Overview of Results of Operations

During the current fiscal year, the Japanese economy showed some signs of recovery in economic activity due to progress in easing behavioral restrictions, although the impact of the spread of a COVID-19 variant continued to be felt in general. On the other hand, in addition to the prolonged Russian invasion of Ukraine and disruption caused by China’s zeroCOVID policy and the lifting of this policy in December 2022, the trend of rising prices of goods and services became more pronounced. Furthermore, global monetary tightening and sharp fluctuations in exchange rates have made the outlook of the global economy increasingly uncertain.

In these circumstances, under the slogan “Connect for Well-being,” the ROHTO Group is endeavoring to enable people all over the world to feel energized both mentally and physically, and spend every day filled with laughter and happiness throughout the various stages of their life. With the aim of further increasing corporate value, we are working to realize the ROHTO Group Comprehensive Management Vision 2030.

Consequently, consolidated net sales for the current fiscal year increased significantly to 238,664 million yen (up 19.5% year-on-year). In Japan, sales increased due to a recovery in consumer confidence with the resumption of economic activity, as well as product proposals that meet customer needs. Overseas, sales also increased due to the recovery in economic activity and depreciation of the yen, despite a sharp rise in raw material prices.

As for profits, in addition to a significant increase in sales, efforts to efficiently utilize selling, general and administrative expenses resulted in significant increases in all profit categories: operating profit of 33,959 million yen (up 17.0% yearon-year), ordinary profit of 35,568 million yen (up 23.7% year-on-year), and profit attributable to owners of parent of 26,377 million yen (up 24.9% year-on-year). The provisional accounting treatment for the business combinations was finalized in the current fiscal year, and the amounts after reflecting the revisions due to the finalization of the provisional accounting treatment are used for the comparison with the previous fiscal year.

Outlook for the fiscal year ending Mar. 31, 2024

The future economic outlook remains uncertain. Although the impact of the COVID-19 pandemic on the economy is expected to diminish, sharply higher raw material and fuel prices as well as higher commodity prices due to heightened geopolitical risks are expected to persist, and a decline in consumer confidence coupled with households’ frugality will have an impact on personal consumption.

In these circumstances, the ROHTO Group will adapt to the changes in the business environment, aiming to expand business further and improve earnings by creating new products that respond appropriately to changing customer needs. The Group is also endeavoring to achieve innovations, including through alliances with a wide range of companies.

In view of this situation, for the fiscal year ending March 31, 2024, the Company projects net sales of 259.0 billion yen, operating profit of 35.0 billion yen partly due to an increase in marketing costs in the Japan segment mainly for the launch of new brands, ordinary profit of 36.0 billion yen, and profit attributable to owners of parent of 26.5 billion yen.

These forecasts are based on an exchange rate of 130 yen to the U.S. dollar.