Temporary Costs Associated with Integrating New Subsidiaries into the Group’s Management Structure

「In addition to upfront acquisition-related expenses of ¥93 million arising from the M&A of 株式会社薬師スタジオ, 株式会社ニューヨークジョーエクスチェンジ and アークネット株式会社, goodwill amortization increased. However, progress in measures to improve profitability across the businesses and the one-time revenue increase accompanying the launch of a new system in the traditional apparel and jewelry business absorbed these costs, resulting in performance above the previous year.」

「In terms of profit, the company secured steady earnings growth even as acquisition-related expenses of ¥67 million were incurred in connection with the M&A of 2 companies, as revenue growth in the traditional apparel and jewelry business and measures to stabilize earnings steadily produced results across divisions.」

「In the education business, in addition to the stable operation of 株式会社マンツーマンアカデミー's cram schools, 東京ガイダンス株式会社, which joined the group as a consolidated subsidiary in May 2022, contributed throughout the first half. Sales were ¥493 million, up 21.2% year on year. In terms of profit, the one-time management integration costs associated with bringing 東京ガイダンス株式会社 into the group, which had been recognized in the same period of the previous year, were no longer incurred in the current period, and both companies performed steadily. As a result, segment profit was ¥23 million, compared with a segment loss of ¥7 million in the same period of the previous year, marking a return to profitability.」

「In terms of profit, the one-time management integration costs associated with bringing 東京ガイダンス株式会社 into the group, which were recognized in the same period of the previous year, were no longer incurred in the current period. In addition, both companies performed steadily, and the segment loss improved to ¥14 million, compared with a segment loss of ¥45 million in the same period of the previous year.」

「Although one-time management integration costs were recognized in connection with bringing 東京ガイダンス株式会社 into the group, segment profit was ¥43 million, up 873.9% from the previous fiscal year, and its contribution to profit steadily materialized.」

「In the education business, in addition to the stable operation of 株式会社マンツーマンアカデミー's cram schools, the addition of 東京ガイダンス株式会社 as a consolidated subsidiary in May 2022 also contributed, resulting in sales of ¥659 million, up 86.0% year on year. Although one-time management integration costs were recognized in connection with bringing 東京ガイダンス株式会社 into the group, segment profit was ¥20 million, up 694.8% year on year, as its contribution to profit steadily materialized.」

「Although the segment loss was ¥7 million, compared with a segment loss of ¥9 million in the same period of the previous year, due to the recognition of one-time management integration costs associated with bringing 東京ガイダンス株式会社 into the group, steady profit contributions have begun to materialize.」

「The number of students at 株式会社マンツーマンアカデミー was generally progressing above the previous year's level, and sales were steady. However, due to the one-time recognition of management integration costs associated with bringing 東京ガイダンス株式会社 into the group, the segment loss was ¥45 million, compared with a segment loss of ¥13 million in the same period of the previous year.」

「In terms of profit, installment revenue from collection-guaranteed shopping credit contributed, but increased amortization of goodwill following M&A, as well as acquisition-related expenses and management integration costs incurred as one-time expenses, resulted in operating profit of ¥51 million, down 78.9% from the previous fiscal year, and ordinary profit of ¥67 million, down 74.6%.」

「In terms of profit, in addition to the impact of lower sales, one-time costs were incurred at 株式会社みうら, which had newly become a subsidiary, in connection with integrating its management into the group. Segment profit was ¥3 million, down 92.0% from the previous fiscal year.」

「In terms of profit, one-time costs were incurred at 株式会社みうら, which had newly become a subsidiary, to integrate its management structure into the group, among other factors. Segment profit was ¥8 million, down 76.1% year on year.」