FY2018-Q1 Segment Results

「Under these circumstances, we promoted the nationwide rollout and branding of “Skog no Ie,” a proposal-based model home designed to support sales activities for local builders, and worked to develop and strengthen sales of new products, including imported natural-material products. As a result, revenue was ¥2,951 million, up 3.6% year on year, and operating profit was ¥245 million, up 7.0%. Competition with other companies in the same and other industries continues to intensify in the home improvement retail industry. Against this backdrop, the Taima store, which opened in March, made a significant contribution to revenue, but the opening sale caused a substantial decline in the gross margin on sales, while expenses including advertising and security costs increased. As a result, revenue was ¥5,223 million, up 33.7% year on year, and operating profit was ¥66 million, down 74.2%. As there were no sales of properties held for sale in the first quarter, unlike the previous year's first quarter, rental asset operations generated revenue of ¥59 million, down 43.7% year on year, and operating profit of ¥51 million, up 64.7%. Revenue increased 7.1% year on year to ¥216 million due to an increase in new customers and mid-rise projects, but the replacement purchase of materials and increased purchases associated with the expansion of the Asahikawa sales office resulted in an operating loss of ¥18 million, compared with an operating loss of ¥5 million in the previous year’s first quarter.」