Launch of the Reuse and Mobile Communications Businesses through Consolidation with Nippon Telephone

「During the interim consolidated accounting period, following the partial sale of shares, ReYuu Japan株式会社 (hereinafter, “ReYuu”) was excluded from the scope of consolidation. Accordingly, we withdrew from the Information and Communications-Related Business.」

「As a result, revenue for the Information and Communications-Related Business as a whole was ¥4,732.562 million, up 15.7% year on year, and the segment loss (operating loss) was ¥116.963 million, compared with a segment loss (operating loss) of ¥244.624 million in the previous fiscal year.」

「By coordinating with management hubs responsible for product refurbishment and logistics and promoting solution-oriented purchasing proposals, we have increased direct purchasing transactions from corporations with high profit margins. In addition to smartphones, which we have primarily handled to date, we are actively purchasing products such as PCs to maximize business opportunities. Leveraging our comprehensive device services integrating sales, purchasing, rentals, product warranties and kitting, we are working to deepen relationships with existing customers and develop new customers.」

「During the first-quarter cumulative consolidated period, to strengthen procurement capabilities, we organized a dedicated procurement department and promoted procurement sales activities centered on proposals that address customer issues, in collaboration with management hubs responsible for product refurbishment and logistics. As a result, the number of procurement transactions increased, mainly involving high-margin purchases from corporate customers, contributing to profit. We also steadily expanded our network of partners for online purchasing collaborations with other companies.」

「In the MVNO operator channel, we expanded and strengthened collaboration with partner companies, using offerings such as certified reused products with product warranties and online device purchasing services as entry points. To establish a foundation for growth from the next fiscal year onward, we actively developed new customers by combining wholesale sales with rental schemes, and achieved a certain level of success.」

「In the corporate channel, we expanded and strengthened collaboration with partner companies by offering new product lines of certified reused mobile devices with a 1-year warranty and an online purchasing platform for devices. We also began handling reused PCs, which got off to a strong start among both corporate and individual customers.」

「As another new initiative, we fully launched our LCM (lifecycle management) and global business. We will begin sales in Hong Kong, where 日本テレホン社 has previously operated, and in Dubai, a hub for used devices.」

「In the reuse business, we newly began offering certified reused products with product warranties to MVNO operators. We also further strengthened collaboration with existing partner companies by providing an online device purchasing service as a platform. In addition, in the consumer online channel, we revamped our company-operated website by leveraging our strengths in the online sector, while expanding sales channels and strengthening product offerings on e-commerce marketplaces including Rakuten, Amazon and Mercari.」

「In addition, in August we implemented group-wide cost reduction measures, including moving 日本テレホン's Tokyo headquarters into our office. Going forward, starting with Hikari Choice, the first of the joint businesses previously reported, we aim to create new businesses by combining our software technologies with 日本テレホン's hardware procurement capabilities. As a result, revenue for the Information and Communications-Related Business as a whole was ¥2,022.456 million, and the segment loss (operating loss) was ¥113.929 million.」

「Revenue for the Information and Communications-Related Business as a whole was ¥1,400.776 million, and the segment loss (operating loss) was ¥35.697 million. Since 日本テレホン was not included in the consolidated results in the same quarter of the previous year, no year-on-year comparison is provided for the Information and Communications-Related Business.」

「<Information and Communications-Related Business> We acquired 日本テレホン株式会社 (hereinafter, “日本テレホン”) and launched the Information and Communications-Related Business.」