Domestic business: higher revenue and profit

「The segments are classified as the IoT business, Web platform business and network business. Accordingly, the comparisons and analysis for the cumulative first quarter under review are based on the revised segment classification.」

「Domestic business | Previous fiscal year | Current fiscal year | YoY | Revenue from external customers | ¥5,257 million | ¥6,886 million | 31.0% | Segment profit/(loss) | (¥540 million) | ¥106 million」

「As a result, revenue increased year on year.」

「Domestic business | Previous cumulative second quarter | Current cumulative second quarter | YoY | Revenue from external customers | ¥2,211 million | ¥2,690 million | 21.7% | Segment profit/(loss) | (¥389 million) | (¥138 million)」

「These revenue drivers resulted in higher revenue and profit year on year.」

「Domestic business | Previous fiscal year | Current fiscal year | YoY | Revenue from external customers | ¥5,884 million | ¥5,257 million | (10.7%) | Segment profit/(loss) | ¥643 million | (¥540 million)」

「For the cumulative third quarter under review, the segment recorded higher revenue in the IoT field, driven by new projects involving industrial drones and data science, and received inquiries for new projects related to digital transformation and work-style reform. Meanwhile, customers have restrained investment amid continued uncertainty over the outlook for economic activity, resulting in the downsizing, postponement and cancellation of IoT service development and construction projects.」

「In addition to these factors behind the revenue decline, depreciation increased due to stepped-up product development investment, resulting in lower revenue and profit than in the previous fiscal year.」

「The segment reported year-on-year decreases in both revenue and profit. Revenue was affected by delays in projects due to delayed business negotiations and lower royalty income resulting from a decline in TV and automobile shipments, while higher depreciation from increased product development investment and higher costs associated with strengthening the operating structure were incurred ahead of the resulting benefits.」

「In the current consolidated fiscal year, revenue increased year on year in both the web platform and digital publishing fields. However, higher depreciation expenses associated with increased product development investment and higher costs to strengthen the sales and administrative structure came first, resulting in higher revenue but lower segment profit for the segment as a whole compared with the previous fiscal year.」

「Segment profit declined as depreciation increased with stepped-up product development investment and investments to strengthen sales and administrative structures ahead of business expansion were made first.」

「For the segment during the current six-month period of the consolidated fiscal year, business progress in the IoT and Web Platform fields was broadly in line with the initial plan, and revenue was at the same level as in the same quarter of the previous year. In electronic publishing, revenue increased year on year, but progress was somewhat below plan, with signs of delays in expanding new projects. As a result, revenue increased year on year. Segment profit declined and turned negative as depreciation increased with stepped-up product development investment and investments to strengthen sales and administrative structures ahead of business expansion were made first.」

「For the segment during the current three-month period of the consolidated fiscal year, revenue remained broadly at the same level as in the same quarter of the previous year. Segment profit declined, however, as depreciation increased with stepped-up product development investment and investments to strengthen sales and administrative structures ahead of business expansion were made first.」

「In the current consolidated fiscal year, both the IoT and digital publishing fields reported higher revenue. As royalty and license revenue in the IoT field exceeded initial expectations, the segment as a whole reported year-on-year increases in both revenue and profit.」

「For the segment during the current nine-month period of the consolidated fiscal year, revenue increased in both the IoT and electronic publishing fields compared with the same quarter of the previous year. This offset the impact of higher depreciation resulting from increased product development investment, and segment profit increased.」

「For the segment during the current six-month period of the consolidated fiscal year, revenue increased in both the IoT and electronic publishing fields compared with the same quarter of the previous year, but profit declined because depreciation increased due to product development investment.」

「For the segment during the current three-month period of the consolidated fiscal year, revenue declined overall year on year because revenue in the IoT field decreased. Profit also declined because depreciation increased due to product development investment and costs increased as services expanded in electronic publishing.」

「Although overall revenue increased, profit declined because revenue increased and profit was maintained in Domestic Business, while revenue was maintained and profit declined in electronic publishing.」

「For the segment during the current nine-month period of the consolidated fiscal year, revenue and profit increased year on year because sales of IoT solutions, including Beacon, were strong.」

「For the segment during the current six-month period of the consolidated fiscal year, revenue increased year on year because sales of IoT solutions, including Beacon, were strong. Profit also increased as profitability in the electronic publishing business improved.」

「Revenue and profit increased because sales of IoT solutions, including browsers for high-end devices and Beacon, were strong compared with the same quarter of the previous year.」