Expansion of Operating Loss and Quarterly Net Loss During Closure of the Hotel’s Main Building

「Sales for the fiscal year increased from the previous fiscal year in all divisions, including banquets, restaurants and retail stores, to ¥16,259 million, an increase of ¥986 million. The company implemented cost controls through planned procurement of raw materials at appropriate prices and strict expense management, and worked to absorb various costs associated with investment in human capital. As a result, operating profit was ¥1,437 million, an increase of ¥162 million from the previous fiscal year, ordinary profit was ¥1,480 million, an increase of ¥233 million, and net profit for the fiscal year was ¥989 million, an increase of ¥100 million.」

「As a result, sales for the interim accounting period exceeded the previous year in all divisions, increasing by ¥307 million to ¥7,404 million. In terms of expenses, the company implemented cost controls through planned procurement of raw materials at appropriate prices and strict expense management, and worked to absorb various costs associated with investment in human capital. However, retirement benefit expenses increased because actuarial differences in the retirement benefit plan, which arose in the previous fiscal year mainly due to falling bond prices, were expensed in the current fiscal year. Operating profit was therefore ¥361 million (¥360 million in the previous year), ordinary profit was ¥383 million (¥336 million in the previous year), and interim net profit was ¥236 million (¥233 million in the previous year).」

「As a result, sales for the first half increased year on year in all divisions, including banquets, restaurants and retail stores, to ¥7,097 million, up 2.8% year on year. Cost controls through planned procurement of materials at appropriate prices and strict expense management minimized the increase in various expenses, resulting in operating profit of ¥360 million, up 32.3% year on year, and ordinary profit of ¥336 million, up 41.3%. Interim net profit was ¥233 million, up 10.6% year on year.」

「As a result, operating profit was ¥1,047 million, an increase of ¥818 million from the previous fiscal year, and ordinary profit was ¥986 million, an increase of ¥710 million. Net profit for the fiscal year increased significantly from the previous fiscal year, partly due to a reassessment of deferred tax assets, to ¥1,535 million, an increase of ¥1,285 million.」

「As a result, operating profit increased by ¥727 million to ¥826 million, ordinary profit increased by ¥627 million to ¥781 million, and quarterly net profit increased by ¥553 million to ¥680 million.」

「As a result, operating profit improved significantly from the previous fiscal year to ¥272 million (an operating loss of ¥226 million in the same quarter of the previous year), ordinary profit was ¥238 million (an ordinary loss of ¥177 million in the same quarter of the previous year), and quarterly net profit was ¥210 million (a quarterly net loss of ¥157 million in the same quarter of the previous year).」

「Although factors including investment in human capital and soaring resource prices increased operating expenses, higher sales offset these factors, resulting in operating profit of ¥331 million, an improvement of ¥333 million year on year (an operating loss of ¥2 million in the same quarter of the previous year).」

「As a result, in the fiscal year marking the company's 100th anniversary, the company recorded its first full-year operating profit in 3 fiscal years since the first year of operation of the third-generation main building, with operating profit of ¥228 million (an operating loss of ¥1,743 million in the previous fiscal year).」

「As a result, operating profit was ¥98 million (an operating loss of ¥1,215 million in the same quarter of the previous year). While subsidies and support payments for employee employment, infection-control measures and reduced operating hours were recorded as non-operating income, losses associated with the repayment of part of the subsidies due to errors in the authorities' payment processing were recorded as non-operating expenses, resulting in ordinary profit of ¥154 million (an ordinary loss of ¥215 million in the same quarter of the previous year). Quarterly net profit was ¥126 million (a quarterly net loss of ¥245 million in the same quarter of the previous year).」

「However, sales remained insufficient to absorb fixed costs due to the arrival of a wave of COVID-19 infections in the second quarter and seasonal factors such as fewer visitors during the summer, resulting in an operating loss of ¥226 million (an operating loss of ¥1,073 million in the same quarter of the previous year).」

「As a result, the operating loss narrowed significantly to ¥2 million (an operating loss of ¥448 million in the same quarter of the previous year). Subsidies and support payments for employee employment, infection-control measures and reduced operating hours were recorded as non-operating income, resulting in ordinary profit of ¥96 million (an ordinary loss of ¥151 million in the same quarter of the previous year). Quarterly net profit was ¥77 million (a quarterly net loss of ¥120 million in the same quarter of the previous year).」

