Strengthening Budgeting and Profitability Management by Division and Location

「At certain consolidated subsidiaries, costs for repairs and other services that had previously been recorded as selling, general and administrative expenses have been recorded as cost of sales from the first quarter of the current consolidated fiscal year. This change reflects the establishment of a cost management structure because the proportion of sales of service parts, repairs and other services, the subsidiary’s main businesses, has increased and is expected to continue increasing, creating a need to accurately ascertain the cost of sales.」

「In particular, we will strengthen budget and profitability management by division and location. We will also enhance support tools that use IT and other technologies and pursue initiatives to improve profitability in business operations by strengthening management at the operational level.」