Structural Reforms in 4 Areas in the “First Year of Transformation”

「During the cumulative first quarter of the fiscal year under review, the Company continued to advance profit structure reforms.」

「Under “continuing to advance profit structure reforms,” we will continue the profit structure reforms that produced significant results in the previous fiscal year, thoroughly implement cost control, promote work-style reform through DX and PMI, and work to achieve an optimal direct-to-indirect labour ratio.」

「We will pursue 3 major pillars of execution: “strengthening merchandising,” “optimising cost control,” and “ 적극ive investment in new and existing stores.”」

「Against this social and economic backdrop, with the aim of achieving further corporate growth and development, the Group has designated the current fiscal year as the “Finishing Year” for structural reforms and is advancing structural reforms in the 4 areas undertaken since the previous fiscal year.」

「The Company is advancing structural reforms in the 4 areas undertaken since the previous fiscal year, designating the current fiscal year as the “Finishing Year” for structural reforms.」

「The main initiatives and results for the first quarter of the fiscal year under review were as follows. ① Under “business structural reform,” in the strategic remodeling business, the Company sought to expand the benefits of the integration with a subsidiary carried out in the previous fiscal year and began examining issues arising after the integration. ② Under “merchandising structural reform,” the Company continued to reform its merchandising processes, including reviewing transaction formats, routes and individual products, and pursued stronger customer-oriented product capabilities. ③ Under “organisational structural reform,” the procurement function was separated from the Sales Headquarters, a Product Headquarters was newly established, and the functions of the Corporate Planning Headquarters were placed directly under the President. The Corporate Planning Headquarters was dissolved, resulting in a 4-headquarters structure comprising the Sales Headquarters, Product Headquarters, Development Headquarters and Administration Headquarters. ④ Under “expense structural reform,” the Company promoted the simplification, efficiency and centralisation of store management operations and integrated and consolidated certain subsidiary functions at headquarters in order to optimise the Group as a whole.」

「As a result of the structural reform initiatives launched in the fiscal year under review, the gross profit margin improved. In addition, selling, general and administrative expenses decreased by ¥968 million, or 2.5%, from the previous consolidated fiscal year, mainly due to a reduction in total working hours.」

「The main initiatives and results for the cumulative third quarter of the fiscal year under review included the following: ① Under “business structural reform,” the Company has been working to reorganise its business portfolio and develop new markets.」

「From the fiscal year under review, we have been pursuing structural reforms in 4 areas, namely the “business structure,” “merchandising structure,” “organisational structure” and “expense structure,” under the core theme of the “First Year of Transformation,” in order to eliminate inefficiency, waste and inconsistency, improve productivity and cost competitiveness, and secure resources for creating further customer value.」

「From the first quarter of the fiscal year under review, we have been pursuing structural reforms in 4 areas, namely the “business structure,” “merchandising structure,” “organisational structure” and “expense structure,” under the core theme of the “First Year of Transformation,” in order to eliminate inefficiency, waste and inconsistency, improve productivity and cost competitiveness, and secure resources for creating further customer value.」