Narrowing losses by reducing fixed costs across the group

「The Company achieved expense reductions of a certain scale in selling, general and administrative expenses during the previous fiscal year through appropriate personnel allocation, a review of the officer structure, and reviews of advisory agreements, outsourcing agreements and other agreements. By reducing fixed costs and improving profit margins, the Company has established a structure that facilitates entry into new businesses.」

「The Company has already implemented expense reductions of a certain scale in selling, general and administrative expenses during the current fiscal year through appropriate personnel allocation, a review of the officer structure, and reviews of advisory agreements, outsourcing agreements and other agreements.」

「Regarding earnings, although the Company reduced selling, general and administrative expenses following the lifting of the designation as a security under special alert, it recorded an impairment loss on inventories because real estate held for sale had not been sold. In addition, sales volumes of health foods, base cosmetics and general medical devices in the sustainable business declined, among other factors. As a result, the operating loss was ¥666 million, compared with a loss of ¥255 million in the same period of the previous year.」

「Although the Company reduced selling, general and administrative expenses following the lifting of the designation as a security under special alert, consolidated operating loss was broadly unchanged at ¥63 million, compared with a loss of ¥62 million in the same period of the previous year, and consolidated ordinary loss was ¥67 million, compared with a loss of ¥65 million, due to the failure to sell real estate held for sale and a decline in sales volumes of health foods, base cosmetics and other products in the sustainable business.」

「While promoting management efficiency, including fixed-cost reductions, the Company will continue to promote and develop these businesses and allocate a certain amount of management resources to activities aimed at strengthening the resilience of its earnings base, in order to provide solutions to social issues around the world and contribute to the sustainable prosperity and happiness of people and society through its businesses.」

「Regarding earnings, although the Company continued to work to reduce fixed costs across the Group, amortisation of goodwill in the sustainable business, which had been recorded from the start of the business partway through the third-quarter cumulative consolidated period of the previous fiscal year, was recorded from the beginning of the current fiscal year. As a result, selling, general and administrative expenses turned upward.」

「Regarding earnings, reductions in fixed costs across the Group and lower interest expenses resulting from the reduction of interest-bearing debt enabled the Company to narrow its consolidated operating loss to ¥1 million, compared with a loss of ¥66 million in the same period of the previous year, and its consolidated ordinary loss to ¥5 million, compared with a loss of ¥89 million. However, although losses had narrowed through this stage,」

「In addition to reducing fixed costs across the Group, sales of base cosmetics and health foods in the new sustainable business remained firm. However, because the Company sold its interest in high-margin solar power plants for sale that had not yet commenced operation in the previous fiscal year, consolidated operating income was ¥212 million, down 77.8% year on year.」

「Regarding earnings, in addition to reducing fixed costs across the Group, the Company sold high-margin solar power plants that had not yet commenced operation and sales of cosmetics and health foods in the new business remained firm. As a result, consolidated operating income was ¥118 million, compared with a loss of ¥251 million in the same period of the previous year.」

「Regarding earnings, reductions in fixed costs across the Group enabled the Company to substantially narrow its consolidated operating loss to ¥141 million, compared with a loss of ¥228 million in the same period of the previous year.」

「Regarding earnings, the Company reduced fixed costs across the Group and cut interest expenses by reducing interest-bearing debt, among other measures. As a result, the consolidated operating loss narrowed to ¥66 million, compared with a loss of ¥140 million in the same period of the previous year, the consolidated ordinary loss narrowed to ¥89 million, compared with a loss of ¥179 million, and the quarterly net loss attributable to owners of the parent narrowed to ¥90 million, compared with a loss of ¥118 million.」

「However, by reducing fixed costs throughout the Group, the Company was able to narrow its consolidated operating loss to ¥251 million, compared with a consolidated operating loss of ¥336 million in the same quarter of the previous year, and its consolidated ordinary loss to ¥129 million, compared with a consolidated ordinary loss of ¥484 million in the same quarter of the previous year.」