Improving Management Efficiency through the Reorganization of Editions in the Yokohama and Kawasaki Areas

「In response to population declines in the region and structural changes in the newspaper readership demographic, we proceeded as appropriate with the reorganization of editions and reviews of the number of copies published.」

「Cost of sales decreased by ¥41 million from the previous fiscal year to ¥1,206 million, down 3.3% year on year. This was due to efforts to optimize the number of copies distributed as inserts.」

「Cost of sales decreased by ¥47 million from the previous fiscal year to ¥1,248 million, down 3.7% year on year. This was due to efforts to optimize the number of copies distributed as inserts.」

「Although operating profit was affected by higher costs, including increases in the cost of paper and other materials, various expenses and personnel costs, it exceeded the results for the same period of the previous year due to efforts to reduce cost of sales through optimization of the number of copies distributed as inserts and to reduce selling, general and administrative expenses. Ordinary profit and quarterly net profit substantially exceeded the previous-year results due to the sale of shares held. Accordingly, for the six months ended the second quarter, net sales were ¥1,745 million, unchanged year on year; operating profit was ¥218 million, up 5.1%; ordinary profit was ¥301 million, up 30.4%; and quarterly net profit was ¥221 million, up 42.0%.」

「Along with higher sales, we worked to reduce cost of sales through optimization of the number of copies distributed as inserts and to reduce expenses. Although results fell short of the earnings forecast announced in April this year, operating profit, ordinary profit and net profit all substantially exceeded the previous fiscal year.」

「In addition to higher sales, efforts to reduce cost of sales and selling, general and administrative expenses, as well as gains on the sale of investment securities, resulted in operating profit, ordinary profit and quarterly net profit substantially exceeding the results for the same period of the previous year. Accordingly, for the nine months ended the third quarter, net sales were ¥2,508 million, up 11.8% year on year; operating profit was ¥425 million, up 66.9%; ordinary profit was ¥486 million, up 70.4%; and quarterly net profit was ¥321 million, up 69.3%.」

「With sales increasing year on year, efforts to control cost of sales and reduce selling, general and administrative expenses resulted in operating profit, ordinary profit and quarterly net profit all exceeding the results for the same period of the previous year. Accordingly, for the three months ended the first quarter, net sales were ¥758 million, up 10.9% year on year; operating profit was ¥80 million, up 709.3%; ordinary profit was ¥89 million, up 291.0%; and quarterly net profit was ¥61 million, up 260.0%.」

「In terms of profits, we continued to work to reduce cost of sales through optimization of the number of copies distributed as inserts and to reduce expenses through greater efficiency in production-related divisions. As a result, operating profit, ordinary profit and net profit all exceeded the previous fiscal year.」

「We proceeded with efforts to reduce cost of sales through greater efficiency in the production division following the introduction of a content management system and through optimization of the number of copies distributed as inserts, as well as efforts to reduce selling, general and administrative expenses. However, the impact of lower sales was substantial, and operating profit, ordinary profit and quarterly net profit all fell below the results for the same period of the previous year.」

「Cost of sales decreased by ¥67 million from the previous fiscal year to ¥1,056 million, down 6.0% year on year. This was due to lower outsourcing costs resulting from the optimization of the number of copies distributed as inserts and lower labor costs accompanying greater efficiency in the production division.」

「With respect to profits, despite higher printing-paper prices, we reduced cost of sales through greater efficiency in the production division and also worked to reduce selling, general and administrative expenses. As a result, operating profit, ordinary profit and quarterly net profit all exceeded the results for the same period of the previous year. Accordingly, for the six months ended the second quarter, net sales were ¥1,454 million, up 1.2% year on year; operating profit was ¥94 million, up 106.3%; ordinary profit was ¥113 million, up 58.2%; and quarterly net profit was ¥78 million, up 60.0%.」

「With respect to profits, our efforts to reduce cost of sales through greater efficiency in the production division and optimization of the number of copies distributed as inserts resulted in operating profit, ordinary profit and quarterly net profit all exceeding the results for the same period of the previous year.」

「We also continued to implement various management measures in response to changing reader needs and the social environment, including efficiency improvements through the consolidation of editions, a review of the number of copies distributed as inserts based on actual conditions, and expanded placement of newspapers at stores and other facilities. In terms of profits, our efforts to reduce cost of sales through the ongoing optimization of the number of copies distributed as inserts and to reduce expenses through greater efficiency in production-related divisions resulted in operating profit, ordinary profit and net profit all exceeding the previous fiscal year.」

「With respect to profits, the effects of lower cost of sales through efficiency improvements accompanying the consolidation of production sites and optimization of the number of copies distributed as inserts enabled operating profit to exceed the results for the same period of the previous year. Ordinary profit, however, fell slightly below the previous-year result due in part to the recognition of losses on the sale of securities.」

「We also continued to implement various management measures in response to changing reader needs and the social environment, including efficiency improvements through the consolidation of editions, a review of the number of copies distributed as inserts based on actual conditions, and expanded placement of newspapers at stores and other facilities.」

「Meanwhile, with respect to profits, we reduced cost of sales through measures including optimization of the number of newspaper copies distributed as inserts and the strategic consolidation of certain editorial offices, and worked to reduce selling, general and administrative expenses. As a result, operating profit, ordinary profit and quarterly net profit all exceeded the results for the same period of the previous year.」

「We also pursued various management initiatives in response to changing reader needs and the social environment, including efficiency improvements through the integration of editions, revisions to circulation volumes to reflect actual conditions, and stronger placement of publications at stores and facilities.」

「Regarding profit, the Company pursued greater management efficiency, including by restructuring newspaper editions in the Yokohama and Kawasaki areas. However, in addition to the decline in net sales, provisions increased following changes to the retirement benefit rules, resulting in operating profit, ordinary profit and quarterly net profit all falling below the results for the same period of the previous year.」