Establishing a revenue base and pricing structure that mitigate the impact of market conditions

「The Imported Fresh Produce Supply Chain Business continued to perform steadily as it worked to improve profitability through revisions to outsourcing fees and reviews of its operations.」

「The Imported Fresh Produce Supply Chain Business continued to perform steadily as it worked to improve profitability through revisions to outsourcing fees and reviews of its operations.」

「The Imported Fresh Produce Supply Chain Business continued to perform steadily as it worked to improve profitability through revisions to outsourcing fees and reviews of its operations.」

「The revision of system usage fees implemented in the previous fiscal year in response to inflation and other factors sufficiently offset their impact, resulting in the maintenance of profitability.」

「In response to rising operating and maintenance costs due to recent inflation and higher labor costs, the Company revised system usage fees and worked to improve earnings.」

「Meanwhile, as system operating and maintenance costs rose due to recent inflation and higher labor costs, the Company revised system usage fees and worked to improve earnings.」

「In its existing businesses, the Company renewed contracts with major customers and revised the usage fees for its systems in order to secure and strengthen stable earnings.」

「System maintenance and operating costs have been rising in response to recent inflation and higher labor costs, but the Company has revised system usage fees and is working to improve earnings. It has been revising system usage fees and other prices sequentially since June, which is expected to contribute to improved earnings going forward.」

「On the earnings front, higher system maintenance and operating costs due to rising prices and labor costs became a burden, and profits declined because of delays in passing these costs through to prices.」

「In its existing businesses, the Group has strengthened its revenue base and worked to establish and expand businesses centered on small trading areas and regional revitalization in fresh-produce distribution.」

「Under these circumstances, the group used its experience and expertise to strengthen its initiatives with players across the industries and worked to commercialize them as services.」

「To address social issues such as food waste, environmental problems, local circulation and shorter supply chains, as well as changes in consumer behavior, the Group is accelerating its response to structural issues, including improving store efficiency through cashless payments, retaining customers through online services, strengthening its ability to procure products that address environmental issues, and improving logistics efficiency. It is also working with players in various industries by leveraging the Group's experience and expertise to develop these efforts into services.」

「As a new business, the Company plans to develop a platform for domestically produced fruits and vegetables leveraging its expertise in the imported-produce supply chain, and views changes in the business environment after COVID-19 as a business opportunity to contribute to the industry.」

「To respond to these uncertain changes in the business environment, the Company considered its desired state 10 years from now, formulated a medium-term management plan covering the next 3 years, and disclosed it on 14 January 2020. For its core e-Support Link System Ver. 2 and contracted-services businesses, the Company is making proposals to major domestic producers to apply its expertise to operations involving domestically produced fruits and vegetables.」

「In terms of business, several new-business investments actively pursued for several years, including the drugstore business and the development of a domestic fresh-produce distribution platform, are moving toward a stage at which they can be rolled out on a full scale. Existing businesses progressed largely in line with plan, excluding extraordinary losses such as impairment losses, due to the optimization of service prices and an increase in transaction volumes handled.」

「To respond to these changes in the operating environment and strengthen our existing businesses, we revised our service prices in the fiscal year ended November 2018 and are also advancing the automation of outsourced operations.」

「To respond to these changes in the business environment and strengthen its existing businesses, the Company revised its service prices during the fiscal year ended November 2018.」

「The e-Support Link System Ver. 2, provided for the fresh-produce supply chain, and the contracted-services business have been changed to multi-year service contracts and appropriate pricing.」

「Against this backdrop, the Group is treating changes in the environment surrounding the distribution of domestically produced fruits and vegetables as an opportunity for growth. It is accelerating the development of its business for domestically produced produce by leveraging supply-chain expertise developed through imported fruits and vegetables such as bananas. It is also continuing service demonstration tests for a new business format targeting drugstores, which began in the previous fiscal year, with a view to expanding the business. The subsidiary that sells organic agricultural products is seeking to increase sales and secure profits by reviewing suppliers, improving logistics and strengthening sales. During the current fiscal year, the Group is developing a value-chain system for domestically produced produce and preparing to provide contracted services for the distribution of domestic produce, in order to expand services for companies and producer organizations that have newly entered the domestic-produce distribution business.」

「Against this backdrop, the Group is treating changes in the environment surrounding the distribution of domestically produced fruits and vegetables as an opportunity for growth. It is accelerating the development of its business for domestically produced produce by leveraging supply-chain expertise developed through imported fruits and vegetables such as bananas.」

「In addition, to reduce the risk of fluctuations in the volume of contracted services for imported fruits and vegetables, the Group will leverage the expertise it has developed in the imported-produce supply chain to increase the volume of contracted services for domestically produced fruits and vegetables.」

「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「The Group is currently strengthening its revenue base and establishing a pricing structure to minimize the impact of market conditions.」