Fiscal Year Ending February 2019: Plan Achievement and Shortfall

「Net sales were ¥906,545 thousand below plan, down 1.1% against plan, due to major changes in the business environment, including increased demand for high-performance, high-priced electric-assist bicycles, stronger saving preferences resulting from rising prices, particularly for living expenses, and a lengthening bicycle replacement cycle. Operating profit was ¥14,027 thousand below plan, down 0.3% against plan, because net sales declined as described above.」

「Net sales were ¥1,923 million below plan, down 2.4% from plan, because the business environment surrounding the Company changed significantly, including higher selling prices resulting from increases in bicycle purchase prices and stronger consumer frugality amid rising prices of everyday goods, and sales of new bicycles fell below expectations. Operating income was ¥287.921 million below plan, down 5.5% from plan, because net sales declined as sales of new bicycles fell below expectations, as described above.」

「Sales were ¥3,287.892 million below plan. Procurement prices rose due to soaring global energy prices, higher prices for all types of materials, rising labor costs at overseas production factories and higher ocean freight rates, leading manufacturers to raise selling prices. In addition, rising prices for everyday necessities strengthened consumers' preference for frugality and caused major changes in demand, including lower new-car sales and a shift toward lower-priced products, resulting in weaker consumption. Operating income was ¥472.362 million below plan. As described above, the operating environment surrounding the company changed significantly, and new-car sales fell below expectations, while the shift toward lower-priced products also affected results.」

「Revenue was ¥1,398.999 million above plan, an increase of 2.0%. Operating profit was ¥228.580 million below plan, a decrease of 4.2%, as selling, general and administrative expenses exceeded planned levels. Ordinary profit was ¥12.897 million above plan, an increase of 0.2%, and net income was ¥41.677 million above plan, an increase of 1.2%. ROE was 10.4%, up 0.1 percentage point from plan as net income met the plan.」

「Revenue increased by ¥3,456.001 million, or 5.2%, above plan, owing to increased opportunities to use bicycles, mainly for commuting to work and school, as a means of transportation that avoided contact with other people, or so-called “密,” in daily life due to COVID-19; increased demand for bicycles resulting from greater health consciousness aimed at addressing a lack of exercise; new store openings; and higher average spending per customer associated with increased sales of high-value-added products. Operating income increased by ¥863.883 million, or 14.4%, above plan, driven by strong revenue, an increase in gross profit, and lower selling, general and administrative expenses resulting from the suspension of store operations and curtailment of corporate activities during the first half because the outlook for COVID-19 was uncertain. Net income increased by ¥1,044.827 million, or 28.4%, above plan.」

「Net sales increased due to the opening of new stores and higher average customer spend accompanying increased sales of high-value-added products, but were ¥1,347,313 thousand below plan, a decrease of 2.2% versus plan. Although the company worked to control expenses through measures including more efficient operations, this was not enough to offset the shortfall in net sales against plan. As a result, operating income was ¥193,857 thousand below plan, a decrease of 4.6%, and net income was ¥140,918 thousand below plan, a decrease of 5.2%.」

「Although net sales increased due to price revisions to offset higher costs and the increase in the average selling price resulting from a larger proportion of high-value-added products, they were ¥1,409 million below plan, down 2.4% from plan. Although the Company worked to control costs and expenses through operational efficiencies and other measures, operating income and ordinary income did not increase enough to offset the shortfall in net sales against plan.」