Change to net-basis recognition resulting from the adoption of the revenue recognition standard

「As a result of determining the company's role in providing goods or services to customers, for transactions in which another party bears primary responsibility, among others, the company changed its method of recognizing revenue to recognize it on a net basis as an agent. Consequently, revenue and cost of sales for the second-quarter cumulative consolidated period each decreased by ¥421 million, but there was no impact on operating profit, ordinary profit or quarterly net income before income taxes and other adjustments.」

「The company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020) and related standards from the beginning of the first quarter of the current consolidated fiscal year. Revenue is recognized at the amount expected to be received in exchange for the promised goods or services when control of those goods or services is transferred to the customer. As a result of determining the company's role in providing goods or services to customers, for transactions in which another party bears primary responsibility, among others, the company changed its method of recognizing revenue to recognize it on a net basis as an agent. Consequently, revenue and cost of sales for the first-quarter cumulative consolidated period each decreased by ¥199 million, but there was no impact on operating profit, ordinary profit or quarterly net income before income taxes and other adjustments.」