Increase in personnel expenses due to higher hourly wages

「Selling, general and administrative expenses increased by ¥749 million year on year to ¥28,277 million, up 2.7%. While utility costs declined due to the switch to LED lighting in the previous consolidated fiscal year and the ongoing renewal of air-conditioning equipment, labor costs increased due to higher hourly wages and a review of the discount rate for retirement benefits. Sales promotion expenses also increased due to the cost of awarding points under the newly introduced T Point service, while taxes and dues increased due to land acquisition taxes and other factors.」