Restructuring the production system, including the reorganisation of domestic consolidated subsidiaries

「The company will also reorganise the publishing printing business within the group and pursue further rationalisation and the establishment of a flexible operating structure, thereby shifting the production model from mass production to high-value-added production and improving profitability.」

「These are costs and other expenses incurred in connection with the closure of the Tomakomai Plant of the company’s consolidated subsidiary, 株式会社コスモグラフィック.」

「During the fiscal year, 共同印刷マーケティングソリューションズ株式会社 was absorbed into Kyodo Printing Co.,Ltd., the surviving company, with 共同印刷マーケティングソリューションズ株式会社 as the absorbed company. In addition, 共同エフテック株式会社 was absorbed into 共同印刷西日本株式会社, the surviving company, with 共同エフテック株式会社 as the absorbed company.」

「In addition, because the factories are scheduled to close and the sites to be consolidated as of 31 March 2025, the recoverable amount of buildings and structures is measured based on net selling price, which is calculated using real estate appraisal values.」

「In addition, effective 1 October 2020, the company’s subsidiary Kyodo Printing Seihan assumed, through a company split by way of a simplified absorption-type company split, the paper printing business of the Manufacturing Division of the Information Media Business Department in the company’s Information Communications segment and the prepress output business of the company’s subsidiary 株式会社コスモグラフィック, and changed its trade name on the same date to 共同印刷メディアプロダクト株式会社.」

「In addition, effective 1 October 2020, the company’s subsidiary Kyodo Printing Seihan assumed, through a company split by way of a simplified absorption-type company split, the paper printing business of the Manufacturing Division of the Information Media Business Department in the company’s Information Communications segment and the prepress output business of the company’s subsidiary 株式会社コスモグラフィック, and changed its trade name on the same date to 共同印刷メディアプロダクト株式会社.」

「The company resolved that Kyodo Printing Seihan would assume, through a company split by way of a simplified absorption-type company split, the paper printing business of the Manufacturing Division of the Information Media Business Department in the company’s Information Communications segment and the prepress output business of コスモグラフィック, and entered into an absorption-type company split agreement on 1 July of the same year.」

「As a result, toothpaste and cosmetics tubes both increased. In flexible packaging, materials for liquid products increased, while lid materials remained at about the same level as in the previous fiscal year. In paperboard packaging, tissue cartons increased, although wrap cartons declined. Industrial materials declined, mainly in packaging materials for pharmaceutical products. In addition, the blow-molded bottle business transferred from KUREHA CORPORATION is included in this segment. As a result, segment-wide revenue was ¥26,338 million, up 4.2% year on year, but the segment reported an operating loss of ¥373 million, compared with operating profit of ¥208 million in the previous fiscal year, because increased investment aimed at expanding the business and costs for establishing the production structure for the paperboard packaging and flexible packaging businesses were incurred ahead of the resulting benefits.」

「Operating loss was ¥176 million, compared with operating profit of ¥204 million in the same period of the previous year, because increased investment aimed at expanding the business and the costs of rebuilding the production structure for the flexible packaging and paperboard packaging businesses at the Moriya No. 1 Plant were incurred ahead of the resulting benefits.」

「As a result, segment-wide revenue was ¥6,464 million, up 2.9% year on year, but the segment reported an operating loss of ¥64 million, compared with operating profit of ¥163 million in the same period of the previous year, because increased investment aimed at expanding the business and the costs of rebuilding the production structure for the flexible packaging and paperboard packaging businesses at the Moriya No. 1 Plant were incurred ahead of the resulting benefits.」

「Operating profit was ¥208 million, down 73.9% year on year, due to delays in establishing the production structure at the dedicated flexible packaging building at the Moriya Plant, attributable to staff shortages and other factors.」

「In the Lifestyle and Industrial Materials segment, the company focused on starting up the dedicated flexible packaging building at the Moriya Plant, which was completed in April last year, with the aim of expanding its flexible packaging business.」

「In the Lifestyle and Industrial Materials businesses, the company proceeded with the reorganisation of the Moriya Plant to expand its flexible packaging business and improve the profitability of its paperboard packaging business, and focused on starting up the dedicated flexible packaging building completed in April.」

「In the Lifestyle and Industrial Materials segment, the company is proceeding with the reorganisation of the Moriya Plant to expand its flexible packaging business and improve the profitability of its paperboard packaging business, and the dedicated flexible packaging building at the Moriya Plant was completed in April this year.」

「In addition to borrowings undertaken to meet funding needs arising from major capital investments, including the reorganisation of the Moriya No. 1 Plant and the Koshigaya Plant,」

「In addition, because 小石川プロセス株式会社 was absorbed into its consolidated subsidiary 株式会社コスモグラフィック during the first quarter consolidated accounting period, it has been excluded from the scope of consolidation.」

「During the three months ended the first quarter, 小石川プロセス株式会社 was excluded from the scope of consolidation because it was absorbed in a merger by its consolidated subsidiary, 株式会社コスモグラフィック.」

「During the fiscal year, 共同オフセット(株) was excluded from the scope of consolidation because it was absorbed in a merger by its consolidated subsidiary, 共同印刷製本(株).」

「As a result of this change, compared with the previous method, depreciation expense for the nine months ended the third quarter decreased by ¥838 million, operating profit increased by ¥774 million, and ordinary profit and profit before income taxes and other adjustments increased by ¥775 million.」

「The policy is being changed because the review of the restructuring of the production system, including the reorganisation of domestic consolidated subsidiaries, and the resulting assessment of the operating status of production facilities and other assets showed that they were operating stably and generating earnings, and a similar situation is expected to continue; the straight-line method of depreciation would therefore provide a more appropriate matching of revenues and expenses, while standardising the accounting treatment with overseas consolidated subsidiaries that use the straight-line method would enable more rational comparisons of profitability.」

「This followed a review of the restructuring of the production system, including the reorganisation of domestic consolidated subsidiaries, and an assessment of the operating status of production facilities and other assets, which showed that they were operating stably and generating earnings,」