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Last updated : August 9, 2023
Given that operating profit has decreased by ¥28.7 billion year-over-year, will it be possible to achieve the fiscal year plan, which forecasts a ¥121.0 billion increase in operating profit year-over-year?
Although operating profit has, as of the first quarter, decreased by ¥28.7 billion year-over-year as a result of an increase in upfront costs due to the optimization of operations such as large-scale system renewal and the strengthening of security, primarily in the Regional Communications Business Segment, as well as an increase in electricity rates, our progress is generally proceeding in accordance with our expectations, and we will continue to aim to achieve the fiscal year plan.
Please discuss the status of the Integrated ICT Business Segment.
Although there has been a year-over-year decrease in profits in the smart life business as a result of growth investments, segment operating profit increased by ¥9.0 billion year-over-year due to increased revenues in the enterprise business and the optimization of sales processes in the consumer communications business, among other factors. Going forward, we will work on initiatives to increase revenues in IoT solutions with a focus on integrated solutions in the enterprise business, increase revenues in the payments field in the smart life business and improve our company-wide cost efficiencies, among other initiatives, in order to achieve the fiscal year plan.
Please discuss the status of the Global Solutions Business Segment.
Domestically, revenues have increased as a result of capturing demand for digitalization in all fields of public and social infrastructure, finance and enterprise. Overseas, operating profit decreased by ¥5.1 billion year-over-year as a result of, among other factors, growth investments at all companies and overseas business integration costs, despite an increase in sales in Europe and elsewhere and the effects of exchange rates. Our progress is generally proceeding in accordance with our expectations, and we are aiming to increase operating profit year-on-year.
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