Expanding functions after the relocation and broadening the business scope and earnings base

「Furthermore, to ensure the continued supply of safe, reliable products to end consumers, seafood wholesalers are required to implement thorough HACCP-based hygiene management. As a participant in the supply chain extending from producers to consumers, we implement hygiene management based on HACCP principles and utilize ISO 22000 certification, the international standard for food safety management systems, to further enhance the functionality of our platform as a food sales company focused on seafood products at the central wholesale market, which connects upstream producers, including seafood shippers and processors, with downstream intermediate wholesalers, mass retailers and large-volume users, including by responding to digitalization such as DX」

「保管業務の効率化等により、売上高は1,466百万円（前年同期は1,403百万円）、セグメント利益は466百万円（前年同期は409百万円のセグメント利益）となりました。」

「In the seafood wholesale business, profitability improved partly as a result of logistics improvements. In the refrigerated warehousing business, increased revenue and greater operating efficiency resulted in operating profit of ¥275 million (operating profit of ¥66 million in the same period of the previous year), ordinary profit of ¥310 million (ordinary profit of ¥95 million), and interim net income attributable to owners of the parent of ¥216 million (¥74 million).」

「We also plan to establish a sales support office within our sales department and build a fresh and frozen food logistics network.」

「Meanwhile, as the refrigerated warehousing business performed well, operating profit was ¥66 million, compared with an operating loss of ¥19 million in the same period of the previous year; ordinary profit was ¥95 million, compared with ordinary profit of ¥15 million; and interim net profit attributable to owners of the parent was ¥74 million, compared with interim net profit attributable to owners of the parent of ¥21 million.」

「We will seek to further enhance the platform as a food sales company focused on seafood products.」

「The refrigerated warehousing business recorded revenue of ¥1,028 million, compared with ¥893 million in the same period of the previous year, and segment profit of ¥248 million, compared with segment profit of ¥116 million in the same period of the previous year.」

「There were no material changes to the management policies, management strategies or other matters established by our group during the first nine months of the fiscal year.」

「There were no material changes during the second quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「There were no material changes during the first quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「The merger has enabled more effective use of facilities and storage capacity based on the characteristics of entrusted cargo, mutual functional support between the distribution-oriented and storage-oriented refrigerated warehouses, flexible staff allocation and integrated sales activities across the 2 sites. Together, these factors have gradually enabled more integrated and efficient operations.」

「There were no material changes to the management policies, management strategies or other matters established by our group during the first nine months of the fiscal year.」

「株式会社東市ロジスティクス, which operates the 2 refrigerated warehouses owned by the company, has been able to use its facilities and storage capacity more effectively by taking into account the characteristics of entrusted cargo as a result of the merger. Together with flexible staff allocation, this has gradually enabled more integrated and efficient operations.」

「Regarding the organizational restructuring, the merger of 株式会社東市ロジスティクス, described below, has enabled operational coordination among the refrigerated warehouses and produced certain benefits.」

「There were no material changes during the first quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「“Enhance the platform as a wholesale distributor of seafood products and pursue sustainable growth”」

「There were no material changes to the management policies, management strategies or other matters established by our group during the first nine months of the fiscal year.」

「As the Toyosu Higashiichi refrigerated warehouse at Toyosu Market operated throughout the year, revenue totaled ¥1,134 million, compared with ¥732 million in the same period of the previous year, and segment profit totaled ¥228 million, compared with segment profit of ¥58 million in the same period of the previous year.」

「The refrigerated warehousing business recorded revenue of ¥860 million, compared with ¥474 million in the same period of the previous year, and segment profit of ¥246 million, compared with segment profit of ¥39 million in the same period of the previous year.」

「In terms of earnings, gross profit declined with the decrease in revenue from the wholesale seafood business, while costs also increased because of the latest facilities at Toyosu Market. However, earnings improved in the second quarter of the consolidated fiscal period (July to September 2019), and the Toyosu Higashiichi refrigerated warehouse, which began operations in October of the previous year, began contributing to earnings. As a result, the operating loss was ¥180 million, compared with an operating loss of ¥271 million in the same period of the previous year, representing an improvement from the same period of the previous year」

「There were no material changes during the first quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「Following the opening of Toyosu Market, the newly built Toyosu Higashiichi refrigerated warehouse contributed to improved earnings, with revenue of ¥732 million, compared with ¥415 million in the same period of the previous year, and segment profit of ¥100 million, compared with segment profit of ¥36 million in the same period of the previous year.」

「On 11 October 2018, the Tokyo Metropolitan Central Wholesale Market's Tsukiji Market relocated to Toyosu Market, and the company began operations at the new market. With the opening of Toyosu Market, the Toyosu Higashiichi refrigerated warehouse owned by the company also began operations.」

「There were no material changes during the second quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「There were no material changes during the first quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「There were no material changes to the management policies, management strategies or other matters established by our group during the first nine months of the fiscal year.」

「There were no material changes during the first quarter of the fiscal year to the management policies, management strategies or other matters established by our Group.」

「The new Toyosu refrigerated warehouse remains non-operational and is recognized as construction in progress, leaving the company in a position where it has no choice but to suspend progress on the initial plan for “Phase II.”」

「“Phase II” is positioned as a period aimed at expanding functions following the relocation. We intend to make steady progress toward further expanding the business scope and strengthening the earnings base by steadily deepening the initiatives undertaken in “Phase I,” including efforts to bring the newly built refrigerated warehouse into full-scale operation, improve logistics efficiency within the market and acquire a trading area, and by effectively drawing out synergies from the new refrigerated warehouse.」