Launch of an inbound tourism business

「In the tourism business, as announced in the 30 June notice titled "Notice Regarding Changes in Consolidated Subsidiaries," 株式会社MEGURU, which oversees the overseas local subsidiaries, has transitioned to an equity-method affiliate of the Company, including its overseas local subsidiaries that are consolidated subsidiaries of the company, following the share consolidation and third-party allotment carried out as scheduled in that document.」

「However, as announced in the 30 June 2021 notice titled "Notice Regarding Changes in Consolidated Subsidiaries," 株式会社MEGURU, which oversees the overseas local subsidiaries, is expected to become an equity-method affiliate of the Company, including its overseas local subsidiaries that are consolidated subsidiaries of the company, following the share consolidation and third-party allotment carried out as scheduled in that document.」

「In the travel-activity and tourism businesses, cross-border travel by tourists was restricted, effectively forcing operations to be suspended. The Company kept daily operations to the minimum necessary and reduced fixed costs by bringing development in-house, while continuing measures such as system improvements, expanded integration with OTAs (online travel agencies) and stronger marketing in preparation for resuming operations.」

「To address new needs arising in this environment, the Company launched the MAPPLE Activity Online Platform, which connects tour operators and users online and enables the delivery of online experiences such as tours and events.」

「During the cumulative first quarter, the tourism business was effectively forced to suspend operations because cross-border travel by tourists was restricted. While reducing fixed costs by keeping daily operations to the minimum necessary, the Company implemented measures such as system improvements, expanding integration with OTAs (online travel agencies) and strengthening marketing in preparation for the resumption of operations.」

「To incorporate parasailing, currently the most popular activity in Guam, into the Company's own operations, it acquired all shares of SUNNY SIDE UP GUAM INC. in November and acquired the company.」

「To further enhance its travel-activity business, in July the Company acquired shares in セルリアンブルー by underwriting a third-party allotment of shares, acquiring an interest in the company, which operates tour-organizing businesses throughout Okinawa, a destination popular with both domestic and overseas travelers. In August, its overseas local subsidiary GUAM OCEAN PARK CORPORATION acquired all of the business of APRA DIVE & MARINE SPORTS, INC., which specializes in local marine activities in Guam, including flyboarding, jet skiing and banana boating.」

「In May, the Company grand-opened Guam Ocean Park, a marine activity facility operated by its local subsidiary Guam Ocean Park Corporation and positioned at the forefront of the Group's travel-activity business strategy.」

「In October, the Company partnered with All Nippon Airways Co., Ltd. to launch a service through which users can earn additional miles when booking overseas restaurants through Guruyaku and the ANA Mileage Mall. In December, Guruyaku and MAPPLE Activity, which provides booking and sales agency services for local optional tours, began collaborating with JCB Co., Ltd. to offer discounts on restaurant reservations and tour fees when users pay with a JCB card.」

「As part of efforts to expand its travel-activity services, the Company added Oceania in August and North America in September to the coverage areas for MAPPLE Activity, which provides booking and sales agency services for local optional tours, and Taylor. As a result, as of September, the two services covered 32 areas and 126 cities and regions worldwide. In addition, in September, as a new initiative in its travel-activity services, the Company established GUAM OCEAN PARK CORPORATION, a local subsidiary that provides marine activity services in Guam as an operator.」

「In the travel-activity business, the Company established local subsidiaries in Hawaii, Guam and Singapore to expand Guruyaku, the restaurant reservation service for overseas travelers acquired at the end of the previous consolidated fiscal year, MAPPLE Activity, a service for booking and selling tours departing from local destinations launched in July, and Taylor, a travel-activity booking service for women launched in November. In March, it expanded MAPPLE Activity's coverage from its previous focus on resort areas in Hawaii, Guam and Okinawa by adding 24 areas and 50 cities worldwide, bringing the total to 27 areas and 53 cities worldwide.」

「In addition to Guruyaku, a restaurant reservation service for overseas travelers acquired at the end of the previous consolidated fiscal year, the Company established local subsidiary companies in Hawaii, Guam and Singapore to expand its travel-activity business, including MAPPLE Activity, a service for booking and selling tours departing from those locations. In addition, it launched Taylor, a travel-activity booking service for women, in November.」

「In addition to Guruyaku, a restaurant reservation service for overseas travelers acquired at the end of the previous consolidated fiscal year, the Company established local subsidiary companies in Hawaii, Guam and Singapore to expand MAPPLE Activity, a service for booking and selling tours departing from those locations.」

「In addition to Guruyaku, a restaurant reservation service for overseas travelers acquired at the end of the previous consolidated fiscal year, the Company established local subsidiary companies in Hawaii and Guam to expand MAPPLE Activity, a service for booking and selling tours departing from those locations.」

「During the consolidated fiscal year, the Group actively pursued measures to expand its inbound tourism business, a new business for the Company serving visitors to Japan. These measures included improving and upgrading the DiGJAPAN! app for visitors to Japan, expanding its coverage area, offering premium coupons and partnering with local governments. The Group also strengthened the DiGJAPAN! website and began distributing information through Weibo and WeChat. In May, it partnered with a Taiwanese company to launch DiGTAIWAN!, which uses the DiGJAPAN! system. It also began selling Mapple API Multilingual Map (vector delivery), a map distribution service for businesses useful in their Japan-related inbound operations. In March, it acquired the Guruyaku business, a restaurant reservation service for overseas travelers, through a business transfer.」

「In terms of profit and loss, although ¥347 million of the provision for returns was reversed, performance deteriorated substantially compared with the cumulative third quarter of the previous fiscal year due to a sharp increase in returns of trade books, a decline in high-margin electronic sales, higher expenses under retirement benefit accounting and front-loaded expenses in the new inbound tourism business, among other factors. The Company recorded an operating loss of ¥1,249 million, compared with an operating loss of ¥464 million in the same period of the previous year.」

「Due in part to higher expenses under retirement benefit accounting and front-loaded expenses in the new inbound tourism business, performance deteriorated substantially compared with the cumulative second quarter of the previous fiscal year, and the Company recorded an operating loss of ¥1.0 billion, compared with an operating loss of ¥449 million in the same period of the previous year.」

「Due in part to front-loaded expenses in the new inbound tourism business, performance deteriorated compared with the cumulative first quarter of the previous fiscal year, and the Company recorded an operating loss of ¥521 million.」