Earnings Structure Reform Led by the Structural Reform Promotion Department

「The series of structural reforms, involving the reduction of department-store sales space and expansion of tenant stores, has been completed for the time being,」

「In addition to achieving annual fixed-cost savings of more than ¥40 million by acquiring part of the space at the Yokosuka store on 17 September, making all parcels Company-owned,」

「Going forward, we will continue to reorganize existing stores across the Company, implement various measures using group synergies and strengthen gold and bullion purchasing. During the current fiscal year, we acquired the parcel owned by the landowner of the Yokosuka store, making all parcels Company-owned and achieving annual fixed-cost savings of more than ¥40 million. In addition, on 30 September 2025, we entered into a lease agreement with 株式会社ラウンドワンジャパン and leased vacant space. Along with increasing rental income, we will strengthen initiatives aimed at expanding synergies with the department store zone and work to increase earnings.」

「On the expense side, we continue to promote low-cost operations, including the cost savings resulting from the increase in rental space.」

「On the expense side, we continue to promote thorough low-cost operations, and the increase in rental space has enabled us to significantly reduce selling, general and administrative expenses.」

「On the expense side, we continue to promote thorough low-cost operations, and the increase in rental space has enabled us to significantly reduce selling, general and administrative expenses.」

「On the expense side, we continued to promote thorough low-cost operations, and the increase in rental space enabled us to significantly reduce selling, general and administrative expenses.」

「On the expense side, we continued to promote thorough low-cost operations, and the increase in rental space enabled us to significantly reduce selling, general and administrative expenses from the previous fiscal year.」

「In addition to the strong performance of gold and bullion purchasing throughout the fiscal year, the Company has advanced fundamental reforms to its management framework through various initiatives, including sales promotion programs using group synergies, such as placing health-food mail-order advertisements in the Kanagawa Shimbun, and negotiations to revise transaction terms with business partners.」

「In addition to the strong performance of gold bullion purchasing throughout the fiscal year, the Company improved its profit structure through various initiatives, including sales promotion programs using group synergies, such as placing health-food mail-order advertisements in the Kanagawa Shimbun, and negotiations to revise transaction terms with business partners.」

「Improving the profit structure, which had been the Company's greatest challenge, also contributed to stronger earnings power. The main factors behind the recovery in operating performance were the steady performance of fee income from the gold bullion purchasing business launched to strengthen the profit structure, negotiations to revise transaction terms with business partners, and the opening of a new health-food mail-order channel using group synergies.」

「Regarding expense reductions, we will continue to promote effective expense management and implement cost reviews, including reducing indirect operations through more efficient operating processes and reducing store management expenses. We will also work on the efficient use of personnel expenses by promoting the appropriate allocation of personnel.」

「Regarding expense reductions, we will implement more far-reaching cost reviews, including reducing indirect operations through the promotion of digital transformation and reducing store management expenses. We will also work on the efficient use of personnel expenses by appropriately reallocating personnel made available through reductions in indirect operations.」

「As for expense-reduction measures, a key initiative under the strengthening of the financial position, the company added new measures to those implemented since the beginning of the fiscal year and sought to increase the savings achieved. As a result, total expenses came in within the plan.」

「The Company has been implementing measures to strengthen sales and improve its profit structure, and these measures are beginning to produce results. In light of the difficult operating environment currently facing the department store industry, we will continue these initiatives while pursuing more far-reaching structural reforms to further improve earnings power.」

「We implemented the planned reduction in outsourcing fees by reviewing the specifications of outsourced operations. As a result of these measures, selling, general and administrative expenses for the second quarter decreased by approximately ¥120 million year on year, and expense reductions are progressing in line with the “Fiscal Year Ending February 2020 Plan.”」

「We implemented the planned reduction in outsourcing fees by reviewing the specifications of outsourced operations. As a result of these measures, selling, general and administrative expenses for the first quarter decreased by approximately ¥70 million year on year, and expense reductions are progressing in line with the “Fiscal Year Ending February 2020 Plan.”」

「We will reduce fixed costs by, among other measures, negotiating reductions in outsourcing-related expenses through visualization of the scope of operations and more efficient changes to operating specifications, based on the work performed in the fiscal year ending February 2019, as well as reducing utilities expenses by taking advantage of electricity deregulation.」

「With respect to strengthening its financial position, the company will pursue fundamental low-cost operations by reviewing its operations, including changing how various activities are managed, in addition to implementing low-cost operations that have already produced certain benefits. It will also seek to make effective use of human resources by reallocating employees from indirect departments to sales departments, among other measures.」

「During the period, in December 2017, we established the Structural Reform Promotion Department. The department will actively pursue changes to the profit structure across all areas, including stores and back-office divisions, to maximize the use of all management resources, from personnel to funds.」