Decline in Sales and Operating Revenue Due to the Closure of the Main Building

「Sales for the cumulative first-quarter period exceeded the previous year's level in each division, including banquets, restaurants, retail and other operations, reaching ¥3,722 million, up 18.6% year on year.」

「Sales for the fiscal year increased in all divisions, including banquets, restaurants, retail and other operations, reaching ¥12,885 million, up ¥4,486 million from the previous year.」

「Sales for the cumulative nine-month period increased substantially to ¥9,570 million, up ¥3,251 million from the same period of the previous year, as banquet sales recovered to above pre-pandemic levels, general banquet sales recovered to well above the previous year's level, and restaurant traffic also increased as the impact of waves of infectious disease on socioeconomic activity diminished.」

「Sales for the cumulative first-quarter period increased 59.3% year on year to ¥3,138 million, compared with the same quarter of the previous year, when operations were conducted amid the issuance of a state of emergency and other measures.」

「Sales for the fiscal year included sales from the new Main Building, which reopened in the fourth quarter, in addition to sales from existing locations, and increased 32.2% from the preceding fiscal year to ¥7,062 million.」

「As a result, sales for the cumulative nine-month period increased substantially following the Main Building's reopening, reaching ¥9,256 million, up 121.4% year on year.」

「As a result, sales for the cumulative second-quarter period increased substantially following the Main Building's reopening, reaching ¥5,871 million, up 129.0% year on year.」

「Sales for the cumulative first-quarter period increased 126.5% year on year to ¥3,183 million, driven primarily by the impact of the new Main Building's reopening.」

「Sales for the fiscal year included sales from the new Main Building, which reopened in the fourth quarter, in addition to sales from existing locations, and increased 32.2% from the preceding fiscal year to ¥7,062 million.」

「After closing the Tokyo Kaikan Main Building at the end of January 2015 and proceeding with its reconstruction, the Company completed the Tokyo Kaikan Building on 15 October 2018 and held the grand opening of the new Tokyo Kaikan Main Building on 8 January 2019.」

「In addition to the Main Building's closure, sales fell 1.5% year on year to ¥2,564 million because the Hibiya location had closed in the second half of the preceding fiscal year and sales personnel at existing locations had been shifted to advance sales activities for the new Main Building.」

「Sales for the cumulative first-quarter period fell 1.5% year on year to ¥1,405 million, mainly because the Hibiya location had closed in the preceding fiscal year.」

「However, the decline in sales caused by the Bankers Club's closure and the temporary closure of the Nihombashi Mitsukoshi Main Store location for renovations was substantial, and sales fell 9.2% year on year to ¥5,341 million.」

「Under these circumstances, we worked to strengthen the sales and customer-attraction capabilities of the locations that served as revenue sources while the Main Building was closed for rebuilding, including by attracting existing customers of the Main Building and the Bankers Club, which closed in the preceding fiscal year in connection with the rebuilding of the Tokyo Bankers Association Building, to locations such as Hamamatsucho Tokyo Kaikan and Joshikai Kaikan, and by expanding catering services. We also focused on preparations for the new Main Building's opening, including opening a wedding salon in December to secure wedding banquet bookings there. However, the decline in sales caused by the Bankers Club's closure was substantial, and sales for the cumulative nine-month period fell 7.7% year on year to ¥4,113 million.」

「Under these circumstances, we worked to strengthen the sales and customer-attraction capabilities of the locations that served as revenue sources while the Main Building was closed, including by attracting existing customers of the Main Building and the Bankers Club, which closed last October in connection with the rebuilding of the Tokyo Bankers Association Building, to locations such as Hamamatsucho Tokyo Kaikan and Joshikai Kaikan, and by expanding catering services. Excluding the impact of the decline in sales caused by the Bankers Club's closure, sales increased 1.0% from the same quarter of the previous year, but overall sales fell ¥243 million, or 8.5%, year on year to ¥2,604 million.」

「While our Main Building remained closed for rebuilding, we made every effort to attract customers from the Main Building and the Bankers Club, which closed last October in connection with the rebuilding of the Tokyo Bankers Association Building, to our existing locations, while expanding catering and working to strengthen the sales and customer-attraction capabilities of those locations. As a result, sales at existing locations increased 1.8% year on year, but the decline in sales caused by the Bankers Club's closure last October was substantial, and sales for the cumulative first-quarter period fell 7.6% year on year to ¥1,426 million.」

「Until the Main Building is scheduled to reopen in January 2019, our sources of operating revenue will be limited to our other locations, and the situation in which a substantial decline in sales is unavoidable will continue.」

「Because the Marunouchi Main Building has been closed for rebuilding since February 2015, we actively marketed our other locations to the corporate and individual customers of the Main Building, expanded our catering services and devoted every effort to increasing customer traffic and sales at each location to offset the resulting decline in net sales.」

「To offset the decline in sales accompanying the Main Building's closure, we actively marketed our other locations to the corporate and individual customers of the Main Building, expanded our catering services and devoted every effort to increasing customer traffic and sales at each location.」

「Because the Tokyo Kaikan Main Building has been closed for rebuilding since February 2015, a substantial decline in net sales is unavoidable.」

「The substantial decline in sales due to the Main Building's closure brought sales down 38.3% year on year to ¥5,995 million (prior-period Main Building sales: ¥4,314 million; 44.4% of company-wide sales).」