Risk of declining demand for driving instruction due to a declining young population

「The number of new enrollees for training in standard vehicles, semi-medium vehicles, large and standard motorcycles, and other categories remained strong and exceeded the previous year’s results.」

「Although total enrolment across all vehicle types for the full fiscal year was below the previous year, operating revenue exceeded the previous year due to the effect of higher standard passenger-vehicle training fees, an increase in the amount of training completed after enrolment, and steady revenue from commissions for courses for older drivers and other programmes. Meanwhile, segment profit was below the previous year due to higher depreciation expenses resulting from the replacement of training vehicles and major renovation work at driving school facilities.」

「In the driver-training business, the total number of new enrollees across all vehicle categories for the full fiscal year was below the previous year’s level.」

「The number of new enrollees remained at the same level as last year. In addition, completion of training courses after enrollment progressed smoothly, including for existing enrollees who enrolled in the previous fiscal year, while the number of contracted elderly-driver training participants, which has been trending upward, also exceeded the year-earlier period.」

「In the driver training business, enrollment in the core ordinary, heavy and medium-sized vehicle training programs remained strong, with each exceeding the previous year's results.」

「In the automotive driving school division, active sales activities lifted the number of new enrollees for standard passenger-vehicle and heavy-vehicle programmes, which form the core of revenue, above the previous year. The number of participants accepted for courses for older drivers, which we have been focusing on, also exceeded the previous year. As a result, total segment revenue was ¥130 million, up 5.3% year on year, and segment profit was ¥5 million, compared with a segment loss of ¥0 million in the previous year.」

「As a result, total segment revenue was ¥291 million, down 21.9% from the previous fiscal year, and segment profit was ¥35 million, down 51.8%.」

「In the driver training business, new training for applicants seeking heavy and medium-sized vehicle licenses and elderly-driver training remained firm. Meanwhile, although sales activities focused mainly on high school and university students approaching the graduation season, the number of new trainees acquired during the period was slightly below the previous year. As a result, total segment revenue was ¥200 million, down 11.1% year on year, and segment profit was ¥8 million, down 74.4%.」

「Although elderly-driver training benefited from social demand and the company was securing a stable number of trainees, the rebound from the increase in ordinary passenger vehicle license holders during the period of voluntary restrictions on activities due to COVID-19 through the previous fiscal year continued across the prefecture in ordinary passenger vehicle training. As a result, total segment revenue was ¥124 million, down 20.7% year on year, and segment loss was ¥0 million, compared with segment profit of ¥26 million in the year-earlier period.」

「Elderly-driver training was progressing as planned, while the rebound from the increase in ordinary and heavy vehicle license holders during the period of the COVID-19 pandemic had become apparent. In addition, a seasonal factor arose because, from the previous consolidated fiscal year, the fiscal year-end of consolidated subsidiary 株式会社寄居武蔵野自動車教習所 was changed from 31 January to 31 March. As a result, total segment revenue was ¥59 million, down 34.4% year on year, and segment loss was ¥4 million, compared with segment profit of ¥21 million in the year-earlier period.」

「During the consolidated fiscal year, demand for standard passenger-vehicle licences declined due to the declining birth rate, while demand for heavy vehicles and motorcycles increased substantially, resulting in higher operating revenue.」

「In the previous fiscal year, demand increased across all vehicle types, partly as a rebound from the decline in trainees caused by the spread of COVID-19. This fiscal year, results fell below the year-earlier level as conditions returned to normal. As a result, total segment revenue was ¥225 million, down 8.9% year on year, and segment profit was ¥33 million, down 32.0%.」

「In the previous fiscal year, demand for driver's licenses increased as students who had deferred obtaining ordinary passenger vehicle licenses due to the spread of COVID-19 sought to obtain them, while more working adults sought licenses for vehicle types such as heavy vehicles that could be used for work or career changes. This fiscal year, as these demand drivers ran their course, conditions for all vehicle types returned to normal. As a result, total segment revenue was ¥156 million, down 8.7% year on year, and segment profit was ¥26 million, down 32.6%.」

「Revenue increased significantly last year due to demand for driver's licenses, mainly among students who had deferred obtaining ordinary passenger vehicle licenses as the spread of COVID-19 continued. This fiscal year, as demand returned to normal, total segment revenue was ¥90 million, down 11.4% year on year. As a result, segment profit was ¥21 million, down 36.9%.」

「During the consolidated fiscal year, demand for standard passenger-vehicle licences declined due to the declining birth rate, while demand for heavy vehicles and motorcycles increased substantially, resulting in higher operating revenue.」

「Although the spread of COVID-19 created a challenging operating environment, operating performance remained generally firm, partly because demand increased for heavy vehicle and motorcycle licenses. As a result, total segment revenue was ¥247 million, up 11.8% year on year, while segment profit was ¥50 million, down 14.6%.」

「Although the spread of COVID-19 created a challenging operating environment, operating performance remained firm, partly because demand increased for licenses for heavy and medium-sized vehicles and other vehicles excluding ordinary passenger vehicles. As a result, total segment revenue was ¥171 million, up 21.2% year on year, while segment profit was ¥38 million, down 4.5%.」

「Although demand for driving licences among high school students approaching graduation season had eased, demand for licences other than the standard passenger-vehicle licence, including heavy-vehicle and special-vehicle licences, increased, and operating performance remained firm. As a result, total segment revenue was ¥102 million, up 20.7% year on year, and segment profit was ¥33 million, up 15.7%.」

「As a result, total segment revenue was ¥324 million, up 3.2% from the previous fiscal year, while segment profit rose 73.8% to ¥97 million, due in part to lower selling, general and administrative expenses.」

