Declining Profitability and Impairment of Store and Company-Wide Assets

「Revenue declined year on year because customer losses following stylist departures and the closure of unprofitable stores.」

「During the consolidated fiscal year, an impairment loss was recorded in connection with the decision to close some stores in this business.」

「Impairment loss　163　449」

「Impairment loss　236　163」

「In the wedding and banquet-related businesses, the number and scale of weddings held, as well as demand for banquets and events, have gradually recovered as COVID-19 was reclassified from Category 2, equivalent to an infectious disease such as a novel influenza, to Category 5 infectious disease. However, the outlook for a return to pre-pandemic levels remains uncertain, and losses from operating activities have remained negative. As a result, indicators of impairment have arisen for property, plant and equipment with a carrying amount of ¥1,034.799 million in this business.」

「Impairment loss 236」

「 Impairment loss —」

「The amount was recorded as an impairment loss (¥15.701 million) under extraordinary losses.」

「Impairment loss　1,028」

「Impairment loss　245」

「During the consolidated fiscal year, the carrying amount of the above asset group was reduced to its recoverable amount due to declining store profitability and the decision to relocate, and the resulting reduction of ¥223.483 million was recorded as an impairment loss under extraordinary losses.」

「Impairment loss　4,480」

「Impairment loss ¥3.682 million」

「Impairment loss ¥3.322 million」

「During the consolidated fiscal year, the company reduced the carrying amount of the above asset group to its recoverable amount due to declining store profitability and a decision to relocate, and recorded the reduction of ¥41.444 million as an impairment loss under special losses.」

「Impairment loss ¥1.060 million」

「Impairment loss ¥291 thousand」

「At a consolidated subsidiary, the company recorded ¥181 million as a special loss for the impairment of fixed assets, including interior construction costs at certain stores, in light of the deterioration in store profitability caused by the consumption tax increase and the spread of COVID-19 infections.」

「Impairment loss ¥3.171 million」

「Impairment loss ¥3.191 million」

「Special loss: impairment loss ¥1.590 million」

「During the consolidated fiscal year, the company reduced the carrying amount of the above asset group to its recoverable amount due to declining store profitability and a decision to relocate, and recorded the reduction of ¥37.034 million as an impairment loss under special losses. The impairment loss on goodwill described above relates to consolidated subsidiary Angeliebe Co., Ltd., where the maternity and baby-related business, its core business, has grown steadily, while the division developing the market for post-birth celebration gifts underperformed its plan and became a major factor behind the deterioration in results for the consolidated fiscal year.」

「Impairment loss ¥2.502 million」

「Impairment loss ¥1.777 million」

「Impairment loss ¥1.318 million」

「Impairment loss ¥891 thousand」

「Impairment loss ¥248 thousand」

「During the consolidated fiscal year, the company recorded an impairment loss of ¥47.314 million for stores whose profitability had declined or for which a decision had been made to relocate.」

「Impairment loss ¥15.320 million」

「Impairment loss ¥15.216 million」

「Impairment loss ¥15.216 million」

「Because profitability declined at stores held by the Group and in corporate assets, the company recorded a special loss, including an impairment loss of ¥2.722 billion, in accordance with the accounting standard for impairment of fixed assets, bringing the total to ¥3.706 billion.」