Heavy Reliance on Interest-Bearing Debt and the Risk of Higher Interest Rates

「At the end of the fiscal year, consolidated interest-bearing debt stood at ¥6,661 million, compared with ¥5,418 million in the previous fiscal year, while reliance on interest-bearing debt was 65.1%, compared with 62.1% in the previous fiscal year. If interest rates rise further going forward, interest expense may increase and affect the Group's operating performance and financial position.」

「The main factors behind the increase were a ¥1,280.9 million increase in the current portion of long-term borrowings and a ¥933.1 million increase in short-term borrowings. The main factor behind the decrease was a ¥693.5 million decline in long-term borrowings.」

「Because the Group finances most of the land acquisitions and construction costs for its parking-lot securitization and real estate businesses through borrowings, consolidated interest-bearing debt stood at ¥5,418 million at the end of the fiscal year, compared with ¥5,171 million in the previous fiscal year, and reliance on interest-bearing debt was 62.1%, compared with 58.5% in the previous fiscal year.」

「Current liabilities decreased by ¥961.6 million from the end of the previous fiscal year to ¥3,854.2 million at the end of the interim consolidated accounting period. The main factors behind the decrease were a ¥596.5 million decline in accounts payable and a ¥145.0 million decline in short-term borrowings. Non-current liabilities increased by ¥309.8 million from the end of the previous fiscal year to ¥3,416.7 million. The main factors behind the increase were a ¥192.0 million increase in long-term borrowings and a ¥64.9 million increase in lease liabilities.」

「Because the Group finances most of the land acquisitions and construction costs for its parking-lot securitization and real estate businesses through borrowings, consolidated interest-bearing debt stood at ¥5,171 million at the end of the fiscal year, compared with ¥6,570 million in the previous fiscal year, and reliance on interest-bearing debt was 58.5%, compared with 69.7% in the previous fiscal year. If interest rates rise going forward, interest expense may increase and affect the Group's operating performance and financial position.」

「Current liabilities decreased by ¥917.6 million from the end of the previous fiscal year to ¥4,632.5 million at the end of the third quarter. The main factors behind the decrease were a ¥673.0 million decline in short-term borrowings and a ¥371.8 million decline in accounts payable. The main factor behind the increase was a ¥325.7 million increase in the current portion of long-term borrowings. Non-current liabilities increased by ¥128.8 million from the end of the previous fiscal year to ¥3,388.2 million. The main factors behind the increase were a ¥94.8 million increase in long-term borrowings and a ¥24.4 million increase in lease liabilities.」

「The main factors behind the decrease were a ¥996.0 million decline in short-term borrowings and a ¥346.2 million decline in accounts payable associated with the completion of newly built condominiums and other developments in the real estate business. The main factor behind the increase was a ¥305.4 million increase in the current portion of long-term borrowings. Non-current liabilities decreased by ¥293.2 million from the end of the previous fiscal year to ¥2,966.2 million. The main factor behind the decrease was a ¥318.2 million decline in long-term borrowings.」

「The main factor behind the decrease was a ¥975.0 million decline in short-term borrowings. The main factors behind the increase were a ¥408.7 million increase in accounts payable associated with the completion of newly built condominiums and other developments in the real estate business, and a ¥310.9 million increase in the current portion of long-term borrowings. Non-current liabilities decreased by ¥260.8 million from the end of the previous fiscal year to ¥2,998.6 million. The main factor behind the decrease was a ¥302.5 million decline in long-term borrowings.」

「At the end of the fiscal year, consolidated interest-bearing debt stood at ¥6,570 million, compared with ¥6,475 million in the previous fiscal year, while reliance on interest-bearing debt was 69.7%, compared with 75.6% in the previous fiscal year.」

「The main factors increasing liabilities were a ¥496,418 thousand increase in accounts payable and a ¥155,800 thousand increase in short-term borrowings. The main factors decreasing liabilities were a ¥293,575 thousand decrease in the current portion of long-term borrowings and a ¥78,602 thousand decrease in accounts payable included in other current liabilities. Non-current liabilities increased by ¥469,179 thousand from the end of the previous fiscal year to ¥3,918,423 thousand. The main factors increasing non-current liabilities were a ¥363,963 thousand increase in long-term borrowings and a ¥100,000 thousand increase from the issuance of bonds.」

「The main factor increasing liabilities was a ¥502,800 thousand increase in short-term borrowings. The main factors decreasing liabilities were a ¥175,443 thousand decrease in the current portion of long-term borrowings and a ¥93,106 thousand decrease in accounts payable included in other current liabilities. Non-current liabilities increased by ¥241,621 thousand from the end of the previous fiscal year to ¥3,690,864 thousand. The main factor increasing non-current liabilities was a ¥212,531 thousand increase in long-term borrowings.」

「The main factors increasing liabilities were a ¥581,663 thousand increase in accounts payable associated with the completion of newly built condominiums in the real estate business, a ¥135,809 thousand increase in the current portion of long-term borrowings, and a ¥115,800 thousand increase in short-term borrowings. The main factor decreasing liabilities was a ¥51,540 thousand decrease in accounts payable included in other current liabilities. Non-current liabilities decreased by ¥298,598 thousand from the end of the previous fiscal year to ¥3,150,645 thousand. The main factor decreasing non-current liabilities was a ¥291,411 thousand decrease in long-term borrowings.」

