Interim report
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Disclaimer: This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Six Months Ended November 20, 2024 [Japanese GAAP]* December 13, 2024 Company name: ASKUL Corporation Stock exchange listing: Tokyo Code number: 2678 URL: https://www.askul.co.jp/corp/english/investor Representative: Akira Yoshioka Representative Director, President and CEO (chief executive officer) Contact: Tsuguhiro Tamai Director and CFO (chief financial officer) Phone: +81-3-4330-5130 Scheduled date of filing semi-annual securities report: December 27, 2024 Scheduled date of commencing dividend payments: January 20, 2025 Preparation of supplementary materials for financial results: Yes Schedule of financial results briefing session: Yes (for institutional investors and analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Six Months Ended November 20, 2024 (May 21, 2024 to November 20, 2024) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Million yen % Million yen % Million yen % Million yen % November 20, 2024 237,932 2.9 6,028 (16.8) 5,920 (16.7) 3,739 (19.4) November 20, 2023 231,288 5.0 7,242 7.4 7,104 5.9 4,637 3.5 (Note) Comprehensive income: Six months ended November 20, 2024: ¥3,895 million [(18.5%)] Six months ended November 20, 2023: ¥4,778 million [5.3%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen November 20, 2024 39.10 39.05 November 20, 2023 47.58 47.52 (2) Consolidated Financial Position Total assets Net assets Capital adequacy ratio As of Million yen Million yen % November 20, 2024 226,825 79,638 33.7 May 20, 2024 243,062 81,336 32.2 (Reference) Equity: As of November 20, 2024: ¥76,371 million As of May 20, 2024: ¥78,262 million 2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended May 20, 2024 - 18.00 - 18.00 36.00 Fiscal year ending May 20, 2025 - 19.00 Fiscal year ending May 20, 2025 (Forecast) - 19.00 38.00 (Note) Revision to the forecast for dividends announced most recently: No
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 20, 2025 (May 21, 2024 to May 20, 2025) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 500,000 6.0 18,000 6.2 17,700 6.1 11,200 (41.5) 117.10 (Note) Revision to the financial results forecast announced most recently: No * Notes: (1) Significant changes in the scope of consolidation during the period under review: No (2) Accounting policies adopted specially for the preparation of semi-annual consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (4) Number of outstanding shares (common stocks) 1) Number of outstanding shares at the end of the period (including treasury stock): November 20, 2024: 95,671,300 shares May 20, 2024: 97,564,700 shares 2) Number of treasury stock at the end of the period: November 20, 2024: 766,900 shares May 20, 2024: 810,475 shares 3) Average number of shares during the period: Six months ended November 20, 2024: 95,645,518 shares Six months ended November 20, 2023: 97,471,883 shares * This Consolidated Financial Results is not subject to review by a certified public accountant or auditing firm. * Notes for using forecasted information and others Earnings forecasts and other forward-looking statements contained in this document are based on the information ASKUL has obtained to date and on certain assumptions it considers reasonable. As such, these forecasts and statements are not intended as a commitment by the Company to ach ieve them. Note also that actual results and other future events may differ materially from these forecasts and statements due to a variety of factors. For the assumptions on which earnings forecasts are based and notes and information on the use of earnings forecasts, see “1. Qualitative Information on Financial Results (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information” on Page 4 of Attached Materials.
