Developing the Asset Business, Primarily in the Philippines

「Of the ¥49 million in Other revenue in 26/5-4Q, ¥47 million is non-recurring revenue from the sale of property held for sale. We intend to proceed with the early sale of the remaining property held for sale as well.」

「As the company has a single segment, the marketing business, this information has been omitted.」

「Regarding Financial Gym (フィナンシャルジム), the online financial education support service launched in July 2020, we determined that focusing on selected areas was important to restore and expand earnings amid the COVID-19 environment. We therefore decided to stop accepting new members at the end of November 2021 and terminate all support at the end of July 2022.」

「Regarding Financial Gym (フィナンシャルジム), the online financial education support service launched in July 2020, we determined that focusing on selected areas was important to restore and expand earnings amid the COVID-19 environment. We therefore decided to stop accepting new members at the end of November 2021 and terminate all support at the end of July 2022.」

「Since July 2020, the asset business had provided Financial Gym (フィナンシャルジム), an online financial education support service, to improve financial literacy in asset management. We promoted the service by explaining to participants the importance of continuing to learn about money, as with strength training or learning English, and by creating an environment where they could ask questions at any time through SNS group chats and similar channels, supporting the development of habits with the approachability of a personal-gym instructor. However, we decided to stop accepting new members at the end of November 2021 and terminate all support at the end of July 2022.」

「The asset business provides Financial Gym (フィナンシャルジム), an online financial education support service for women aimed at improving financial literacy in asset management.」

「We therefore undertook a major review of the business structure, including transferring the Philippine real estate business to a local Japanese real estate company. In addition, as a new service in the asset business, we began providing Financial Gym (フィナンシャルジム), an online financial education support service for women, aimed at improving financial literacy in asset management. As a result, revenue from the business was ¥27.754 million, up 53.4% year on year, and the segment loss was ¥27.463 million, compared with a segment loss of ¥35.731 million in the previous year.」

「To build a structure capable of securing stable earnings, we will continue proactive activities such as promotional activities and developing new services, and develop the business into one that contributes to group earnings. During the third quarter of the fiscal year, revenue declined year on year because the Philippine real estate business was transferred to a local Japanese real estate company and the sale of inventory properties held by the Philippine consolidated subsidiary was delayed. As a result, revenue from the business was ¥11.497 million, down 26.8% from the same period of the previous year, and the segment loss was ¥20.637 million, compared with a segment loss of ¥25.198 million in the same period of the previous year.」

「During the second quarter of the fiscal year, revenue declined year on year because the Philippine real estate business was transferred to a local Japanese real estate company and the sale of inventory properties held by the Philippine consolidated subsidiary was delayed. As a result, revenue from the business was ¥8.735 million, down 30.1% from the same period of the previous year, and the segment loss was ¥17.579 million, compared with a segment loss of ¥14.628 million in the same period of the previous year.」

「With regard to the real estate business in the Philippines, the prolonged COVID-19 lockdown and resulting inability to travel freely from Japan led us to decide that the business would be changed from our own sales activities to operations transferred to a local Japanese real estate company.」

「In the previous consolidated fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth. During the consolidated fiscal year, however, sales activities continued under difficult conditions for property sales and resales because Philippine property prices were trending upward and the Philippine peso was performing amid a stronger yen. As a result, revenue and profit remained below the previous year. Revenue from the business was ¥18.089 million, down 82.5% year on year, and the segment loss was ¥35.731 million, compared with segment profit of ¥7.226 million in the previous year.」

「In the previous consolidated fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth. During the third quarter of the fiscal year, however, the company did not actively pursue property resales and similar transactions, taking into account the upward trend in Philippine property prices and the Philippine peso's performance amid a stronger yen. As a result, revenue and profit remained below the previous year, but the company laid the groundwork for future growth by continuing proactive activities such as developing new properties in Vietnam, conducting promotional activities and developing sales agents.」

「In the previous consolidated fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth. During the second quarter of the fiscal year, however, the company did not actively pursue property resales and similar transactions, taking into account the upward trend in Philippine property prices and the Philippine peso's performance amid a stronger yen. As a result, revenue and profit remained below the previous year, but the company laid the groundwork for future growth by continuing proactive activities such as developing new properties in Vietnam, conducting promotional activities and developing sales agents. As a result, revenue from the business was ¥12.488 million, down 82.0% year on year, and the segment loss was ¥14.628 million, compared with segment profit of ¥5.526 million in the previous year.」

「In the previous consolidated fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth. During the first quarter of the fiscal year, however, the company did not actively pursue property resales and similar transactions, taking into account the upward trend in Philippine property prices and the Philippine peso's performance amid a stronger yen. As a result, revenue and profit remained below the previous year, but the company laid the groundwork for the second quarter onward by holding seminars for sales agents and conducting proactive promotional activities.」

