Summary of the First Half of FY2015 and Management Strategy

Re-engineering business processes and improving profitability

  • Let me now move onto “Re-engineering business processes and improving profitability.”
  • Starting with the Japan business, operating margin declined by 40 basis points due to a one-off bad debt provision.
  • The operating margin of our international business improved by 160 basis points to 11.9% because of the planned reduction of investment in global functional infrastructure programs, such as IT and Finance, as well as strong operating leverage.
  • As a result, consolidated operating margin in the first half was up against the same period of last year despite the impact of the one-off charge in the Japan business.
  • Moving forward, we will continue make efforts to maintain and improve our industry leading operating margin with continuous cost control both in the Japan and international businesses, which will also be positively impacted in the future by the benefits of our global functional investment.
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