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1 Table of Contents for Attached Materials 1. Qualitative Information on Financial Results ....................................................................................................................... 2 (1) Explanation of Operating Results ................................................................................................................................... 2 (2) Explanation of Financial Position .................................................................................................................................... 3 (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information ........................................................... 4 2. Semi-annual Consolidated Financial Statements and Notes ............................................................................................... 5 (1) Semi-annual Consolidated Balance Sheets ................................................................................................................... 5 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ............................................................ 7 (3) Semi-annual Consolidated Statements of Cash Flows ................................................................................................... 9 (4) Notes to Semi-annual Consolidated Financial Statements ........................................................................................... 10 (Notes to Going Concern Assumption) ........................................................................................................................... 10 (Notes to Significant Changes in Shareholders’ Equity) ................................................................................................. 10 (Changes in Accounting Policies) ................................................................................................................................... 10 (Segment Information, etc.) ............................................................................................................................................. 11 3. Other ................................................................................................................................................................................. 13 Details of Selling, General and Administrative Expenses (Consolidated) ....................................................................... 13
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2 1. Qualitative Information on Financial Results (1) Explanation of Operating Results During the six months ended November 20, 2024 (from May 21, 2024 to November 20, 2024), the Japanese economy is expected to continue its gradual recovery, with improving employment and income conditions, partly due to increased inbound demand, although some areas remained at a standstill. On the other hand, the outlook remains uncerta in due to rising prices of raw materials and energy amid the unstable international situation , drastic foreign exchange rate fluctuations, concerns about the impact of global monetary tightening on the economy and other factors. Under such circumstances, in the fiscal year under review, the final year of the Medium-term Management Plan (from the fiscal year ended May 20, 202 2 to the fiscal year ending May 20, 2025), the Group plans net sales of 500.0 billion yen, a 6.0% increase year-on-year, and operating profit of 18.0 billion yen, a 6.2% increase year -on-year, by increasing net sales and improving the gross profit margin and variable cost ratio to absorb increas ing fixed costs. The Group is also aiming to achieve new record highs in both net sales and operating profit. The financial performance of the Group for the six months ended November 20, 2024 was net sales of 237,932 million yen, a 2.9% increase year-on-year, operating profit of 6,028 million yen, a 16.8% decrease year-on-year, ordinary profit of 5,920 million yen, down 16.7% year-on-year, and profit attributable to owners of parent of 3,739 million yen, a 19.4% decrease year-on-year. Operating results by segment are outlined below. <E-commerce business> (Million yen) For the six months ended November 20, 2023 For the six months ended November 20, 2024 Change (amount) Change (percentage) Net sales 226,673 233,569 +6,895 +3.0% ASKUL business 174,340 178,294 +3,953 +2.3% LOHACO business 17,486 18,108 +621 +3.6% Group companies and elimination of intra-group transactions 34,846 37,166 +2,320 +6.7% Operating profit 7,339 6,064 (1,274) (17.4)% (Note) Net sales in the E-commerce business were previously disclosed under the classification of the “B-to-B business” and “B-to-C business,” but the classification has been changed to the “ASKUL business,” “LOHACO business,” and “Group companies and elimination of intra-group transactions,” effective from the six months ended November 20, 2024 for the purpose of disclosure that is more in line with the actual business conditions. The “ASKUL business” refers to the B-to-B business, the “LOHACO business” refers to the B-to-C business, and the “Group companies and elimination of intra-group transactions” refers to both the B-to-B business and B-to-C business. In the E-commerce business during the six months ended November 20, 2024, all businesses grew steadily, resulting in net sales of 233,569 million yen, a 3.0% increase year-on-year. On the other hand, operating profit was 6,064 million yen, a 17.4% decrease year-on-year, due to increased fixed costs, etc., including rents related to the ASKUL Kanto DC, which is scheduled to start operations at the beginning of the fiscal year ending May 20, 2026, in addition to the decline in gross profit margin due to the impact of foreign exchange rates, etc., resulting in an increase in sales and a decrease in profits. Net sales and operating profit are outlined below. (1) Net sales a. ASKUL business • Net sales of products for Living Supplies and Medical categories remained strong, with a growth rate of 2.3%, despite sluggish demand for conventional office supplies (office furniture, ink and toner, stationery, etc.) • Sales per customer increased year-on-year due to intermittent price increases on the back of surging purchase
