Apr 10, 2024
For the fourth quarter of the fiscal year ending March 31, 2024, SATO Holdings Corporation recorded an extraordinary loss as detailed below. We consequently revised our consolidated financial results forecast for the full fiscal year ending March 31, 2024, which we announced on February 9, 2024. In light of these developments, we are enforcing cuts in executive pay.
1. Details of extraordinary loss
Since FY 2020, we have been developing a new backbone system to replace our current one, aiming to improve business processes and update outdated systems. However, we have concluded that certain functions originally planned are unfeasible. In accordance with the Japan Accounting Standard for Impairment of Fixed Assets, we have decided to write down the fixed assets related to the development that were accounted for as software in progress, and recognize an impairment loss, which will be recorded as extraordinary loss for the fourth quarter of the fiscal year ending March 31, 2024, and will impact our consolidated and non-consolidated financial results as below.
- A)Impact on consolidated results
A goodwill impairment of approximately 2.3 billion yen has been recognized on fixed assets and will be recorded as an extraordinary loss. - B)Impact on non-consolidated results
A goodwill impairment of approximately 2.3 billion yen has been recognized on fixed assets and will be recorded as an extraordinary loss.
2. Revisions to financial results forecasts
- A)We have revised consolidated financial results forecasts for the fiscal year ending March 31, 2024 as detailed below.
You can scroll through this table.
| Net sales | Operating income | Ordinary income | Profit attributable to owners of parent | Earnings per share | |
|---|---|---|---|---|---|
| Previous forecast (A) | Millions of yen 144,000 |
Millions of yen 9,900 |
Millions of yen 9,500 |
Millions of yen 5,600 |
Yen 172.83 |
| Revised forecast (B) | 144,000 | 9,900 | 9,500 | 4,000 | 123.45 |
| Change (B−A) | — | — | — | -1,600 | -49.38 |
| Percentage change (%) | — | — | — | -28.6 | -28.6 |
| (Ref.) Consol. results for previous FY (FY ending March 2023) |
142,824 | 8,841 | 9,068 | 4,184 | 126.66 |
- B)Reasons for revising financial results forecasts
Due to the aforementioned extraordinary loss, profit attributable to owners of the parent company is expected to decrease to 4 billion yen.
3. Dividend forecast
The year-end dividend forecast remains unchanged at 36 yen per share, consistent with the previously announced forecast.
4. Cuts in executive pay
Given the loss reflected in our financial statements and the resulting updates to our consolidated fiscal year forecasts, the leadership team has determined that executive compensation will be reduced. This decision underscores our commitment to operational accountability.
- A)Details of cuts in executive pay
Representative Director, President and Group CEO: 20% reduction in monthly remuneration
Director and Vice President overseeing Japan business: 20% reduction in monthly remuneration - B)Applicable period
Effective for three months from April to June 2024
(Note)The forecasts in this announcement are based on information available as of the date of publication. Actual financial results may deviate materially from these forecasts due to various factors.
