IR information

TOP > IR > Message from the president

Message from
the president

To our investors,

Due to the spread of the Covid-19 pandemic on a global scale, the Japanese economy was greatly affected during the current consolidated cumulative third quarter, with the country experiencing further economic slowdown. Economic activity gradually resumed after the government lifted the state of emergency on May 25, 2020, but a strengthening of limitations on activities due to another wave of infections spreading since December has meant the outlook has grown more uncertain.


In the dormitory business, the occupancy rate our group had at the start of the quarter was 93.7%, slightly lower than the previous year's because of factors such as international students having to delay their visits to Japan due to the spread of the Covid-19 pandemic. In the hotel business, despite a sharp fall in demand from inbound sources, our group experienced an increase in domestic demand from June onwards, with the Go To Travel Campaign only serving to fuel this allowing our recovery to gain momentum. In addition, despite being partially affected by the effects of another wave of the spread of the Covid-19 pandemic in December, our group showed further improvement in the third quarter of the current consolidated accounting period. This came following on from our our performance in the second quarter of the consolidated accounting period where we rebounded from the deficit we experienced in the first.


As a result, sales in the current consolidated cumulative third quarter were ¥91,343 million (a 31.4% decrease compared to the same period in the previous fiscal year), and we posted an operating loss of ¥3,744 million (profit of ¥12,222 million in the same period in the previous fiscal year, profit of ¥742 million in the third quarter of the current consolidated accounting period), and an ordinary loss of ¥3,753 million (profit of ¥12,149 in the same period in the previous fiscal year, profit of ¥733 million in the third quarter of the current consolidated accounting period). As part of a review of our businesses aimed at further strengthening our operations and positioning the Group for future growth, we closed one of our operations in South Korea as well as the global cabin (new-style compact hotel) business. In addition, due to the extraordinary losses generated by this and other factors, net loss attributable to owners of the parent came to ¥7,653 million (profit of ¥8,184 million in the same period of the previous fiscal year, profit of ¥203 million in the third quarter of the current consolidated accounting period).


Moreover, while we are still experiencing the effects of another announcement of a state of emergency with regard to infections of the Covid-19 pandemic in no small degree, we are putting out utmost into taking measures to prevent the spread of infections and making certain to move forward with securing the funding that is deemed necessary. In the midst of these highly uncertain times, we will work together as a group to overcome the difficulties in our path.

We sincerely look forward to your continued support.

President

Koji Nakamura

Medium-Term Management Plan

The meeting was held on June 1st, 2017, at the Securities Analysts Association of Japan

This medium-term management plan will be revised due to the spread of the novel coronavirus infection.