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3 prices and the revision of the free shipping threshold (Note). However, the number of customers decreased year- on-year. • Net sales to large and medium-sized companies remained strong, despite sluggish purchase volumes by small and medium-sized enterprises due to delayed demand recovery b. LOHACO business • Net sales grew 3.6%, partly due to sales promotion measures in collaboration with LY Corporation c. Group companies and elimination of intra-group transactions • Net sales of AlphaPurchase Co., Ltd. and FEED Corporation remained strong, with a growth rate of 6.7% (2) Operating profit Operating profit decreased by 1,274 million yen year-on-year to 6,064 million yen. This was mainly due to a 0.9- point year-on-year decrease in gross profit margin, standing at 24.4%, and increased fixed costs, while the ratio of selling, general and administrative expenses improved 0.3 points year-on-year to 21.8%, as outlined below. • The purchase price of imported products such as copy paper increased due to the impact of foreign exchange rates, resulting in a decline in the gross profit margin • The unit sales price per box increased due to the revision of the free shipping threshold in the previous fiscal year, which continued to encourage customers to buy in bulk and worked to decrease the ratio of shipment expenses to net sales, leading to a gradual decrease of shipment expenses • The commencement of leasing of the ASKUL Kanto DC incurred rents and preparation costs (718 million yen in total) for operation in the next fiscal year <Logistics business> Although net sales of the contracted business of logistics that ASKUL LOGIST Corporation received from outside the Group decreased, profitability increased mainly due to service price revisions and improved productivity, resulting in a decrease in sales and an increase in profits. As a result, net sales in the six months ended November 20, 2024 were 3,993 million yen, a 4.5% decrease year-on- year, and operating loss was 82 million yen, as opposed to an operating loss of 122 million yen a year earlier. <Other> Sales of bottled water of TSUMAGOI MEISUI CORPORATION, including new products, remained steadily. Operating profit increased significantly due to further improvement in productivity. As a result, net sales for the six months ended November 20, 2024 were 1,192 million yen, a 17.2% increase year-on- year, and operating profit was 145 million yen, up 120.7% year-on-year. (Note) The standard amount per order for which the Company bear the basic delivery fee. (2) Explanation of Financial Position (Assets) Total assets stood at 226,825 million yen at the end of the six months ended November 20, 2024, a decrease of 16,236 million yen from the end of the preceding fiscal year. This was mainly due to decreases of 12,364 million yen in accounts receivable - other mainly resulting from the receipt of damages for the fire at the ALP Metropolitan, 5,390 million yen in cash and deposits mainly due to the payment related to income taxes and the acquisition of treasury stock, despite the receipt of damages, and 1,107 million yen in software, while software in progress increased 1,576 million yen, and notes and accounts receivable - trade, and contract assets increased 1,232 million yen. (Liabilities) Total liabilities stood at 147, 186 million yen at the end of the six months ended November 20, 2024 , a decrease of 14,538 million yen from the end of the preceding fiscal year. This was primarily due to decreases of 5,372 million yen in income taxes payable, 2,974 million yen in electronically recorded obligations - operating, 2,736 million yen in accounts
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4 payable - other, 1,748 million yen in accrued consumption taxes, and 1,399 million yen in long-term borrowings (including current portion). (Net assets) Net assets stood at 79,638 million yen at the end of the six months ended November 20, 2024 , a decrease of 1,697 million yen from the end of the preceding fiscal year. The primary factors behind the decline were a decrease of 2,099 million yen in retained earnings mainly due to recognition of profit attributable to owners of parent of 3,739 million yen as opposed to the cancellation of treasury stock of 4,096 million yen and dividend payments of 1,741 million yen. Consequently, the capital adequacy ratio was 33.7% (32.2% at the end of the preceding fiscal year). (Cash Flows) Cash and cash equivalents (hereinafter “ funds”) stood at 56,354 million yen at the end of the six months ended November 20, 2024, a decrease of 5,390 million yen from the end of the preceding fiscal year. The status of each cash flow and the factors behind changes in the six months ended November 20, 2024 are as follows. (Cash flows from operating activities) Net funds provided by operating activities were 11,148 million yen (compared to 1,950 million yen in the same period of the previous year ). This was mainly due to compensation for damage in come received of 11,8 81 million yen, profit before income taxes of 5,864 million yen, and a total of 5,443 million yen for depreciation and amortization of software, goodwill, and customer -related intangible assets, as opposed to a payment of income taxes of 7,503 million yen, a decrease of 3,180 million yen in trade payables, and a decrease of 1,748 million yen in accrued consumption taxes. (Cash flows from investing activities) Net funds used in investing activities were 8,712 million yen (compared to 4,492 million yen in the same period of the previous year). This was mainly due to expenditures of 5,180 million yen for the purchase of property, plant and equipment, and 2,943 million yen for the purchase of software. (Cash flows from financing activities) Net funds used in financing activities were 7,826 million yen (4,820 million yen in the same period of the previous year). This was mainly due to the purchase of treasury shares of 4,017 million yen, dividends paid of 1,741 million yen, and repayments of lease liabilities of 1,575 million yen. (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information The forecast for the year ending May 20, 2025 (full year) announced on July 3, 2024, remains unchanged.
