Top Message

青山 理

We would like to express our sincere gratitude to all our shareholders and investors for the trust they have shown in our group’s business. We also express our heartfelt sympathy to those affected by COVID-19, and thank all those who have worked hard to prevent the spread of the disease and to bring it under control.
After the state of emergency was issued in April 2020 due to the COVID-19 pandemic, there was a time when the number of infections increased and stayed at a high level. We faced an extremely severe situation with a rapid drop in personal consumption and private investment mainly in face-to-face service businesses including the restaurant and travel/accommodation industries. To cope with ongoing uncertainties facing its business, the Group consolidated unprofitable stores and offered employees a voluntary retirement scheme to advance business structural reform. However, we recorded a loss for the second consecutive fiscal year.

After carefully considering these circumstances surrounding our business, we regrettably decided to pay no year-end dividend for the fiscal year ended March 31, 2021. I would ask our shareholders to accept our sincere apologies for this.
We believe that the key to winning the support of the Aoyama Trading Group’s customers and achieve sustainable growth in the future is to pursue Group-wide growth. We can do this by conducting a customer-focused business, while seeking independence and cooperation of individual organizations in carrying out projects and selling products and services. To realize what we are aiming for, we formulated the new Medium-term Management Plan “Aoyama Reborn 2023” in March 2021, covering the period until March 2024.
Defining the three years of Aoyama Reborn 2023 as a period to build a foundation to achieve what the Group is aiming for, it targets consolidated net sales of 200,000 million yen and consolidated operating income of 11,000 million yen for the final year of the period.
We would like to ask for your continued understanding and support as we strive to achieve our goals.

General Outline

The company performs in fiscal 2020

The Group's business results were net sales of 161.4 billion yen (74.1% year on year) and operating loss of 14.4 billion yen (operating income of 0.8 billion yen year on year). the Group also implemented temporary store closures and shortened operating hours mainly for the Business wear business and the Total repair service businesses during the first quarter, which adversely affected net sales.

(¥ Millions)

 

FY3/2021

Change

Segment

Net sales

Operating income

Net sales

Operating income

Business wear businness

109,855

▲15,778

▲43,445

▲16,092

Credit card business

4,875

2,083

▲404

▲162

Printing and media business

11,518

▲354

▲898

▲310

Sundry sales busineaa

16,433

645

805

59

Total repair service business

9,173

▲716

▲3,014

▲239

Food Service Business

9,101

181

▲1,020

▲396

Others

3,788

▲521

▲8,886

1,938

Consolidated adjustments

▲3,340

56

571

▲18

Consolidated total

161,404

▲14,404

▲56,292

▲15,223

Review of Operations

Business Wear Business

Business wear business of Aoyama Trading Co., Ltd., Blue Reverse Co., Ltd., MDS Co., Ltd., Eisho Co., Ltd., FUKURYO Co., Ltd., Aoyama Suits (Shanghai) Co., Ltd.

Menswear Retail Business / Sales percentage

Net sales of the business were 109,855 million yen (71.7% of that of the previous year) and segment loss (operating loss) were 15,778 million yen (segment income (operating income) of 314 million yen was posted in the previous fiscal year).
In the Business wear business, which is the core segment of our business, in response to the government’s request for voluntary stay-at-home restrictions and reducing personal contact by 70 to 80%, we implemented temporary store closures and reduced store operating hours during the 1Q of the fiscal year. We placed emphasis on securing the health and safety of customers and employees and preventing the spread of COVID-19. As a result, among other factors, sales at existing stores were 73.8% of what they were the previous year.

Credit Card Business

Aoyama Capital Co., Ltd.

Creadit Card Business / Sales percentage

In the Credit card business, Due to a drop in shopping and cashing revenues amid decreased consumption appetite resulting from the voluntary stay-at-home restrictions and temporary store closure requests, etc., net sales of the business were 4,875 million yen (92.3% of the previous year) and segment income (operating income) was 2,083 million yen (92.8% of the previous year). Funds were acquired through loans from the parent company, Aoyama Trading Co., Ltd. and through the issuance of corporate bonds.

Printing and Media Business

ASCON Co., Ltd.

Commerical Printing Business / Sales percentage

In the Printing and media business, due to a decrease in orders from the distribution and retail business, which is our main customer, net sales was 11,518 million yen (92.8% of the previous year) and segment loss (operating loss) was 354 million yen (of the previous year, segment income (operating income) was 43 million yen)

Sundry Sales Business

Seigo Co., Ltd.

Sundry Sales Business / Sales percentage

In the Sundry sales business, due to an increase in the number of customers and unit price of customers, mainly due to the purchase of hygiene products and daily necessities, net sales was 16,433 million yen (105.2% of the previous year) and segment income (operating income) was 645 million yen (110.1% of the previous year).
Regarding stores, the number of stores at the end of February 2021 was 111 (113 stores at the end of the previous year).

Total Repair Service Business

Minit Asia Pacific Co., Ltd.

Total Repair Service Business / Sales percentage

In the total repair service business, being affected by lockdown at overseas stores even in Japan, due to the temporary closure of stores and shortened business hours in the first quarter, net sales were 9,173 million yen (75.3% of the previous year) and segment loss (operating loss) was 716 million yen (segment loss (operating loss) of 476 million yen was posted in the previous fiscal year).

Food Service Business

glob Co., Ltd. Food Service Business

Total Repair Service Business / Sales percentage

In the food service business, due to the shortened business hours, net sales was 911 million yen (89.9% of the previous year) and segment income (operating income) was 181 million yen (31.4% of the previous year).

Others

Casual business of Aoyama Trading Co., Ltd., Reuse business of Aoyama Trading Co., Ltd., WTW Corporation, glob Co., Ltd., other bussiness, customlife Co., Ltd.,

Others / Sales percentage

In Other business, net sales were 3,788 million yen (29.9% of the previous year) and segment loss (operating loss) was 521 million yen (segment loss (operating loss) of 2,460 million yen was posted in the previous fiscal year). The franchise agreement with Levi Strauss Japan Co., Ltd. was terminated on March 31, 2021 for the Levi’s Store, which was developed in the casual business of Aoyama Trading Co., Ltd. In addition, SYG Inc. conducted an absorption-type merger with Customlife Co., Ltd. as the surviving company on March 1, 2021 in order to improve management efficiency.

March 31, 2021

President

青山 理