Making 栄川酒造 a Subsidiary and Pursuing Its Early Rehabilitation

「During the current second-quarter consolidated accounting period, 栄川酒造株式会社 was excluded from the scope of consolidation and the equity-method scope because the company’s ownership interest fell to 19.0% as a result of a third-party allotment of shares conducted by 栄川酒造株式会社.」

「株式会社エスケーフーズ and other companies that joined the Group in the previous fiscal year contributed to revenue and earnings for the full year.」

「In addition, 純和食品㈱, 栄川酒造㈱ and ㈱エスケーフーズ, which became Group companies in the second half of the previous consolidated fiscal year, contributed to revenue and earnings.」

「As a specific initiative to revitalise 栄川酒造’s business, we will seek to expand sales together with 株式会社桜顔酒造, the Group’s brewing company, by sharing the two companies’ sales channels and leveraging the Group’s sales channels.」

「At a meeting of the Board of Directors held on 27 June 2016, the company resolved to subscribe to a third-party allotment of shares conducted by 栄川酒造, acquire all of its shares and make it a subsidiary, and completed the acquisition on 1 September 2016.」

「As specific initiatives to revitalise the company’s business, we will seek to expand sales together with 株式会社桜顔酒造, the Group’s brewing company, by sharing the two companies’ sales channels and leveraging the Group’s sales channels. We will also reduce procurement costs through joint purchasing with 株式会社桜顔酒造 and effective use of the Group’s suppliers. In addition, we will promptly establish a management control framework and build a structure for rapid and accurate decision-making. In this way, we will work toward the company’s early revitalisation by leveraging the “SME Support Platform” being developed by us.」