「Although the operating loss narrowed by ¥1,630 million from the previous fiscal year, sales in the current fiscal year still remained insufficient to absorb fixed costs, and the operating loss was ¥1,743 million.」

「However, sales remained insufficient to absorb fixed costs, resulting in an operating loss of ¥1,215 million (an operating loss of ¥2,627 million in the same quarter of the previous year). Subsidies and support payments for employee employment, infection-control measures and reduced operating hours were recorded as non-operating income, resulting in an ordinary loss of ¥215 million (an ordinary loss of ¥2,167 million in the same quarter of the previous year). Quarterly net loss was ¥245 million (a quarterly net loss of ¥2,486 million in the same quarter of the previous year).」

「However, sales remained insufficient to absorb fixed costs, resulting in an operating loss of ¥1,073 million (an operating loss of ¥2,070 million in the same quarter of the previous year). Subsidies and support payments for employee employment, infection-control measures and reduced operating hours were recorded as non-operating income, resulting in an ordinary loss of ¥633 million (an ordinary loss of ¥1,712 million in the same quarter of the previous year). Quarterly net loss was ¥685 million (a quarterly net loss of ¥2,047 million in the same quarter of the previous year).」

「However, sales remained insufficient to absorb fixed costs, resulting in an operating loss of ¥448 million (an operating loss of ¥1,155 million in the same quarter of the previous year), an ordinary loss of ¥151 million (an ordinary loss of ¥932 million in the same quarter of the previous year), and a quarterly net loss of ¥120 million (a quarterly net loss of ¥1,265 million in the same quarter of the previous year).」

「Regarding expenses, the company used the employment adjustment subsidy program and maintained its personnel cost burden as a basic policy of protecting employee employment, while reducing various expenses, including outsourced facility management costs and discretionary expenses such as advertising and promotion. However, the decline in sales was substantial, resulting in an operating loss of ¥3,374 million (operating profit of ¥148 million in the previous fiscal year), an ordinary loss of ¥2,869 million (ordinary profit of ¥69 million in the previous fiscal year), and a net loss for the fiscal year of ¥3,219 million (net profit for the fiscal year of ¥108 million in the previous fiscal year).」

「Regarding expenses, the company used the employment adjustment subsidy program and maintained its personnel cost burden as a basic policy of protecting employee employment, while reducing various expenses, including outsourced facility management costs and discretionary expenses such as advertising and promotion. However, the decline in sales was substantial, resulting in an operating loss of ¥2,627 million (operating profit of ¥438 million in the same quarter of the previous year), an ordinary loss of ¥2,167 million (ordinary profit of ¥389 million in the same quarter of the previous year), and a quarterly net loss of ¥2,486 million (quarterly net profit of ¥311 million in the same quarter of the previous year).」

「However, the decline in sales was substantial, resulting in an operating loss of ¥2,070 million (operating profit of ¥120 million in the same quarter of the previous year), an ordinary loss of ¥1,712 million (ordinary profit of ¥96 million in the same quarter of the previous year), and a quarterly net loss of ¥2,047 million (quarterly net profit of ¥119 million in the same quarter of the previous year).」

「Sales decreased 85.0% year on year to ¥478 million. The operating loss was ¥1,155 million (operating profit of ¥261 million in the same quarter of the previous year), the ordinary loss was ¥932 million (ordinary profit of ¥259 million in the same quarter of the previous year), and the quarterly net loss was ¥1,265 million (quarterly net profit of ¥208 million in the same quarter of the previous year).」

「As a result, despite lower demand due to the COVID-19 pandemic, operating profit was ¥148 million in the first year of operation of the new main building (a loss of ¥2,826 million in the previous fiscal year), and ordinary profit was ¥69 million (a loss of ¥2,835 million in the previous fiscal year), representing significant improvements from the previous fiscal year.」

「As a result, operating profit was ¥438 million (a loss of ¥2,558 million in the same quarter of the previous year), and ordinary profit was ¥389 million (a loss of ¥2,552 million in the same quarter of the previous year), representing significant improvements from the previous period. Quarterly net profit was ¥311 million (a decrease of ¥2,517 million from the same period of the previous year).」

