Change to the straight-line depreciation method to reflect the actual use of logistics equipment

「As a result of this change, compared with the previous method, operating income for the nine months ended the third quarter increased by ¥967 million, while ordinary income and quarterly net income before income taxes and other adjustments each increased by ¥986 million.」

「The depreciation method for property, plant and equipment, excluding lease assets, was previously the declining-balance method, except that the straight-line method was used for buildings acquired on or after 1 April 1998, excluding building improvements, and for building improvements and structures acquired on or after 1 April 2016. From the current first-quarter consolidated accounting period, we have changed to the straight-line method. Previously, the straight-line method was used for major facilities such as buildings, while the declining-balance method was used for logistics equipment. Following a review of the actual use of the assets prompted by investment in logistics facilities amid changes in the business environment, we determined that the straight-line method, which allocates costs evenly, more appropriately reflects the actual use of facilities supporting the stable supply of our products, because logistics equipment is expected to operate stably over the long term together with the buildings.」