「Although there were concerns about a prolonged challenging operating environment, including temporary closures for a certain period due to the spread of COVID-19, demand for ordinary passenger vehicle driver's licenses among university students and others remained, and demand for licenses for heavy vehicles, special vehicles and other vehicles excluding ordinary passenger vehicles showed no significant decline. Operating performance therefore remained generally firm. As a result, total segment revenue was ¥221 million, down 0.9% year on year, while segment profit rose 91.0% to ¥58 million, due in part to lower selling, general and administrative expenses.」

「Although the spread of COVID-19 created a challenging operating environment, there was demand for driver's licenses among university and vocational school students, and sales of training programs for heavy vehicles, special vehicles and other vehicles excluding ordinary passenger vehicles remained firm. As a result, total segment revenue was ¥141 million, down 8.1% year on year, while segment profit rose 60.7% to ¥40 million, due in part to lower selling, general and administrative expenses.」

「Demand for driver's licenses, mainly among high school students approaching graduation, had eased. Although the company also actively promoted training programs for motorcycles, heavy vehicles and special vehicles other than ordinary passenger vehicles, revenue declined because the company temporarily closed for a certain period in response to government policy and requests from local authorities accompanying the spread of COVID-19. As a result, total segment revenue was ¥84 million, down 9.8% year on year.」

「In addition to a decline in trainees due to the impact of COVID-19, we recognize that the challenging operating environment, including the declining birthrate, declining interest among young people in obtaining driver's licenses, and competition from nearby driving schools, could affect future performance.」

「In the driver training business, we recognize and analyze the challenging operating environment, including the declining birthrate, declining interest among young people in obtaining driver's licenses, and competition from nearby driving schools, as affecting operating performance.」

「Although demand for driver's licenses, particularly among students, had eased and the number of new enrollees was declining, the company worked to maintain operating performance by offering a range of training plans by vehicle type. As a result, total segment revenue was ¥154 million, down 8.2% year on year, while segment profit rose 77.4% to ¥25 million, due in part to lower selling, general and administrative expenses.」

「Demand for driver's licenses, mainly among high school students approaching graduation, had eased. Although the company conducted broad sales activities, focusing also on promoting training programs for motorcycles, heavy vehicles and special vehicles other than ordinary passenger vehicles, the number of new enrollees was roughly unchanged from the year-earlier period. In addition, some trainees were unable to complete their training programs, with graduation pushed into the following quarter and revenue not recognized. As a result, total segment revenue was ¥93 million, down 13.4% year on year, and segment profit was ¥24 million, down 18.5%.」

「The company conducted sales activities, including various discount campaigns to promote driver's license acquisition, mainly among high school and university students approaching the graduation season, but demand has yet to gain momentum. Meanwhile, selling, general and administrative expenses also declined. As a result, total segment revenue was ¥221 million, down 3.7% year on year, and segment profit was ¥15 million, up 274.1%.」

「Although demand for driver's licenses, particularly among students, had eased and it was a difficult period for attracting new trainees, the company worked to maintain operating performance by offering a range of training plans by vehicle type. As a result, total segment revenue was ¥167 million, up 3.3% year on year, and segment profit was ¥14 million, down 3.7%.」

「In the driver training business, we recognize and analyze the challenging operating environment, including the declining birthrate and declining interest among young people in obtaining driver's licenses, as affecting the acquisition of trainees and operating performance.」

「Amid the impact of a decline in the young population, including high school students, and declining interest among young people in obtaining driver's licenses, total segment revenue was ¥320 million, down 4.6% from the previous fiscal year, and segment profit was ¥16 million, down 59.7%.」

「As a result, total segment revenue was ¥229 million, down 4.9% year on year, and segment profit was ¥4 million, down 83.0%.」

「Although demand for driver's licenses, particularly among students, had eased and it was a difficult period for attracting new trainees, the company worked to maintain operating performance by replacing training vehicles and implementing various discount campaigns. As a result, total segment revenue was ¥162 million, down 2.6% year on year, and segment profit was ¥14 million, down 24.8%.」

「Although demand for driver's licenses, mainly among high school students, had eased, operating performance was slightly above the year-earlier level. As a result, total segment revenue was ¥107 million, up 1.5% year on year, and segment profit was ¥31 million, up 2.2%.」

「Total segment revenue was ¥336 million, down 7.0% from the previous fiscal year, and segment profit was ¥40 million, down 35.7%.」

「The company actively conducted various training-fee discount campaigns in preparation for the graduation season for high school and university students and strengthened PR activities to attract new trainees. However, enrollment was delayed, resulting in segment revenue of ¥241 million, down 8.1% year on year, and segment profit of ¥23 million, down 41.7% year on year.」

「Although demand for driver's licenses, particularly among students, had eased and it was a difficult period for attracting new trainees, the company worked to maintain operating performance through locally focused sales activities, including various discount campaigns and detailed transportation services. As a result, total segment revenue was ¥166 million, down 9.5% year on year, and segment profit was ¥19 million, down 41.2%.」

「Mainly because high school students are receiving job offers earlier, the period when they are allowed to obtain a driver's license before the graduation season also moved forward. As a result, demand among high school students for driver's licenses had eased during the cumulative first quarter, and operating performance fell below the year-earlier level.」

「Most new applicants for driver’s licenses are people in their late teens and 20s, but the population of younger people is statistically expected to decline in the future. Because a decline in the young population directly leads to a decline in the number of people obtaining driver’s licenses, industry-wide revenue is trending downward.」