「As a result, operating profit was ¥120 million (a loss of ¥1,305 million in the same quarter of the previous year), and ordinary profit was ¥96 million (a loss of ¥1,296 million in the same quarter of the previous year), representing significant improvements from the previous period. Quarterly net profit was ¥119 million (a decrease of ¥3,629 million from the same period of the previous year).」

「As a result, operating profit was ¥261 million (an operating loss of ¥527 million in the same quarter of the previous year). Although financial expenses related to funding the reconstruction of the main building increased, ordinary profit was ¥259 million (an ordinary loss of ¥520 million in the same quarter of the previous year), due to the increase in operating profit. Quarterly net profit was ¥208 million (a quarterly net loss of ¥536 million in the same quarter of the previous year).」

「The operating loss was ¥2,826 million (an operating loss of ¥1,505 million in the previous fiscal year), and the ordinary loss was ¥2,835 million (an ordinary loss of ¥1,493 million in the previous fiscal year).」

「As a result, the operating loss was ¥2,558 million, an increase in loss of ¥1,447 million from the same quarter of the previous year, and the ordinary loss was ¥2,552 million, an increase in loss of ¥1,453 million from the same quarter of the previous year.」

「As a result, the operating loss was ¥1,305 million, an increase in loss of ¥504 million from the same quarter of the previous year, and the ordinary loss was ¥1,296 million, an increase in loss of ¥505 million from the same quarter of the previous year.」

「As a result, the operating loss increased by ¥243 million from the same quarter of the previous year to ¥527 million, due to lower sales and costs incurred to implement the measures described above. The ordinary loss increased by ¥254 million from the same quarter of the previous year to ¥520 million, mainly because financial expenses increased as part of the funds for reconstruction of the main building was raised through borrowings. The quarterly net loss increased by ¥253 million from the same quarter of the previous year to ¥536 million.」

「The operating loss was ¥1,505 million (an operating loss of ¥1,089 million in the previous fiscal year), and the ordinary loss was ¥1,493 million (an ordinary loss of ¥1,045 million in the previous fiscal year).」

「As a result, the operating loss was ¥1,111 million (an operating loss of ¥878 million in the same quarter of the previous year). The ordinary loss was ¥1,098 million (an ordinary loss of ¥841 million in the same quarter of the previous year), and the quarterly net loss was ¥1,140 million (a quarterly net loss of ¥861 million in the same quarter of the previous year).」

「As a result, the operating loss was ¥801 million, the ordinary loss was ¥790 million, and the quarterly net loss was ¥822 million.」

「These measures were effective in reducing the operating loss from the same quarter of the previous year to ¥283 million (an operating loss of ¥308 million in the same quarter of the previous year). The ordinary loss was ¥266 million (an ordinary loss of ¥295 million in the same quarter of the previous year), and the quarterly net loss was ¥282 million (a quarterly net loss of ¥303 million in the same quarter of the previous year).」

「Although the Company pursued detailed cost reductions through lower personnel costs from seconding employees to other companies in the same industry, strict cost controls and cuts to general expenses including rebuilding costs, higher retirement benefit expenses and the decline in revenue caused by the closure of the main building had a significant impact, resulting in an operating loss of ¥1,089 million and an ordinary loss of ¥1,045 million.」

「As a result, the operating loss was ¥878 million (an operating loss of ¥741 million in the same quarter of the previous year), the ordinary loss was ¥841 million (an ordinary loss of ¥710 million in the same quarter of the previous year), and the quarterly net loss was ¥861 million (a quarterly net loss of ¥768 million in the same quarter of the previous year).」

「Despite our continued efforts to improve both operations and administration, the burden associated with the closure of the main building was substantial, resulting in an operating loss of ¥693 million (¥629 million in the same quarter of the previous year), an ordinary loss of ¥677 million (¥611 million in the same quarter of the previous year), and a quarterly net loss of ¥690 million (¥662 million in the same quarter of the previous year).」

「As a result, revenue for the cumulative first quarter was ¥1,543 million, up 0.4% year on year. Although the Company continued to reduce costs through thorough cost control and expense reductions, it recorded an operating loss of ¥308 million, compared with an operating loss of ¥238 million in the same quarter of the previous year.」