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5 2. Semi-annual Consolidated Financial Statements and Notes (1) Semi-annual Consolidated Balance Sheets (Millions of yen) As of May 20, 2024 As of November 20, 2024 Assets Current assets Cash and deposits 61,744 56,354 Trade receivables and contract asset 53,878 55,110 Merchandise and finished goods 23,021 23,239 Raw materials and supplies 334 366 Costs on construction contracts in progress 62 44 Accounts receivable - other 26,194 13,830 Other 2,790 2,659 Allowance for doubtful accounts (32) (44) Total current assets 167,994 151,561 Non-current assets Property, plant and equipment Buildings and structures 10,363 10,405 Accumulated depreciation (5,211) (5,497) Buildings and structures, net 5,152 4,908 Land 257 257 Leased assets 31,325 32,218 Accumulated depreciation (14,490) (16,136) Leased assets, net 16,834 16,081 Construction in progress 6,965 7,841 Other 12,628 12,805 Accumulated depreciation (9,345) (9,573) Other, net 3,283 3,231 Total property, plant and equipment 32,493 32,319 Intangible assets Software 16,475 15,367 Software in progress 2,340 3,916 Goodwill 4,996 4,727 Customer-related intangible assets 7,542 7,281 Other 11 10 Total intangible assets 31,365 31,304 Investments and other assets Investment securities 159 108 Deferred tax assets 4,353 4,242 Other 7,497 8,089 Allowance for doubtful accounts (800) (800) Total investments and other assets 11,208 11,640 Total non-current assets 75,068 75,264 Total assets 243,062 226,825
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6 (Millions of yen) As of May 20, 2024 As of November 20, 2024 Liabilities Current liabilities Notes and accounts payable - trade 59,078 58,872 Electronically recorded obligations - operating 26,007 23,033 Short-term borrowings 380 380 Current portion of long-term borrowings 4,103 4,042 Accounts payable - other 14,921 12,184 Income taxes payable 7,420 2,047 Accrued consumption taxes 2,226 478 Provisions 419 520 Other 6,335 6,269 Total current liabilities 120,893 107,827 Non-current liabilities Long-term borrowings 13,237 11,899 Lease liabilities 15,058 14,261 Retirement benefit liability 4,853 5,008 Asset retirement obligations 3,199 3,190 Deferred tax liabilities 2,573 2,484 Other 1,909 2,514 Total non-current liabilities 40,832 39,359 Total liabilities 161,725 147,186 Net assets Shareholders' equity Share capital 21,233 21,233 Capital surplus 14,940 14,929 Retained earnings 43,750 41,651 Treasury shares (1,807) (1,571) Total shareholders' equity 78,116 76,242 Accumulated other comprehensive income Remeasurements of defined benefit plans 145 129 Total accumulated other comprehensive income 145 129 Share acquisition rights 0 0 Non-controlling interests 3,073 3,267 Total net assets 81,336 79,638 Total liabilities and net assets 243,062 226,825
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7 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statements of Income (For the six months) (Millions of yen) For the six months ended November 20, 2023 For the six months ended November 20, 2024 Net sales 231,288 237,932 Cost of sales 173,657 180,750 Gross profit 57,631 57,182 Selling, general and administrative expenses 50,388 51,153 Operating profit 7,242 6,028 Non-operating income Interest income 19 49 Subsidy income 38 15 Other 30 45 Total non-operating income 89 110 Non-operating expenses Interest expenses 201 191 Other 25 27 Total non-operating expenses 227 219 Ordinary profit 7,104 5,920 Extraordinary income Gain on sale of non-current assets 0 3 Compensation for damage income - 6 Other - 6 Total extraordinary income 0 16 Extraordinary losses Loss on sale of non-current assets - 0 Loss on retirement of non-current assets 25 18 Loss on valuation of investment securities - 50 Other 0 3 Total extraordinary losses 25 72 Profit before income taxes 7,079 5,864 Income taxes - current 2,326 1,922 Income taxes - deferred (25) 28 Total income taxes 2,300 1,951 Profit 4,778 3,912 Profit attributable to non-controlling interests 141 172 Profit attributable to owners of parent 4,637 3,739