「At the end of the fiscal year, consolidated interest-bearing debt stood at ¥6,475 million, compared with ¥6,278 million in the same period of the previous year, and the interest-bearing debt dependency ratio was 75.6%, compared with 70.4%.」

「At the end of the third quarter, current liabilities increased by ¥145,154 thousand from the end of the previous fiscal year to ¥4,445,683 thousand. The main factor increasing current liabilities was a ¥311,044 thousand increase in accounts payable. The main factors decreasing current liabilities were an ¥89,286 thousand decrease in income taxes payable and a ¥93,982 thousand decrease in deposits received included in other current liabilities. Non-current liabilities decreased by ¥14,208 thousand to ¥3,872,075 thousand. The main factor decreasing non-current liabilities was a ¥107,881 thousand decrease in lease obligations due to lease repayments and cancellations. The main factor increasing non-current liabilities was an ¥80,929 thousand increase in long-term borrowings.」

「The main factors increasing liabilities were a ¥379,460 thousand increase in accounts payable and a ¥350,960 thousand increase in short-term borrowings. Non-current liabilities increased by ¥224,207 thousand from the end of the previous fiscal year to ¥4,110,491 thousand. The main factor increasing non-current liabilities was a ¥304,880 thousand increase in long-term borrowings.」

「The main factors increasing liabilities were a ¥1,018,880 thousand increase in short-term borrowings and a ¥414,383 thousand increase in accounts payable. Non-current liabilities increased by ¥29,006 thousand from the end of the previous fiscal year to ¥3,915,290 thousand. The main factor increasing non-current liabilities was a ¥103,169 thousand increase in long-term borrowings.」

「At the end of the third quarter, current liabilities decreased by ¥186,549 thousand from the end of the previous fiscal year to ¥5,047,510 thousand. The main factor increasing current liabilities was a ¥122,467 thousand increase in income taxes payable. The main factor decreasing current liabilities was a ¥426,400 thousand decrease in short-term borrowings. Non-current liabilities increased by ¥236,117 thousand to ¥3,763,943 thousand. The main factor increasing non-current liabilities was a ¥300,000 thousand increase from the issuance of bonds. The main factor decreasing non-current liabilities was a ¥173,451 thousand decrease in long-term borrowings.」

「At the end of the second quarter, current liabilities decreased by ¥634,703 thousand from the end of the previous fiscal year to ¥4,599,356 thousand. The main factor decreasing current liabilities was a ¥639,200 thousand decrease in short-term borrowings. Non-current liabilities decreased by ¥97,783 thousand to ¥3,430,041 thousand. The main factor decreasing non-current liabilities was a ¥116,473 thousand decrease in long-term borrowings.」

「At the end of the first quarter, current liabilities decreased by ¥573,849 thousand from the end of the previous fiscal year to ¥4,660,210 thousand. The main factors decreasing current liabilities were a ¥362,200 thousand decrease from repayment of short-term borrowings, a ¥60,442 thousand decrease from payment of income taxes payable, and a ¥98,497 thousand decrease from payment of consumption taxes payable included in other current liabilities. Non-current liabilities increased by ¥884,740 thousand to ¥4,412,566 thousand. The main factor increasing non-current liabilities was a ¥903,042 thousand increase in long-term borrowings.」

「The main factors increasing liabilities were a ¥441,000 thousand increase in short-term borrowings and a ¥138,818 thousand increase in income taxes payable. The main factor decreasing liabilities was a ¥1,307,414 thousand decrease in accounts payable. Non-current liabilities decreased by ¥1,383,979 thousand from the end of the previous fiscal year, mainly due to a ¥1,388,101 thousand decrease in long-term borrowings.」

「The main factors increasing liabilities were a ¥954,000 thousand increase in short-term borrowings and a ¥134,036 thousand increase in the current portion of long-term borrowings. The main factor decreasing liabilities was a ¥1,505,614 thousand decrease in accounts payable. Non-current liabilities decreased by ¥1,125,360 thousand from the end of the previous fiscal year, mainly due to a ¥1,109,790 thousand decrease in long-term borrowings.」

「The main factor increasing liabilities was a ¥168,000 thousand increase in short-term borrowings. The main factors decreasing liabilities were a ¥1,524,455 thousand decrease in accounts payable and a ¥120,741 thousand decrease in non-current liabilities from the end of the previous fiscal year, mainly due to a ¥104,052 thousand decrease in long-term borrowings.」

「Net cash used in financing activities was ¥370,231 thousand, compared with net cash provided of ¥373,535 thousand in the same period of the previous year. This was mainly due to a net decrease of ¥100,000 thousand in short-term borrowings, payments of ¥195,270 thousand for the repayment of long-term borrowings, and payments of ¥95,129 thousand for the repayment of lease obligations.」

「At the end of the fiscal year, consolidated interest-bearing debt stood at ¥8,814 million, and the interest-bearing debt dependency ratio was 77.1%. If interest rates rise going forward, interest expense may increase and affect the operating results and financial position of our group.」

「At the end of the fiscal year, consolidated interest-bearing debt stood at ¥10,390,177 thousand, and the interest-bearing debt dependency ratio was 80.4%. If interest rates rise going forward, interest expense may increase and affect the operating results and financial position of our group.」