Business Structure Reform Including a 3-Headquarters Structure and Workforce Optimization

「In response to the COVID-19 pandemic, the Group has implemented measures including reorganizing its businesses, reforming the business structure of its core commercially published books business, streamlining and improving operational efficiency through DX, and making effective use of assets held by the Group.」

「Because the increase in selling, general and administrative expenses was contained by the effects of relocating and consolidating offices and other factors, operating income increased by ¥286 million year on year to ¥475 million.」

「Operating loss improved by ¥47 million year on year to ¥64 million, mainly because selling, general and administrative expenses declined as a result of relocating and consolidating business offices. Operating loss was ¥112 million in the previous period.」

「The company consolidated most of the offices of 昭文社ホールディングス Co., Ltd. and its Group companies, including 昭文社, マップル, and 昭文社クリエイティブ, at the Harumi office.」

「To address the prolonged impact of COVID-19, the Group has implemented measures including reorganizing its businesses, reforming the business structure of its core commercially published books business, streamlining and improving operational efficiency through DX, and making effective use of assets held by the Group.」

「To address the prolonged impact of COVID-19, the Group has implemented measures including reorganizing the Group’s businesses, reforming the business structure of its core commercially published books business, streamlining and improving operational efficiency through DX, and making effective use of assets held by the Group.」

「The effects of business structure reforms implemented in the previous consolidated fiscal year, including the consolidation and closure of sales and logistics locations, have begun to emerge. The Group has achieved substantial cost reductions while stable management of the business under the new structure has begun to take hold.」

「In the commercially published books business, the company consolidated and closed sales and logistics locations and invited applications for voluntary retirement to optimize its workforce in line with its business strategy. In the tourism business and the call center business, which is primarily engaged in related back-office operations, the company decided to remove these businesses from the Group through measures including a third-party allotment of shares and the transfer of shares held in the businesses.」

「The company determined that optimizing its workforce in line with its business strategy was essential to achieving a swift recovery in performance amid the challenging economic environment, and decided to invite applications for voluntary retirement. Eligible employees: Permanent employees aged 41 or older; Application period: 2022-02-01 to 2022-02-18; Retirement date: 2022-03-31」

「Under the new 3-division structure established in the previous fiscal year, the Group continues to focus on improving the efficiency of database production and reducing returns of commercially published books. In addition, to halt the continuing decline in profitability caused by the prolonged downturn in publishing and the spread of free information driven by the adoption of web services and smartphone apps, the Group is introducing products and services based on a value-added strategy offered together with map and travel information.」

「The company invited approximately 80 employees to apply for voluntary retirement as part of further structural reform, and 96 employees applied, as announced on 2019-03-07. As a result, the company recorded a substantial net loss for the fiscal year, including the extraordinary loss arising from the program. It also reorganized the former 3-business-division structure into 3 new divisions: the Media Business, which provides highly topical information and services tailored to user needs through media such as books, websites, and apps, eliminating conventional distinctions such as print versus digital, online versus offline, and existing versus new businesses; the Solutions Business, which provides data solutions for businesses and local governments regardless of media format or whether services are online or offline, including integrated online and offline businesses; and the Global Business, which responds to travel needs worldwide regardless of whether they arise in Japan or overseas, including not only online referrals but also in-person activity services at destinations.」

「The company determined that improving the efficiency of existing businesses and expanding new businesses were its most important priorities in achieving a swift recovery in performance amid the challenging economic environment. It also concluded that optimizing its workforce in line with its business strategy was essential to further structural reform and improve profitability, and resolved to invite applications for voluntary retirement. Eligible employees: Employees aged 45 or older, excluding certain Group companies; Number of applicants sought: Approximately 80; Application period: 2019-02-01 to 2019-02-28; Retirement date: 2019-03-31」

「Under the new structure following the organizational reforms implemented in the previous fiscal year, the Group continues to focus on improving efficiency and strengthening its structure by concentrating database production functions in a subsidiary, as well as on measures to reduce returns of commercially published books.」

「Under the new structure following the organizational reforms implemented in the previous fiscal year, the Group continues to focus on improving efficiency and strengthening its structure by concentrating database production functions in a subsidiary, as well as on measures to reduce returns of commercially published books.」

「Amid a continuing challenging business environment, the Group identified the urgent improvement of business performance as its most important issue and introduced a new 3-business-division structure during the consolidated fiscal year to clarify profit responsibility for each business. It also concentrated database production operations in a subsidiary to improve production efficiency by bringing database outsourcing in-house. In addition, with the aim of further accelerating business activities by simplifying the decision-making process, the Group adopted a structure separating management from execution.」

「Under these circumstances, amid a continuing challenging business environment, the Group implemented business structure reforms to achieve an urgent improvement in business performance, including changing its organizational structure, improving efficiency and strengthening its structure by concentrating database production functions in a subsidiary, absorbing and merging subsidiary Canvas Mapple Co., Ltd., and introducing a performance-linked personnel system. In addition, in December, the Group changed its corporate governance structure by eliminating directors’ concurrent positions and transferring some executive authority to executive officers, so that management roles would be clearly defined and the directors could focus on those roles.」

「The effects of efficiency improvements from the business structure reforms have begun to emerge, and the decline exceeded the decrease in net sales compared with the previous second-quarter cumulative consolidated period. Selling, general and administrative expenses decreased by ¥332 million from the previous second-quarter cumulative consolidated period, due to lower personnel expenses resulting from workforce reductions and cuts in various expenses.」

「Under these circumstances, amid a continuing challenging business environment, the Group implemented business structure reforms to achieve an urgent improvement in business performance, including changing its organizational structure, improving efficiency and strengthening its structure by concentrating database production functions in a subsidiary, absorbing and merging subsidiary Canvas Mapple Co., Ltd., and introducing a performance-linked personnel system.」

「Amid a continuing challenging business environment, the Group identified the urgent improvement of business performance as its top priority, established a specialized department to consider implementing business structure reform across the Group, and decided to carry out the following reforms from the fiscal year ended March 2018: ① Change in business structure: In addition to disseminating information through various media, the Group divided its increasingly diversified businesses, including the development of various travel-related services, into 3 businesses, introduced a 3-business-division structure to clarify profit responsibility for each business, and optimized its workforce across all departments.」