Market Contraction and Intensifying Competition Driven by Population Decline and Cross-Industry Entry

「During the first half of the current consolidated fiscal period, there were no material changes in the occurrence of matters among those relating to the business and accounting conditions described in this interim report that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「In recent years, the market has remained challenging, with its scale contracting as the number of households declined amid a falling birthrate and an aging population. Although we pursued improvements such as more efficient store operations, we determined that improving profitability over the medium term would be difficult and decided to close the store.」

「Consumer sentiment continued to weaken amid rising prices driven by Russia's invasion of Ukraine and yen depreciation resulting from the Japan-U.S. interest-rate differential, causing net sales and operating income to fall below the year-earlier period.」

「Consumer sentiment showed signs of weakening amid the rapid resurgence of infections caused by the Omicron variant of COVID-19, global inflation resulting from Russia's invasion of Ukraine, and the yen's depreciation due to the interest-rate differential between Japan and the United States,」

「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」

「In the Hakodate area, the birthplace of our company and also our main trading area, we recognize that the environment makes significant market growth difficult to expect due to population decline and other factors,」

「In the Hakodate area, the birthplace of our company and also our main trading area, we recognize that the environment makes significant market growth difficult to expect due to population decline and other factors,」

「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」

「Amid intensifying price competition with imported products in the plywood market, we determined that production and sales at our plywood manufacturing plant, hereinafter referred to as the Kitami Plant, would not be profitable. Accordingly, operations at the Kitami Plant were suspended at the end of March 2019 and the plant was closed at the end of April 2019.」

「In both the home improvement and department store divisions, changes in the business environment, including increasingly intense competition across industry boundaries and the growth of e-commerce, became more pronounced, while consumers' inclination to economize and weather conditions had various effects on business activity, causing net sales to fall below the year-earlier period.」

「Net sales fell below the year-earlier period due in part to a decline in customer traffic caused by unfavorable weather and intensifying competition with other companies in the same industry.」

「In addition to external factors such as the suspension of automobile sales, internal issues, including insufficient ability to respond to intensifying competition, resulted in very poor performance.」

「No new business or other risks arose during the cumulative third quarter under review. In addition, there have been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「The business environment surrounding our group is expected to remain challenging, owing to the contraction of the domestic market accompanying population decline and intensifying competition resulting from new entrants from other industries.」