as the company strengthened recruitment and training in preparation for future growth in the number of users, resulting in a slight year-on-year decline. As a result, revenue for the cumulative second quarter of the fiscal year was ¥3,292 million, up 3.6% year on year, while segment profit was ¥352 million, down 0.4%.」

「In this business, the decline in revenue resulting from the consolidation and integration of existing facilities carried out in the previous fiscal year was offset by an increase in the number of home-visit bathing service users, resulting in higher revenue year on year. On the other hand, selling, general and administrative expenses increased, resulting in a year-on-year decline in profit. As a result, revenue for the cumulative first quarter of the fiscal year was ¥1,617 million, up 2.6% year on year, while segment profit was ¥157 million, down 0.9%.」

「Segment revenue increased due to the acquisition of a home-visit bathing services business and higher utilization rates at existing businesses. However, segment profit declined slightly as the revision of nursing care fees implemented in April 2018 led to lower service unit prices overall. As a result, revenue for the fiscal year was ¥6,321 million, up 2.8% year on year, while segment profit was ¥686 million, down 0.9%.」

「In its existing domestic businesses, the company continued to pursue its distinctive dominant strategy centered on Tokyo’s 23 wards, opening new facilities while seeking efficient operations through the consolidation and closure of existing facilities.」

「On the other hand, selling, general and administrative expenses increased due to investment in new businesses and other factors, resulting in a year-on-year decline in profit. As a result, revenue for the cumulative second quarter of the fiscal year was ¥3,178 million, up 2.3% year on year, while segment profit was ¥353 million, down 5.4%.」

「Meanwhile, selling, general and administrative expenses increased due to investment in new businesses and other factors, resulting in lower profit year on year. As a result, revenue for the first quarter of the current consolidated cumulative period was ¥1,575 million (up 2.4% year on year), and segment profit was ¥159 million (down 6.0% year on year).」

「Although revenue from some services declined due to facility consolidation and integration carried out in the previous fiscal year, utilisation at our core day-service operations improved, and expense reductions through rationalisation and optimised staff allocation following the consolidation and integration resulted in higher revenue and profit year on year. As a result, revenue for the current consolidated fiscal year was ¥6,149 million (up 1.4% year on year), and operating profit was ¥731 million (up 16.1% year on year).」

「Although revenue increased slightly due to the impact of facility consolidation and integration carried out in the previous fiscal year, utilisation at our core day-service operations improved, and expense reductions through rationalisation and optimised staff allocation resulted in higher profit year on year. As a result, revenue for the first 9 months of the current consolidated cumulative period was ¥4,673 million (up 0.4% year on year), and segment profit was ¥575 million (up 18.9% year on year).」

「Although revenue declined as a result of facility consolidation and integration carried out in the previous fiscal year, utilisation at our core day-service operations improved, and expense reductions through rationalisation and optimised staff allocation resulted in higher profit year on year. As a result, revenue for the first half of the current consolidated cumulative period was ¥3,106 million (down 1.0% year on year), and segment profit was ¥392 million (up 27.9% year on year).」

「Although revenue declined as a result of facility consolidation and integration carried out in the previous fiscal year, utilisation at our core day-service operations improved, and expense reductions through rationalisation and optimised staff allocation resulted in higher profit year on year. As a result, revenue for the first quarter of the current consolidated cumulative period was ¥1,538 million (down 1.1% year on year), and segment profit was ¥179 million (up 43.1% year on year).」

「We consolidated 5 facilities with nearby facilities because of their low profitability and continued losses, and transferred their customers and employees, thereby working to strengthen our high-profitability business structure. For 3 facilities that were difficult to consolidate, we fundamentally reviewed their operations and suspended or closed the facilities.」

「During the nine-month consolidated period, the Company pursued rationalization through facility consolidations and optimization of personnel allocation to secure profits with future expansion in mind and form a strong dominant area. In the care services business, it consolidated 5 low-profitability facilities that had continued to operate at a loss into nearby facilities and transferred their customers and employees, thereby strengthening the business toward a high-profitability structure. For 3 facilities that were difficult to consolidate, the Company fundamentally reviewed the businesses and suspended or discontinued the facilities.」

「Against this backdrop, our group worked to rationalise and improve the efficiency of its existing businesses while preparing for new initiatives, including overseas businesses and new domestic businesses.」

「Against this backdrop, our group worked to rationalise and improve the efficiency of its existing businesses while preparing for new initiatives, including overseas businesses and new domestic businesses.」

「As care providers are being forced to reconsider their strategies, we believe that efficient facility operations and expense reductions are important challenges for improving profitability in our existing businesses as well.」