Structural reform of the Step business’s store network and compensation system

「The division is pursuing structural reforms, including the reorganization of its store network and reforms to its personnel and compensation systems, including the elimination of commission-based pay. The full-year forecast was revised downward due to temporary cost burdens associated with personnel changes and the reorganization of the store network, as well as intensified structural-reform initiatives. The company will continue to advance these reforms to strengthen its medium- to long-term earnings capacity and compliance.」