Responding to service-area tenant lease renewals

「In addition, regarding the period from fiscal 2026 onward, following the expiration of the service-area operations agreement, we will carefully consider and address the matter in line with the guidelines to be issued by the road operator.」

「Regarding the Miyajima Service Area store on the Sanyo Expressway, as the current tenant agreement expires at the end of fiscal 2024, we will work to make the store more attractive in preparation for the tenant bidding process for fiscal 2025 and beyond. Although the challenging operating environment is expected to continue, with raw-material prices rising due to inflation, a chronic labor shortage and higher repair costs for aging equipment, we will pursue operating efficiencies, including a review of store staff shift scheduling, and develop new products using our expertise in service-area operations, with the aim of securing profits.」

「In the Distribution segment, leisure travel became more active as the pandemic subsided and the government implemented its Nationwide Travel Assistance program. Sales at the Miyajima service area remained strong and increased, although they had not reached pre-pandemic levels.」

「In the Distribution segment, sales at the Miyajima service area exceeded the previous year as leisure travel became more active following the easing of restrictions associated with COVID-19 and the effects of the government's Nationwide Travel Assistance program launched in October 2022. However, the Distribution segment as a whole recorded lower revenue due to the impact of closing the Kudamatsu service area in March 2022.」

「In the Distribution segment, sales at the Miyajima service area substantially exceeded the previous year, partly because there were no restrictions on activity during the seventh wave of COVID-19. However, the effects of the pandemic remained persistent, and sales remained in the 70% range of pre-pandemic levels. Revenue also declined due to the impact of closing the Kudamatsu service area in March 2022.」

「In the Distribution segment, sales at the Miyajima service area remained strong, helped by the Golden Week holiday without restrictions on activity for the first time in 3 years. However, revenue was affected by the closure of the Kudamatsu service area in March 2022.」

「In the Distribution segment, the Kudamatsu service-area store's tenant agreement with the road operator expired in March 2022. Because the store faced numerous challenges, including sluggish sales growth due to declining expressway traffic, labor shortages in operations and lower profit margins, the company decided not to renew the contract.」

「The service-area business recorded higher revenue due to the resumption in November of expressway ETC weekend discounts and the substantial increase in people returning to their hometowns at the end of December compared with the previous year. However, the impact of closing the Miyajimaguchi surface parking lot in September of the previous year in connection with the Miyajima-area improvement project was significant, resulting in lower revenue overall.」

「In the Distribution segment, the closure of the Miyajimaguchi surface parking lot in September of the previous year as part of the Miyajimaguchi improvement project reduced revenue. The service-area business also recorded lower revenue because restrictions on passenger traffic associated with the spread of COVID-19 and the exclusion of expressway ETC weekend discounts remained in place.」

「At the Miyajima and Kudamatsu service-area stores, where tenant agreements with the road operator were due to expire at the end of fiscal 2021, the company will work to operate attractive stores while considering whether to continue the business in light of future trends in expressway traffic.」

「At the service areas as well, expressway use by private and commercial vehicles declined substantially due to reduced travel resulting from the spread of COVID-19, resulting in lower revenue because operations were suspended and business hours were shortened.」

「At the service areas as well, expressway use by private and commercial vehicles declined substantially due to reduced travel and a sharp decline in logistics activity resulting from the spread of COVID-19. The business recorded lower revenue after suspending operations and shortening business hours.」

「At Miyajimaguchi Momiji Honjin, the number of visitors to Miyajima increased compared with the first half of the previous fiscal year, when tourism declined due to the 10-day Golden Week holiday and the heavy rains in July 2018. At the service areas as well, the number of expressway users increased due to the effect of the 10-day Golden Week holiday, resulting in higher revenue.」

「At Miyajimaguchi Momiji Honjin, the number of visitors to Miyajima increased during the 10-day Golden Week holiday. In addition, at the service areas, the number of private-vehicle users on the expressways increased during the 10-day holiday, resulting in higher revenue.」

「At the service areas as well, expressway traffic from private vehicles declined substantially, resulting in lower revenue.」

「At the service areas as well, expressway traffic from private vehicles declined substantially for the same reason, resulting in lower revenue.」

「At the service areas as well, expressway traffic from private vehicles declined substantially, including during consecutive holidays, resulting in lower revenue.」

「At the service areas, securing earnings has become more difficult since new tenant agreements with the road operator were initiated and operation of the vending machine business was transferred. The company will nevertheless work to increase sales by executing its business plan reliably.」

「At the service areas, while higher revenue is expected from increased expressway traffic, responding to the renewal of tenant lease agreements has become a major challenge. As the terms of the agreements are also expected to be reviewed, the company will work toward renewing the contracts.」