Risk of Store and Hotel Closures and Impact on Performance Due to COVID-19

「For the asset group concerned, the company reduced the carrying amount to its recoverable amount and recorded the decrease as an impairment loss under extraordinary losses because profitability had declined as a result of changes in the business environment and recovery of the carrying amount was no longer expected following a review of its business policy in anticipation of transferring the business.」

「連結子会社金沢ニューグランドホテルの固定資産に係る減損損失等を特別損失に計上しました結果、」

「The company also recognised an impairment loss of ¥1,967 million on fixed assets of its consolidated subsidiary 株式会社金沢ニューグランドホテル as an extraordinary loss.」

「Regarding ¥3,168.115 million in property, plant and equipment and intangible assets of 株式会社金沢ニューグランドホテル, there are indications of impairment, but no impairment loss has been recognised. The key assumptions in the long-term business plan underlying estimates of undiscounted future cash flows are changes in the occupancy rate and average room rate, together with the resulting increases or decreases in restaurant revenue.」

「Regarding ¥3,235.984 million in property, plant and equipment and intangible assets of 株式会社金沢ニューグランドホテル, operating losses have continued due to the impact of COVID-19 and the Noto Peninsula Earthquake, indicating signs of impairment, but no impairment loss has been recognised.」

「In terms of profitability, although the lodging division of the hotel business struggled to grow, the company worked to manage expenses closely alongside growth in department store revenue.」

「In terms of profitability, although the recovery in the lodging division of the hotel business was delayed, the company worked to manage expenses closely alongside growth in department store revenue.」

「During the current consolidated fiscal year, Japan's economy gradually moved toward containing COVID-19, but the outlook remained uncertain due to the impact of rising energy and raw material prices and other factors.」

「Accordingly, the company has estimated impairment losses on fixed assets and other items based on a revised assumption that the impact of COVID-19 on the hotel business will continue through the second half, gradually ease from FY2023 onward and recover to pre-pandemic levels in FY2024.」

「However, during the current second-quarter consolidated cumulative period, the company has estimated impairment losses on fixed assets and other items based on a revised assumption that, while generally solid performance in the department store business will continue, the hotel business will remain affected through the second half of FY2022 and gradually recover from FY2023 onward.」

「In the department store industry during the current first-quarter consolidated cumulative period, conditions gradually entered a recovery trend after the priority preventive measures were fully lifted in late March, but a full-scale recovery was not achieved.」

「Revenue gradually began to recover from October onward as the spread of infections subsided, but overall performance remained challenging because COVID-19 continued to weigh on results through September.」

「During this period, in its core department store business, the company sought to operate with the safety and security of customers and employees as its top priority. However, the application of priority preventive measures in Ishikawa and Toyama prefectures also forced it to contend with difficult conditions, particularly in attracting customers.」

「During this period, the company worked to operate with the safety and security of customers and employees as its top priority. However, infections began to spread again locally from late April, and the application of priority preventive measures to Kanazawa City from 16 May also forced the company to contend with difficult conditions in attracting customers.」

「During this period, in its core department store business, the company reviewed large customer-attraction events, prioritising the safety and security of customers and employees, and was forced to take extremely severe operating measures, including a temporary closure of approximately 1 month from mid-April.」

「During this period, in its core department store business, the company gave top priority to customer safety and security, reviewed large customer-attraction events such as food fairs, and was forced to take extremely severe operating measures, including suspending operations for approximately 1 month from mid-April.」

「During this period, the company gave top priority to customer safety and employee health. In addition to reviewing customer-attraction events, including cancelling food and specialty-product fairs, it was forced to take extremely severe operating measures, including a temporary closure of approximately 1 month from mid-April.」

「In light of the spread of COVID-19 and related circumstances, the corporate group decided to temporarily close its department stores and hotels in stages from 14 April 2020 onward. Although department store operations resumed on 18 May 2020 and some hotel operations resumed on 25 May, uncertainty continued regarding the impact of the spread of COVID-19.」