Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 (Japan GAAP) (Consolidated)

Overview of Business Performance

During the cumulative consolidated period of the third quarter of the fiscal year ending March 2026, net sales were JPY 119,866 million (7.2% YoY increase), operating income was JPY 6,830 million (20.4% YoY increase), ordinary income was JPY 7,318 million (18.2% YoY increase), and quarterly net income attributable to owners of parent was JPY 5,143 million (16.7% YoY increase), marking record highs in both sales and profits. The main drivers were the consolidation of subsidiaries through M&A and increased sales and profits from the Silver Business and Bedding & Linen Supply Business due to strengthened sales activities.

Performance by Segment

Health Life Services recorded net sales of JPY 61,311 million (6.9% YoY increase) and operating income of JPY 6,249 million (26.8% YoY increase), showing strong results. Dispensing Services posted net sales of JPY 47,181 million (8.8% YoY increase) and operating income of JPY 1,671 million (nearly flat), with higher prescription unit prices and subsidiary contributions offsetting the impact of drug price revisions and increased costs, resulting in stable profits. Environmental Services achieved net sales of JPY 11,248 million (2.8% YoY increase) and operating income of JPY 1,005 million (1.8% YoY increase), reflecting increased sales and profits.

Financial Position and Dividends

Total assets increased by JPY 3,427 million from the previous fiscal year-end to JPY 117,716 million, liabilities rose by JPY 5,780 million to JPY 34,227 million, and net assets decreased by JPY 2,352 million to JPY 83,488 million. The equity ratio stood at 70.3%. The number of outstanding shares was 33,092,146, reduced through share buyback and retirement. The annual dividend forecast is JPY 68.00 (including a JPY 5 commemorative dividend for the 70th anniversary), with no revisions from the previous forecast.

Outlook

The full-year consolidated earnings forecast for the fiscal year ending March 2026 projects net sales of JPY 157,976 million (5.6% increase from the previous fiscal year), operating income of JPY 8,216 million (0.3% increase), ordinary income of JPY 8,590 million (2.7% decrease), and net income attributable to owners of parent of JPY 5,499 million (16.3% increase), with no revisions from the previous forecast. Efforts to improve profitability and create new value will continue based on the medium-term management plan.