Impact of COVID-19 Spread on Sales Activities and Business Performance

「During the fiscal year, Japan's economy followed a gradual recovery trend as the movement of people recovered, personal consumption picked up amid improving employment and income conditions, and inbound demand increased following the reclassification of COVID-19 as a Category V disease under the Infectious Diseases Control Law.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the nine-month period ended 31 December, Japan's economy began to show signs of a gradual recovery in economic activity, including the effects of various policies addressing COVID-19 and increased personal consumption following the easing of restrictions on activities. However, the outlook for the economy remained uncertain due to fluctuations in foreign exchange markets caused by the rapid depreciation of the yen and surging global resource and fuel prices resulting from the situation involving Russia and Ukraine.」

「During the six-month period ended 30 September, Japan's economy began to show signs of a gradual recovery in economic activity, including the effects of various policies addressing COVID-19 and increased personal consumption following the easing of restrictions on activities. However, the outlook for the economy remained uncertain due to fluctuations in foreign exchange markets caused by the rapid depreciation of the yen and surging global resource and fuel prices resulting from the situation involving Russia and Ukraine.」

「There were no new business risks or material changes to the business risks described in the annual securities report for the previous fiscal year during the three-month period ended 30 June. The company will continue to monitor the impact of the COVID-19 pandemic on its business.」

「With respect to COVID-19, we have implemented infection-control measures, including thorough hygiene management and recommending working from home. During the state of emergency from April 2020, it was demonstrated that most operations could be handled remotely. However, sales activities were affected because face-to-face sales activities by clients and distributors were restricted.」

「In the Buddycom business, sales activities were restricted due to the spread of COVID-19, and there were cancellations of short-term contracts for the Olympic and Paralympic Games, among other impacts. However, the number of contracted companies increased due to greater brand awareness from strengthened marketing and stronger sales capabilities among distributors. As of the end of the third quarter, the number of contracted companies was 538 (400 at the end of the previous fiscal year). In addition, partly due to winning large contracts in amusement, railways and other sectors, ARR※ was ¥374.788 million (¥295.703 million at the end of the previous fiscal year, including ¥17.970 million from short-term contracts during the Olympic and Paralympic Games).」

「In the Buddycom business, sales activities were restricted and short-term contracts for use during the Olympic and Paralympic Games were cancelled due to the COVID-19 pandemic. However, the number of contracted companies increased as a result of greater awareness through strengthened marketing and stronger sales capabilities among distributors. At the end of the six-month accounting period, the number of contracted companies was 479, compared with 400 at the end of the previous fiscal year, and ARR※ was ¥308.119 million, compared with ¥295.703 million at the end of the previous fiscal year, including ¥17.970 million from short-term contracts for use during the Olympic and Paralympic Games.」

「There were no new business risks or material changes to the business risks described in the annual securities report for the previous fiscal year during the three-month period ended 30 June. The company will continue to monitor the impact of the COVID-19 pandemic on its business.」

「In the Buddycom business, the COVID-19 pandemic restricted sales activities and resulted in cancellations by existing customers, particularly in industries such as transportation that were heavily affected.」