Deterioration in profitability due to fixed-cost burdens

「During the interim consolidated accounting period, there were no new major risks or significant changes to the business risks described in the annual securities report that management recognized as potentially having a material effect on the financial position, operating results, or cash flows of the consolidated companies, among the matters concerning business conditions and financial matters described in this Semiannual Report.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「人件費や賃借料、減価償却費などの固定費の負担は大きく、雇用調整助成金や新型コロナウイルス感染症拡大防止協力金などの各種経済対策も最大限利用しましたが、依然として営業損失を補うには至らず経常損失、親会社株主に帰属する当期純損失を計上いたしました。」

「As a result, revenue for the six months ended Q2 was ¥12,290 million, up 43.7% year on year, but this was insufficient to cover fixed costs and other operating expenses. Operating loss was ¥5,462 million, ordinary loss, after taking into account employment adjustment subsidies and other items, was ¥3,820 million, and quarterly net loss attributable to owners of the parent was ¥3,810 million.」

「As a result, revenue for the three months ended Q1 was ¥5,788 million, up 74.9% year on year, but this was insufficient to cover fixed costs and other operating expenses. Operating loss was ¥2,996 million, ordinary loss, after taking into account employment adjustment subsidies and other items, was ¥2,162 million, and quarterly net loss attributable to owners of the parent was ¥2,175 million.」

「Although we worked to reduce miscellaneous expenses through greater operational efficiency and made maximum use of various economic measures, including employment adjustment subsidies, the burden of fixed costs such as personnel expenses, rent and depreciation remained substantial, and the measures did not offset the operating loss, resulting in an ordinary loss.」

「However, due to the sharp decline in the number of visitors to Japan and domestic customers, as well as the reduction in business activities at all operating locations, revenue for the first-quarter cumulative consolidated period was ¥3,309 million, down 77.0% year on year. In addition, because of the substantial burden of fixed costs, the operating loss was ¥3,539 million, the ordinary loss was ¥3,496 million, and the quarterly net loss attributable to owners of the parent was ¥3,014 million.」