The company has announced changes to its full-year forecasts and reported the completion of its global structural reforms.
Having defined Fiscal 2024 as a year to complete major management reforms, the company drove the selection and concentration of businesses to strengthen its profitability and financial base.
With the implementation of management reforms, the company expects to record an operating loss due to the transfer of share during the fourth quarter of the fiscal year ended 31 March 2025 (the current period).
Revenue is revised downward by ¥9 billion ($62.75 million/ €55.27 million). On the other hand, business contribution profit is revised upward by ¥1 billion ($6.98 million/ €6.14 million), due to the favourable performance of its Business Technologies Business.
Furthermore, as a result of the impairment testing in accordance with the IFRS, the company expects to record impairment losses of approximately ¥22 billion ($153.54 million/ €135.12 million) in the current period. Consequently, operating profit is revised downward by ¥39 billion ($272.1 million/ €239.5 million).
As disclosed on 4 April 2024, the company implemented global structural reforms that enhanced productivity across the Group, as initiatives to achieve goals of the Medium-term Business Plan (Fiscal 2023-2025) and a sustainable growth beyond 2025.
In the disclosure on 4 April 2024, the global headcount optimisation was expected to be a decrease of 2,400 people, compared to the initial personnel plan of the Medium-term Business Plan. Furthermore, the Company implemented additional measures to improve profitability, segmented by functions and regions.
The number of headcounts reduced was 2,391 on the original global structural reforms plan, and 310 on the additional measures to improve profitability. In total, the number was 2,701, including regular and non-regular employees.
One-time expenses associated with the implementation of the global structural reforms is approximately ¥19 billion ($132.51 million/ €116.66 million), which is approximately ¥1 billion ($6.98 million/ €6.14 million) less than what was planned in the disclosure on 4 April 2024.
As a result, the effect on business contribution profit in the fiscal year ended 31 March 2025, is expected to be an increase of approximately ¥10 billion ($69.74 million/ €61.4 million), compared to what it would be before the optimisation.
