Continued losses and impairment indicators for the Work Mate service

「The IoT business posted higher sales and income as sales of D-Drive and Work Mate progressed steadily. For the current consolidated fiscal year, net sales were ¥1,024 million, up 20.6% year on year, and segment income was ¥277 million, compared with segment income of ¥57 million in the previous fiscal year.」

「The IoT business posted higher sales and income year on year as sales of D-Drive and Work Mate progressed steadily」

「IoT operations recorded higher net sales and profit year on year as sales of D-Drive and Work Mate progressed steadily. During the interim consolidated accounting period, net sales were ¥565 million, up 96.5% year on year, and segment profit was ¥157 million, compared with a segment loss of ¥38 million in the previous interim consolidated accounting period.」

「During the fiscal year, D-Drive and Work Mate, which are classified within the IoT business by segment, showed steady increases in adoption and inquiries. However, because advertising and promotional expenses and development costs have preceded revenue generation, operating profit or loss has remained negative. The car-sharing-related services were also judged to show signs of impairment because operating profit or loss is expected to be negative due to the projected contraction of the business.」

「Regarding the segment loss, the loss narrowed from the previous interim consolidated accounting period because revenue from high-margin cloud service usage fees increased as the number of Work Mate adoptions rose during the current interim consolidated accounting period.」

「In the Work Mate business, the number of adopting companies has been steadily increasing, but monetization has required time because advertising and promotional expenses and development costs have preceded revenue generation. As operating profit or loss has remained negative, we examined future recoverability under the Accounting Standard for Impairment of Fixed Assets and reduced the carrying amount to the recoverable amount, recording an impairment loss of ¥93 million as an extraordinary loss.」

「During the main activities in the cumulative consolidated period through the third quarter, we enhanced and expanded sales of the safety monitoring service Work Mate and the safe-driving support service D-Drive. We also actively conducted promotional activities to acquire new customers through information dissemination via web marketing and webinars, as well as participation in trade shows, continuing from the previous fiscal year. As announced periodically on our website, adoption has been increasing steadily.」

「As announced periodically on our website, adoption has been increasing steadily. In the IoT business, higher adoption of Work Mate and D-Drive offset the decline in maintenance revenue caused by the suspension of telematics device shipments, resulting in higher revenue. However, profitability deteriorated, with the loss widening from the same quarter of the previous year due to a lower profit margin caused by a change in the sales mix and higher advertising and promotional expenses.」

「We are enhancing and expanding sales of the safety monitoring service Work Mate and the safe-driving support service D-Drive. We are also actively conducting promotional activities to acquire new customers through information dissemination via web marketing and webinars, as well as participation in trade shows, continuing from the previous fiscal year. As announced periodically on our website, adoption has been increasing steadily.」

「In the Work Mate business, implementation scale and pace had remained below expectations, and monetization was taking longer than expected. As a result of a conservative assessment of recoverability, the company decided, in accordance with the Accounting Standard for Impairment of Fixed Assets, to reduce the carrying amount of the fixed assets held by the business to their recoverable amount and record an impairment loss of ¥73 million as an extraordinary loss.」

「Work Mate and D-Drive implementations increased steadily, partly due to the effects of active promotional activities, resulting in higher revenue. On the profit side, however, the loss widened from the same quarter of the previous year due to increases in advertising expenses, depreciation of property, plant and equipment and intangible assets, and other factors.」

「Work Mate implementations increased steadily, partly due to the effects of active promotional activities, resulting in higher revenue. On the profit side, however, the loss widened from the same quarter of the previous year due to increases in advertising expenses, depreciation of property, plant and equipment and intangible assets, and other factors.」

「Work Mate implementations increased steadily, partly due to the effects of active promotional activities, resulting in higher revenue and a narrower loss than in the same quarter of the previous year.」

「The number of Work Mate orders has also been steadily trending upward as a result of active promotional activities.」

「Work Mate has steadily increased the number of orders, partly as a result of active promotional activities.」

「The number of Work Mate implementations has been increasing, particularly at factories and construction sites, and the service is contributing to business performance.」

「During the consolidated fiscal year, the Work Mate service, classified within the IoT business segment, was acquiring customers as a new safety and health monitoring service and had continued to generate negative operating profit or loss, leading to a determination that there were indications of impairment. Accordingly, the company assessed whether recognition of an impairment loss was required during the consolidated fiscal year, but determined that no impairment loss needed to be recognized because the total undiscounted future cash flows exceeded the carrying amount of the fixed assets.」