Rebuilding the Business Portfolio and Concentrating Management Resources under New Lifestyles

「During the interim period, the Company pursued sustainable earnings improvement by reforming its earnings structure and issued new shares through a third-party allotment to strengthen its capital base.」

「Initiatives based on the policies of the Second Medium-Term Management Plan also progressed steadily. The matchmaking business began developing franchise operations for marriage consultancies, while the casual wedding business launched a new brand and took other measures.」

「The Company positions the 3-year period beginning with the fiscal year ending March 2025 as a period for building the foundations for sustainable growth, and is working to strengthen competitiveness and productivity, human capital and financial capital, and coexistence with society.」

「The third quarter progressed generally in line with plan, and the deficit narrowed substantially as earnings in the casual wedding business grew from October onward. Advertising efficiency improvements and the effects of site consolidation and closure also emerged in selling, general and administrative expenses.」

「However, profitability has steadily improved through structural business reform and management rationalization to date, and the financial foundation is also becoming stronger. In addition, for the fiscal year ending March 2024, the Company is working to establish a highly profitable structure, strengthen product competitiveness and build the foundations for sustainable management, with the aim of returning to a growth trajectory」

「The first quarter progressed generally in line with plan, and initiatives aimed at achieving profitability in the second half also proceeded smoothly.」

「For the fiscal year ending March 2024, the Company will work to establish a highly profitable structure, strengthen product competitiveness and build the foundations for sustainable management, with the aim of returning to a growth trajectory from the following fiscal year onward. Specifically, it will focus on fundamental reform of its earnings structure to establish a highly profitable structure, proactive responses to social issues to strengthen product competitiveness, and the redevelopment of various policies and formulation of a medium-term management strategy based on them to build the foundations for sustainable management.」

「However, while pursuing a return to short-term earnings recovery and establishing a highly profitable structure and strengthening product competitiveness over the medium to long term, the Company recorded a quarterly net loss attributable to owners of the parent of ¥251 million for the nine-month period of the fiscal year ending March 2023, and net assets were negative ¥13 million at the end of the third quarter of that fiscal year. As a result, circumstances that raise substantial doubt about the going-concern assumption continue to exist. However, because the various measures implemented to date are expected to produce tangible results from the fourth quarter of the fiscal year ending March 2023 onward, and because the Company plans to consider and implement additional measures, including business selection and concentration and further strengthening of its financial foundation, it has determined that no uncertainty regarding the going-concern assumption exists.」

「Although the second quarter was affected by the resurgence of COVID-19 infections and intermittent states of emergency, earnings increased and improved, mainly in the core matchmaking and casual wedding businesses, as a result of structural business reform and management rationalization. Selling, general and administrative expenses decreased by ¥541 million from the same period of the previous year, mainly due to reductions in advertising and promotional expenses and rent, as well as temporary closures utilizing employment adjustment subsidies.」

「In the first quarter, we gradually resumed acquiring new customers at our marriage agencies after suppressing acquisition in the previous fiscal year, and implemented various measures, particularly to rebuild awareness and strengthen our sales structure.」

「Although the third quarter was affected by the resurgence of COVID-19 infections and the state of emergency, profitability in existing businesses continued to improve through structural business reform and management rationalization, resulting in higher revenue and improved earnings. Selling, general and administrative expenses decreased by ¥906 million from the same period of the previous year, due to restraints on advertising and promotional expenses, reductions in rent and temporary closures utilizing employment adjustment subsidies.」

「Although the second quarter was affected by the resurgence of COVID-19 infections and intermittent states of emergency, earnings increased and improved, mainly in the core matchmaking and casual wedding businesses, as a result of structural business reform and management rationalization. Selling, general and administrative expenses decreased by ¥541 million from the same period of the previous year, mainly due to reductions in advertising and promotional expenses and rent, as well as temporary closures utilizing employment adjustment subsidies.」

「In the casual wedding business, the Company is accelerating structural reform, developing corporate customer acquisition channels that do not depend on advertising, and launching services not centered on FB (Food & Beverage: food and drinks) as stable wedding offerings less affected by COVID-19 and the economic environment, with sales activities now under way. To reduce fixed selling, general and administrative expenses, the Company decided on additional management rationalization and implemented reductions in director compensation, executive management salaries and advertising and promotional expenses. It is also currently arranging external secondments for up to 100 employees, approximately 20% of its workforce. These initiatives are progressing smoothly, and most of the effects are expected from the third quarter of the fiscal year ending March 2022 onward.」

「In particular, to improve profitability, the Company is strengthening the quality of existing services and pursuing thorough efficiency improvements in its core matchmaking business, while expanding Partner Agent ONLINE, an online marriage consultancy launched as a new service that maintains the quality of its conventional services. In the casual wedding business, the Company is accelerating structural reform and building a product portfolio that is not centered on FB (Food & Beverage: food and drinks).」

「To resolve or improve this situation, the Company is rebuilding its business portfolio across its operations, concentrating management resources on areas where demand is expected to grow and working to reduce fixed costs outside those areas. Specifically, it is proceeding with site consolidation and closure, optimized personnel allocation and improved operating efficiency through the adoption of systems.」

「To resolve or improve this situation, the Company is working across its operations to rebuild its business portfolio under the new lifestyle, concentrate management resources on areas where demand is expected to grow, and reduce fixed costs outside those areas. Specifically, it plans to consolidate and close sites, optimize personnel allocation and improve operating efficiency through the adoption of systems.」