Impact on profit from a change in the method for estimating provisions for points

「Previously, the Company recorded as a points provision the amount of points granted that was expected to be used in the future, and recorded the expense associated with the points provision as selling, general and administrative expenses. The Company has changed to a method under which the points granted are identified as performance obligations and the transaction price is allocated based on the standalone selling price calculated after taking into account expected future expirations and other factors.」

「Previously, to provide for the use of points granted to members, the company recorded the full balance of points at the end of each accounting period as the estimated amount to be used in its provision for point benefits. As actual data on expired points became available, the company changed its method from the third quarter accounting period under review to record the balance of points after deducting estimated expired points. As a result, operating income, ordinary income and profit before income taxes for the cumulative third quarter under review each increased by ¥33.682 million.」