Integration of the financial services business into kimono store operations and establishment of Other businesses

「The Company had previously reported kimono store operations and Other businesses as its 2 reporting segments, but changed to a single Kimono Business segment from the current interim consolidated accounting period. From the fiscal year ended March 2021, the Company had partially terminated or downsized Other businesses, including the online kimono dressing class and nail salon businesses launched as peripheral businesses related to kimono. After considering the actual decision-making processes and allocation of management resources in the Group's business development, management determined that disclosure as a single Kimono Business segment would more appropriately reflect the Group's actual management structure.」

「From the current consolidated fiscal year, the Company reviewed its business segments. Because the financial services business generates revenue associated with product sales at kimono stores, the Company began managing store-level earnings by combining it with the kimono-related business. Accordingly, the reporting segments were changed from the previous kimono-related business and financial services business to kimono store operations, which includes the financial services business within the kimono-related business, and Other businesses, which consolidates the new businesses described above and others.」

「The Company launched the nail salon business in the first quarter of the fiscal year ending March 2022 and the online school business in the second quarter. From the first quarter of the consolidated fiscal year, it also reviewed its business segments. Because the financial services business generates revenue associated with product sales at kimono stores, the Company began managing store-level earnings by combining it with the kimono-related business.」

「The Group had traditionally operated the kimono-related business and its associated financial services business. From the fiscal year ended March 2021, it began promoting the creation and expansion of new businesses for further medium- to long-term growth, including the photo studio and e-commerce businesses. It also launched the nail salon business in the first quarter of the fiscal year ending March 2022 and planned to launch the online school business in the second quarter. From the current first quarter of the consolidated fiscal year, the Company reviewed its business segments. Because the financial services business generates revenue associated with product sales at kimono stores, the Company began managing store-level earnings by combining it with the kimono-related business. Accordingly, the reporting segments were changed from the previous kimono-related business and financial services business to kimono store operations, which includes the financial services business within the kimono-related business, and Other businesses, which consolidates the new businesses described above and others.」