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8 Semi-annual Consolidated Statements of Comprehensive Income (For the six months) (Millions of yen) For the six months ended November 20, 2023 For the six months ended November 20, 2024 Profit 4,778 3,912 Other comprehensive income Remeasurements of defined benefit plans, net of tax (0) (16) Total other comprehensive income (0) (16) Comprehensive income 4,778 3,895 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,637 3,723 Comprehensive income attributable to non- controlling interests 141 172
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9 (3) Semi-annual Consolidated Statements of Cash Flows (Millions of yen) For the six months ended November 20, 2023 For the six months ended November 20, 2024 Cash flows from operating activities Profit before income taxes 7,079 5,864 Depreciation 2,186 2,365 Amortization of software 2,369 2,548 Amortization of long-term prepaid expenses 38 66 Amortization of goodwill 268 268 Amortization of customer reletionship 261 261 Increase (decrease) in allowance for doubtful accounts 22 12 Increase (decrease) in provisions 782 100 Increase (decrease) in retirement benefit liability 141 131 Interest and dividend income (22) (53) Interest expenses 201 191 Compensation for damage income - (6) Loss (gain) on valuation of investment securities - 50 Loss on retirement of non-current assets 25 18 Loss (gain) on sale of non-current assets (0) (3) Decrease (increase) in trade receivables (2,573) (1,233) Decrease (increase) in inventories (940) (231) Decrease (increase) in accounts receivable - other 772 488 Increase (decrease) in trade payables (6,911) (3,180) Increase (decrease) in accounts payable - other (450) 63 Increase (decrease) in accrued consumption taxes 885 (1,748) Other, net 697 675 Subtotal 4,832 6,650 Interest and dividends received 22 53 Interest paid (202) (192) Compensation for damages received - 11,881 Income taxes paid (2,707) (7,503) Income taxes refund 4 259 Net cash provided by (used in) operating activities 1,950 11,148 Cash flows from investing activities Purchase of property, plant and equipment (1,472) (5,180) Proceeds from sale of property, plant and equipment 0 8 Purchase of software (2,956) (2,943) Purchase of long-term prepaid expenses (49) (6) Payments of guarantee deposits (64) (723) Proceeds from refund of guarantee deposits 44 152 Loan advances (1) (21) Proceeds from collection of loans receivable 18 0 Payments for asset retirement obligations (9) - Other, net (1) (0) Net cash provided by (used in) investing activities (4,492) (8,712)
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10 (Millions of yen) For the six months ended November 20, 2023 For the six months ended November 20, 2024 Cash flows from financing activities Repayments of long-term borrowings (1,691) (1,399) Purchase of treasury shares - (4,017) Repayments of lease liabilities (1,412) (1,575) Proceeds from share issuance to non-controlling shareholders 37 21 Dividends paid (1,754) (1,741) Proceeds from sale and leaseback transactions - 886 Net cash provided by (used in) financing activities (4,820) (7,826) Net increase (decrease) in cash and cash equivalents (7,362) (5,390) Cash and cash equivalents at beginning of period 66,223 61,744 Cash and cash equivalents at end of period 58,860 56,354 (4) Notes to Semi-annual Consolidated Financial Statements (Notes to Going Concern Assumption) Not applicable. (Notes to Significant