Monitoring and Restructuring of Unprofitable Businesses

「During the current interim consolidated accounting period, orders remained steady not only for core operations such as monthly accounting and financial statement preparation services, but also for consulting services focused on asset succession. The Company also pursued new engagements to expand real estate transaction services provided as part of asset succession and asset utilization, and to enter into insurance agency agreements related to risk management.」

「In the current consolidated fiscal year, core operations such as monthly accounting and financial statement preparation services achieved steady growth as a result of measures including the acquisition of new corporate customers, which had been promoted since the previous consolidated fiscal year.」

「In the current consolidated fiscal year, core operations such as monthly accounting and financial statement preparation services achieved steady growth as a result of measures including the acquisition of new corporate customers, which had been promoted since the previous consolidated fiscal year. As a result, revenue for the current consolidated fiscal year was ¥318.194 million, up 1.6% from the previous consolidated fiscal year, and segment profit (operating profit) was ¥29.982 million, up 153.3%.」

「The Company was certified by the Ministry of Economy, Trade and Industry as a business innovation support organization and provides consulting services, including assistance with preparing productivity improvement plans and business restructuring support, to address customers' management challenges. As a result, for the three months ended the first quarter of the current consolidated fiscal year, revenue was ¥79.057 million, up 4.9% year on year, and segment profit was ¥4.715 million, compared with a loss of ¥1.792 million in the same quarter of the previous fiscal year.」

「As a result, revenue for the current consolidated fiscal year was ¥313.059 million, down 1.1% from the previous consolidated fiscal year, while segment profit (operating profit) was ¥11.838 million, compared with a loss of ¥753 thousand in the previous consolidated fiscal year.」

「These services have strengthened relationships with existing customers and, through alliances with companies operating under referral-partner agreements, regional financial institutions and professional service firms, have led to the stable acquisition of new business partners. In addition to supporting clients with preparations for the invoice system starting in October, the Company is expanding its consulting services, including support for business succession and consulting as a certified support organization. As a result, for the nine months ended the third quarter of the current consolidated fiscal year, revenue was ¥239.840 million, down 1.0% year on year, and segment profit was ¥11.726 million, up 496.0%.」

「As a result, engagements involving the preparation and execution support of clients' business plans and management consulting, including advice on their financial condition, have gradually increased.」

「As a result, revenue for the current consolidated fiscal year was ¥316.504 million, up 0.3% from the previous consolidated fiscal year, while the segment loss (operating loss) was ¥753 thousand, compared with profit of ¥10.629 million in the previous consolidated fiscal year.」

「As a result, for the nine months ended the third quarter of the current consolidated fiscal year, revenue was ¥242.351 million, down 1.8% year on year, and segment profit was ¥1.967 million, down 90.6%.」

「Demand for accounting services, including the preparation of financial statements for sole proprietors, is typically strong in the second quarter. In addition, alliances with financial institutions that the Company has been promoting and new referrals from existing customers have supported steady sales and profit. As a result, for the six months ended the second quarter of the current consolidated fiscal year, revenue was ¥163.172 million, down 4.6% year on year, and segment profit was ¥4.282 million, down 78.2%.」

「As a result, sales for the three months ended 30 June were ¥75.415 million, down 6.5% year on year, and the segment recorded a loss of ¥4.833 million, compared with profit of ¥6.951 million in the same period of the previous year.」

「In the business services segment for small and medium-sized enterprises, the local economy deteriorated due to the consumption tax increase and measures to prevent the spread of COVID-19, significantly affecting small and medium-sized enterprise profitability. As a result, sales were ¥321.256 million, down 5.0% from the previous fiscal year, and segment operating profit was ¥11.027 million, down 38.1%.」

「In the business services segment for small and medium-sized enterprises, local small and medium-sized businesses were significantly affected by requests to refrain from going out and close stores to prevent the spread of COVID-19, as well as production adjustments affecting manufacturers, particularly in the automobile industry. Existing customers closed their businesses or scaled back operations, resulting in lower sales year on year. Meanwhile, the company continues its solutions business addressing needs such as support for applying for COVID-19 relief subsidies and cash-flow support.」

「In the business services segment for small and medium-sized enterprises, demand for accounting services, such as preparing financial statements for sole proprietors, is usually high from February to March. However, during the second quarter, existing customers closed their businesses or scaled back operations as local small and medium-sized enterprises were significantly affected by requests to refrain from going out and close stores to prevent the spread of COVID-19, as well as production adjustments affecting manufacturers, particularly in the automobile industry. As a result, sales declined year on year. Meanwhile, the company is focusing on solutions addressing needs such as support for applying for COVID-19 relief subsidies and cash-flow support.」

「In the business services segment for small and medium-sized enterprises, the deterioration of local small and medium-sized businesses has progressed beyond expectations, and the existing target market is shrinking each year. Sales and profit both fell short of the initial outlook. Meanwhile, the solution business related to risk management and business succession is growing, and the company is focusing on developing new markets.」

「In the business services segment for small and medium-sized enterprises, new customer acquisition increased for accounting services, but the segment was broadly flat because existing customers closed their businesses or scaled back operations. Profit recovered substantially through cost rationalization, including personnel costs associated with business services.」

「In the business services segment for small and medium-sized enterprises, the company provides business services focused on finance and accounting. Existing bookkeeping outsourcing and outsourced work remained solid, but the decline had not yet been halted. The internal alliance with the ICT business for beauty salons is gradually beginning to produce results. As a result, sales were ¥257.188 million, down 2.0% year on year, and segment profit was ¥15.871 million, up 80.5% year on year, for the nine months ended 31 December.」

「In the business services segment for small and medium-sized enterprises, the company is changing its business model, including an internal alliance with the ICT business for beauty salons. During the six months ended 30 September, the busy season for preparing financial statements for sole proprietors, sales and operating profit from accounting services, including bookkeeping outsourcing for small and medium-sized enterprises, and outsourced work recovered, resulting in operating profit exceeding that of the same period of the previous year. As a result, sales were ¥175.924 million, down 1.5% year on year, and segment profit was ¥14.039 million, up 113.1% year on year, for the six months ended 30 September.」

「In the business services segment for small and medium-sized enterprises, the company continues to change its business model. Sales and operating profit from accounting services, including bookkeeping outsourcing for small businesses, and outsourced work showed signs of recovery, resulting in a return to profit from the substantial loss recorded in the same quarter of the previous year. The company is preparing to promote an internal alliance with the ICT business for beauty salons ahead of the busy season for preparing financial statements for sole proprietors in the second quarter.」

「In the business services segment for small and medium-sized enterprises, the company is implementing a business model change. Performance in accounting services and outsourced work is recovering, but the decline in sales had not yet been halted.」

「In the business services segment for small and medium-sized enterprises, the company is implementing a business model change. Gross profit from accounting services and outsourced work is recovering, but the decline in sales had not yet been halted.」

「In the business services segment for small and medium-sized enterprises, the company is implementing its business model change plan ahead of schedule, but the decline in performance has not been halted.」

「In the business services segment for small and medium-sized enterprises, sales declined following the withdrawal from loss-making businesses, including outsourced work for local governments. However, accounting services for small and medium-sized enterprises secured stable earnings, mainly from existing customers, and the segment returned to profitability.」

「In the business services segment for small and medium-sized enterprises, sales declined following the withdrawal from loss-making businesses, but the segment returned to profitability and profit increased substantially from the previous fiscal year.」

「However, the impact of restructuring costs from withdrawing from loss-making businesses continues.」

「The company will work to build a more profitable business structure by monitoring business profitability and prospects in a timely manner and deciding on and implementing business restructuring.」