News Releases
Notice Regarding Revision of Full-year Forecasts for Consolidated
Financial Results for Fiscal Year Ending March 31, 2025
November 5, 2024
The Company announces revisions of the consolidated full-year forecasts for the fiscal year ending March 31, 2025, disclosed on July 31, 2024. For the revisions, the Company took into account the classification of the Precision Medicine business as a discontinued operation, the recording of a gain from the share transfer of a subsidiary, and the recent trends in its financial results. The share transfer of a subsidiary in the Precision Medicine business and the classification of discontinued operation were announced today in the Company’s timely disclosure “Notice Regarding Change in a Consolidated Subsidiary (Transfer of Share) and Recording of Profit from Discontinued Operation due to the Share Transfer.”
Revision of the consolidated forecasts for the fiscal year ending March 31, 2025 (From April 1, 2024 to March 31, 2025)
(1) Revised forecasts
| Revenue | Business contribution profit*1 | Operating profit | Profit attributable to owners of the Company | |
|---|---|---|---|---|
| Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
| Forecasts previously announced (A) | 1,160,000 | 40,000 | 13,000 | 0 |
| Revised forecasts (B) | 1,134,000 | 42,000 | (14,000) | 0 |
| Increase/decrease（B－A） | (26,000) | 2,000 | (27,000) | － |
| Change (%) | (2.2) | 5.0 | － | － |
| (Reference) Consolidated financial results the fiscal year ended March 31, 2024 before retroactive adjustment*2 |
1,159,999 | 26,019 | 26,091 | 4,521 |
| (Reference) Consolidated financial results the fiscal year ended March 31, 2024 after retroactive adjustment*2 |
1,107,705 | 33,335 | 27,543 | 4,521 |
*1‘Business contribution profit’ is a profit index calculated by deducting cost of sales and selling, general and administrative expenses from revenue.
*2The Precision Medicine business is classified as a discontinued operation. Consequently, revenue, business contribution profit and operating profit in the forecasts for consolidated financial results for fiscal year ending March 31, 2025 are from continuing operations, and profits attributable to owners of the Company is the sum of continuing operations and discontinued operation. Further, the corresponding figures for consolidated financial results for fiscal year ended March 31, 2024, are respectively shown as “before” and “after” retrospective adjustment because of the classification for discontinued operation.
(2) Classification as a discontinued operation due to change in a consolidated subsidiary
As stated in "Notice Regarding Change in a Consolidated Subsidiary (Transfer of Share) and Recording of Profit from Discontinued Operation due to the Share Transfer," the Company entered into an agreement to transfer all share of Ambry Genetics Corporation to Tempus AI, Inc. As a result, the Precision Medicine business is classified as a discontinued operation, and excluded from consolidated revenue, business contribution profit and operating profit. On the other hand, profit attributable to owners of the Company and basic earnings per share are recorded as the sum of continuing and discontinued operations. The gain on the share transfer is expected to be approximately 41 billion yen and will be recorded in profit attributable to owners of the Company as the sum of continuing and discontinued operations.
Impact of discontinued operation on consolidated financial results
| Impact on consolidated financial results for fiscal year ending March 31, 2024 | (Reference) Consolidated financial results for fiscal year ended March 31, 2023*3 | |
|---|---|---|
| Revenue | (46,000) | 52,294 |
| Business contribution profit | ＋4,000 | (7,316) |
| Operating profit | ＋4,000 | (1,452) |
| Profit attributable to owners of the Company | ＋41,000 | － |
*3The Precision Medicine business is classified as a discontinued operation. Consequently, revenue, business contribution profit and operating profit are from continuing operations, and profits attributable to owners of the Company is the sum of continuing operations and discontinued operation.
(3) Reason for the revision
Revenue was revised downward by approximately 26 billion yen. Revenue for the Digital Workplace and Professional Print businesses is expected to exceed the previous full-year forecasts by approximately 30 billion yen, as they performed well due to strong demand and foreign exchange rates, among others, during the first half of fiscal year ending March 31, 2025. On the other hand, revenue for the Industry business was revised downward by approximately 10 billion yen, because of the impact from delays in capital expenditure by customers and the macro environment. In addition, as mentioned in the above (2), approximately 46 billion yen was excluded from revenue because of classification of the Precision Medicine business as a discontinued operation.
Business contribution profit was revised upward by approximately 2 billion yen. In response to the strong performance of the Digital Workplace and Professional Print businesses, business contribution profit for the businesses was revised upward by 2 billion yen. On the other hand, business contribution profit for the Industry business was revised downward by approximately 4 billion yen, due to the downward revision of its revenue. In addition, as mentioned in the above (2), classification of the Precision Medicine business as a discontinued operation improves business contribution profit by approximately 4 billion yen.
In the full-year forecasts for consolidated financial results for fiscal year ending March 31, 2025, disclosed on July 31, 2024, the Company expected to spend approximately 27 billion yen in total for the global structural reforms, and selection and concentration of businesses. At this time, the Company decided to reflect approximately 29 billion yen as one-time expenses for the financial results forecasts, in order to further accelerate addressing the strategic challenges outlined in the Medium-term Business Plan, including utilization of third-party equity for the remaining non-focused businesses and selection and concentration of businesses, and incorporate risks for impairment losses in some businesses. As a result, operating profit was revised downward by 27 billion yen. The Company states that the global structural reforms, announced at the start of current fiscal year, are progressing well ahead of plan.
There is no change in forecasts of profit attributable to owners of the Company and dividends, by reflecting factors including a gain from the share transfer mentioned above, operating loss and deterioration of financial balance due to recording of foreign exchange losses.
Note regarding the forecasts
The forecasts for the consolidated financial results are based on the assumptions that the Company believes are reasonable at the time of this announcement. It should be noted that actual results may differ from the forecasts due to various factors.