Impact on Performance from Impairment Accounting

「The company recorded extraordinary losses comprising impairment losses of ¥11.662 million on assets in Ogawara, Shibata District, Miyagi Prefecture, ¥33.128 million on assets in Rifu, Miyagi District, Miyagi Prefecture, and ¥46.039 million on assets in Yamagata, Yamagata Prefecture, for a total of ¥90.830 million.」

「減損損失 ― 90,830」

「The company holds marketable securities to make effective use of surplus funds, while also holding bonds and shares as investment securities. Deterioration in market conditions or in the business or financial condition of investees could result in impairment charges on these securities.」

「The Group reports actual-versus-budget results daily and conducts monthly variance analyses by department at its regular meetings, while reviewing its plans as appropriate. However, recording impairment losses on property, plant and equipment or losses on business withdrawals could affect the Group's results.」

「For operating assets in Aizuwakamatsu, Fukushima Prefecture, operating profit or loss was negative for 3 consecutive periods. The carrying amount was therefore reduced to the recoverable amount, and the resulting decrease was recorded as an impairment loss of ¥14.075 million under extraordinary losses.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「For operating assets in Yamagata, Yamagata Prefecture, the carrying amount was reduced to the recoverable amount due to a change in the construction plan resulting from the strengthening and review of the Group's logistics structure, and the resulting decrease was recorded as an impairment loss of ¥30.428 million under extraordinary losses.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Because this assumption involves uncertainty, if a renewed spread of infections or other developments after the third-quarter consolidated accounting period causes the recovery in operating results to take longer than assumed above, the Group's results for the current consolidated fiscal year may be further affected by impairment losses on fixed assets, recognition of allowances for doubtful accounts and other factors.」

「During the consolidated fiscal year, the Group recorded impairment losses on the following asset groups: ¥81.915 million on shared assets in Yamagata, Yamagata Prefecture; ¥4.707 million on operating assets in Taihaku-ku, Sendai; and ¥7.372 million on operating assets in Shimotsuga District, Tochigi Prefecture.」

「Under adjustments, the carrying amount of shared assets scheduled for disposal was reduced to their recoverable amount, and the resulting decrease of ¥81.915 million was recorded as an impairment loss under extraordinary losses. In the Retail segment, the carrying amount of operating assets scheduled for disposal was also reduced to their recoverable amount, and the resulting decrease of ¥4.707 million was recorded as an impairment loss under extraordinary losses.」

「Under adjustments, the carrying amount of shared assets scheduled for disposal was reduced to their recoverable amount, and the resulting decrease of ¥81.915 million was recorded as an impairment loss under extraordinary losses. In the Retail segment, the carrying amount of operating assets scheduled for disposal was also reduced to their recoverable amount, and the resulting decrease of ¥4.707 million was recorded as an impairment loss under extraordinary losses.」

「For shared assets scheduled for disposal in the reconciliation adjustments, the company reduced their carrying amount to the recoverable amount and recognized the resulting reduction of ¥81.915 million as an impairment loss under extraordinary losses.」

「For rental real estate, the company reduced the carrying amount to the recoverable amount because of a significant decline in land prices and recognized the resulting reduction of ¥10.390 million as an impairment loss under extraordinary losses. For operating assets, the company reduced the carrying amount to the recoverable amount following the decision to rebuild and recognized the resulting reduction of ¥18.950 million as an impairment loss under extraordinary losses.」

「For operating assets scheduled for disposal in the Retail Operations segment, the company reduced their carrying amounts to recoverable amounts and recognized the resulting reduction of ¥18.950 million as an impairment loss under extraordinary losses.」

「Impairment loss 54,274 10,390」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「For operating assets, because operating losses continued at each asset group and recovery of the investment was no longer expected, the company reduced their carrying amounts to recoverable amounts and recognized the resulting reduction of ¥57.857 million as an impairment loss under extraordinary losses.」

「During the nine-month period of the third quarter of the current consolidated fiscal year, operating results remained solid as the company acquired new customers and reviewed its proposed products, including the high-value-added JFSA brand, which led to an increase in delivered items. However, because the business environment at the Utsunomiya sales office was challenging, the company recognized an impairment loss on fixed assets of ¥54 million.」

「As a result, revenue was ¥24,705 million, up 3.0% year on year; operating profit was ¥666 million, up 2.2%; ordinary profit was ¥783 million, up 4.7%; and net income attributable to owners of the parent was ¥492 million, down 1.2%.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「The company recognized an impairment loss of ¥273 million on the Shikano store in the retail operations segment (Taihaku Ward, Sendai) and rental real estate in Akita, Akita Prefecture, where land values had fallen significantly.」

「Impairment loss ― 4,937」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「If it becomes necessary to recognize impairment losses on assets or asset groups subject to impairment accounting within our Group, this may affect our Group's business performance.」