The results for the first quarter of the fiscal year ending March 2021 are as follows. Continuing from the previous term, we were unable to generate a profit, and we sincerely apologize for the concern and inconvenience caused to all our KIMOTO fans who have been supporting us.

We had intended to announce ourConsolidatedearnings forecast for the fiscal year ending March 2021 at the end of July, but we have not been able to disclose it because it is still difficult to reasonably calculate the business environment in Japan and overseas due to the impact of the global spread of the new coronavirus infection (COVID-19). We apologize again.ConsolidatedWe will promptly disclose our earnings forecasts as soon as we are able to make reasonable calculations.

Although the situation remains very unstable due to the ongoing COVID-19 pandemic, we consider this a time to prepare for the near future and beyond, and we will continue to challenge ourselves to acquire new technologies in the film business and data kitchen business. In terms of workflow reform, we will proceed with innovation challenges worldwide in preparation for the planned changes to the next-generation core system.

Furthermore, as part of the workflow reform we have been implementing over the past 10 years, we will be closing satellite offices in Osaka and Nagoya in August, and Fukuoka and Sapporo in September, to move on to the next step. Currently, we are able to carry out operations smoothly without interruption through telework and web meetings with clients. However, we aim to further drive reform and take on new approaches to work. During this prolonged fight against the COVID-19 pandemic, we will strive to create an environment that ensures greater safety and security for our employees, business partners, shareholders, and their families.

We apologize for the repeated concerns we have caused everyone, but the entire KIMOTO Group will work together to recover our performance. We kindly ask for your continued support and encouragement.