Changes in Shareholders’ Equity) (Purchase of Treasury Stock) The Company acquired 1,905,200 shares of treasury stock during the six months ended November 20, 2024 based on a resolution of the Board of Directors meeting held on March 15, 2024 and a resolution of the Board of Directors meeting held on September 13, 2024. As a result, treasury shares increased by 4,017 million yen. (Cancellation of Treasury Stock) The Company cancelled 1,893,400 shares of treasury stock during the six months ended November 20, 2024 based on a resolution of the Board of Directors meeting held on September 13, 2024. As a result, capital surplus decreased by 8 million yen, retained earnings decreased by 4,096 million yen, and treasury shares decreased by 4,104 million yen. (Changes in Accounting Policies) (Application of the “Accounting Standard for Current Income Taxes,” etc.) The Company has applied the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, revised on October 28, 2022; the “Revised Accounting Standard of 2022”), etc. from the beginning of the six months ended November 20, 2024. Revisions to categories for recording “Income taxes ” (taxation on other comprehensive income) conform to the transitional treatment in the proviso of Paragraph 20-3 of the Revised Accounting Standard of 2022, and Paragraph 65- 2 (2) of the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, revised on October 28, 2022; the “Revised Guidance of 2022”). These changes in accounting policies have no impact on the semi-annual consolidated financial statements. As for the revisio n related to the review of the treatment in the consolidated financial statements in the case of the deferral for tax purposes of gain or loss on sale arising from the sale of shares of subsidiaries, etc. between consolidated companies, the Company has app lied the Revised Guidance of 2022 from the beginning of the six months ended November 20, 2024 . These changes in accounting policies are applied retrospectively, including the semi-annual consolidated financial statements and the consolidated financial statements of the previous fiscal year which have been adjusted retrospectively. These changes in accounting policies have no impact on the semi-annual consolidated financial statements and the consolidated financial statements of the previous fiscal year.
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11 (Segment Information, etc.) [Segment Information] I. First Six Months of the Previous Fiscal Year (From May 21, 2023 to November 20, 2023) Information on net sales and profit (loss) by reporting segment (Million yen) Reporting Segment Others (Note 1) Total Adjustments (Note 2) Amount recorded in semi-annual consolidated statements of income (Note 3) E-commerce business Logistics business Total Net sales ASKUL business 174,340 － 174,340 － 174,340 － 174,340 LOHACO business 17,486 － 17,486 － 17,486 － 17,486 Group companies and elimination of intra- group transactions 34,846 － 34,846 － 34,846 － 34,846 Logistics business － 4,180 4,180 － 4,180 － 4,180 Others － － － 434 434 － 434 Revenue from contracts with customers 226,673 4,180 230,854 434 231,288 － 231,288 Sales to external customers 226,673 4,180 230,854 434 231,288 － 231,288 Intra-segment sales or transfer － － － 583 583 (583) － Total 226,673 4,180 230,854 1,017 231,871 (583) 231,288 Segment profit (loss) 7,339 (122) 7,216 65 7,282 (40) 7,242 (Notes) 1. “Other” represents business segments that do not fall under the Reporting Segment and includes the manufacturing business. 2. The adjustment of minus 40 million yen to segment profit (loss) represents the elimination of inter-segment transactions. 3. Segment profit (loss) is adjusted with operating profit reported in the semi-annual consolidated statements of income.