「During the consolidated fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth, enabling the business to turn profitable.」

「During the third quarter of the fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth. To build a structure capable of securing stable earnings, we will continue proactive activities, including promotional activities and developing new developer partnerships, and develop the business into one that contributes to group earnings. As a result, revenue from the business was ¥86.989 million, up 253.3% year on year, and segment profit was ¥5.175 million, compared with a segment loss of ¥28.105 million in the previous year.」

「During the second quarter of the fiscal year, the sale of inventory properties held by the Philippine consolidated subsidiary and the resale of customer-held properties contributed to revenue growth, enabling the business to turn profitable. We will continue building a structure capable of securing stable earnings and developing the business into one that contributes to group earnings. As a result, revenue from the business was ¥69.498 million, up 305.3% year on year, and segment profit was ¥5.526 million, compared with a segment loss of ¥17.556 million in the previous year.」

「During the first quarter of the fiscal year, the asset business recorded a significant year-on-year improvement in earnings as a result of selling inventory properties held by the Philippine consolidated subsidiary, some properties previously purchased by customers reaching completion, and an increase in resale brokerage transactions. As a result, revenue from the business was ¥32.980 million, up 574.2% year on year, while the segment loss was ¥2.285 million, compared with a segment loss of ¥12.898 million in the previous year.」

「As a new initiative, we were able to record revenue and profit from the sale of inventory properties held by our consolidated subsidiary in the Philippines. We also began real estate sales brokerage in Seattle and have conducted local inspection tours.」

「In the Philippines, one of the company-owned properties that was under construction when acquired was completed during the third quarter of the consolidated fiscal year, and sales activities aimed at its disposal have begun.」

「In the asset business, we have provided infrastructure such as offices for companies and condominiums for employees posted overseas, as part of our support for Japanese companies expanding overseas in the Philippines and Vietnam, where high economic growth continues among ASEAN member states. To achieve further business expansion, during the consolidated fiscal year we focused on promotional activities, including participating in an international real estate and investment conference, launching virtual property viewings using VR (Virtual Reality), and holding individual consultations and seminars. We hired an executive officer from August 2017 and began sales activities under the new structure. As a result, revenue from the business was ¥17.148 million, down 22.3% year on year, and the segment loss was ¥17.556 million, compared with a segment loss of ¥3.348 million in the previous year.」

「In the asset business, we have provided infrastructure such as offices for companies and condominiums for employees posted overseas, as part of our support for Japanese companies expanding overseas in the Philippines, where high economic growth continues among ASEAN member states. In Vietnam, where economic growth is also continuing, we have continued initiatives aimed at long-term growth, including launching real estate sales brokerage. To achieve further business expansion, during the consolidated fiscal year we focused on promotional activities, including launching virtual property viewings using VR (Virtual Reality) and holding individual consultations and seminars. We also continued proactive activities such as hiring personnel, expanding the organisation and developing new developer partnerships. As a result, expenses preceded revenue generation. Revenue from the business was ¥4.891 million, down 61.2% year on year, and the segment loss was ¥12.898 million, compared with segment profit of ¥3.045 million in the previous year.」

「As handovers were completed for some of the properties acquired by the company through the consolidated fiscal year, the number of rental properties increased from the previous fiscal year, creating additional stable sources of income. To achieve further business expansion, we continued proactive activities during the consolidated fiscal year, including hiring personnel, expanding the organisation, making proactive investments in promotional activities and developing new developer partnerships. As a result, expenses preceded revenue generation.」

「In the asset business, we have made proactive upfront investments to generate future earnings, including upfront investments in promotional activities and the development of new developer partnerships. As a result, revenue from the business was ¥27.663 million, up 47.1% year on year, while the operating loss was ¥12.302 million, compared with an operating loss of ¥1.657 million in the previous year.」

「In the asset business, we have made proactive upfront investments to generate future earnings, including increasing sales personnel, making upfront investments in promotional activities and developing new developer partnerships. We also began real estate sales brokerage in Vietnam. As a result, revenue from the business was ¥22.068 million, up 145.4% year on year, while the operating loss was ¥3.348 million, compared with an operating loss of ¥229,000 in the previous year.」

「During the first quarter of the fiscal year, the number of property transactions from individual investors and companies increased on expectations of strong economic growth in the Philippines, driving revenue and profit in this business. As a result, revenue from the business was ¥12.595 million (¥0 in the same period of the previous year), and operating profit was ¥3.045 million (compared with an operating loss of ¥2.696 million in the same period of the previous year).」

「We launched the asset business as a new business, centered on a subsidiary established in the Philippines in June 2015. During the consolidated fiscal year under review, we had already acquired 15 completed or under-construction properties and begun leasing and management operations.」