Political and economic environment, foreign exchange and poor performance of overseas subsidiaries

「Higher revenue and profit in the United States and the Philippines; Indonesia remained profitable despite lower profit」

「The overseas business segment recorded ordinary income of ¥43,602 million, up 0.1% from the end of the previous consolidated fiscal year, and ordinary profit of ¥3,583 million, up 914.4%.」

「As a result, ordinary income in the overseas business segment for the current interim consolidated accounting period was ¥21,406 million, and ordinary profit was ¥1,560 million.」

「As a result, ordinary income in the overseas business segment for the current interim consolidated accounting period was ¥21,229 million, up 18.0% from the previous interim consolidated accounting period, while the ordinary loss was ¥1,097 million, up 13.4%.」

「FCTI, Inc., our consolidated subsidiary, recorded ordinary income of ¥26,679 million, an ordinary loss of ¥1,953 million and a net loss of ¥6,674 million due mainly to higher funding costs resulting from rising U.S. interest rates.」

「FCTI, Inc.'s consolidated results for January through September 2023 were ordinary income of US$143.3 million, up 2.4% year on year, an ordinary loss of US$8.3 million, compared with an ordinary loss of US$1.5 million in the same period of the previous year, and a quarterly net loss of US$6.2 million, compared with a quarterly net loss of US$1.7 million, due mainly to higher funding costs resulting from policy rate increases.」

「FCTI, Inc.'s consolidated results for January through June 2023 were ordinary income of US$94.8 million, up 2.8% year on year, an ordinary loss of US$5.0 million, compared with ordinary profit of US$1.1 million in the same period of the previous year, and an interim net loss of US$4.5 million, compared with interim net income of US$0.9 million, due to higher funding costs resulting from policy rate increases and other factors, despite cost reductions from removing low-profit ATMs.」

「Although FCTI, Inc. reduced costs by removing low-profit ATMs, higher funding costs resulting from policy rate increases and other factors led to ordinary income of US$46.8 million, up 4.2% year on year, an ordinary loss of US$2.9 million, compared with ordinary profit of US$0.8 million in the same period of the previous year, and a quarterly net loss of US$2.4 million, compared with quarterly net income of US$0.5 million, for the consolidated period from January through March 2023.」

「FCTI, Inc.'s consolidated results for January through December 2022 were ordinary income of US$186.3 million, down 9.6% year on year, an ordinary loss of US$3.3 million, compared with ordinary profit of US$16.4 million in the same period of the previous year, and net income for the fiscal year of US$0.0 million, down 99.9%, despite cost reductions from removing low-profit ATMs installed outside U.S. Seven-Eleven stores and other factors, as higher funding costs resulting from policy rate increases increased expenses.」

「Although FCTI, Inc. reduced costs by removing low-profit ATMs installed outside U.S. Seven-Eleven stores, a measure implemented from the previous year, higher funding costs resulting from policy rate increases and other factors led to ordinary income of US$139.9 million, down 12.0% year on year, an ordinary loss of US$1.5 million, compared with ordinary profit of US$19.3 million in the same period of the previous year, and a quarterly net loss of US$1.7 million, compared with quarterly net income of US$18.8 million, for the consolidated period from January through September 2022.」

「Although FCTI, Inc. reduced costs by removing low-profit ATMs installed outside U.S. Seven-Eleven stores, a measure implemented from the previous year, higher funding costs resulting from policy rate increases and other factors led to ordinary income of US$92.1 million, down 13.7% year on year, ordinary profit of US$1.1 million, down 91.4%, and interim net income of US$0.9 million, down 92.9%, for the current cumulative second quarter.」

「Although FCTI, Inc. reduced costs by removing low-profit ATMs installed outside U.S. Seven-Eleven stores, a measure implemented from the previous year, higher funding costs resulting from policy rate increases and other factors led to ordinary income of US$44.9 million, down 14.5% year on year, ordinary profit of US$0.8 million, down 87.1%, and quarterly net income of US$0.5 million, down 90.6%, for the consolidated period from January through March 2022.」

「We have consolidated subsidiaries operating ATMs in the United States, Indonesia and the Philippines. If the political or economic environment surrounding these subsidiaries changes significantly, an unforeseen event such as a natural disaster occurs, or these subsidiaries perform poorly, our earnings may be affected.」

「FCTI, Inc., our consolidated subsidiary in the United States, saw a decline in ATM transactions from March 2020 due to the U.S. government's declaration of a national emergency in response to the spread of COVID-19 and lockdowns in major U.S. cities. Since May 2020, however, ATM transactions have recovered to levels above the same period of the previous year as economic activity has resumed.」

「Against this backdrop, consolidated ordinary income for the current cumulative third quarter was ¥111,435 million, up 17.6% from the cumulative third quarter of the previous fiscal year, and ordinary profit was ¥32,142 million, up 7.0%. In addition, the company recorded an impairment loss of ¥14,719 million as an extraordinary loss arising in the course of promoting its overseas business, resulting in quarterly net income attributable to owners of the parent of ¥7,501 million, down 63.4%.」

「As the financial results of FCTI, Inc. and ATMi have remained below the plans initially formulated, the company reviewed its future plans and recorded an impairment loss of ¥14,596 million on fixed assets and other assets related to both companies as an extraordinary loss during the current cumulative second quarter.」

「We have subsidiaries operating ATMs in the United States, Canada and Indonesia. If the political or economic environment surrounding these subsidiaries changes significantly, an unforeseen event such as a natural disaster occurs, or these subsidiaries perform poorly, our business performance may be affected. In addition, fluctuations in foreign exchange rates may reduce our profit.」

「If the political or economic environment surrounding these subsidiaries changes significantly, an unforeseen event such as a natural disaster occurs, or these subsidiaries perform poorly, our business performance may be affected. In addition, fluctuations in foreign exchange rates may reduce our profit.」