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12 II. First Six Months of the Current Fiscal Year (From May 21, 2024 to November 20, 2024) 1. Information on net sales and profit (loss) by reporting segment (Million yen) Reporting Segment Others (Note 1) Total Adjustments (Note 2) Amount recorded in semi-annual consolidated statements of income (Note 3) E-commerce business Logistics business Total Net sales ASKUL business 178,294 － 178,294 － 178,294 － 178,294 LOHACO business 18,108 － 18,108 － 18,108 － 18,108 Group companies and elimination of intra- group transactions 37,166 － 37,166 － 37,166 － 37,166 Logistics business － 3,993 3,993 － 3,993 － 3,993 Others － － － 369 369 － 369 Revenue from contracts with customers 233,569 3,993 237,563 369 237,932 － 237,932 Sales to external customers 233,569 3,993 237,563 369 237,932 － 237,932 Intra-segment sales or transfer － － － 823 823 (823) － Total 233,569 3,993 237,563 1,192 238,756 (823) 237,932 Segment profit (loss) 6,064 (82) 5,982 145 6,127 (98) 6,028 (Notes) 1. “Other” represents business segments that do not fall under the Reporting Segment and includes the manufacturing business. 2. The adjustment of minus 98 million yen to segment profit (loss) represents the elimination of inter-segment transactions. 3. Segment profit (loss) is adjusted with operating profit reported in the semi-annual consolidated statements of income. 2. Matters concerning changes to reportable segments, etc. Revenue in the E-commerce business among reporting segments was previously classified into the “B-to-B business” and “B -to-C business,” but the classification has been changed to the “ASKUL business,” “LOHACO business,” and “Group companies and elimination of intra-group transactions,” effective from the six months ended November 20, 2024 for the purpose of disclosure that is more in line with the actual business conditions. This change refers to the classification of revenue within reporting segments and has no impact on segment information. The revenue for the six months ended November 20, 2023 is stated in the classification after the change.
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13 3. Other Details of Selling, General and Administrative Expenses (Consolidated) Item First Six Months of the Previous Fiscal Year (From May 21, 2023 to November 20, 2023) First Six Months of the Fiscal Year Under Review (From May 21, 2024 to November 20, 2024) (Reference) Fiscal Year Ended May 2024 (From May 21, 2023 to May 20, 2024) Amount (Million yen) Ratio to Sales (%) Amount (Million yen) Ratio to Sales (%) Year-on- Year Change (%) Amount (Million yen) Ratio to Sales (%) Personnel expenses 12,879 5.6 12,459 5.2 96.7 25,381 5.4 Shipment expenses 11,214 4.8 10,991 4.6 98.0 21,611 4.6 Subcontract expenses *1 2,450 1.1 3,040 1.3 124.1 5,065 1.1 Business consignment expenses 5,670 2.5 5,781 2.4 102.0 11,223 2.4 Rents *2 5,551 2.4 6,227 2.6 112.2 11,132 2.4 Provision of allowance for doubtful accounts 29 0.0 14 0.0 50.8 (27) (0.0) Depreciation *3 1,908 0.8 2,116 0.9 110.9 3,960 0.8 Amortization of software 2,322 1.0 2,503 1.1 107.8 4,891 1.0 Other expenses 8,362 3.6 8,016 3.4 95.9 17,310 3.6 Total 50,388 21.8 51,153 21.5 101.5 100,549 21.3 *1. Compared with the same period of the previous fiscal year, subcontract expenses for the six months ended November 20, 2024 increased. This was mainly due to the full-scale operation of the new ASKUL website for the ASKUL business and incurred expenses for core system replacement. 2. Compared with the same period of the previous fiscal year, rents for the six months ended November 20, 2024 increased. This was mainly due to the commencement of leasing of ASKUL Kanto DC in June 2024. 3. Compared with the same period of the previous fiscal year, depreciation for the six months ended November 20, 2024 increased. This was mainly due to the introduction of automated transfer robot equipment at ASKUL Value Center Kansai.