Business continuity risks related to logistics, information systems, and the operation of e-commerce websites

「We will promote the development and review of business continuity plans, including redundant configurations for information systems and e-commerce sites in cloud environments, as well as decentralization across multiple locations.」

「Development of the new core merchandise management system has been completed, and the system has been operational since April 2025. Digitizing the process from product ordering through sales is expected to improve operational efficiency, while greater inventory allocation accuracy is expected to reduce missed sales opportunities and curb logistics-related costs.」

「The company is expanding the scale of its own online shopping site, as shown by increases in the number of sessions and app downloads. It is also continuing to address issues by making system modifications and reviewing inventory allocation.」

「Under "Promotion of DX," we are identifying and repeatedly improving issues such as the usability of the new online shopping site, with the aim of enhancing the value provided to customers, while working toward revising the CRM (*) program.」

「To address these risks, we will promote the development of business continuity plans, including redundant configurations for information systems and e-commerce sites in cloud environments, and decentralization across multiple locations, while continuing to strengthen business operations and communications with outsourcing providers.」

「Under "Promotion of DX," the company is building infrastructure and developing its operating structure and other elements toward the renewal of its new online shopping site during the fiscal year ending March 2022.」

「Under DX, in addition to building infrastructure and preparing its operating structure for the relaunch of the new in-house net e-commerce site during the fiscal year ending March 2022, the company is considering service revisions to enhance the value provided to customers and optimizing business processes to improve internal operating efficiency.」

「Under DX, the company is steadily building infrastructure and preparing its operating structure for the relaunch of its own net e-commerce site during the fiscal year ending March 2022, using its own infrastructure.」

「Extraordinary losses for the consolidated fiscal year included a ¥457 million loss on the sale of shares in an affiliated company resulting from the sale of shares in a consolidated subsidiary, and impairment losses totaling ¥1,903 million on intangible fixed assets, including software related to the development of the Company's own e-commerce business, and on some operating stores, among other factors.」

「The Company recorded impairment losses totaling ¥2,509 million as extraordinary losses on intangible fixed assets, including software related to the development of its own e-commerce business, and on some operating stores, among other factors, resulting in net income attributable to owners of the parent of ¥3,522 million, down 45.1% year on year.」

「Although the company's online shopping site was temporarily suspended due to development delays, sales increased through inventory allocation to other shopping sites and timely promotional campaigns. The Company recorded impairment losses totaling ¥988 million on intangible fixed assets, including software related to the development of its own e-commerce business, and on some operating stores as extraordinary losses, among other factors, resulting in net income attributable to owners of the parent of ¥4,687 million, down 18.9% year on year.」

「Although the company's online shopping site was shut down from 12 September due to delays in its development, sales increased as inventory was allocated to other shopping sites.」

「If an event occurs that makes it difficult to continue operations involving the logistics network, information systems, or e-commerce site operations that support the Group's business activities, it could affect the Group's operating results.」